NCF FUNDRAISING STRATEGY ======================== 22 July 1996 It is an established statistic that generally 80% of money donated comes from 20% of donors. In fact, most philanthropic analysts have noted these numbers moving closer to a 90/10 split. Thus it is critical to focus on up-scale donors, with more and better recognition and more thank you's. The Dev.Com. has traditionally focused on event fundraising, often expending many hours of volunteer time and staff support for minimal return. The following defines a proposed fundraising strategy for NCF in terms of our four main streams of revenue: LEGEND: DC = Development Committee FC = Finance Committee ED = Executive Director DO = Development Officer (Staff) SA = Systems Administrator (Staff) AC = Administrative Coordinator (Staff) PRTF = Public Relations Task Force FIG = Fundraising Ideas Group 1. GRANTS: Included in this are both government and private foundation grants. The Dev.Com. might take the initiative (or respond to requests) to identify and research grant sources, but the applications are best left to staff who have the time and information to develop and massage proposals. OBJECTIVE 1: To be defined by budgetary needs, as directed by staff. STRATEGY 1: FC: Establish 1997 budgetary targets -- by October 1996. DC: Respond to staff requests to research grants -- as required. DO: Research Trillium Foundation and possible RMOC grants -- in time to provide info. to Finance Cttee. * Draft applications (possible focus on Francophone outreach) -- for receipt of funds & project implementation in 1997. 2. INDIVIDUAL (MEMBER) DONATIONS: Within this category are: a) first time donors b) repeat donors ANALYSIS: NCF does quite well with first time donors, new users who make a donation at the time they register. But the average donation is still quite low, even with the new PFA's. We have a scale of benefits depending on how much people donate, which is good. And NCF now sends thank you's to all donors, which is also an improvement over the old system of not even acknowledging donations. OBJECTIVE 2a): Increase average first time gifts to $20. Increase proportion on new users who donate. (Question: what proportion of first time donors currently donate?) STRATEGY 2a): SA: Automatic message for those who login as . Message on screen, with suggested donation amount of $25. Additional message and information about how donations are used in registration form. AC/DC: (DC office support volunteer to do work, based on information provided by AC) Follow-up reminder by e- mail, along with offer of help, at time registration is processed. ANALYSIS: We do less well with repeat donors. This is largely due to two factors: - lack of an effective database; and - lack of person-power to work the membership lists. OBJECTIVE 2b): Get average annual gift of $25 from all members. STRATEGY 2b) -- Short term. DO: Monitor progress of automatic debits -- ongoing. DC: Develop reminder messages -- as requested by DO. * Recruit 2-3 volunteers to work with Sheila in NCF office, sending reminder messages to members who reach these milestones -- before August 1, 1997 STRATEGY 2b) -- Long term. DC/ED: Continue to push for automated donor database with reminders for member milestones, such as anniversary dates, usage over x hours (150?), etc. 3. CORPORATE DONATIONS: This can also be divided into two streams: a) gifts in kind; and b) gifts of cash. ANALYSIS: NCF has been very successful in securing gifts in kind. Gord Pearson has developed excellent opportunities for donor recognition and an impressive benefits package, which will become even more impressive as NCF moves to the web format. OBJECTIVE 3a): DC/DO: Continue to seek gifts in kind -- as directed by technical staff, authorized by ED. ANALYSIS: We have been less successful in securing gifts of cash. As NCF's overhead costs mount, gifts in cash become more important to our continued survival. Traditionally, it is always easier and less costly for the donor, to give equipment rather than money. Also, NCF needs cash to support staff and overhead costs, which is harder to justify to donors and does not give them same the sense of contributing to NCF's mission, as if they can donate a piece of equipment from which the members will directly benefit. Line sponsorships and other incentives up to and including the Key Partner program provide a useful framework from which to begin a marketing campaign to corporations. What is needed is: - to identify key corporate targets; and - to better coordinate appeals ("asks") by both staff and key volunteers, especially board members. OBJECTIVE 3b): Increase by 10% of total budget, the value of corporate cash donations. [Note: Lisa, you might want to put a dollar figure in here.] STRATEGY 3a): DC: Organize webbing session to identify new corporate targets. To be attended by Board members past and present, key staff and key volunteers (facilitated by RebLast) -- to be scheduled for mid-late August 1996. * Recruit 2-3 volunteers (preferably board members or key volunteers) who can be trained by Development staff to assist in making the "ask" -- to be in place by early September 1996. * Support DO's efforts. (For example, Dev.Com. members might assist in making requests, or hand-write personal thank you letters.) -- as requested by DO DO: Begin program of renewing line sponsorships -- by mid- August 1996. * Train key volunteers in making the corporate "ask". -- end September 1996. * Birddog key volunteers in follow up on new corporate targets -- ongoing. 4. EVENTS: NCF's DevCom has traditionally occupied itself in organizing small events to raise small amounts of money. e.g.: pool tournament, hallowe'en party, Walk of Ages, etc. NCF's main fundraising event is its on-line auction. However, for the purpose of this strategy special promotions such as the $50,000 Challenge Fund will also be classified as "events". ANALYSIS: Events fundraising is the most time-consuming for both staff and volunteers. All too often, the dollars raised do not justify the effort. However, events fundraising also offers the additional benefits of heightened public awareness and boosting volunteer morale. Not all NCF's events are specifically designed to raise money. For example the annual picnic and birthday celebrations are not fundraising events per se. However, these events can and have been tied in with donor recognition programs. They can also be useful networking opportunities for building a relationship with potential future donors. (e.g. Gold Key Reception, December 7, 1995) NCF's on-line auction was a world first and enjoyed some success in its first year. The next year was less successful, perhaps because of the timing which coincided with NCF's Challenge Fund. Planning must begin now for the 1996 auction, especially in view of the loss of key volunteers such as Mike Mason. The most promising auction items are those which are "priceless", that is they cannot be purchased. For example, the "Day with Ian Allen" offered in the first auction raised almost $300! Future auctions should focus on items of this kind, rather than those which have a ceiling value. Special on-line appeals such as the Challenge Fund appeal have shown remarkable success in the past, but the results have dropped off recently. Levering the on-line donations with a matching gift or grant seems to be key, as in the case of the Challenge Fund. OBJECTIVE 4: a. Raise $25,000 gross from NCF Auction of (max. 150) "priceless" items. (This means each item must raise an average of $167.) b. Organize at least one key event for corporate and high-level individual donor recognition, as well as for a networking opportunity with target corporate donors. (Corporate reception to announce FreePlan) c. Establish 3 on-line appeals per year, with matching donations or grants to lever on-line donations STRATEGY 4a: Online Auction DC: Strike committee to organize auction -- done. * Recruit on-line auction coordinator -- before end of July. * Work with Mike Mason to define necessary tasks for efficient and effective auction management -- July 24 to end of July * develop theme packages and items for bidding -- July 24 to end of July * recruit key volunteers to fill positions -- August * recruit additional volunteers to solicit gifts -- August - September * work with PRTF to promote event -- early September through to end of auction. SA: Ensure all system supports are in place for efficient management of auction. AC: Ensure office proceedures are in place to manage bids and collect pledges. * Advise DC of volunteer requirements for office support and auction followup. DO Monitor progress of auction, provide support as directed by ED. STRATEGY 4b: Corporate Reception (based on target date of mid- to late- October) Note: This is a high-profile event, intended *mostly* for networking with potential future donors and to recognize existing key partners. Media and one or more keynote speakers would be invited. DC/DO: Identify key invitees from webbing exercise and other leads -- August - mid-September, 1996 * follow up on corporate leads -- late October to February. (Note: all leads should be invited to NCF Birthday party) DO: Explore potential for a reception hosted by key partner -- August - September * Establish date timelines for logistics (room bookings, catering, etc.) -- by mid-September (before September board meeting.) * Send out invitations -- late September. * finalize all arrangements -- mid-October AC Monitor RSVP's. DC: Recruit keynote speakers -- late September. Through PRTF, build awareness and develop media releases -- early October - day of event. STRATEGY 4c: Establish 3 on-line appeals per year FC: Establish budgetary targets and timing -- September 1996 DC/DO: Work together to recruit corporate or government partners willing to match donations (or grants) with on- line gifts from members -- September for target of December as first on-line appeal date * Develop matching donor recognition program (i.e., what recognition on-screen, elsewhere?) SA: Implement software changes needed to accommodate on- line donor recognition. There are two additional streams of revenue: 5. SALE OF PRODUCTS, such as the Survival Guide,t-shirts, pins etc. 6. SALE OF SERVICES, such as internet orientation. However, neither of these has great potential for raising money, and item 5 has been an administrative nightmare. Mike Z.ahab's Porthole proposal might help to alleviate the administrivia for 5 and is worth adopting on an interim basis, provided Mike can satisfy our concerns about public use of the NCF name. Item 6 also has some potential to be a growing source of revenue, *but* exploiting this means modifying NCF's mission. i.e., will the board accept that it is now necessary to charge (or charge more) for services that we have previously provided as part of our mandate? I'm not sure that, as a board member, I would vote in favour of charging to put people on-line. -- ** Lisa K. Donnelly, M.B.A., Executive Director ** * National Capital FreeNet/Libertel de la Capitale nationale * Telecommunities Canada, Board of Directors (613) 241-9554 voice & fax (613) 241-2477