A 5x5 Model Webinar

1. A 5x5 Model Webinar • Development-Stage 2 • Presenters • Ginny Z. Berson • Maxie C Jackson III • June Fox, DEI • Beverly Hacker, KDHX • Brian Terhorst, KCHO • Pearl Stark, KPOV • December 14, 2012 • 1pm EST

2. Development - Stage 2

3. Development - Stage 2

4. Development - Stage 2 Stage 2 • Revenue generation includes foundations and/or grants • 2 Development Officers (1 Full-time) Stage 3 • Multiple Revenue Streams • Diversified Development Staffing • Use Benchmark Data in planning Development Activity • Short & Long Term Plans to increase revenues - on schedule

5. Development - Stage 2 H. June Fox Director DEI Station & Business Relations 703.759.2221 www.deiworksite.org

6. Development - Stage 2 Diversify Revenues Continue Growing Membership Decrease Reliance Increase Financial Stability

7. Development - Stage 2 Easier to get renewal and/or larger donations from current donors Growing current donors critical to station's financial health & stability

8. Development - Stage 2 Additional Gifts Program Services Challenge Appeal Special Needs Equipment Record Library Other budget items Emergency - tower, dues

9. Development - Stage 2 Send at least 1 additional gift letter per year Exclude anyone currently getting a renewal letter Those giving additional gifts more likely to renew on their anniversary

10. Additional Gift Letters Asking for additional gifts is NOT greedy... it's giving your donors the opportunity to provide additional support for the great programming you provide! Development - Stage 2 Timing of Add Gift Appeals • Prior to each on-air pledge drive • End of calendar year • End of fiscal year

11. Development - Stage 2 Add Gift Conservative .5x renewal amount Renewal amount 1.5x renewal amount Ask Chart Aggressive Renewal amount 1.5x renewal amount 2x renewal amount

12. Development - Stage 2 Beverly Hacker Executive Director KDHX Community Media bhacker@kdhx.org

13. Development - Stage 2 KDHX Community Media 43,000 watt community station in Metro St. Louis, MO 21st largest market in US – Includes a major NPR station and 4 college/university stations 25 years in the market 2.5 M population in coverage area AAA Music Format Volunteer programmed $1.3 M annual revenues – 40% from individual gifts

14. Development - Stage 2 Historically, 60-65% of revenue was from individual donations Overall membership growth slowed around 2003 Introduced sustaining memberships with EFT only in 2001 – not very successful Started sustainer program in Fall 2009 Currently 40% of revenue is from individual donations

15. Development - Stage 2 Set up a successful sustainer program • Have a compelling mission and convey it succinctly • Be sure that there are advantages for the donor to make the switch to sustaining membership and make that part of your communications • Have an efficient ‘back-end’ process that enables you to thank donors promptly and address any donor concerns • Develop an integrated approach with a well-planned communication plan • Make it “exclusive” and give it a name

16. Development - Stage 2 Back-end system considerations Will you do EFT and/or credit/debit cards? Select a provider that makes it easy, interfaces with or reports easily to your database system Make sure your system can keep track of upcoming expiration dates Set up internal systems and procedures for handling the initial sign up as well as the on-going stewardship Decide on your ‘price’ and ‘offer’ and get that into all of your communications Modify your renewal efforts to remove sustainers Don’t remove sustainers from add gift solicitations

17. Development - Stage 2 Planning, Goals & Expectations • Understand the effect a sustaining program will have on your membership drives • It will take one or more annual cycles to really see how much the program will take from single donations • Plan for this both in how you set your drive goals and how you budget your annual revenue • Keep accurate records on conversions, drop-offs, add gifts from sustainers to be able to really judge success

18. Development - Stage 2 Education for programmers and listeners Train on-air staff to pitch the sustaining program and incorporate it into your pitching points Use a limited number of very focused reasons to switch to sustaining membership Head – No renewals, no need to call during drive, automatic premiums in spring & fall Heart – Its better for the station, I can give more Wallet – planned payments, annual tax letter Set realistic goals for drives with consideration for the effect of sustainer conversions

19. Development - Stage 2 Integrated marketing for sustaining members • On-air during drive • On-air between drives • Added to all direct mail solicitations • Newsletter and brochures • Removal from renewal mailings • Semi-annual premium mailings • Annual tax letter • Annual add gift solicitation • Invitations to special events • On-line support layouts • On-line banner ads

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21. Development - Stage 2

22. Development - Stage 2

23. Development - Stage 2 Stewardship • Initial gift confirmation • Acknowledgement • Amount / start date / draw date confirmation • Explanation of benefits • Welcome • Spring/Fall premiums • Year-end add gift appeal • >$30/mo – Sound Investor welcome • Sound Investor party invitations • Annual tax letter

24. Development - Stage 2 Results • Prior to instituting sustaining membership • 2 drives per year with the occasional ‘emergency’ drive • FYE 9/30/2009 • 2 drives - $125K each • Sustaining gifts - $38K • FYE 9/30/2012 • 2 drives - $150 K each • Sustaining gifts - $212K

25. Development - Stage 2 Brian Terhorst bterhorst@csuchico.edu General Manager Northstate Public Radio KCHO 91.7 FM, Chico & KFPR 88.9 FM, Redding California State University, Chico, California

26. Development - Stage 2 Who We Are: • KCHO-FM, Chico (signed on 1969) • KFPR-FM, Redding • Eight Translators • Licensed to CSU Chico Research Foundation (non-profit auxiliary of CSU Chico). • Annual budget of $1.6 Million. Service Area: • 10-county area of Northeastern California. • Compared in size to the State of Ohio. • Coverage Area Population: 481,000 • Rural Station: Avg. 24 persons per square mile. • Positioned first in Chico Metro weekday radio market during 7:00 and 8:00 am hours and 6:00 pm hour (i.e., morning and evening drive time). (RRC)

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29. Development - Stage 2

30. Development - Stage 2 • Are supported by over 4,000 active members. • Two 10-day drives per year, each preceded by a 4-week “Silent Drive.” • Minimal reliance on thank-you gifts (i.e., premiums) • Use drawings and challenge matches to motivate giving • FY 12/13 Total Projected Membership Revenue: $426,466. • Sustaining Gifts: $91,096 • Sustainer Breakdown: • EFT: $76,209 • Monthly CC Debits: $7,266 (new and growing) • University Payroll Deductions: $7,621

31. Development - Stage 2 Partnership with... University Advancement · As University Licensee, Membership Donations are University Gifts · Gifts processed exclusively through University Advancement (UA) as part of Annual Fund · CSU Chico uses Banner Gift Software. Database is segregated to prohibit solicitation of station members for other University campaigns. · Station no longer maintains an in-house membership department o All renewal and reminder letters, billings, gift processing and end-of-year tax statements handled by UA o UA Staff assigned to Member Stewardship, Major Donor Cultivation, and Planned Giving. o UA Staff participate in drive planning effort · Northstate Public Radio is CSU Chico’s single largest gift recipient, exceeding Alumni Association.

32. Development - Stage 2 Sustainer Benefits for Members: · No need to renew. · Annual investment distributed over the year. · Automatically entered in Silent Drive Incentive Drawings. · Symbolic “renewal” to receive featured thank-you gifts during drives. · Thanked en masse during Membership Drives Sustainer Benefits for Station: · Provides steady and predictable monthly revenue stream. · No need to renew. · Cancellation requires member initiative. · Reduced costs for thank-you gifts. Sustainer Challenges · Requires effective stewardship o Thanking sustainers o Incentives o Custom mailers o Exclusive benefits and events · Making a case for ongoing monthly donations rather than annual donations o NPR sustainer handoffs · Initial reduction in annual donor revenue

33. Development - Stage 2 Pearl Stark Station Manager KPOV 88.9 fm High Desert Community Radio www.kpov.org pearl@kpov.org 541.322.0863

34. Development - Stage 2 Station background: KPOV, High Desert Community Radio • Based in Bend, Oregon – a city of 80,000 • Staff size: 2 part time staff totaling 1.3 FTE (+ 2 UW reps paid on commission) • 100 volunteers • On the air 7 years, since June 2005 • Transition from LP to FP in summer 2011 • 2 big NPR translators air here • We are a Pacifica affiliate • Format: Mixed, news/talk/music • We are not CPB funded

35. Development - Stage 2 KPOV’s grant history: 2004 – 2008 we averaged $10,000/year 2009, 2010: $4000/year 2011: $36,000 2012: $34,000 committed 2013: $20,000 already committed Most years these numbers include some donor advised funds. Interesting correlations: • 2004-2008 founding board member writing grants • 2009, 2010 volunteers writing grants • 2011->, staff writing grants

36. Development - Stage 2 Who writes grants? Qualifications: • knows the station well • detail oriented… able to follow seemingly pointless directions • strong writing skills • willing to put time into it • grant writing experience Mistakes: • Commission based grant writers • Volunteers walk in off the street and offer to write a grant • Someone too busy to follow through with reviews and rewrites

37. Development - Stage 2 How to find grants: • Look at other non-profits in your community/state and see who is granting them • Helpful to look at orgs with same size or same mission • DEI and APTS grant center website • Web search • Donor advised funds • Word of mouth • Look at what they’ve granted in the past and how much Ideas of special foundations to look for: • Arts foundations • Social Justice foundations • Community foundations • City/county specific funds

38. Development - Stage 2 Mistakes, Things that may not work: • Foundations or individuals with a lot of money but no connection to your station in mission or geography • Applying for grants for projects that are outside your mission • Hard to budget for • Grants whose main focus is basic needs

39. Development - Stage 2 Things that often work: • Take advantage of relationships with grantors • Start with smaller regional grants • Have people review the grant and give suggestions. • Make sure you follow all the rules of the grant and double check • Talk to the granting organization • Get feedback from the granting organization afterwards if they turn you down. • Make sure you're prepared to follow through • Grants that fund operating costs are really nice. Most don’t. • Pick a few projects that you will write grants for. • Write some standard pieces that can be used for multiple grants. Make the case. • Station history/mission • What problem are you addressing • How will you solve it

40. Development - Stage 2 How to learn? Take a class. Read a book. Read some grants that were funded. Read some grants that were not funded. Write a grant & get feedback.

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