Ronald McDonald House Development Plan

2009 Draft
Development Plan
Presented to the Board of Trustees
January 2009

Presentation Overview
• 2006 and 2007 Efforts
• Success in 2008
• Our Plan for 2009
• What We Need from the Board
• Key Considerations for the Future

2009 Draft Development Plan

Fundraising History


Annual Fundraising in 2006
Raised $642,649 M isc .
20%
Wint er Gala
20%

*The Misc. category
includes Room Rent
Grants, Vending M em / Honor
Proceeds, 4%
Reimbursements, 3rd
Party Room Rent,
Taxable Sales, Canister
Proceeds, Resale,
Dividends, Family Room Dir ec t M ail
Restricted, Decorating
11%
Restricted, House Guest
Activities, Basketball
Event, Endowment
Unsolic it ed
Income and Staff Holiday
Pop Tab s 30%
Gift Grants.
3%

Thir d -Par t y
12%


The Decision to Expand
Development Programs
• Raise additional support to enhance services to
families
• Raise money cost-effectively
• Educate the public about RMHD
• Enhance visibility in the community
• Broaden the donor base to have more prospects
for expansion projects


Annual Fundraising in 2007
Raised $1.03M M isc .* Wint er Gala
14%
60% increase over 2006 14%

M em / Honor
2%
*The Misc. category
includes Room Rent
Grants, Vending
Proceeds, Dir ec t M ail
Reimbursements, 3rd 11%
Party Room Rent,
Proceeds, Resale,
Dividends, Family Room Pop Tab s
Restricted, Decorating Unsolic it ed
2%
Restricted, House Guest 32%
Event, Endowment
Gift Grants.

Thir d -Par t y
25%

The Big Increase in 2007
• Raised over $1.03M (a 60% increase) through the
following extraordinary circumstances:
– $140,000 gift from Michael Jordan in third-party
fundraising; more than anticipated and non-
renewable
– $75,000 bequest from a donor in Durham
counted as an unsolicited gift; not replicable
– $51,000 increase in endowment income; non-
renewable
– Direct mail program doubled to nearly $100,000
with November/December partnership with
Lautman, Maska, Neill & Co.

Annual Fundraising Projections
for 2008
M isc .
Projected income of $1.12M 12% Wint er Gala
through Dec. 31 20%
8.4% increase over 2007

*The Misc. category
includes Room Rent
Grants, Vending
Proceeds,
Reimbursements, 3rd Unsolic it ed
M ajor Giving
Party Room Rent,
25% 10%
Proceeds, Resale,
Dividends, Family Room
Restricted, Decorating
Restricted, House Guest
Event, Endowment
M em ./ Honor
Gift Grants.
2% Thir d -Par t y
18%
Dir ec t M ail
11% Pop Tab s
2%

What We Learned in 2008
• We sustained our $1M+ overall fundraising
• Larger effort on the Winter Gala
– Sponsorships and auction increased revenue
by $85K
• Direct Mail Program
– Increased mailings projected to raise over
$124,500
– Acquisition mailings increased donor file by
62%; 1,700 new doors
– Reduced unsolicited gifts

What We Learned in 2008
• Hearts of Hope Society
– Raised $276,000 in 2008 from 125 donors
• Groundwork laid for grant program
• “Bread and butter” programs work
• Weathering the economic storm
– Expect average gift size to decrease
– Need to add new donors
– Work to maintain relationships with key donors
– We are beating the economic forecast


Fundraising Returns Since 2006
$350,000

$300,000

$250,000

$200,000

$150,000
2006
2007
$100,000
2008
$50,000

$0
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Fundraising Returns Since 2006
$ 1 ,2 0 0 ,0 0 0 $ 1 ,1 2 0 ,7 4 7
$ 1 ,0 3 2 ,7 0 4
$ 1 ,0 0 0 ,0 0 0

$ 8 0 0 ,0 0 0
$ 6 4 4 ,6 5 6
$ 6 0 0 ,0 0 0

$ 4 0 0 ,0 0 0

$ 2 0 0 ,0 0 0

$0
2006 2007 2 0 0 8 Pr oj .


Moving Forward in 2009


2009 Development Plan
Need to raise $954,000 through the following:
• Board Giving Campaign
• Major Donors ($1,000+) through Hearts of Hope
• Winter Gala
• Direct Mail
• Grants
• Third-Party Fundraising
• New low-dollar program
• Community-based fundraisers
• Non-revenue programs


Board Giving
• Ask each BOT member to give/get an average
of $2,500
• Total goal is $50,000
• Represents 5.25% of annual fundraising goal
• Sets the tone for community support

$ 6 0 ,0 0 0 $ 5 0 ,0 0 0

$ 4 0 ,0 0 0 $ 1 6 ,1 9 6 $ 2 3 ,7 7 5
$ 2 0 ,0 0 0
$0
2007 2008 2 0 0 9 Goal


Major Donors ($1,000+)
• Boost Hearts of Hope Campaign
– Use executive volunteer and staff time to re-
solicit all 2008 major donors
– Ask donors in the $500-999 range to upgrade
to Hearts of Hope-level in 2009
– Recruit new major donors through board and
volunteer partnerships
– Challenge program with long-time donors


Major Donors ($1,000+)
• Timeline:
– Kick-off at the Winter Gala in February
– Network meetings and solicitations from
March through November
– Three receptions in April, July, and October
– Celebration event on November 18


Combined Major Gift Chart
Count Cumulative
from Investments Prospects Percentage
Gift Size 2008 Needed Needed Amount of Goal
$25,000 3 3 6 $75,000 22%

$10,000 3 5 10 $50,000 37%

$5,000 11 10 20 $50,000 52%

$2,500 7 25 50 $62,500 70%

$1,000 104+ 100 200 $100,000 100%

Reflects Hearts of Hope and TOTAL $337,500
Board Campaigns combined.


Winter Gala
• February 6, 2009 at Washington Duke Inn
• Goal to gross $203,434; costs $50,000
• Sponsorship confirmations:
– Skanska ($25,000)
– Duke Children’s Hospital ($10,000)
• Pending asks:
– RBC Bank ($25,000)
– CapTrust ($5,000)
– BCBS, Harrington Bank, Quintiles


Direct Mail
• Projected to gross $160,300
• Total projected investment of $5,400
• Four appeals (February, April, September,
November)
• Two acquisitions soliciting 175,000 prospects
– 2,075 new donors projected, doubling donor
file since 2006
• Special appeal to new donors
• Newsletter/Annual Report in June


Direct Mail
Quantity Number Percent Gross Average Total Cost Net
Mailed of Gifts Response Income Gift Income

Appeal Mailings to Existing Donors
February 3,750 225 6.00% $16,875 $75.00 $6,000 $10,875
April 5,500 440 8.00% $17,600 $40.00 $7,700 $9,900
June (new) 825 83 10.00% $4,125 $50.00 $2,640 $1,485
September 4,250 255 6.00% $16,575 $65.00 $6,800 $9,775
November 4,250 340 8.00% $42,500 $125.00 $6,800 $35,700
Acquisition Mailings to New Donors
April 75,000 825 1.10% $23,100 $28.00 $31,500 ($8,400)
November 100,000 1,250 1.25% $37,500 $30.00 $40,000 ($2,500)
Spillover revenue & Fees $5,000 $66,000
Total 191,825 3,203 $160,300 $165,740 ($5,440)


Third-Party Fundraising
• Support all feasible opportunities, but prioritize
on enhancing most reliable and profitable
programs:
– Duke Dining/McKids
– Paul Goodson Golf Tournament
– Fitness World 5K
– Alpha Delta Pi Fundraising
• Goal to raise $90,000


Friends of RMHD
• New low-dollar program
• Harnessing momentum seen in 2008 elections
• Will solicit monthly recurring donors, starting at
$10/month
• $2,500 monthly goal; $30,000 annually
• Led by volunteer leadership
– Rachel Kovick, Inaugural Chair


Grants
• Work with grant-writer to explore corporate and
foundation grants; goal of $60,000
• Ronald McDonald House Charities grant of ~$40,000
• Explore collaboration opportunities with other NC
Houses; $10,000 goal (BCBS, Kate B. Reynolds)
• Identified priorities for 2009:
– Community Foundations of Cumberland County,
Robeson, and Western North Carolina
– The Lovett Foundation
– Lincoln Financial


Community Fundraisers
• Sport-a-Shirt/Share-a-Night
– T-Shirt fundraiser with other
NC houses
– Reallocation of staff time for program
• Great Human Race
– Local fundraising race
– Matched by local foundation
• Combined goal of $28,000


Other Programs
• In-Kind Donations
– Search for budget off-setting donations
– Awning, parking lot, linen service
• Programmatic needs
– Finish website
– Develop House brochure
– Explore eMarketing with Bronto


Board Roles and
Responsibilities


What We Need from the Board
The only resource
we can’t make
more of!
Where do we focus
our attention?
Time/ Hearts of Hope
How do we People committee members,
maximize your time Leadership New board members
as board
members?
How do we make
your time on the
Board rewarding?

Money
Board give/get, Corporate sponsors


What We Need from the Board
• Time
– Quantitative discussions at board meetings
and via email
– Donor acknowledgement at board meetings
– Board Committees
• People
– Recruit members of HOH Network,
Development Committee, and Board
– Prospecting worksheet
• Money through the Board Campaign


Key Considerations
• The economy is tough, so we have to work
harder
– More solicitations
– More exposure
– Aggressive donor acknowledgement
– Adjusted expectations
• This year sets the tone for our ability to raise
capital dollars


One Final Thought
Never think you need to
apologize for asking
someone to give to a
worthy cause, any more
than as though you were
giving him or her an
opportunity to participate
in a high-grade
investment.
The duty of giving is as much his or hers as is
the duty of asking yours.
2009 Draft Development Plan - John Rockefeller, Jr.

Questions or Thoughts?
Noreen Strong, Executive Director
director@ronaldhousedurham.org
(919) 286-9309 x122
Derwin Dubose, Annual Fund Director
derwin@ronaldhousedurham.org
(919) 286-9309 x125
Ric Richards, Development Chair/Board President-Elect
ric_richardsmgmt@bellsouth.net
(919) 395-6002


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