Taking Fund Development to the Next Level C

Taking Fund Development to the Next Level (C) 2005 BBBS & The Osborne Group, Inc.

National Averages • Year to year anticipated growth – 5% to 6% annually • Strategic growth – double digit – Campaigns or major programmatic or circumstance changes (C) 2005 BBBS & The Osborne Group, Inc.

Double Digit Growth (C) 2005 BBBS & The Osborne Group, Inc.

Sustained double digit FD growth • Invest in FD • Improved BFKS, RMM, LMBM, major gifts • More 6 and 7 -figure gifts • Less reliance on a few donors • New, high-value corporate relationships • Strategic multi-year foundation gifts (C) 2005 BBBS & The Osborne Group, Inc.

Balanced Portfolio $5, 000

Balanced Portfolio $10, 000

BBBSA Philanthropy Update • Seed capital for investment • FD Information and training • FD technology (C) 2005 BBBS & The Osborne Group, Inc.

The Tarnside Curve of Involvement High Taking Personal Responsibility Ownership Giving Commitment Engagement Low Awareness Low Interest INVOLVEMENT High

Boomers Giving More* *Donor Trends Project Study 7. 05 • 33% plan to increase giving in next five years – 12% WWII • Average gift $1, 361 – $1, 138 WWII • 40% plan to leave charities in their will – 23% WWII (C) 2005 BBBS & The Osborne Group, Inc.

High Giver Profile* *2005 CMS Prime Group Study • 77% of $1, 000+/year donors give to a few favored groups every year • 58% say they are knowledgeable (compared to 38% of total respondents) • Prefer established groups (C) 2005 BBBS & The Osborne Group, Inc.

High Giver Profile* *2005 CMS Prime Group Study • College degrees • 48% want to be seen as “members” of the group • More likely to give a portion to the church (61%) 11

Giving Levels Tied to Loyalty* CMS Prime Group Study • As giving amounts increase, reported loyalty rises as well • 81% of $1, 000+/year donors say they are highly loyal • WWII most loyal (C) 2005 BBBS & The Osborne Group, Inc. *2005

Organizations are Losing More Donors* • Median loss of 47. 8% in 2004 • 45. 9% in 2003 *Target Analysis Group study of DM donors (C) 2005 BBBS & The Osborne Group, Inc. 13

First Year of Giving Matters!* *Target Analysis Group Year One 40% Renew Years Two-Four 65% Renew Years Five Plus 85% Renew (C) 2005 BBBS & The Osborne Group, Inc.

Why $1, 000+ Donors Stopped Giving* *2005 CMS Prime Group Study • Can no longer afford • Interests changed • Found more effective organization • Disagree with organization • Dissatisfied with performance • Not sure my gift made a difference • 64% • 40% • 36% • 35% (C) 2005 BBBS & The Osborne Group, Inc. 15

Why $1, 000+ Donors Stopped Giving* *2005 CMS Prime Group Study • Issues was solved • Haven’t been asked • Didn’t keep me informed • Other • Didn’t keep me involved • 13% • 12% • 8% (C) 2005 BBBS & The Osborne Group, Inc. 16

Boomers More Likely to Stop Giving due to Performance* *2005 CMS Prime Group Study • More effective group, dissatisfaction, disagreement – Boomers 40% – WWII 34% – Gen X 32% • Not sufficiently informed or involved – Boomers 44%, WWII 39%, Gen X 42% (C) 2005 BBBS & The Osborne Group, Inc.

Philanthropy Success Factors • Vision • Strategic Goals and Plan • Multi-year Revenue Plan – “Bottomed Up” – Covering short term needs/contingencies – Projecting for long term needs/investments • Fundraising Priorities and Costs (C) 2005 BBBS & The Osborne Group, Inc.

Philanthropy Success Factors 1. Resourced philanthropy office 2. CDO with skills and commitment 3. Involved CEO 4. Committed Board with the capacity and inclination to give 5. Balanced portfolio 6. Major Gifts and Stewardship focus 7. A “pipeline” of prospective donors (C) 2005 BBBS & The Osborne Group, Inc.

Increased Board Capacity and Commitment (C) 2005 BBBS & The Osborne Group, Inc.

Enough Identified Prospective Donors • Based on Table of Gifts • Minimum of 500 able to give $1, 000 and more • $5, 000 a year requires 650 able to give $1, 000 to $500, 000 • $10, 000 requires 1, 200 able to give $1, 000 to $1, 000 (C) 2005 BBBS & The Osborne Group, Inc. 21

Focus on Major Gifts from all Sources -- Highest ROI* % of Revenue from Major Gifts Highest Fundraising Performers 51% 35% 16% 11% Top 25% Second 25% Third 25% Bottom 25% *The Advisory Board Study of Top Performing Fund Development Offices (C) 2005 BBBS & The Osborne Group, Inc.

Staffing the Functions • Chief Development Officer – Strategy – Management – Major Gifts/staff CEO Priority #1 • Corporate and Foundation Giving/Grant-writing • Data entry, Reporting and Research • Development Assistant and Stewardship • Special Events – Fundraising – Cultivation – Bowl for Kids Sake • Individual Giving – Annual Appeals – Raising More Money – Leadership Gifts 23

A Model for $5 M Agencies (C) 2005 BBBS & The Osborne Group, Inc.

A Model for $10 M Agencies (C) 2005 BBBS & The Osborne Group, Inc.

Enhancing Your Plan • Based on Philanthropy Success Factors© Assessment – Gather needed data – Complete with ADD • Identify high impact fixes • Enhance plan • Monitor progress • Discuss results • Identify strengths (C) 2005 BBBS & The Osborne Group, Inc. 26

Building on Strengths High Impact Fixes • Easier to move from good to great than from poor to better • Highest impact, easiest to execute • Must dos (C) 2005 BBBS & The Osborne Group, Inc. 27

The Giving Cycle Identify the “Critical Few”: those with the greatest capacity to give Acquiring donors to BBBS Creating & sharing the BBBS story Providing stewardship and accountability Developing a relationship Saying thank you Asking for a specific amount Engaging and Involving Preparing to ask (C) 2005 BBBS & The Osborne Group, Inc.

Stewardship=Joy=More Gifts! (C) 2005 BBBS & The Osborne Group, Inc. 29

Stewardship • • Plan Calendar Materials Creativity IMPACT AND ACCOUNTABILITY Regularity Personalized for best donors and donors with highest capacity (C) 2005 BBBS & The Osborne Group, Inc.

Other High Impact Fixes and Must Dos • • Vision and vision visits CDO and staffing Training Board development (C) 2005 BBBS & The Osborne Group, Inc.

Laser Focused Execution • Strengths, Fixes • Staffing • Systems and technology • Budget • Prospects • Board (C) 2005 BBBS & The Osborne Group, Inc. 32

Your Donor Pool Comes From… gs S BFK Bi l a u id v di s ft i G In RM M Web Site Corporate Donor Pool Sponsors Ca use - Eng marki l a i ec ts p S en Ev Ma rke Re tin lat g ed 33

Segment Your Pool Based on Capacity Critical Few Leadership Everyone Else (C) 2005 BBBS & The Osborne Group, Inc.

Create a Plan for Each Segment • Top BFKS supporters – givers and organizers • Top RMM donors • Top corporate, foundation, individual donors • High capacity low givers • Board members • Everyone else • • • Stewardship Communications Visits Engagement Solicitation (C) 2005 BBBS & The Osborne Group, Inc. 35

Special Plan for Board Development • 320 Assessment • Where do you want to be? • Getting there! (C) 2005 BBBS & The Osborne Group, Inc.

Monitoring and Reporting • What is the Board asking for and receiving? • What is the CEO asking for and receiving? • What is the CDO looking at daily, weekly, monthly, quarterly, annually?

Progress Against Goals • Sources and Purposes • Year to year Corp Found Ind Goal Matches Capital Infra. Other 38

Some Key Indicators • % of name by name donor retention • % of upgrades • % of pledge fulfillment • Yes ratio • Ask to Amount ratio (C) 2005 BBBS & The Osborne Group, Inc. 39

Moves Management Name Cap Read Ask Move Date Who Joe $250 k 0 -3 $100 k 2. 12 KEO Mary $100 k 9 -12 $100 K 2. 22 JM Sally $50 k 0 -3 $10 k 1. 31 JM Tom $25 k 6 -9 $25 K 1. 5 JM

Dashboard Prospects and pipeline Board giving and getting Visits and engagement Plan execution and results (C) 2005 BBBS & The Osborne Group, Inc.

Resources and Tools • Philanthropy Success Factors© • New national hire • Regional and National Conferences • New Toolkit (C) 2005 BBBS & The Osborne Group, Inc. 42