| Annual Fund Case Study: Greater Minneapolis Crisis | | | | sources. What you can do: Understand there are |
| Nursery© A Strategic Development Plan and | | | | two types of grant funding. The first is corporate |
| a Professional Staff Committed to the Cause is | | | | and large foundation grants with stringent |
| Essential to a Successful Annual Fund | | | | guidelines. The second is small family foundations |
| In one year The Greater Minneapolis Crisis | | | | and businesses; most whom don't have guidelines. |
| Nursery acquired 1,287 new donors. In the same | | | | The latter where treated more as an individual |
| year, 454 donors increased their level of giving | | | | than a corporate funder. It's an important |
| from the previous year. In this case study I've | | | | distinction in terms of how you communicate with |
| outlined the strategies and techniques used for | | | | them. If you have an organization where your |
| donor acquisition and retention. | | | | programs can be "touched and felt", like the crisis |
| Annual fund success is definitely a process not an | | | | nursery - encourage site visits regularly. Looking |
| event. When I began work with the Nursery two | | | | at a sleeping child speaks volumes and often |
| years prior, I first focused my time and attention | | | | that's all one needs. |
| on building a strategic development plan and | | | | Hold volunteer-hosted special events - The |
| building a professional development team to carry | | | | Nursery formed a volunteer committee from the |
| out the plan. Despite internal re-organization, | | | | community. The committee focused on bringing |
| limited fundraising, and hiring a development team, | | | | their friends/colleagues to the Nursery for a tour |
| the annual giving program grew 6%. | | | | and then lunch with the kids. What you can do: |
| My second year with the Nursery they embarked | | | | Encourage your organizations closest friends to |
| on a $3.1 million dollar capital campaign. The | | | | bring their friends to events, or visit the place |
| development team carried out the strategic plan | | | | they volunteer. Let them know they are more |
| for building the annual fund along with the | | | | than a donor or volunteer, but also an |
| Development Committee of the Board. In the | | | | ambassador for the organization. |
| midst of a capital campaign, the Nursery's annual | | | | Donor retention/upgrade strategies: |
| giving program increased by 12% that year. | | | | Design giving clubs - The Nursery's board |
| By the third year a number of pieces were firmly | | | | researched the giving clubs of other area |
| in place. A professional four person development | | | | non-profits. They also spent a fair amount of time |
| team had been together for two years, the | | | | and effort developing the names of the giving |
| original development plan had been refined and | | | | clubs to develop a unique and appropriate brand |
| targeted, and a disciplined media relations | | | | or identity for each giving level. |
| campaign began to yield results. The Nursery | | | | Create a monthly giving club - Through this |
| gained much publicity due to the opening of its | | | | process they also introduced a monthly giving club. |
| second shelter, including an article in TIME | | | | This program served two purposes. First, the |
| MAGAZINE which I promptly received | | | | program evened out the cash flow over the |
| reproduction permission and subsequently mailed | | | | course of the year. Second, the opportunity to |
| that same week to the Nursery's 4,000 donors. | | | | give monthly allowed certain individuals to |
| That mailing raised $29,000 in a matter of four | | | | contribute a greater amount than they would |
| weeks. That same year the annual fund grew by | | | | otherwise consider if making a single gift. To |
| 31%. Overall, in three years Greater Minneapolis | | | | identify potential candidates for the monthly giving |
| Crisis Nursery's annual fund nearly doubled. | | | | program, they ran a report from their donor |
| SUGGESTED STRATEGIES FOR GROWING AN | | | | database to identify individuals who had made |
| ANNUAL FUND Donor acquisition strategies: | | | | three or more gifts within the previous fiscal year. |
| Cultivate media relations - In one year, the | | | | These individuals were mailed information about |
| Nursery appeared 69 times in print and 9 times | | | | the monthly giving program. |
| on television including NPR, Time Magazine, The LA | | | | Target select donors for personal solicitation - |
| Times, and ABC World News Tonight. What you | | | | The Nursery analyzed giving patterns and |
| can do: Obtain a list of selected media contacts | | | | identified prospects for gifts at the highest level |
| (source: Schmidt's Media Directory) and routinely | | | | of their gift clubs. These individuals were removed |
| e-mail press releases to select TV news, radio, | | | | from basic direct mail programs. Each prospect |
| community newspapers, city magazines and trade | | | | was assigned a specific ask amount and a solicitor. |
| publications. | | | | A personal phone call and tour of the shelter was |
| Develop a speaker's bureau - The Nursery | | | | planned and progress on each solicitation |
| incorporated a speaker's bureau aggressively | | | | monitored on a regular basis. Each solicitor was |
| promoted in the community and encouraged local | | | | assigned a minimum of ten donors. |
| groups to host community events their behalf. | | | | Cultivate a strategic relationship with each |
| What you can do: Prepare a comprehensive | | | | corporate supporter - The Nursery encouraged |
| speaker's bureau manual which includes | | | | employee volunteer programs with local corporate |
| organization contact information, sample script, | | | | supporters. Board membership was considered |
| organization history, statistics and facts, board list, | | | | for major corporate supporters. It's important to |
| common answers to common questions. Next | | | | note that today more than ever before |
| find listings of faith communities and community | | | | corporations give or give more to organizations |
| groups - all exist to support the community and | | | | where their employees volunteer. |
| give away funds to achieve that goal. Send a | | | | Encourage site visits - The Nursery's development |
| mailing in January or February to these groups to | | | | team and staff aggressively contacted donors to |
| schedule speaking engagements - it works best if | | | | encourage them to visit the shelter. The |
| you ask groups if you may address their group | | | | opportunity to see the children's faces first-hand is |
| during a specific month (for example: April is | | | | a powerful and emotional experience. |
| National Child Abuse & Neglect month). | | | | Promote special occasion gifts - The Nursery |
| Establish Board Member participation - When you | | | | actively promoted special occasion giving where |
| establish the practice of Board participation in | | | | gifts are made in honor or memory of a loved |
| fundraising you eliminate the need for explanation | | | | one or colleague. Gifts made in honor of Mother's |
| when a new board member joins your | | | | Day or the Christmas Holiday. In most cases, |
| organization - the expectation is clear. What you | | | | these gifts were given in addition to an annual |
| can do: Require board members to commit to | | | | fund contribution. |
| assisting the development effort. Board members | | | | Aggressively use return gift envelopes - The |
| need to financially support your organization. It's | | | | Nursery placed gift envelopes in thank you letters, |
| much easier to go to the larger community or | | | | newsletters, tax receipts, information packets and |
| write a grant if you can say, "Yes, we have | | | | annual reports. We even sent a mailing three |
| 100% board participation in our fundraising | | | | times a year (during low cash-flow months) which |
| efforts". The amount doesn't matter - it's the | | | | was simply a reply gift envelope within a #10 |
| percentage of participation you strive for. Board | | | | envelope (no letter enclosed). Many donors will |
| members should be asked directly if they are | | | | give every time you present an opportunity to |
| connected to funding sources, have funding | | | | give. Proof: The "envelope within an envelope" |
| sources of their own or are willing to roll up their | | | | mailing consistently raises $8,000 - $10,000 when |
| sleeves and raise money. A practice I | | | | mailed to roughly 3,000 donors. |
| recommend is to have your board send a letter | | | | Tailor solicitations to individual interests - |
| to their personal address book asking for support. | | | | Whenever the development staff interacted with |
| Convert Capital - Campaign donors to annual | | | | donors and corporate supporters, they listened |
| donors Several donors to the Nursery's Capital | | | | for the individual's interest in specific programs |
| Campaign were new donors or were not regular | | | | offered by the Nursery. When soliciting, donors |
| Annual Fund donors. What you can do: Establish a | | | | were provided options for supporting the program |
| strategic plan to approach Capital Campaign | | | | for which they had expressed interest. Some |
| donors asking for long-term support. | | | | donors are not sufficiently motivated to support a |
| Acquire or purchase lists - The Nursery purchased | | | | general operating fund. An opportunity to support |
| or traded lists with similar organizations for direct | | | | a specific program in which they have an |
| mail acquisition. This isn't just an important piece | | | | expressed interest can motivate an annual fund |
| of your development plan - it is essential. About | | | | donor to increase their annual fund gift, or will |
| 50% of donors do not renew their gifts after the | | | | encourage a non-donor to begin to give. |
| first year and, by the fifth year; almost 90% | | | | In closing, there are four critical elements that are |
| have fallen off. It can cost up to 10 times as | | | | the foundation for a successful annual fund: |
| much to reach a new donor as it does to | | | | 1. An organization with a good reputation. |
| communicate with an existing one. What you can | | | | 2. A strategic, deadline-oriented, development plan |
| do: When you develop your annual fund plan - | | | | with clearly established fundraising goals. |
| make sure a strategic and systematic tactic is in | | | | 3. A professional development team who is |
| place to allow for on-going donor acquisition. | | | | strongly committed to the cause (and gives to it!) |
| Capture names or e-mail addresses whenever | | | | 4. A fundraising database that's user friendly and |
| possible. | | | | flexible enough to track many dimensions of data |
| Increase grant research and proposal submission - | | | | in a manner which ensures the integrity of the |
| The Nursery used the internet and other research | | | | information once it is pulled from the database in |
| tools to identify both local and national fund | | | | the form of a report. |