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									                      Creative Spacemaking is presented by
                            Calgary Arts Development.

Creative Spacemaking is a component of the Artscape Knowledge Exchange Program,
               brought to you by TD Bank Financial Group.
Capital Fundraising

             Presented by:
             Billie Bridgman
             Bridgman Associates

             Bridgman Associates, 2009
Capital Campaign Pre Planning

   Start thinking fundraising when you start thinking project

   Fundraising analysis, goal setting and the timing of the campaign should develop in
    lockstep with the project – not after the design is complete and the capital budget is set

   Look for partner communities – “two birds with one stone” – ie. historic preservation /
    cultural use

   Involve others in the visioning – buy in early

   Consider anchor tenants / development partners

   Schedule feasibility stage before final project budget is set

   Decide on / recruit a preliminary planning team

   Hired Help: someone else can facilitate your plan but you have to plan it and steer it to
                                   Bridgman Associates,2009                                      3
Capital Campaign Pre Planning

Start Early: Research
 Research other campaigns (local and outside the community) for ideas,
     conflicts, successes and failures potential, volunteers, campaign professionals

    Scan of grant sources & deadlines: what funds are available for what aspects
     of the project (studies, capital, equipment, staff training)

    Do preliminary market testing - informal interviews (advice) across “inner
     circle community” and target partnering sectors (corporate, foundation, large
     individual supporters, smaller individuals supporters)
      WARNING – keep discussions vague

    Co-ordinate early (and often) with anchor tenants and project partners

    Draft a preliminary strategy / approach / positioning
                                Bridgman Associates,2009                               4
 Capital Campaign Pre-Planning

Internal Considerations

   Interface with ongoing management
         Current funding partners – potential to grow existing, need / potential to add new
         Staffing - what talent do you need to add - which consultants & when
         Governance – two Boards? - how do they interface
         Cash flow: ensure bridge financing in place until Campaign funds are available (multi
          year pledges, end of year cheques)

   Timing with
        Seasonal operations
        Design / build project schedule
        Ongoing company events’ schedules
        Needs of future operations – human resources, financial
         •   How much will it cost to run the new operation, how will you build your
             operations budget to that level by the time you open

   Establish Steering Committee until Campaign structure in place
                                   Bridgman Associates,2009                                  5
Capital Campaign Pre-Planning

External Considerations

   Competition – who else (cultural and otherwise) has a capital campaign in
    planning, or launched - can they help or hinder?

   Public – audience, press, colleagues, neighbours

   Funding/grants deadline schedule – what types of funds need to be in place to
    attract other funds

   Political & economic factors – local, regional, national

   Local social climate

                               Bridgman Associates,2009                             6
Capital Campaign Pre-Planning

Project Considerations

   Plan naming opportunities during the design process

   Ensure fundraising needs considered /included in design materials creation
    (visuals, maquette, resources for presentations)

   Integrate fundraising timeline into project schedule for reality checks and
    production of recognition program

                                Bridgman Associates,2009                          7
Preliminary Analysis

   Know expectations of funders – ie. government sources - fundraising must often
    meet a proportion of the budget in relation to government commitments

   Start with what is reasonable to expect to raise (not what you need) given your
    history, team, timeframe, size of project/budget

       Who might want to partner & why
       Slice & dice those categories - cross reference private, corporate and
       Which subsections do we have the strongest relationships with – focus
        expectations of support where you feel most confident – many smaller
        partners may be easier in the end than one large naming partner.
       What is a reasonable expectation from each type / category of partners

   Contrast with what you need – rethink targets, rethink project, expand your

                                Bridgman Associates,2009                              8
Preliminary Campaign Strategy

Develop preliminary campaign strategy including:

   Positioning: language, “pitch”, comparative rationale (why your project as
    opposed to or in addition to others’);
   Benefits: to you, to communities of interest, to everyone you plan to draw in
   Funding: sector by sector breakdown, target expectations and
    benefits/recognition analysis
   Draft campaign timeline
   Draft campaign budget including costs of operations staff charged against project
   Resource analysis
     Staff, volunteers, consultants
   Draft marketing plan, materials summary

                              Bridgman Associates,2009                             9
Campaign Governance –
more masters, more tasks

   Going from one to three parallel channels
       Capital project
       Ongoing operations
       Future operations planning
   All need to be planned together
   Require different skills, knowledge, expertise
   Need to plan to overlap and intersect – what will take priority when?

                              Bridgman Associates,2009                      10
Campaign Governance:
operations versus campaign

 How does the campaign intersect with:

    Current staff work load
    Yearly budgeting and cash flow
    Ongoing operational fundraising
    Board recruitment
    Communications
    Relationships with ongoing funders
    Administrative space
    Colleagues (your community)

                            Bridgman Associates,2009   11
Detail the inter-relationships

   Define any new legal entities
   Define inter-relationships
     Relationship of Board to Campaign Board (often called Cabinet to avoid
     Relationship of campaign staff to staff
   Overall reporting structure
   Staff responsibilities vs project team
   Decision-making processes
   Communication between team and ongoing management
   Financial management:
     Project reporting
     Project cash flow

                             Bridgman Associates,2009                          12
Campaign team characteristics

    Campaign Staff
      Project oriented – not routine
       Key expertise unlikely to be on staff
       Hire appropriate talent on contract

    Campaign Board & Committees
      Project oriented, not long term
       Campaign staff report here
       Recruit specific talent you can’t afford to hire
       Need a stomach for risk
       Representative of short term and long term stakeholders
       Broad based, builds confidence in the community
       Fundraising expertise/connections
       Interfaces: operations, other campaigns, political levels (City Hall)
    Design your Campaign Team as carefully as you design your building
                                Bridgman Associates,2009                        13
Building the Team

   Develop preliminary org chart integrating operations and campaign
   Create job descriptions and then fill them
   Assess internal staff capabilities, interest and workload
   Recruit Campaign Chair and Campaign Director before the target and the
    strategy are confirmed – they have to commit to raise it
   Make sure the person with the closest relationship connects with the potential
    partner – not the person in charge
   Always send two people – the connector (where applicable) and the sales
   Remember – this is sales – the best sales person, should lead the meeting

                              Bridgman Associates,2009                               14
The Critical Relationship

   Define qualities / experience you need in a Chair

   Define qualities / experience you need in a campaign Director

   “Another man’s poison”
     This is the most important relationship – if it doesn’t work, the campaign
        will falter
       These individuals need to choose each other

   THEY must work well together

        Requires a shared sense of purpose, clarity of roles, personal
               commitment and complimentary working styles.
                              Bridgman Associates,2009                         15
The Feasibility Test

Test your strategy: commission feasibility / campaign
strategy study to provide:
 Confirmation of target funding sources, tested (and adapted) individual
      approach strategies, order of sub-sectors, funding level expectations, detailed
      benefits analysis
 Campaign timing and dependencies
 Campaign timeline co-ordinated with design/build schedule
 Cash flow projections (financing requirements)
 Staffing / volunteer requirements, org chart
 Campaign budget
 Communications plan
 Materials recommendations
 SWOT analysis
 Fall back position recommendations
 Recommendations for changes to plan
                                Bridgman Associates,2009                                16
Confirm Campaign

   REMEMBER: Feasibility is a relative word. The feasibility study is a measure
    of how easy or difficult your strategy could be. Not whether it will work.
    Making it work is your job.
   Based on results of feasibility, adapt and confirm campaign objectives and
   Be ambitious in intent and cautious in expectations
   Adapt design/build if necessary
     Cut budget
     Phase project
     Add partners
   Build in fall backs
   Build regular re-assessment milestones into project plan to do this exercise

                             Bridgman Associates,2009                         17
The Campaign Philosophy:

   Partnerships involve the exchange of goods or services with real value

   Partnerships grow each partner’s area of interest: they enhance reach, offer new
    marketing opportunities, broaden the business – the work, the customer / social
    base, benefit a larger community

   Partnerships are expected to produce measurable results as well as more
    intangible effects – plan how you will measure and demonstrate your success to
    every partner

                              Bridgman Associates,2009                            18

   Partnerships are relationships – they are not “one night stands”

   Partnerships exist for “greater than the sum of the parts” impact

   Partnerships are two-way streets which entail:
     Communication
     Co-operation
     Creative development
     Assessment and
     The engagement of both parties in the process.

                              Bridgman Associates,2009                  19
Partnership is Based on Value

   Defining value begins with “speaking to where your audience is listening
     Demonstrating value involves positioning your activities within the realm
        of what is important to them

   Building partnerships means demonstrating value to each “listener”:
     Political: local, provincial, national, international
     Economic: individual businesses, regional economic development,
     Social: health, social services, youth, education,
     Cultural: arts, design, historic preservation, multi-cultural

                             Bridgman Associates,2009                         20
What do you need?

   Know your objectives: why are you doing this – have a solid case and support
    it detailed data

   Aside from cash, what could you ask of a partnership which has real value
     Goods or services in-kind (must hit bottom line or enhance opportunities)
     Door opening, introductions
     Endorsement

   Capital dollars are one time but they create long-term, multi-year
    relationships – develop opportunities to build on the capital investment

                               Bridgman Associates,2009                        21
Why your project?

Analyze your value from every perspective:

   What are all the ways this project will / could contribute – this may suggest
    new potential partners
     Consider everything (not just the building project) - an event or project,
         a space, an aspect of your operation, an opportunity outside of the
         organization which you can leverage, echo benefits
   Will anyone suffer / lose: is there is an aspect of the community to which you
    don’t contribute or your that detract from – should you change the project to
    address that
     What is your unique value, why you rather than any other? Duplication is
         hard to support
   Build alliances: complementary compounds value
   What opportunities would the community lose if this did not go ahead?

                              Bridgman Associates,2009                           22
 Positioning your value

 Position your value: the same element of a project may bring different
  value to different parts of the community

 Have examples to adapt and share - look for success models - what was
  done, why was it successful

 Your value versus your “competitors’ ” – other campaigns, other
  non-profit sectors, newspapers, media, other events/partnership
   How do your “prices” and benefits compare?
   Why should they do both?

                            Bridgman Associates,2009                   23
Arts / Non-Arts Consumers

          All Canadians, aged 12+ =100%

                                                               Arts and Sports

                                                               • reach different
                 Arts            18%        19%
                patrons                    Sports                audiences
                 33%         33%            Fans               • overlap very

                        Neither = 30%

     Source: Focus on the Arts, research conducted by Ipsos Reid and the Council for
     Business and the Arts in Canada

                        Bridgman Associates,2009                                 24
Who would value those things?

   Assess the benefits (both tangible and intangible) you can offer each type of
   Consider natural alignments or synergies
   Consider every prospect in your community
     Local businesses nearby - retailers, restaurants that would share
         customers; small and medium sized businesses with similar customer
         bases; regional offices of larger companies with community interest
     Social / community connections – foundations, clubs, social service
         agencies or other associations with connecting / mutual interests, hospitals
         & schools
     Personal connections – start close to home

                               Bridgman Associates,2009                             25
Securing Partners

   Think like them – what will be important to them

   Take every opportunity to get a face-to-face meeting

   Talk in terms of value & benefits, create an open dialogue

   Listen, be flexible, ask what they need, what are their dreams or ambitions,
    customize your approach and proposal

   Think local, act locally

                               Bridgman Associates,2009                            26
Government Drivers

Economic Impact

   Culture in Canada provides an economic impact at as much as 12x the level of
    public or private sector investment

   The maximum impact is generated at the induced level – out where everyone

   The real beneficiaries of cultural investment are Canadian communities
                                                         The New York Babysitters…
   Create a local example of economic impact

                             Bridgman Associates,2009                           27
Economic Impact:
Return on investment for
143 performing arts companies
                                             Quantified Economic Impact of
    Public/Private                           Investment
    Arts Investment                      Multiplier effect – estimated to be 2X all spending
    $ millions, 2004                     attributed to the arts (i.e., spending by arts institutions
                                         and tourist spending)

            Assuming 1.25% of tourism is attributable to the
            arts and that 1% of that can be tied to this sample

                                                                              856 1.284

         101            105         206                        215     7

         Public        Private       Total public/      Direct        Indirect Induced   Total
         Funding       Funding       private            Benefits – benefits benefits     benefits
                                     funding            tickets, etc.

                                           Bridgman Associates,2009                                    28
 Sources: McKinsey analysis; Business for the Arts 2003 data
           Induced benefits are estimated to be $856M based on the
           “multiplier effect’ of arts-related spending.
           Multiplier effect of arts spending in Canada

                                                                                                                     2/3 of the direct arts
                                                                                                                     spend is ‘rippled’ through
                                                                              Spend on                               the Canadian economy
                                                              38%             supplies

                                                         42%                  Spend on 80% Disposable 86%                   Personal
                                                  arts                        wages        income                                  =
                                                                                                                            spending 29%

                                                               20%            spend          20% Taxes               14% Personal
   Arts-related revenue causes
    incremental economic activity
    amounting to 2/3 of the
    original benefit
                                              Assumptions                                                Induced spend
   This sparks a ‘ripple effect’ in             38% of   firms’ spend is on supplies                          1
    the economy – total induced                  42% of   firms’ spend is on wages                      1 – 0.38 – 0.29    - 1 X direct spend
    benefit multiplies to 2/3 of the             80% of   wages are disposable income
                                                 86% of   disposable income is spent                      = 2.0 X ($206 + $215 + $7)
    2/3 of the 2/3, etc.
                                                                                                           = $856 million

                                                               Bridgman Associates,2009                                                 29
    Source: CBAC Annual Survey of Performing Arts Organizations, 2003-2004; CBAC Annual Survey of Public Museums &
    Art Galleries, 2003-2004; Statistics Canada; team analysis
Social / Community Drivers
Building Community

For society in general                          5. Allows new Canadians
                                                   expression in their own
1. Allows Canadians to express, share and
   recognise their identities – building social
   capital and community engagement,
                                                6. Promotes community
   supporting multiculturalism
                                                   development, urban renewal
                                                   and citizen engagement
2. Offers important intersection points for
                                                7. Provides opportunities to
3. Enhances the draw of communities to
   valuable business talent
                                                8. Crosses economic, age, social
                                                   and ethnic borders
4. Strengthens the education system

                           Bridgman arts provides
                An investment in theAssociates,2009 significant benefits to society…
Business Drivers

   Branding & Differentiation – the lawyer
     Associating the brand with emotional and personal experiences
     Associating with something unique, quickly identifiable

   Awareness & Visibility
     A potentially cost-effective means of reaching target consumers and
       community members

   Changes and reinforces the business image and attributes
     Create, change or reinforce an image

   Drives retail traffic and/or sales –the BIA
     Sales promotions and awareness building

                            Bridgman Associates,2009                        31
Business Drivers

   Client entertaining – the accountant
     Differentiated, unique, high-touch experiences

   Community social responsibility
     Opportunities to offer and demonstrate local support

   Niche marketing
     Direct access to a specific audience

   Employee engagement - Aeroplan
     Team building, incentives, rewards and recognition, engenders pride

   Incents retailers and dealers
     Motivating sales teams, securing product placement

                            Bridgman Associates,2009                        32
Individual Drivers

   Opportunity to contribute to the community

   Opportunity to expand social network: new to community, meet different strata
    of community

   Need to be there - element of competition

   Naming opportunity: lasting record, used as memorial

   Build career: opportunity to move personal agenda forward: business, political
    or social aspirations - pairing up with another social / non-profit organization
    or issue

                              Bridgman Associates,2009                            33
The Best Partnerships are based on

   Mutual respect between equals

   Real engagement

   Real co-operative programs/projects - not just cheque in and then check out

   A real value proposition for both sides

   It is not about doing favours

   It is not about “asking”

                               Bridgman Associates,2009                           34
In short….

   Be clear about the timetable
   Sell what can be sold for what it is worth, not what it costs
   Know the benefits but be flexible
   Be precise and consistent
   Don’t offer something you can’t deliver
   Keep thinking about your partner’s needs
   Base your approach on benefits and value to them
   Communicate frequently - manage expectations – things change in capital
   Deliver on all of your promises – do more rather than less
   Remember the objective:

                            Bridgman Associates,2009                          35
Two sure fire roads to malfunction

    Lack of communication

    Lack of clarity around authority
        Who makes which decisions & who is in on it
        What is the decision tree – where which questions go
        Who works for whom, doing what
        How the whole works together

                              Bridgman Associates,2009          36
Potential People Pitfalls

   Wet blankets – squelchers

   Micro managers

   Bureaucratic handcuffs

   Capital project “willies”, fence sitters and back peddlers

   Entrenched ideas – “we always do it this way”

   All things to all people – moving target of objectives, not knowing when to say

                                Bridgman Associates,2009                         37
Final thoughts

   Your size need not limit your ambitions

   The kind of project and the model of organization doesn’t have to determine
    or limit your choices for staff and board

   Design a Campaign which allows you to connect your project with as many
    public purposes and sectors of society as possible

   Vision is the glue that binds

   Planning smoothes the road

   Leadership stays the course

   Teamwork gets you to the finish line

                              Bridgman Associates,2009                            38

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