Is your fundraising strategic or ad-hoc?

Is your Fundraising
Strategic or Ad-hoc?
Presented by
Wayne McKenzie CFRE FFINZ
Senior Consultant
Global Philanthropic, NZ

If you don’t
know where
you’re coming
from,
you won’t
know where
you’re going.
Ancient proverb

If you aim at nothing …
… you may hit anything
or nothing

Do you just
pick the fruit,
or do you
tend the
orchard?

A. Effective and Efficient?
B. How to review and develop your program
C. Three important questions
D. Six essentials for success
IS YOUR FUNDRAISING…
STRATEGIC OR AD-HOC?

1. What the CEO wants
2. What the CFO wants
- More dollars in
- Lower costs

Which is better?
A. Fundraising that costs 5%
B. Fundraising that costs 35%
0
20000
40000
60000
80000
100000
5
35
Spend Net
35% $35,000 $100,000 $65,000
% Spend Raise Net
5% $1,000 $20,000 $19,000

1. What you want… and need…
• A fundraising plan arising from the
organisation strategic plan
• Fundraising that’s strategic not reactive (to
Board, CEO, staff requests, ad hoc projects
and ideas…)
2. What drives your fundraising plan?
3. Is your Case for Support derived from your
mission or project driven?

1. Fundraising assets
2. Fundraising results
3. Fundraising SWOT
4. Fundraising Audit
B. Start with a Review

1. Fundraising assets – list them
• What do you have in your favour?
• Experience
• Traditions
• Leadership
• Board support
• Major donors
• Volunteers
• Fg Programs
• Service delivery
• …

0
20
40
60
80
100
120
140
160
180
yr1 yr2 yr3 Yr4 yr5
AAA
BBB
CCC
2. Fundraising results – analyse them
What can you deduct from the results?

2. Fundraising results – analyse them
Are projections realistic & attainable?
0
100
200
300
400
500
600
700
yr1 yr2 yr3 Yr4 yr5 yr6 yr7

3. Fundraising SWOT
• Strengths
• Weaknesses
• Opportunities
• Threats

4. Fundraising Audit – self assessment tool
Audit
Modules
Governance
Environment
External
Environment
Fundraising
Track
Record
Constituency
Analysis
Program
Maturity
Donor
Perspective
Fundraising
Culture
Resource
Availability
Based on commonly
accepted
competencies
Each of eight modules
contains 10 best practice
statements
Each statement suggests
a theory, concept,
strategy or best practice
important to overall
success of a
comprehensive fund
development program

• Better understanding of comprehensive, integrated fund
development
• Compare your program with best practice
• Create common goals and strategic direction
• Build team work
• Establish priorities for improvement
• Identify gaps, issues, challenges that should be addressed
Purpose and benefits you can expect
FUNDRAISING AUDIT

URGENT –
significant
improvement
required
IMPORTANT –
look for
incremental
improvement
NOT VALUED &
NOT DONE –
no need to be
overly concerned
GETS DONE BUT
NOT SURE OF IT’S
VALUE –
discussion required
FUNDRAISING AUDIT

An effective fund development program can only
be created within a supportive and enabling
organisation.
The leadership that the Board or Council
demonstrates is critical to both short-term success
and long-term evolution towards a mature,
balanced and successful fund development
program.
AUDIT MODULE 1
Governance Environment

Questions include…
• Senior Fundraiser participates in strategic planning
of organisation
• Board members are donors
• Board sets fundraising policies
• …
AUDIT MODULE 1

GOVERNANCE ENVIRONMENT - SUMMARY
=
Individuals
=
Average

Findings
• Should we? Very high hopes and expectations
• Do we? Much lower with wide range of responses
Recommendations
• Involve fundraising manager in strategic planning
• Monitor fundraising performance
• Participate in fundraising process
• Establish fundraising policies
AUDIT MODULE 1

1. Why?
2. Who?
3. How?
C. Three important questions
• do you need the money?
• will you get it from?
• will you go about that?

• To fill the gap
between income
and expenditure
Fees
Investments
Govt
Fundraising
WHY?
ANSWER A

• To do fantastic
work to meet
human need
WHY?
ANSWER B

1. Urgent compelling case for support
2. Clear justification of needs
3. Sufficient donor & volunteer prospects
4. Effective and inspirational leaders
5. Adequate infrastructure & resources
6. Strategy for implementation
D. Six Essentials for Success

Your
Case
for
Support
A. What do you need the money
for?
B. What specific work will you do
to fulfil your vision/mission?
C. What difference will you make?
D. Is this the best way?
E. Are others doing it better?

Internal Statement
• Mission
• Goals
• Objectives
• Programs & Services
• Governance
• Staffing
• Facilities or mechanics of service delivery
• Finances
• Strategic planning and program evaluation
• History

For a specific campaign or project
• The Problem or Need
• The Vision
• The Solution
• The Cost
• The Ask

It’s not about you
It’s about what you do
& the people you help
... and …
it’s about your donors
helping to make the world a
better place.

2. Clear justification of needs
• important
• urgent
• relevant

“We should just
ask anybody, or
everybody”

Review - How many donors not just dollars
• Increasing or decreasing? What can you do
about that?
• Who supports you now? How acquired?
• Who could support you? How to identify and
reach them?

How do you find new prospects currently?
 … … …
 … … …
 … … …
 … … …
 … … …

Finding new Prospects
Board
Major Donors
Management
Spec staff
Constituency
Circles
Start with
those who are
closest, most
interested &
committed?

Finding new Prospects
Research based prospecting
a. Surveys
b. Focus groups
c. Who do you know/relationships: Board, staff, donors
d. Exercise: Organisation - what/why/who?
e. Data wealth screening (esp for major gift prospects)
f. New prospect research, based on criteria
g. Campaign Feasibility or Planning Study interviews

Research equips you for success
Enables you to:
A. Develop a plan
B. Establish priorities
C. Determine where best to invest time
D. Determine the best people to ask
E. The best approach for asking
F. How much to ask
G. Create and nurture relationships

• Imagine you are seated with a potential
donor and about to ask for $50,000 for the
new …
• You panic that you don’t have enough
information.
• What do you wish you knew?
Research: what do you wish you knew

• Linkage – to the organisation
• Interest – in the cause
• Ability – to give
• History of giving
• Family background/interests/connections
• What questions s/he might have
• …
Research: what do you wish you knew

The Ideal Prospect
Linkage
Interest
Ability
History

Identify,
Research
& Qualify
Inform &
Involve
Test &
Establish
Project
Interest
Ask &
Confirm
Thank, Do
& Report
Progress
Research:
When do you use the info?

4. Effective and inspirational leaders

5. Adequate infrastructure & resources:
• staff
• funds
• facilities
• technology

6. Strategy for implementation
• Fundraising mix
• ROI
• Measurement indicators
• Policies
• Data & info management

Funding Mix – income streams
Vulnerable Less
Vulnerable
FUNDRAISING MIX

How many legs does a stool need?
FUNDRAISING MIX

How many legs does your fundraising have?
Annual Major Gifts
(& Campaigns)
BequestsProgram
Purpose
Source
Ongoing
programs
Projects,
Buildings,
endowment
Annual,
capital,
endowment
Current
income
Income or
Assets
Estate

Exercise
Place these in ROI order
A. Events
B. Bequests
C. Lotteries/Art Unions
D. Direct Mail
E. Major Gifts
F. Company Sponsorships
G. Campaigns
6. Strategy: Return on Investment

Exercise
How would you allocate Fg staff duties
across these roles? Draw a pie chart and
show %.
A. Bequest promotion
B. Event planning and support
C. Direct Mail Appeals
D. Major Gift cultivation and solicitation
E. Build & maintaining the database
6. Strategy: Return on Investment

Key Indicators for measurement and reporting
1. Performance against target
2. Cash banked
3. Funds raised (new commitments this term)
4. Outstanding pledges by year (future income)
5. Contact reports
6. Bequest intentions
7. Major donors/prospects managed
8. Bequest prospects managed
6. Strategy: Measurement

• Combination of current, future and lagging
indicators
• Combination of results and activities
• If in campaign, plot against timeline
• For Annual Fund/Direct Mail report on
o Total $ raised (gross & net)
o No. of donors
o % donors renewed
o Median gift
6. Strategy: Measurement

• Gift acceptance
• Naming opportunities
• Donor acknowledgement and recognition
• Database entry and data management
• Contact reporting
• Appeal/Project selection and info required
• Bequest policy/procedure
• Sponsorship policy/procedure
6. Strategy: Policies & Procedures

Questions?
YOUR FUNDRAISING …
STRATEGIC OR AD-HOC?

Wayne McKenzie FFINZ CFRE
Senior Consultant
GLOBAL PHILANTHROPIC
Ph +64 274 929 636
E w.m@globalphilanthropic.com
www.globalphilanthropic.com

Is your fundraising strategic or ad-hoc?

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Is your fundraising strategic or ad-hoc?