A Fundraising Plan for Nuçi’s Space
by
Rebecca Born
Brent Buice
Christine Gaston
Marisa Goodwin
Lemuel LaRoche
April 26, 2003
MNPO 6060
Dr. Holland
HISTORY & INTRODUCTION
The Nuçi Phillips Memorial Foundation, Inc. also known as Nuçi’s Space, has a unique history behind its warehouse walls located on the corner of Oconee St. and Williams St. in Athens, GA. The concept of Nuçi’s Space was born from the grief of a family, the Philips, over their son and brother Nuçi’s suicide. As you know, Nuçi suffered from clinical depression. His way of coping with his pain and finding healing was through his music. Eventually, though, tired of constantly battling with feelings of depression, Nuçi ran out of energy and killed himself on Thanksgiving Day in 1996. Inspired by their personal loss, the Philips family wanted to create some sort of “safe place” for other musicians who might be in need of help but unable to find and/or pay for it. Thus, the Nuçi Phillips Memorial Foundation was born. The organization’s name quickly got shortened to Nuçi’s Space, which, in Founder and President Linda Philips’ words, is symbolic of “the space in the corner of our hearts, where our love for Nuçi will always be kept”. On September 30, 2000, Nuçi’s Space opened its doors to the public.
MISSION AND CURRENT PROGRAMS
Although many reasons are given as to the purpose of Nuçi’s Space, no formalized mission statement exists as of yet. Following the strategies of successful nonprofits, we would propose a mission statement two or three sentences long in which the driving force behind the organization is expressed in a succinct and appealing manner. A revised mission statement might say:
Nuçi’s Space is a resource/support center dedicated to promoting the emotional, physical, and occupational well being of the music community. It is our mission to provide a stable, caring environment within which a musician’s various occupational, emotional, and physical needs can be met and nurtured.
To accomplish this de facto mission, Nuçi’s Space provides numerous programs and services, including:
· Affordable, high-quality practice space for local musicians
· Regular workshops on ethics and professionalism in the music industry
· A resource library, featuring Internet access, resume software, and books on musicians, depression, and mental health
· Nominally priced mental health counseling and therapy
NEEDS & GOALS
These programs are highly successful. Since September 2000, Nuçi’s Space has helped over 150 musicians receive professional counseling. Although technically musicians are the only group available for low-cost help, Nuçi’s Space does not turn anyone away. According to Linda Phillips, president and founder, “anyone seeking help at Nuçi’s will find it.” The practice space rental, however, is often so popular that Nuçi’s Space is forced to turn musicians away. Likewise, the room housing the resource library is frequently crowded, and so many books are offered as donations that the Nuçi’s Space is already out of shelf space.
This popularity poses a happy challenge for Nuçi’s Space, the need to physically expand facilities so that more musicians can practice, more books and computers can be made available, and, if necessary, more space is provided for on-site counseling. Nuçi’s Space can only met this challenging goal through a focused capital campaign, and our recommendations for a comprehensive fundraising plan will likely help secure the assets needed for Nuçi’s Space’s growth.
We believe that Nuçi’s Space can succeed in its mission of providing a stable and caring atmosphere in which a musician’s entire self- emotional, physical and occupational- can be nurtured. The Space’s success will be determined by its commitment to developing a comprehensive fundraising strategy. We offer you, the Board and staff, what we believe is a diversified, assessment-based plan for securing Nuçi’s Space’s financial well being. Our plan is divided into several sections, corresponding to a particular fundraising approach and philosophy. While each tactic is distinctive, it is imperative to realize that no strategy exists in isolation. Taken together, our recommendations comprise an efficient, visionary strategy for fundraising. The steps are:
1. SWOT Analysis
2. Annual Giving
3. Major Gifts & the Case Statement
4. Grants
5. Publicity & Special Events
I. S.W.O.T. ANALYSIS
Once Nuçi’s Space focuses its mission statement, the next item on the agenda should be to sit down and participate in a process called strategic planning. This is a process where the board, staff, and stakeholders gather and brainstorm about the future of Nuçi’s Space. Some concepts to consider are: What type of programs would we like to conduct? What current programs should we keep? Are there any we should we discontinue? How do we plan to fund these projects? What are the ultimate goals of Nuçi’s Space? These questions will help Nuçi’s Space develop a long-term plan for programs, operations and the corresponding fundraising.
Another help tool for strategic planning is called a S.W.O.T analysis. This acronym stands for strengths, weakness, opportunities and threats, with strengths and weaknesses, being internal issues and opportunities and threats being external issues.
S
- Committed staff & volunteers- Enthusiasm for training
- Beautiful facility /
W
- Lack of knowledge in formal fundraising- No formalized mission statement
- Fundraising stigmatized
O
- Excellent reputation- Athens’ strong music community
- Large student population next door /
T
- Low name recognition in minority populations- War & poor economy
- Transience of clients/volunteers
The primary strength of Nuçi’s space is its wonderful, devoted staff. Their enthusiasm is contagious and is really the backbone of this organization. Paradoxically, the staff is also the primary weakness. While enthusiastic, they are also very inexperienced in the world of non-profits. Once they overcome the stigma they associate with fundraising, we are certain they will grow exponentially.
The primary opportunity we associate with Nuçi’s Space is its incredible location within Athens. The Athens music scene is legendary and grass roots bands are prolific in the area. This means that there are many musicians who would both support the organization and patronize the organization, depending on their needs at the moment. The main threat to any non-profit at this time is the economy, however as the war slowly comes to an end, hopefully the economy will improve and this threat will lessen.
Keeping these observations and trends in mind, Nuçi’s Space can now proceed to examine specific fundraising options, such grants from private foundations.
II. GRANTS
Currently, Nuçi’s Space receives around $45,000 a year in grants. This is over 17% of their total income. This is a tremendous asset and unlike many grants, these are unrestricted. This is an unusual occurrence in grant situations. This may be because board members from both of the granting agencies are personal friends with the director. This is an invaluable resource at the moment, but, as we know, board constituencies can change. In order to ensure that Nuçi’s Space continues to thrive in the future we suggest diversifying the grant income.
As described above, Nuçi’s Space indicates that it would like to secure a grant to cover building expenses, especially for more resource space like an expanded library. Yet, capital campaigns rarely are able to achieve grant funding. A strategic plan can alleviate this situation though, by identifying the resource library as a program, rather than a capital, expense.
We have identified a wonderful match for Nuçi’s Space in the Ittleson Foundation. This foundation has granted a tremendous amount of money in the last few years to innovative mental health organizations. They are also are willing to fund on-going projects. We have prepared a letter of inquiry in accordance with the Ittleson Foundations requests with a description of our programs (see Appendix). We submitted a proposal for funding the new contents of the new library as well as income for an additional physician. We are confident that the Ittleson Foundation will be very interested in our organization. We have also identified other possible grant agencies including, The Bear Hug Foundation, which provides health care, mental and other wise to musicians, the National Institute of Mental Health, and the National Endowment for the Arts, both of which are governmental agencies with matching programs.
Once Nuçi’s Space secures one or more of these grants they will be able to use their current unrestricted grants and other funds to further their capital campaign. Daily expenses, such as lease payments, salary, and bills, can be covered by an assertive annual giving campaign, which we will now explore.
III. ANNUAL GIVING
Overview
Annual Giving is the foundation of the fundraising program. Monies earned from this program, usually unrestricted, provide the general operating support for the organization. Gifts are generally raised once a year (though proper number of solicitations are debatable), are received within a one-year period, and ideally are repeated on a yearly basis. Direct mail is the most commonly used technique, followed by special events, letter and follow-up call, and personal solicitation.
Though the average gift received through annual giving is $50.00, annual giving functions as a key component of the fund development program. Aside from providing general operating support, it serves to acquire new donors, instill repetitive giving, cultivate donors while hopefully upgraded gifts, and identify lead givers. Detailed, accurate records should be kept in order to track information on general giving patterns and progress, as well as to identify individual/idiosyncratic behavior. Knowledge gained through tracking should be evaluated and shared with persons responsible for the Major Gifts Program, which we will address later, in an overall strategy to increase fundraising effectiveness.
Nuçi’s Space’s Current Annual Giving Program
Nuçi’s Space’s (“the Space”) Annual Giving Program is primarily centered around one mailing, implemented each year in December. This letter is sent to approximately 130 close friends and family members, all who have given to the Space in the past. Last year’s letter included a review of activities and services provided in 2002, examples of visibility received by the Space over the course of the year, suicide statistics and other current information related to teenage suicide. The letter was written by President and founder, Linda Phillips, and is very personal and emotional. Ms. Phillips takes the opportunity to educate supporters, thank them for past support, and ask for future support all in one letter. $8,695.00 was received as a result of the 2002 Annual Giving campaign- 7% of total contributions. This figure is to be expected considering the unequal distribution of wealth in the United States.
As noted, the letter is mailed strictly to friends and family members who have financially supported the Space in the past. Ms. Phillips explicitly conveyed that she does not ask “strangers” (i.e., non-friends/family members) for money. We view this attitude as the fundamental weakness of the annual giving campaign. Therefore, our principal recommendation is to broaden the base of potential annual givers.
Analysis of Current Situation & Suggestions for Improvement
Potential Givers:
Because we know that the primary reason people give to nonprofits is because they are asked (to give to a cause they believe in), it follows that Ms. Phillips should ask more often. This process will begin with Ms. Phillips drafting an additional annual giving letter, one that is less personal and more forthright. More emphasis on programs and services and less on anecdotes of publicity received by Nuçi’s Space will serve to motivate potential donors to become more engaged. This mailing should not be considered a Direct Mailing because each recipient will have had some personal contact with the organization. This may require personal phone calls and visits from Nuçi’s Space personnel before “the Ask” is made.
There is debate among professional practitioners regarding the numbers of times appeal letters should be sent in a one-year period. Proponents argue that it is not unreasonable or greedy to ask donors for a second (or third, or fourth) gift. After all, churches ask their congregations to give 52 times a year. Conversely, opponents claim that people who have given may feel unappreciated and offended by repeat appeals. Statistically, according to the Independent Sector, 11% of givers respond to repeat requests.
We recommend implementing no more than two mailings, and targeting repeat appeals to givers who are not major gifts candidates. Contact information for major gifts prospects should be passed along to the major gifts officers (i.e., Ms. Phillips and the board).
Ideally, a focus group would be formed to study the reactions to a second mailing. A mock solicitation letter could be created and a group of twenty donors could be surveyed. This way, fundraising personnel could gather useful information concerning whether or not this would be a valuable, worthwhile effort.
Two clear, directly related constituencies in Athens are music related businesses and mental health related businesses. First, prospect researchers (hopefully interns and other volunteers), need to identify owners and managers of these businesses. (See Appendix for “List of Leads.”) Nuçi’s Space already has relationships with a number of these businesses, and could articulately convey the need for a relationship with the others. Following is a suggested outline of objectives related to broadening support.
Goal: Nuçi’s Space will increase Annual Giving Program efforts so as to broaden support, cultivate donors, and identify leaders.
o Objective: To appeal to a broader base of potential annual givers through targeted solicitation.
Activities:
· Include decision makers in the desire to increase annual giving efforts.
· Create another letter, to be mailed out to non-family & friends.
· Utilize interns and other volunteers in identifying individuals to add to the mailing list.
· Utilize interns and other volunteers in implementing the mailing.
· Utilize interns and other volunteers to make follow-up calls (e.g., “Did you get our letter? What did you think about it?”)
· Follow up with appropriate forms of appreciation
· Acquire permission from currently uninterested parties to keep them informed about the organization’s activities.
o Objective: To use the Annual Giving Programs as an opportunity to strengthen donor relationships and encourage repeat and upgraded giving.