DEVELOPMENT PROGRAM FOR ISLAMIC SCHOOLS

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DEVELOPMENT PROGRAM FOR ISLAMIC SCHOOLS

• FUND-RAISING OR FRIEND-RAISING?
• NECVA OZGUR
• April 2006
• www.meritcenter.org
• nozgur_at_meritcenter.org

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OUTLINE

• Defining Fund-raising / Friend-raising /
  Development
• Mission of Development Program
• Development Committee Operating Plan
• Board Members Role in Development
• Guidelines and Strategies for Fundraising
• Things you need to know before you ask for
  donations

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• FUND-RAISING
• FRIEND-RAISING
• DEVELOPMENT

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• Fund-raising is going around with a begging
  bowl,
• asking for money because the need is so great.
• Development is creating a constituency,
• which supports the institution
• because it deserves it.
• It means developing
• a membership that
• participates
• by giving
• Peter Drucker

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• Development is value-based
• Values must guide the process.
• Development draws its meaning and the essence
  from the ends that are served caring, helping,
  healing, nurturing, guiding, uplifting, teaching,
  creating, preventing, advancing a cause,
  preserving values.
• Development should never be taken
• simply to raise funds it must
• serve the larger cause.
• Henry Russo-Fundraising School

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• Development is a continuous,
• long-term commitment to provide
• for the health and future of an institution.
• It requires a broad understanding of the school
• and its mission. It needs patience, good
• judgment, sensitivity, and friend-raising
• to build long-term relationships.

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DEVELOPMENT

• Development is school-wide it starts with
• Academic planning
• Analyzing the philosophy and activities
• Crystallizing the goals and objectives
• Financial projections and needs
• Careful accounting to those who invest in the
  school
• Building interest and confidence in the school
• Continuous friend-raising events
• Donor and supporter recognizing efforts
• Building a capable staff and volunteer team
• Continuous and sustained effort to obtain
  financial support

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THE ULTIMATE GOAL OF DEVELOPMENT IS FRIEND-RAISING

• The goal of development is to attract people and
  people will attract dollars.
• The main goal is to cultivate personal,
  fulfilling, and lasting relationships with
  people. Dollars are the result, not the goal of
  development.

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MISSION OF THE DEVELOPMENT PROGRAM

• The mission of the Development Program is
  to develop a fundraising infrastructure in order
  to generate a steady and increasing revenue
  stream so that the school can continue to
  accomplish its mission
• of providing quality education
• in an Islamic environment.

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GOALS OF THE DEVELOPMENT PROGRAM

• Establish a Development Committee
• Create a Development plan with 1, 2, and 5-year
  milestones and objectives.
• Recruit energetic, devoted committee members.
• Educate the community, cultivate prospects, and
  expand the donor base.
• Establish written operating, gift acceptance and
  acknowledgement policies.
• Establish a comprehensive database.
• Determine the best fundraising strategies
  required for our community.
• Establish a regular reporting system with the
  annual report.

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OBJECTIVES OF THE DEVELOPMENT PROGRAM

• Forming the Committee Recruit energetic,
  committed committee members.
• Identifying the Need Identify the needs of the
  school and set the goal to raise funds.
• Provide Training Have a training session for the
  committee members.
• Tool Kit Prepare a Tool Kit for fundraising
  events.
• Donor base Identify and expand the donor base.
• Events Strategize regarding the best practices
  for fundraising.
• Calendar Establish a development calendar for
  the year.
• Reporting Establish a monitoring and reporting
  system.
• Policies Establish development guidelines and
  policies.

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DEVELOPMENT COMMITTEE OPERATING PLAN

• Step1 Forming the Committee
• Step 2 Identifying the Need
• Step 3 Provide training
• Step 4 Create Promotional and Fundraising
  MaterialsTool Kit
• Step 5 Identify and expand the Donor Base
• Step 6 Identifying Fundraising Activities
• Step 7 Recognizing Donors
• Step 8 Establish a database
• Step 9 Monitoring the Plan and Reporting
• Step 10 Establish development guidelines and
  policies

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 1
FORMING THE COMMITTEE

• Committee Member Selection Criteria
• People with a passion for the school
• People with different strengths, abilities and
  skills
• People with connections
• People with the ability to convince others
• People who can organize events
• Select from board members, community members and
  parents

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 2
IDENTIFYING THE NEED

• Work closely with the schools accountant to know
  what is needed to close the year with a balanced
  budget
• Formula for determining the needs to be raised
  annually
• Annual income Tuition X Number of students
  Other income
• Annual expenses List of all the expenses for
  the year
• Annual fundraising amount Annual expenses -
  Annual income
• Example
• Annual expenses 1,300,000
• Annual income 5000 X 180 900,000 100,000
  1,000,000
• Annual fundraising amount 1,300,000 -
  1,000,000
• Annual fundraising amount 300,000

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 2
IDENTIFYING THE NEED

• Sample Scale of gifts chart for a 300,000
  annual campaign
• Number of gifts Gift size Total
• 1 30,000 30,000
• 2 20,000 40,000
• 7 10,000 70,000
• 10 5,000 50,000
• 15 2,500 37,500
• 20 1,000 20,000
• 30 500 15,000
• 40 250 10,000
• 100 100 10,000
• 200 50
  10,000
• 300 25 7,500
• TOTAL 300,000

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 3
PROVIDE TRAINING

• Enthusiasm and motivation about fundraising is
  good but not enough, since very few people are
  trained in fundraising.
• We need to empower our board members and
  volunteers by offering training on Fundraising
  Strategies so we can maximize their efforts.

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 3
PROVIDE TRAINING

• The board members and development office
  volunteers also need to be trained in the
  following areas
• What is the mission of the school?
• What are we trying to accomplish?
• What makes our school special?
• What has our school so far achieved?
• Why does our school need money?
• Why is tuition alone not enough?
• How much money does our school need to raise?
• Who supports our school now?

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 4
CREATE FUNDRAISING MATERIALS TOOL KIT

• Tool Kit We need to have an information packet
  ready.
• The Tool Kit will have the following
  information
• Schools Mission Statement
• Schools Strategic Plan
• Schools Annual Financial Statement
• Schools Development Plan
• Schools Success Stories
• Testimonials
• Promotional Marketing Information
• Fact Sheets
• Letters of Endorsement
• Facts that makes the school stand out

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 5
IDENTIFYING EXPANDING THE DONOR BASE

• The Development Plan should identify, cultivate
  and recognize the following donors
• The School Community
• Board members
• Staff
• Parents
• Masjid Members
• Muslim Community
• Muslim Businesses
• Consulates and Embassies
• The School Neighborhood and Businesses
• Foundations

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 5
IDENTIFYING EXPANDING THE DONOR BASE

• The following questions will help us to build
  our donor base
• Who participates in our school functions?
• Who donated to our school before?
• Who donates time to the school?
• Who has a passion for our cause?
• Who is served by the school?

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 6
IDENTIFYING FUNDRAISING ACTIVITIES

• Fundraising events focus on both cultivating and
  soliciting individuals.
• 1. Friend-raising Events Cultivation-Point of
  Entry
• Any event throughout the year even if there
  isnt an ask should be considered as
  friend-raising
• 2. Fund-raising Events Solicitation-Ask
• One or two fund-raising events annually

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 6
IDENTIFYING THE FUNDRAISING ACTIVITIES

• The following sample events could be planned to
  raise the 300,000
• 2 Major dinners 50,000 x 2 100,000
• 10 Small dinners 15,000 x 10 150,000
• PTO contributions 20,000
• Annual letter phone campaign 20,000
• Scrip 20,000
• TOTAL 300,000

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 7
RECOGNIZE AND APPRECIATE DONORS AND VOLUNTEERS

• Donor Recognition Policy
• Publish an annual report to acknowledge even the
  small contributions
• Invite all 10,000 and above donors to a dinner
• Invite all volunteers to an appreciation dinner
• Send a letter from the principal to major donors
  on the use of their gifts

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 8
ESTABLISHING A DATABASE

• Usually if someone donated to an organization
  most probably they will give again.
• It is very important to keep a good record of
  previous donors, to recognize and ask again.

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 9
MONITORING THE PLAN REPORTING

• The Annual Development Plan will be presented to
  the board in the beginning of the year.
• At the end of the year, the board will evaluate
  the development committee according to this plan.

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EVALUATION CRITERIA FOR VALUE OF EACH FUNDRAISER

• COST EFFECTIVE Did the fundraiser produce an
  income commensurate with the involvement of time
  and effort of the staff and volunteers?
• FREQUENCY How many are held? Are there so many
  that school supporters are frustrated?
• STAFF TIME How much quality time do fundraisers
  consume by the faculty, office, school board and
  administrators?
• SCHOOL IMAGE Do the constituents of the school
  perceive the school as always selling something
  and asking for money?

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DEVELOPMENT COMMITTEE OPERATING PLANSTEP 10
ESTABLISHING GUIDELINES POLICIES

• Fundraising guidelines
• Gift acceptance policy
• Donor recognition policy

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BOARD MEMBERS ROLE IN DEVELOPMENT

• Every trustee need not be capable of making a
  big gift, but every trustee must be willing to
  donate early in the campaign, something that is
  generous for his/her financial ability

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TYPICAL TRUSTEE COMMENTS

• Ill do anything except raise money
• I give my time, that should be enough
• I dont know people who can make big gifts
• No one told me Id have to raise money
• We should raise the tuition instead of asking for
  money
• We should raise the tuition instead of asking for
  money
• We have the Development Director for fund-raising

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MAJOR DONOR CULTIVATION

• Six Stages for the School
• Identify
• Invite
• Inform
• Interest
• Involve
• Invest
• Six Stages for Cultivating Donors
• Awareness
• Knowledge
• Interest
• Caring
• Participation
• Commitment
• Five Qualities of Effective Cultivation
• Candid
• Face to Face
• Frequent
• Regular

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INSTITUTIONAL READINESS FOR DEVELOPMENT

• Clear mission
• Recent Strategic Plan
• Board Commitment
• Board and Community Cultivation
• Effective Marketing Materials
• Development Plan, Goals and Timetable
• Adequate Staff and Volunteers

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SEVEN STEPS IN CREATING A MAJOR DONOR POOL

• The Prospect Identified
• The First-Time Donor Invited
• The Repeat Donor Informed
• The Established Donor Involved
• The Loyal, Frequent Donor Interested
• The Major, Committed Donor Invested
• The Ultimate Donor Inspired

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CHECKLIST FOR VISIT TO PROSPECT

• The Homework
• Know the case for support
• Know your prospect
• Know your own pledge first
• Make an appointment convenient for the prospect
• Rehearse the conversation
• The Visit
• The introduction
• The school update
• The case
• The fund-raising update
• The gift request
• The closure
• The Follow-up
• Send a letter of thanks

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ASKIND AND NEGOTIATION

• If you cannot give 200, then would you consider
  150?
• Would you pledge that amount annually for three
  years?
• Are you willing to reconsider this? We could
  return next week and discuss other possibilities?
• Under what circumstances would you consider
  making a gift?
• Will anything change your mind about this
  program?
• Would you consider sharing the names of three of
  your friends whom we can approach for donations?
• Wed really appreciate learning more about the
  issues you have raised. Could we set a time to go
  into this in more detail?

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TEN REASONS WHY PEOPLE GIVE

• They are involved in the organization or the
  cause
• Representative from the organization really
  listen to them
• Emotions are stirred or their hearts are touched
• They are confident that contributions are used
  wisely
• Someone they know and respect asks them to give
• They understand that their gift will really make
  a difference
• They are clear about the organizations need for
  resources
• They support the mission and want to go forward
• They receive appropriate recognition for the gift
• They feel good donating to a deserving charity
  that produces results

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SEVEN REASONS PEOPLE FAIL TO GIVE

• Solicitation came infrequently or poorly
• Information was lacking about the difference
  their gift made
• They never felt wanted or needed
• The organization did not ask their opinions or
  include them in plans or programs
• No one asked them to give again or consider
  giving more
• They received no direct, personalized appeal by
  someone excited about the organizations
  accomplishments
• They gave in the past and their gift went
  unacknowledged

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SUGGESTED FUND-RAISING ACTIVITIES

• Business-card size Please consider donating to
  my favorite cause, with the school name address,
  phone number and website
• Development Director can send out an email
  solicitation twice a year, with a note asking
  people to forward the message to their friends
  and coworkers
• Donor forms should ask for email addresses and
  donors can choose to be added to an email list
  for the school, updating donors of upcoming
  events and good news

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• GOOD LUCK IN BUILDING A
• BETTER FUTURE FOR
• YOUR CHILDREN!
• You can find this presentation and
• other resources at www.meritcenter.org.
• Please contact us at nozgur_at_meritcenter.org
• for more information other services or
  consultation.