Sample Non-Profit Board Meeting Notice Letter

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					Greater New Orleans AFP
Fundraising Conference
June 10, 2009




 Fundraising 101

 presented by
 Emily DiStefano, M.S., CFRE
 DiStefano & Associates
Philanthropy
  Overview



               2
3
4
Definitions

• Philanthropy – Love of Mankind

• Fundraising – the servant of
  philanthropy - a process whereby
  donors are invited to make gifts
  that match their interests and the
  needs of a non-profit organization.



                                        5
  Infrastructure –
The Planning Process
   for Fundraising

                   6
Rosso’s Concentric Circles
The Constituency Model




                       Source: Henry A. Rosso, 1991. Achieving Excellence in Fund Raising
                                                                                            7
Rosso’s Concentric Circles
The Constituency Model… Continued




                     Source: Henry A. Rosso, 1991. Achieving Excellence in Fund Raising
                                                                                          8
Basic Responsibilities of Nonprofit
Boards
 1.    Determine the organization's mission and purposes.
 2.    Select the executive.
 3.    Support the executive and review his or her
       performance.
 4.    Ensure effective organizational planning.
 5.    Ensure adequate resources.
 6.    See that resources are managed effectively.
 7.    Determine and monitor the organization’s programs
       and services.
 8.    Enhance the organization’s public image.
 9.    Serve as a court of appeal.
 10.   Assess its own performance.
                                                       9
10
Planning Process

                                          THE PLAN
                                         ____________
                                       ______________
                                       ______________
                                         ____________
                                       ______________
                                       ______________
                                       ______________
              and                      ______________
                                       ______________
                                         ____________
                                       ______________
                                       ______________

  A Process                                    An Outcome
               (National Society of Fundraising Executives (NSFRE), Survey Course on Fundraising)


                                                                                        11
Components of a Fundraising Plan
   Importance of Preparation
   Case Statement
   Prospect List
   Solicitation Methods
   Budget
   Policies
   Gift Processing Procedures
   AFP Code of Ethics


                                 12
    Organizational Structure

   What resources are needed to carry out the
    plan?
       Money
       Staff
       Volunteers


   How might we best organize our efforts?
       Committees
       Task forces

   Who reports to whom?

                                              13
  Case and
Communications



                 14
Definitions
   Case – an expression of the cause, or a
    clear, compelling statement of all the
    reasons why anyone should consider
    making a contribution in support of or to
    advance the cause.  (Seymour, 1966)



   Case Statement – a written document
    that describes in a summary fashion the
    reasons a cause is worthy of support, why
    fundraising and philanthropic gifts are
    needed, and the benefits specific people
    will receive when funds are spent.

                                                15
Five Steps to a Case Statement

1.   Determine why organization is
     worthy of support.
2.   Determine who will prepare case
     and case statement.
3.   Prepare case statement.
4.   Test the case statement.
5.   Plan for communicating case.

                                       16
      Developing
   a Base of Donors
Through Annual Giving


                    17
Definition

   Annual Giving – the primary
    fundraising method used to broaden
    support, upgrade giving levels and
    provide operating support for on-
    going programs.   (Association of Fundraising Professionals – AFP)




                                                                         18
  The Relationship Pyramid


                                                Actualized
                                   Inspire        Donor
                                                                 Upgrade Programs
                              Invest    Major, Committed Donor


                        Interest         Loyal, Frequent Donor


                    Involve                  Established Donor

                                                                       Renewal Programs
              Inform                           Repeat Donor


           Invite                            First-Time Donor
                                                                           Acquisition
                                                                           Programs
Identify                                         Prospect




                                                                                          19
Ladder of Effectiveness
            Person to person
            Personal letter with phone
             follow up
            Personal phone call with follow-
             up letter
            Personal letter
            Personal phone call
            Fundraising benefit/event
            Impersonal letter/direct mail
            Door-to-door
            Product sales
            Impersonal telephone call
             (telemarketing)
            Media advertising


                                            20
Setting a Goal

   Based on case for giving and
    analysis of key prospects, evaluated
    capacity to give and a mathematical
    formula, a reasonable, yet
    ambitious goal is set.




                                       21
Gift Chart
   Identify number of qualified
    prospects.
   Determine number of gifts needed
    at each level.
   At upper levels use higher prospect
    to gift ratios.
   Major gifts require one on one
    solicitation, up to 5 prospects per
    volunteer. How many volunteers
    can you recruit?
                                          22
      Gift Chart
      Annual Giving Goal $25,000
     Gifts $     # of Gifts   # of Prospects   Subtotals $    Totals $
    $2,500           1              4              $2,500         $2,500
    $1,000           3             12              $3,000         $5,500
      $500           7             28              $3,500         $9,000
      $250          18             56              $4,500     $13,500
      $100          55             130             $5,500     $19,000


        $50         80             160             $4,000     $23,000


Less than   50     Many           Many             $2,000     $25,000

                                                  Total $25,000
                                                                      23
Assemble Leadership
   Recruit overall Annual Campaign
    Chair.

   Chair recruits (with assistance) the
    remaining committee chairs.

   Committee chairs recruit the
    appropriate number of volunteers
    for their committee .

                                           24
Prospects
1.   Identify prospects.

2.   Data Manager puts prospect information
     into a database that is efficient and
     reliable. (Get input from other NPO’s in
     your community.)

3.   Evaluate prospects.

4.   Group prospects by committee.


                                            25
Prospects… Continued
5.   Determine if goal is feasible.
     A reasonable estimation tool used
     by some development directors
     goes like this:
        Total up the estimated gift amounts.
        Divide this number in half.
        Divide the number in half again.
        This method assumes that half the
         prospects will give and they will give
         half of what you ask them to consider
         giving.
                                              26
Modifying the Goal

   If the goal does not look
    reasonable, decide if you will:

       Make adjustments to the goal

       Make adjustments in prospects.
          Example: More prospects needed at
          higher gift levels.



                                              27
Developing Materials

   Campaign brochure(based on case)
   Fact sheet
   Q&A
   Pledge card or form
   Other background materials about
    the organization (board list with
    affiliations, budget, grants
    awarded, etc.)

                                    28
Developing Materials…continued

   Form on each prospect including:
       Contact information
       Giving history
       Attendance at events
       Personal connection with organization
        or issue (if known)
       Connection with board and/or staff
       Involvement with organization.
        (Your donor tracking system may be able to
        print out this information, depending on the
        level of sophistication.)

                                                       29
Kickoff – Orientation Meeting
   Each committee has a separate kickoff
    meeting.
   The “Family” committees should kickoff
    first
       Board
       Staff
       Campaign Steering Committee
       Past Presidents, etc…


   Purpose is to train/orient the volunteers
    on how to solicit, about your organization
    and to select prospects.
                                             30
Preparing for the Kickoff
   Data Manager arranges forms
    containing each prospect’s
    information in alpha order. (included
    ask amount)


   Data Manager prepares form for
    each volunteer solicitor to write
    down names of prospects they
    select. This form is returned to the
    Data Manager at the end of the
    Kickoff event.
                                            31
Preparing for the Kickoff… Continued

   Prepare a notebook for each
    volunteer. This notebook might
    contain:
       More detailed information than in the
        packet that will be given to prospects.
       Solicitation tips.
       Questions you might encounter, with
        answers.

                                                  32
Prospect Selection
Two Methods
Method One:
 Volunteers may go to a large table
  where cards are laid out with names
  of each prospect. They select the
  prospects they want to solicit, fill
  out form listing who they chose,
  Data Manager gives them
  background on each prospect and
  appropriate number of packets.
                                     33
Prospect Selection… Continued

Method Two:
 Names of prospects are called out in
  alphabetical order. Each volunteer
  has a list they have been given at
  the kickoff as well as on large flip
  chart paper. Volunteers indicate
  the prospects they would be willing
  to contact.


                                     34
Advance Preparation
   How much will the prospect be asked to
    consider?
   Who is the best person to set up the
    appointment?
   In a large prospect organization, who is
    the “right” person to see?
   Who goes on the call? It is not unusual
    for two people together to make the top
    calls. If two people are going on the call
    be sure and decide who will discuss each
    part of the call, including description of
    the case statement and description of the
    campaign. Be especially clear about who
    will ask for the gift.
                                             35
Advance Preparation… Continued

   Who is the person likely to have the most
    influence on the prospect?
   Prepare for the tough questions.
   Be sure and write a thank you note,
    regardless of the outcome of the call.
   If you have established an Honorary
    Campaign Cabinet, the Leadership Phase
    is an excellent opportunity for these
    community leaders to use their influence
    on behalf of your organization.

                                            36
Getting the Appointment



   Use phone.
   Identify yourself and purpose of the
    meeting.
   Choice close.
   Confirm.
   Thank and goodbye.

                                           37
Appointment With Major Gifts Prospects

   Confirm vial telephone the day prior.
   Arrive five minutes early.
   Thank assistant.
   Make introductions clearly.
   Notice surroundings and become
    comfortable in your setting.
   Make appropriate small talk.
   Tell story.
   Guide conversation logically.
   Listen, pick up cues, and do not
    overwhelm or “hard sell.”

                                            38
Appointment With Major Gifts Prospects…
Continued

   Mention past support/involvement if relevant.
   Describe what donor gifts have/will help to
    accomplish.
   Gather information you need.
   Be a good listener.
   Ask questions/float ideas.
   Make the Ask.
   Discussion.
   Clarify next steps.
   Leave on time.
   Leave materials behind.
   Follow up with a note of thanks and deliver any
    further information the prospect requests in a
    timely manner.

                                                      39
Report Meetings

Purpose:

   Support
   Fellowship and building enthusiasm
   Opportunity to make reports
   Follow-up




                                         40
Small Group Solicitation
   A volunteer hosts a group of
    prospects in their home, office or
    club.
   The invitees may be from the same
    profession, neighborhood, etc.
   A letter is sent on the host’s
    stationery and RSVP’s are made to
    the host.
   Choose a time that is logical for the
    group that is attending.
                                        41
Small Group Solicitation Agenda

   Welcome and introductions.
   Breakfast, lunch or refreshments.
   Campaign presentation.
   Why your contribution is important.
   Thanks and distribution of packets.
   Adjournment.
    Each prospect leaves with a packet and pledge form. The
    host follows up via phone with each person who attends. For
    those who do not attend, the host contact them vial letter
    and phone follow-up.
                                                              42
Letter and Phone Follow-up
   Used in general phase only.
   Letter gives background information about the
    project, campaign and name of the volunteer who
    will be calling the prospect via telephone.
   Include a pledge card/form and return envelope
    should also be included.
   The letter can go out on the organization’s
    stationery or a sample letter can be provided to
    volunteers who prefer to send the letter on their
    stationery.



                                                        43
Campaign Completed

   Celebrate

   Donor communications and ongoing
    cultivation

   Donor recognition

   Build on momentum


                                   44
Gift Acknowledgement
   Develop a process and system that is
    manageable.
   Send thank you’s within two days.
   Reflective of gift:
       Under $100 - card/letter.
       Larger gifts - personal notes, phone call.
   Decide what is a “large” gift for your organization.
   Gifts of $250 require receipt substantiating that
    no goods or services were received.



                                                        45
Gift Recognition
   List in newsletter, annual report         (note: give
    donors option to make gift anonymously)
   Special briefings,etc… for “large” donors
   Recognition event
       Reception
       Dinner
       Annual meeting
   Low-cost gift, but be aware of gift
    substantiation regulations


                                                            46
    Year Round
Major Gifts Program




                      47
Who are Major Donors?
   The majority are 40+ years of age.
   They are experienced givers, maybe at
    lesser levels.
   They are usually religious and
    conservative.
   Women and People of Color are gaining
    prominence
   Price and File (1994) studied eight
    hundred individuals and developed seven
    basic profiles.

                                          48
   Donor Motivation
         Seven Faces of Philanthropy

The Communitarians (26.3%) Doing Good Makes Sense

The Devout (20.9%)         Doing Good is God’s Will

The Investor (22.5%)       Doing Good is Good Business

The Socialite (10.8%)      Doing Good is Fun

The Repayer (10.2%)        Doing Good in Return

The Altruist (9%)          Doing Good Feels Right

The Dynast (8.3%)          Doing Good is a Family Tradition


                                                              49
Why Do We Care? Transaction or
Transformation?

   Major gifts   validate a nonprofit
   Major gifts   inspire staff and volunteers
   Major gifts   provide the giver a legacy
   Major gifts   instill confidence in prospective
    donors
   Major gifts   raise the sights of other donors
   Major gifts   fuel fundamental change for the
    better




                                                      50
What Are We Going To Do ?

   Establish a highly functioning and
    dedicated team of volunteers to
    identify, cultivate and ask for major
    gifts
   Ask for multi-year (3 year) gifts to
    “seed” the major gifts effort
   Establish systems, protocols,
    processes that ensure success
   Utilize best standards and practices
                                        51
What Obstacles Might You Face?
   IT IS A BIG JOB!!!
   Internally                    Externally
       Systems                       Skepticism
       Protocols                     Misunderstanding
       Inertia                       Indifference
       Fear                          Provinciality
       Provinciality                 Economy
       Statistical Sparcity          Communication
       Time Management               Audience Influence



                                                        52
The Elements of Success

   Continuity of Effort      Customized
   “Winning” Image            cultivation and
   Ambitious Strategic        relationship building
    Plan                      Evaluate Results
   Cultivation through
    personal
    involvement




                                                 53
Getting Started
   Develop list of prospective volunteers and
    prospective donors
   Research prospects, recruit volunteers
   Train and orient volunteers
   Determine who will contact whom,
    develop approach
   Establish communication process (email,
    meetings, phone, etc…)
   Manage the process



                                             54
Memorials & Honorariums




                          55
    Memorial/Honorarium Program

   The Memorial/Honor Program allows donors
    to remember a loved one’s life, or to
    celebrate a special occasion – a birthday,
    wedding, anniversary.
   Acknowledgement to donor.
   Acknowledgement to honoree or family
    member (without dollar amount)
   Report properly in donor listings.



                                             56
    How Does the Memorial/Honor Program Work?


   When a memorial or in honor gift is
    received, a personalized tribute letter
    is sent to the person or family
    indicated, notifying them of the
    thoughtful donation but not revealing
    the amount of the donation.
   Each gift is tax-deductible and the
    donor receives an acknowledgement
    for their donation.
                                                57
    Memorial/Honor Donors are a Special Group


   They attach special meaning to their
    gifts.
   They are thoughtful.
   They are often loyal givers, making
    repeat memorial/in honor gifts.
   They have established an interest in
    the organization they support.


                                            58
Corporate Support



                    59
Types of Corporate Support

   Marketing – Cause Related
   Corporate Charitable Giving
   In-kind
   Loaned Executive/Employee
    Volunteerism
   Employee Matching Gifts
   Volunteer Involvement Funds
   Corporate Foundation

                                  60
Corporate Support

   Who to go to:
       Chairman of Board
       President
       Community Affairs Department
       Department Heads/VP’s
       Human Resource Director



                                       61
In-kind Support

    Employee Volunteers – on
     Committees, Board
    Loaned Executives
    Materials/Products
    Services
    Facilities
    Equipment
    Advertisement


                                62
   Donor
Communication



                63
Reasons for Donor Communication
   Notification
   Cultivation
   Solicitation
   Recognition
   Appreciation




                                  64
Types of Donor Communication

   Thank You Letters
   Newsletters
   Status Reports
   Phone Calls
   Personal Visits




                               65
Emily DiStefano, M.S., CFRE
      Emily DiStefano is the president and founder of DiStefano &
      Associates, a fundraising consulting firm. DiStefano & Associates
      provides essential services customized to meet the specific
      needs and challenges of non-profit organizations.
      DiStefano was a founding member of the Baton Rouge Chapter
      of the Association of Fundraising Professionals (AFP) and is a
      Certified Fund Raising Executive. Emily was selected by her
      colleagues as the Professional Fundraiser of the Year and is a
      past president of the chapter.
      Raised in Natchez, Mississippi, she earned her bachelor’s degree
      from Mississippi State University and received her master’s
      degree from Louisiana State University. She is a graduate of
      Leadership Baton Rouge, a past president of the Junior League
      of Baton Rouge and is a graduate of Leadership Louisiana.
      She and her husband, Bill Arey, have two adopted daughters
      Christina and Elizabeth.




                                                                       66

				
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