KERRY-ANN T. POWELL, ESQ.

Transcription

1 CEO and Founder of The Harvest Group BRIDGE TO EXCELLENCE NONPROFIT CONFERENCE The Martin Luther King, Jr. Memorial: A Case Study of Culture, Strategy, and Results presenter KERRY-ANN T. POWELL, ESQ.

2 The Martin Luther King Jr. Memorial Washington, DC Photo Credits: Gediyon Kifle

3 Photo Credits: Gediyon Kifle

4 FUNDRAISING OVERVIEW $127 million to build and dedicate 13 years to reach goal 20 fundraising tactics Direct Mail $1M per Year $90 Avg. Gift

5 WHY ARE YOU HERE? FINANCIAL SUSTAINABILITY FUNDING DIVERSIFICATION

6 WHAT FUNDING TACTIC ARE YOU CONSIDERING IMPLEMENTING? Corporate Giving Foundation Grants Direct Mail Online Giving Grassroots Cause-related-marketing (i.e. Pink Ribbon Yogurt) Crowdfunding Peer-to-Peer Fundraising (i.e. ALS Ice Bucket Challenge) Social Innovation Bonds Text donations Matching Gifts Donor Advised Funds Planned Giving Stocks and Bonds Affiliate Fundraising Google Grants Yahoo Search Real Estate Referral Special Events Many many more.

7 THE REASONS WHY GREAT IDEAS FAIL. - strategy - quantifiable objective NO - metrics - analysis - infrastructure - customized plan - Incompatible corporate culture - Sticking with old ideas - Selected a tactic because it is trendy

8 THE COST OF IMPLEMENTING WITHOUT STRATEGY Low Staff Morale Clients Do Not Get Served Opportunity Cost Programs Fail MONEY TIME Lack of Board Confidence NO IMPACT High Staff Turnover

9 Strategic Thinking The man who is prepared has his battle half fought - Miguel de Cervantes Spanish Novelist

10 The Benefits of Strategic Problem Solving How Successful People Think by John Maxwell Prompts You and Your Team to Ask the Right Questions Simplifies the Difficult Prompts Customization! Reduces the Margin of Error Prepares You and Your Team for Uncertainty? Gives You Influence with Your Team, Board, Donors, and Stakeholders

11 How to ensure that new fundraising tactics WIN PREPARE THROUGH STRATEGY FORMULATION UNDERSTAND THE ELEMENTS THROUGH ANALYSIS DESIGN THE BLUEPRINT DEVELOP THE INFRASTRUCTURE IMPLEMENT THE PLAN EVALUATE THE RESULTS & RINSE AND REPEAT

12 Step 1 Prepare through Strategy Formulation Organization Strategy Fundraising Strategy Funding Tactic Plan

13 Step 1 Prepare through Strategy Formulation Determining whether to consider a new funding tactic you must first consider both Organization s overall strategy. AND Fundraising strategy.

14 Step 1 Prepare through Strategy Formulation Washington, DC Martin Luther King Jr. National Memorial Project Foundation Organizational Strategy Build the memorial that honored the legacy of Dr. King on the most premium location on the National Mall, using the best materials, and the best practitioners in the shortest amount of time by leveraging resources to achieve fast growth.

15 Step 1 Prepare through Strategy Formulation Washington, DC Martin Luther King Jr. National Memorial Project Foundation Fundraising Strategy Raise $127 million to honor Dr. King s legacy in the shortest amount of time by leveraging all resources at our disposal, using high impact tactics, and going deep in order to maximize investment.

16 Step 1 Prepare through Strategy Formulation Washington, DC Martin Luther King Jr. National Memorial Project Foundation Funding Tactic Plan Any New Funding Tactic Must at least: Honor Dr. King s legacy Create High Impact Have the Ability to go Deep Have the Ability to be Leveraged

17 Step 1 Prepare through Strategy Formulation Funding Tactic Plan If a tactic has made it through the standards of your organization s strategy and your fundraising strategy it is a possible contender.

18 Step 1 Prepare through Strategy Formulation Your Organization What is the tactic you have implemented, will be, or are considering implementing? JUST ONE

19 Step 1 Prepare through Strategy Formulation Funding Tactic Plan Questions to Ask What is the tactic? What are the objectives for the tactics? What is the target audience? What are the expected expenditures? What are the expected financial gains? What are the quantifiable results? What are the non-quantifiable results?

20 Step 1 Prepare through Strategy Formulation Washington, DC Martin Luther King Jr. National Memorial Project Foundation Tactic: Direct Mail Objective: Target audience: Expected Expenditure: To raise $300,000 net and to increase individual Individuals donations who are passionate by 5,000, about Dr. King s legacy and have resources to donate $150 $500,000 Expected Financial Gains: Quantifiable Results: Non-quantifiable Results: $300,000 Dollars raised, number of donors, average gift. Increased awareness and popular support.

21 Step 2 Understanding the Elements Through Analysis Company Culture Organizational Infrastructure & Bandwidth External Factors Hierarchy Decision making Risk temperature Board Organizational Identity Trained Staff Technology Expertise Space Equipment Communication Existing Donors Industry Target audience Economic, political, and environmental factors

22 Step 2 Understanding the Elements Through Analysis Funding Tactic Plan Questions to Ask in Analysis What would have to happen for this funding tactic to meet our objectives? In the past has our infrastructure, company culture, and external factors been able to support the objectives of other funding tactics? Does our current infrastructure support the objectives of the plan? Does our current company culture support the objectives of the plan? Is there capacity to close the gap? Does our current company culture support the objectives of the plan? Do the external factors support the objectives of the plan? What is the gap between what needs to happen and where we are? Is there a will to close the gap? Do the expected financial gains, quantifiable and non-quantifiable results justify closing the gap?

23 Step 2 Understanding the Elements Through Analysis Washington, DC Martin Luther King Jr. National Memorial Project Foundation Tactic: Direct Mail What would have to happen for this funding tactic to meet our objectives? In the past has our infrastructure, company culture, and external factors been able to support the objectives of other funding tactics? Does our current infrastructure support the objectives of the plan? Does our current company culture support the objectives of the plan? Do the external factors support the objectives of the plan? What is the gap between what needs to happen and where we are? Is there a will to close the gap? Is there capacity to close the gap? Do the expected financial gains, quantifiable and non-quantifiable results justify closing the gap?

24 Step 2 Understanding the Elements Through Analysis Your Organization What elements within your company culture, organizational infrastructure and bandwidth, and external factors do you know support the tactic and which ones do not?

25 Step 3 Design the Blueprint Elements to Effective Design Designing the Blueprint is a thinking game. Leverage expertise. TOTAL Collaboration wins the day.

26 Step 3 Design the Blueprint Steps to Effective Design PUDDIE 2 Consider the objectives Gather expertise Generate Ideas Identify Criteria and Specify Contraints Revisit Elements of the Analysis Stage Explore Possible Solutions Choose the Best Solution Create a prototype Test and Evaluate the Design Using Specifications Refine the Design

27 Step 3 Design the Blueprint Steps to Effective Design Washington, DC Martin Luther King, Jr. National Memorial Project Foundation Tactic: Direct Mail Worked with a vendor Considered the financial objectives and marketing objectives Generated Ideas as to what type of copy, how often to send, to what lists, who would sign, how many tests. Chose the 3 best copy Tested 3 signatures Determined certain lists Built story boards and colors What elements from analysis need to created, buttressed, or eliminated Test Determined the ones we would use What systems to us for measuring results Who is best suited on the team to manage, execute, and deliver.

28 Step 3 Design the Blueprint Your Organization What expertise do you need to leverage or should you have leveraged within or outside of your organization in order to design the blueprint of your chosen tactic?

29 Step 4 Develop the Infrastructure Elements to Effective Development Development is the bridge between Design and Implementation. Do not skip this step. Leverage expertise. TOTAL Collaboration wins the day. It is not over until ALL systems are in place.

30 Step 4 Develop the Infrastructure Steps to Effective Development Build out the tested prototype. Procure the needed technology. Attain necessary expertise. Train staff. Buttress or attain physical space and equipment. Create systems from front end to back end. Develop a protocol for decision making. Develop the system for tracking metrics. Develop plan for launch to the entire organization. Test.

31 Step 4 Develop the Infrastructure Chose Raiser s Edge as our software Washington, DC Martin Luther King, Jr. National Memorial Project Foundation Trained all fundraising staff on RE in various levels. Trained finance and accounting staff. Selected one staff person on development team to own direct mail. Developed a weekly reporting system. Determined acknowledgement protocol and created system. Collaborated with public relations and marketing. Created systems of various payment forms. Secured fulfillment company. Developed system for unusual situations.

32 Step 4 Develop the Infrastructure Your Organization What systems do you need to develop or buttress in order to support your chosen tactic? or What systems should you have developed or buttressed in order to support the tactic?

33 Step 5 Implement the Plan 95% of employees do not understand how their day-to-day activities contribute to the strategy set by leadership. - Harvard Business Journal THE REASONS WHY GREAT PLANS FAIL.

34 Step 5 Implement the Plan Steps to Successful Plan Implementation Leadership must Cast the vision and inspire. Articulate the objectives and priorities. Reiterate timelines. Focus on the first 90 days. Introduce the team and person who owns the tactic. Be visible throughout. The team must Execute the design plan and not implement on the fly. Use checks and balances to determine progress. Track performance and results against objectives. Course correct. Design is cognitive. Implementation is kinetic.

35 Step 5 Implement the Plan What we did right: Reiterate timelines for pilot and full implementation. Execute the design plan and not implement on the fly. Use checks and balances to determine progress. Track performance and results against objectives. Course correct. Washington, DC Martin Luther King Jr. National Memorial Project Foundation Tactic: Direct Mail Where we went wrong: Initially only development team and senior finance and accounting team knew. Initially we did not communicate the objectives and priorities. Initially did not introduce the team and person who owns the tactic.

36 Step 5 Implement the Plan Your Organization What barriers to effective implementation of the funding tactic plan do you foresee or existed?

37 Step 6 Evaluate the Results & Rinse and Repeat the Plan Elements to Effective Evaluation Consistent evaluation is a must even within the implementation stage. When implementing a new tactic decide on a non-negotiable evaluation date. Evaluate results based on objectives determined in strategy formulation. Just because a funding tactic plan did not hit the objectives does not mean it failed. TOTAL Collaboration wins the day. Adjust and Repeat.

38 Step 6 Evaluate the Results & Rinse and Repeat the Plan Questions to Ask during Evaluation Are goals and objectives being achieved? Why? Why not? Will the goals be achieved according to timelines specified in the plan? What components of the plan are working and which ones are not? What can we learn from the results? If the goals aren't being achieved which stage of PUDDIE 2 needs to be addressed? Are the goals and objectives still realistic? Are we executing and implementing the plan fully? How can we adjust and repeat? Is this a tactic that we want to continue using. - CAUTION!

39 Repeated it again and again for 6 years. Step 6 Evaluate the Results & Rinse and Repeat the Plan Washington, DC Martin Luther King Jr. National Memorial Project Foundation Tactic: Direct Mail During the pilot leadership and team reviewed results weekly. 90 days in full evaluation. My team member who owned the tactic would review with the vendor weekly. He would bring to my attention any unusual movement. I would review every other week is nothing unusual. I would brief my CEO and CFO monthly if nothing was unusual immediately if unusual results. My CEO would brief the board quarterly and board chair more regularly if necessary. Consistent review, adjustment, and implementation.

40 Step 6 Evaluate the Results & Rinse and Repeat the Plan Washington, DC Martin Luther King Jr. National Memorial Project Foundation Tactic: Direct Mail Funding Tactic Results 6 Years Multiple solicitations $1 million per year net average $90 average gift Approximately 70,000 Founding Sponsors

41 Step 6 Evaluate the Results & Rinse and Repeat the Plan Your Organization What barriers to effective implementation of the funding tactic plan do you foresee or existed?

42 A good plan violently executed now is better than a perfect plan executed next week. - George S. Patton

43 Questions and Answers