Capital Campaign Readiness Is Your Organization Prepared for

Capital Campaign Readiness: Is Your Organization Prepared for Success? AFP Monterey Bay Summer Summit 2016 Ted Blackburn Senior Vice President, CCS June 21, 2016

About CCS § Established in 1947 § Offices in San Francisco, Southern California, New York, Baltimore, Boston, Chicago, Seattle, St. Louis, Dallas, Washington D. C. , London, and Dublin § Comprehensive fundraising consulting and campaign management firm § $10 B+ in financial goals for 250+ clients under management § Deep cross-sector experience in education, healthcare, arts and culture, human services, religion, advocacy, and more § Professional staff of more than 275 executives and directors 2

Select CCS Experience Bay Area Discovery Museum Sausalito, CA Castilleja School Palo Alto, CA Common Sense Media, San Francisco, CA De La Salle High School, Concord, CA Community Hospital of the Monterey Peninsula, CA Diocese of San Jose, CA The Draper Richards Kaplan Foundation, Menlo Park, CA Episcopal Diocese of California San Francisco, CA Fair Trade USA Oakland, CA Head-Royce School Oakland, CA Lick-Wilmerding High School San Francisco, CA Marin General Hospital Foundation, Greenbrae, CA Mother Jones San Francisco, CA The Presidio Trust San Francisco, CA San Francisco Art Institute San Francisco, CA Second Harvest Food Bank of Santa Clara and San Mateo Counties, CA UC Hastings College of the Law San Francisco, CA UCSF Medical Center San Francisco, CA Washington Hospital Healthcare System Fremont. CA YMCA San Francisco, CA 3

Why a Campaign? WHAT WHY • • • Inspire new dollars for extraordinary needs An intensive, focused fundraising effort Vehicle of transformational gifts Defined by specific case elements or themes Case elements defined by strategic planning Set within a specific period of time • • Fund transformational or critical needs Culmination of strategic and/or facilities plans Elevates giving culture Context for major gifts and engagement with philanthropists and foundations Urgency and excitement Marshal leadership, board, volunteers, friends and staff to common goal Ancillary benefits Giving societies, planned giving, naming opportunities • • 4

Essential Early Questions What type of a campaign? Do we have a compelling and urgent case? Do we have the expertise to succeed? Do we need to engage counsel, and what type? Whom do we involve in the planning process, and when? Do we have the prospects to proceed? Do we have adequate staff resources? Is there institutional consensus to proceed? What types of gifts will be accepted? Is a campaign the only/best way to proceed? 5

Key Campaign Objectives • Accelerate goals, mission, and impact • Meet and exceed financial objectives • Involve new and existing volunteers to meet specific campaign needs • Raise level of awareness about needs and benefits of proposed project • Maintain and strengthen annual financial support from current donors • Enhance the philanthropic culture • Showcase organization’s distinctions 6

Core Campaign Elements Case: rationale behind the initiative Plan: strategy, emphasis on major gifts and real money Core Elements Leadership: those who advocate for the cause Prospects: organization’s natural constituency 7

Campaign Planning 1. Planning study 2. Setting a goal 3. Case statement 4. Leadership roles 5. Campaign organization 6. Prospects 7. Campaign plan 8. Timetable 9. Campaign Budget 8

Planning Study Strategies The first phase of any successful campaign Personal engagement Strategic conversations and discussions Dynamic process 9

Planning Study Outcomes • • A plan and blueprint for the campaign How much you can raise Timeline, organization, phases Policies, recognition Leadership, staffing, roles, responsibilities Sequencing strategically top 10, top 20 requests Differentiated engagement strategies for each prospective donor, i. e. , detailing your needs as well as meeting donor interests 10

Planning Study Tactics Develop a steering committee Develop study materials Conduct many personal interviews Broader outreach with e-surveys or mail 11

Setting a Goal § Rooted in need, but not need alone § Dependent on strong fundamentals: – Case, Leadership, Prospects, Plan CASE LEADERSHIP PROSPECTS PLAN § Tested during planning study § Must be attainable § Comprehensive or over and above? § NOT solely dependent on one lead gift or handful of gift indications § NOT a mathematic equation § ALWAYS use a table of gifts 12

Case Statement § The official story of the campaign § Characteristics: concise, compelling, urgent, and communicates impact § Rooted in strategic planning § Typically includes the following elements: – Mission and vision – History of organization – Where it is today and challenges that exist – Where it wants to be in the future – Why it matters and how it can solve problems - IMPACT – Cost Estimates – Benefits and outcomes – Call to action 13

Leadership § Includes internal (CEO, staff) and external (Board, Campaign Committees) § Responsible for success of campaign § Leadership must: – Be involved in the planning process – Follow the plan – Advocate – Make significant gifts – Review prospect lists – Open doors – Solicit others – Host receptions 14

Leadership - Volunteer and Staff Roles Volunteers • • • Make gift Identify prospects Cultivate interest Solicit gifts Share their passion Provide buy-in and credibility Staff/Counsel • Provide strategy • Prepare all operational materials • Conduct prospect research • Brief volunteers • Manage all activity • Motivate and provide confidence 15

Campaign Organization & Structure § Simple § Drive activity, not fill boxes § Campaign Steering Committee or Cabinet § Chair or Co-Chairs § Executive/staff leadership § Board leadership § Monitor progress constantly § Weekly meetings with internal team § Regular Steering Committee meetings 16

Consider This… Campaign Cabinet Campaign Core • 8 to 12 members/donors • Assists with prospect identification and engagement • Assumes the assignment of prospects for immediate action • Cultivates and solicits prospective donors • Meets monthly to report progress and activity • • • CEO CDO Campaign Co-Chairs Campaign Director Manages day-to-day activity of the campaign • Maintains a focus on activity • Actively engages prospects 17

Prospects Previous donors are the best prospects • Lifetime • Largest • Last three years Top – down approach • Best prospects first • Largest donors first • Best donors by constituency Best Prospects Inside – out approach Lead Prospects • • • Move the needle • Determine success Closest friends first Membership Other Groups General public 18

Campaign Principles Phased Personal Proportionate Pledges Donorcentered Specific requests for gifts according to ability/interest Gifts over time allow for extraordinary commitments Provides momentum and credibility Builds community Elevates sights Helps plan cash flow Silent, not secret Results in larger gifts Strategic, thoughtful approach 19

More Planning Considerations Wide universe of prospective donors, not narrow Assertive request levels Specific requests Open to creative, unconventional approaches in some instances Pledges over time Matching gifts Board phase at the appropriate time 20

Campaign Plan Essentials • • • Case overview Timeline Phasing Organizational structure Roles and responsibilities Table of gifts Marketing/communications plan Goals and benchmarks Budget Donor recognition plan Gift acceptance policies • Explains overall campaign strategy and methodology • Builds confidence – demonstrates strategic thinking and organization 21

Campaign Process 22

Timetable Momentum and urgency are critical! I. Campaign Planning II. Organization III. Lead Phase IV. Public Campaign V. Celebration/ Stewardship Begin: Launch: Continue: • Strategic planning • Public announcement • Exceed goal • Public awareness and publicity • Ongoing donor cultivation and stewardship • Financial goals and objectives • Planning study • Institutional readiness Establish: Initiate: • Campaign cabinet • “Quiet” fundraising • Campaign leadership structure • Detailed campaign timetable • Lead-gift naming opportunities • Strategic gifts by constituency (corp. , foundation, etc. ) • Constituent campaigns fully activated: • Corporations • Foundations • Community • Volunteer groups • Accountability and reporting to donors • Donor recognition program • Pledge redemption 23

Campaign Strategies vs. Conventional Wisdom § Everything is personal § Leadership giving § Board(s) phase § Quiet phase § Going public § Public phase 24

Activity is Essential – Measure it! 25

Campaign Budget § Many costs will be upfront – Operational costs of conducting the campaign during the active phase of fundraising – Straightforward, direct expenses related to campaign activity – Often $0. 05 to $0. 10 cents on the dollar raised § Budget should include: – Material design – Printing – Transportation – Meeting costs – Counsel and/or vendors – – Postage Office space/supplies Pledge redemption Prospect screening Campaign budgets are different from the construction or program budgets 26

Pitfalls to Avoid No phases The never ending campaign Lack of staff attention / resources Poor planning Lack of direction, management, activity Lack of leadership, unity Weak / poorly defined case Pitfalls Complacency 27

Final Thoughts – Top 10 Tips 1. Campaign should reflect institutional strategic planning 2. Recognize, consult, and include all insiders 3. Consider a feasibility study to test the case and goal 4. Engage the Board in early collaborative steps 5. Determine difference between campaign and annual pursuits 6. Emphasize transformational nature 7. Commence with donor identification and prospect qualification early 8. Set a realistic campaign timeline and goal 9. Focus on big gifts and activity 10. Move ahead only when you are assured that the campaign is the institution’s top priority 28

Comments and Discussion 29

Contact Information Ted Blackburn Senior Vice President CCS tblackburn@ccsfundraising. com Office | 415. 392. 5395 Toll Free | 800. 227. 3834 www. ccsfundraising. com https: //www. linkedin. com/pub/theodore-blackburn/5/67 a/551 https: //twitter. com/CCSFundraising https: //www. facebook. com/ccsfundraising 30