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FUNDRAISING FOR NONPROFITS (Overview of Proposal Preparation) SOWO 883 Effective Writing Statement of Need Procedures Goals and Objectives Preparing the Budget Evaluation Walter C. Farrell, Jr., Professor School of Social Work . University of North Carolina at Chapel Hill

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slide1

FUNDRAISING FOR NONPROFITS

(Overview of Proposal Preparation)

SOWO 883

Effective Writing

Statement of Need

Procedures

Goals and ObjectivesPreparing the BudgetEvaluation

Walter C. Farrell, Jr., Professor

School of Social Work

.University of North Carolina at Chapel Hill

Chapel Hill, North Carolina 27599

wcfpr@bellsouth.net

slide3

WINNING PROPOSALS/BUSINESS PLANS

MODEL FOR DEVELOPMENT

Goals of the Organization

Initial Project Idea

Assessing Capability

Assessing Need for the Idea

  • Building Support and Involvement
  • C-BOs
  • Govt. Agencies
  • Political Officials
  • Civic + Religious Orgs.
  • Gathering Necessary Data
  • Library
  • Govt. Agencies
  • Surveys
  • Etc.

Identifying Alternative Approaches

Selecting Funding Source

Planning Proposal Writing

Writing the Proposal

Submitting the Proposal

Source: Adapted from Getting Funded: TheComplete Guide To Writing Grant Proposals (5th Edition)by Susan Howlett and Renee Bourque 2011

writing the proposal
Have You Chosen anEffective and Feasible Approach?

Do Your Proposed Project OutcomesJustify Funding Request?

Does Your Project Staff and Organization Have The Necessary Capability, Credibility, and Experience for Success?

Writing The Proposal
writing the proposal cont d
Proposal Provides Information Requested by Funding Source—ESSENTIAL!

Cautions:

Follow All the Forms and Instructions Provided by the Funding Source

Re-check Proposal Before It Is Sent Out to Ensure Compliance

Writing The Proposal (Cont’d)
writing the proposal cont d1
Maintain Balance Between Conciseness and Sufficient Detail to Explain the Project. You Have to Know a Project Awfully Well to Describe It Succinctly

Make Certain Reviewers Are Guided to Most Important Parts of the Proposal/Business Plan.Use Subheadings Wherever Necessary

Make Certain Proposal Flows Logically From One Section to Another.In Essence, You Are Telling a Story About What You Will Do, Why, and How!

Writing The Proposal (Cont’d)
slide7
Don’tBury Your Most Important Points Behind Unnecessary Introductory Phrases

Don’tInclude Charts or Statistical Tables in the Body of the Proposal Unless Required by the Application Forms. Place Them in an Appendix If They Are Absolutely Necessary! If used, they should “speak for themselves”

Don’tUse Citations to Previous Research Without Indicating How They Apply to Your Own Idea

Writing The Proposal (Cont’d)

writing the proposal cont d2
Don’tMake CommitmentsThatYou Have No Means to Implement

Most Funding Sources Assume There Will Be Some Variation From the Original Proposal

But They Seldom Forgive Those Who Have Been Deliberately Misleading

Writing The Proposal (Cont’d)
writing the proposal cont d3
A Well-Planned and Well Written Proposal Will:

Allow You the Opportunity to Develop a Useful Work Schedulefor Implementing the Project

Many Start-Up Problems Can Thus Be Avoided

Provide the Framework for Management of the Project by Establishing the Rules Within Your Organization

Writing The Proposal (Cont’d)
standard proposal sections
Purpose

Statement Of Need

Goals And Objectives

Procedures/Methods

Evaluation

Dissemination

Qualifications

Timelines

Budget

Standard Proposal Sections*

* May be rearranged and/or renamed depending on funding source

purpose statement case statement
The Purpose Section Is Critical. It Tells What You Intend to Accomplish

It Also Describes the Services/Products You Will Offer, Your Client/Customer Focus, Measurement Criteria, Legal Structure, Etc.

Purpose Statement (Case Statement)
statement of need
A Thorough Understanding of the IssuesThat the Project Is Attempting to Explore or Resolve

The Importance of These Issues, Not Only to the Project Participants, but to the Larger Society

Demographic Makeup of Clients/Customers

Statement Of Need
statement of need cont d
A Critical Analysis of the Literature/Similar Nonprofits in the Field and How This Project Will Fill Some Significant Gap

The Timeliness of the Project and Why It Should Be Funded Now

Statement Of Need (cont’d)
statement of need cont d1
The Innovativeness of the Effort, If Not at the National Level, at Least Locally

The Potential “Generalizability” and Contribution of the Project to the Resolution of Problems of Importance

Statement Of Need (cont’d)
procedures methods cont d
The Procedures Section (Also Called the Approach or Plan of Action). It Tells How the Project Will Be Carried Out

It Must Convince the Funding Source That You Really Know How to Achieve the Outcomes and/or Solve the Problem(s) Described

Proposals/Business Plans Should Not Have Fuzzy or Imprecise Objectives.It Is Difficult to Hide Inexperience or Incompetence When Describing Project Operations and Management

Procedures/Methods (cont’d)
procedures methods cont d1
There Are a Number of Problems Commonly Found in the Procedures/Methods Section of the Proposal

Problem 1: The Experiences of Personnel Are Not Equal to the Task at Hand

Problem 2: The ProposalDoes Not Include Procedures/Methods or a Plan of Operation/Implementation

Procedures/Methods (cont’d)
procedures methods cont d2
Problem 3: The Procedures/Methods Do Not Match the Objectives and Needs That Are Described in the Proposal

Problem 4: The Procedures/Methods Have No Sound Rationale

Problem 5: The Procedures/Methods Are Not Demonstrated to Be Feasible. Management Is Not Competent for the Task

Procedures/Methods (cont’d)
procedures methods cont d3
The Criterion of “Feasibility” Is One of the Most Important Reasons Why Proposals Are Rejected

Clues That Reviewers Look for When Judging “Feasibility” Include:

Procedures/Methods (cont’d)
procedures methods cont d4
Evidence That You Know of Other Studies or Projects Where Similar ProceduresHave Been Used Successfully

ThisSuggests That Your Procedures’Intended Results Have Potential to Achieve Stated Outcomes

The Extent to Which Procedures Are Separated Into Distinct and Manageable Activities

Procedures/Methods (cont’d)
procedures methods cont d5
Documentation That the Writer Has Thought Through an Effective Time Schedule

Evidence That the Writer Is Aware of Potential Problem AreasWith the SuggestedProcedures

Procedures/Methods (cont’d)
nonprofit qualifications
Degrees of Staff

Staff Experiences Related to Project

Facilities

Equipment

Etc.

Nonprofit Qualifications
timelines
Week(s)

Month(s)

Year(s)

Timelines
goals and objectives
You May Want to Include Both Statements of Goals and Statements of Objectives

The Two Are Frequently Confused Because Both Describe a Desired Condition or Outcome

These Two Types of Statements Differ in Dimensions of Specificity,Accountability, and Time AND ARE VERY IMPORTANT!

Goals Provide an Overall Conceptual Orientation to the Ultimate Purpose of the Project/Business

Goals and Objectives
goals and objectives cont d
GoalsAre More Abstract in Content, Broader in Scope, Less Subject to Direct Measurement, and Focused on Long-Term Perspectives

They Could, However, Describe Aims That Can Reasonably Be Achieved by the Completion/Full Implementation of the Project

Goals And Objectives (cont’d)
goals and objectives cont d1
An Objective Addresses Short-Term or Intermediate Accomplishments

A Proposal Can Have Several Objectives, and These May Be of Different Types

Goals And Objectives (cont’d)
types of objectives
BEHAVIORAL OBJECTIVES

Outcome Statements That Deal With Human Performance in One of the Three Behavioral Domains (Cognitive, Affective, or Psychomotor)

To Be Complete, a Behavioral ObjectiveShould Include Information That Answers Four Questions:

Types Of Objectives
types of objectives cont d
Types Of Objectives (cont’d)
  • 1. Who Is Going to Perform the Specified Behavior?
  • 2. What Behavior/Product/Service Is Expected to Be Developed?
  • 3. Under What Circumstances/In What LocationWill the Behavior/Product/Service Be Observed?
  • 4. How Is the Behavior/Product/ServiceSuccess Going to Be Measured?
types of objectives cont d1
An Example of a Objective That Meets These Criteria:

During a Training Workshop, High School Students Will Show Their Comprehension of Entrepreneurship Skills As Measured on a Staff-Developed Test

Types Of Objectives (cont’d)
types of objectives cont d2
PERFORMANCE OBJECTIVES

In Order to Make Objectives More Specific and Measurable, Outcome Statements Called Performance Objectives Are Frequently Requested

Types Of Objectives (cont’d)
types of objectives cont d3
Types Of Objectives (cont’d)
  • The Performance Objective Must Include Information That Addresses the Four Questions Specified for Behavioral Objectives and Must Also Answer:
    • The Amount of Time Necessary to Bring About the Specified Behavior/Produce the Product?
    • The Expected Proficiency Level?
types of objectives cont d4
A Performance/Product/Service ObjectiveIs Listed Below:

At theEnd ofthe Year, the Heating Collaborative Will Deliver Fuel Oil to 85% of the 95,000 Households in North Roxbury, MA that are Eligible for Energy Assistance

Types Of Objectives (cont’d)
types of objectives cont d5
The Performance/Product Objective Is Often Considered More Desirable Than the Behavioral Objective Because It Brings a Specific Element of Time to the Outcome

It Also Adds a Performance Criterion (Which Aids in Evaluating Whether the Objective Has Really Been Achieved)

Types Of Objectives (cont’d)
types of objectives cont d6
In Writing Either Behavioral or PerformanceObjectives, Two Guidelines Should Be Given Special Attention

Care Should Be Exercised to Describe the Behavior/Product/Service That Is to Be Developed As Precisely and Specifically As Possible

Types Of Objectives (cont’d)
types of objectives cont d7
Examples of Imprecise Words That Should Be Avoided Include:

Knowing

Appreciating

Thinking

Enjoying

Grasping the Value of

In Contrast, Words Like the Following Are Much Less Vague:

Write

List

Construct

Read

Types Of Objectives (cont’d)
types of objectives cont d8
Special Effort Should Be Made to Establish Expected Performance Levels That Are Realistic

In Demonstration or Exploratory Projects, Most Funding Sources Are Tolerant If the Specific Level of Proficiency Cannot Be Realistically Predicted at the Time the Proposal Is Written

Types Of Objectives (cont’d)
activities to support objectives
Examples of Activities to Support an Objective:

Purchase materials

Develop timeline for production

Assign staff to manage production

_____________________________________

_____________________________________

______________________________________

Activities To Support Objectives
budget
Line Item

Personnel __________________

Supplies/Materials __________________

Printing __________________

Communications __________________

Facilities __________________

Equipment __________________

Other __________________

Miscellaneous __________________

Budget
functional and program budget
Objective # 1

Line Item

Objective # 2

Line Item

Objective # 3

Line Item

Functional and Program Budget

Start-Up Costs

Financial/Cash Flow

Projections

Break-Even Projections

Profits and Losses

evaluation
Evaluation- Determines the Worth of a Thing. Obtains Information for Use in Judging Worth of a Program, Product, ObjectiveEvaluation
evaluation cont d
EvaluationSystematic Process Designed to Reduce UncertaintyAbout the Effectiveness of a Particular Project

Evaluation Determines Whether Targets (Objectives) Have Been Met

EvaluationIf Not Required Should Be Included for the Good of the Project

Evaluation (cont’d)
evaluation cont d1
SUMMATIVE/PRODUCT EVALUATION

Involves Collecting Data to Determine the Ultimate Success of the Completed Project. Major Purpose Is to Document the Extent to Which the Project’s Proposed Objectives/Outcomes Were Achieved. Funding Source Is Key Recipient. (Most Commonly Requested in Proposals/Business Plans.)

PAY-OFF/IMPACT EVALUATION

Can Occur at “Formative” and *“Summative Stages”. Concerned With Finding Out Whether Project’s Achievement Are of VALUE. Value of Its Effects. (Useful to Wide Range of Audiences.)

Evaluation (cont’d)
other funding and sustainability
What other funding sources are you pursuing?

How do you plan to ensure long-term sustainability?

Are you requesting funding for a pilot program?

Other Funding And Sustainability
organizational information
Who are you as an organization (can be drawn from Case Statement)?

Does your organization have unique characteristics that make it suitable for the funding requested ?

Does your organization or do you have a track record in this area? Explain why or why not?

Organizational Information
donor investor cultivation solicitation
Turning

Suspects

into

Prospects

into

DONORS/INVESTORS

Donor/Investor Cultivation/Solicitation
building donor investor base analysis
Learn who your donors/investors are and their psychographic characteristics (beliefs and values)

Identify prospects from these data

Invite current donors/investors to provide more capital, and invite prospects to contribute/invest

Building Donor/Investor Base: Analysis
building donor investor base analysis cont d
Use public education, media (free), brokered meetings, conferences, etc. to turn potential investors/contributors into prospects

Use “new” fundraising strategies to turn those prospects into donors

Building Donor/Investor Base: Analysis (cont’d)
essentials in major capital infusions
Quality

Quantity

Frequency

Continuity

Recognize that significant capital/contributions are only given a few times (or perhaps once) by a donor/investor

A donor cannot afford to give assetson a yearly basis

Essentials in Major Capital Infusions
responsibilities of development officers fundraisers
Review the prospects’ relationship with your organization on a regular basis

Plan with the appropriate “players” a cultivation strategy… one move at a time

Encourage donor to remember organization in will

Responsibilities of Development Officers/Fundraisers*

*In small nonprofits, executive directors may serve that role

responsibilities of development officers fundraisers cont d
Execute the cultivation plan

Evaluate its impact and progress toward the significant gift

Development Officers should enter the life of Major Gift Prospects frequently in a substantive way

Responsibilities of Development Officers/Fundraisers* (cont’d)

*In small nonprofits, executive directors may serve that role

background initiatives
Have Prospect serve on Nonprofit’s Committees

Membership on Foundation Boards/Advisory Councils

Ongoing communication pieces (annual reports, newsletters, brochures, etc.)

Video presentations

Receptions, dinners, athletic events

Special invitations to Board meetings, organizational celebrations

Background Initiatives
foreground initiatives
Personal interaction between staff and prospects/investors

A personal visit with Executive Director, Board President

Stewardship report about impact of last gift/investment

Use of Prospects’ homes or businesses for meetings or receptions

Foreground Initiatives
foreground initiatives cont d
Enlist Prospects to help cultivate others

Honor him/her through testimonials, awards etc.

Send Prospects personal congratulations on birthdays, holidays, promotions, etc.

Review case for support - - invite advice on process

Involve Prospects in special events

Foreground Initiatives (cont’d)
elements of solicitation
Research and Plan

Getting the appointment

letter set-up, phone call

Rehearsing the call

Face to Face visits

Follow-up

Confirm the commitment

Elements of Solicitation
importance of personal visit
Personal Visits

70 % will give about 50% of the rated amount

Telephone Calls

25% will give about 25% of the asked amount

Mailed requests

2% will give gifts in the range of $10-$25

Personalized mailed requests

10% will give 2.5% of suggested amount

Importance of Personal Visit
the ask
Introduction

Establishes common ground

Interview

Listen, gather information about the Prospects’ interests

Discuss needs of organization to meet the interests of prospects

Summation

Present gift ranges and opportunities

Describe impact of gift on organization

The “Ask”
useful expressions when asking for the gift
“I believe…”

“I support…”

“I hope you will join me in supporting…”

Useful Expressions When Asking for the Gift
what solicitor investor should know about goal
What the gift will accomplish

Why it is important

How much it will cost

Types and sizes of gifts needed, and why

Pledge period(s)

Why it is urgent!

What Solicitor/Investor Should Know About GOAL
what solicitor should know about prospect
Feelings toward the organization and objectives for giving/investing

Financial capacity

Basis for building awareness, knowledge, interest, and involvement in the objectives for funding

What Solicitor Should Know About PROSPECT
sources of information
Information provided by nonprofit (from Donor/Venture Capitalist Analysis data)

Personal knowledge of organization and of prospect

Information from Prospect

Sources of Information
other points
Consider needs of the Donors/Investors/Prospects

Avoid duty andobligationas a basis for appeal

Allow time for consideration of request, asking is not a one-shot deal

Make your own gift/investmentfirst

Ask for more than money, e.g., Input

Other Points
other points cont d
Be prepared to help Prospects decide on amount to give/invest by citing:

your own contribution

investments of others

average size of gifts/investmentsto date

specific suggestions

contribution options (i.e., equity stakes)

pledge opportunities, etc.

Other Points (cont’d)
other points cont d1
Givers/Investors tend to be more interested in ideas/outcomes than in campaign requirements and deadlines

Neither wealth, interest, or readiness are distributed evenly among prospects

There is no super logic or formula that will compel a person to give

People give from the heart, then from the head

Listen as you “Ask”

Other Points (cont’d)
corporate giving
Company Foundation

Direct Corporate Giving/Investments—FACEBOOK Founder, Mark Zuckerberg’s $100 Million Gift (matching grant) to the Newark, New Jersey Public Schools—Background ??

Marketing (Cause–Related)

Research and Development

Product Equipment Donations

Company Volunteers (which may lead to a corporate donation)

Corporate Giving
corporate giving trends
Tied to Company Objectives

Problem Focused: poverty, illiteracy, hunger, teenage pregnancy, education*

Challenge Grants

Reduction in Giving due to Mergers and Acquisitions

Corporate Giving Trends

*Vouchers, private scholarships are currently popular

foundations
Must distribute some percentage of their assets as a matter of law (5% or more on an annual basis)

Foundations may be: Independent, Company Sponsored, Community, and Operating Types

Foundations
foundations cont d
Foundations can be researched through:

Internet, Foundation Directories, etc., and all have published funding guidelines

Most will request some form of proposal and will provide specific formats

Foundations (cont’d)
government grants funding
Often, there are categorical areas of funding that continue over the long-term: alcohol and substance abuse, at-risk youth, child welfare, etc.

Funding/grants are predicated on objectives of government administration: local, county, state, and federal

Government Grants (Funding)
government grants funding cont d
They are also predicated on current “whims/interests” of government CEO (Mayor, County Executive, Governor, President, and their key officers [cabinet officials])

Faith-based funding

Welfare reform

Education reform

Etc.

Government Grants (Funding) (cont’d)
slide69

Special Events

Cause Related Marketing

Social and Civic Entrepreneurship

fundraising
Secret Gifts: + and/or –

Hot Fundraising Causes

Education, Children’s Causes

K-12, Community, Etc.

Post-Secondary

Human Rights/Inequality/World Peace

Promotion of Democracy

Death Penalty Opposition

Homelessness, etc.

Health/Environment

AIDS

Cancer

Immunization/Prevention, Etc.

Aging

Alzheimer’s

Other Chronic Diseases of the Elderly

Fundraising
fundraising cont d
Lukewarm to Cold Fundraising Causes

Arts??? (Except for targeted constituencies!)

Museums

Operas

Repertory Theaters

Symphonies

Programs (Performing, Visual, Crafts, etc.)

Ballet Companies

Response: Expand the user/donor base (Diversify!). Focus on staying within the budget like a laser beam!

Fundraising (cont’d)
slide72
Adopting a Mission to Create and Sustain Social Value---For-Profit, Nonprofit??

Recognizing and Relentlessly Pursuing New Opportunities to Serve That Mission

Engaging in a Process of Innovation, Adaptation, and Learning

Exploring New Revenue Streams

Fundraising(Cont’d)

Social/Civic Entrepreneurship

slide73
Non-Profits: Creating For-Profit Social Ventures to Meet the Financial Needs of Their Organizations.

For-Profits: Acting in a Socially Responsible Manner While Pursuing Profits

Government: Operating Efficiently

Fundraising (Cont’d)

Social/Civic Entrepreneurship

slide74

Fundraising (Cont’d)

Forces Behind Social/Civic

Entrepreneurship

Scarcity of Federal Resources

Rise in Venture Philanthropy and

Social Entrepreneurship

Cycle of Fundraising and Distribution

slide75
To Change Nonprofit Culture From Welfare–Oriented to Business–Oriented

? ? ? ?

Pluses and Minuses?

Fundraising(Cont’d)

Social/Civic Entrepreneurship

Mission

slide76
Mission: Job Training for the Urban Poor and Welfare to Work Programs (1965-2004, Closed for “Fraud”)

Created for-profit businesses (1996-2001)

Corn Roast

Cellular Telephone Company

Equity Stake in Virgin Islands TV Station

Housing Construction

Pallet Company

The Case of the Opportunities and

Industrialization Centers of

Greater Milwaukee (OIC-GM)

slide77

Fundraising (Cont’d)

Types of Social/Civic Entrepreneurship

By Nonprofits (NPs)

  • Cause-related Marketing Alliances – Raise $$ for NPs and Increase Attractiveness of Corporate Products
  • Affinity Programs – CorporationsAllow NPs Improved Pricing on Products and Services
  • Exclusive Agreements – CorporationsPay NPs for Captive Audience
  • Selling of Space – CorporationsAdvertisements on NP Space/Vehicles
  • Incentive Programs – Provide Equipment or Cash
  • Sponsored Programs/Activities – Corporations Prepare Materials to Give to NPs
  • Commercial Ventures Launched by Nonprofits – NPs Establish For-profit Businesses
slide78

Fundraising

Types of Social/Civic Entrepreneurship

by Nonprofits (NPs)(Cont’d)

  • Cause-Related Marketing

NAACP – Transcontinental Communications

Metropolitan Opera – Chanel Perfume

  • Affinity Programs

Colleges/Universities – VISA Credit Cards

National Baptists Convention, USA – Group Purchase of Insurance, Etc.

  • Exclusive Agreements

Madison Wisconsin Public Schools – Coke Products

  • Selling of Space

City of Milwaukee Transit – Miller Beer, Kenan-Flagler

  • Commercial Ventures Launched by Nonprofits

Opportunities Industrialization Centers – Milwaukee, WI – Pallet Company

fundraising cont d1
Pluses of Social/Civic

Entrepreneurship for NPs

Potential to Recruit New Volunteers

Raises Additional Revenue

Increases of NPs Name Recognition

Increase of Broader Support of NPs

Fundraising(Cont’d)
fundraising cont d2
Minuses of Social/Civic

Entrepreneurship for NPs

Nonprofit Left in Lurch After Social/Civic Entrepreneurship Is Over

Social/Civic Entrepreneurship’s Erosion of Traditional Corporate Giving

NPs Inability to Manage Process (e.g., no formal agreement for returns to NP, exaggerated claims by the corporation)

Excessive Staff Time

Fundraising(Cont’d)
fundraising cont d3
Other Fundraising Ventures.

The Sunbeam Corporation and the AMA

AMA “Climbed in Bed With Fleas”

Caused AMA Leadership Restructuring

Ethical Implications

Fundraising(Cont’d)
fundraising cont d4
Venture Philanthropy

Partnering With Funded Organizations

Managing Risk

Adopting Clear Performance Measures

Using Longer Timelines

Larger Investing in Organizations

Allocating More Staff Time

Linking Staff Compensation to Performance

Fundraising(Cont’d)
fundraising cont d5
ROI (of Venture Capitalists) vs.SROI (Nonprofit)

Utility of Venture Capital Strategies

General Support for Nonprofits

Foundation Objectives’ Applicability to ROI

Fundraising(Cont’d)
top corporate givers 2000 pres of total revenue businessweek
Freeport-McMoRan---$21.7 million (.98)

Corning--$29.0 million (.94)

Avon Products--$49.3 million (.72)

Computer Associates--$15.3 million (.49)

General Mills--$49.3 million (.47)

Top Corporate Givers 2000-Pres. (% of Total Revenue BusinessWeek)