Community Planning 12: Fundraising Basics

for Nonprofit Organization

Instructor B. Torres
May 8, 2017
WHAT WE HAVE COVERED SO FAR
DEFINITION AND HISTORY OF NONPROFITS
TAX EXEMPT STATUS OF NONPROFITS
STEPS IN STARTING A NONPROFIT
IMPORTANCE OF A STRONG BOARD
CRITICAL ELEMENTS OF FUNDRAISING
BASIC STRUCTURE OF A NONPROFIT (BOARD, VOLUNTEERS AND
STAFF)
INTRODUCED MOCK ORGANIZATION MISSION AND STARTED
IDENTIFYING CHARACTERISTICS OF ITS BOARD OF DIRECTORS
Raising Money for the Cause
How Much Money Does It Take to Operate an
Organization?
Personnel (50% of Budget)
Salaries
Fringe Benefits (Health/Dental Insurance, Paid Time Off, FICA/WC)
Program Expenses (25% of Budget)
Materials and Supplies
Printing/Photocopying
Stipends
Transportation/Field Trips
Community Meetings and Events
Operating Costs (10% of Budget)
Occupancy (Space, Utilities, Insurance, Security System, Maintenance)
Telecommunications
Equipment
Indirect (15% of Budget)
Example of a Small Organization
TOTAL BUDGET = $500,000
Personnel (50% of Budget)= $250,000
1 Executive Director @ $60,000; 2 Program Managers @
$40,000; 2 Program Coordinators @ $30,000 = $200,000
Fringe Benefits @25% = $50,000
Program Expenses (25% of Budget) = $125,000
Operating Costs (10% of Budget) = $50,000
Indirect Cost @ 15% = $75,000
How Does an Organization Determine Its
Budget?
Strategic and Annual Plans What does it does it need to accomplish
to achieve its mission, goals and objectives? What will that cost?
Current and Accessible Sources of Funding How much of the
revenue is sustainable year after year? How much is short-term, non-
renewable?
Reserves, Loans, Penalties/Paybacks How is the organization going
to build a reserve and cover liabilities?
Types of Funding Needed
Program (Restricted) vs. General Operating (Unrestricted)
Capacity Building/Management Development
Seed Money, Start-Up Money
Equipment/Technology
Technical Assistance
Capital Campaigns
Building Renovation
Endowment Funds
Sources of Funding
(Overview Only, More Detail in Thursdays Class)
Fees
Grants for general purposes
Grants for specific programs
Memberships
Direct Mail (Email) Solicitation
Direct (person-to-person) solicitation
Telemarketing
Special Events
Income earned from marketing products or services
Memorials
Corporations
Cause-related marketing
Planned giving
In-kind contributions
Capital or endowment campaigns
Other (Crowdsourced Fundraising)
Diversified Funding

Reliance on 1 or 2Source
Sources: Diversified Funding
of Funds Source of Funds

Grants
Grants Contracts
Contracts Donors
Donors Events
Fees Online
Fees
Reading: The Perennial Question
of Clean and Dirty Money
Small Group Study and Reflection
Activity #2
20 minutes
Context for Developing a
Fundraising Plan
Context for Developing a
Fundraising Plan
Review handout on the Mock Organization.
Core Components of a Case for Support (TOOLKIT):
Mission Statement
Goals
Objectives
Programs and Services
Finances
Governance
Staffing
Service Delivery
Planning and Evaluation
Budget
History
Small Group Work:
Mock Organization
ORGANIZATION BUDGET
Revisiting Direct and Indirect Costs
Personnel (50 - 60% of Budget)
Salaries
Fringe Benefits (Health/Dental Insurance, Paid Time Off, FICA/WC)
Program Expenses (25-30% of Budget)
Materials and Supplies
Printing/Photocopying
Stipends
Transportation/Field Trips
Community Meetings and Events
Operating and Indirect Costs (10-15% of Budget)
Occupancy (Space, Utilities, Insurance, Security System, Maintenance)
Telecommunications
Equipment
Allocation of Administrative costs that cannot be attributed to projects
Reserves
Loans
A Deeper Look at the Mock Organization
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.

Introduction to the
Fundraising Plan
Introduction to the Fundraising Plan
Securing the funding necessary to operate your
organization is one of the most important and
relentless parts of administering a nonprofit
organization. Texas Commission on the Arts
What is a fundraising plan?
Written multi-year plan developed by the Board, Executive
Director/President, Development Director with staff that
establishes the goals and objectives for raising funds for
current budgetary needs and expansion plans of the
organization.
What is its purpose?
Establishes and details the strategies and resources to carry
out the plan.
Provides benchmarks for evaluating the Plans success.
Step 1: Identify the project you are seeking funding for
and then set up your strategy.
Who will be the target audience of your project? Who will
be impacted and in what way?
Use this assessment to think about potential donors for
your project. Who has an interest in impacting your target
audience?
Make sure your list is broad, including donors on a
national, statewide, regional and local level.
Establish a fundraising goal. Use a project budget to show
total anticipated expenses and the funds that you hope to
raise against these expenses.
Establish a fundraising strategy. Use your list of potential
donors divided by category to create a strategy.
Step 2: Put your plan on a calendar.
Individual Contributions greatest flexibility in terms of time frame.
Public (Government) Funders typically ranges from 3 to 12 months.
Corporate/Business Contributions typically ranges from 3 to 6
months.
Corporate Foundations typically ranges from 4 to 6 months.
Public/Private Foundations typically ranges from 4 to 6 months
Fundraising Event very small, intimate events can be planned in 3 to
4 months; most take 6 to 12 months of planning.
Introduction to the
Fundraising Plan Template
Identifies the organization.
Period of fundraising.
States the organizations goal for the fundraising period.
For each source of funds:
Plan and rationale Reason why this source of funds was
selected for this plan and what the organization wants to
accomplish through the plan.
Strategy plan of action designed to achieve the goal.
Staff Time who will work on this strategy; how many hours?
Board Time which board members; how many hours?
Direct Cost how much will it cost to raise the money?
Timetable when will it start and when will it end?
Projected Income what are the target goals for raising funds
through this strategy over the course of the fundraising period?
Using the Template in the Class
The final project for this class is the construction of a Fundraising Plan
by each of the small groups for the mock organization.
As we explore, in detail, 3 of the most common sources of revenue
streams make notes on how each one might be built into the
Fundraising Plan.
As you complete the small assignments for each of these 3 methods,
you should be creating the building blocks of your plan.
Sources of Nonprofit
Revenue
Sources of Nonprofit Revenue
Fees
Grants for general purposes
Grants for specific programs
Memberships
Direct Mail (Email) Solicitation
Direct (person-to-person) solicitation
Telemarketing
Special Events
Income earned from marketing products or services
Memorials
Corporations
Cause-related marketing
Planned giving
In-kind contributions
Capital or endowment campaigns
Other (Crowdsourced Fundraising)
Pros and Cons of
3 Fundraising Methods