From the UWNCA Nonprofit Learning Series, presented on March 17, 2015. Attend our next training: http://www.unitedwaynca.org/events/members

1. UNITED WAY LEARNING SERIES
Developing a
Strategic
Fund Development Plan

2. Agenda
Fundamentals of a Strategic
Fund Development Plan
Ten Funding Models
Creating a Plan That Works for
Your Nonprofit

3. Schedule
9:00 – 9:20 REGISTRATION & NETWORKING
9:20 – 10:00 PRESENTATION & DISCUSSION
10:00 – 10:15 BREAK
10:15 – 10:55 SMALL GROUP WORK
10:55 – 11:30 REPORT BACK
11:30 Q&A & WRAP UP

4. Who is here today?
• Human Service
• Arts and culture
• Education
• Health
• International
• Environmental
Nonprofit
Type:
• Up to $1MM
• $1 - $5MM
• $5 - $10MM
• $10MM +
Size:
• Government
• Foundations
• Corporate
• Individual: mem/annual
• Individual: major donor
• Workplace giving
• Fees for services
Major
Funding
Source
• DOD
• ED
• Other
Roles

5. What challenges do we face…
•
•
•
•
•
•
•
•
…in creating a fund
development plan?

6. What makes a plan “strategic”?
STRATEGY is about making CHOICES:
1. broad approach
2. leverage your distinctive assets
3. achieve your goal.

7. What do donors fund?
Organization
IMPACT
MISSION
BRAND
VISION
PEOPLE

8. It’s all about the people
YOUR DONORS
• Passion
• Motivation
• Connection to your people
• Decision-makers
• Affluence
• Benefits they receive
YOUR LEADERS AND TEAM
• Passion
• Ability to inspire
• Relationship-building
• Time spent on fundraising
• Making the case
• Stories of impact

9. Where are your people giving?
Individuals
Top
Bridge
Base
Foundations
Corporations
Government
Workplace
LEADERSHIP GIFTS
$5000 +
MAJOR GIFTS
$1000+
BASE
$100 +

10. Your funding strategy
Where is the
opportunity
Currently the
strongest?
Not worth
pursuing

11. Tactics follow strategy
Funding Strategy
Financial Targets
Programs
Key Tactics
Action Plan

12. Ten Funding
Models
Stanford Social Innovation Review

13. 1-Heartfelt Connector
2-Beneficiary Builder
3-Member Motivator
4-Big Bettor
Peter Kim, Gail Perreault & William Foster,
Stanford Social Innovation Review, 2009
“Ten Nonprofit Funding Models”
8-Resource Recycler
9-Market Maker
10-Local Nationalizer
5-Public Provider
6-Policy Innovator
7-Beneficiary Broker

14. Core elements of funding models
14
• Individuals, foundations, government,
corporations, mixed
Source
• Multitude of individuals, few individuals,
policy-makers, administrators
Decision-maker
• Self-interest, altruism, collective interest
Motivation

15. Primary Source - Individuals
MODEL Heartfelt Connector Beneficiary Builder Member Motivator Big Bettor
Character-
istics
Broad mission appeal Provides individual
benefits & connection
Serve a group, creates
collective community
Mission may be
fulfilled within
timeframe
Examples Medical research,
environment,
international
Universities, hospitals Religious
congregations, arts,
environment
Medical research,
environment
Save the Children Harvard University NPR March of Dimes
(polio)
Source Individual Individual Individual Individual or
Foundation
Decision-
Maker
Multitude of
individuals
Multitude of
individuals
Multitude of
individuals
Few individuals
Motivation Altruism Self-interest then
altruism
Collective Interest Altruism
Programs/
Tactics
Special events… Direct
mail… Corporate
sponsorships
Fees… Major gifts Membership… Fees…
Special events… Major
gifts… Direct mail
Major gifts

16. Primary Source - Government
MODEL Public Provider Policy Innovator Benficiary Broker
Character-
istics
Provides services seen as
govt responsibilities
Offers significant new
approach, often result of
crisis
Beneficiaries decide how to
spend the money
Examples Human services,
education, international
Human services, education,
international
Health, housing, employment
Interfaith Works
(homeless shelters)
Latin American Youth
Center (LAYC Academy)
Ardmore Enterprises
(disabilities)
Source Government (via RFP) Government (via
champion}
Government (via
reimbusement)
Decision-
Maker
Administrators Policymakers Multitude of individuals
Motivation Collective interest Collective interest Self-interest
Programs/
Tactics
Government Contracts Earmark or govt. pilot
project
Gov't. reimbursement

17. Primary Source – Corp. + Mixed
MODEL Resource Recycler Market Maker Local Nationalizer
Character-
istics
Nonprofit uses surplus or
low-cost goods
Funder with self-interest
and abililty to pay
Top priority local issue,
common to many localities
Examples Food, international Health, conservation Education, youth development
Capital Area Food Bank The Trust for Public Land Big Brothers Big Sisters of
America
Source Corporate Mixed Mixed
Decision-
Maker
Few individuals Mass of individuals / few
individuals
Few individuals
Motivation Self-interest Altruism/self-interest Altruism
Programs/
Tactics
In-kind giving Fees… Major gifts Major gifts… Special events

18. Creating a Plan

19. Strategic Development Plan
Mission,
Vision,
Impact,
Strategic Plan
Core
Funding
Strategy
Realistic &
Ambitious
FINANCIAL
GOAL
Core
Messages
Donor
Segmen-
tation and
Stewardship
Key Tactics
Financial
Targets per
Donor
Type &
Tactics
Roles of
ED, DOD,
Board,
Volunteers
Activity
Calendar,
Budget,
Systems
STRATEGIC DEVELOPMENT PLAN

20. Strategic Development Plan Outline
DEVELOPMENT PLAN FOR DEV COM & BOARD
Goal - $ For contributed revenue
Breakdown By source and/or program
Core strategies Major approaches to achieving goal
Annual Objectives Measurable objectives per source,
program, strategy etc.
Activity calendar By month at a minimum
Expense Budget Major categories, at a minimum
ACTION PLAN INTERNAL
Tactics, project timelines, staffing,
systems, itemized budgets etc.
Detailed implementation plans that
guide development operations

21. Let’s get going!
1 Consider how CP® Fund Development - Strategy
Planning Tool relates to your nonprofit
2 Get input from others at table
3 Divide into new teams based on funding model
4 As a team, select one organization as a “case study” for
planning as time permits.
5 Report back (5 minutes each group)
Table Team Work

22. Thank you to our Sponsor and Partners!
And special thanks to
all of you!
Mary Robinson
Julie Crudele
Sponsored By