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CFRE Leadership/Management
The mission statement is - the declaration of the organization's cause, or purpose, for being. The mission statement - serves as a rational argument for voluntary giving of time, talent and treasure by the public The mission statement - invites the public's active participation and financial support The practice of philanthropy involves - volunteer service in addition to gifts. When a not-for-profit is seeking to be incorporated - it must submit a mission statement that explains its purposes, goals and objectives. The mission statement must describe - why this institution or agency was founded and what it is committed to accomplish. The statement of mission - reflects the dominant values of the organization and is a cogent argument as to why those values should be served, expanded, strengthened and multiplied. The voluntary Board of Directors must take responsibility for - that all services provided will be faithful to the mission That all funds received will be used in fulfillment of that mission and not for the private inurement of any boardh member, employee, client or other person involved. Components of a mission statement - declaration of cause, explains its purpose, why the institution was founded and what it is committed to accomplish, what needs the org meets in the community and the clients it aims to serve The mission statement should be written - in language that is clear and concise enough to provide a context for decision making. The mission statement is the context - for the strategic planning process A mission statement can be used for - the strategic planning process, a case statement A vision statement - is a guiding IMAGE of success, based on reasonable assumptions about the future.
A vision statment answers the question - What will success look like? A vision statement can - inspire and motivate people to work together in the pursuit of this shared image of success. A vision statement must be - Plausible, yet inspiring. A vision statement drives - the long-range planning process A vision statement can change - as often as needed A missions statement can change - infrequently. The mission statement is intended to summarize - where an organization is going, not where it has been. The mission statement summarizes the - WHY, WHAT, And HOW of an organizations work. A vision statement presents - an image in words of what SUCESS for the org will look like when achieved. An example of a vision statement - We have a vision to be the first post-accute care organization in the nation. An example of a mission statement - We seek to care for the frail elderly giving them options for their care and be a leader in developing choices for them to receive quality care for the remainder of their lives. A mission statement typically describes an org in the following terms: - Purpose- why exists & what accomplish Scope of Service-the main method or activities to fulfill pupose Values- the principles or beliefs that guide org. as they pursue the orgs purpose. A mission statement is the basis for - planning-which is a future oriented activity. Effective vision statements - project both an external and internal image of what might be. External vision statement -
Memorial gifts are no longer the majority of an organization's fundraising income. It is now time to: _____ - Develop a new strategic plan. An organization observes that competitors are begining to receive a larger share of the philanthropic pie. The organization should: A: Review its mission statement B: Develop a new case statement C: Develop a new fundraising strategic plan D: Review its vision statements - Develop a new fundraising strategic plan What Board committee or committees must ensure that restricted funds are properly accounted for and used only for their restricted puposes? - The finance and the investment committee Overseeing that funds held as endowments are professionally invested and that charitable trusts are managed with faithful payments should be handled by which board committee/s - The finance and investment committee. This board committee is responsible for evaluating prospects' giving potential, defining realistic expectations for each method of fundraising used. - The fund development committee The fund develpment committee should also monitor - Performance including cost effectiveness analysis. The fund development committee should - report progress at board meetings Regular evaluation of the executive director/CEO should be handled by - The board What percentage of the board should be giving to the organization? - 100% One hundred percent participation in donor and fund development activities is expected from _____________ - The board The boards PRIMARY responsibility is - The organizations FINANCIAL security. Because management of fund development operations requires a high sense of DUTY, _________ should manage the overal fund development:
A. Staff B. the Board C: Volunteers - The board In creating the fund development committee: the board should
- appoint one of its members to serve as chairperson. then ____________________________ should select volunteers to work on the committee? A. CEO B. Development VP C. Board Chair D. Development Fund Chairperson - Development Fund Chairperson The fund development committee should - oversee the operations of all fundrasing activities, establish policies and procedures, set annual goals and report this to the board. The fund development committee establishes - an accountability that everyone involved will observe and respect regarding fundraising activities. The board of directors can find guidance for achieving readiness for operations and fund raising, set strategic goals, program objectives and set the annual operating budget guided by - The organizations mission and purpose. An organizations mission, vision and values, plus its purpose, goals and objectives should be assessed and evaluated every ________. - Three years and no less frequently than every 5 years. A long-range plan must begin with - The vision of top leadership, whose duties include providing credible answers to donors who ask, "What is the money for?" For a quick review to signal any change in public acceptance of the appeal message of a direct mail campaign measure ___________ & ____________. - Percentage rate of return and average gift size. ____________________ is helpful to define audiences of potential volunteers or new contributors by estimating their responses and projecting their potential for dollars given in by responding to selected priority projects. - Market research Market research - might ask individuals to rate selected priority projects
Marketing Defining stakeholder and constituent groups should be included in the ____________________ plan Communicaitons, Marketing or Fund Development - Marketing and Fund Development. The identification of the needs of the constituents and the community that the org is trying to help would occur through _________________ (market, communications, fund development research/plan) - Market- the organization must know what criteria individual and multiple stakeholders are using to judge the success of its performance. The ultimate strategy by which the needs of the constituency will be satisfied would be determined through ________________ (market, communications or fund development research) - Market- the strategies and philopohies used by the not-for-profit must be in keeping with its core set of values, otherwise there is little chance of achieving stakeholder satisfaction. Marketing and Communications are linked because - An organization will need to use communications strategies to help meet its marketing objectives. Public relations activities are ________________ strategies (Marketing, Communications or Fund Development) - Communications- managing public information and publications. Also known as corporate communications. Communications involves - good writing techniques, advertising and media relations, tracks public responsiveness, distribution of collateral material: CRAFTING AN ORGANIZATIONAL MESSAGE DESIGNED FOR AN EFFECT ON EACH AUDIENCE. Counseling senior management on adjusting the organizations behavior when it is in disharmony with the needs and interests of those in the public would fall under (Marketing, Communications, Fund Development) - Communications Marketing identifies the target audiences, Communications crafts the clear messages and the consistent story. Now Fund Development_____________ - Demonstrates the "Call to Action" based on the value of public participation in a charitable cause or project" ________________ builds upon the publics trust to openly disclose operating details along with the mission, purpose, goals,et in an invitation to them to share their time, talent and treasure. - Fund Development
The components of a Strategic Plan are: - Mission Vision Assessment Goals and Objectives Action Plans Processes for monitoring progress Evaluation processes Strategic Plan Components: Mission and Vision then ______________ - Assessment Strategic Plan Components: Mission, Vision, Assessment then______________ - Goals and Objectives Strategic Plan Components: Mission, Vision, Assessment, Goals and Objectives, then _______________ - Action Plans Strategic Plan Components: Mission, Vision, Assessment, Goals and Objectives, Action Plans then ______________________ - Processes for monitoring progress Strategic Plan Components: Mission, Vision, Assessment, Goals and Objectives, Action Plans, Proceses for monitoring progress, then ____________ - Evaluation processes After the mission and vision has been established, the first part of a strategic plan involves the ______________ of the organization's fundraising potential - Assessment This is one of the most important parts of a fundraising strategic plan:_______________________- - The assessment of an organization's fundraising potential. The assessment of an organization's fundraising potential is the most important part of the strategic plan because - It helps confirm that the major factors affecting an orgs. ability to attract private gifts has been systematically analyzed. The purpose of an assesment is to -
The purpose of the Evaluation process is - To explain HOW and WHEN the overall development effort will be evaluated and to provide guidance as to how this will take place. The ___________________prepares and submits the overall program evaluation to the CEO. (Chair of the fund development committee, the CDO or a volunteer?) - The Chief Development Officer To assess an organization's impact on the community, these 5 things should be evaluated -
- The mission/vision/values
- operations
- Management
- programs and services
- Accountability ________ is defined as th responsibility, duty and obligation of the board of directors working in concert with senior administrative staff to successfully manage the organization's programs & services and to steward all its fiscal activities. - Governance The 3 common-law fiduciary duties of the board are: - Duty of Care, Duty of Loyalty and Duty of Obedience Acting the way a prudent individual would act in similar circumstances is Duty of _________________ - Care Duty of ___________places the organization's interests above those of individual board members. - Loyalty Duty of ____________: acting within the law and the orgs own articles of incorporation, bylaws and written policies. - Obedience Policies should be reviewed at least every ____________ years. - 3 A particularly important governance function of the board is: - Setting policy. The board is responsible for being certain the foundations records are audited by - a reputable CPA firm. Development staff support board members by providing: -
Access to the development office and info, careful and efficient use of board member time, evaluation fo all results A ________________ can help an organization assess the current status of its fundraising programs against its POTENTIAL for future sucess. - Development Audit A Development Audit - Evaluates a component of the organization rather than the entire organization. A development audti begins with a SWOT analysis and results in - planning a more effective and cost efficient fundraising program. A developtment audit can be done by - outside counsel. Components of an audit include an _______________ assessment and an _______________ assessment. - Internal and External 5 areas of an internal assessment include: - Personnel, budget, physical facilities, operating systems and technology, support programs. The external assessment - explores the true external environment and the environment external to the department but within the organization. An audit should also includeassess: - The relationship of the development department with other areas within the organization to ensure internal acceptance of the department and its role and to assess the viability and effectiveness of the working relationships between departments. As a part of the external assessment, an analysis of the___________ is an important element. - size and scope of the donor/prospect constituencies Segmenting the donors and analyzing patterns should - encourage staff to create/adapt new program strategies in response to the emerging patterns. To create an understanding of the current program by preparing an inventory of the scope, dept, history and performance of fundraising programs an _______________ can be performed. - Audit Engaging volunteer leadership through the use of a confidential survey is an example of an ______________. - Audit
Marketing - develops and promotes the programs and services offered by the org. Establishes the value of the org to the community and the value of philanthropic support Public Relations/Communications - translates the strategic plan and it's marketing objectives and commuicates them to the constituencies to encourage awareness and understanding. ESTABLISHES INSTITUTIONAL CREDIBILITY Development - aquires the funds to support the programs that carey out the orgs mission and strategic plan. Before gifts can be requested- must first be informed and ready to give::achieved through marketing and PR activities. Which uses marketing principles? -cultivating and seeking a major gift from a board member -submitting a grant proposal to a foundation -a press release about a holiday gala -meeting with other senior staff to seek approval of an expanded department budget - ALL of them! They ALL position the org as a needed community resource. Rosso's constiuency circles are related to marketing and PR by - establish marketing and PR priorities and help to draw those on the outside, closer to the middle marketing - Positioning the org as a needed community resource The goals and purposes of marketing include: - articulate the mission foster beneficial and rewarding relationships attract new patients/clients attract needed resources ensure the survival and continued growth of org. Marketing is - a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others. The exchange concept-a key marketing principle - The idea that at least 2 parties voluntarily exchange something of value. In the exchange, each party seeks to satisfy his or her own needs. Through a sucessful exchange each achieves mutual satisfaction. The exchange principle helps development staff take a __________ - donor centered approach in designing to seek donor needs.
When organizations meet the needs of their current and prospective donors, - those individuals are more likely to engage in an exchange by making a gift. An example of the exchange principle for volunteers: - They offer: manpower, lower costs They receive: Satisfaction, new skills and affiliation Sending more than one version of a direct mail letter such as one for past patients, another for current donors and a 3rd for lapsed donors is an example of_______ - Marketing segmentation. Other marketing principles: -positioning-viewed vs competitors -branding -marketing mix-service,access, cost and communication -marketing messages-attention, interest, desire, action -product life cycle-a special event will take a while to grow, then no longer be productive. - ... Most important marketing principles for fundraising - -know audience -use market segmentation -use market research -personalize -articulate benefits or participating/giving -mindful of emerging trends -integrate marketing, strategic planing, PR and dev. The development of a personal cultivation and solicitation plan for a major donor is an excellent example of applying______ - Marketing principles to development. A policy development process should be sponsored by _________ - The board or board committee The first step of policy development is to - have staff review current policies, indentify needed changes and appropriate legal requirements. ______________should draft policy with board knowledge/input. - Staff ______________ approves policies & procedures. - Board
includes guidelines for scheduling password changes and storing passwords in secure locations. 3 areas of fundraising financial management are - budgeting, financial statements and ROI The basic idea of a fundraising budget is to_____ - Forcast a reliable level of gift support in return for an annual investment usually at a highly profitable level ($0.20-0.30 per $1.00 raised) Budgets help review performance which lead to _____ - an evaluations analysis to justify the continued or expanded costs of annual operations. Fundraising budgets should be submitted with - estimates of revenues linked to the costs to produce them. Fundraising budgets should be broken out by indiviudal methods because - fundraising methods function at different levels of efficiency. The reasonable cost guideline for direct mail acquisition is - $1.25 to $1.50 per $1.00 raised The resonable cost guideline for Direct Mail Renewal is - $0.20 to $0.25 per $1.00 raised The resonable cost guideline for Special Events is - $0.50 per $1.00 raised ** gross revenue and direct costs only The resonable cost guideline for Capital Campaigns - $0.10 to $0.20 per $1.00 raised The resonable cost guideline for Planned Giving - $0.20 to $0.30 per $1.00 raised What is the most efficient way of raising donations according tot the resonable cost guidelines? - Capital Campaigns $.10 to $.20 per $1.00 raised The standard means to monitor income and expense are________> - Monthly accounting reports An organization's finance department usually prepares___ - Financial statements and annual audits. The expenses of fundraising are always included in - Financial statements and annual audits
Fundraising departments should also prepare 3 summary gift reports to illustrate results: ___________- -
- Sources of gift income
- Performance if each fundraising method producing income
- The purposes or restrictions for funds used by org. The Standards for Charity Accountability published by the BBB suggest that orgs spend no more than______________% of related contributions on fundraising. - 35% The basic data for th 9 point performance at the top is_______, ___________, ___________ -
- Number of participants that gave
- Income
- Expenses The 6 Performance Measures on the 9 point performance index are: -
- Percentage of participation- gave/# solicited
- Avg gift size
- Net income
- Average cost per gift
- Cost of fundraising
- Return Nine point performance index Number of Participants: 100 Gross Income: $100, Expenses: $25, -Percentage of Participation: 100/500= 20% -Average gift size: $100,000/100 participants= $10, -Net income: $75, -Average cost/gift: $25,000/100= $250 per gift -Cost of fundraising: $25,000/$100,000= 25% -ROI: $75,000/$25,000 * 100= 300% - ... 9 point inded: Cost of Fundraising is calculated by - Expenses/ Income then make into a % If a special event made $200,000 and the expenses were $60,000, what would the cost of fundraising be? - 30% If a special event made $200,000 and there were 500 participants that gave, what would the average gift size be? -
A capital campaign cost/benefit (9pt) analysis can show the average gift size to really highlight______________ - Which was truly successful and which wasn't-particularly after expenses were accounted for. A capital campaign cost/benefit analysis: #1 shows: 6,000 participants to generated $1m and had $250,000 in expenses. #2 shows: 1,500 participants that generated $880k and $100,000 in expenses. Which campaign appears to have had a higher percentage of major gifts? Which campaign spent less per gift? Which campaign seems to have had a less compelling case? - The second campaign because the average gift size was much greater. The first campaign spent less per gift. The first campaign because it had to recruit a significant amount of more participants to generate the income. Whereas an effective capital campaign should have had a high percentage of participation. An overal growth in giving analysis can show - the overall growth in the program. particularly looking at both the overall growth in gross and net income. The result would be that you can determine if you have been able to increase your income without increasing the % if fundraising costs. When looking at overall growth in giving analysis, maintaining high average gift sizes over a period of three years would suggest_________ - that the development program has a solid major gifts and/or grants program. When looking at overall growth in giving analysis over a 3 yr period, a spike in the average gift size would suggest _________ - That a bequest or a large 1x major gift or grant was given. Particularly if the fundraising cost ratio stayed the same. If the fundraising cost ratio decreased, the organziation may have been in a campaign mode. If the number of donors participating in each solicitation continue to grow along with their average gift size, this level of performance would suggest to the board_____ - that continued investments are worthwhile. Staff development includes: - -creating a dept that covers overall staff roles and responsibilities -recruiting the right individuals with the right skills -managing performance for staff retention and program sucess Recruitment of staff should include the following elements: -
-determine the need according to strategic plan -conduct a job analysis-determin core job duties -create written description of job -work closely with HR to meet compliance requirements -carefully screen and interview One of the most common mistakes managers make when hiring is ________________-- - not spending enough time preparing for the interviews. Interview prep tips include: - -review application and resume -write core interview questions that are asked of ALL canidates -note specific areas for discussion -outline key points about the position and org to share with all canidates. It takes approximately _________ to be oriented to the job so retaining staff is key. Break in staff can affect donor relationships and direct loss of revenue. - One full year cycle. Strategies for retaining staff include: - -communication of the importance and scope of position -establishing clear expectations and job parameters -setting acheivable goals -creating a positive work environment -rewarding performance. Rewarding development staff needs to be cautious, particularly regarding bonuses. Rewards can also be _____________ - Opportunities for job advancement and professional development. -a supportive supervisor who is a good listener and takes an interest in the staffs' lives. Keys to providing rewards: -
- provide rewards objectively -be specific about why the reward was given -establish and communicate clear criteria -be consistent. Evaluations on performance of development staff should occur at least once per year and should include: - -documented feedback and a record to substantiate HR actions such as promotions and pay changes -reinforce effective performance -discuss opps for improvement no matter the level of performance -constructive coaching on needed improvements -engage in dialogue to learn how supervisor can help -identify the need for training and education
