Resource Development Update

David P. WhiteheadChief Development Officer

February 8, 2007

2

2006 Goals for SOI Resource Development

• Raise $53.7 million (minus government and non-contributed sources)

• U.S. Collaboration─ Passion Model─ Major Gifts & Planned Giving Pilot─ LETR

• Capacity to raise support for International regions

• 2007 World Summer Games

• Constituent Relationship Management System

3

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

2005 Actuals 2006 Actuals (unaudited) 2007 Budget

Events

Bequests & Planned Gifts

Private Foundations & Major Gifts

Corporate Philanthropy &Associations

Corporate Partners

Donor Development

$53 million(8.8% increase)

$57.8 million(9.1% increase)

SOI Contributed Growth Trends(excludes Government & Non-Contributed Sources)

$48.6 million

4

Growth in Corporate MarketingCorporate Foundations and Associations

0 2 4 6 8 10 12 14 16 18

(In Millions)

2004

2005

2006

2007

An

nu

al C

ash

Flo

w

Mattel

Coca-Cola

Midwest Trophy

Bank of America

Bank One

CARQUEST

Disney

P&G

M&M - Mars

Corporate Express

RMS Communication

Lions Club

Other/TBD

$8 million in 2007 commitments already raised

5

Corporate Support to U.S. Programs

• Bank of America (Team USA)

• Starwood (New York, US promotion)

• Mattel (US grants for Team Mattel)

• Coca-Cola (2009 and US marketing effort)

• Proctor & Gamble

• Need More!

6

2006 Year-End Strategies

• Building the Pipeline─ Tim Shriver’s Annual Appeal ($50,000)─ Clinical Advisors Appeal (not effective)─ Board appeal (86%)

• Lynch Foundation Challenge─ 1:1, current and new donors

• John and Mary Manley Challenge ─ 1:1, $1,000 from international donors─ 1:2, $5,000 from global donors─ Added staff to international regions

7

Law Enforcement Torch Run

• $26 million (up from $21 million in 2005)

• Conference in Buffalo, over 1,000 participants

• Leadership, Mike Teem & Dennis Alldridge

• Staff, Cheri DeQuattro & Anna Berke

• Momentum!

SOI/Global Regions

SOI-CDMP

Programs

Direct Response

Cultivated Donors/Events

Major Gifts / Governments

Principal/Global Corporations

Local Regional Sponsorships/Donations/Grants

Relationship Managers

TransformationalGifts

Become Donor-Centric

• Donors aren’t “owned” by Programs or SOI

• Donors are “managed” by relationship managers on behalf of the movement

9

Fundraising Process

Identification

Cultivation

Solicitation

Acknowledgement

Stewardship

Renewal

10

Elements of a Collaborative Fundraising Model

Development Processes

Development Staff• Skills• Training• Roles &

Responsibilities

Motivators• Revenue Sharing • Other incentives• Recognition• Donor Management Principles

Management Systems• Donor Information• Business Rules• Revenue Sharing• Metrics

Tools & Technology• CRM database• Contact & Event

management applications

11

Focus for 2007

• Raise $57.8 million (distributing $19.8 million)• U.S. Collaboration

─ Building on the Passion Model (training)─ Major Gifts/Planned Giving Pilot Project (June launch)─ Cause Marketing Strategy (strategy development)

• Support from International and Global Donors, $300,000 (Manley challenge)

• 2007 World Summer Games Legacy, $6 million• 2009 World Winter Games, $6 million• LETR sponsorships, $400,000

12

Donor Development

(CDMP), $37.8

Events, $0.4

Major Gifts/Private Foundations, $6.2

Corporate Philanthropy, $3.7

Corporate Partners, $9.2

International Support, $0.5

Government, $6.6

Interest/Royalties/ Other, $5.4

Planned Gifts, $0.5

2007 Fundraising Targets ( in $ Millions)

Total Contributed = $57.8MM

Total Revenue = $70.3MM

2006 2007

Q1

Note: all three projects had significant activities in Q1 and Q2 of 2006

Q2

Rev

enu

e S

har

ing

Maj

or

Gif

ts

Pil

ot

Pas

sio

n M

od

el

Design Collaborative

Model

Implement

Review early pilot

results

Score Passion Model

Define next steps

Incorporate pilot learning

Review early pilot

results

Recommendation to SOI & US

Leadership

Integrated Timeline

* Includes CRM, Major Gifts, Planned Giving

Q3

Launch & Monitor Pilot

U.S. Collaborative Initiatives Timeline

Q3 Q4

Refine Model

Pilot site selection

Q4 Q1 Q2 Q3

CultivationTraining

2008

CRM Phase II

....

....

....

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Major Gifts Training for U.S. Programs

• The Dynamics of Major Gift Fundraising• What Motivates Major Gift Donors and How Do We

Identify Them• Developing and Implementing Cultivation Plans

Through Moves Management• Making Cultivation Calls and How To Secure The

Information You Need Through Active Listening• Strategizing the "Ask" • Tips For Making The "Ask" and Responding

To Objections• Scripting the "Ask" and Making The Close

15

Social Capital Partnerships

• Developed Consulting Relationship with Social Capital Partnerships

─ Update global corporate marketing strategy Evaluate current corporate marketing infrastructure Conduct relevant corporate research

─ Create new products New messaging, branding strategy Develop corporate strategies at global, regional and

national levels

16

U.S. Cause Marketing Strategy

• Corporate Development and Communication Teams collaboration

• Working with existing global partners to maximize activation opportunities

• U.S. Cause-Related Marketing Strategy Session

17

$90,000,000 , 30%

$195,000,000 , 65%

$15,000,000 , 5%

SOI

US Programs

International Programs

What does $300 million look like?

18

Natural Partners(many)

Program orFund

Recipient(many)

Relationship Manager

(1)

Donor

Roles and responsibilities

Roles:• Case for Support• Writes proposal• Accountable for

the gift• Stewardship of

the gift• Program is the

center

Roles:• Influence• Determining

donor’s interest• Communicating

with donor• Asks for the gift• Input on strategy

Roles:• Linking donor interest & funding

opportunity• Defining/executing strategy• Accountable to the donor • Stewardship of the donor• Donor is the center

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Questions

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70.00

American Red Cross Nature Conservancy American Cancer SOI

Capacity Rating

Efficieny Rating

Charity Navigator

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10.00

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70.00

US Program #1 US Program #2 US Program #3 US Program #4 SOI

Capacity Rating

Efficieny Rating

Charity Navigator

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Charity Navigator

• Efficiency─ Administrative Expenses, 15%─ Fundraising Expenses, 10%─ Fundraising Efficiency, 10-15 cents/$1

• Capacity─ Revenue Growth, (3.7%-6.3%)─ Program Expense Growth, (average 3-5 years)─ Working capital ratio (50% of annual needs)

Some watchdogs frown on a high ratio