1. Ready, or just Worried about theCampaign?June 27, 2007 France Fundraisers Congress ParisBob CarterVice Chairman, Archimede Philanthropy PartnersPresident Emeritus, Ketchum

2. 2006 Contributions: $295.02 Billion by Source ofContributionsCorporations $12.72 4%Foundations $36.50Individuals 12%$222.89 76% Bequests$22.91 8% Source: Giving USA 3. 2006 Contributions: $295.02 billion by type of recipient organization Deductions carried overand other unallocatedgiving, $26.08 , 9% Gifts to foundations, $29.50 , 10% Religion, $96.82 , 33% Environment and animals, $6.60 , 2% International affairs, $11.34 , 4%Arts, culture, and humanities, $12.51 , 4%Public-society benefit, $21.41 , 7% Education, $40.98 , 14% Health, $20.22 , 7% Human Services, $29.56Source: Giving USA3 , 10% 4. Why Do Needs Sneak Up On Us? Fundraising is not always on the radar screen / CEO, Board Campaign planning takes a year or more Most campaigns require a minimum of 18 months of activity Five-year pledge period is common 60-78 months or more from plan to cash in hand4 5. You May Be Ready...But Are YourDonors andVolunteers Ready? 5 6. Campaigns Success is Predicted On A Compelling Case What is central to our mission Urgency & emotion What we cannot do now But could do with more private-sectorphilanthropy Beyond annual fundraising 6 7. The Case Must Be Developed By Board Executive Staff Development Staff Volunteers Clients or Consumers 7 8. Campaigns Are Predicted on The Strongest Possible Leadership Influence Affluence Access Commitment History (culture of philanthropy) New Spheres of Influence Emerging or Present Ethnic/Cultural Groups8 9. Campaigns Are Predicted on Dollars Adequate to Reach the Objective In addition to annual gifts Consistent with valid statistical model (major gift potential) Rooted in your current reality Based on changing your reality 9 10. Chart of Standards for $10 Million GUIDELINES Top Investment15-20% of Objective Top 10 Investments45-50% of Objective Next 150 -175 Investments 45-50% of Objective Cumulative% of No. Amount Total TotalObjective1$1,500,000$1,500,000 $1,500,000 15.0% 1$1,000,000$1,000,000 $2,50 0,0002$500,000$1,000,000 $3,500,000 3$250,000$750,000 $4,250,0003$150,000$450,000 $4,700,000 47.0%20 $100,000$2,000,000 $6,700,000 25$50,000$1,250,000 $7,950,00035$25,000$875,000 $8,825,000 40$15,000$600,000 $9,425,00050$10,000$500,000 $9,925,000 99.3% Many Below $10,000 $75,000$10,000,000100.0%10 11. Campaign Planning Begins with An Institutional Strategic Plan Mission Vision Measurable objectives with deadlines Plan to reach objectives Resources required to fund plan 11 12. Campaign Planning Requires Consensus of Board Priority of Administration Readiness of Development Staff Participation of Program Staff, Board, Medical staff and Identified Community Leaders12 13. First Step in Comprehensive Readiness Assessment Internal Review Staffing Structure Governance Budget Information Management Marketing 13 14. A Pre-Campaign Review is NOTa Personnel or PerformanceReview 14 15. Second Step in Comprehensive Readiness Assessment External Planning Study Strength of the Case Quality of the sample Commitment to react to findings15 16. Do Not Consider a Study if: The goal is predetermined There are no other options You are conducting sequential, seamless campaigns 16 17. Planning Study Tests Endorsement of Case Institutional Image Readiness of leadership Access to volunteers Goal Access to lead gifts Timing 17 18. Expect Study Report to Include FindingsPublic ImageExcellentPoor Total Governing6% Top NextSuggested11%InterviewsBody 10Tier Leaders(36 ) (11 )(7) (10) (9) Excellent2 1 01 1 Average31% Good19 4 66 8Good 52% Average 11 6 02 0 Poor 4 0 11 0 Unaware0 0 00 0 This chart is a summary of total responses18 19. Expect Study Report to Include Representative Comments! The organization is well known and respected. I do not knowof any other organization in the area that does what they do.! Most people know of it through its many charity functions.! It provides wonderful services.! The executive st aff is more stable and more capable than at any timein the past. The Executive Director is a fabulous asset. 19 20. Expect Study Report to Include Observations This study, because of the thoughtful responses of participants, has identified a number of strengths on which a campaign can be developed if the Clinic determines to move ahead. In addition, there are a series of challenges that must be ad dressed in order to maximize the results of such an undertaking. The observations are presented as the foundation for the recommendations listed in the following section of this report.Overview The proposed campaign seeks to replace facilitiesP o stive Factors i! The organization has a long and impressive history of providing services ! In its history, the organization has evolved to meet the changing needs of the community ! The executive staff is well respected and ! Some areas of the Case for Support are considered to be compelling and credibleObstacles to Overcome! Some members of the community feel alienated from the organization ! Study participants who question the plan are also inclined to question other aspects ! A significant portion of the ov erall sample question the appropriateness of a capital campaign ! Less than one in four participants would consider accepting a leadership role 20 21. Expect Study Report to Include Recommendations A team of senior Ketchum officers has studied the data obtained in this planning study. Recommendations that follow are based on the firsthand observations of the study team, analysis of the information gathered in the confidential inter views, and Ketchums 85 years of experience in capital campaign management.1. Clearly Define and Communicate Organizations MissionConfusion and misperceptions in the community2. Create a Planning Task ForceBefore a successful capital campaign can be initiated3 . Form a Campaign Steering Committee Issues related to campaign goal, timeline, leadership development, and pre -campaign activities4 . Revise Campaign Goal and Timeline Based on the data gathered during this study5 . Begin a Program of Internal and Ex ternal Communication The organization should begin a comprehensive, multi -faceted communications effort6 . Conduct Prospect Research, Review, and Evaluation The organization does not currently know its donors or prospective donors well enough7 . Invest in De velopment A new organizational structure should be implemented, new personnel put in position, and8 . Retain Fundraising Counsel Retain Ketchum as fundraising counsel to assist and guide 21 22. Board Must OwnPlanning Process and Results Most constituents are innocent victims of the Boards decisions Study report becomes retreat agenda The role of the Board in campaign is central retreat agenda 22 23. Engaging Stakeholders in the Plan is Key to Success Do stakeholders recognize their input in plan? Do consumers/clients feel engaged? Is Board as engaged as the CEO? Is the CEO as engaged as the Development office? 23 24. Most Campaign GoalsShould be Non-Financial! Enhanced Relationships Constituent Awareness Leadership Development Effective Dialogue 24 25. Financial Objectives Go Beyond Goal Higher philanthropic priority Larger gifts More donors Increased annual support Introduce and foster planned giving/endowment funds Access to new leadership 25 26. What Happens if Study Does Not Validate Campaign? Revisit Case Invest in leadership development Invest in education and cultivation Revise goal Adjust timing Divide campaign into phases Keep the need for philanthropy in front of your constituency 26 27. Planning Should Create Logical Sequence of Campaign Activities27 28. Organization ChartGoverning Body Steering Committee/ Campaign Cabinet Development Office Chief Executive*General Chair Campaign Counsel * Pacesetter Gifts * Leadership Gifts * Major Gifts* Special Gifts Phase Phase Phase Phas e ChairChairChairChair Prospects Evaluated at Prospects Evaluated betweenProspects Evaluated below $150,000 and Higher$50,000 & $149.999 $50,000# of Prospects # of Prospects # of Prospects # of Prospects# of Volunteers# of Vo lunteers # of Volunteers# of VolunteersOrganize Organize Organize OrganizeOrientationOrientationOrientationOrientationComplete Complete Complete Complete*Awareness*Prospect Review*CommunicationsChair ChairChair# of Volunteers # of Volunteers# of VolunteersOrganizeOrganize OrganizeOrientation OrientationOrientationCompleteComplete Complete *Members of Campaign Cabinet 28 29. Campaign Timeline200420052006 ACTIVITY TRACKSON D J FM A M J J A S O N D J F ECO E A EA P A U U U E C O E A E PTV C N BR R Y N L G P T V C N BSteeringCommitteeCampaignAdministrationCampaign CabinetCommunicationsCommitteeProspect ReviewAwarenessLeadershipGiftsPacesetterGiftsMajor GiftsSpecialGifts Denotes a primary track of campaign activity 29 30. Policies Must Be Pre-Planned Campaign Governance Gift Acceptance Booking Recognition and Naming Opportunities Discounted Deferred Gifts 30 31. Budget Must Be Pre-Planned (and Pre-Funded) Additional staff Research Software Meetings and events Hardware Travel Publications Recognition Visual support Counsel31 32. Generosityis not a factor of wealthIt is rooted incharacter. 32 33. An effective plan is designed to motivate prospective donors to do the right thingmake a thoughtful effort The right gift will follow.33 34. Author Bob Carter Vice Chairman Archimede Philanthropy Partners 220 East 42nd Street New York, NY 10017 Phone 646-264-2700 Cell 412-721-0947 Fax 646-264-2790 34