SPECIAL MEMBER DISCUSSION The State of Nonprofit Sustainability in Mississippi (and what it means for you)
Board Engagement
“Board Engagement”
Program Evaluation
“Program Evaluation”
Cash Management
“Cash Management”
Talent Retention
“Talent Retention”
Sometimes, it feels like grantmakers and nonprofits speak two different languages.
Today’s objectives: To (1) An open dialogue between grantmakers and nonprofits; (2) Collaboration for more financially sustainable programs; (3) More funding for organizational development/capacity building. See Two Sides of the Same Coin Report
Part 1 What’s “capacity building” How do we cross and why should I care? the chasm that often, exists between funders and nonprofit operators, to create sustainable impact?
Jane Alexander Martha Allen
Jane Alexander Wh What role does sustainability • pl play y wi with thin yo your r gra grantm tmaking g pr process? ss? Is Is i it a a f factor i in y your (b (board’s) ) • fu fundi ding g de decisi sions? s? Th The Co Community ty Fo Founda dati tion • ra raise ses s money, to too – ho how has has th this s affe fecte ted d yo your r pe perspe rspecti tive ve, if a at a all?
Martha Allen Ho How do do yo you u fund fund yo your ur missi ssion? n? • Is p Is program s sustainability a a t topic • th that’ t’s s addr ddresse ssed d in a stra strate tegi gic pl plan, or r wi with th yo your r bo board? d? What does a typical month in Wh • fu fundra draisi sing g look like fo for r yo you, and E Extra T Table?
Jane Alexander Martha Allen What keeps you up at night when you think about your (grantees’) fundraising?
Identifying common challenges. Donors want to see their giving Fighting hunger across the state create lasting change. requires significant funding. Endowed/agency funds won’t Limited time to cultivate donors grow without nonprofit capacity. and build campaign plans. Limited discretionary funds Inheriting messy, incomplete data and limited infrastructure. must be leveraged wisely.
Identifying shared strategies. Build strong nonprofit partners Consistently embrace fundraising with capacity to sustain grants as a central leadership priority to increase impact & fight hunger. and build an endowment.
Jane Alexander Martha Allen What have you tried in the past to build fundraising capacity?
Jane Alexander Martha Allen Did it work? What was successful? What was frustrating you?
One year ago…
Capacity-Building Grant Tripled Martha’s Tr • campai cam aign n goal al in n a a first- ever year ever year-end end cam campai aign; n; Paired with a Personal • sed $60, $60,000 000 in n Fundraising Coach Ra Raise net • new revenue new evenue from the he Began analyzing donor data; • ‘A ‘Amazing Ra Rai$e’; ’; Developed a new donor • Id Identified n new m major g gift • cultivation strategy; pr prospe spects ts and d be bega gan ma managing relationships Implemented over 12 months. • with d data & & t technology. (o (out utput uts) s) (o (out utcomes) es)
Jane Alexander Martha Allen What do you feel prevents candid discussion between grantor and grantee?
Jane Alexander Martha Allen What do you need from your counterpart that’s often misunderstood or left unaddressed?
Part 2 What’s “capacity building” Do we have data and why should I care? to quantify these needs on a state- wide level? What should we all do as a result?
Today’s objectives: To (1) An open dialogue between grantmakers and nonprofits; (2) Collaboration for more financially sustainable programs; (3) More funding for organizational development/capacity building. See Two Sides of the Same Coin Report
Th The chal allenges we al all seek k to ad address ar are far ar to too big and complex fo for a any o one o of u f us t to s solv lve.
We must shift from a re responsive to to a a re responsible ap approac ach to change-making.
It’s (y (y)o )our jo job to create a strong, resilient nonprofit organization.
Capacity building is turning best intentions into reality, so our nonprofits create more and more long-term outcomes.
Nationally, funders aren’t keeping pace with needs... nonprofits who are funders increasing increasing budget giving to nonprofits 81% 81% 73% gap 8%
…and individuals in our communities want to help… annual giving to nonprofits by: 15% 15% foundations 80% 80% 5% 5% individuals
…but nonprofits aren’t building donor relationships. SUST SU STAINABILITY BU BUDGET GROW GR OWTH 89% nonprofits over- 93% nonprofits don’t 77% of emerging rely on single-source, nonprofits will struggle budget for unforeseen granted, public funding fundraising expenses to raise last year’s total
7% 7%
Who did we talk with? Greater Gr Wh Which region do Gulf Gu Red Re d Cla lay Pi Piney Statew St ewide The The Del elta Jacks Ja ckson you pri yo rimari rily y serve rve? Co Coas ast Hi Hills Wo Woods Public Pu Ch Children & & Youth Hu Human an Services Arts Ar Ot Other Edu Education ion What’s your mission? Wh Be Benefit Ho How w man any FTE’s No No FTE’s 1 1 FTE FTE 2 2 – 4 4 FTE FTE’s 5 - 10 5 10 25 25 < 11 11 - 25 25 do do you ou employ ploy?
Who did we talk with? What’s your $1M- $1M Le Less than an $250K $250K - $1M $250K $1M $2M $2M+ annual budget? $2M $2M How much do $500K+ $100K $100K – $25K $25K – $500K Le Less than an $25K you raise from $500K $500K $100K $100K individuals? Dev Dev. Who’s responsible De Dev. Board Bo Executive Director Ex Staff St for fundraising? Di Director
Where is the most help needed? Wh What’s your nonprofit’s greatest challenge? Raising Money, Fund Development 83% 83% Financial Management, Accounting 27% Program Evaluation 20% Strategic Planning 18% Human Resources 18% Technology & Infrastructure 7%
the “middle class” of organization capacities highest average gift, smallest donor base smallest budgets, more volunteer-run orgs over-reliance & more access to grant funds largest individual donor bases
Is raising money really that hard? All Participants Individual Giving Last 12 Months 7% (median) Individuals as % Annual Budget 18% (mean) $400,000 (median) Annual Operating Budget $1,565,000 (mean) $32,500 (median) Revenue Raised From Individuals $133,000 (mean) 74 (median) Number of Individual Donors 564 (mean) 10 (median) Number of $1,000+ Donors 46 (mean) $237 (median) Average Gift Size $460 (mean)
7% 7%
Is raising money really that hard? All Participants Individual Giving Last 12 Months 7% (median) Individuals as % Healthy = 70% Annual Budget 18% (mean) $400,000 (median) Annual Operating Budget $1,565,000 (mean) $32,500 (median) Revenue Raised Healthy = $280K From Individuals $133,000 (mean) 74 (median) Number of Individual Donors 564 (mean) 10 (median) Number of $1,000+ Donors 46 (mean) $237 (median) Average = $310 Average Gift Size $460 (mean)
Does capacity vary by region? Individual Giving Donors as Annual Revenue Number of $1,000+ Average Major Gifts By Region % Budget Budget Raised Donors Donors Gift Size % of Base Capital/Jackson 4% $380,000 $10,000 235 8 $297 3% The Gulf Coast 10% $369,000 $32,000 253 7 $214 3% The Delta 21% $143,000 $33,000 26 1 $303 4% Piney Woods 22% $55,000 $11,000 60 2 $183 3% Red Clay Hills 12% $201,000 $10,000 57 4 $206 7% Statewide / All 6% $598,000 $40,000 168 17 $238 10% Others
Does capacity vary by region? Individual Giving Donors as Annual Revenue Number of $1,000+ Average Major Gifts By Region % Budget Budget Raised Donors Donors Gift Size % of Base Capital/Jackson 4% $380,000 $10,000 235 8 $297 3% The Gulf Coast 10% $369,000 $32,000 253 7 $214 3% The Delta 21% $143,000 $33,000 26 1 $303 4% Piney Woods 22% $55,000 $11,000 60 2 $183 3% Red Clay Hills 12% $201,000 $10,000 57 4 $206 7% Statewide / All 6% $598,000 $40,000 168 17 $238 10% Others
Does capacity vary with staffing? Giving by Donors as Annual Revenue Number of $1,000+ Average Major Gifts Staffing % Budget Budget Raised Donors Donors Gift Size % of Base Board 15% $50,000 $3,500 32 1 $109 3% Executive 3% $194,000 $5,000 20 3 $250 15% Director ED + Dev. 4% $1,456,000 $42,000 239 30 $294 12% Director Dev. Staff 9% $1,800,000 $96,000 425 50 $225 9%
Does capacity vary with staffing? Giving by Donors as Annual Revenue Number of $1,000+ Average Major Gifts Staffing % Budget Budget Raised Donors Donors Gift Size % of Base Board 15% $50,000 $3,500 32 1 $109 3% Executive 3% $194,000 $5,000 20 3 $250 15% Director ED + Dev. 4% $1,456,000 $42,000 239 30 $294 12% Director Dev. Staff 9% $1,800,000 $96,000 425 50 $225 9%
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