Fall 2008

From The President

Fifteen years ago, about 400,000 charities were raising money in the U.S. Today that number is more than 1 million. How many of them do you think hold fundraising auctions or golf tournaments? That’s why the focus of our lead article is major gift fundraising. It’s the number-one way for a nonprofit to succeed in raising money.

Many thanks to those of you who shared your feedback on our inaugural issue of “Raising Money.” We were encouraged by your positive comments and will strive to keep providing content that you can apply to your nonprofit, like Wendy’s article below on creating a development plan. Thanks for reading and let us know if we can serve you in any way. 

W. Keith Curtis, President

Don't Let the Big Ones Get Away

By Keith Curtis, President

A June article about philanthropy on Slate.com, a website published by Newsweek, reported, “The most effective fundraising efforts aren’t parties but efforts in which people appeal to their friends and colleagues face-to-face.”

If the idea of asking a colleague for a major gift sends you screaming from the room, keep in mind that 88 percent of all U.S. giving comes from individuals, and 10 percent of those people give 51 percent of the individual dollars. The point is that people will give, if they’ve been educated about your cause and are asked properly.

Second, asking them properly takes planning. Major gift fundraising is a targeted process that requires building and cultivating relationships. Not only can the process take months or even years, each prospect requires a plan and a specific ask for a specific purpose. With appropriate planning and cultivation, by the time you’re ready to ask, the donor is ready to be asked.

Third, one word: people. A maxim that’s often bandied about in fundraising is that people give to people. In reality, though, people give money to great causes and appointments to the right people. So the questions become, are the right people on your board? And are they willing to ask their friends and colleagues for major gifts?

When in doubt, just remember the five I’s of major gift fundraising:

* Identify: Target the most logical major-gift prospects
* Inform: Educate them about your organization
* Interest: Show them the ways you help people
* Involve: Get them excited about your results
* Invite: Ask them to give a specific amount

There’s no question that major gifts will go to great causes. Why not yours?

How to Create a Development Plan

By Wendy McGrady, Vice President

A development plan serves as a road map for your board and staff to guide them in fundraising over a two- to three-year period. It documents your goals and outlines the tactics and action steps necessary to achieve them.

First, involve the right staff and board members, especially members of your development or executive committee who are well versed in your organization’s activities. They should be capable of evaluating your current programs, identifying your fundraising strengths and weaknesses, and creating fundraising goals. This is a wonderful opportunity to cultivate, educate, and further involve board members.

Next, review or draft your Case Statement, which should be in line with your organization’s strategic plan. Identify what you’re raising money for: programs, operating funds, a building, endowment, or other needs. Then, determine your fundraising goals and how you intend to reach them (i.e., annual fund, capital campaign, major gifts, planned giving). Devising a gift table to accompany your plan will show how many gifts are needed and from whom.

Now you’re ready to draft the actual plan. Your goals and objectives should be clearly defined, specific, and measurable (i.e., raise $200,000 to start new program by FY ‘10). Your plan should include details about leadership, timeframe, and budget for your efforts. Then seek your board’s approval and you’re off!

Development Plan Tips

* Determine who will be involved in creating the plan
* Create timeline for planning process
* Conduct analysis of current fundraising activities
* Review organizational goals
* Obtain consensus on Case Statement

Sugar Plum: A Community Vision

By Nancy Chapman, Marketing Consultant

After opening in 1987 to train and employ people with disabilities, by 1999 Sugar Plum Bakery had outgrown its small, 60-year-old structure. It had no room to expand programs and services. Board members first tried to raise money for a new building without a strategically planned campaign, and the results were discouraging. So they brought in The Curtis Group to conduct a feasibility study.

The study indicated that the funds could be raised. When the Capital Campaign was launched, the goal was $900,000, but the board quickly realized that a one-story building wouldn’t accommodate growth to the extent needed. Could the goal be raised for a two-story building? The campaign’s rapid success told the tale. In 2002, a $1.2 million goal was set, and not only was it soon reached, it was surpassed. The additional gifts allowed Sugar Plum to add programs and create an endowment. In 2003, the bakery’s grand re-opening drew overwhelming support, which continues to this day.

“From the feasibility study, all the way through the construction of our new facility,” says Thad Nowak, board president, “The Curtis Group was engaged in every step. As expected with a great business partner, they continue to be involved with our direction and evolving needs.”

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