6 of 6 fund development

The Alberta Land Trust Alliance thanks the Alberta Real Estate Foundation for the generous
funding provided for this project.

Alberta Land Trust Alliance
January 2011

Fund Development Guide

In Canada there are about 80,000 registered charitable organizations and another
100,000 incorporated nonprofits providing any number of programs and services that
address the needs of individuals and communities. They vary in size and complexity.
Some are high profile while others are relatively unknown. Regardless, all organizations
share the following basic principles of philanthropic and sponsorship funding:

A clear sense of mission, the audience served and how the mission relates to each
audience member.
A shared vision—where the organization is going, what activities it will undertake,
and how these activities impact the mission.
Planning how to achieve the mission.
Knowing how much its activities will cost.

Of course, a myriad of factors such as level of risk, number of volunteers and number of
staff will influence an organization’s ability to raise funds.

Effective and successful fundraising is grounded in the organization’s mission and
vision. Quite simply, fundraisers need to know how the organization will meet
community needs and what it will cost. This is communicated through descriptions of
programs and services that bring the organization’s mission to life.

Donors have forced organizations to change how they view funding. Today there must
be a focus on target audiences. It is a shift in mindset from “money from everyone” to
“sustainable funding from our closest friends.” Donors do not give because
organizations do good work. Sponsors don’t support you because they feel an
obligation to do so. They give because giving satisfies one or more of their needs and
because of what they believe the organization can do with their money. This means you
must look at fundraising through the donor’s or sponsor’s eyes.

In summary, philanthropy – which can be defined as the sharing of time, talent, and
treasure for the common good – emphasizes relationships over money; it is a dignified
process that helps generous people participate in programs that reflect their values and
interests and meet their need or desire for recognition, a sense of belonging and/or to
make a difference. Strong fundraising provides multiple opportunities to give.

Alberta Land Trust Alliance 1
January 2011


Fund development is part of an organization’s strategic marketing and the process by
which the organization uses fundraising to build capacity and sustainability. Fund
development is about building relationships with people, and other organizations, that
will support the charity.

Integrated fund development captures the purposes of fundraising (operating, capital,
endowment), and for each prepares cultivation and solicitation strategies, timetables,
budgets, roles and responsibilities, success indicators, progress monitors and
evaluation.

Trends in fund development have given rise to several guiding principles:

Fund development must be integral to the business plan.
Staff and volunteer leadership is critical.
Fundraising volunteer recruitment is increasingly difficult.
Branding is increasingly important.
Donors need multiple and seamless giving programs.
Asks must be personalized, strategic and professional.
All fundraising must be conducted from a position of high ethical standards and
practice.

This written document is the key resource for staff, volunteers, donors and prospective
donors to find answers about the organization, its mission, vision, values, priorities,
goals and objectives. It is the donor’s investment prospectus.

Sources of funding include individuals, companies, foundations, community groups, and
government programs. Every organization has a different pool of potential donors from
which to ask support. This is because every organization has a unique Case for
Support, provides different programs, serves different communities, and has leaders
and volunteers who approach the work from their own perspective.

Every organization must prospect for donors. The need for an ever-expanding number
of donors means researching each constituency to identify donors, evaluating their
capacity, willingness and interest, and qualifying their potential support.

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Leadership in fundraising is essential. Success requires a number of people who are
prepared to champion the organization’s goals and objectives and work to communicate
these among potential donors. Of all the characteristics desired in a fundraising
volunteer, the willingness to engage others in discussion is the most prized. Fundraising
is a communications activity in which those who can tell stories and paint mental
pictures of “what might be” for prospective donors are the most successful.

Stewardship is not gift recognition. Stewardship is the sum of all the things an
organization can do to continue the relationship with a donor. The objective of good
stewardship is to bring the donor ever closer to a full and complete understanding of the
organization so that their giving not only continues but increases over time. As land
trusts, we encourage and cultivate the principles of good stewardship of the land; as
organizations, we could apply that same nurturing approach to donor stewardship.

Strategic marketing and communications activities are key to increasing your
organization’s profile and visibility in the community. The more visible and recognizable
your organization is, the more likely you are to attract donors to your cause. There are
many tools available to support the fundraising initiatives, especially any that position
the organization as one of choice for donors. Communications initiatives include
developing key messages, logo and corporate colours, advertising, websites, pamphlets
and brochures, special publications, and public displays.

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Many terms refer to and describe the philanthropic sector: voluntary, nonprofit,
independent, third, charitable, etc. The lack of consensus among charitable
organizations about references to the sector poses a problem. Many Canadians know
very little about the sector, so the lack of a common language that describes the work
can create confusion. Furthermore, people react strongly to language. Charity, for
example, has a negative connotation in some circles. Other labels may help or hinder
positioning in the philanthropic marketplace.

Yet Canada’s charitable sector has huge economic power. Organizations like yours
generate billions in revenue and control hundreds of billions of dollars in assets. The
sector is about 7% of Canada’s GDP and larger than several provincial economies and
some industry sectors. Charities employ about two million people and engage more
than 12 million in providing a billion hours of volunteer activity.

Small charities, with revenue under $125,000 annually, make up about 40% of
charitable organizations and account for 5% of funds raised. Medium-sized charities,
with revenue between $125,000 and $1.5 million annually, make up some 45% of the
charitable landscape and draw 25% of funds raised. Large charities, with revenue over
$1.5 million annually, are about 15% of Canada’s charities and bring in 70% of funds
raised.

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The type of charity and its size in the philanthropic marketplace has an impact on
fundraising among individuals, the most dominant source of donations.

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The federal government is the largest contributor to annual revenue. Government
transfers and grants can be between 40% and over 90% of a charity’s total revenue,
depending on the service the organization provides.

Individuals consistently give 75% of all charitable donations. Companies and
foundations account for the remaining 25% of gift support, split roughly 12% for
foundations and 13% for companies.

The average age of a donor in Canada is between 45 and 64. Their average donation is
about $400, a figure that drops to about $370 in people under age 45 and rises to about
$570 in individuals older than 64.

In getting to know donors, studies point to several barriers to giving. The two most
common reasons for not giving are personal and organizational, meaning donors most
often cite objections related to their personal circumstances and beliefs, and will more
often find reasons not to give based on their perceptions of the charity.

Religion continues to play an important role in giving. Those who claim to be active in
their church are more likely to give, are more generous than the average, and are more
likely to volunteer.

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About 12 million Canadians give more than two billion hours in volunteer service.
According to a 2007 study, there were 1,445,000 million volunteers in Alberta,
averaging 172 volunteer hours per Albertan. Alberta’s volunteer rate increased from
48% in 2004 to 52% in 2007, higher than the Canadian average of 48%.

Women are more likely to volunteer than men. Men volunteer less frequently but donate
more hours. The highest volunteer rates are among the youth and the most hours given
are by seniors. The most likely organizations in which to find volunteers are in sports
and recreation, and the most likely jobs they are to perform are organizing and
supervising. More often than not, they have volunteered because they were asked.

A change in organized volunteerism is emerging, known as “civic engagement.” It can
be defined as individual or collective actions that both address issues of public concern
and provide help without the organizing assistance of a charity. This “help” may include
activities such as cleaning, cooking, gardening, maintenance, painting, shoveling, car
repair, health-related and personal care, visiting, babysitting, shopping and transporting.

The future of government and foundation funding is unsure. There is a sense that,
regardless of government surplus, charities will never again see the government funding
levels of the 1980s and 1990s. This forces organizations to be more self-sustaining,
creative and innovative, incorporate sound business practices appropriate for a
nonprofit organization, and become increasingly accountable and transparent to private
sector funders.

There is no more entitlement for charities and probably more scrutiny of an
organization’s activities. The days of unquestioning respect and awe for charities are
over and increasing regulation has become a fact. All levels of government (globally)
are scrutinizing the philanthropic sector. Legislative and regulatory bodies regularly
debate public policy and are taking more action on social issues than ever before.
Community-based organizations provide the public with benchmarks by which to gauge
charities. The media is taking an ever-vigilant stand on issues around the management
of charitable activity. Charities need to cope with both the scrutiny and the outcome.

There is an increasing focus on securing very large gifts in order to ensure campaign
success. These are what we call Major Gifts. While the definition of a major gift will be
different for every organization, all organizations will calculate a major gift much the
same way: by first evaluating all of the gift amounts received, from smallest to largest,

January 2011


then comparing those amounts to the volume of gifts. The evolution of Major Gift
programs that focus on individual giving have redefined strategies and tactics
organizations might take to raise funds.

Donors are receiving more requests than ever, resulting in more focused giving as
donors move from cause to cause. Therefore, strategic cultivation and long-term
stewardship are required components of fund development plans.

Corporate gifts are flattening and sponsorships are increasing. Corporate community
investment programs are focused and strategically aligned with a company’s business
interests. Charities must learn to manage these new relationships.

Fund Development activities must work in concert with an organization’s other business
activities. Fundraising can no longer be a “sidecar” to the organization’s programs and
services. It must be integrated with mission and vision.

Visible and strong leadership is a key requirement for successful fundraising. The direct
involvement of senior volunteers and staff to provide credibility and validate the
organization’s funding needs is critical. And the donor public expects leadership
involvement in fundraising as planners and askers.

The professional, personalized solicitation of individuals is becoming as necessary as
the approach of companies and foundations. All three of the major donor groups are
adopting new methods of evaluating charitable activity and all have access to
information beyond what the charity is providing online or through print publications. The
impression a member of the community has about a charity now gets transmitted and
communicated in dozens of ways that the charity cannot control.

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The Case for Support does two things:

It is a written document that answers all of the reasons why an organization both
needs and merits financial support, usually by outlining the organization’s programs,
current needs and plans.

It is an expression of the cause as a community requirement, a clear and compelling
statement of all of the reasons why anyone should consider making an investment in
the organization and the cause it represents.

The Case must answer some overarching and compelling questions. These are
probably the most important questions you can answer, so they deserve attention at the
highest leadership level.

In a Board meeting, ask:

Who are we and why do we exist?
What is distinctive about us?
What is it that we need to accomplish and how do we intend to get there?
How will we hold ourselves accountable?

The Case for Support must convince a courtroom of skeptics, so it has several specific
purposes:

It clearly communicates the organization’s mission, vision, goals and objectives.
It explains current programs and services and give examples of their positive results
and impact in the community.
It describes how new programs will further enrich and benefit the lives of many.
It inspires and motivates donors, volunteers and the community to continue to
support programs and the cause.

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The Case for Support is a written communications tool. It should appeal both to the
head and to the heart of the prospective donor, so the tone and calibre of writing should
accomplish several things:

Inform, inspire and excite potential donors
Uplift and motivate; appeal to the philanthropy of the donor
Incite to action and involvement
Instill urgency
Invite support, interest and dedication

The Case may be written in various formats, and even the simplest must have a visual
appeal. A simple format might have the following section headings:

Mission, Vision, Values
Goals & Objectives
Programs & Services, Statement of Needs
Staffing & Governance
Facilities, Finances, Evaluation

Organizations will approach writing the Case for Support from different perspectives, but
the critical components are as follows:

To identify, validate and document needs.
To outline programs and strategies to meet needs.
To establish competence of the organization and its people.
To explain who will benefit.
To identify necessary resources.
To explain why they should and how donors can give.
To think about any unasked questions.

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Undefined purpose, vague plans
Overstated emotionalism, pleading
Misunderstanding what motivates donors
Unsubstantiated, grand claims

To obtain consensus, rally leadership.
To recruit volunteer leadership.
To test the market.
To support tool in asking for gifts.
To tell the story.
To build fundraising materials.

Case Statements are a special version of the Case for Support. They are written to
focus attention on a program or service rather than the entire organization.

A Case Statement tells the organization’s story to specific constituencies or donors.
They present arguments for specific needs and are quickly converted to a proposal for a
prospective donor.

A Case Statement includes notes on overall fundraising goals and explanation of how
funds will be used. It outlines how successful fundraising strengthens the organization,
presents a vision for the future and, above all, provides an invitation for the donor to
give.

Include an Ask.
Write an Introduction.
State the problem that needs to be addressed.
Detail critical response or solution.
Describe impact and what it means to the donor.
Include updates on the progress/status of the campaign.
Include relevant and helpful attachments.

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Gather as much information as possible and respond to the following areas.
Don’t worry that you are unable to find lengthy or meaty responses, but do answer
each of the points to the best of your ability.
Fill in gaps through discussion with fellow Board and Committee members and other
volunteers.

1. What are you trying to accomplish and how do you know it’s necessary?

2. Identify your specific needs. (Who? How? With What?)

3. What programs and strategies do you imagine will meet these needs?

4. Document the competence of the organization to reach its goals.

5. Explain who will benefit from services that will be made possible.

6. Identify all of the resources required to fund all programs and services.

7. Explain why a prospective donor should give.

8. Explain how a prospective donor can give.

9. Anticipate and respond to any unasked questions in the prospect’s mind.

10. Capture any questions you want answered as a potential donor.

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Every organization, regardless of size, must engage in the continual identification of
potential donors and have some capacity to record information about the people,
companies and other supporters:

Serious fundraising is based on sound relationships between donors and land trusts.
The process for identifying prospects is actually quite critical to building these
relationships.

Identifying and establishing a relationship with a potential donor is the first step.

Next is maintaining the relationship through dialogue or conversation that is meant to
align the potential donor’s interests with those of the land trust. The more tightly this can
be done, the more likely the potential donor will make a significant investment in the
land trust—exactly what you want to happen.

Over time, and with continuing involvement, relationships with donors deepen and can
be expanded so that donors not only help fund major projects but are also inclined to
support the operating needs of the trust.

With their deepening involvement, donors are often more inclined to help the
organization identify additional potential donors and at gift levels that are close to their
experience.

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Some organizations may already be in a position to formalize the identification of
prospective donors and the ongoing research that is part of the process. You may have
already identified several donors capable of making a large investment in the
organization. They’re either current (or recently past) donors, are visible and vocal in
your community, or have identified themselves as having an affinity for what land trusts
are trying to achieve.

With very little sleuthing and some well-conducted identification exercises, leaders and
others can expand this list of potential donors beyond the “usual suspects.”

The trick is to get past the list of already-known individuals, companies and other
funders to probe for others who share similar values or perspectives. Often, these are
people you or someone you are close to already know. It’s how you start.

Brainstorming with others is a terrific way to gain information about prospective donors.
You can share personal contacts, examine participation records and bring in publicly
available information, involve peers or advisors and other experts.

Once the information is gathered, the next task is to organize your research so that it’s
useful to the land trust, its staff (if any), volunteers and leaders. The best prospect
management tools strive for simplicity; donors’ records must be accessible and
organized so that decisions can be made and action taken whether the trust wants to
solicit a single individual or groups of potential donors with something in common.

Be determined to build some form of thorough but realistic research to your prospect
identification work. Alberta’s land trusts vary in their volunteer or staff capacity. Some
are able to engage in very formal research activities and others will operate on a lesser
scale. Once the commitment is made, though, it is critical that it continue. Collecting
information about prospective donors is a cumulative process. This is the information-
gathering that puts the jigsaw puzzle together so that your organization can make its
best and most effective “ask.” It is imperative that a clearly articulated donor privacy
and confidentiality policy be in place and followed implicitly.

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Recognize that the organization, its purpose and its projects are worth funding and that
there is a donor lurking in the database of suspects and prospects, or in the back of
someone’s mind, just waiting for the chance.

There are at least three areas land trust leaders should spend time thinking about:

1. What it is about the organization that potential donors would fund.
2. What the organization currently does that donors could fund.
3. What the organization wants to accomplish in the future that donors might want to
fund.

With this information in hand, organizations can
actually map out projects to prospects. You can relate
most closely those projects for which you need
funding to those prospective donors who are most in
tune with the organization’s needs. In fact, you will
begin looking at the problem of fundraising from the
perspective of your supporters.

Often overlooked, involving prospective donors is part of the process of building donor
support:

Yes, you can ask prospective donors for information about themselves that will
help you define how best to involve them.

Yes, you can work with prospective donors (individuals and groups) to link them
with projects they are most likely to fund.

Yes, you can achieve your greatest vision for your organization by asking very
generous people to help you accomplish something really meaningful.

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Research and prospect identification requires organizations to operate at the highest
level when it comes to how information is handled. We are all bound by confidentiality
laws, in particular the Freedom of Information and the Protection of Privacy Act (FOIP),
and Personal Information Protection and Electronic Documents Act (PIPEDA).

Additionally, donors bring their own set of standards, codes and guidelines when
interacting with an organization. They are very critical of organizations that don’t appear
to operate in a highly ethical manner when it comes to the handling and communication
of information.

Organizations must understand the very critical need to protect sensitive information.

Information is the power to help very generous people do very generous things. Your
research needs to capture some specific information about prospective donors as well
as build the file on your current donors. For example:
Their connection to your organization: How long they’ve been supporting the
organization. Their level of engagement with what you are/do, with what you are
currently doing, and with what you hope to achieve in the future.
Their positive or negative experiences with you: Specifically, what you have done
about it. Personal relationships with volunteers and staff.
Gift/sponsorship information: How much they have given in total, what their first gift
was, what their last gift was. For what purpose their giving was used.
Demographic information: Their age, marital status, children/grandchildren. Notes
on what they have told you about their life experience.
Contact information: Name, address, telephone, cellular. Preferred method of
communication, alternate addresses if necessary.
Philanthropic interests, likes & dislikes: Known information about what else they
support in the community. What they are known not to support.
The hard stuff: Source of wealth, income and cash flow, type of assets. Type of
business.
Attitude toward recognition.

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There is online database management software available for purchase to assist you:
The Silent Partner – Fundraising Software http://www.thesilentpartner.net/
Giftworks Fundraising Software http://www.missionresearch.com/index.html
Charity Master http://charitymaster.com/
@Ease http://www.batschgroup.com/

Putting it off until there’s time means it will never be done. There is no “right” time for the
organization to pay attention to increasing the pool of prospective donors or cultivating
greater interest among current donors. These are the individuals, companies,
foundations and community groups that could—if given the chance—support your
organization.

Don’t expect part-time staff or inexperienced volunteers to understand what constitutes
“correct” information. This means that your information-gathering activities must be
carefully defined. You may want to use some or all of the areas identified above but
tailored to your organization’s needs. This also means that you will need some general
policies and procedures to safeguard the information you are collecting, including
details on who has access to the information and for what purpose.

Of course, the objective of prospect identification, information gathering and research is
putting the organization’s representatives in the best position to ask for support.
Sending cultivation teams or gift solicitors out with incorrect information is a disaster.

Finally, research needs to be appropriate. Although trivia is interesting, trying to discover
everything about everybody is not the best use of time and resources. To be effective,
organizations today must be very focused on acquiring information that will best lead to
the donor’s involvement and investment.

Prospecting, research and information gathering must lead to gift solicitation through
some form of fundraising activity.

Your organization can elect to solicit support from groups of people using a variety of
methods. A few of these methods include:

Special events
Direct mail
Telephone campaigns
Gaming
Service Clubs (i.e. Kinsmen, Rotary)

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Coin Cans
Online Giving
Planned Giving (i.e. Bequests, Securities)
Merchandise Sales
Pledge Events
Social Marketing tools (i.e. Facebook)
Cellular text donations…and many more.

Knowing something about these groups of people, especially if they have something in
common (age, location, background) can help determine what kind of event is launched
or what letter copy might be used to elicit the greatest amount of support.

Your organization can choose to solicit individuals and their families, companies and
foundations. As well as the information above, you will want to know something about
their philanthropic interests, their geographic scope, any conditions to giving, or how to
deliver the proposal.

The most effective fundraising is done face-to-face. Success is enhanced when you
have done your homework; when the organization is making the best use of its
volunteer or staff strengths; when it knows something about how the prospective donor
will react; when it has involved the prospective donor in your programs and services.

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In his book, Face to Face: How to get Bigger Donations from Very Generous People,
Canadian fundraiser, Ken Wyman, uses the following exercise to help bring out the
names of potential donors. These are categories of people you actually know who might
be donors. This page isn’t a complete list, just a memory aid. Look for one or more
names in each group and write them down. Say them out loud with your family and
friends —you might spark an idea for someone else.

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This worksheet is adapted from Ken Wyman’s book and is part of the “Webbing”
exercise, which shows how groups of people are interconnected. You can use the
following sheet as a tool to gather information about potential donors from volunteers
and others.

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Once identified, you will need to find ways to involve prospective donors in the
organization so that, eventually, they can become donors.

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This outlines some of the major steps leading to a gift. Steps are date sensitive
FOR EACH PROSPECT to ensure progress is being made toward solicitation
and closing the gift agreement.

Initial contact – anything that initiates a telephone call, referral,
introduction, or that creates a meeting.
Research – do detailed research on the prospective donor, update or
create a solicitation file.
Write a value proposition for the prospect (why they should give). Address
competing philanthropic interests, other known requests and a rationale
for solicitation.
Determine “right” contact or series of contacts who can champion the
organization with the prospect. Identify who will authorize a major gift.

Deliver Case for Support and take any steps that give the prospect
information with which they can build their file.
First pulse point – check research against contact’s interests. Adjust if
necessary.
Identify the solicitation team. Confirm ability to deliver Case materials &
proposals, time availability, training needs.
Deliver information requested by the prospect – case-specific information
to increase awareness and focus, tailored to the prospect and addressing
philanthropic interests.

Connect our campaign team members and prospect’s representatives.
Site visits and information receptions – tours, invite to any information
sessions and ensure attendance.

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Testimonial support – obtain outside and independent testimonials from
current partners, sponsors and supporters known to the prospect.
Highlight our legitimacy and the urgency of Case for Support.

First meeting – focus on key areas of interest, hear prospect’s ideas, and
listen for opportunities.
Second meeting – verbal and written response to information received at
first meeting; check accuracy of information and messages the prospect
may be sending.
Senior level contact – arrange several peer-to-peer contacts.
Third meeting – present proposal, set timetable for acceptance.

Manage proposal response. Make necessary adjustments, amendments
or interventions.
Gift agreement – written record of gift or partnership in the donor’s file.
Research updated – send confirmation to donor.
Stewardship plan written covering communication and recognition.

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Your Strategic Fund Development Plan is a written summary of your fundraising
goals and an outline of which fundraising activities you will use to achieve your
objectives within a given period of time. It is the result of a thorough review of
your organization’s mission and vision, a look at the environment in which the
land trust operates and, finally, an agreed upon course of action by the trust’s
leadership.

Second is setting your fundraising goals and determining which fundraising
activities to engage in.

Step One: Assemble all of the information you will need to include in the Plan.
Much of this is either readily available or may require a few special meetings or
conversations to acquire. Gather as much as you are able. The Plan is a living
document that will be updated from time to time to reflect the organization’s
growth and changes.

At a minimum, you will want to include:

A copy of your most recent audited (or unaudited) financial statement
Your current year operating budget
A list of approved needs and financial goals
Your Case for Support
Mission, vision and values statements
A very brief history of the organization

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Step Two: Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats)
analysis (or other method) to gather information about the environment in which
the organization operates. A SWOT analysis is useful because of its simplicity.
Involve those within the organization and a few from outside (donors perhaps) in
a discussion about the organization’s perceived strengths, its internal
weaknesses, what opportunities might move the organization forward and what
threats keep it from fulfilling its mission.

Step Three: Write the Plan. Someone in the organization should be assigned
the job of pulling all the pieces together and drafting the document.

The Plan should be circulated internally for input (not for critique or editing) by
those who may have additional or more current information. With the necessary
pieces in place, one person should be assigned the job of finalizing the Plan for
endorsement and approval.

This is a living document, so the Plan can either include the following information
if it is available or can be added at a later date:

Campaign themes
Target supporters—individuals, companies, foundations, community groups,
governments
Corporate sponsors and strategic partnerships
Community leadership
Donor recognition—policies & procedures

Step Four: Get Board approval and implement the Plan! This is actually quite
necessary and should be done deliberately. The Board is the organization’s
highest governing body and needs to authorize the Development Plan, endorsing
its objectives and giving it legitimacy.

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In fundraising, donors expect Boards to take a leadership position on resource
development. The Development Plan proves the organization has grappled with
the issues and is moving forward on achieving its goals.

Organizations must determine what the money’s for—operating income, capital
improvement, endowment building, special program funding. You can view
fundraising for these purposes in two ways:

Easiest is program costs; identifying all of your organization’s projects,
programs and services and their total dollar cost over the course of the year.

Harder to identify, and most often neglected in fundraising plans, are operating
costs. Harder, in the sense that there are sometimes portions of staff and
volunteer time to account for on programs and services. Most often neglected, in
the belief that donors don’t want to fund operating costs.

Like any other organization, nonprofits really only have one cost—what it costs to
deliver programs and services. These costs are for both program and material
needs as well as the operating costs that make delivering programs and services
possible.

It’s the sum of all the organization’s requirements. For example, the goal is to
raise $100,000 in year 2010 to ensure the Western Creek Land Trust remains
world-class and accessible for all. The Fund Development goal might be:

If asked what’s in the Equipment line item, the organization would be justified in
explaining a cost for maintenance. For Programs, delivery might involve the help
of part-time staff, or that one of the key programs is delivered indoors on
midwinter evenings and requires lighting and heat. The Bursary and Endowment

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funds might also include professional fees to establish the fund or manage the
portfolio. Every program or service offered by a nonprofit organization includes
operating costs. Tours don’t happen on their own; someone needs to organize
them. Land purchases aren’t done on a handshake. Conserved lands need to be
stewarded.

The organization needs to meet or exceed its financial goal through a diversified
fundraising program without depending on any one source of revenue. The Fund
Development program therefore looks to a variety of sources and attempts to
answer questions about what this support might look like.

A Development program summary of sources might look like:

A holistic approach to Fund Development treats all individual activities as part of
the whole. This means all of your organization’s fundraising activities are
interconnected and integrated. The objective is achieving balance among the
types of fundraising being done and the time, effort, and cost put into them.

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There are three general categories of fundraising and each has a specific
purpose and can require or involve different types of donors. You will have a mix
of these as part of your fundraising to provide donors multiple opportunities to
give, and so you can select or emphasize the fundraising that is most productive.

Annual giving programs run year-round, provide the organization with operating
income either designated for a specific purpose or undesignated for the
organizations use. Types of fundraising may be direct mail, small group
presentations, and special events. These are the primary fundraising methods
used to broaden support and upgrade gift levels among current donors.

Each organization has a special project for which it requires funding—be it
construction, renovation, special equipment, land acquisition or to build an
endowment. These are the “major gift” programs, characterized as intensive,
highly organized for a specific purpose, and carried out within a specified period.

Planned giving is the organization’s future financial cushion. It’s the process of
designing charitable gifts so donors achieve their philanthropic objectives and
make the most of any tax and other financial benefits. These are gifts of assets,
and the most often used in Canada are bequests and gifts of property. Unlike
many other charitable organizations, land trusts will make good use of this type
of giving.

January 2011


The Fund Development Plan drives fundraising, as it is the platform on which to
build the organization’s fundraising activities. However, the following are still
necessary:

Plans for each type of fundraising activity
Case Statements for individual programs and services
Lists of prospective donors
An outline of how to communicate with potential donors
Lists of potential fundraising volunteers
A fundraising budget

You will want to set goals and objectives for each type of fundraising. Some
simple measurements are the number of donors and donor renewals, how much
money needs to be raised and how much was actually raised, and which type of
fundraising was most effective.

Some additional areas to focus on that are important when evaluating fundraising
activity and determining whether to continue, abandon or change a particular
method are as follows:

Identify the people involved – whether these are staff members or
volunteers. List them and note their individual responsibilities.

Establish a timeline – each fundraising “campaign” has its own unique
timetable by which you can gauge its performance.

Chart a direction and the steps that need to be taken for each fundraising
activity. Communicate this among those involved.

Continue to involve your various constituencies. The more buy-in you have,
the easier it is to ask for money and the programs you choose will reflect
donor interests.

Set measurable goals and strategies. In addition to “soft” measures, make
sure you are reaching your “hard” targets.

Estimate costs and income projections and evaluate these indicators at
least twice annually.

Make sure fundraising programs support all of the organization’s needs
and are not too focused on one specific area.

January 2011


Case for Support

In ever growing numbers, Albertans are recognizing the value of our unique
landscapes and the need to conserve the places we cherish. Landowners have a
deep connection to their land and know the gifts that conserved lands provide
communities – clean air and water, healthy foods, wildlife habitat and scenic
beauty. All too often these special places disappear forever because of
development and urban sprawl. Albertans who want to conserve their land can
turn to land trusts – non profit organizations that work with landowners interested
in protecting open space.

The Alberta Land Trust Alliance (ALTA) is a registered charity formed in 2006
with a mandate to help conserve and protect Alberta`s environmental heritage
and landscapes of natural and cultural significance. The organization aims to
help maintain biodiversity and ecological integrity of those landscapes for public
benefit.

VISION
Alberta's future landscapes are rich in biodiversity and have strong ecological
integrity.

MISSION
To represent the land trust community and build capacity in land trusts to
conserve diverse and ecologically important landscapes in Alberta.

“If we want our children to enjoy the same quality of life that current generations have, we need a
new land-use system… Clean water and air, healthy habitat and riparian areas, abundant wild
species and fisheries are all ‘public goods’ that Albertans enjoy and value.”
Land-use Framework, Government of Alberta

HISTORY
In 2006, Alberta Environment brought together Alberta’s land trust community to
explore ways to enhance the use and delivery of conservation easements in the
province. At that time, Alberta Environment was responsible for conservation
easement legislation and recognized that land trusts played an important role in
securing conservation easements on private land. Attendees identified a number
of priority issues including a recommendation for coordination among Alberta’s
land trusts. In response to this, Alberta Environment announced $300,000 in

January 2011


provincial funding and secondment of a staff person over three years for the
creation and facilitation of the Alberta Land Trust Alliance (ALTA).

Now in its fourth year of operation, ALTA has recently received charitable status,
and as such, is reaching out to a wider range of potential stakeholders. Operating
costs remain very low, thanks to the generous in-kind contribution of office space
by the Alberta Water Council. The organization is well positioned to make great
strides in facilitating future land conservation in Alberta.
More than one third of Alberta’s land is privately owned and managed. Alberta’s landowners are
faced with competing land pressures and many are seeking ways to conserve their lands through
personal action. Alberta’s land trusts work directly with these private landowners and build
partnerships for responsible stewardship of private lands.

ACCOMPLISHMENTS
There are more than 1000 conserved properties in our province, representing
more than 150,000 acres, which are owned by land trusts and others.

There are more than 1500 conservation easements in Alberta representing more
than 115,000 acres. 50 percent of these conservation easements were
completed by land trusts.
Source - Public and Private Contributions to Conservation,
Olaf Jensen, Environment Canada, 2009

ALTA’S PRIORITIES
The land trust movement has an urgent mandate to secure lands for
conservation given the pressures of development, urban sprawl, climate change,
intergenerational land transfer and biodiversity.

ALTA does not intend to own or hold conservation lands or conservation
easements but will provide service and support to those that undertake these
activities. ALTA will continue to serve as a resource to government as policies
are developed and will become a trusted source of information for industry,
agriculture and community stakeholders.

Outcomes of major actions that ALTA will be undertaking in the next 36 months
include:

1. Increasing public awareness of the value of land conservation and land
stewardship;
2. Advancing environmentally sound stewardship among landowners and
increasing their understanding of environmental issues pertaining to
specific areas of land in Alberta;
3. Educating potential stakeholders about the role that local land trusts can
play in preserving land in perpetuity;
4. Fostering relationships and building linkages within the land trust
community in order to advance the work of local land trusts;

January 2011


5. Working with all levels of government to influence positive land
conservation policies;
6. Increasing the number of acres of conserved lands in Alberta by building
capacity in local land trusts;
7. Identifying where gaps may exist in specific areas of the province and
assisting with the formation of new land trusts at the grassroots level.
8. Speaking as a unified voice on behalf of our member organizations.

With increased awareness of land trusts and more education on the value of conservation, there
will be increased donations of land – the best legacy gift to the environment sector and to all
Albertans.

ALTA MEMBERS
ALTA Members adhere to a national set of standards and practices regarding the
broad spectrum of land trust activities.

The organization serves 17 member organizations including 11 land trusts.

Member Land Trusts Other Member Stakeholders
Alberta Conservation Association Alberta Environmental Law Centre
Alberta Fish & Game Association Beaver Hills Initiative
Crooked Creek Conservancy Society of Athabasca City of Edmonton
Ducks Unlimited Canada Miistakis Institute for the Rockies
Edmonton & Area Land Trust Rockyview County
Foothills Land Trust Special Areas Board
Land Stewardship Centre of Canada
Nature Conservancy of Canada
Southern Alberta Land Trust Society
Western Sky Land Trust
Wild Elk Federation

ALTA also encourages involvement by individuals, businesses and government
agencies as associate members.

ALTA is positioned in the community to work across political boundaries,
assisting local land trusts and empowering landowners to take responsible
action.

“We would like to know how our land can be kept in its natural state so that future generations of
Albertans can enjoy it, and we look to the Alliance to give us information in this respect.”
Anne and John Packer, Landowners - Bruderheim, Alberta

FOR THE LOVE OF OUR LAND
As stated in Alberta's Land-use Framework (http://landuse.alberta.ca/) - Alberta's
prosperity has created opportunities for our economy and people, but it has also
created significant challenges for Alberta's landscapes. Industrial and agricultural
activity, municipal development, infrastructure, recreation and conservation
interests often compete to use the same piece of land. The competition between

January 2011


user groups creates conflict, and often puts stress on the finite capacity of our
land, water and habitat.

Alberta’s land base is approximately 158 million acres (64 million hectares) - it is
the sixth largest province in Canada. The population of Alberta is 3.63 million,
GDP is $258 billion, and the province leads the nation in real economic growth
which, from 2003 to 2008, was 3.8 per cent (Alberta Government, 2009).
Agricultural production uses 31.7 per cent of the land in Alberta. An estimated
19.5 percent of this agricultural production takes the form of improved farmland
and cultivated crops. Notwithstanding the contributions of agriculture to the
economy - the exploration, extraction, processing and refinement of fossil fuels is
the dominant component of the provincial economy.

To date, there are nearly 140,000 oil and gas wells that have been drilled in
Alberta; 10,672 conventional and 5,426 oil sands wells were drilled in 2008 alone
– of these, 3,225 oil wells and 10,062 gas wells were completed (brought into
production) and an additional 1,737 were dry and serviced. There are over 600
drilling rigs active or available in Alberta every day (Alberta Energy, 2009).

Alberta is a resource based economy. Agriculture, forestry, conventional oil and
gas development, and oil sands (bitumen) extraction are the primary drivers of
both the economy and habitat change and it is within this busy landscape that
private and public agencies are striving to meet a number of conservation
objectives.

In 1987 the World Commission on Environment and Development (the
Brundtland Commission) published its report, Our Common Future, in which it
was suggested that 12 per cent of land in any jurisdiction should be protected. In
response, the Government of Alberta, through its Special Places Program,
increased protected areas from 9.5 to 12.2 per cent between 1995 and 2002.
The provincial government mandated that these protected areas be
representative of the six natural regions of the province (Dyson, 1996).

At present, lands designated as parks under federal or provincial legislation or
managed by private organizations that have a mandate for conservation
comprise 12.7 per cent of the provincial land base. While this is an
accomplishment, it is clear from even a casual analysis that these protected
lands are not distributed evenly across Alberta’s nineteen ecological regions and
six ecological zones. Private land is often the most threatened with biodiversity
loss due to the pressures of development. Open spaces are shrinking.
Preserving natural and public goods depend upon our ability to preserve private
and public lands.

Recent analysis suggests that 20 to 30 percent is a more appropriate target for a
biologically viable protected areas network (Shaffer, 2002).
Source - Public and Private Contributions to Conservation,
Environment Canada, 2009

January 2011


ALTA will work to bring government, industry and private landowners together to
ensure intergenerational responsibility is a key consideration in all forms of
human land use.

As further stated in the Land-use Framework - Alberta's lands should be
managed to ensure healthy ecosystems. The Alberta Land Trust Alliance (ALTA)
believes that Albertans must accept the responsibility of stewarding our land so
that they pass lands on to future generations in as good or better condition than
before.

“Cumulative effects management recognizes that our watersheds, airsheds and landscapes have
a finite carrying capacity. Our future generation will depend on how well we manage activities so
that they do not exceed the carrying capacity of our environment.”
Land-use Framework, Government of Alberta

Ultimately, ALTA will build capacity in local land trusts to enable these
organizations to conserve more land. Through our efforts, communities will
learn more about conservation and ways to protect private land. Once better
informed, landowners can consider their own personal options and how their
decisions will impact Alberta's natural areas. Individual and collaborative action
will result in more acres of conserved lands - reducing biodiversity loss,
protecting wildlife and plants, and protecting and improving
the habitat where they live.

BENEFITS OF CONSERVING LAND
Saving Limited Resources
Our air and water are limited resources. The tree canopy and vegetation serve as
critical filters for our air. Wetlands that border our rivers, lakes and streams filter
pollution before it reaches our drinking water. If we do not remove the pollutants
that our society puts into the air and water, we consume them ourselves.

Boosting Our Economy
In addition to health and food benefits, conserving land increases property values
near greenbelts, saves tax dollars by encouraging more efficient development,
and reduces the need for expensive water filtration facilities. Study after study
has demonstrated the tremendous economic benefits of land conservation:

A Return on Investment: The Economic Value of Colorado’s Conservation Easements, 2008,
http://www.tpl.org/content_documents/Final%20report%20ecosystem%20services.pdf

Report – Managing Growth in New Hampshire, 2005,
http://www.tpl.org/content_documents/nh_growthExecutiveSummary.pdf

January 2011


What is a land trust?
A land trust is a non profit organization that actively works to conserve land by
undertaking or assisting in land or conservation easement acquisition, or by its
stewardship of such land or easements. Land trusts (sometimes called land
conservancies) have existed in North America since 1891. However, it is only in
the last two decades that the land trust movement has really taken hold as one of
the fastest growing and most successful conservation movements in our history.2

Land trusts conserve all different types of land. Some protect only farmland or
ranchland, while others conserve forests, mountains, prairies, deserts, wildlife
habitat, cultural and heritage resources such as archaeological sites or
battlefields, urban natural areas, scenic corridors, wetlands or waterways. It is up
to each organization to decide what type of land to protect according to its
mission. Some parcels protected by land trusts have no, or extremely limited
public access, for the protection of sensitive wildlife, or to allow recovery of
damaged ecosystems. Many protected areas remain under private ownership,
which limits access as well. However, in many cases, land trusts work to
eventually open up the land in a limited way to the public for recreation in the
form of hunting, hiking, camping, wildlife observation, or other responsible
recreation activities. Some land may also used for sustainable agriculture,
ranching or logging.
Source – www.landtrustalliance.org
2005 National Land trust Consensus (2006), Land Trust Alliance

How is land conserved by land trusts?
Land trusts have many options available to conserve land. The most common
options are the acquisition of fee simple interests in land and of conservation
easements.

Fee Simple
A land trust can conserve land through an outright purchase or donation, in which
the landowner sells or grants all rights, title and interest in the property to the
land trust. The land trust maintains perpetual stewardship and management
responsibility for the land. It owns the land and may grant conservation
easements on the land it owns to another conservation organization, agency or
municipality.

Conservation Easement
A conservation easement is a legal agreement between a landowner and a land
trust or government agency that permanently limits uses of the land in order to
protect its conservation values. It allows the landowner to continue to own and
use the land, subject to the restrictions imposed by the conservation easement,
and to sell it or pass it on to heirs. A landowner may sell a conservation
easement, but usually easements are donated. If the donation benefits the public
by permanently protecting important conservation resources and meets other

2
2005 National Land Trust Consensus (2006), Land Trust Alliance

January 2011


federal tax requirements, it can qualify as a tax-deductible charitable donation.
The amount of the donation is the difference between the land’s value with the
easement and its value without the easement. Placing an easement on property
may or may not result in property tax savings.

Perhaps most importantly, a conservation easement can be essential for passing
land on to the next generation. By removing the land’s development potential, the
easement lowers its market value, which in turn lowers estate tax. Whether the
easement is donated during life or by will, it can make a critical difference in the
heirs’ ability to keep the land intact.

Other Methods
Conservation Offsets
Transfer of Development Credits
Conservation Directives

Land trusts help your community:
By helping individuals protect community resources that come from the
land – water, food security, wildlife, and places for recreation and
reflection;
Promoting stronger local communities by giving citizens the knowledge
and support they need to reach out and work with their neighbours to
protect the local places they need and love;
Serving as a part of a national community of land trust staff, volunteers,
members and advocates committed to private land conservation across
the Canada.

Land trusts help preserve land for future generations, protect our food and water
supply, provide wildlife habitat, and strengthen communities.

WHO MAKES UP THE LAND TRUST COMMUNITY
The land trust community includes private landowners, researchers and
academics, allied professionals (i.e. appraisers, lawyers and accountants),
industry, government representatives from municipal, provincial and federal
departments and the public.

GET INVOLVED
You can join the growing land trust movement and assist ALTA in achieving our
urgent mandate by:
Making a donation
Funding an initiative
Volunteering your time
Sharing your expertise

January 2011


Contact us to learn more!

Alberta Land Trust Alliance
1400, 9915-108 Street
Edmonton, Alberta Canada T5K 2G8

T: 780-644-7384
F: 780-644-7385
E: albertalandtrust@shaw.ca

Charitable Registration No. 85879 9893 RR0001

www.landtrusts-alberta.ca

There is nothing in which the birds differ more from man than the way in which they can build and
yet leave a landscape as it was before. ~Robert Lynd, The Blue Lion and Other Essays

January 2011

6 of 6 fund development

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