Annual Fund Planning

Transcription

1 Annual Fund Planning Pam Smith & Gary Henricksen Squam Lakes Association Five Maples Development Communications

2 Session Objectives Learn how to create an annual fund plan for development, including Objectives Activities Metrics Communications Budget We will show how to work through a plan

3 Why create a plan? Goal setting to promote growth Create ownership among fundraising team and volunteers Roadmap Track progress and identify problems as they arise Proactively set goals and priorities Create timeline SWOT Analysis - strengths, weaknesses, opportunities, threats

4 What can you achieve? Giving USA AFP-NNE Your Org? 2015 $380 B $8.9 B 2016 $390 B $9.1 B Increase + 2.7% + 3% + 5%? (Fundraising Effectiveness Project compiles information provided by donor software companies for over 10,000 non-profits)

5 What goal have you made or been given for 2018? No increase? Increase 0-5% Increase 5-10% Increase over 10% Totally ridiculous goal?

6 AFP-Fundraising Effectiveness Project Participating organizations had 8.91 million donors contributing in 2016 compared to 8.86 million donors contributing in 2015 for an overall rate of growth in donors of 0.6% (49,421).

7 AFP-FEP: growth in $$ by program size (2016 over 2015) +1.2% +8.6% -10.4% Less than $100K $100K - $500K More than $500K Growth-in-giving performance varies significantly according to organization size (based on total amount raised), with larger organizations performing much better than smaller ones.

8 Individuals are where the money is. Giving USA 2016 Report By Individuals 72% % of All Giving By Foundations 15% By Bequests 8% By Corporations 5%

9 Where should you allocate your precious staff time and dollars? Channel Cost to Raise a $ Staff Effort Dollars Raised Capital Campaign $0.05 to $0.10 High High Major Gifts $0.05 to $0.10 Medium High Planned Giving $0.25 High High Direct Mail Renewal $0.20 Medium Medium Benefits/Special Events $0.50 High Medium Grant Writing $0.20 Medium Low-Medium /Social Media $0.01 Low Low Direct Mail Acqusition $1.00 to $2.00 Medium Low From James Greenfield as reported on Modified by Gary and Pam.

10 Yes, Major Donors are for you! 88% of all donations come from 12% of all individuals AFP-Fundraising Effectiveness Project as reported by Bloomerang The 2016 U.S. Trust Study of High Net Worth Philanthropy

11 The Annual Fund & Major Gifts Annual Fund = Your Base and Pipeline to Major Gifts Activities Prospect Strategy Continued Cultivation STEWARDSHIP Impact Reporting 80/20 rule AFP = 89/14 (includes capital campaigns) Orgs are depending on fewer people for more money

12 Number of Donors (Blue) vrs Giving (Red) $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Annual Fund averages for 12 organizations: 4x Arts, 2x Community Hospitals, 1x VNA/Hospice, 2x Education, 3x Social Services Ranges. Number of Current Year Donors: from 34 to 9,465. Annual Amount Given: from $2,914 to $2,200,979. Average Number of Donors: 1,509. Average Gift: $310.

13 Let s evaluate Based on your internal and external factors, what % increase is challenging but achievable? What if the goal you are given is unrealistic? How do you manage that? Developing a simple line item budget for income, expense and staff time by channel can help educate the ED or Board on what is achievable; you can show what projects, staff and expenses have to be added or eliminated (how much time the ED has to spend meeting with donors!)

14 This year projection Example Annual Plan Budget Project Type Total Scheduled Average Sent, Viewing, Attending or Planned Number of Gifts Gift Total Amount Average Gift Cost Each Cost Cost to Raise A $ Major donor meetings $ 65,000 $ 4,333 $ $ 1,875 Direct mail solicitation 2 1, $ 32,000 $ 128 $ 1.50 $ 5,400 White mail 15 $ 600 $ 40 Thank you cards ongoing 300 $ 1.75 $ 525 Thank you phone calls ongoing 25 $ - $ - Solicitation phone calls Donor Impact Newsletter/Report 2 1, $ 950 $ 53 $ 2.35 $ 8,460 s - donor impact s s - solicitations s - engagement $ 500 $ 100 $ 0.01 $ 10 Social Media Posts $ 0.01 $ 12 Web giving pages 1 2, $ 2,900 $ 58 $ 0.25 $ 500 Annual Gala/Auction $ 45,000 $ 818 $ $ 14,000 Volunteer Breakfast 1 35 $ $ 525 Golf Tournament $ 25,000 $ 893 $ $ 14,400 Day of Giving Other $ - Total 436 $ 171,950 $ 45,707 $ Net $ 126,243

15 Plan Example: Major Gifts This year Board participation 60% 25 Meetings with donors 3 home based receptions 2 Printed and mailed impact reports 2 High Level Stewardship Touches Next Year Board participation 80% 35 meetings with donors 1 home based reception 2 Printed and mailed impact reports 8 Impact s 4 High Level Stewardship Touches

16 Plan Example: Direct Mail & This year 2 direct mail appeals No solicitations Next Year 2 direct mail appeals 4 solicitation reminders

17 Measure Your Renewals AFP All Renewals 45% Renewal of last year's first time donors Renewal of multiyear donors Recovery of lapsed donors FM Customer Range Goal 23% 5%-62% 35% 60% 30%-71% 65% 5%-20% 15% -AFP 2015 Fundraising Effectiveness Report, Retention Supplement

18 Direct mail and advice #1 Data Spring direct mail raises half of end-of-year direct mail dollars. Procrastination works against good intentions: I didn t give last time, and you didn t ask me again. Asking 3 times per year will result in 15% of donors giving 2 or 3 times. Recommendation Send direct mail solicitations 3 or 4 times. In-home dates: Early spring Before Memorial Day After start of school Before or after Thanksgiving, no later than week before Christmas

19 Direct mail and advice #2 Data solicitations get up to 35% open rates, but far less than 1% donation rates (only 1 in 2000 per M+R). 12% of all donations happen in the last 3 days of the year (NTEN). Recommendation Send solicitations 1 week and 2 weeks after arrival of the direct mail solicitation. the day after Christmas and Dec 31 st.

20 Direct mail and advice #3 Data Personalization works. Letters out-perform marketing style pieces Notes from someone they know increase response (the note can be digitized if high quality) Ask for the right amount in the right way: Five Maples Blogs on how to ask. Recommendation

21 Plan Example: Stewardship This year Sent receipt and thank you note to all donors See: Five Maples Our How-To Guide For Keeping First Year Donors for thank-you letter, phone call, newsletter, and wealth screening advice and scripts. Next Year Send thank you note to all donors Thank all $100+ donors by phone within 1 week of gift receipt Have ED call $500+ donors and Board President call $1,000+ donors Add birthday cards for $1,000+ donors

22 Donor Impact Reporting Meaningful information on their gifts at work is the key to donors repeat and increased giving. Fundraising under-performance, therefore, is actually a failure to communicate. Penelope Burke in Donor Centered Fundraising In my experience, the most overlooked and underutilized vehicle for conveying stories and the vitality of your organization s mission is the simple four-page newsletter Roger Craver in Retention Fundraising

23 Donor-centric newsletters (The Donor Impact Report) Some printed donor-centric newsletters break-even. Break up your copy into multiple s throughout the year. You ve provided $8,000 in scholarships to 17 students! Note well: headlines are about donors

24 Plan Example: Social Media/Web This year Random Facebook postings about giving (annual appeal) Thanked donors at year-end 4 Constant Contact s for engagement opps Next Year Monthly push for annual giving Bi-weekly thank you to donors, volunteers, members Monthly constant contact s for engagement Add instagram, twitter and other social media

25 Plan Example: Fundraising Events This year Annual Gala/Auction Takes 10% of staff time Raises $45,000 Costs $14,000 Net $31,000 Golf Tournament Takes 10% of staff time Raises $25,000 Costs $8,000 Next Year Annual Gala/Auction Takes 10% of staff time Raises $48,000 Costs $15,000 Net $32,000 Raise price to raise net? Golf Tournament Takes 10% of staff time Raises $25,000 Costs $8,000 Find $5,000 in new sponsors to raise net?

26 Plan Example: Engagement and Stewardship Events This year 1 Speakers Series presentation 60 people attended No sponsors 1 Volunteer Recognition Breakfast 50 people attended Next Year 2 Speakers Series presentations Sponsored events Goal of 300 per year to attend One may be exclusive Members only or Major Donors only 1 Recognition Events 1 Donor Luncheon with philanthropic messaging/impact presentation

27 Next Year Budget Example Annual Plan Budget Project Type Total Scheduled Average Sent, Viewing, Attending or Planned Number of Gifts Gift Total Amount Average Gift Cost Each Cost Cost to Raise A $ Major donor meetings $ 73,000 $ 3,842 $ $ 2,625 Direct mail solicitation 2 1, $ 31,000 $ 124 $ 1.50 $ 5,400 White mail 17 $ 680 $ 40 Thank you cards ongoing 450 $ 1.75 $ 788 Thank you phone calls ongoing 50 $ - $ - Solicitation phone calls Donor Impact Newsletter/Report 2 1, $ 950 $ 53 $ 2.35 $ 8,460 s - donor impact s $ 180 $ 60 $ 0.01 $ 64 s - solicitations $ 800 $ 67 $ 0.01 $ 64 s - engagement $ 600 $ 200 $ 0.01 $ 36 Social Media Posts $ 0.01 $ 23 Web giving pages 1 2, $ 3,050 $ 51 $ 0.25 $ 500 Annual Gala/Auction $ 47,000 $ 825 $ 15,000 Donor Luncheon 1 25 $ $ 1,250 Golf Tournament $ 25,000 $ 893 $ $ 14,400 Day of Giving Other $ - Total 467 $ 182,260 $ 48,610 $ Net $ 133,650 Change from last year 31 $ 10,310 2,903 % Change from last year 7.1% 6.0% 6.4% Change in Net $ 7,407 % Change in Net 5.9% Our class example (year over year change): 1.5% increase in donors 6% increase in dollars 5% increase in Net

28 Other Channels This year Grant writing Planned Giving Go Fund Me Capital Campaign Others to consider Giving Day Peer-to-peer asks Raffle $5K Crowdfunding Charity Auction Challenge Gifts Matching Gifts

29 Giving Days Giving Tuesday Nov. 28 NH Nonprofits NH Gives - June Create your own giving day

30 Create your plan Who had a 2017 multi channel plan in writing (or on a spreadsheet)? Has anyone eliminated something and what was the effect.events, communications,? How have you changed where you spend your time? What is no longer working?

31 Resources Analysis, Benchmarks & Best Practices APF 2017 Fundraising Effectiveness Project DMA Response Rate Report 2016 M+R Benchmarks Study Giving USA 2017 Annual Report Target Analytics Index of Direct Marketing Fundraising Adrian Sargent Direct Mail & Five Maples Fundraising Blog How Ask Strings Work Appeal Letter Checklist Alan Sharp How To Write Appeals and Newsletters Tom Ahern Jeff Brooks Mal Warwick Stewardship Our How to Guide for Keeping First-Time Donors Association of Donor Relations Professionals Roger Craver Penelope Burk