Difference between revisions of "GPCA Budget FY2011-2012 Income Narrative"

Revision as of 16:34, 16 April 2011

0. INTRODUCTION

The GPCA's FY2011-2012 Budget occurs amidst during a deep national and international economic crisis that became manifest in October of 2008. That crisis has made it challenging for non-profit organizations and other not-for-profit entities like the GPCA that survive primarily or exclusively on grassroots donations and fundraising. The economic crisis also came on the heels of the politically difficult period for the Green Party when it suffered the blowback of being blamed for the 2000 Bush presidency. Combined its own internal self-inflicted wounds over 2004 presidential strategy and other internal divisions, the cumulative effect of those trends led to a significant downturn in GPCA fundraising compared to the growth period the party experienced at the beginning of the last decade.

In FY2011-2012, prospects are looking up for the GPCA. The political climate is favorable in light of a disappointing Obama administration combined with a far right fringe Tea Party movement on the federal level, combined with the lack of real answers by either Democrats or Republicans to the structural problems of our state. At the same time internally within the Green Party, there has been a growth in new activists interested in becoming involved, along with a return by many long time party activists.

With this potential, the GPCA FY2011-2012 Budget seeks to establish a baseline of core expenses to ensure the maintenance of the party's basic, ongoing operations, based upon the same minimal level of fundraising experienced in the last few years, along with a plan to invest in growth opportunities that would bring in more money to fund more organizing. This Budget also seeks to establish a manner in which increased revenue will be dedicated to additional organizing in a predictable, transparent manner that will minimize the need for mid-year discretionary choices by either the General Assembly or the Coordinating Committee, yet correspond realistically to expected cash flow and political deadlines, along with provide enough flexibility to adapt to unpredictable circumstances.

On the income side, the FY2011-20122 Budget contains a plan to raise up to $163,750 -- with $60,500 projected between May and September 2011 and $103,250 between October 2011 and April 2012. The plan would expand the GPCA's fundraising capability by hiring an Executive Director to design and manage a fundraising campaign, along with creating a new GPCA contact relationship management (CRM) database to ensure high quality management functions such as donation tracking and GPCA supporter communications. Until an Executive Director is hired, GPCA will contract with a consultant to continue fundraising in the interim.

1. CLEARINGHOUSE COMMITTEE

1-1 Merchandise (T-1 $100, T-2 $500, T-3 $2,000)

Merchandise sales via the GPCA's virtual office in Sacramento have been minimal in recent years. Tier I income projections of only $100 reflects this. Tier II reflects increased efforts to design and sell GPCA buttons, stickers and t-shirts. Currently the Clearinghouse Committee has no active members (http://www.cagreens.org/clearinghouse/committee.shtml). With more involvement, exploration into bi-lingual materials, shopping bags and other party-related paraphernalia could occur.

2. FINANCE COMMITTEE

2-1 Direct mail: Prospect Letters (T-1 15,000, T-2 33,000)

The plan is to write and send timely, persuasive prospect letters every eight weeks as long as the prospecting remains break even or profitable, with a goal of acquiring 1,100 new donors in FY2011-2012, and with the long term assumption that the donors will give at least two additional times over the next five years. If prospecting breaks even or better, then funds invested in Tier I are simply reinvested to fund Tier 2 without any additional funding required. The timeline and projections for these prospect mailings are as follows. Note that the associated expenses will be reflected in the FY2011-2012 Expense Narrative

2-1.1 June-2011 Prospect (Tier I)

Number of prospect pieces: 5,000; List: CA donors to GPUS; Avg. response rate: 2%; Avg. gift: $30; Avg. printing and postage cost per letter: $0.60; Total cost: $3,000; Total income: $3,000; Number new donors acquired: 100

2-1.2 July-2011 Prospect (Tier I)

Number of prospect pieces: 10,000; List: GPCA registered voters; Avg. response rate: 2%; Avg. gift: $30; Avg. printing and postage cost per letter: $0.60; Total cost: $6,000; Total income: $6,000; Number new donors acquired: 200

2-1.3 Sep-2011 Prospect (Tier I)

Number of prospect pieces: 10,000; List: GPCA registered voters.; Avg. response rate: 2%; Avg. gift: $30; Avg. printing and postage cost per letter: $0.60; Total cost: $6,000; Total income: $6,000; Number new donors acquired: 200

2-1.4 Nov-2011 Prospect (Tier II)

Number of prospect pieces: 10,000; List: GPCA registered voters.; Avg. response rate: 2%; Avg. gift: $30; Avg. printing and postage cost per letter: $0.60; Total cost: $6,000; Total income: $6,000; Number new donors acquired: 200

2-1.5 January-2012 Prospect (Tier II)

Number of prospect pieces: 10,000; List: GPCA registered voters.; Avg. response rate: 2%; Avg. gift: $30; Avg. printing and postage cost per letter: $0.60; Total cost: $6,000; Total income: $6,000; Number new donors acquired:200

2-1.6 March-2012 Prospect (Tier II)

Number of prospect pieces: 10,000; List: GPCA registered voters.; Avg. response rate: 2%; Avg. gift: $30; Avg. printing and postage cost per letter: $0.60; Total cost: $6,000; Total income: $6,000; Number new donors acquired:2 00

2-2 Direct mail: Resolicitation Letters (Tier I 11,250, Tier II 27,750)

The plan is to write and send timely, persuasive prospect resolicitation letters every eight weeks, targetting amounts based on prior giving history using a new CRM (contact relationship management) database, the funds for which are included in Tier 1 expenses in the Expense Narrative.

2-2.1 May-2011 Resolicitation (Tier I)

Number of prospect pieces: 1,200; Avg. response rate: 5%; Avg. gift: $50; Avg. printing and postage cost per letter: $0.60; Net income: $2,280

2-2.2 July-2011 Resolicitation (Tier I)

Number of prospect pieces: 1,500; Avg. response rate: 5%; Avg. gift: $50; Avg. printing and postage cost per letter: $0.60; Net income: $2,850

2-2.3 September-2011 Resolicitation (Tier I)

Number of prospect pieces: 1,800; Avg. response rate: 5%; Avg. gift: $50; Avg. printing and postage cost per letter: $0.60; Net income: $3,420

2-2.4 November-2011 Resolicitation (Tier I)

Number of prospect pieces: 2,000; Avg. response rate: 5%; Avg. gift: $50; Avg. printing and postage cost per letter: $0.60; Net income: $3,800

2-2.5 January-2012 Resolicitation

Number of prospect pieces: 2,200; Avg. response rate: 5%; Avg. gift: $50; Avg. printing and postage cost per letter: $0.60; Net income: $4,180

2-2.6 March-2012 Resolicitation

Number of prospect pieces: 2,400; Avg. response rate: 5%; Avg. gift: $50; Avg. printing and postage cost per letter: $0.60; Net income: $4,560

2-3 Personal solicitations (Tier I - $20,000, Tier II $50,000)

An executive director will conduct phone and in-person meetings with all major donors and re-solicit all major donors by phone or in-person. Major donors will be asked identify new major donor prospects. “Why donate?” materials will be developed for major donors. Phone and in-person meetings will be conducted with GPCA Greens who can help identify new major donor prospects.

2-4 Online fundraising campaigns (Tier I - $1,500, Tier II $5,000)

This campaign is based upon quarterly email solicitations and visually enticing, persuasive online fundraising web pages, which is premised upon on a redesign of the GPCA website and migration to a content management system with team publishing.

2-5 Telemarketing (Tier I - $5,000, Tier II $31,000)

This would involve researching, interviewing, hiring, training and managing a telemarketing firm that uses predictive dialing and agrees to a no money-down no-loss contract, and would call GPCA registered members.

2-6 Events (Tier I - $2,500, Tier II - $5,000)

Tactics - Create annual Bay Area and Los Angeles fundraising event, create annual events program for county councils, develop event invitation template.

3. COORDINATING COMMITTEE

3-1 Income from General Assemblies (Tier I - $4500)

Income received from General Assemblies is primarily in the form of registration fees, which are set with the goal of balancing expected expenses. As a result, the income and expense totals associated with General Assemblies are budgeted to balance each other

4. GRASSROOTS ORGANIZING WORKING GROUP

4-1 Green Focus sales

The issue of if and what to charge county Green organizations (and other locals) for Green Focus is a topic that the Budget Committee believes deserves more debate within the GPCA. One perspective is to charge a certain amount for bundles designed to cover most or all of the party's basic costs. Another perspective is that Green Focus is an outreach tool and that charging locals for it slows it from getting it into peoples' hands and out on to the street.

The practice in recent years has been to charge a certain amount for bundles of $100, but this money is often pledged at state meetings and not always collected, as the system for it is rather haphazard.

5. GPUS DELEGATION

5-1 GPUS Revenue Sharing, past funds owed (Tier III - $2,427)

The GPUS recently received a large donation from which it is possible, but not certain that the amount owed to the GPCA from 2008 will be paid within the GPCA's FY2011-2012. For this reason it is placed within Tier III.

5-2 GPUS Revenue Sharing, 2011-2012

If and until the GPCA receives projections to the contrary from the GPUS Finance Committee, no GPUS revenue sharing for FY2011-2012 will be projected.