The Capital Campaign before, during, and after

Transcription

1 The Capital Campaign before, during, and after Betty Johnson, CFRE Betty Johnson & Associates AFP Mid-America Conference on Fund Raising May 6, 2013 Wichita, Kansas Today s outcomes Learn about the donor and the development process The role of staff and volunteers in development The purpose of the feasibility study Learn about capital campaigns Tips, ideas, discussions to enhance your development activity Where will the money come? Total giving for 2011 more than $291 billion Corporations 5% Foundations 14% Individuals 73% Bequests 8% Giving USA

2 Why do people give? Religion Recognition Guilt. Fear. Anger. Obligation Compassion Have been personally affected Involvement. Belief in work. Want to give back Respect and trust in organization Tax benefits They want to make a difference to change a life. What types of organizations do donors support? Organizations with a mission/vision Sound financial practices Respected staff and volunteers Board members financially support organization Meeting a need making a difference Strategically positioned Information provided progress, how dollars are spent Pyramid of giving 2

3 Pyramid of giving Planned gifts = $$ millions Major gifts = $$ thousands Annual gifts = $?,000 or $?00 Donor facts Our best donors are our current donors. It s easier to keep donors than to find new ones. It s cheaper to retain current donors than to acquire new ones. Annual-giving donors become major-gift and/or planned-giving donors. What are the components of a development program? Annual giving Special events Corporations/foundations Major gifts Planned giving Capital campaign 3

4 Who is responsible for the development program? Staff Board It s a team effort Team effort + Written plan + Communication + = SUCCESS The purpose of a capital campaign To make your organization s dream a reality. Steps of a capital campaign Identify your organization s dream Determine the project Conduct a campaign planning study Do the capital campaign Planning Quiet phase Public phase Celebration The dream becomes reality 4

5 The dream The project details Cost Board approval The dream The project details Cost Board approval How do we know if we can make it a reality? The campaign planning study Campaign planning study Independent study with confidential interviews of key individuals conducted by a consultant Evaluates the probability of a successful campaign Identifies leadership and volunteers Measures the climate for the capital campaign effort Identifies strengths and concerns Seeks advice from donors, friends, and prospects Begins the cultivation process (education) Determines financial support for the campaign Creates the road map for campaign success Conducted by a consultant 5

6 The campaign planning process Hire a consultant to conduct the study Create the case statement the project Finalize the participants list Make the appointments Conduct interviews Analyze the comments Prepare report Board votes to conduct a capital campaign or not depending on study results The campaign planning process (continued) All interviews conducted by consultants All comments are confidential to assure candor Interviews will take about an hour All materials presented to participants are approved by the organization Participants from diverse circles of influence and affluence The campaign planning process responsibilities Organization responsible for: Assisting with creation of case statement Finalizing list of study participants Approving all materials Scheduling appointments for interviews 6

7 The campaign planning process - responsibilities Consultant responsible for: Creating a timeline for the study usually 3-4 months Drafting materials for the study Maintaining the confidentiality of the organization and the study participants Operating ethically Conducting the interviews Preparing a written report and presenting to organization Purpose of the capital campaign To raise significant dollars in a concerted effort During a specified time period For generally non-recurring needs Relies on large leadership gifts from committed donors to set the tone and raise the sights of others How does a capital campaign affect an organization? Increases the awareness/exposure Increases annual giving over the long term Enhances the organization s capacity to raise major gifts for other projects Increases board s time and financial commitment to organization Enhances volunteer activity and recruitment Grows the organization and builds confidence for future project 7

8 The board s role in a capital campaign Endorse the campaign effort wholeheartedly Support the campaign financially with 100 percent board participation Participate in the campaign effort in some capacity Final approval with staff on all aspects of the campaign Increase time commitment Confidentiality Give time, insight and support to development Identify donor prospects Cultivate donor prospects Steward donors The staff s role in a capital campaign Provide leadership to the campaign effort Participate in the campaign effort Prepare volunteers for their role in the campaign Coordinate and oversee the campaign activities Oversee campaign budget Use volunteer time effectively and efficiently Final approval with board on all aspects of the campaign The consultant s role in a capital campaign Work with staff and volunteers to complete a successful campaign Provide guidance and experience to organization Create a campaign plan the strategy for success Create a timeline Determine the readiness of the office operations Secure final approval from staff and board on all campaign activity Train and coach staff and volunteers Assist with creation of campaign materials Ensure appropriate donor recognition is implemented Counsel organization throughout the campaign and prepare for post campaign 8

9 The campaign goal Set on the ability to raise dollars campaign planning study results Must be approved by the organization s leadership Set as high as possible to meet needs Set relative to viable potential prospects, leadership gifts Lead gifts will set the pace 90/10 rule Board and leadership must set pace with stretch gifts Include endowment to provide sustainability of project Should not include planned gifts Include campaign budget expenses usually 5 to 15% of campaign goal The capital campaign Planning Silent phase Public launch Celebrate success Capital campaign - planning Board and volunteer leadership Is it what you need for development? Are members educated about development and their roles? Do they understand the importance of private dollars to your organization? Is your board supporting your organization financially? 9

10 Capital campaign planning Internal Development committee in place? Policies and procedures adopted? Data base in use? Infrastructure / systems to support? Capital campaign planning External Does the campaign support your mission /vision? Is the leadership respected and committed? Compelling plan? Donors capable and interested? Capital campaign planning Donor stewardship Stewardship active? Active donors? Giving clubs? Naming opportunities? Gift recognition? Set guidelines for staff and volunteers to insure consistency Use to encourage gifts Insure stewardship will continue post campaign 10

11 Capital campaign - silent phase Building support Inner circle educated solicited committed to project Broadening that inner circle Capital campaign - public launch Typically 50% of funds raised (or more) Public event held Press releases media campaign Visibility Keys to a successful campaign Strong, compelling case Leadership commitment time and money Stakeholder driven effort Leadership gifts Organized, planned approach for complete campaign Appropriate committee Specific gift requests Campaign atmosphere Commitment Consultants 11

12 Capital campaign - campaign consultant Brings experience Increased options Independent authority Objectivity Strategic thinking Accountability Results times more $ were raised with a consultant Fundraising rules Experience has proven 85% will come from individuals not corporations/foundations 80-90% time must be spent on individuals 90/10 rule Board members must financially support organization Can t just go after wealthy people Promote outcomes not means Strangers seldom give Story telling is important of message Why is it hard to ask? Fear of rejection Pressure to raise dollars Reflection on our solicitation skills Reflection on our organization Lack of confidence, experience and knowledge 12

13 Why the ask may not be successful Basic trust between donor and organization was not established Inherent values of the nonprofit s mission, vision & services were not clearly told Disconnect between the donor s interests & the organization Organization failed to instill a sense of urgency A successful gift Timing was right for the donor Project/ask was right for the donor a good match The ask was specific and appropriate A good connection/relationship between the donor and the organization Tips Know your prospects and their needs Establish long-term relationships Maintain a professional appearance Acknowledge the length of the meeting and stick to it Tell the truth. Be sincere. Eye contact and body language Sell outcomes, not features Listen. Adjust as needed. Restate what they have said use their words 13

14 Tips (continued) Ask for the gift Ask for a specific amount or range Ask big. You can always negotiate. Be flexible Don t leave without an action Complete the follow-up Tips (continued) Believe in yourself. Be confident. Believe in the project. Know it and the organization. Prepare Role play List questions. List strengths. Be yourself Keep cultivating, thanking, and involving Have fun Betty Johnson & Associates c o bettyjohnsonassociates@yahoo.com 14