NONPROFIT FUNDRAISING BASICS

Presented by Patrick Malone, WSUE Horizons Coach

NONPROFIT FUNDRAISING BASICS

In The Beginning.PASSION + PERFORMANCE.
Strategic Plan (3-5 years) Program Plan & Budget/Business Plan (1-2 yrs) Fundraising Plan (board training) Audits/Financial Assessment (track record)

READY, AIM, FIRE..>>>>>>>>>>

NONPROFIT FUNDRAISING BASICS Nonprofits generally have the ability to secure up to 5 types of income or revenue. They include: Fees for Service, Social Enterprise/Earned Income, Individual Donors, Grants, and Government Earmarks

NONPROFIT FUNDRAISING BASICS

PLUS TWO more 1.YOUR MEMBERS 2.YOUR BOARD

NONPROFIT FUNDRAISING BASICS

Fees for Service.

Generally your most basic source of income. Money is derived from the provision of some type of good or service (at hopefully a break-even point). Education is a good example. Your goal should be that between 30 and 60% of your income comes from fees. Pricing denotes value and encourages participation and commitment.

Nonprofit Fundraising Basics: FEE FOR SERVICE EXAMPLE

Financial Education - A Financial Education - B

You sponsor a series of 4 classes for free on the topic of financial education in April 2010. Here your organization spends $ in printing and promotion.

You sponsor this same series but you invite local businesses to invest as sponsors AND you charge participants $15.00 for the entire series or $5.00 per class. Here your organization makes $ through income fees.

NONPROFIT FUNDRAISING BASICS

Social Enterprise/Earned Income. Not only should/must you make money by appropriately pricing your core goods and services, but you should also exhaustively look into your ability to earn money from some form of ancillary social enterprise. A social enterprise balances mission and money, so that the core mission of the nonprofit can flourish. Here you might make 5 to 20% of your budget.

Nonprofit Fundraising Basics: EARNED INCOME EXAMPLE

Financial Education - A Financial Education - B

You purchase a set of teaching curriculum from a recognized source for $.

You gather a team to compile your own stories and worksheets in preparation of a Basic Financial Education Guidebook and sell it online for $ making you $$ in profit.

Nonprofit Fundraising Basics: EARNED INCOME EXAMPLE

Christ Kitchen, Spokane Women Empowerment Food From the Hood, LA Youth Entrepreneurship

NONPROFIT FUNDRAISING BASICS

Individual Donors. Much like Fees for Service, individual donors should comprise between 30 and 80% of your revenue. Middle income Americans give 85% of all American philanthropy. Make them your champions!

Nonprofit Fundraising Basics: INDIVIDUAL DONOR EXAMPLE

Financial Education - A
You tell co-workers about your training series and ask each person to give something. You get $.

Financial Education - B
You schedule an individual time to meet with coworkers after work and ask them to invest in the personal growth of neighbors who will then become more self-sufficient and need fewer social services and therefore reduce taxes. You get $$$!!

NONPROFIT FUNDRAISING BASICS

Grants. You regularly prepare and submit grant proposals. You derive 20 to 60% of your overall revenue from this source.

Nonprofit Fundraising Basics: GRANT PROPOSAL EXAMPLE

Financial Education - A

Financial Education - B
You strategically rate your programs and services for the best funder fit and then systematically prepare a highly competitive grant proposal getting you $$$!!

You furiously search the internet researching possibly funders and write dozens of proposals netting you much exhaustion and a few $.

NONPROFIT FUNDRAISING BASICS

Government Earmarks.
You make a routine written request of members of your Legislative and/or Congressional delegation to slip a pet project into the state and/or federal budget. Especially useful for capital projects. You derive 1-5% of your revenue this way.

Nonprofit Fundraising Basics: GOVERNMENT EARMARK EXAMPLE

Financial Education - A You submit a project request to 1 legislator and then you recruit strong business and community leaders to lobby for your project request within the state/federal budget. Financial Education - B You submit your top priority project with full support documentation, along with dozens letters of support to all members of your state and/or federal delegation and then invite key community leaders to join you in promoting its passage.

Giving USA 2005 Data

Giving USA 2005 Data

Nonprofit Fundraising Basics:

Your goal, our goal Is to build a CULTURE OF PHILANTROPY in all our communities and among all our residents and businesses

NONPROFIT FUNDRAISING BASICS Nonprofits generally have the ability to secure up to 5 types of income or revenue. They include:
Fees for Service, Social Enterprise/Earned Income, Individual Donors, Grants, Government Earmarks, Members, and Board Members.

Annual Operating Funding Summary:

Fees = 30-60% Earned Y = 10-30%

Donors = 30-80%
Grants = 30-60% Earmarks = 1-5% Members = 10-100% Board = 1-10%

= 100% of your overall financial needs