Businnes Plan

School Fundraising Business Plan


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. Operating foundations are defined as “An organization that uses its resources for research or provides a direct service.” (Foundation Directory of 1995, p. vi.)

Most operating foundations are dependent upon large endowments. But this foundation is based on a “living endowment”. This term refers to the sisters/brothers/priests who taught several generations of immigrants and then lived a life of poverty. Our Catholic schools have never had a financial endowment. Instead, their flourishing at very low costs to families is due to their living endowment.

A living endowment is not required to operate CSDF. However, it does not mean that consultants who work through CSDF need to be religious. It does not necessarily mean that CSDF employees will live in poverty. Compensation can be just the same as for-profit organizations. Understanding the costs and fees associated with for-profit consulting is key to understanding how this is possible.

The industry-standard fees for campaign work charged by for-profit businesses average $15,000 per customer per month. Of this amount, about one-third goes to the consultant doing the work, another third is overhead (primarily training costs and the cost of making presentations across the country for new work), and one-third is profit to the owner of the firm. This standard income/expenses structure poses a problem for the for-profit and offers an opportunity for non-profits.

Young consultants are the problem for traditional firms. They see the monthly fees and compare them to their salary and decide that they can handle it on their own. The established national firms also face high turnover, training and recruitment costs, as well as a chronic shortage of experienced consultants who do the actual work. The new competition has also increased the number of local competitors. Over the last ten years there has been an explosion of development consulting firms, most with no one in the firm except the owner. Although it may appear on the business card that John Doe & Associates is listed, there are seldom any associates.

One-third of fees, which would normally be profits, is an opportunity for the non-profit. What if, instead of buying a house on the beach for a firm owner, those profits were set aside each month in a cash reserve to serve Catholic schools that cannot afford development counsel? While Jesuit High School may easily afford high monthly fees, St. Ann’s Indian School cannot. CSDF is able to save money on one client’s ‘#8220profits to send a consultant directly to St. Ann&#8217.

1.1 Objectives

  1. One client in Year 1, four clients in Years 2, seven in years 3. From this point forward growth can occur much faster.
  2. Sales have grown steadily between Year 1 and Year 3.
  3. Breakeven in three consecutive years while CSDF builds its name and reputation. Generate earnings in year four allowing us to begin gratis consulting projects.

1.2 Mission

Catholic School Development Foundation exists in order to offer development counsel to America’s Catholic elementary, and high school schools.

  • We are specialists because we are focused on this one objective.
  • We take the long-term approach to building lasting relationships between the school’s supporters and the school, thereby removing profit pressures.
  • We will always look out for the long-term best interests of clients. If you are not ready for a campaign, we will say so. If you are not ready for a campaign, we will let you know.
  • We are not fundraising experts, but development consultants. We take a comprehensive approach to the financial health of the school.
  • As consultants, our primary role is much the same as that of a teacher. Our primary job as consultants is to teach by “doing”. This implies that there will be a partnership between student and teacher.

  • Because we understand the unique circumstances involved in raising money for schools, our consultants are only those who have previous experience in this area.
  • We are a not for profit organization. However, in order to attract the best specialists, we must compete against the largest companies in the country. We offer a sliding scale of compensation, but we ask that clients remember this when they look at our proposal.
  • Campaigns can be stressful. Prayer keeps us grounded, helps us remember the mission behind the money and resolves all misunderstandings. It helps to overcome fear and encourages those who give. We believe that prayer is an integral part to success.

    • 1.3 Keys To Success

    The keys to success are:

    1. Capability to attract and retain qualified personnel.
    2. Perception in the marketplace as a specialist serving Catholic schools.
    3. Establishing trust and promoting their cause as a nonprofit.

    In a consulting firm, the ‘#8216’ capital walks out the front door every evening at 5 o’clock. The firm’s experience level is its only equity. This represents the ability to attract future clients.

    It is hard to keep experienced staff. In the 1980s, there was a surge in new consulting firms providing non-profits with consulting services and fundraising. Many independent consultants were trained by national firms. The organization that finds a way to attract and maintain qualified personnel will prevail. This is the most important factor in success.

    It is tempting to start your own business once you have some experience. The answer lies in the nature and structure of an undeveloped industry: fundraising consulting is the most ‘low entry barriers’ business.

    • There are not any education requirements.
    • There are not any requirements for a professional level.
    • There are no licensing requirements. An individual who cuts a ten dollar hair must be licensed. Consultants who are leading campaigns worth $10 million or more, placing an organization at high risk, do not require licenses.

    • Ultimately, getting work is a function of relationships, not experience and knowledge. It is hard for Board members to distinguish between good salesmen and experienced professionals because they have very little experience in major gift fundraising.
    • It only takes one successful campaign to launch a career as a consultant, especially if that school was a high-profile prep school.
    • Finally, the costs of office and start-up are minimal. Since clients never visit the firm, a home office will easily suffice. A great voice mail system could give clients the impression that you are a larger firm. Many small-sized firms were started for less than $5,000.

    It is easy to start your own business. It is important to retain qualified employees if an organisation wants to grow. It must make it more appealing for consultants to stay than leave to achieve this. This is the central issue we will discuss later.