Libertae Nonprofit Fundraising Plan: $3M to $4M Goal

Overview and Fundraising Goals

Libertae's funding sources over the past five years have remained relatively stable, with minor adjustments regarding smaller events and the availability of eligible grant options. The main sources of funding have been annual giving and event-related fundraising from the annual spring fashion show. Grants are received periodically from government agencies, corporate foundations, and private foundations, but there is no guarantee that these will be secured in any given year. As the organization evolves, it plans to add other revenue streams to support its work.

The overall goal of this fundraising plan is to increase revenues from $3 million to $4 million over the next year. To realize this goal, the plan proposes the expansion of corporate support and online fundraising, as well as programs for cultivating individual donors. The plan focuses on raising the following categories of gifts:

a) Unrestricted gifts through individual donor and corporate support under the United Way and Employer Matching Gifts program

b) Restricted gifts through foundation support

c) Gifts for physical capital through Major Donors

d) Gifts for financial capital through the annual Fashion Show and hosted activities

Annual Giving: Regular Memberships

Annual giving covers all contributions made to the organization that are not based on a purchase, event, or other exchange (Greenfield, 2004). In essence, it is a charitable investment in the work of the organization by individuals committed to its values and goals (Greenfield, 2004). The organization accepts any amount of contribution towards its activities, although all requests for support begin with a minimum of $50. This plan categorizes annual giving into two tiers: regular memberships (contributions of $500 and below) and major donor memberships (contributions above $500). The major donor category is discussed separately below.

For Libertae, membership is a conceptual term associated with the provision of financial support to the organization, and not a legal definition based on the payment of set dues. The annual giving program focuses on two objectives: (a) devising strategies for efficiently targeting existing individual donors to increase their gifts, and (b) attracting new individual donors. To generate membership contributions of $500 or less, Libertae will employ three primary strategies:

a) Acquisition efforts to seek initial contributions from new members will be carried out primarily through direct mail solicitations, email blast solicitations, #GivingTuesday campaigns, and end-of-year solicitation activities. The organization will resume direct mail solicitations after they were halted several years ago, as they demonstrated clear success when previously utilized, bringing in approximately $15,000. Email blast solicitations, #GivingTuesday campaigns, and end-of-year solicitations will be retained, although more resources will be dedicated to direct mail efforts.

b) Renewals seeking to maintain the support of existing contributors and encouraging them to renew their annual giving will also be pursued. The organization will employ several strategies to encourage contributors to renew their membership. First, Libertae will initiate a thank-you procedure that focuses on sending thank-you notes to all gift-givers. All first-time donors, regardless of the size of their contribution, will receive an invitation to a non-ask thank-you event. This inexpensive event will be organized for all donors at the end of the year, will feature an open bar, and will focus on thanking donors for their support, reinforcing the organization's mission, and providing opportunities for donors to interact with one another as well as with the organization's employees and volunteers.

c) Special appeals will be written and distributed to all current contributors every three months to encourage additional contributions in support of specific, highly beneficial projects.

Annual Giving: Major Donors and Board Giving

The "major donor" category includes individuals giving a cumulative total of $500 or more. The organization currently operates two programs under this category:

a) The Commemorative Giving Program, which allows individuals to make a donation in someone's honor with a remembrance or celebration card

b) The Planned Giving Program, which provides a means for donors to designate the organization as a beneficiary of a bequest from their estate

The objective for major donors is to increase gifts for physical capital by $500,000. The organization will retain both the commemorative and planned giving programs in the coming year. However, because revenues from bequests and commemorations are generally unpredictable and difficult to budget for, funds from both sources will be directed toward capacity-building efforts or dedicated to the organization's endowment, unless the donor specifies otherwise.

To increase revenues, the organization will launch a board giving campaign this year. This is a once-per-year fundraising drive focused on encouraging all board members to make contributions toward budgeted activities. These gifts will be classified as "board gifts" — unrestricted, general donations made above and beyond any contributions board members make toward annual fund drives and events (Kilkenny Children's Home, 2019). Best practice suggests that board giving campaigns be held at the same time each year so that returning board members can anticipate the drive and plan accordingly (Kilkenny Children's Home, 2019). Accordingly, board giving campaigns will be scheduled for June each year, and the board chairperson will be responsible for sending letters announcing the upcoming campaign to members via postal mail by the end of each preceding year. The organization expects to raise $400,000 annually from the board giving campaign. At the start of each year, the board will make a financial pledge during the annual giving roll-out, with funds received in June. In this way, the board serves as a leadership component of the organization's annual giving program (Kilkenny Children's Home, 2019).

All major donors will be regarded as high-level supporters and accorded a more personalized solicitation and recognition process. The development director will contact major donors by phone upon receipt of a contribution, and one-on-one meetings with the executive management team will be held during non-ask events (Kilkenny Children's Home, 2019). Phone calls will focus on expressing gratitude, while meetings will reinforce the organization's mission and update donors on progress and future plans. Interim and annual reports will be sent by postal mail, accompanied by a questionnaire seeking donor feedback on reported activities. To sustain their commitment, the development director will organize annual recognition events for major donors. Recognition may range from breakfast with a mid-level organizational representative to lunch with the executive director, and a commemorative plaque in the case of gifts for physical capital (Kilkenny Children's Home, 2019).

References

Greenfield, J. M. (2004). Fundraising Fundamentals: A Guide to Annual Giving (2nd ed.). New York, NY: John Wiley & Sons.

Kilkenny Children's Home. (2019). Kilkenny Children's Home Development Plan. Retrieved from https://s3.amazonaws.com/fundraisingplan/Sample-Fundraising-Plan.pdf

Worth, M. (2016). Fundraising Principles and Practice. Thousand Oaks, CA: Sage.