The coming of age of collaborative fundraising
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The Coming of Age of Collaborative Fundraising. June 18, 2014. The Rise of Collaborative Fundraising. “…a joint effort of two or more groups to raise more money than either group could alone.” Kim Klein, publisher & editor, Grassroots Fundraising Journal. Current USA Giving Trend.

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The Coming of Age of Collaborative Fundraising

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The coming of age of collaborative fundraising

The Coming of Age of Collaborative Fundraising

June 18, 2014


The rise of collaborative fundraising

The Rise of Collaborative Fundraising

  • “…a joint effort of two or more groups to raise more money than either group could alone.”

    Kim Klein, publisher & editor, Grassroots Fundraising Journal


Current usa giving trend

Current USA Giving Trend

  • 2013- $337 Billion

    Giving increased by 4.4% over last year

    • 72%- Individuals

    • 15% - Foundations

    • 8% -Bequests

    • 5% - Corporations

      Giving USA


The coming of age of collaborative fundraising

  • Education grew the most 8.9%

  • Health, environmental,

    animal- related and arts 6-8.5%

  • Giving to Religion and by Companies continues to slow

  • The wealthy are becoming more confident to give

    Giving USA


Who is benefitting

Who is benefitting?

  • "When stock values are high, it makes a huge difference in the amount of money going into education, but it has little or no impact on religious donations, which rely on lots of small gifts from individuals.“

    Info provided by The Atlas of Giving


More n c non profits

More N.C. Non-Profits

  • Total as of Feb. 2007: over 86,000

  • Total as of Nov. 2008: 91,971

  • Total as of Dec. 2011: 105,150

  • Total as of Dec. 2013: 108,301

  • 26% increasein 6 years!

    Info provided by North Carolina Secretary of State's Office


Robust growth for non profits

Robust Growth for Non-Profits

  • 2010 – North Carolina

    10% of workforce is non-profits

    400,000 paid employees

  • 2013- USA

    44% of NFPs plan to create new positions

    20% plan to freeze, reduce or eliminate positions

    North Carolina Philanthropy Journal

    Non-Profit HR Solutions


Challenging conditions

Challenging Conditions

  • More Non-profits vying

  • Non-profits ok with operational fundraising…struggling with capital fundraising

  • Harder to get donor attention

  • In spite of stock market, still cautious mood among many major donors

  • Non-profits very careful about over-reaching in setting fundraising goals


The rise of collaborative fundraising1

The Rise of Collaborative Fundraising

  • “…a joint effort of two or more groups to raise more money than either group could alone.”

    Kim Klein, publisher & editor, Grassroots Fundraising Journal


The rise of collaborative fundraising2

The Rise of Collaborative Fundraising


What collaborative fundraising is not

What Collaborative Fundraising is NOT

  • Teaming to support a worthy project where there is no direct benefit back to the organization

  • Fundraising by budget allocation rather than actual fundraising


Example 1

Example #1

  • Sea Pines Montessori and Hilton Head Prep- late 1990s

  • Collaborated in a capital campaign

  • To fund a common facility and entrance

  • Successful due to:

    • Big common goal

    • Strong leadership

    • Rules of engagement


How fundraising looked

How fundraising looked


The coming of age of collaborative fundraising

  • “Joint fundraising is probably the most difficult form of non-profit collaborations. And the results are far from certain. I think the risk/reward perception is still not where it would need to be to make it attractive for most.”

    Jonathan Howard, co-founder, Cause & Effect consulting services


Major donor confided

Major Donor confided…

  • “We once did a collaborative gift to well-known project and that was the beginning of the end of the place as the agencies fought over control of the funds.  Kind of like throwing a steak over the fence at the dog pound.”


Collaborative fundraising works well when groups

Collaborative Fundraising works well when groups:

  • Share a similar BIG vision

  • Share a similar culture and often size

  • Commitment to joint planning to work through issues in advance

  • Trust each other (Board chairs often insure good feelings permeate)

  • Develop a written agreement about money & labor

  • Are perceived to be equally invested

  • Agreement on how funds raised are allocated to achieve campaign objectives


Example 2

Example #2

  • A North Carolina Community College wants to fund a Manufacturing Training Center

  • Invited Collaborative Partners (Schools, Chamber of Commerce, Industry, County, plus the College as lead)

  • Feasibility Study encouraging:

    • A paradigm change for county

    • Unifying

    • Attracting major leaders


A big vision

A BIG Vision

  • “A Big vision is probably the most critical factor. A Big vision compels everyone (organizations & donors) to look beyond their own capabilities.“

    Jeffrey Ouellette, director of development, Central Square Theatre, Cambridge M.A.


When it works well continued

When it works Well…continued

  • The reward must be greater than if each group had attempted on its own.

  • Marketing benefit: elevates the project well beyond what a single organization could achieve.

  • Collaborative fundraising allows groups to access a larger audience and donor pool.

  • A joint funding arm (committee) generally works to identify, cultivate and solicit joint prospects.

  • Each group solicits their own prospects, but certain donors are solicited ‘jointly.’

  • Able to access bigger donors and avoid ‘nickeling and diming.’


Example 3

Example #3

  • Midlands Gives- a wonderful collaborative effort

    • Unifying BIG IDEA

    • Strong leadership and credibility of CCCF

    • Clear objectives

    • Low risk – avoids donor confusion


When collaborative fundraising does not work well groups

When Collaborative Fundraising does NOT work well, groups:

  • Do not have the resources to meet the campaign readiness steps

  • Fear losing their donors

  • Can not find the right groups to work with

  • Lack of commitment of time to collaborate

  • Boards and staff do not trust each other

  • Can not agree on who to solicit jointly, and how to allocate funds raised


In summary what makes the difference

In Summary: What Makes the Difference

  • A BIG Vision

  • Strong volunteer leadership that is confident, and insists on ‘trust’

  • When the groups know that their major donor prospects like ‘Collaborative Fundraising.’

  • Keeping the collaboration clear (and simple)

  • Advance written ‘rules of engagement.’


Example 4

Example #4

  • Buncombe County Five Greenways, plus City, County, and Friends of Connect Buncombe

    • Goal: Raise a nucleus fund of possibly several million for matching grants for specific greenways

    • By joining together can raise and leverage more support from funders (DOT, Tiger Grants, CDBG, LWCF, etc.)


What to collaborate on

What to Collaborate on

  • Joint campaign planning team

  • Advance project and community assessment

  • Advance PR and marketing

  • Case development

  • Consulting

  • Feasibility study

  • Campaign coordinator

  • Office and back-office

  • Cultivation event(s)

  • Lead gift solicitations

  • Grant writing

  • PR & Marketing

  • Campaign events & Celebration

  • Project Management


Sample collaborative fundraising organizational chart

Sample: Collaborative Fundraising Organizational Chart

Lead

Org. A

Org. B

Org. C

Joint Funding Committee

Campaign Steering Committee

Campaign Director & Coordinator

  • Prospect Evaluation

  • Lead & Challenge Gift

  • Other identified prospects to be solicited jointly:

Phases

Board

Staff

Former Bd. Lead

High Major

Major

Foundation

Gift-in-kind

Public

Board

Staff

Former Bd. Lead

High Major

Major

Foundation

Gift-in-kind

Public

Board

Staff

Former Bd. Lead

High Major

Major

Foundation

Gift-in-kind

Public


The coming of age of collaborative fundraising

High Quality Results

On Schedule, Over Goal, and Within Budget


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