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DEVELOPMENT PROGRAM FOR ISLAMIC SCHOOLS. FUND-RAISING OR FRIEND-RAISING? NECVA OZGUR April 2006 www.meritcenter.org nozgur@meritcenter.org. OUTLINE. Defining Fund-raising / Friend-raising / Development Mission of Development Program Development Committee Operating Plan

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development program for islamic schools

DEVELOPMENT PROGRAM FOR ISLAMIC SCHOOLS

FUND-RAISING OR FRIEND-RAISING?

NECVA OZGUR

April 2006

www.meritcenter.org

nozgur@meritcenter.org

outline
OUTLINE
  • Defining Fund-raising / Friend-raising / Development
  • Mission of Development Program
  • Development Committee Operating Plan
  • Board Members’ Role in Development
  • Guidelines and Strategies for Fundraising
  • Things you need to know before you ask for donations
slide3
FUND-RAISING

FRIEND-RAISING

DEVELOPMENT

slide4
“Fund-raising is going around with a begging bowl,

asking for money because the need is so great.

Development is creating a constituency,

which supports the institution

because it deserves it.

It means developing

a membership that

participates

by giving”

Peter Drucker

slide5
Development is value-based:

Values must guide the process.

“Development draws its meaning and the essence from the ends that are served: caring, helping, healing, nurturing, guiding, uplifting, teaching, creating, preventing, advancing a cause, preserving values.

Development should never be taken

simply to raise funds; it must

serve the larger cause.”

Henry Russo-Fundraising School

slide6
Development is a continuous,

long-term commitment to provide

for the health and future of an institution.

It requires a broad understanding of the school

and its mission. It needs patience, good

judgment, sensitivity, and friend-raising

to build long-term relationships.

development
DEVELOPMENT

Development is school-wide; it starts with:

  • Academic planning
  • Analyzing the philosophy and activities
  • Crystallizing the goals and objectives
  • Financial projections and needs
  • Careful accounting to those who invest in the school
  • Building interest and confidence in the school
  • Continuous friend-raising events
  • Donor and supporter recognizing efforts
  • Building a capable staff and volunteer team
  • Continuous and sustained effort to obtain financial support
the ultimate goal of development is friend raising
THE ULTIMATE GOAL OF DEVELOPMENT IS FRIEND-RAISING
  • The goal of development is to attract people and people will attract dollars.
  • The main goal is to cultivate personal, fulfilling, and lasting relationships with people. Dollars are the result, not the goal of development.
mission of the development program
MISSION OF THE DEVELOPMENT PROGRAM

The mission of the Development Program is to develop a fundraising infrastructure in order to generate a steady and increasing revenue stream so that the school can continue to accomplish its mission

of providing quality education

in an Islamic environment.

goals of the development program
GOALS OF THE DEVELOPMENT PROGRAM
  • Establish a Development Committee
  • Create a Development plan with 1, 2, and 5-year milestones and objectives.
  • Recruit energetic, devoted committee members.
  • Educate the community, cultivate prospects, and expand the donor base.
  • Establish written operating, gift acceptance and acknowledgement policies.
  • Establish a comprehensive database.
  • Determine the best fundraising strategies required for our community.
  • Establish a regular reporting system with the annual report.
objectives of the development program
OBJECTIVES OF THE DEVELOPMENT PROGRAM
  • Forming the Committee: Recruit energetic, committed committee members.
  • Identifying the Need: Identify the needs of the school and set the goal to raise funds.
  • Provide Training: Have a training session for the committee members.
  • Tool Kit: Prepare a Tool Kit for fundraising events.
  • Donor base: Identify and expand the donor base.
  • Events: Strategize regarding the best practices for fundraising.
  • Calendar: Establish a development calendar for the year.
  • Reporting: Establish a monitoring and reporting system.
  • Policies: Establish development guidelines and policies.
development committee operating plan
DEVELOPMENT COMMITTEE OPERATING PLAN

Step1: Forming the Committee

Step 2: Identifying the Need

Step 3: Provide training

Step 4: Create Promotional and Fundraising Materials—Tool Kit

Step 5: Identify and expand the Donor Base

Step 6: Identifying Fundraising Activities

Step 7: Recognizing Donors

Step 8: Establish a database

Step 9: Monitoring the Plan and Reporting

Step 10: Establish development guidelines and policies

development committee operating plan step 1 forming the committee
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 1: FORMING THE COMMITTEE

Committee Member Selection Criteria:

  • People with a passion for the school
  • People with different strengths, abilities and skills
  • People with connections
  • People with the ability to convince others
  • People who can organize events
  • Select from board members, community members and parents
development committee operating plan step 2 identifying the need
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 2: IDENTIFYING THE NEED
  • Work closely with the school’s accountant to know what is needed to close the year with a balanced budget
  • Formula for determining the needs to be raised annually:

Annual income = Tuition X Number of students + Other income

Annual expenses = List of all the expenses for the year

Annual fundraising amount = Annual expenses - Annual income

  • Example:

Annual expenses: $ 1,300,000

Annual income: $5000 X 180 = 900,000 + $100,000 = $ 1,000,000

Annual fundraising amount: $1,300,000 - $1,000,000

Annual fundraising amount: $300,000

development committee operating plan step 2 identifying the need15
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 2: IDENTIFYING THE NEED

Sample Scale of gifts chart for a $300,000 annual campaign

Number of gifts Gift size Total

1 $30,000 $30,000

2 $20,000 $40,000

7 $10,000 $70,000

10 $ 5,000 $50,000

15 $ 2,500 $37,500

20 $ 1,000 $20,000

30 $ 500 $15,000

40 $ 250 $10,000

100 $ 100 $10,000

200 $ 50 $10,000

300 $ 25 $ 7,500

TOTAL $300,000

development committee operating plan step 3 provide training
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 3: PROVIDE TRAINING
  • Enthusiasm and motivation about fundraising is good but not enough, since very few people are trained in fundraising.
  • We need to empower our board members and volunteers by offering training on “Fundraising Strategies” so we can maximize their efforts.
development committee operating plan step 3 provide training17
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 3: PROVIDE TRAINING

The board members and development office volunteers also need to be trained in the following areas:

  • What is the mission of the school?
  • What are we trying to accomplish?
  • What makes our school special?
  • What has our school so far achieved?
  • Why does our school need money?
  • Why is tuition alone not enough?
  • How much money does our school need to raise?
  • Who supports our school now?
development committee operating plan step 4 create fundraising materials tool kit
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 4: CREATE FUNDRAISING MATERIALS: TOOL KIT

Tool Kit: We need to have an information packet ready.

The Tool Kit will have the following information:

  • School’s Mission Statement
  • School’s Strategic Plan
  • School’s Annual Financial Statement
  • School’s Development Plan
  • School’s Success Stories
  • Testimonials
  • Promotional & Marketing Information
  • Fact Sheets
  • Letters of Endorsement
  • Facts that makes the school stand out
development committee operating plan step 5 identifying expanding the donor base
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 5: IDENTIFYING & EXPANDING THE DONOR BASE

The Development Plan should identify, cultivate and recognize the following donors:

  • The School Community:

Board members

Staff

Parents

  • Masjid Members
  • Muslim Community
  • Muslim Businesses
  • Consulates and Embassies
  • The School Neighborhood and Businesses
  • Foundations
development committee operating plan step 5 identifying expanding the donor base20
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 5: IDENTIFYING & EXPANDING THE DONOR BASE

The following questions will help us to build our donor base:

  • Who participates in our school functions?
  • Who donated to our school before?
  • Who donates time to the school?
  • Who has a passion for our cause?
  • Who is served by the school?
development committee operating plan step 6 identifying fundraising activities
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 6: IDENTIFYING FUNDRAISING ACTIVITIES

Fundraising events focus on both cultivating and soliciting individuals.

1. Friend-raising Events: Cultivation-Point of Entry

Any event throughout the year even if there isn’t an “ask” should be considered as friend-raising

2. Fund-raising Events: Solicitation-Ask

One or two fund-raising events annually

development committee operating plan step 6 identifying the fundraising activities
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 6: IDENTIFYING THE FUNDRAISING ACTIVITIES
  • The following sample events could be planned to raise the $300,000

2 Major dinners $ 50,000 x 2 $100,000

10 Small dinners $15,000 x 10 $150,000

PTO contributions $ 20,000

Annual letter & phone campaign $ 20,000

Scrip $ 20,000

TOTAL $300,000

development committee operating plan step 7 recognize and appreciate donors and volunteers
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 7: RECOGNIZE AND APPRECIATE DONORS AND VOLUNTEERS
  • Donor Recognition Policy
  • Publish an annual report to acknowledge even the small contributions
  • Invite all $10,000 and above donors to a dinner
  • Invite all volunteers to an appreciation dinner
  • Send a letter from the principal to major donors on the use of their gifts
development committee operating plan step 8 establishing a database
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 8: ESTABLISHING A DATABASE
  • Usually if someone donated to an organization most probably they will give again.
  • It is very important to keep a good record of previous donors, to recognize and ask again.
development committee operating plan step 9 monitoring the plan reporting
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 9: MONITORING THE PLAN & REPORTING
  • The Annual Development Plan will be presented to the board in the beginning of the year.
  • At the end of the year, the board will evaluate the development committee according to this plan.
evaluation criteria for value of each fundraiser
EVALUATION CRITERIA FOR VALUE OF EACH FUNDRAISER
  • COST EFFECTIVE: Did the fundraiser produce an income commensurate with the involvement of time and effort of the staff and volunteers?
  • FREQUENCY: How many are held? Are there so many that school supporters are frustrated?
  • STAFF TIME: How much quality time do fundraisers consume by the faculty, office, school board and administrators?
  • SCHOOL IMAGE: Do the constituents of the school perceive the school as always selling something and asking for money?
development committee operating plan step 10 establishing guidelines policies
DEVELOPMENT COMMITTEE OPERATING PLANSTEP 10: ESTABLISHING GUIDELINES & POLICIES
  • Fundraising guidelines
  • Gift acceptance policy
  • Donor recognition policy
board members role in development
BOARD MEMBERS’ ROLE IN DEVELOPMENT

Every trustee need not be capable of making a big gift, but every trustee must be willing to donate early in the campaign, something that is generous for his/her financial ability

typical trustee comments
TYPICAL TRUSTEE COMMENTS
  • I’ll do anything except raise money
  • I give my time, that should be enough
  • I don’t know people who can make big gifts
  • No one told me I’d have to raise money
  • We should raise the tuition instead of asking for money
  • We should raise the tuition instead of asking for money
  • We have the Development Director for fund-raising
major donor cultivation
MAJOR DONOR CULTIVATION
  • Six Stages for the School:

Identify

Invite

Inform

Interest

Involve

Invest

  • Six Stages for Cultivating Donors:

Awareness

Knowledge

Interest

Caring

Participation

Commitment

  • Five Qualities of Effective Cultivation:

Candid

Face to Face

Frequent

Regular

Documented

institutional readiness for development
INSTITUTIONAL READINESS FOR DEVELOPMENT
  • Clear mission
  • Recent Strategic Plan
  • Board Commitment
  • Board and Community Cultivation
  • Effective Marketing Materials
  • Development Plan, Goals and Timetable
  • Adequate Staff and Volunteers
seven steps in creating a major donor pool
SEVEN STEPS IN CREATING A MAJOR DONOR POOL
  • The Prospect – Identified
  • The First-Time Donor – Invited
  • The Repeat Donor – Informed
  • The Established Donor – Involved
  • The Loyal, Frequent Donor – Interested
  • The Major, Committed Donor – Invested
  • The Ultimate Donor – Inspired
checklist for visit to prospect
CHECKLIST FOR VISIT TO PROSPECT

The Homework

  • Know the case for support
  • Know your prospect
  • Know your own pledge first
  • Make an appointment convenient for the prospect
  • Rehearse the conversation

The Visit

  • The introduction
  • The school update
  • The case
  • The fund-raising update
  • The gift request
  • The closure

The Follow-up

  • Send a letter of thanks
askind and negotiation
ASKIND AND NEGOTIATION
  • If you cannot give $200, then would you consider $150?
  • Would you pledge that amount annually for three years?
  • Are you willing to reconsider this? We could return next week and discuss other possibilities?
  • Under what circumstances would you consider making a gift?
  • Will anything change your mind about this program?
  • Would you consider sharing the names of three of your friends whom we can approach for donations?
  • We’d really appreciate learning more about the issues you have raised. Could we set a time to go into this in more detail?
ten reasons why people give
TEN REASONS WHY PEOPLE GIVE
  • They are involved in the organization or the cause
  • Representative from the organization really listen to them
  • Emotions are stirred or their hearts are touched
  • They are confident that contributions are used wisely
  • Someone they know and respect asks them to give
  • They understand that their gift will really make a difference
  • They are clear about the organization’s need for resources
  • They support the mission and want to go forward
  • They receive appropriate recognition for the gift
  • They feel good donating to a deserving charity that produces results
seven reasons people fail to give
SEVEN REASONS PEOPLE FAIL TO GIVE
  • Solicitation came infrequently or poorly
  • Information was lacking about the difference their gift made
  • They never felt wanted or needed
  • The organization did not ask their opinions or include them in plans or programs
  • No one asked them to give again or consider giving more
  • They received no direct, personalized appeal by someone excited about the organization’s accomplishments
  • They gave in the past and their gift went unacknowledged
suggested fund raising activities
SUGGESTED FUND-RAISING ACTIVITIES
  • Business-card size: Please consider donating to my favorite cause, with the school name address, phone number and website
  • Development Director can send out an email solicitation twice a year, with a note asking people to forward the message to their friends and coworkers
  • Donor forms should ask for email addresses and donors can choose to be added to an email list for the school, updating donors of upcoming events and good news
slide38
GOOD LUCK IN BUILDING A

BETTER FUTURE FOR

YOUR CHILDREN!

You can find this presentation and

other resources at www.meritcenter.org.

Please contact us at nozgur@meritcenter.org

for more information other services or consultation.