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Building a Better Annual Plan “By the Numbers”

Number One: Build your Case:

  • How will you change lives/save lives?
  • How much do you hope to raise?

Building a Case Why should donors give? Because…

  • Donors believe in your mission
  • Donors want to change lives/save lives
  • Donors want to be part of something successful
  • Donors are asked by someone they know/trust
  • Not because you “need money”

How much do you hope to raise?

  • Based on last year’s results
  • Based on analysis of this year’s potential
  • Incremental growth? Or leap strategy?
  • Not based on the “budget gap”

Build your Case for Support:  Build a Case for Your Organization

The top five reasons to give to your organization…
1 2 3 4 5

How much will you seek to raise?: $______________

Number Two:
From where did last year’s gifts come?
Small Gifts Big Gifts

Where are your donors?

Major gifts from individuals; corporate and foundation grants
Small Gifts= High Tech (Renewals and contributions via mail, phone, web)
Small Gifts= High Touch (Donor acquisition e.g. special events)
Big Gifts= High Tech (??)
Big Gifts= High Touch (Major gifts from individuals; corporate and foundation grants)

What’s your “R.O.I.” ?

Tactic                               % using tactic    Median Amt.
Raised per $1 spent
direct mail                           43%                   $10                Initial touch
telephone calls                     9%                   $11.90
special events                     62%                    $3.20            High labor/Low ROI=
major gifts                            66%                 $24                Most Effective!!
capital campaign                16%                      $20
planned giving                    20%                    $20

Increased involvement leads to larger gifts

Giving Pyramid

Planned Giving Donor (Personal contact only)
Capital Donor (Personal contact only)
Special/Major Gift Donor (Personal contact/letter/phone call)
Renewed/Upgrade Donor (Personal contact/special event/letter/phone call)
First Time Donor (Direct mail/telemarketing/special event/media/door-to-door)
Universe of Suspects/Prospects

Build Your Strategy:

How much do you hope to raise in the future?

  • From whom?
  • How will they be solicited?

Building a Strategy

Who will contribute?

  • Individuals (renewals, new)
  • Corporations (renewals, new)
  • Foundations (renewals, new)
  • Others (United Way, civic groups, government agencies)

How will they be solicited?

  • In person (staff or volunteers)
  • Mail or telephone (volunteers or professionals)
  • Special event(s) (staff + volunteers)
  • An application or proposal (staff)

“The Ladder of Effectiveness”

Peer-to-peer (75%+)
Staff-to-donor (40% – 60%)
Facilitated by volunteers (30% – 60%)
Mail/phone renewal (30% – 65%)
Telemarketing acquisition (2% – 4%)
Direct mail acquisition (less than 1%)
Projecting Broad-Base Fundraising Revenue

3 Variables:

  • # of constituents
  • % response rate
  • $ average gift size

is a proud member of the Giving Institute. The Giving Institute is a member association that promotes the evolution of the professional fundraising field and philanthropy. Since 1935, the Giving Institute and its member firms have embraced and embodied the core values of ethics, excellence, and leadership in advancing philanthropy.

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