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MEMO

CLIENT: The New Mom Project (TNMP)
CAMPAIG Annual Campaign, 3 Year Fundraising Plan
N:
Re: Audit
To: Gwen Broda
CC: Ibrahim Inayatali
From: Chelsea Dowson
Alex MacDougall
Holly Groeneveld
Colleen Edwards
Sarah Law
Date: March 9, 2017

Introduction
This is an analysis based on The Fund Development Audit, from The
Fundraising Audit Handbook1. The audit was completed by three individuals
associated with The New Mom Project (TNMP): the President of the Board, a
long-term volunteer and the Executive Director. The purpose of the audit is
to act as a comprehensive tool and provide insight into TNMP’s fundraising
abilities and understanding. The audit not only helps to highlight the
organization's strengths and weaknesses; it helps in developing goals for
future improvement. Based on suggestions from the audit, TNMP can build a
comprehensive fund development plan by considering new strategies and
best practices. The comments and suggestions made in this documents are
based upon the responses to the audit. The audit results are summarized in
Figure 1 in the Appendix.

Governance (Figure 2)
In terms of governance, there are a few areas of improvement. The
board is meant to provide oversight and support. Therefore the board’s
contribution when it comes to areas such as developing a fundraising
portfolio or reaching out to new constituents is essential. In order to create a
sense of ownership, it might be beneficial to require all board members to
make financial contributions to the organization. Board member should take
on a prominent role in the fund development process. This would be done to
instil a sense of ownership and pride into each member.
After analysing the audit report, it’s apparent that the board knows
what they want to achieve, however, there is a lack of clarity of their roles

1 Guy Mallabone and Ken Balmer, 2007, Civil Sector Press
and responsibilities in the fund development process. There are currently no
fundraising policies or procedures in place. Board members should be setting
an example and in doing so, it would be beneficial for the board to hold a
meeting and create a policy outlining the roles and responsibilities, as well as
expectations of current and future board members. Lastly, a diverse board in
terms of skills and background is an assent to an NPO. Something that TNMP
should consider is to increase their number of board members and accept
applicants for new members. The board could specifically look for board
prospects with fundraising experience. New members will not only bring a
new skill set into the charity, they will also have different networks of peers
and may help to target a different constituent base.

External Environment (Figure 3)
Knowing that sustainable funding is easier to acquire when the
community is aware of and shares a vested interest in the organization’s
mission and vision, it’s in TNMP’s best interest to spread awareness and build
a community of supporters. Based on the audit results, the respondents
express a sense of urgency to promote the organization but they seem to
lack the means and understanding to do so.
Overall, the respondents express a general lack of knowledge about
the external environment, a need for a more compelling case statement and
overall stronger communication of their brand identity. An area that TNMP
seems to be neglecting is the need to consider possible threats and
opportunities that may arise by observing competitors and the external
social and political landscapes as a whole. In order to improve, the first thing
that TNMP should consider is developing a compelling case for support and
briefing board members and volunteers on this document. By doing so, board
members and volunteers will be well equipped to make ties with other
organizations and members of the community. This will not only benefit
TNMP’s brand awareness, it will also help with gift solicitations.

Fundraising Track Record (Figure 4)
Currently TNMP is dependent on in-kind donations to support their
programming – the donations are essential for the necessities included in the
baby boxes. The organization also gains financial revenue through events,
government funding, and limited online and cash donations. The records that
have been kept on donors and donations are limited. TNMP has identified the
lack of stewardship as a weakness in their current operations, they recognize
the importance of building a relationship with their donors, but are limited by
resources – especially time. There is a need for a program to acquire new
donors in order to grow their organization. But with limited resources, it's
difficult to remain in contact with the existing donors and develop these
relationships. An understanding of stewardship is clear, and TNMP
experienced the benefits when they received gifts in response to handwritten
thankyou cards at Christmas. TNMP should prioritize stewardship in their
future fundraising efforts, to develop these ties between the donor and
TNMP.
We would recommend that the TNMP expand their fundraising portfolio
in order to generate more sustainable forms of funding. With more
differentiated sources of revenue TNMP is in a more secure financial position
if they lose one source of that funding. The responses to the audit reflect an
understanding of this concept, and the desire to develop a diverse fund
portfolio, but help a strategy to achieve this is required.

Constituency Analysis (Figure 5)
For a young organization with little brand awareness, The New Mom
Project has a small but loyal group of donors and sponsors. It must be noted
that TNMP is unaware of how the majority of donors come to find out about
the organization. Due to the fact that TNMP relies on local hospitals to spread
the word about their organization’s programmes and services, one can
assume that constituents learn about the charity in this manner. It is also
assumed that current donors learn about the charity through internet
searches.
For an effective fund development program, an organization should be
aware of its stake holders; the individuals who have an affinity or connection
to the organization. By understanding these connections and learning more
about their supporters, TNMP can develop a pool of donors with strong ties to
the organization. Doing so often leads to more giving and the giving of larger
gifts from donors.
Based on the audit results, the representatives from the organization
feel that there is a need to better understand their donors and invest in a
database to house this type of information. TNMP needs to take better care
in identifying donor prospects and the stewardship practices of their current
donors. By investing in the infrastructure to properly capture donor
information, TNMP will be able to better understand donor motivation and
affinity and segment donors based on their interest and generosity. Tracking
constituent information helps with stewardship and leads to more
sustainable funding in the future.

Program Maturity (Figure 6)
According to the audit questionnaire, TNMP has not outlined a fund
development plan. This development plan is necessary to engage their
prospective donors and move those individuals up the donor pyramid. It’s
apparent that TNMP aspires to adopt best practices but lacks the current
knowledge and resources to implement a successful moves management
system. TNMP might not be conscious of it, but they currently have a small
“moves management” system in place. This is displayed through their
willingness to send personalized thank you cards to helpful donors and
volunteers as well as including sponsor recognition on their website. The fact
that such a small group of dedicated volunteers have been able to achieve
the level of funding that they have over such a short period of time, is
indicative of their ability to implement a successful program with the right
knowledge and direction. Furthermore, their success with individual donors
indicates some intuitive understanding of moves management. Holding a
workshop to educate board members and volunteers on the donor pyramid
would be a good tool to help the members conceptualize this idea. One small
way that they could begin to improve on their moves management system
would be to start collecting donor information. Once enough information is
collected, regular and frequent e-newsletter blasts and solicitations can be
sent out. In doing so, this will help build a roster of donors that can hopefully
be stewarded into making monthly contributions.

Resource Availability (Figure 7)
In order to have high fund raising performance, an organization must
ensure allocation of appropriate resources; including supplies, time and
manpower. TNMP is extremely efficient and resourceful with the limited
resources they have. Being completely volunteer run, TNMP’s successes are
reflective of the hard work and selflessness of individuals dedicated to their
mission. However, based on the audit results, the respondents feel that there
needs to be more structure in terms of developing a fund development plan
to ensures more sustainable funding and the ability to continue and grow
programming.
Through the development of a fund development plan, hopefully the financial
requirements will be met. Other non-financial resources that TNMP should
consider are skill-based resources. TNMP should explore acquiring new board
members and volunteers (and once the financial resources are available,
salaried employees) with understanding and experience in fundraising,
communications and program management.

Fundraising Culture (Figure 8)
A strong fundraising culture and a successful fundraising program go
hand-in-hand – one cannot exist without the other. This culture of
philanthropy must be understood and supported internally before external
support can be expected. The New Mom Project has great potential in
developing new donors outside of their immediate circle. Based on the audit
results, the organization lacks a sound understanding of fundraising best
practices but is very willing and eager to adopt these practices. For a young,
grassroots organization, TNMP has a small, but loyal, group of donors and
sponsors contributing both financial and in-kind support. The respondents
have indicated their interest moving towards a more sustainable form of
funding for their programing; the current program is primarily focused on
events and government grants. With an enthusiastic board and a team of
dedicated volunteers, establishing a fundraising committee could enhance
the fundraising culture and provide more direction for obtaining new sources
of funding.

Donor Perspective (Figure 9)
In order for an organization to be successful in fundraising, it must work
towards accomplishing its mission while maintaining and incorporating donor
interests. TNMP has great respect and gratitude for their donors – sponsors
are acknowledged on the charity’s website and current donors are sent
thank-you cards and event invitations. The donor’s recognition should be
meaningful and they should feel as though their donation directly impacts
the mission and goals of TNMP. According to the results of the audit
questionnaire, TNMP is taking some measures to ensure that the donor’s
perspective is being considered. They approach fundraising from an ethical
mindset and are focused on transparency and using funding appropriately.
However, the results highlight a knowledge gap regarding the regulatory
environment in which fundraising activities are being conducted. TNMP fails
to publish or create regular financial reports for its constituent’s, which could
be attributed to a lack of resources, information and/or understanding
regarding the benefit of creating such reports.
Some recommendations based on best practice to improve donor
relations include capturing donor information and thanking donors
immediately and consistently for their support. First-time donors need to be
thanked within 48 hours of their first donation. Through stewardship, it’s
important to communicate to the donor the impact that their donation made
towards the cause. Communications should be donor-centric and focused on
the impact the donor is making or could make, rather than the successes of
the organization. Although financial information is available to the public
through the CRA website, TNMP should consider releasing their annual
financial reports or reviews on their website.
Appendix
Figure 1: Audit results from three respondents affiliated with The New Mom Project.
Current Practices Practices to Adopt
Respondent A Respondent B Respondent C Respondent A Respondent B Respondent C
Governance 2.5 4.9 2.4 4.7 5.0 3.9
External Environment 2.1 4.7 2.4 3.9 4.4 4.2
Fundraising Track Record 3.1 4.1 2.0 4.9 5.0 3.9
Constituency Analysis 1.3 4.0 1.2 4.2 3.1 3.3
Program Maturity 1.4 2.0 1.3 5.0 3.2 3.9
Resource Availability 2.1 3.8 3.0 4.8 5.0 4.2
Fundraising Culture 2.6 4.3 3.3 5.0 4.2 4.3
Donor Perspective 3.7 4.4 3.0 4.7 5.0 4.6

Figure 2: Governance

Governance
5.0

4.0

3.0
Current Practices
Average Score
2.0 Practices to Adopt
1.0

0.0
A B C

Respondent

Figure 3: External Environment
External Environment
5.0

4.0

3.0
Current Practices
Average Score
2.0 Practices to Adopt
1.0

0.0
A B C

Respondent

Figure 4: Fundraising Track Record

Fundraising Track Record
5.0

4.0

3.0
Current Practices
Average Score
2.0 Practices to Adopt
1.0

0.0
A B C

Respondent

Figure 5: Constituency Analysis
Constiuency Analysis
5.0

4.0

3.0
Current Practices
Average Score
2.0 Practices to Adopt
1.0

0.0
A B C

Respondent

Figure 6: Program Maturity

Program Maturity
5.0

4.0

3.0
Current Practices
Average Score
2.0 Practices to Adopt
1.0

0.0
A B C

Respondent

Figure 7: Resource Availability
Resource Availability
5.0

4.0

3.0
Current Practices
Average Score
2.0 Practices to Adopt
1.0

0.0
A B C

Respondent

Figure 8: Fundraising Culture

Fundraising Culture
5.0

4.0

3.0
Current Practices
Average Score
2.0 Practices to Adopt
1.0

0.0
A B C

Respondent

Figure 9: Donor Perspective
Donor Perspective
5.0

4.0

3.0
Current Practices
Score
2.0 Practices to Adopt
1.0

0.0
A B C

Respondent