Download pdf - Have You Been Sequestered?—Developing Diverse Sources of Revenue

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Have You Been Sequestered?

Developing Diverse Sources of Revenue

David A. Mersky October 16, 2013

Twitter Hashtag - #4Glearn

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Of:

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Advising nonprofits in:

• Strategy

• Planning

• Organizational Development

www.synthesispartnership.com

(617) 969-1881

[email protected]

INTEGRATED PLANNING

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Of:

Sponsored by: Part

Of:

Coming Soon

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Today’s Speaker

David A. Mersky Founder and Managing Director

Mersky, Jaffe & Associates

Assisting with chat questions: Jamie Maloney, 4Good

Founding Director of Nonprofit Webinars and Host:

Sam Frank, Synthesis Partnership

Part

Of:

Have You Been Sequestered?

Or, Shut Down?

Developing Diverse Sources of Revenue

©2013 Mersky, Jaffe & Associates


What is your agency’s area of endeavor?

• Religion

• Education

• Human Services

• Health

• Arts and Culture

• Other


What is your agency’s operating budget?

• Less than $500,000

• $500,000-$999,000

• $1,000,000 - $4,999,000

• $5,000,000 - $9,999,999

• $10,000,000 +


What is your agency’s principal source of

revenue?

• Government

• Corporations

• Foundations

• Individuals

• Earned income (e.g., tuitions, admissions,

etc.)


Do you expect the Federal shutdown to

have an impact on your agency?

• Yes

• No

• Maybe

• Don’t Know


Will the Federal shutdown impact your

agency’s fundraising?

• Yes

• No

• Don’t know


Do you have a written plan to deal with the

Federal shutdown?

• Yes

• No

• Don’t know


Do you have a written plan to deal with the

Federal shutdown?

• 60.6 % of those surveyed are concerned

• 20.69 % expect to raise less money

• 60.1% have no plans—written or otherwise


The Federal Shutdown:

A View from the Field


A Housing Program

• Staff members jobs—funded by Federal

grants—are in jeopardy

• Government more than a source of money

• Expertise and a knowledgeable partner

• Hurts the homeless and returning veterans

• Local communities are stalled


Main Street and Not Wall Street

• SBA is not processing loans

• IRS cannot provide tax returns to banks to

make mortgages

• USDA cannot inspect nor approve new

product development

• Foreign investors are holding back

• Service companies dependent upon national

parks tourists are shuttering ©2013 Mersky, Jaffe & Associates

AND, WHAT ABOUT THE

THREAT OF DEFAULT?


The State of Philanthropy in

America Today:

Context for Consideration


2012 Contributions: $316.23 billion by source of contributions

(in billions of dollars – all figures are rounded)

2012 Contributions: $316.23 billion by type of recipient

organization

(in billions of dollars – all figures are rounded)

Q: How do you get your

piece of the pie?


A: Develop

diverse

revenue

streams ©2013 Mersky, Jaffe & Associates


Vision of the Effective

Development Shop

Diversifying Revenue Streams


Where there is an effective development shop…

• relationships are nurtured

• number of donors, sources of contributed

income, and dollars raised continually

increase.

• the organization and its reputation are

enhanced.


The Agency

• has a dynamic strategic vision and plan.

• is worthy of support.

• gets input from key constituents and stays

tuned into community perceptions.

• has an active volunteer pool.

• operates by the highest ethical standards.


The Board

• is strong with a standing committee on

governance and leadership development to

keep it that way.

• embraces its role in fundraising and has the

necessary structures and skills to participate.



Development

• Fundraising goals are widely-understood,

rational, clear and defensible.

• The information system houses the right

information and in a way that is easily

retrievable.

• The information is regularly analyzed and

reported.


Development

• There are adequate numbers of fundraising

staff with experience and competencies. They

have job descriptions and are effective in

their work.

• The development office has needed space,

equipment, technology, and budget.

• Processes are professional and efficient (e.g.,

record keeping, gift handling). ©2013 Mersky, Jaffe & Associates

Development

• The effectiveness of various fundraising

strategies are evaluated and priorities adjusted

accordingly.

• The calendar apportions work out over the

course of twenty four months

– 6 months for planning

– 12 months for execution

– 6 months for evaluations and clean-up



Mersky, Jaffe

& Associates Financial and Human Resource

Development Solutions for Nonprofits

800.361.8689 413.556.1074 fax

www.merskyjaffe.com

OFFICES IN BOSTON AND NEW YORK


http://www.merskyjaffe.com/