LCT Theater RoundTable PowerPoint

							             WELCOME
       League of Chicago Theatres
Emerging Theater Roundtable on Fundraising

               March 2, 2009

  E. Brooke Walters, Director of Major Gifts
       Steppenwolf Theatre Company
 bwalters@steppenwolf.org - 312-654-5601

              LCT RoundTable - Fundraising     1
  Introduction to Fundraising

Basic Types of Fundraising
  –   Annual Fund
  –   Special Event
  –   Corporate Giving
  –   Government Grants
  –   Foundation Giving
  –   Major Gifts




                 LCT RoundTable - Fundraising   2
                Invest in Philanthropy
               and Revenue Will Grow
                       Comprehensive Development Program
                       Active at Each Level of Donor Pyramid
                                                             PLANNED GIVING PROGRAM
                     DEFERRED
                       GIFTS

                      CAPITAL/
                    ENDOWMENT
                                                          SPECIAL/CAPITAL GIFTS PROGRAM
                       GIFTS

                 SPECIAL PROJECTS
                       GIFTS


               MAJOR ANNUAL GIFTS                             ANNUAL FUND PROGRAM
                                                                  •MAJOR GIFTS
                                                                  •OTHER GIFTS
          RENEWED AND UPGRADED DONORS

                                                          DIRECT MAIL/TELEPHONE PROGRAM/
                   INITIAL DONORS                                 SPECIAL EVENTS



                 ALL CONSTITUENTS                        PUBLIC RELATIONS/COMMUNICATIONS




Important at All Levels: Donor Cultivation and Recognition/Stewardship
                             LCT Identification/Evaluation/Research
                         Prospect RoundTable - Fundraising                                 3
      Why do individuals give?
• Mission of                     • Recognition
  organization                   • Career enhancement/
• Relationships                    political gain
• Family interests               • Tax deductions
• Religion                       • Social standing




                 LCT RoundTable - Fundraising        4
  The Annual Fund--What is it?
• Develops public awareness and
  understanding of the organization
• Stimulates unrestricted support
• Identifies new prospects for giving
• Upgrades current donors




                LCT RoundTable - Fundraising   5
        Types of Annual Funds
•   General Mailings
•   Email Solicitations
•   Phone Solicitations
•   Memorial/Honorary Gifts




                LCT RoundTable - Fundraising   6
                 Timing
• Calendar Year End
• Season Announcement/Subscription
  Renewal
• End of Fiscal Year




             LCT RoundTable - Fundraising   7
        Prospective Donors
• Ticket Buyers
• Subscribers
• Friends




                  LCT RoundTable - Fundraising   8
     Annual Fund Check List
• Organization Resources
• Organizing the Campaign
  – Timing
  – Solicitation List
  – Goal
  – Solicitor(s)
  – Acknowledgment
  – Measuring Stick/Reports

                LCT RoundTable - Fundraising   9
            Special Events
• How are they beneficial?
  – Educate a large group of people about the
    work of the organization
  – Favorable publicity
  – “Friend” raiser
  – Identify new annual campaign prospects




                LCT RoundTable - Fundraising    10
         Special Event Types
•   Galas
•   Raffle
•   Fun run
•   Auction
•   „Thons
•   Dinner
•   “Non-event”

                  LCT RoundTable - Fundraising   11
   Special Events Contributors
• Friends
• Annual Fund Contributors
  – Careful about timing of solicitations
• Mailing list
• Corporate Sponsors




                 LCT RoundTable - Fundraising   12
   Contacting the Event Patron
• Personal Invitation
• E-mail/Mail
• Media




                LCT RoundTable - Fundraising   13
     Corporate Fundraising
• Why do corporations make donations?
  – Employee interest
  – Good citizenship
  – Tax benefits
• Timing: Be Budget Aware
  – Budgets set up on a fiscal year basis
  – Funds allocated each fiscal year for the
    next year
  – Donations budget may be adjusted
    depending on the profit needs of the
    company
               LCT RoundTable - Fundraising    14
 Types of Corporate Donations
• Direct disbursement of funds from budget
• Product donations
• Matching contributions




               LCT RoundTable - Fundraising   15
    Corporate Donation Guidelines
•   501(c)3 status
•   Charitable mission
•   Timing of Request
•   Proposal form
•   Build strong relationship with giving office
•   Customer relationships.


                  LCT RoundTable - Fundraising     16
            501(c)3 Status
• Tax definition is crucial from corporate
  viewpoint
• Corporation expects tax benefit
• Proof will be required




                LCT RoundTable - Fundraising   17
      Mission of Organization
• Reason for being needs to fit with
  corporate guidelines
• Used in ranking of corporate gifts
• e.g. education, children in need, location,
  etc.




                LCT RoundTable - Fundraising    18
     Donation Timing Options
• Budget deadlines
  – Timing may be set by fiscal year
• First come, first served
• Any Trustee or volunteer connection to the
  corporation should be leveraged




                LCT RoundTable - Fundraising   19
        Format for Proposal
• In writing
• Some organizations may have specific
  format guidelines




              LCT RoundTable - Fundraising   20
         Government Grants
• Illinois Arts Council
  – Start with Program Grant Guidelines
• NEA (grants.gov)
• Department of Cultural Affairs (Google
  City of Chicago + Cultural Grants)
• CAP Grants – City of Chicago Technical
  Grants for Start-Up Companies

                 LCT RoundTable - Fundraising   21
              Other Tips
• Freedom of Information Act requires all
  information for government grants to be
  accessible.
• Follow grant rules to the letter
• Pay close attention to dates
• Be persistent and patient



               LCT RoundTable - Fundraising   22
      What is a Foundation?
• Organizations set up for public giving
• Managed by own board of directors/
  trustees
• Most have annual budgets for giving
• Most have specific giving guidelines
• Research through Guidestar or go to The
  Donors Forum

              LCT RoundTable - Fundraising   23
      Types of Foundations
• Family Foundations
  – Independent foundations formed after donor dies
    and original family withdraws from foundation.
• Corporate Foundations
  – Legal entity that some corporations set up
    with the specific purpose of handling
    charitable donations.
  – May have a specific interest area.
• Community Foundations
  – Funds come from a variety of donors


                 LCT RoundTable - Fundraising         24
    Role of Foundation Board
• Board of directors evaluates funding
  requests
• Requests usually in the form of grants




               LCT RoundTable - Fundraising   25
            Evaluation Criteria
•   Mission/Purpose of funds
•   Stated focus
•   Credibility of Volunteer Organization
•   Ultimate dispersal of funds
    – Used directly for programs or for operating
      funds
•   Timing
•   501(c ) 3 status
•   Proposal form
•   Strong relationship - Fundraising
                 LCT RoundTable                     26
    Guidelines for Grant-writing
• State your mission clearly
• Keep grants concise but answer questions
• Focus on beneficiaries of grant
• Get input from foundation and others in your
  organization
• Complete application form flawlessly
• Pay attention to evaluation criteria
• Address how project will be sustained long term

                 LCT RoundTable - Fundraising   27
 Common Reasons Grants are
        Declined
• Grant does not specify how the funds will
  be:
  – Planned
  – Scheduled
  – Controlled
  – Reviewed
• Does not include evaluation criteria
• Too ambitious in scope
                 LCT RoundTable - Fundraising   28
    Reasons Grants are Declined
           (Continued)
• Leaves too much to the imagination
• Poorly written
• Did not follow guidelines
• Inefficient evidence that the project can
  sustain itself
• Numbers in the budget do not add up.


                LCT RoundTable - Fundraising   29
        Major Gifts Definition
• A large gift given now
  – Non profit needs to define the dollar amount
  – Dependability offers growth potential, further
    fundraising, political power




                 LCT RoundTable - Fundraising        30
      Major Gifts‟ Complexity
• Time
  – Develop relationships with donors
  – Very personal solicitation
• Relationship building




                LCT RoundTable - Fundraising   31
        Major Gift Elements
• Donor Research
  – Internal Research
  – External Research
• Organization Leadership
• Monetary goals for prospects
• Cultivation
• Thank you!
• Recognition
               LCT RoundTable - Fundraising   32
 Training to Ask for the Big Gift
• Prepare a kit of materials for solicitors
  – Brief history
  – Achievement highlights
  – Need for request
  – Step by step outline for volunteers
• Practice asking for monetary gift
• Act it out

                 LCT RoundTable - Fundraising   33
      Donor Research Material
•   Magazines
•   Newspapers
•   Reference Books
•   Nonprofit Sources
•   Publicly Held Companies




                LCT RoundTable - Fundraising   34
Contacting the Major Gift Donor
• CEO/Director
• Board Member
• Volunteer




             LCT RoundTable - Fundraising   35