ESTABLISHING A FUND DEVELOPMENT PROGRAM

The fundamentals of good fundraising have changed little since the advent of American philanthropy. Over two hundred years ago, Benjamin Franklin wisely wrote the principles that still apply:

"My practice is to go first to those who know the cause and believe in it, and ask them to give as generously as possible. When they have done so, I go next to those who may be presumed to have a favorable opinion and to be disposed to listening and secure their adherence. Lastly, I go to those who know little of the matter or have no predilection for it and influence them by presentation of the mission and the names of those who have already given. Do not neglect those who you are sure will give nothing, for in some of them, you will be mistaken."

Successful fundraising by any organization depends first and foremost on having a mission and services that are seen as necessary and effective. Beyond that, there lies a mixture of tangible and intangible factors that, when properly blended together, help to build a solid fund development program.

Some of what must be done lies in the organizing and implementation of a good fundraising plan. Organizing effective meetings and events, supporting staff and volunteer leadership, and responding to prospects and acknowledging donors in a timely manner are critical elements to success. Equally important are the more subjective factors that must be considered including timing, economic climate, the quality of the professional and support staff, the willingness of the organization to support fund development efforts, and the partnership that exists between board members, volunteers, and staff.

What follows is a self-assessment tool designed to help evaluate organizational readiness for establishing a professional fund development program. While many of these are time-tested measurements, they do not necessarily answer every question. Nor will they automatically point you to the right starting point. Whatever your organization decides, be sure that the decision is supported by a well thought out plan of action and the backing of the entire organization…top to bottom.

Your assessment should include the review of certain in-house and external data and materials:

  • Mission statement
  • Samples of organization’s promotional materials
  • Case for support (one page):
  • What are the critical issues being addressed by the organization?
  • What solutions does the organization offer?
  • Why support is needed?
  • What will be achieved if the organization is successful?
  • Summary of organization’s strategic plan
  • Completion of the attached assessment tools

The reconciling of all of this information should provide you with adequate data, as well as valuable internal/external opinions to help make your decisions.

Fundraising Readiness Checklist

The following checklist and rating scale are not scientific. Rather they are designed to help in the overall preparation for establishing a fund development program. It is recommended that several representatives of the organization fill out a checklist. Then compile the average scores for each question from all respondents.

0 = Not sure or no opinion 1=disagree strongly 2=disagree somewhat 3=agree somewhat 4=agree strongly

Cultural Readiness / The organization’s mission reflects the true content of its services.
The organization has a clear vision for and strategic plan of action.
Morale among staff and board members is strong.
Staff support for starting a fund development program is strong.
There is agency-wide acceptance of the vision/direction of the organization.
Leadership understands the financial needs of the organization.
Infrastructure / The organization's leadership has the resolve to move the agency forward.
It is clear that the organization provides quality services with demonstrated impact.
There is a demonstrated demand for the services provided or being developed.
There are well-developed program goals and objectives driving the fund development needs.
The organization is financially stable or has a well-developed plan to get there.
The organization is seeking to establish a fundraising program from a position of strength rather than due to an immediate funding crisis.
Community Support / The community is well informed of organization news and events.
There is a strong branding effort [marketing/public relations] supporting the organizations programs.
The organization is known and respected in its community.
There is high-level community leadership on the organization’s board of directors and in other volunteer roles.
Donor / Prospect potential / Those in leadership can articulate the agency's mission and vision and are willing to do so within their circles of influence and to the broader community.
The board of directors generously supports the organization with their time, talents, and financial resources.
The organization has a diverse base of financial support from individuals, businesses, churches, civic groups, foundations, government agencies, etc.
Within the community, there is an adequate pool of current and/or potential individual, corporate, church, civic, and/or foundation donors to warrant new fundraising efforts.

TOTAL SCORE

RESULTS

0 - 50 / The organization needs additional preparations before taking the next step in its fund development program.
51 – 70 / With continued attention to the low rated areas, the organization could successfully establish a development office.
70 – above / The organization should be ready to establish a fund development office, if it follows a well developed plan and is supported by the entire organization.

How many people participated in this assessment checklist?

StaffBoardCommunity Leaders

Please share any additional observations or insights into your organization that you feel important to this evaluation process.

Gift-Range Table

In the most recently completed fiscal year, provide the following breakdown of the gifts to your organization. If your organization's giving range is significantly higher or lower than this chart, feel free to change the amounts to more accurately reflect your organization’s position.

Program year:

Giving Range / # of Donors / Dollars Raised / Average Gift Size*
$25,000 +
$10,000 - $24,999
$5,000 - $9,999
$1,000 - $4,999
$500 - $999
$250 - $499
$100 - $249
Under $100
TOTAL / ############
############
Overall Average Gift Size / ############
############ / #############
#############

*average gift size is calculated by dividing the dollars raised by number of donors.

Five Year Giving History

As much as you can, please provide your fundraising data over the past five years.

Revenue Objective / Dollars Raised / % of objective / Size of prospect pool / # of donors / % of pool giving / # of new donors / # of non-renewals
Year 1
(most recent)
Year 2
Year 3
Year 4
Year 5

Community/Constituency Profile and Trends

It is important to identify the fundraising potential within your community. Evaluate your community, listing data or opinions related to your community’s giving environment.

DEMOGRAPHIC DATA
[i.e. population; socio-economic data; business sector data; annual household income; etc.]
ECONOMIC CLIMATE
[i.e. unemployment rates; business openings, closings, and layoffs; etc.]
COMPETITION
[similar providers; other nonprofits; etc.?]
COMMUNITY PHILANTHROPY
[evidence of individual, corporate, church and foundation giving, etc.]
OTHER INFORMATION

Prospect Assessment

Assess your targeted audiences, ranking them (with 1 being the best) by their charitable interest.

Audience / Trends / Opportunities/Issues/Concerns / Rank
Alumni
Board of Directors
Businesses
Churches and/or Religious groups
Clients
Foundations
Grassroots individual donors
Local philanthropists
Staff
Others

Reference:

Dennis J. Murray. The Guaranteed Fundraising System: A systems approach to developing fundraising plans. New York: American Institute of Management. 1994.

Lynda Lysakowski, ACFRE. Establishing Your Development Office. Association of Fundraising Professionals Ready Reference Series for Professional Fundraisers. Virginia. 2002.

Kate McGuire, When to Hire Development Staff? Common Ground, A publication of the NC Center for Nonprofits. May-June 1997 issue.

Rebecca K. Leet, "Are You Ready for Fund-Raising?" Strategic Governance, Vol. 3.1, Aspen Publishers, Inc. 1997.

Brigette Sarabi, "Fundraising Readiness: How does your agency stack up?" The Grantsmanship Center Magazine, Summer 1997 issue.

William W. Tromble, Excellence in Advancement: Applications for Higher Education and Nonprofit Organizations. Maryland: Aspen Publishers, Inc. 1998.

Prepared for The Duke Endowment, Child Care Division

by Bert Armstrong

October 2, 2002