Fund Development from the inside out

1. Fund Development from the inside out David Wallace, Clinic By the Bay

2. Background/Context Facing stagnant donations and sizable donor attrition, Clinic By the Bay engaged Oliver Wyman to develop a comprehensive fundraising strategy to guide development activities for the next 18 months • The project focused on assessing the clinic’s operations, identifying and developing major donor segments and bringing best-practices from primary and secondary research to develop a CBTB-specific roadmap

3. For every 100 donors giving $1K+ The following year: 22 will increase their donation 21 will maintain their donation 32 will decrease their donation 25 will stop their donation

4. Key to fundraisingDonors follow a similar path, regardless of type, though may require varying effort and time to progress through the major steps 2. Retain Manage Engage and maintain donor relationships through updates / progress reports and events 1. Attract Identify Identify donor target and determine the most effective approach for engagement Engage Reach out to targets through appropriate channel, demonstrate need and build a relationship Solicit Perform donation ask Steward 3. Grow Cultivate a subset of donors to drive increased donations and involvement using high touch, personal engagement

5. Donor Segmentation – A Tool for Targeted Fundraising • Many non-profits use a shotgun approach in donor engagement, throwing out a number of tactics for donors and seeing what sticks • Segmentation allows you to better target each donor in a more personal, customized, and deliberate manner • Given the different features and behaviors of each donor segment, certain strategies will be more effective than others for each group

6. Individual Donors

7. Individual Strategies • ACTIVIST • Must provide oppty’s for them to do meaningful volunteer work & feel part of a community • Their contributions can be recognized in a regular newsletter or through social media • DEVOUT CONTRIBUTOR • Must be cultivated, not recruited • Give them the opportunity to shine, recognize their contributions, & demonstrate the impact their work/giving has on the org/the cause • Offer them board seats, recognize them at events, send detailed thank yous highlighting their impact

8. Individual Strategies • SOCIAL CAPITALIST • Driven by social aspect of philanthropy and see giving as a way to build and maintain their network • They make large gifts, but don’t donate time • You must provide social events for them to attend, and keep the personal relationship with their non-profit contact maintained (calls, coffee meetings, etc.) • INVESTOR (like a Foundation) • Want to make the biggest possible impact • They expect updates & reports on how their specific gift made an impact; report often and with numbers

9. Individual Strategies • CASUAL GIVER • Give because they feel they “should” – usually small amounts given around the holidays, during natural disasters, etc. • Easily swayed; to help with retention, try to steer them towards a recurring gift • DETACHED PHILANTHROPIST • Make significant gifts, often to multiple causes, and do so because they have the means and feel they should • Demonstrate impact of their gift • If they can be motivated to get involved, they can be transitioned into Devout Contributors

10. Businesses

11. Business Strategies • COMMUNITARIAN • Small, local businesses motivated because they care, it’s the right thing to do, and expect giving will drive their success • Want to be viewed as community partners; give them sponsorship oppty’s and note the difference they’re making in the community in your marketing materials • ALIGNED INTERESTS • Give to advance business goals; give to non-profits whose mission benefits them • Want to give to orgs that have best chance of driving change; looks for quantified change

12. Business Strategies • BRAND BUILDER • Give to demonstrate goodwill, get good press, improve their brand • Want to be viewed as socially conscious companies; give them ample PRF oppty’s, recognize them/demonstrate their value as a partner; give volunteer oppty’s & promote • EMPOWERED EMPLOYEES • See giving as a way to increase employee satisfaction, attract & retain talent • They encourage and depend on employees to bring causes into the workplace • Attract them by providing them with meaningful, interactive volunteer oppty’s

13. Business Strategies • CONSCIOUS GIVER • Donors without a rationale for giving; view it as a philanthropic obligation that’s expected of them; often loyal to non-profits • Attract them with low-commitment, high impact oppty’s for non-profit partnerships; ask them for targeted donations to fund specific services or programs (they can then use these funded initiatives in THEIR marketing materials)

14. Foundations

15. Foundation Strategies • PASSION PROJECT • Endowments under $2 million; vary in preference for quantitative of qualitative driven decision making; usually no/few prof. staff • Due to size tend to choose recipients based on relationships; most similar to individual donors and should be cultivated similarly • STOCKHOLDER • Looking for maximum impact; expect non-profits to provide a “case” for support relying heavily on quantitative metrics • To build or maintain relationship, provide a comprehensive case or report addressing need, outcomes/successes, changing landscape, etc.

16. Foundation Strategies • DYNAST • The whales of the foundation world; endowments of $250M+; look for high profile non profits with large budgets, ability to drive big change • Applications will be detailed and require addressing multiple, explicit requirements • IDEALIST • Often support overlooked causes; prioritize qualitative analysis, a broader narrative and “the big picture” • Attract/retain by sharing emotional, personal narratives of clients; demonstrate the impact you’re having on the world.

17. Prioritizing Segments • The objective of non-profit fundraising is to maximize donations while minimizing time spent getting them; the most effective way to do this is to understand your current donors & why they donate—as well as the assets you have to leverage (relationships, narrative & facts, and fundraising channels • The most successful non-profits have several methods to collect donations: events, text to donate, monthly recurring gifts, mobile, web, phone calls, direct mail, etc.

18. Targeted technology solutionsPeer to peer fundraising and LinkedIn represent the biggest technological opportunities   ✓ ✓ ✓ $ Facebook Youcaring Linkedin Text to Give Platforms Prospect Research Tools ✓ Recommended for Clinic by the Bay; Not recommended for Clinic by the Bay

19. Free Technology Resources Offers discounted and free rides to non-profits that sign up as partners. Benefit was only mentioned during our conversation and is not listed on site so may require direct outreach (Link) Offers 10 donated Enterprise Edition Sales or Service Cloud subscriptions and discounts on training and events. Optional non-profit specific configurations require payment (Link) Gives donations and discounts on technology products from tech partners, including Microsoft, Adobe, Cisco, Intuit, Amazon, and Symantec (Link) Provides a free project and work management tool to assist in project planning, tracking and execution (Link) Helps its non-profit partners optimize their video content, use production resources, and use donation cards for outreach and fundraising (Link) Provides a grant for a free design, could be used for a updated logo, t-shirt design or for an event (Link) Vertical response offers free email services for up to 10,000 emails per month (Link) Free shared web hosting (Link)

20. Other approaches for fundraisingThere are a number of things the clinic could try to target different donor bases Suggestions • At larger events, provide goody bags with candy, statistics on the clinic’s impact and a prepaid postcard with instructions on how to donate • Ask a group of doctors to do a mini speaker series on a medical related topic (i.e. How to be a doctor 101) • Make a fundraising push on #GivingTuesday, a major day for giving with millennials. GivingTuesday takes place on the Tuesday following Thanksgiving as a response to increasing commercialization and consumerism • Find community partners in bars and plan a philanthropic pub crawl; sell tickets to young tech workers. This could also be incorporated as part of the new scavenger hunt • Host a Trivia Night at a local bar to raise funds for Clinic by the Bay • Ask local gyms / workout studios to dedicate proceeds from one exercise class to the clinic • Solicit big donors / corporate sponsors to match the gifts for one-off fundraisers • Create a “Treat Yo Self” campaign asking donors to spend the money they usually spend on little luxuries (like lattes, beer or manicures) on a donation to the clinic • Put on an “envelope fundraiser” in downtown San Francisco; write the numbers 1-100 on the front of the envelopes and ask individuals who pass by to donate the amount on the envelope to the clinic; have a 30 second pitch on the significance of the clinic ready • Set up a jar of jelly beans in the clinic and have visitors pay $1 and guess the total number. The winner gets the jelly beans. • Arrange for a group of volunteers and their families to go ‘caroling for a cause’ to solicit donations around the holidays • Organize a polar plunge in the Bay, where participants jump in the water during the winter and solicit donations to support the clinic • Put on a “gift wrapping for good” event where individuals can bring holiday gifts they need wrapped; provide hot chocolate for all and ask for donations

21. Other approaches for fundraising Donor appreciation • When patients are waiting for the doctor, or after they’ve seen the doctor, ask them to write a thank you note to a donor that helped fund their visit or to make a donation • Create a ‘friends and family of the clinic’ potluck that brings volunteers, donors and patients together to celebrate the clinic • Conduct a phone-a-thon saying “thank you” to CBTB’s donors and informing them of how many people their donation helped at the clinic. This can be effective when recognizing the anniversary of their first donation • Significant donors should receive calls from Janet, Scott or David on a more regular basis Volunteer opportunities • Ask volunteers for help setting up the new space (i.e. decorating the waiting room, painting a new mural, building furniture). This could be an effective way to start a partnership with a corporation • Host a sponsored trash pick-up / clean-up around the neighborhood where volunteers are sponsored for every piece of trash they collect • Partner with other local non-profits to provide joint volunteering opportunities (i.e. packing food for a foodbank) • Volunteers should be asked to reflect on their experience and the meaning of the work they complete annually to help strengthen their bond with the clinic Sourcing new donors • Host a bring-your-friend to the clinic day for Board Members; provide breakfast or lunch and a tour of the clinic while talking about its impact on the community • Find small business owners that fit the profile of or employ the clinic’s patient population; ask them to spread awareness and donate. • Adding donor FAQs to the website can help convert visitors into donors. These should answer some of the big questions around the clinic and space (i.e. How does CBTB fit in the SF healthcare landscape vs. other clinics and HealthySF?)