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School Fundraising Business Plan

3 March 2023 Businnes Plan


School Fundraising Business Plan


Catholic School Development Foundation is a non profit operating foundation whose sole purpose will be to provide support and guidance to Catholic elementary and secondary school students. An operating foundation, by definition, is “An organization that uses their resources to conduct research, or provide a direct services.” (Foundation Directory 1995, p. vi.)

While most operating foundations depend upon large endowments, the concept driving this foundation relies instead upon a “living endowment.” This term, wide-spread in Catholic school circles, refers to the sisters, brothers and priests that educated several generations of immigrant families while themselves living a vow of poverty. Our Catholic schools were not endowed with any financial resources in the past. However, they have been able to thrive at low cost due to their living fund.

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. In fact, compensation is just as good as that offered by for-profit firms. It is important to first understand the cost structure for consulting fees.

For-profit companies charge $15,000 per month to campaign work. This is a standard industry fee. Around one-third of this amount is paid to the consultant, while the other third is overhead. This includes training costs, travel expenses, and cost of making presentations throughout the country in order to find new work. One-third is profit to a firm owner. This standard income/expense structure creates a problem for the “for-profit” and an opportunity for the “not-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 have also created an explosion 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 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 profits from the sale of a property on the beach were used to fund Catholic schools that can’t afford development counsel, rather than buying it? Jesuit High school may be able to pay for high monthly fees. St. Ann’s Indian Schools 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, four in year 2, seven in year 3. From here, growth can accelerate much more quickly.
  2. From Year 1 through Year 3, sales grew steadily
  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 who have a single goal and not generalists.
  • 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 act in the long-term interest of our clients. If you are not ready for a campaign, we will say so. We will do everything possible to prepare you.
  • We are not fundraising experts, but development consultants. We are able to provide comprehensive advice on the financial health for the school.
  • Our primary job is to be consultants. It’s very similar to being a teacher. In our case, we teach by ‘doing.’ This implies, of course, a partnership between teacher and student.

  • Because of the unique circumstances in which raising money for schools is done, we only hire consultants with relevant experience.
  • Although we are not-for-profit, we need to compete with the biggest firms in the country to attract skilled specialists. As we work on a sliding basis, we ask that our clients keep this in their minds as they evaluate our proposal.
  • Campaigns can be stressful. Prayer keeps us grounded, helps us remember the mission behind the money and resolves all misunderstandings. It overcomes fear in those who ask and softens the hearts of those who give. We believe that prayer is an integral part to success.

    • 1.3 Keys for Success

    These are the keys to your success:

    1. Ability to attract and keep qualified personnel.
    2. Perception as a specialist serving Catholic schools in the marketplace
    3. As a non profit dedicated to their cause, it is important to build trust with potential customers.

    The ‘capital’ in a consulting firm walks out the door 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 difficult to retain experienced 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 were trained by national firms. The winning organization will be the one that can attract and retain qualified workers. This, above all else, is the key to success.

    After gaining some experience, why is it so tempting to open their own companies? It all comes down to the nature of a new industry: fundraising consultancy is the ultimate “low entry barriers” business.

    • There are not any education requirements.
    • There is no requirement for a professional degree.
    • There aren’t any licensing requirements. A license is required for anyone giving a ten-dollar haircut. 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.
    • A successful campaign is all it takes to make a career out of consulting, especially if the school was a prominent prep school.
    • The office and start-up costs are also minimal. Since clients never visit the firm, a home office will easily suffice. A professional voice mail system can create the illusion of a bigger, more established company. Many small businesses started by one man for less than $5,000.

    It’s easy to start an independent business. It is important to retain qualified employees if an organisation wants to grow. Consultants must feel more attracted to the organization than to move. This is what we will focus on later.

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