Rethinking Revenue: Fundraising plans in uncertain times

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Rethinking Revenue Fundraising plans in
uncertain times

• Stephanie KimmelThe Goodman Theatre
• One State Together in the Arts Conference, May
  15, 2003

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Goodman Theatre Profile

• Mission
• to create extraordinary theater productions and
  programs that challenge, entertain, and stimulate
  the imagination of audiences and enhance the
  quality of life in our diverse city.
• History
• Oldest, largest nonprofit theater in Chicago,
  established in 1925
• Separated from Art Institute in 1977 as nonprofit
  institution

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Goodman Theatre Profile

• New theater opened in 2000 in historic theater
  district in Chicagos North Loop
• Two theaters, 9 productions annually
• 25,000 subscribers
• 350,000 audience annually

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Goodman Theatre Profile

• Artistic Collective Model
• Overall Budget - 15 million
• 35 contributed revenue
• 65 earned revenue

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Development Department

• Staff
• 13 full-time staff
• 2 volunteers, 1 intern
• Board involvement
• Board of Trustees 70 members
• Womens Board 50 members
• 6 fundraising committees
• All development staff have contact with
  trustees/board members

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Annual Fund Goals

• FY2002 raised 4.9 million
• FY2003
• 5.6 million (set in spring of 2002)
• 5.2 million (lowered in October 2003)

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FY03 Goals

• Government - 190,000
• Foundations - 1,050,000
• Corporations - 600,000
• Individuals - 1,548,000
• including board members personal gifts
• Benefit Events (net) - 850,000
• Sponsorship - 1,000,000
• Corporate/Foundation 650,000
• Individuals - 350,000

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Goals for FY2004

• We have already begun to projecting next year
• To formulate realistic goals
• To set our plans earlier than ever
• To educate the board about challenges/needs

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Challenges/Obstacles

• Foundations
• Downturn in foundation assets, a few decreases in
  size of gifts
• Loyal, annual donors continue to give
• Corporate Contributions/Sponsorship
• Economic conditions
• Budget cuts
• Staffing cuts
• Longer decision times
• Trustee involvement
• Large gifts not all renewable annually

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Challenges/Obstacles

• Individual Giving
• Renewing first-time donors
• Building up base of our Subscribers who are
  donors
• Board members and donors delaying gifts
• Reluctance to ask

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Rethinking Strategies and Resources

• Present a clear case for support
• Focus on results, not needs or economy
• Plan, be prepared
• Have a solid development plan with contingencies
  built in
• Internal Communication
• Keep organizations leadership well-informed
  about projections
• Weekly Development Staff Meetings
• Monthly Retreats"
• Projections
• Rethinking assumptions

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Rethinking Strategies and Resources

• Board and Volunteers
• Involve them in your appeals
• Seek their feedback
• Make sure they are educated about their fiduciary
  responsibilities
• Colleagues/Peers
• Participate in formal/informal networks
• Learn from your peers

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Rethinking Strategies and Resources

• Focus on your best donors and prospective donors
• Communicate honestly about challenges
• Share good news
• Communicate personally
• Handwritten notes
• Engage volunteers/board members in communicating
  with donors

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Rethinking Strategies and Resources

• Focus on Individuals
• Most consistent, loyal donors
• Renewable annual support
• Recognize that donors are honestly worried about
  economic conditions, future

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Rethinking Strategies and Resources

• Special Events / Galas
• Take advantage of special opportunities
• BOUNCE increased goal in this area
• Reassessing of events and timing
• Invite donors to events that are not available to
  the general public

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Rethinking Strategies and Resources

• Foundations
• Recognize the limitations on their resources,
  particularly for new gifts during current
  economic period
• Communicate during process
• Corporations
• Use relationships and networks
• Involve your board/volunteers in all
  solicitations

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Use of Time and Resources

• Analyzing cost/benefit of specific strategies
• By source of support and activity
• Include staff time in assessments
• Set realistic expectations for future
  expenditures

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Finally

• The economy is cyclical it will improve
• Continue to focus on both short and long-term
• Keep asking!