2007/8 ORGANIZATION FUND DEVELOPMENT PLAN

Presented to the Board of Directors October 3rd, 2007 by the Planning Team: BOARD MEMBER BOARD MEMBER EXECUTIVE DIRECTOR Ron Milam

Process of Creating the Plan ORGANIZATION is a membership-driven organization dedicated to engaging LOCAL residents in a leadership development process to provide them with the tools to improve the quality of life in their community. Beginning in June, ORGANIZATION recruited a fund development consultant to facilitate a fundraising planning process for its Board and Staff. The process began with a development audit that identified the organizations fundraising strengths, as well as areas in which it could grow. The beginning of the process also included a Leadership Survey in which board members and the Interim Executive Director shared their vision of ORGANIZATION as an organization, highlighted its strengths, how discussed how they would make the case for ORGANIZATION, including what each sees as the best methods to go about fundraising for the organization. Information from the development audit and these surveys informed this fund development planning process. A planning group was also established consisting of the Interim Executive Director, EXECUTIVE DIRECTOR, Board members BOARD MEMBER and BOARD MEMBER, and Ron Milam, the Development Consultant. EXECUTIVE DIRECTOR and Ron Milam also met weekly to discuss the development of the plan. This plan is also a product of the several planning sessions this group participated in. The primary challenge facing ORGANIZATION is that of funding; specifically, in order to continue to fulfill its mission, the organization needs to diversify and increase its funding sources. In years past, ORGANIZATION has been successful at fundraising from some of the most competitive foundations in Los Angeles. However, with over 90% of the organizations funding coming from foundation sources, ORGANIZATION is potentially at risk should these foundations withdraw their support, which could occur for a variety of reasons (stock market downturn, change in funding priorities, strong competition from other non-profits, etc.). Even if there is no short-term change in fundraising, over time, ORGANIZATIONS core funders will likely turn over, leaving the organization without a strong support base.

The best organizations reflect their values and philosophy in their fundraising. Just as ORGANIZATION succeeds through a leadership-centered approach in its organizing program, ORGANIZATION will employ a donor-centered approach in its fundraising. Each prospective funder needs to be treated and approached as a potential leader. Undoubtedly, after reading this plan, some Board Members will come up with new ideas and strategies not mentioned here that they might wish to take the lead on. This plan identifies several new and existing sources and outlines strategies for successful identification, cultivation and solicitation. To ensure this plan is implemented, a joint effort must be made between the staff and board of ORGANIZATION. The Action Plan presented in the appendix lists concrete actions for each of the ten strategies identified by this plan. Each action item is accompanied by a projected timeline highlighting when the action needs to be completed, as well as a listing of who is responsible for carrying out the action. Working together will play a key role in ensuring ORGANIZATION meets its fundraising goals.

Executive Summary 10 Strategies the Planning Team recommends

Build Upon ORGANIZATIONs Fundraising Success: Foundation Giving 1. Grantwriting - Steward old donors and solicit new donors Diversify ORGANIZATIONs Fundraising: Individual Giving 2. 100% Board Giving and Getting 3. Host Open House Event 4. Host Fundraiser Event 5. Engage ORGANIZATION membership and staff in fundraising 6. Follow up with donor prospects (with a call, letter, meeting and/or tour) Build ORGANIZATIONs Fundraising Infrastructure 7. Establish Board Development Committee 8. Launch Fundraising Database 9. Renew ORGANIZATIONs core written materials & website 10. Continue Interim Executive Director Coaching Appendix a. Action Plans to document who is responsible, whats to be done, when and how long it will take to implement these strategies b. Cultivation Strategies c. Fund Tracking System d. Overview of the Fund Development Planning Process e. Sample Board Development Committee Write-up f. Sample Board Giving Policy g. Detailed information on potential funders h. Development Audit for ORGANIZATION

Fund Development Strategies

2007/8 Fundraising Goal: $232,000 July 1, 2007 to June 30, 2008 Build Upon ORGANIZATIONs Fundraising Success: Foundation Giving 1. Grantwriting Steward old donors 2007/8 Goal: $100,000 For a relatively young organization, ORGANIZATION has been remarkably successful in securing funds from some of the most selective foundations in Southern California, including the FOUNDATION 2, FOUNDATION 1 and The FOUNDATION 3. Oftentimes, an organizations best source for future funding lies in its existing donor base. In order to ensure ongoing and increased funding (though, note that nothing is ever guaranteed in fundraising), ORGANIZATION staff and board must allocate time and energy to actively steward the organizations existing foundation funders. Rather than simply sending an annual report and asking for ongoing support, ORGANIZATION must employ multiple strategies to foster funder relationships. Some possibilities include: Forwarding positive newspaper articles covering the work of ORGANIZATION to funders with a short note saying explaining how their funding made the work detailed in the article possible, and thanking them for their support. Occasionally calling funders to report a major victory, asking them for feedback regarding a current challenge or seeing if they can connect you to other resources (such as other funders) that would help ORGANIZATION. Inviting funders to ORGANIZATION events and seeking them out at events you see them at. Planning for a face-to-face meeting (if possible) to report on the work of the organization at the end of the grant cycle, before the final report is due. Also using this time to discuss the possibility of ongoing support. Tracking each interaction with existing funders in a database, which will create a funder stewardship history that can be referenced in the future. Solicit new donors - 2007/8 Goal: $100,000 Several foundation prospects were identified during the Fund Development Planning process, including: The James Irvine Foundation, the Marguerite Casey Foundation, the Diane Middleton Foundation, Hispanics in Philanthropy and the Roth Family Foundation. ORGANIZATION has been extremely successful at grantwriting, winning grants from the most competitive funders in Los Angeles, as noted above. But a lack of dedicated development staffing left very little time to reach out to more foundations, and ORGANIZATION has historically only been able to approach a handful of foundations each year. These foundation relationships are extremely time-consuming, and require detailed reports and renewal proposals.

While some of ORGANIZATIONs initial core funders may continue funding the organization into the future, we recommend conservatively anticipating that of foundation grantwriting income, approximately $50,000, may begin to turn over each year for the next three years. Our initial foundation grantwriting goal is to anticipate this shortfall by bringing in at least $100,000 in new grant writing income each year. The Appendix contains a list of potential ORGANIZATION funders who might be researched further. With this research, ORGANIZATION can begin approaching and cultivating these donors with an aim to solicit each for funding sometime over the next year. The Appendix also contains cultivation strategies for the top foundation prospects, which will need to be implemented by the staff and board. Diversify ORGANIZATIONs Fundraising: Individual Giving 2. 100% Board Giving and Getting - 2007/8 Goal: $10,000 ORGANIZATIONs Board of Directors is central to the organizations success in its resource development. Based on the Leadership survey results, several board members have relationships with potential future donors that may give to ORGANIZATION if solicited. Each board member should think about networking opportunities that may put them in front of potential ORGANIZATION supporters. Additionally, it is critical to the organizations continued growth that the entire board gives in support of ORGANIZATION while also working to raise outside funds for the organization. If each board member doesnt make a contribution, potential donors may question their commitment to the organization. When a board member states they have made a financial commitment to a prospective donors, it strengthens their ask by showing that board member has invested his or her own money into the organization. Board members should: Pledge and give and/or raise at least $1,000 each year to ORGANIZATION (more if they are able) The chair of the Board Development Committee and the Interim Executive Director will keep track of board giving/getting and report progress made to date during board meetings Attachment F contains a Sample Board Giving Policy. 3. Host Open House Event - 2007/8 Goal: Donor Cultivation ORGANIZATION is already planning to host an open house event sometime over the next year. While the primary target for this event will be local membership and the community, potential donors are also encouraged to attend. In this way, the open house can also serve as an informal donor cultivation opportunity. Donors would get the opportunity to learn more about ORGANIZATION in a low-pressure, fun atmosphere where theyll be able to see the strength of the organizations local leadership first hand. Donors should be identified in advance, sent a special invitation (personalized if possible by the board member who has a relationship with the donor) and followed up with. At the event, a designated staff or board member should introduce themselves to the donor

prospect and introduce them to other ORGANIZATION board members, staff and members. 4. Host Fundraiser Event - 2007/8 Goal: $10,000 To date, ORGANIZATION has never hosted a fundraising event. Hosting a fundraising event helps raise the visibility of your organization while also securing needed funds. The ORGANIZATION Board Development Committee and interested members should explore the different types of events and decide upon an event that fits within the organizations culture and capacity. Once decided, a special event committee should be formed to create a plan to ensure the event is a success. The following invites for a fundraising event should be considered: All ORGANIZATION Board Members Current foundation funders to ORGANIZATION Prospective foundation funders Prospective Major Individual donors or Corporate supporters who might have a special interest in ORGANIZATION and/or the issues that affect the community Local elected officials ORGANIZATION Leadership Committee members Accion Colectiva Members An event will help raise ORGANIZATIONs profile in the donor community, help bond current supporters to ORGANIZATION, and help attract potential supporters who might not otherwise visit and learn about ORGANIZATION. 5. Engage ORGANIZATION membership in fundraising - 2007/8 Goal: $7,000 Involving members in the fundraising process may help with ORGANIZATIONs efforts to raise funds, while simultaneously building the leadership capacity of ORGANIZATION members. Members can help plan events, participate in tours with potential donors, and even make a contribution to ORGANIZATION. Members financial contributions will not only help ORGANIZATION diversify its funds, but also increase commitment to the organization by fostering personal investment. 6. Solicit donor prospects (with a call, letter, meeting and/or tour) - 2007/8 Goal: $7,000 Larger nonprofit institutions are constantly researching, approaching and cultivating new major individual donors suggested by their Board Members and Committee Members. As names are suggested for ORGANIZATION, those prospects who have the capacity to make a major gift might be invited to the community for an individual site visit as part of their cultivation. ORGANIZATION could begin a monthly major donor program, in which every month one prospective new major donor is identified, researched, and invited to visit the community. A starting point for invitees could be any individual who has the potential of giving $1,000 or more to ORGANIZATION. Your Board and Fund Development Committee could identify and reach out to other prospects.

You might pick a particular recurring day (such as first Wednesday of the month) so that staff and members recognize it as a visitors day and the Interim Executive Director can place it on their schedule as a recurring event. Build ORGANIZATIONs Fundraising Infrastructure 7. Establish Board Development Committee A Fund Development Committee oversees an organizations fundraising operations, and takes the lead in personally reaching out to contacts and identifying potential corporations, foundations, individuals and government funding sources. Part of developing the ORGANIZATION Fund Development Plan included the development of a Board Development Committee, which included participation from: BOARD MEMBER BOARD MEMBER EXECUTIVE DIRECTOR Ron Milam This committee should continue to meet on a regular basis in between regular board meetings to ensure this fund development plan is implemented. Attachment E contains a sample Board Development Committee write-up. 8. Launch Fundraising Database As ORGANIZATIONs fundraising operations become more sophisticated, the organization will need to keep an electronic database that captures donor contact info, donations and the organizations correspondence with funders. Create a system that works for you to ensure easy access to this information. Multiple fundraising databases exist; these should be explored and one that fits the needs of ORGANIZATION should be selected. 9. Renew ORGANIZATIONs core written materials & website that will anchor our fundraising ORGANIZATION has grown since its founding and has taken on new initiatives like working to influence the New Community Plan for the community. As the organization works on new projects, its fundraising materials need to be updated accordingly. During July and August, even as this plan was being developed, a major focus has been on renewing ORGANIZATIONs written materials, including: General Operating Grant Proposal A general letter of inquiry Web Page Content A general brochure A newsletter 10. Continue Coaching for ORGANIZATIONs Interim Executive Director Ongoing executive coaching, with a specific emphasis on fundraising, will enable ORGANIZATIONs Interim Executive Director to implement this fund development plan. This plan represents an important step for the organization as it takes its fundraising to the next level. Many more decisions and a great deal of hard work lie

ahead as the organization implements this plan. Having the assistance of an experienced fundraising professional whose goal it is to develop the organizations fundraising capacity will play a key role in ensuring ORGANIZATION is successful in its efforts to diversify and increase its funding base.

APPENDIX The first four attachments can be found in a separate Excel Spreadsheet document named Attachments-Fund Development Plan Attachment A Action Plans This Action Plan documents who is responsible, whats to be done, when and how long it will take to implement the strategies identified in this fund development plan. It can be viewed in the attached spreadsheet, under the worksheet named Attach A - Action Plan Attachment B - Cultivation Strategies This spreadsheet list more information about prospect funders, when they should be approached and what connections ORGANIZATION has with some of the funders. It can be viewed in the attached spreadsheet, under the worksheet named Attach B Cultivation Attachment C - Fund Tracking System These spreadsheets will allow ORGANIZATION to keep track of donations as they come in. It can be viewed in the attached spreadsheet, under the worksheet named Attach C Development P&L, Attach C - Contributions Fdns & Attach C - Contributions - Inds Attachment D - Overview of the Fund Development Planning Process This spreadsheet gives an overview of the meetings it took to develop this fund development plan. It can be viewed in the attached spreadsheet, under the worksheet named Attach D - Fund Plan Calendar

Attachment E - Sample Board Development Committee Write-up Board Development Committee The Board Development Committees job is not simply to raise money. Instead, the Committee is responsible for overseeing the organizations overall fundraising and, in particular, the fundraising done by the board. To accomplish this, its responsibilities are: To work with staff to implement ORGANIZATIONs recently adopted fundraising plan. To work with fundraising staff in their efforts to raise money To take the lead in certain types of outreach efforts, such as chairing the planned fundraising event for the fall of 2008, or to host a house party. To be responsible for involvement of all board members in fundraising, such as having board members make telephone calls to ask for support, and To monitor fundraising efforts to be sure that ethical practices are in place, that donors are acknowledged appropriately and that fundraising efforts are costeffective. Composition: BOARD MEMBER BOARD MEMBER EXECUTIVE DIRECTOR One or two other board members (could include a new board member) Chair: To be determined Meetings: Board Development Committee should meet between every full board meeting. Reporting: At each board meeting, the Board Development Committee chair should report on the Committees activities.

Attachment F - Sample Board Giving Policy Board Member Giving & Fundraising at ORGANIZATION

In the summer of 2007, Board and Staff Leadership of ORGANIZATION worked with an outside consultant to create a Fund Development Plan. In the Leadership Surveys collected from the board as well as during Development Committee meetings, different ideas were discussed to engage board members with fundraising, including: giving to ORGANIZATION approaching personal & professional contacts host a party help with an event (invite friends) meet with funders

Based on these discussion, the Development Committee recommends as part of ORGANIZATIONs new Fund Development Plan that 100% of ORGANIZATION Board members support the organization with their own personal financial contribution, and help with fundraising. The Board Development Committee discussed and decided upon aiming for each board member to raise $1,000 for ORGANIZATION during the 2007/8 year. The Development Committee hopes that ORGANIZATION board members will come to our organization as the best way to invest your charitable dollars, in the same way you have chosen to invest your time and talents with us. Many foundations request data on the percentage of Board Members who give each year, and the total amount given by the Board. These foundations are influenced by the level of financial commitment they see in board members, who know the organization best. This policy will help ORGANIZATION by communicating to foundation funders that we have a committed, involved Board that believes in the organization, and that gives financially as well as through its time and talent. Please know that we value every board members contribution, non-financial as well as financial. We also want to be flexible and offer different ways for board members to get involved in fundraising. Everyone can fundraise. If you have written a letter, you can fundraise. If you have made a phone call, you can fundraise. If you have taken someone to lunch or to visit the school, you can fundraise. You might host a party, attend a party, or come to the neighborhood to co-host a site visit and meet funders. There are many ways to help with fundraising, and Evelin will be happy to work with you to find ways that you wish to participate. Achieving 100% board participation in contributing and fundraising will help us acquire the resources to fulfill our mission.

Attachment G - Detailed information on potential funders Funding Prospects for ORGANIZATION Detailed Information from FC Search ORGANIZATION Executive Summary Foundation Funding Prospects Bank of America FOUNDATION 3 FOUNDATION 1 .

Funding Prospects Info from FC Search

The Bank of America Charitable Foundation, Inc. 101 S. Tryon St., NC1-002-33-77 Charlotte, NC 28255-0001 URL: http://www.bankofamerica.com/foundation/index.cfm?template=fd_funding Donor(s): Bank of America Corp.; Bank of America, N.A.; FleetBoston Financial Foundation. Type of grantmaker: Company-sponsored foundation. Background: Established in 1958; current name adopted in 1998 following the merger of NationsBank Corporation and BankAmerica Corporation; reincorporated in 2004. Purpose and activities: The foundation supports organizations involved with arts and culture, education, health, human services, community development, and religion. Special emphasis is directed toward programs designed to address critical issues in local communities. Program area(s): The grantmaker has identified the following area(s) of interest: Joe Martin Scholarships: The foundation awards college and vocational school scholarships to children of Bank of America employees. The program is administered by Scholarship America, Inc. Local Heroes: The foundation awards $5,000 grants to nonprofit organizations selected by outstanding community leaders. Matching Gifts: The foundation matches contributions made by associates of Bank of America to nonprofit organizations from $25 to $5,000 per associate, per year. Neighborhood Builders: The foundation awards $200,000 grants to programs designed to create vibrant neighborhoods. Volunteer Grants Program: The foundation awards $500 grants to nonprofit organizations with which Bank of America associates volunteer. Fields of interest: Arts; Community development; Education; Health care; Human services; Religion. Geographic focus: National Types of support: Annual campaigns; Building/renovation; Continuing support; Emergency funds; Employee matching gifts; Employee volunteer services; Employee-related scholarships; Equipment; General/operating support; Internship funds; Matching/challenge support; Program development; Scholarship funds. Limitations: Giving limited to areas of major company operations. No support for political, labor, or fraternal organizations, civic clubs, religious organizations not of direct benefit to the entire community, public or private pre-K-12 schools, United Way- or arts council-supported organizations, or disease advocacy organizations. No grants to individuals (except for Joe Martin Scholarships), or for fellowships, advertising, sports, athletic events, or athletic programs, travel-related events, student trips, or tours, development or production of books, films, videos,

NEXT 40 PAGES CONTAINED BACKGROUND INFO ON POTENTIAL FOUNDATION FUNDERS