1. Development
An Introduction
Shane D. Hudson

2. OVERVIEW

3. What’s It Called?
• Development
• Fundraising
• Advancement
• It’s all raising $

4. Question?
• Have you ever been approached by an
arts organization to make a donation?
• What tactics were used?

5. Development for the Arts
• More important than ever
• Many organizations adding positions
– Usually only one person
– Potentially higher salary
– Potentially unrealistic expectations
– CDO’s becoming popular
• 40% - 60% of operating budget
• Unearned income

6. Marketing and Development

7. Marketing and PR
• Pay attention to your message and your
reputation/brand
• Communicate your goals internally as well
as externally
• Tell your story
• Focus on the why not the what
• Enlist the media in your efforts

8. Where Does The $ Come From?

9. INDIVIDUALS
• Individual
– Gifts
– Bequests
– Events

10. CORPORATIONS
• Corporate
– Grants/Gifts
– Sponsorships

11. FOUNDATIONS
• Foundations
– Family
– Community
– Private
– Public

12. GOVERNMENT
• Government
– Local
– State
– National

13. Ongoing Support
• The Annual Fund
– Annual (or more frequent) appeals to a core
group of constituents.
– Such funds are usually unrestricted (available
for any use)
– May represent a large percentage of your
annual income.

14. Realign The Annual Fund
• Old – Silos
– Annual Giving at the low end
– Major Gifts
– Capital Campaigns
– Planned Giving (Bequests)
• New – Hub
– Gifts build on one another
– Annual Gift is the Hub
• Help Engage Donor

15. Ongoing Support
• Multi-Year Grant
– A grant-giving organization such as a
foundation may provide restricted funding for a
particular project or program
– Or, unrestricted funding to help cover the
overhead costs of running the organization

16. Ongoing Support
• Endowment Income
– Many large nonprofits, particularly higher
education institutions and healthcare
organizations build up large endowment funds
– These fund produce interest that is used to
support the organization.

17. Episodic Funding
• Foundation or Corporate grants
• Special events
• Bequest
• Government Support
– These funds may be restricted to one purpose
or devoted to unrestricted use by the
nonprofit.

18. The Capital Campaign
• A capital campaign is a multi-year
fundraising campaign with a particular
goal such as:
– Funding a new building
– Raising funds for a particular project, such
as cancer research
– Increasing a particular asset such as an
endowment

19. Planned Giving
• Most nonprofits now have planned giving
programs which enable a donor to confer
a gift at the time of his/her death
• Or to give a large gift immediately while
receiving income during the donor's life.

20. TRENDS

21. How Is It Given?
• $303.75 Billion in 2009
– 75% Living Individuals
– 8% Bequests
– 13% Foundations
– 4% Corporations
– 88% From All Individuals (living, bequests,
family foundations)

22. Trends – Nonprofits
• Long Tradition in US
• Indispensable role addressing social
issues
• 1.5 Million in US
• 5% of Gross Domestic Product
• Giving Exceeds $300 Billion Annually

23. Trends – In NC
• 10,000 Nonprofits
• 400,000 Jobs (10% of workforce)
• $13 Billion in Wages
• Most Are Small (Only 20% w/budgets of
$100,000+)

24. Where Is It Going?
• 33% to Religion
• 13% to Education
• 10% to Foundations
• 9% to Human Services
• 7% to Health
• 8% to Public-Society Benefit
• 4% to Arts and Culture
• 3% to International Aid
• 2% to Environment/Animals
• 1% to Individuals

28. The Association of Fundraising
Professionals (AFP) reported a 10 to
20 percent drop in charitable
donations.
Some studies put the figure higher at
30 percent since the start of the
economic recession.

29. Impact of the Recession
• Overworked, Underpaid, Underappreciated
• Lack of Resources
• Often Lack Training
• Expected to do More with Less
• Greater Pressure to Raise More $
• Rising Demand to:
– Be more effective, efficient, transparent,
accountable
– Show and measure results/impact

30. Priorities for Arts
• Multi-Year Giving
• General Overhead
• Endowment Funding
• Small Grants
• Challenge Grants

31. DONOR RIGHTS

32. Donor Bill of Rights
"Philanthropy is based on voluntary action for
the common good. It is a tradition of giving and
sharing that is primary to the quality of life. To
assure that philanthropy merits the respect and
trust of the general public, and that donors and
prospective donors can have full confidence in
the not-for-profit organizations and causes that
they are asked to support, we declare that all
donors have these rights:

33. Donor Bill of Rights
• I. To be informed of the organization's
mission, of the way the organization
intends to use donated resources, and of
its capacity to use donations effectively for
their intended purposes.

34. Donor Bill of Rights
• II. To be informed of the identity of those
serving on the organization's governing
board, and to expect the board to exercise
prudent judgment in its stewardship
responsibilities.

35. Donor Bill of Rights
• III. To have access to the organization's
most recent financial statements.

36. Donor Bill of Rights
• IV. To be assured their gifts will be used
for the purposes for which they were
given.

37. Donor Bill of Rights
• V. To receive appropriate
acknowledgment and recognition.

38. Donor Bill of Rights
• VI. To be assured that information about
their donation is handled with respect and
with confidentiality to the extent provided
by law.

39. Donor Bill of Rights
• VII. To expect that all relationships with
individuals representing organizations of
interest to the donor will be professional in
nature.

40. Donor Bill of Rights
• VIII. To be informed whether those
seeking donations are volunteers,
employees of the organization or hired
solicitors.

41. Donor Bill of Rights
• IX. To have the opportunity for their
names to be deleted from mailing lists that
an organization may intend to share.

42. Donor Bill of Rights
• X. To feel free to ask questions when
making a donation and to receive prompt,
truthful and forthright answers.

43. MAKE YOUR CASE FOR
SUPPORT

44. Case Statement
1. Identify the important problems or needs
that the organization intends to
address with the help of the
contributions
2. Demonstrate the organization’s ability to
address these needs.
3. Match the proposed areas of
organizational activity with the funder’s
own philanthropic interests.

45. Case Statements
• Describe the organization’s mission in
terms of human and social issues –
– Organization’s objectives
– Strategies
– Staff, budget and other needs to carry out your
plan
– Who will ultimately benefit
– Case for support – Why should someone
support you
– Stresses strengthen – emphasize the positive

46. Case Statements
• What is distinctive about your
organization?
• What is your primary reason for being?
• What are your core values?
• What are your key words?
What is your passion?

47. Writing for Fundraising
• In describing your work, be clear, not
clever.
– We produce the Edible Arts Festival of Food
and Art each June
– Eat Your Art Out

48. Making Things Happen
• ______ was created because…
• ______ exists now because…
• ______ will flourish in the future
because…

49. Think Like The Funder
• On Grant Applications, answer the
questions asked… All parts!
– Describe your board of directors and their key
responsibilities. Describe your rotation policy
and how new members are recruited and
trained.

50. Don’t Be Glib
• Don’t make meaningless Statements or
assumptions
– “As everyone knows, there are many types of
art.”
– Like all non-profits organizations we want to
do more but require funding to add programs.

51. Use Achievements
• Describe your current status in terms of
achievements.
– Think like a winner
– Sing your praises
– Describe your success

52. Write Smart
• Let the writing ripen
• Find an ignorant reader
• Edit, Edit, Edit!
• Remember that writing alone won’t get the
funding… you and your organization will.

53. THE PLAN

54. Fundraising Plan
• Organizational Profile and Audit
– Mission, Vision, and Values
– Programs of activity
– Current fundraising activities
• Board and staff resources?
• Case for support?
• Financial condition?
• Success to date?

55. Fundraising Plan
• Needs Assessment
– Establish need levels for programs
– Giving potential of current donor base
– Potential for attracting new donors
– Capabilities for carrying out plan

56. Fundraising Plan
• Plan Development
– Establish overall and specific objectives
– Update or write “Case for Support”
– Design campaign strategies per program
needs
– Resources
• Data gathering system
• People – training system and support staff
• Budget
• Timeline

57. Fundraising Plan
• Implementation
– Individual giving programs
• Annual gifts
• Special events (galas, benefits, auctions)
• Major gifts
• Planned giving
– Corporate giving program
– Foundation giving programs
– Grants – Federal, state, local

58. Fundraising Plan
• Processing and Evaluation
– Monitor giving
– Acknowledgements
– Adjust objectives and strategies as needed
– Assess outcomes and adjust as required
– Adjust data gathering system

59. Next Class
• In depth types of funders
• Specifics about individual giving
• Fundraising plan basics