05 Mar School Fundraising Business Plan

Catholic School Development Foundation, (CSDF), will be a nonprofit operating foundation whose sole purpose it to provide guidance and support in the areas of development and fundraising to Catholic elementary or secondary schools. An operating foundation is defined as: “An organization which uses its resources in order to conduct research or provide direct service.” (Foundation Directory. 1995. p. vi.)

Although most foundations depend on large endowments, the foundation concept behind it relies instead on a ‘#8220’living endowment. This refers specifically to the sisters, brothers, and priests who have educated multiple generations of immigrant families, while still living in poverty. Historically, our Catholic schools have had no financial endowment; rather they flourished at very low cost to families because of extremely low overhead–thanks to their living endowment.

To operate CSDF via a living endowment does not mean that the consultants working through CSDF must be vowed religious. It doesn’t mean that CSDF staff live in poverty. Compensation can be just the same as for-profit organizations. To understand how this is possible one must first understand the for-profit consulting fee/cost structure.

For-profit companies charge $15,000 per month to campaign work. This is a standard industry fee. About one-third of this amount goes to the consultant who does the work. Another third is overhead, which is primarily training costs and the cost to make presentations across the country to new clients. The remaining three-thirds is profit for the firm’s owner. This standard income/expenses structure poses a problem for the for-profit and offers an opportunity for non-profits.

The problem with conventional firms is that many young consultants look at the monthly fees and see their paychecks and decide to take on the job. Consequently, established national companies face constant turnover, recruiting and training costs and a chronic lack experience in the workers who actually do it. In addition, there has been a flood of new regional competition. In the past ten years, there have been many development consulting firms. Most of these firms are owned by the owner. The business card may state “John Doe & Associates” but rarely are there associates.

The opportunity for the nonprofit lies in the one third of fees that are normally profit. What if the profits of building a beach home were instead used to buy a house? Would that be a good idea? Could they be put away each month as a cash reserve for Catholic schools that are unable to afford development counsel. Jesuit High School might be able to afford expensive monthly fees, but St. Ann’s Indian School is not. By setting aside the “profits” from one client, CSDF could afford to send a consultant to St Ann’s. In doing so, CSDF consultants will be the new living endowment serving those schools least able to afford development counsel.

1.1 Objectives

1. Two clients in Year 1 and four in Year 2. Seven in Year 3. From this point forward growth can occur much faster.
2. Sales have grown steadily between Year 1 and Year 3.
3. Breakeven for three consecutive year as CSDF builds its reputation and name. In year 4, we can generate earnings and start free consulting projects.

1.2 Mission

Catholic School Development Foundation is a non-profit organization that provides guidance and support to America’s Catholic high schools and elementary schools.

• Focused on this single objective, we are specialists, not generalists.
• We are free from profit pressures and take the long-term perspective of building lasting relationships with our supporters.
• We will always look out for the long-term best interests of clients. We will not accept a campaign if you are not prepared. If you are not ready for a campaign, we will let you know.
• We are not fundraising consultants. We provide a holistic approach to the financial health and well-being of the school.
• Our primary function as consultants is very similar to that a teacher. Our primary job as consultants is to teach by “doing”. This implies that there will be a partnership between student and teacher.

1.3 Keys for Success

Here are the keys to success

1. Ability to attract qualified staff and keep them.
2. As a specialist in Catholic schools, perception on the market
3. As a non-profit dedicated to their cause, we establish trust with potential clients.

Every evening, the capital of a consulting company walks out the door at five. The only true equity is in the company’s people, as they are what determine the firm’s ability attract future business.

It can be hard to keep skilled employees. It has become difficult to keep experienced people in your organization. Many independent consultants have been trained by large national firms. The organization that finds a way to attract and maintain qualified personnel will prevail. This is the secret to success.

It is tempting to start your own business once you have some experience. The answer lies in the nature of a not-yet-mature industry: fundraising consulting is the ultimate ‘low entry barriers’ business.

• There are no requirements for education.
• There are no requirements for a professional degree.
• There are no licensing requirements. An individual who cuts a ten dollar hair must be licensed. An individual who is leading a $10,000,000 campaign, which can put an organization at great risk, requires a license.

• It is not about knowledge and experience, but relationships that get you work. The Board is limited in their experience with major gift fundraisers, so it is difficult for them distinguish between sales professionals and experts.
• A successful campaign is all it takes to make a career out of consulting, especially if the school was a prominent prep school.
• Finally, there are very few expenses associated with the office or start-up. Clients rarely visit the office so a home office can easily be sufficient. A voice mail system that works well can give the impression of an established, larger company. Many small-sized firms were started for less than $5,000.

It is easy to start your own business. But if an organization is going to grow, it must retain qualified personnel. It must make it more appealing for consultants to stay than leave to achieve this. This is the key issue that we will be discussing later.