School Fundraising Business Plan


School Fundraising Business Plan


Catholic School Development Foundation (CSDF), a non-profit operating foundation, will have the sole purpose of providing development and fund-raising counsel to Catholic elementary schools and 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.)

Operating foundations rely on large endowments. However, this foundation’s concept relies upon a #8220;living fund. This refers to the sisters and brothers who educated many generations of immigrants while also living a vow for 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.

To operate CSDF via a living endowment does not mean that the consultants working through CSDF must be vowed religious. It does not necessarily mean that CSDF employees will live in poverty. Actually, compensation can be as high as for-profit businesses. To understand how this is possible one must first understand the for-profit consulting fee/cost structure.

For-profit agencies charge campaign work fees at an industry-standard $15,000 per client. 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 is a problem to the #8220for-profit whereas it presents an opportunity to the?8220not-for–profit.

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. They also have created a flood of regional competition. Over the past ten-years, there has been a surge in the number and size of development consulting businesses. Most have only one owner. Although the business card might read “John Doe & Associates”, there are very few associates.

One-third of fees, which would normally be profits, is an opportunity for the non-profit. What if those profits were not used to purchase a beach house for a business owner but instead were put into a cash reserve to help Catholic schools that cannot afford the development counsel. Jesuit High School can afford the high monthly fees but St. Ann’s Indian School cannot. CSDF could send a consultant for St. Ann’s Indian school by putting aside the #8220profits from one client.

1.1 Objectives

  1. Two clients in Year 1 and four in Year 2. Seven in Year 3. From here, growth can accelerate much more quickly.
  2. Sales growing steadily from Year 1 through Year 3.
  3. Break even for three consecutive years as CSDF establishes 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. Not generalists.
  • We look long-term at building lasting relationships between our school and our supporters, as a way to relieve profit pressures.
  • We will always do what is in the best interests of our clients. We will tell you if you aren’t ready to take part in a campaign. If you are not ready for a campaign, we will let you know.
  • We are development consultants, not fundraising consultants. We are able to provide comprehensive advice on the financial health for the school.
  • Our primary function as consultants is very similar to that a teacher. We teach by doing. This is a partnership between teacher/student.

  • Because we understand the unique circumstances involved in raising money for schools, our consultants are only those who have previous experience in this area.
  • Though we are a not-for-profit organization, to attract experienced specialists we must compete with the largest firms in the country. Our proposal is based on a sliding-scale system. We ask our clients to keep this in mind as they review our proposal.
  • Campaigns can be stressful. Prayer keeps us positive and calls us to the mission behind our money. It also helps us to understand each other. It alleviates fear in those who ask it and warms the hearts who give. We believe that prayer is an integral part to success.

    • 1.3 Keys to Success

    Here are the keys that will lead to success:

    1. Ability to attract and keep qualified personnel.
    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.

    A consulting firm’s capital is what walks out of the doors every evening at five. The only real equity rests in the experience levels of the people in the firm, for they represent the ability of the firm to attract future business.

    It can be hard to keep skilled employees. Since the late 1980s there has been an explosion of new consulting firms serving non-profits with fundraising and consulting services. Many independent consultants have been trained by large national firms. The organization that discovers how to attract and retain qualified people will ultimately win the day. This is the main to success.

    After gaining some experience, why is it so tempting to open their own companies? The answer lies in the nature of a not-yet-mature industry: fundraising consulting is the ultimate ‘low entry barriers’ business.

    • There are no education requirements.
    • There are not any requirements for a professional level.
    • There are no licensing requirements. The person giving a ten dollar haircut must be licensed. An individual who is leading a $10,000,000 campaign, which can put an organization at great risk, requires a license.

    • In the end, finding work is about relationships and not having knowledge or experience. Due to the fact that so few Board members have significant experience with major gifts fundraising, it can be difficult for them not to differentiate between experienced salesmen from professionals.
    • It only takes one successful campaign to launch a career as a consultant, especially if that school was a high-profile prep school.
    • The office and start-up costs are also minimal. Clients will not visit the company, so a home office will suffice. 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.

    In short, it is relatively easy to establish an independent firm. To grow an organization, it must have qualified employees. To do this, it must be more attractive for consultants to stay than to leave. This is the central issue we will discuss later.