Community Planning 12

Fund Raising Basics for Non-

profit organizations
Instructor Torres
Week #3
May 15, 2017
Quiz #1
1. What are the categories that capture how much money you need to
operate a non-profit organization?
2. What are 3 types of funding that is needed to run an organization?
3. What is a fundraising plan and what is its purpose?
4. Tell me 5 sources of fundraising revenue?
5. Give me 1 pro and 1 con of the following types of fund raising:
Individual solicitations
Special events
Grants
Review
FOUNDATION: History of Nonprofits, Tax Exemption,
Different Cultural Approaches to Fundraising
FORMATION: Building Boards, Creating a Mission
Statement, Goals and Objectives, Incorporation and
Tax Exemption, Fundraising Structure and Elements
HOW MUCH SHOULD BE RAISED: Intro to
Organization Budget and how it is determined
TYPES AND SOURCES OF FUNDING Diversifying
INTRODUCED CASE FOR SUPPORT
INTRODUCED THE FUNDRAISING PLAN
Part 1: 3 Basic Building
Blocks
3 Basic Building Blocks of Any Ask
Issue/Cause What are you trying to change? Why?
Beneficiaries Who is intended to benefit from this
change? Why?
Theory of Change Roadmap for change based on
research that makes clear why you are approaching
the issue the way you are approaching it and what
your believe is possible.
Building Block #1: Issue/Cause
Start with the Mission Statement
The Organization Mission Statement defines the main issue the
organization is concerned with:
CDTechs mission is to build livable and economically viable neighborhoods in
LAs most neglected communities where 20% or more of the population lives
at or below the poverty level.
Core Issue = Poverty
Core Issue = Community Conditions/Livability
Core Issue = Economic Viability
Building Block #1: Issue/Cause
Needs/Opportunity Statement
How do you know that the issue(s) your organization wants to change
are significant for others to care about?
Prepare a Need or Opportunity Statement.
The Need or Opportunity Statement is a critical first step in this
process because it is the first thing your donor/funder will look at to
determine if, in their minds or experience, the organization overall or
a proposed project of the organization meets an important societal
need.
Building Block #1: Issue/Cause Defining the
Problem
Pinpoint the problem it should be clearly defined because a
problem that is not clearly defined in the readers mind is not a
solvable problem use statistics, experts/research, real life
example(s).
BUT, dont paint a hopeless picture of the problem if
donors/funders feel it is futile to try and fix they will direct their
money toward a cause where they feel they can make a difference.
Building Block #1: Issue/Cause
What Should be Included in the Needs/Opportunity Statement
The Nature and Extent of the Problem
CDTech: 40% of communities we serve live at or below poverty, which is
the definition of area of concentrated poverty. Largest area of
concentrated poverty in the nation.
Factors Contributing to the Problem or Conditions
CDTech: Public/private disinvestment in the area, historic racial
segregation, immigration/welfare policies. (Systemic Conditions)
Impact of the Need/Problem
CDTech: Because of disinvestment, at least 3 generations are impacted by
underperforming education system, lack of access to higher education
not just quality of life issues, but, impact on local and regional economy.
Promising Approaches to Improved Results
CDTech: Residents have a Ph.D. in life experience and community
knowledge, when the education methodology honors this as the starting
point, great gains are being made in academically. (Cite Paulo Freires
theoretic framework work from Pedagogy of the Oppressed and
documented results from CDTechs programs.)
Building Block #2: Beneficiaries
Who do you serve/engage through your organization?
(Communities, special needs populations)
What is the scale and scope of the service area?
Where do they live? How many live there? General
demographic information: age, ethnicity, education,
household income and size
What are their capacities/assets?
Are there barriers/challenges specific to this population?
What is the promise of the future for this population/
community if needs/opportunities are addressed now?
Building Block #3: Theory of Change
A Theory of Change (TOC) is a tool for developing and
explaining to others (donors, funders, etc.) an
organizations solutions to complex social problems.
The TOC starts with an hypothesis: If ______, then
______.
CDTech: If residents of low-income communities are empowered
through knowledge of community development process and
tools, then they themselves will be able to develop prosperity
and justice in their communities.
The TOC proceeds from that starting point to present the
body of knowledge that supports the organizations
approach to prevention, intervention, advocacy, etc.
Generally, the TOC is presented in a diagram that flows
from the main goal of an organization or project down
through a series of outcomes and sub-outcomes to a set
of fundable activities. [Review examples.]
Example: 90011 Youth Advocates
Issue/Cause: Poverty, Community Conditions, Economic
Viability
Intergenerational poverty
Beneficiaries: Youth aged 15-24; Teen Parents
90011 has highest number of births to teen mothers in California; third
highest rate of teen births
Theory of Change:
Social Determinants of Health (Center for Disease Control)
Sociopolitical Development Theory
Empowerment Strategy used root cause analysis to determine
underlying factors: loneliness parents working all the time,
opportunity no one at home, normalizing of teen parenthood high
rates, peer pressure to be sexually active.
[Going forward we would use this primary data gathered from youth
to build a new Theory of Change that was more specific to the needs
of the 90011 youth.]
Develop a mock organization based on last
weeks meeting.
Mission Statement - A written declaration of an organizations core purpose and focus that normally remains
unchanged over time. Properly crafted mission statements (1) serve as filters to separate what is important
from what is not, (2) clearly state which populations will be served and how, and (3) communicate a sense of
intended direction to the entire organization. http://www.businessdictionary.com/definition/mission-
statement.html#ixzz3xAPImLho

Vision Statement: What the organization ultimately hopes to accomplish as a result of

its efforts.

Goals: Long-term, overall changes you wish to cause.

Objectives: Short-term, measurable steps you take to reach your goal.

REVIEW THE ELEMENTS SPECIFIC TO THE MOCK ORGANIZATION.

 Part 2: Apply the 3 Building
Blocks to the Mock Organization
 Small Group Work
Each team will outline the Mock Organizations issue/cause,
beneficiaries and Theory of Change from this discussion, name your
organization!
Share-out your small groups work results
Discussion

HOMEWORK DUE NEXT WEEK

1. Develop a mock organization
2. Develop a mock budget utilizing the four categories we discussed in
class.
3. Write an acquisition letter for a donor group identified in your small
group work or a donor that you think would want to contribute to
your mock organization.