How to Fundraise for a Stronger Nonprofit

1. How to Fundraise for a Stronger Nonprofit ©Social Velocity

2. “Nonprofits that build robust infrastructure (like sturdy IT and financial systems, fundraising processes, and other essential overhead) are more likely to succeed than those that do not.” - Ann Goggins Gregory & Don Howard, “The Nonprofit Starvation Cycle”

3. The Starvation Cycle Funders Demand More for Less Nonprofit Skimps on Staff, Systems Nonprofit Is Less Effective Fewer People Served, Changed

7. Overhead is NOT a Dirty Word

8. Overhead is NOT a Dirty Word % of Dollars Spent on Programs Focuses on inputs, rather than impact

9. Overhead is NOT a Dirty Word % of Dollars Spent on Programs Focuses on inputs, rather than impact Compares apples to oranges

10. Overhead is NOT a Dirty Word % of Dollars Spent on Programs Focuses on inputs, rather than impact Compares apples to oranges Forces nonprofits to “hide” infrastructure costs Distinction is meaningless and destructive

11. Then... Overhead expense ratio 20%+ is unacceptable

12. Then... ...And Now Overhead expense ratio 20%+ is unacceptable Financial health Financial ratings tables Fundraising efficiency Working capital ratio Revenue & expense growth Accountability & transparency Independent board Audited financials Policies/procedures Information sharing Results reporting Align mission and $ Results logic & measures Validators Client voice Evaluations

13. Then... ...And Now Overhead expense ratio 20%+ is unacceptable Financial health Financial ratings tables Fundraising efficiency Working capital ratio Revenue & expense growth Accountability & transparency Independent board Audited financials Policies/procedures Information sharing Results reporting Align mission and $ Results logic & measures Validators Client voice Evaluations

14. Money Core Competencies Mission Connect Mission & Money

15. Financing is... A long-term strategy for bringing enough money in the door to achieve your mission.

16. Financing is... A long-term strategy for bringing enough money in the door to achieve your mission. How much can we accomplish with what we can raise?

17. Financing is... A long-term strategy for bringing enough money in the door to achieve your mission. How much should we raise to accomplish our goals? How much can we accomplish with what we can raise?

18. Board, Staff, Donors Money Strategy Infrastructure Sustainability Funding Sources Programs Message Fundraising Vs. Financing Worn out Excited, engaged Annual, programs Long-term, all costs Inadequate Fully funded Weak Few Strong GrowingFlat or declining Diverse, Robust Community changeNeed

26. Revenue Ongoing Supports day-to-day BUYS services Beds for a homeless shelter A Money Distinction

27. Revenue Ongoing Supports day-to-day BUYS services Beds for a homeless shelter Vs. Capital One time Supports BUILDS organization Technology, evaluation, development staff A Money Distinction

28. Capacity Capital BUILDS a Nonprofit Technology Systems Planning Development staff Training Leadership development

29. Nonprofit lacks infrastructure Capacity capital strengthens the nonprofit Nonprofit achieves more outcomes, impact

32. But raising Capacity Capital requires your nonprofit to have a Theory of Change

33. Community Resources Nonprofit Community change The Theory of Change

36. Inputs ($, kids, tutors, staff) Activities (provide literacy tutors to at- risk kids) Outputs (# kids, # hours) Outcomes (better reading, better scores) Impact (stronger schools, educated citizens, economic parity) The Theory of Change

37. Inputs ($, kids, tutors, staff) Activities (provide literacy tutors to at- risk kids) Outputs (# kids, # hours) Outcomes (better reading, better scores) Impact (stronger schools, educated citizens, economic parity) The Theory of Change Nonprofits usually stop here

38. Inputs ($, kids, tutors, staff) Activities (provide literacy tutors to at- risk kids) Outputs (# kids, # hours) Outcomes (better reading, better scores) Impact (stronger schools, educated citizens, economic parity) The Theory of Change Nonprofits usually stop here But this is where it gets really compelling

39. Young Readers brings at-risk students to grade level in reading, resulting in: More succeeding students Better schools A more educated workforce A more equitable economy and community

40. Begging “With your support, we can provide more tutors for children.”

41. Investing With your support, children… Learn to read at grade level by 3rd grade

42. Investing With your support, children… Learn to read at grade level by 3rd grade Which leads them to… Do better in school Graduate from school Succeed in life and work

43. Investing With your support, children… Learn to read at grade level by 3rd grade Which leads them to… Do better in school Graduate from school Succeed in life and work As our partner, you help create… More contributing citizens Lower social costs A stronger, healthier community

44. $350K in Capacity Capital New donor database Online giving software Staff Training Market research Marketing materials Case Study

45. $350K in Capacity Capital New donor database Online giving software Staff Training Market research Marketing materials Results Annual revenue up $1.6 M (40%) Number of donors up 36% to 19K+ Case Study

46. 1. Create a capacity building plan 4 Steps to Raising Capacity Capital

47. 1. Create a capacity building plan 2. Develop a capital goal 4 Steps to Raising Capacity Capital

48. 1. Create a capacity building plan 2. Develop a capital goal 3. Create a pitch 4 Steps to Raising Capacity Capital

49. 1. Create a capacity building plan 2. Develop a capital goal 3. Create a pitch 4. Find prospects 4 Steps to Raising Capacity Capital

50. 1. Create a Plan

51. 1. Create a Plan What must change in your organization? Goals

52. 1. Create a Plan What must change in your organization? Goals Over what timeframe? Timeline

53. 1. Create a Plan What must change in your organization? Goals Over what timeframe? Timeline What are the steps to get there? Tactics

54. 2. Develop a Capital Goal

55. 2. Develop a Capital Goal What must change? Better technology and systems Long-term planning Development staff Leadership coaching Board training

56. 2. Develop a Capital Goal What must change? Better technology and systems Long-term planning Development staff Leadership coaching Board training What will it cost?

57. # of Gifts Gift Amount Total $s # of Prospects Lead Gift 1 $15,000 $15,000 4 3 $10,000 $30,000 12 5 $5,000 $25,000 20 8 $2,500 $20,000 24 10 $1,000 $10,000 20 TOTAL 27 $100,000 80 $100K Capital Goal

64. 3. Create a Pitch

65. 3. Create a Pitch Plan What is your plan for building capacity?

66. 3. Create a Pitch Plan What is your plan for building capacity? Budget What do you need and what will it cost?

67. 3. Create a Pitch Plan What is your plan for building capacity? Budget What do you need and what will it cost? Projected ROI What will the results be? More productivity? More revenue? More outcomes?

68. 4. Find Prospects

69. 4. Find Prospects 3 Criteria

70. 4. Find Prospects 3 Criteria Capacity: to give at the needed level

71. 4. Find Prospects 3 Criteria Capacity: to give at the needed level Connection: to a peer at the nonprofit

72. 4. Find Prospects 3 Criteria Capacity: to give at the needed level Connection: to a peer at the nonprofit Concern: for the mission

73. 4. Find Prospects 3 Criteria Capacity: to give at the needed level Connection: to a peer at the nonprofit Concern: for the mission Start Inside & Move Out Board of Directors with capacity Major Donors Other “Friends” (volunteers, advisors) Foundations/individuals

74. Learn More… Launch a Capacity Capital Campaign Step-by-Step Guide

75. Learn More… Launch a Capacity Capital Campaign Step-by-Step Guide Download Here

How to Fundraise for a Stronger Nonprofit

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