Capital and Endowment Campaign Feasibility Study by Derek Floyd, M.A.

Capital and Endowment Campaign Feasibility Study Report

Campaign Consultants:

University of San Diego Nonprofit Leadership & Management Carole A. Fish, M.Ed., CFRE Lisa Andaleon Derek Floyd Meredith Praniewicz Teresa Smith

August 2013

TABLE OF CONTENTS

Executive Summary In the summer of 2013, The Water Conservation Garden’s (The Garden) leadership team engaged the University of San Diego’s Institute of Nonprofit Education and Research to conduct a Capital and Endowment Campaign Feasibility Study. The purpose of the study was to develop and test a Case for Support to better understand the viability of The Garden’s proposed need for expansion of its facilities, exhibits, programs, and permanent endowment of its future. Specifically, the study was developed to determine the feasibility of a $2.5 million capital and a $1 million endowment campaign for The Garden over the next 5 years. A successful capital campaign would provide revenue for facility and exhibit improvements along with growing The Garden’s programs, and an endowment would provide permanent, on-going operational support to ensure financial sustainability. This Capital and Endowment Campaign Feasibility Study Report, which details the findings of the study, will be used to inform The Garden in their capital improvement planning process. Led by Adjunct Professor Carole Fish, M. Ed., CFRE and President of FISH+LEWIS Consulting, a team of four students (Consultants), Derek Floyd, Meredith Praniewicz, Lisa Andaleon, and Teresa Smith submit this Capital and Endowment Campaign Feasibility Study Report on August 6, 2013.

Methodology Objectives The Consultants were tasked with reviewing and testing the readiness and feasibility of a capital and endowment campaign for The Garden among key constituents. The team identified eight objectives: 1. 3

Review and test the appeal of a capital and endowment campaign for The Garden among key constituents;

4 2.

Determine the readiness and capacity of The Garden to raise $3.5 million ($2.5 million for capital and $1 million for an endowment) over five years;

Develop and test the strength of the Case for Support;

Test the reputation and understanding of The Garden in the San Diego community;

Identify potential fundraising challenges and consider ways to mitigate them;

Evaluate the capability of internal leadership to lead the campaign;

Test the capacity and willingness of donors to support the campaign; and

Provide findings, conclusions and recommendations for the feasibility of undertaking a capital and endowment campaign.

Division of Work The Consultants divided into two teams to accomplish specific parts of the project: •

Team 1 wrote the Case for Support (prospectus) and developed the Gift Range Chart.

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Team 2 developed the Feasibility Study Questionnaire and compiled and analyzed the data collected from the key constituent interviews.

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Both teams reviewed background information and data about The Garden, interviewed key staff members, and interviewed key internal and external constituents.

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Teams 1 and 2 jointly prepared the Capital and Endowment Campaign Feasibility Study Report.

Interviews with The Garden’s Leadership Staff To understand The Garden’s organizational structure, strategic plan draft, and current goals, the Consultants met with the organization’s leadership staff: Executive Director, John Bolthouse and Development Consultant, Lorraine Frigolet. In 2012, The Garden hired John Bolthouse as Executive Director to lead the transition of governance and operations from the Joint Powers Agency (JPA) to 4

Friends of The Garden, an independent 501(c)(3) charitable organization. Mr. Bolthouse’s primary goals for The Garden are to strengthen its financial health, expand educational programs, enhance marketing, boost stakeholder engagement, and improve facilities. Ms. Frigolet works closely with Mr. Bolthouse and the Board of Directors to oversee and manage The Garden’s development efforts. The Consultants initial meeting with Mr. Bolthouse and Ms. Frigolet involved a tour of The Garden’s facilities and exhibits, and provided an opportunity to learn about The Garden’s history, culture, future vision, and operations. A second meeting allowed the Consultants, Mr. Bolthouse and Ms. Frigolet to review progress and ask any clarifying questions. These meetings provided key information for the development of the Case for Support and interview questions for the internal and external constituents. Development of Case for Support The Consultants reviewed The Garden’s existing materials (i.e., marketing brochures, draft strategic plan, website, grant proposals, etc.), reviewed the documentary Watershed: Exploring a New Water Ethic for the New West, and conducted outside research on regional water conservation issues to develop the Case for Support. The Case for Support serves as the primary tool to inform internal and external interviewees about the campaign, and was used to test the feasibility of a capital and endowment campaign with key constituents. In addition, it may also be used in the future to inform prospective donors and garner support for a capital and endowment campaign. Drafts of the document were presented to Mr. Bolthouse and Ms. Frigolet for their review and revisions before the final draft was used in the interviews for the feasibility study. The Case for Support used for purposes of this study is a working draft and should be reviewed and amended by The Garden’s leadership team in the future.

6 Design of Questionnaires and Interview Materials The Consultants prepared two questionnaires for interviewing key constituents, both internal and external to The Garden. The interview tool was approximately 30 questions in length, included both closed-ended and open-ended questions, as well as rating scale questions. The questionnaires were similar in design, with the exception of specific questions for the Joint Powers Authority (JPA) and founding members. (See Appendix G). Interview respondents were asked to comment on the following general areas: •

Background and current involvement with The Garden

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Personal description of the mission and uniqueness of The Garden

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Reputation of The Garden in the community

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Future vision of The Garden

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Impression of the capital and endowment needs as related to facilities and program expansion and financial sustainability

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Ability of the leadership of The Garden to undertake a capital and endowment campaign

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Willingness to serve on the campaign committee, to provide names of leadership/donors and to personally support the campaign or serve on the campaign committee.

Key Constituent Interviews In total, thirteen constituents were interviewed, including: founding members: Joint Power Authority representatives, Garden members at varying giving levels, board and committee members, volunteers, staff, and donors. Over a two-week period, eight external constituents and five internal constituents were interviewed. All interviews were conducted over the phone. The Consultants used the pre-set questions so responses would be uniform, but in certain cases not all questions were 6

answered completely or responses contained valuable additional information. Upon completion of their interviews, the Consultants entered their responses into an online survey database tool for evaluation. Data Compilation and Analysis Once all of the interview notes were entered, the Consultants exported the information to Excel spreadsheets, which enabled them to view the data by each individual question. Each interview was coded so the team could see emerging themes and patterns throughout the interviews. The Consultants then noted the number of responses to each question, categorized the responses where appropriate, and took the key points from the responses. The survey tool calculated the response percentages for the responses that could be categorized in this way. This comprehensive data analysis process provided the basis for the Findings and Conclusions and the Recommendations sections of the Feasibility Study Report.

Findings and Conclusions Reputation of the Organization Strengths and Uniqueness The Garden is positioned uniquely in Southern California as the only garden completely dedicated to water conservation within an arid climate, as is found in San Diego. Almost all interviewees discussed how the architecture and landscaping of The Garden is “beautiful,” “sensory,” and “serene and peaceful.” Many noted The Garden’s size as a positive attribute because it is not too small or too large. Beyond the physical characteristics, other strengths mentioned by respondents included the effectiveness of staff and their ability to integrate volunteers as a core to their culture. In

8 addition, the unique educational and demonstration exhibits allow The Garden to standout from other gardens. “Walk into The Garden and you just feel better.” “The Garden is a great service to the community.” Perception of Mission All constituents interviewed were well informed about the core mission of The Garden and were able to articulate an understanding of its mission around a demonstration garden for water conservation. A majority of the interviewees were able to identify the link between landscaping, education and conservation. A majority of respondents identified the primary purpose of the organization as an educational tool to the public about the importance of water usage. “The mission of The Garden is to educate the public on use of water saving plants and conservation of one of our most precious resources, water.” Need for Greater Community Awareness Both internal and external constituents interviewed identified The Garden as a wonderful place for those who know about it. When asked to rate the reputation of the garden, half of all respondents rated The Garden as very favorable, forty-two percent as favorable, and one individual was unsure how others viewed The Garden. Respondents commented that the majority of the community does not know The Garden exists or what it has to offer. Some interviewees identified the confusion with the relationship between Cuyamaca College and The Garden, mistaking The Garden as part of the college versus a separate entity. The location of The Garden in southeastern San Diego County was also identified as a hindrance in reaching a larger community. All but one interviewee identified they receive the right amount of communication from The Garden concerning organizational activities and operations. A few constituents shared concerns regarding what they perceived as a low level of 8

communication for nonmembers. One external stakeholder even suggested a model for outreach and growth. “It’s a well-kept secret.” “Hidden treasure in the east.” “Awareness of The Water Conservation Garden disappears the more you radiate out from the garden.” “I have lived here in San Diego all my life and didn’t know it was here.”

Vision for the Future The resounding message for The Garden’s vision is that everyone in San Diego County knows about the organization and it can boast national recognition for affecting changes in water conservation behavior. The majority of the interviewees identified a need for the organization’s growth to be better known and recognized, and mostly focused on facility improvements to meet the growing needs and interests of the community. Many interviewees commented that The Garden needs to be a more active nonprofit with developed funding streams for self-sufficiency versus dependency on the Joint Power Authority. The Garden will be fulfilling a niche for which the overall community would easily support. “We can be the flagship for this kind of gardening and for water conservation. We should be the flagship—because we are. We should be a household name, where people want to go check out the Garden, see what’s on display, what’s the latest for classes." “They need to think big.” Case for Support Campaign Needs – Facilities 9

10 The majority of all interviewees recognized the need for The Garden to expand their current facilities. However, two external constituents said they would not support facilities expansion and two indicated that they were unsure if they would support the proposed expansion. The internal interviewees do support investment in facility expansion and upgrades in order for The Garden to expand. The respondents who did not support facilities expansion cited the organization needs program and service growth before expanding. An additional concern mentioned was the need to include staffing increases, which would be needed to support the new and/or improved facilities within the Case for Support and Campaign goals. Campaign Needs – Programs Respondents identified current programming is limited due to the need for expanded facilities. Many understand that expanding current exhibits while also continually developing fresh, new, leadingedge showcases are critical components to bringing The Garden’s vision to life. Founders identified the importance of both programming and exhibits as essential components to The Garden’s mission, which need to be continually promoted and strengthen. The Garden is seen as having significant educational impact on landscaping and water conservation. “The Garden is limited in its trajectory. It needs to expand to be more of a community resource.” Campaign Needs – Endowment The need for an endowment was a theme a few interviewees questioned. Only three of the external respondents identified they would support an endowment. Interviewees commented that when looking at the organization’s budget, it is difficult to understand why The Garden needs an endowment. There also seemed to be a general lack of understanding of exactly what an endowment is. Misunderstandings ranged from endowments are for the rich, to how endowments relate to current 10

assets, to the use of endowment funds. Interviewees identified in related questions the need for an increase in staffing to support capital improvements but did not relate the endowment campaign as a way of achieving staffing stability. “Endowment giving is for the rich.” Overall Impression of Materials Four of five internal and half of external interviewees reviewed the Case for Support materials. Each of the interviewees offered various suggestions for improvement. Overall, the initial impression was very favorable to favorable. An overall impression that emerged among interviewees was the tagline and language around “Re-Imagining Our Relationship with Water” was a highly effective description for a Case for Support. Two respondents who were external constituents found the Case for Support somewhat favorable or unfavorable. These respondents felt that the Case could be stronger by using clearer goals, less dramatization, a better explanation of the relationship of The Garden with JPA, and also needs further editing. More than half of all interviewees questioned the accuracy of information included in the history of the organization. For example, one respondent indicated that The Garden appears to serve fewer people from year to year based on the timetable presented. The Consultants suggest The Garden review and adjust the historical timeline as appropriate. Overall, however, the majority liked the photographs and general flow. A couple of interviewees found the campaign budget either confusing or unsupported.

Feasibility of Campaign Feasibility of Campaign Goal and Timeframe Just over half of the interviewees responded that a $3.5 million capital and endowment campaign is somewhat realistic over the next 5 years. Intervieweesâ&#x20AC;&#x2122; comments ranged from the campaign goal is too small to too large. The biggest obstacles respondents felt The Garden faces are a lack of visibility in the community and a history of fundraising still in its infancy phase. The timeframe did not appear to be an issue with the feasibility of goal, although one respondent felt that ten years would be more appropriate.

Cultivation and Stewardship of Donor Base Most respondents felt those who have paid memberships would give to a capital campaign beyond their membership dues. It appears a core of the volunteers do donate to The Garden. However, interviewees noted that The Garden should consider clarifying the difference between membership 12

dues and donations to the organization, and communicate the need for both. In addition, one respondent indicated that more people would sign up for a membership if they knew about many of the benefits such as free admission nationally to other gardens. Some potential donors’ names surfaced during the interviews, but the interviewees indicated they would not be able to help make a connection with potential donors. Currently, very little connection exists between The Garden and most of the potential donors mentioned who have some capacity for leadership gifts. Individual names included local politicians and former stakeholders. Interviewees identified potential corporate donors who may potentially have an investment in the mission of The Garden. The prospective donors include contractors, home developers, casinos, nurseries, and large corporations such as Qualcomm. “Those people are in a different circle; I don’t run in that circle. They’re in a different socioeconomic class.” “We’re missing key people who have a lot of money.” Individual Commitment Interviewees were asked to identify the importance of The Garden’s capital and endowment campaign against other causes they support. The results revealed that the campaign is not currently a high priority for many of these respondents. Some have other commitments and limited money to give, and a few expressed the difficulty of being elderly with limited or fixed incomes. The internal interviewees felt the Gift Range Chart was unrealistic for The Garden, especially its ability to secure contributions at the leadership and major gift levels. Fifty percent of external and eighty percent of internal constituents said they would support a campaign at some point, and one stated he would more than likely give a major gift and the remainder a community gift (under $10 thousand). The majority of the external interviewees also said they would continue to give annually after a capital donation.

14 Only one internal interviewee said they would consider a bequest of their estate, while the majority of interviewees were unsure. Motivation for largest gift to a charity The few respondents who identified they have made large gifts to The Garden noted that passion for the cause, tangible results, or name recognition motivated them to make their largest gift to a charity. Internal interviewees identified they gave to The Garden due to their passion toward conservation or gardening, and they were sold on the concept of The Garden or they could receive some industrial gains through landscaping. Leadership Board and Executive Leadership Readiness Only thirty one percent of total respondents felt the board and executive leadership was capable of leading the organization through the campaign, and all of these respondents were internal constituents. Fifty four percent were unsure of the capability of the board and executive leadership. One individual felt the board was very capable with another individual feeling the organization was somewhat capable. The most noted reasons for a lack of readiness were: many do not really know the board members and, the board and executive leadership lack name recognition and strong connections within the larger community. Those who responded as somewhat or very capable when asked about readiness for a campaign, stated Mr. Bolthouse has done a wonderful job of growing and diversifying the skills and talent on the board, a majority of respondents felt the board needs even further development before launching the proposed campaign. â&#x20AC;&#x153;John has done an unbelievable job. We now have diversity of skills, interest and talent." â&#x20AC;&#x153;The workhorses of the board are working hard already.â&#x20AC;? Potential Campaign Leadership 14

No strong recommendations surfaced for people to serve on or chair the Campaign Steering Committee. The names that were offered included: the executive director, board president, Chancellor of Grossmont-Cuyamaca District, prior board members, founders and nursery industry leaders. Several interviewees were aware of the need for people with significant name recognition and community connections with large giving capacity to make up the campaign committee. Most constituents interviewed were not willing or able to serve on the committee at this time, primarily based on the time commitment and giving capacity that would be required. Four individuals are willing to serve at some capacity on the Campaign Steering Committee. Internal Readiness Develop Organizational Infrastructure The majority of external respondents felt the organization does a good job of recognizing donors. Both internal and external interviewees commented that the organization needed to do something more substantial than a brick walkway. Several interviewees suggested a wall bearing donor names. Two interviewees noted The Garden might have too many types of recognition. “People walk into the garden and over the bricks without looking down.” “Name recognition is a sure way to get major gifts.” “Perhaps The Garden can identify donors who might be most interested in a particular exhibit and offer name recognition with that particular exhibit.” Identify New Donor Relationships Several respondents stated The Garden needed to identify new donors with the capacity to give. Themes included reaching out to other garden groups, landscaping industry, and home developers who could directly benefit from the success of The Garden through partnership or collaboration. Suggestions also included developing stronger relationships with local politicians for support. 15

16 Interviewees identified McMillan Homes, Sycuan Casino, Qualcomm, and other big name companies as donor prospects; however, the respondents interviewed did not have direct connections to any of these organizations. Relationship within the College Constituents felt The Garden could have a stronger relationship with Cuyamaca College for further site expansion, access to potential fundraising opportunities, name recognition and program collaboration. External Challenges Communicating the Need and the Impact The Garden is highly regarded among the constituents interviewed, and many of them see a bright future ahead for the organization with new facilities and program expansion to help it realize its potential. Overall, respondents noted one of the biggest challenges The Garden faces is communicating with a broader community about the need for and the impact of their programs. Many respondents recognized the difficulty of motivating donors to give to an organization that does offer a tangible result in changing individual lives, as does a food kitchen, homeless shelter, or work training program. Donor Base of Support The small pool of donors who can give a leadership gift is a significant challenge for The Garden for undertaking a $3.5 million capital and endowment campaign. Most of the external interviewees identified the ability of some well-cultivated prospects to produce lead gifts as a good indicator of readiness for a successful campaign, and they did not see those prospects in place for The Garden Visibility of The Garden

Throughout most of the interviews, The Garden’s limited visibility within the community appears to be their strongest barrier to developing the capacity for larger donations and support. Respondents identified the need for The Garden to embark on a stronger marketing campaign to inform San Diego County of what The Garden has to offer and the importance of the mission. In order to be compelled to contribute, community members need to be aware of The Garden and how it helps improve the quality of life in the region. Finally, other resonating themes and suggestions included the need to utilize The Garden’s facilities for more community and public events to bring additional recognition and awareness.

Recommendations Organizational Readiness Phase As a result of the interviewee process and the Findings of the Feasibility Study, the University of San Diego Nonprofit Leadership and Management Campaign Consulting Team are making the following seven recommendations for the Organizational Readiness Phase of the Campaign: 1.

Build Mission Structure - The Mission Structure of the organization tells the story of purpose

(mission), community impact (vision) and values (principles) that articulate to the community the need for their involvement and investment. With the leadership of John Bolthouse, CEO, the Board of Directors has just completed a strategic planning process that is in its final stage of review. This is an essential document to help guide the strategic direction of the campaign. Recommendation - It is recommended that the strategic plan include a well-articulated mission structure that includes a vision that is in alignment with the Case for Support. It also recommends that strategic goals that specifically strengthen the community be included in the strategic plan. These goals should articulate “impact” in the community to achieve water conservation. An alignment of mission 17

18 and values to support the vision would also be beneficial for communicating and engaging the community. 2.

Build Recognition and Awareness - The responses of the majority of interviewees was that

The Garden is known only to those who live in the community immediately surrounding Cuyamaca College or in East County. It is the vision of the interviewees and of the leadership that the purpose and impact of The Garden be known beyond geographic boundaries and expands to new sectors, new stakeholders and locations on international, state, regional and local levels. Recommendation - It is recommended that a robust Marketing and Communications plan be developed to identify key markets, new strategies and new resources to help support all levels of promotion and community engagement. This process would include assessment of The Garden brand and key messaging to reinforce impact on the community. 3.

Strengthen Visibility of Key Partnerships - The Garden is San Diegoâ&#x20AC;&#x2122;s expert in educating

the community about water-wise landscaping and related conservation efforts. An opportunity exists to not necessarily only build new partnerships but to promote the ones that The Garden already has developed. It is important that the broader region perceive The Garden as a leader engaged in solving vital issues in the community. Recommendation - It is recommended that The Garden intentionally cultivate and demonstrate more publicly alliances and collaborations with stakeholders, other gardens, and conservation organizations that share a common vision for the future. 4.

Expand Membership - Membership can be a valuable means for building sustainability and

demonstrating leadership within a community. Several respondents indicated that they were unaware of many of the benefits of a membership to The Garden such as free entry to member botanical gardens throughout the United States. 18

Recommendation – Develop a robust Membership Plan that encourages community members to develop consistent support of The Garden and an important role in the building its sustainability to through loyal financial support. The Membership Plan can also create the opportunity to promote The Garden to new markets and can provide a stronger source of unrestricted revenue. 5.

Expand Volunteer Leadership - The Garden has successfully been recruiting new board

members to its Board of Directors over the past 12-18 months. Much has been accomplished in developing volunteer leadership for The Garden in preparation for the future implementation of the strategic plan. Recommendation – Continue to follow a process of building volunteer leadership. Ensure the Governance Committee develops a matrix of board skills and assets to help fill in gaps and ensure that the board represents priority stakeholder groups who are a part of networks in philanthropy in preparation for the Capital and Endowment Campaign. 6.

Complete Campus Master Plan - Although distinctions were made in the Case for Support

between capital and operating needs of The Garden, some interviewees were confused about the difference. Recommendation – It is recommended that The Garden complete its campus master plan and define what is needed for annual support of The Garden. This is accomplished through an annual Case for Support and Fundraising Plan, which articulates what an annual fund supports. When the planning and preparation phases have been completed for a larger, “once in a lifetime” campaign, a distinct initiative can be launched that communicates the Campaign Case for Support and Fundraising Plan. Many interviewees feel that implementing an annual fundraising plan will help to lay the foundation for a capital and endowment campaign by engaging loyal and committed donors annually.

20 7.

Expand Infrastructure Support - Relatively new as an independent nonprofit organization,

The Garden has placed its focus on building leadership and defining its strategic direction. This is an exciting time for The Garden where new staff and infrastructure will be needed to support the ideas that are emerging from this new phase. Recommendation â&#x20AC;&#x201C; It is recommended that as a result of the Strategic Planning process, a business plan follows with recommendations for staff expansion and resources to support increased community engagement with new volunteers, donors and partners. Campaign Readiness Phase As a result of the interviewee process and the Findings of the Feasibility Study, the University of San Diego Nonprofit Leadership and Management Campaign Consulting Team are making the following six recommendations for the Campaign Readiness Phase: 1.

Campaign Goal - Pursuing $3.5 million goal is feasible upon accomplishing the

recommendations for strengthening The Garden during the Organizational Readiness Phase. However, several respondents commented that the goal should be higher to achieve the Strategic Initiatives set forth in the Case for Support. Recommendation â&#x20AC;&#x201C; It is recommended that The Garden review the Capital and Endowment Campaign budget following the completion of the campus master plan to ensure that the Campaign Initiatives provide adequate costs for capital and campaign expansion. 2.

Campaign Plan â&#x20AC;&#x201C; The Campaign Plan that is was included in the Case for Support and tested

through the Feasibility Study is integral to the successful completion a $3.5 million campaign. Based on what is learned during the Organizational Readiness Phase, The Garden needs to modify the Campaign Plan to ensure that it will be an effective roadmap for raising leadership funds and engaging the community. 20

Recommendations – The Campaign Consulting Team is making two recommendations for the Campaign Plan: First, to revisit the Feasibility Study and to consider conducting a larger study that includes a larger sampling of constituents ranging from 20 to 40. This is will provide a larger sampling of responses and will help to launch the campaign which should then begin within six months of that process. Second, that the Campaign Readiness Phase continue over an 18-24 month period to allow sufficient time to identify and Campaign Chair, build a Campaign Committee structure and to identify prospects. 3.

Campaign Leadership – Campaign leadership will determine whether a campaign will take

three years or ten years to be completed. It is a significant determinant in the scope and capacity of the Campaign. Recommendation – It is recommended to begin to identify and cultivate campaign leadership over the next 12 to 24 months. The Campaign chair needs to be highly respected and recognized throughout the region and willing to make a personal significant gift and to ask peers to do the same. It is also recommended that additional campaign leaders be recruited to serve on a Campaign Steering Committee as well as to serve on small task force teams that, for example, focus on corporate giving, leadership or special gifts. The Campaign Committee Structure will help to determine the skills and sphere of influence Campaign Committee members will need once the Campaign begins. 4.

Campaign Donor Prospects – Identification and cultivation of campaign donors can begin

today. Build these relationships will take months of research and planning. Recommendations – It is recommended that as the process begins for identifying and cultivating campaign prospects, several steps will be needed to provide adequate information about the donor, their interests and readiness to give. Research on wealth capacity will be important along with learning about past history, interest in the mission and common peer relationships that will help drive the 21

22 donor’s interest in the project. Developing these relationships for a major gift campaign will take 1224 months once The Garden has completed the recommendations identified by the Organizational Readiness Phase. 5.

Case for Support - The Case is the “source” for all language, the campaign theme and

“messaging” for the campaign. This language can be used for the media, in speeches, in solicitations and in all collateral materials. Recommendation – It is recommended to review the Case for Support and ensure that all key constituents agree on the concepts and definitions used in the Case. This does not call for a rewrite or a change in the “writing voice” of the Case. Rather it means that key constituents need to be in agreement of terms and concepts. For example, one interviewee commented that San Diego is not a “dessert” climate but an “arid” climate. Two interviewees felt that information needed to be added to the History. All facts and data also need to be agreed upon and then used consistently in all correspondence, materials and in a fact sheet about the project. Finally, once this dialogue has taken place, the Case for Support should be formally approved and adopted by the staff and Board members once the Campaign begins. 6.

Endowment – An Endowment is a powerful tool for building sustainability for any nonprofit

organization that is highly dependent on philanthropy for its survival. It provides a way in which donors can leave a permanent legacy to The Garden and lasting recognition for themselves and their families. It is also a way to provide a continuous resources to strengthen the community through the mission of the nonprofit. Recommendation – It is recommended that The Garden continue to establish and build a Development Committee that places its focus on Annual Giving and learning about Endowment and planned giving as a viable way to sustain an organization. The Development Committee can help to develop a plan for 22

promoting endowment and planned giving to the community through website, newsletter and in educational sessions with financial and legal professional volunteers.

Capital and Endowment Campaign Plan Fundraising Plan The Capital and Endowment Campaign Fundraising Plan was included in the Case for Support and tested during the Feasibility Study. For your information and convenience, this final report provides both the Feasibility Study Findings and Recommendations, along with a draft of a Fundraising Plan based on the responses received during the study. It is anticipated that this Plan will be modified based on the outcomes of the Organization Readiness Phase conducted by The Garden staff and board. Overview of Campaign The Garden may propose a Capital and Endowment Campaign to raise $3.5 million. This plan includes directives for raising funds to support The Garden’s facility expansion, new education center, and program expansion, as well as enhance the sustainability of the organization through a new endowment. Working collectively to raise $3.5 million in contributions for capital and endowment funds will require a critical and dynamic partnership between The Garden and the community. The Fundraising Plan aims to:

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Be a living tool to achieve agreement on Campaign strategy, tactics, and responsibilities;

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Act as a guide for staff and volunteers during implementation of the Campaign;

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Provide a roadmap for Campaign success; and

24 •

Provide metrics by which to evaluate Campaign effectiveness.

Components of the Fundraising Plan The Fundraising Plan includes key components that take the organization through a phased process and help to coordinate the multiple priorities and components of the Campaign. The Fundraising Plan includes the following components: •

Campaign Initiatives - An outline of the proposed strategic initiatives of The Garden. •

Campaign Budget - The Capital and Endowment Campaign Budget, which provides details on the proposed expansion of existing facilities, building of a new Education Center, program expansion, endowing the future, and campaign costs;

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Ways to Give - Various methods for making gifts to the campaign

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Donor Recognition Levels and Benefits - Suggestions for donor recognition; •

Gift Chart - A Gift Chart that sets out the pattern of gifts that are needed for the Campaign to succeed, showing specifically how many and what size gifts are needed; •

Campaign Structure - Campaign structure, offering best practice suggestions for

campaign committees and the information flow between them; •

Campaign Timetable – A phased timeline for conducting the campaign over the next 12 to 36 months;

Campaign Initiatives 24

There are three Campaign Initiatives that have been identified as the highest priority for The Garden as it expands its campus and programs in the future. This description is excerpted from the Case for Support (See Appendix A). INITIATIVE 1 – BUILD NEW EDUCATION CENTER The existing Multipurpose Room, Gift Shop, and Administrative Offices, all located in a single 2,500 square foot building accommodating up to 30 people at one time, have long since reached functional capacity. A new, expanded state-of-the-art LEED certified Gold building Education facility, showcasing cost-effective, energy efficiency at the highest level would provide the required space and resources necessary to maximize staff and volunteer effectiveness. In addition, a larger Education Center would greatly expand the number of educational classes and innovative water conservation programs available to the community. INITIATIVE 2 – EXPAND EXHIBITS AND PROGRAMS The Garden has nearly five acres of displays that showcase water conservation through a series of beautiful themed exhibits, such as a native plant garden and a vegetable garden, as well as how-to displays such as mulch and irrigation models. Admission is free, and the Garden can be viewed on a self-guided tour, or through one of the seven programs. The Garden’s exhibits serve as a learning laboratory for the dedicated gardener, a whimsical and serene get-away for a local community member, and an innovative hands-on tool for visitors to learn how to save water, as well as a few extra dollars. Expanding current exhibits and developing fresh, new, leading-edge displays are critical components to accomplish The Garden’s mission and future vision. INITIATIVE 3 – ENDOW THE FUTURE 25

26 To support efforts to develop innovative water conservation solutions, The Garden needs to build a robust unrestricted endowment. Endowment funding provides the financial flexibility for The Garden to adapt and thrive as technology and new water conservation solutions evolve. A gift to an unrestricted endowment is a long-term investment in The Gardenâ&#x20AC;&#x2122;s mission and innovative model, providing the personal satisfaction of creating a lasting legacy that will ensure The Garden experience for generations to come. It provides The Garden the ability to be agile, to respond to changes in government funding, and to address priorities as they arise. The endowment would enable approximately $40,000 to be available annually in support of The Gardenâ&#x20AC;&#x2122;s programs in perpetuity. Campaign Budget This Capital and Endowment Campaign Budget is excerpted from the Case for Support and identifies three priorities for the campaign, their estimated cost and includes the campaign costs for the campaign. A more detailed budget of each priority and of the campaign costs is recommended to ensure an accurate analysis of the costs of the Campaign. This may require an adjustment of the campaign goal of $3.5 million.

CAPITAL AND ENDOWMENT CAMPAIGN BUDGET FACILITY EXPANSION & NEW EDUCATION CENTER $1,500,000 Over the past year, The Garden held approximately 300 programs, with close to 35,000 community members in attendance. The existing classroom in the Education Center has a maximum occupancy limit of 30 people and the building is old and outdated. To increase levels of education provided to the community, renovation and expansion of the existing facility and building of a new Education Pavilion is needed.

PROGRAM EXPANSION $750,000 Program expansion plans include: increasing both onsite and offsite access to educational programs; updating existing exhibits; creating new, targeted programming for audiences not currently reached; and also developing new, innovative exhibits as new technologies and solutions are discovered.

ENDOWING THE FUTURE $1,000,000 An endowment fund will provide The Garden approximately $40,000 annually for core operating support to ensure that it can continue in perpetuity, to meet its mission and goals through the use of its innovative model. These funds are critical to The Gardenâ&#x20AC;&#x2122;s sustainability as they will help offset the slated annual declines in Joint Powers Authority funding (currently 60% of annual revenue) to the organization over the next five years.

CAMPAIGN COSTS $250,000 In addition, the Campaign will include costs that are beyond usual operating expenses such as campaign planning, donor recognition, campaign consultant fees, special recognition events and ceremonies, coordination, collateral materials, and other operating support. This will ensure that The Garden effectively manages the process toward achieving the Campaign goal.

TOTAL PROPOSED CAPITAL AND ENDOWMENT CAMPAIGN

$3,500,000

28 Ways to Give There are several ways to make a gift in a campaign. It will be important for The Garden to develop Gift Acceptance Policies that, for example, define the length of time for a pledge or provide a process for accepting gifts of stock, or an appreciated asset. The “Ways to Secure the Future” list below is excerpted from the Case for Support and provides examples of ways gifts are usually made for a campaign. WAYS TO SECURE THE FUTURE • Cash Gifts or Pledges - Gifts made in their entirety are welcomed and appreciated. However, having the option to pay a gift over time often makes it possible to make a larger gift total gift. A pledge made to The Water Conservation Garden’s Capital and Endowment can be paid over a period up to five years, but will make an immediate impact on our campaign goals. • Gifts of Appreciated Securities - A gift of appreciated securities may provide an attractive tax advantage while providing significant support to the Campaign. • Real Estate - A gift of real property and/or a residence may provide a beneficial tax advantage for donors and their heirs. • Other Assets - Other assets, such as tangible personal property, are often welcomed. •

Planned or Deferred Gifts - Planned or deferred gifts, such as charitable trusts, life income gifts, gift annuities and bequests may provide tax advantages and life income to donors. Planned or deferred gifts are especially appropriate for an endowment.

•

Endowed Chairs - An endowed chair honors and recognizes the distinction of superior educational faculty while providing invaluable financial support above and beyond salary, for use in innovative educational programs, exhibits, and activities.

• Tribute Gifts - Tribute gifts allow you to make a charitable donation in the name of an individual or organization that has touched your life. Often, the most appreciated gifts are those that help others.

Donor Recognition Donor recognition is an essential component needed for donor engagement to the campaign. It is recommended that in the final campaign plan, donor benefits and recognition be formally approved and finalized on a donor wall, on the website, in a newsletter and annual report, and in other publications. Water Conservation Garden Capital and Endowment Campaign supporters could receive recognition through an array of opportunities. They include, but are not limited to:       

New building naming opportunities New exhibit naming opportunities Inclusion in our “Waterfall of Donors” Wall Recognition during special events Recognition in The Garden’s newsletter, In Bloom Recognition in The Garden’s Annual Report Recognition benefits can also be customized to meet your needs

Gift Chart Summary The Gifts Range Chart helps us to understand what a leadership level is for a $3.5 million campaign and based on the responses received from the interviewees. This Gift Range Chart shows the following:



A Leadership gift to the Campaign is $500,000. It will be necessary to raise $750,000 in Leadership Gifts from 2 donors.



Overall, 212 donors and 636 prospects (a ratio of 3 prospects for every donor) will be needed to raise $3.5 million.



Major Giving will begin at $5,000 and 44 donors will be needed.



Community Giving will require 166 donors giving below $5,000.

30 Gift Range Chart

The Water Conservation Garden Capital and Endowment Campaign 2013 Scale of Gifts Necessary to Raise $3.5 Million To raise $3.5 million, a campaign requires a number of substantial commitments. Almost all capital and endowment fundraising campaigns receive 80 percent of their funds from no more than 20 percent of the donors to the campaign. Generally, the breakdown of gifts necessary to a successful $3.5 million capital and endowment campaign is: GIFT TABLE $3.5 MILLION Pledge/Gift Level

Number of Gifts

Number of Prospects

Category Giving

Cumulative Giving

% of Goal

Leadership Giving $500,000

$500,000

14%

$250,000

$750,000

21%

Total

$750,000

21%

$100,000

$1,000,000

$1,750,000

50%

$50,000

$500,000

$2,250,000

64%

$25,000

$300,000

$2,550,000

73%

$10,000

$120,000

$2,670,000

76%

Total

132

$1,920,000

$2,670,000

76%

<$5,000

166

498

$830,000

$3,500,000

100%

Total

166

498

$830,000

$3,500,000

100%

Grand Total

212

636

$3,500,000

100%

Major Giving

Community Giving

Gift Phases/Timetable Quiet Phase Preparation

Planning

•

• • • • • •

Clarify mission and vision Define need for campaign Strengthen board

• • •

Conduct feasibility study

Public Phase

Lead-Gift Phase • Review prospect list for lead gifts

Assemble campaign steering committee

•

Develop case for support

Evaluate prospects

•

Develop solicitation strategy for each gift

Outline campaign timetable

Cultivate donors and volunteers

•

Establish campaign policies

•

Strengthen staff

•

Determine campaign goal

Prepare proposals

•

Select consultant

•

Identify campaign leadership

Train volunteers Solicit gifts

Develop prospect lists

• • •

Review table of gifts

• •

•

Identify and enlist volunteers for soliciting lead gifts

Write proposal copy Establish campaign subcommittees

July 2013 – July 2016

Advance-Gift Phase General Phase

Cleanup, Celebration

•

Review prospect list for family gifts

• •

Solicitation follow-up

• •

Evaluate prospects

Review prospect list for general phase

•

Prepare proposals

•

• •

Volunteers acknowledgment

Train volunteers

• •

Extra thanks to donors

• • •

Solicit gifts

• • • •

Develop solicitation strategy for each category of prospects

•

Train volunteers Prepare proposals Solicit gifts Identify and enlist volunteers for general phase

Campaign kickoff

Reporting to campaign volunteers

Reinforce relationship with volunteers and donors

Phonathon Direct-mail campaign

Identify and enlist volunteers for soliciting family gifts

July 2016 – July 2021

July 2016-July 2021

July 2022

The Gift Phases provide a step-by-step overview of the campaign process that is sequential and methodical. It emphasizes the need to complete the planning and preparation phases before beginning the Leadership Gift Phase.

Campaign Timeline The Campaign Timeline begins with Planning & Preparation Phase (July 2013 - July 2016). The Campaign continues for five years and concludes July 2021. •

Completion of the Organizational & Campaign Readiness: 18-24 months eighteen– July 2013 to July 2015;

•

Donor identification and cultivation 24-36 months – July 2013 to July 2016;

•

Volunteer campaign structure identification 24-36 months – July 2013 to July 2016;

•

The Capital and Endowment campaign will run for five years – July 2016 to July 2021;

•

The Campaign’s Quiet Phase will begin in 2016 with the majority of major gifts cultivated immediately;

•

Public launch is possible 2016 or when campaign benchmarks are reached.

Committee Structure There are several models for campaign committee structures developed to engage donor leadership and to help direct the strategies needed to be successful in the campaign. The model below was taken form Andrea Kihlstedt’s publication, Capital Campaigns Strategies that Work published in 2010. This is an effective model that recommends a Campaign Steering Committee, Planning Committee and Committee Divisions that support the Gift Range Chart goals. A strong committee structure is essential to the success of the campaign. There are additional elements to the structure that need to be considered in the future. For example, a board liaison should be serving on the Campaign Steering Committee. Many of the Division Committees are in operation only for the duration of their assignment – to reach their goal. Then they are no longer in operation. The Marketing and Events Committees are in operation throughout the Campaign and are also report into the Campaign Steering Committee. Below is a Committee Structure that supports the components of the campaign.

Committee Structure

Conclusion Based on the findings, the Consultants recommend a $3.5 million Capital and Endowment Campaign for The Garden is feasible. The team recommends a three-phase strategy as outlined in detail above (1) pre-planning/preparation (2) identify and cultivate donors; and (3) assemble volunteer committee.

Appendices

Appendix A: Case for Support

RE-IMAGINING OUR RELATIONSHIP WITH WATER The Water Conservation Garden Capital and Endowment Campaign Case for Support

Prepared by University of San Diego Nonprofit Leadership and Management Masters Program LEAD 517 Capital and Endowment Campaigns Professor Carole Fish, M.Ed., CFRE Students Lisa Andaleon, Derek Floyd, Meredith Praniewicz, and Teresa Smith July 17, 2013

CONTENTS Re-imagining Our Relationship With Water 37

The Garden’s Beginnings The Garden’s Essence Why the Garden? Garden Milestones The Garden’s Future Vision and Impact Annual Operating Budget The Opportunity Our Invitation: Investing Wisely in the Future “Water is the basis of life, and on this planet only a tiny share—less than one percent of all water— is available for nearly 7 billion people and a myriad of freshwater aquatic ecosystems. It's that tiny share of freshwater that we have to use to meet all of our needs—irrigation, industry, drinking water, and sanitation—and the needs of thousands, if not millions, of other species that we share the planet with.” -- National Geographic

The Colorado River Source of 50% of our Region’s Water Supply

RE-IMAGINING OUR RELATIONSHIP WITH WATER The early pioneers of the American West had a bold vision for the arid, desolate desert that we now call Southern California. They imagined lush, green land, robust agriculture, thriving businesses and vibrant communities. The area lacked one critical resource, however, to bring this vision to life: water. The beautiful, prosperous Southern California that we love and call home today, is the result of nearly a century of dams, canals, and pipelines to divert this precious resource from two distant places to our desert region. Averaging only two inches of rainfall annually, Southern California

imports approximately 80% of its water supply. We rely on 30% of our water from the rain-rich Northern California Bay-Delta, and approximately 50% from one of the most critical water sources in the West: the Colorado River. The Colorado River is of vital importance, not only to the West, but also to the economy of the entire nation. And we are not alone in our reliance on this iconic river. Thirty million people and thousands of acres of farmland across seven states and Mexico continually depend on this finite source to meet a variety of needs. The food we eat, the fuel we use, the clothes we wear, the products we buy, and the energy we consume all require water. Increasing demand, drought, population growth, and climate change all threaten the riverâ&#x20AC;&#x2122;s supply. Today, this lifeblood of our nation no longer reaches its delta at the Gulf of California. While alarming, there is hope. Over 70% of residential water usage in Southern California is for beautiful lawns, gardens, pools, and other amenities designed for non-desert regions with plentiful water sources.

By learning to live within the water resources of our desert landscape, we have the power to reduce our demand, and ultimately change our relationship with water. And The Water Conservation Garden is leading the way. The Water Conservation Garden is a living, breathing, hands-on demonstration facility, showcasing six beautiful acres of innovative water conservation solutions to solving Southern Californiaâ&#x20AC;&#x2122;s most critical challenge: water. Visitors are transported to an environment that educates all ages to understand our arid, Southern California landscape, what native and water-wise plants are most suitable for our climate, and how to develop efficient irrigation and water re-usage systems. By demonstrating the true value of our most precious resource, The Garden inspires behaviors that extend well beyond our outdoor landscape to all areas of our lives touched by water.

Solving our water dependency is key to our region’s continued prosperity and survival. The value of our homes, businesses and security of our jobs all depend on a sufficient and sustainable supply of water. As the Colorado River continues to recede, there was never a more critical time to act than now.

We have the ability to influence the future by taking steps today to inspire all Southern Californians to re-imagine their relationships with water. To do so, however, will require critical investment to expand The Garden’s existing facilities and innovative programs. We invite you to join us on this important first step of our journey…

Our region’s existence depends on it.

THE GARDEN’S BEGINNINGS If you lived in Southern California during the severe droughts of the early 1990’s, you may remember the strict restrictions on water usage imposed on all residents. That wake up call was alarming. Seeing both the need and opportunity to educate the community on water, its history, and future in our region, the major water agencies planted the initial seeds of an innovative water conservation garden. Realizing how critical the development of this extraordinary public asset truly would be for the future of our region, the founders took great care in achieving its creation. It took nearly one decade from the original conception of The Garden to open to the public. Today, The Garden has grown to nearly six acres of beautiful water-wise native plant landscaping, innovative irrigation demonstration exhibits, a Butterfly Pavilion, whimsical architecture, and dozens of informative walking tour paths. In 2011, governance of The Garden was transferred to The Friends of the Water Garden, an independent, 501(c) 3 nonprofit corporation.

THE GARDEN’S ESSENCE 41

Our Mission: To educate and inspire through excellent exhibits and programs that promote water conservation and the sustainable use of related natural resources.

Our Vision*: A Southern California living within the water resources of our desert climate, * In lieu of an existing Vision Statement, the USD Consulting Team created this statement for consideration.

and the mighty Colorado River once again flowing to its end.

WHY THE GARDEN? We are experts. We are leaders. We forge collaborative partnerships across all sectors of our region and economy. We showcase innovative water conservation solutions, inspiring people to take action to change their relationship with water. We believe that changing water usage behavior today is the single most effective way to solving the inevitable water deficit of tomorrow. We have the expertise, tools, solutions, and partnerships.

“The Garden is the only botanical garden open to the public in Southern California dedicated solely to water-wise landscaping and innovative water conservation solutions, positioning us to influence community behaviors and relationships with water.”

John Bolthouse

But we are running out of time.

“Projecting current trends, if you continue business as usual without any innovation, eventually you’re going to get to a point where you’re not going to have enough water to cover population demands.” Business Week

GARDEN MILESTONES 2012 John Bolthouse hired as 2nd Executive Director of The Garden. 2011 Friends of the Water Conservation Garden takes over management and operations of the Garden. 2010 • Amphitheater shade installed School tours and assemblies reach 25,000 children. • Garden operations and governance transitions from the Joint Powers Agency to Friends of the Garden on Dec. 31. 2009 • Garden reaches over 50,000 people on-site and 100,000 offsite. • Meadow Garden opens. • Ms. Smarty Plants programs begin. 2008 • • • • 2007 • • • • • •

2006 • • • •

The Garden reaches 45,000 visitors. Patio Gardens Open. Dorcas Utter Memorial Sensory Garden opens. Garden Partners Program begins. Garden wins the Rain Bird Corporation's Intelligent Use of Water Award. The Sweetwater Authority joins the Water Conservation Garden Authority on 1/1/07. Bird and Butterfly Garden opens. Fire-wise Landscape exhibit opens. Irrigation exhibit opens. The Garden joins the Environmental Protection Agency's WaterSense partners program

Garden reaches 30,000 annual visitors. Garden holds first Spring California-Friendly® Plant Sale. New Children’s signage and exhibits open. Garden acquires additional land from Grossmont-Cuyamaca Community College District.

2005 • H. Warren Buckner Cactus and Succulent Garden opens. • Friends of the Water Conservation Garden forms. • Garden holds first California-Friendly Gardening Festival. 44

2004 • Garden hires its first Executive Director, Marty Eberhardt. 2002 City of San Diego becomes a member of the Garden. 2001 • San Diego County Water Authority becomes a member of the Garden. • Garden awarded a 2001 Constructor Award by Associated General Contractors of California for the Garden's contribution to the east county community. 2000 • Garden "Watering Can" kiosk wins Best New Exhibitor Award and an Award of Merit at the Del Mar Fair. • Garden awarded Merit Award for graphic design of Garden icons from Creative Show of San Diego. 1999 • Garden awarded Orchid for design from San Diego Annual Orchids and Onions Awards program. • Garden awarded President's Award and Merit Award for design from San Diego Chapter, American Society of Landscape Architects. • Construction accomplished. May 15 Garden Opening Celebration. Garden officially open to public in summer. 1995: WCGA incorporated as non-profit 501c(3) organization. 1994 Garden officially named the Water Conservation Demonstration Garden. 1992 Joint Powers Authority officially formed as Water Conservation Garden Authority. Garden conceptual design commissioned and created by Jon Powell. 1991 • Garden concept adopted as a combined immediate/long-term solution for water conservation by East County Water Conservation Council (ECWCC). • Garden operations and governance transferred to Friends of the Water Conservation Garden, an independent 501(c)3 nonprofit.

THE GARDEN’S FUTURE VISION AND IMPACT To reach our vision of a Southern California living within the water resources of our desert climate will require vast behavioral changes. We have the solution! Our innovative model includes four key components: 1) Raising Awareness

Communicating the issue and solutions is the first step in inspiring behavior change. 2) Educating

We believe educating visitors both onsite and through offsite outreach is the key to lasting change, with emphasis on educating children today for greatest impact tomorrow. 3) Inspiring to Action

For education to be successful, it must inspire people to action. Whether its children redesigning their school yard garden with water-wise plants, or homeowners installing our innovative irrigation systems – inspiring behavior change is at the heart of what we do. 4) Unique Tools

No other botanical garden devoted to water conservation in the region showcases six acres of hands-on, innovative, educational exhibits and tools in such a fun, whimsical way. Our innovative model transforms visitors’ experiences and inspires long-term behavior changes. And we do it in a fun, approachable, way… Stepping through the gates of The Garden, visitors are transported on a fun, magical journey to a world of… … Vibrantly colored butterflies … Gloriously flowering succulents and

cacti … Lush alternative-turf meadows… … Innovative water conservation systems… … and much, much more.

Through our innovative model, visitors are transported to a vision of the future…the world we all need to live in now, if we are to survive…

…not the mirage that surrounds us today.

ANNUAL OPERATING BUDGET FY2013 Financial Snapshot REVENUE Agency funding Grants and contracts Contributions Earned income

$ 540,000 108,000 121,000 133,000 TOTAL REVENUE 902,000

EXPENSES Program services Management and general Fundraising/other TOTAL EXPENSES

703,000 123,000 61,000 887,000

SURPLUS $ 15,000 The Garden continues to remain in sound financial condition. With an annual operating budget of approximately $900,000, the majority of funding (nearly 60%) comes from the member water agencies, though funding is anticipated to decline as The Garden grows and becomes more independent and financially self-sufficient. The remainder of The Garden's funding comes from grants from foundations and corporations and government contracts (12%), contributions and in-kind donations from individuals (13%), while the balance (approximately 15%) comes from earned income through memberships, gift shop sales, facility rental, fee-for-services, education programs, and special events. The Garden maintains a healthy cash reserve, minimal liabilities, and has no debt.

THE OPPORTUNITY To reach our vision and solve our regions’ looming water – and economic – crisis, The Garden has identified the following three Campaign Initiatives:

1) Facility Expansion Renovating existing and building of new facilities

2) Program Expansion Expanding what we are already doing well, and creating new, innovative exhibits and experiences

3) Endowing the Future Ensuring The Garden permanently lives and grows for generations to come

INITIATIVE 1 – EXPAND & BUILD A NEW EDUCATION CENTER Achieving our bold vision will require critical investment to expand existing facilities and build a new Education Center The existing Multipurpose Room, Gift Shop, and Administrative Offices, all located in a single 2,500 square foot building accommodating up to 30 people at one time, have long since reached functional capacity. Education Department staff members are dangerously overcrowded in what was intended to be a storage unit. This new, expanded home would be a state-of-the-art LEED certified Gold building, showcasing costeffective, energy efficiency at the highest level. Not only would the facility provide the required space and resources necessary to maximize staff and volunteer effectiveness, but would also greatly expand the number of educational classes and innovative water conservation programming available to the community.

INITIATIVE 2 – PROGRAM AND EXHIBIT EXPANSION Innovative, whimsical, and inspiring exhibits are the hallmark of The Garden’s many assets. Expanding current exhibits while also continually developing fresh, new, leading-edge showcases are both critical components to bringing our vision to life.

INITIATIVE 3 – ENDOWING THE FUTURE To support our efforts to develop innovative water conservation solutions, The Garden needs to build a robust unrestricted endowment. Endowment funding provides the financial flexibility for The Garden to adapt and thrive as technology and new water conservation solutions evolve.

A gift to unrestricted endowment is a long-term investment in The Garden’s mission and innovative model, providing the personal satisfaction of creating a lasting legacy that will ensure The Garden experience for generations to come. It provides The Garden the ability to be agile, to respond to changes in government funding, and to address priorities as they arise.

OUR INVITATION: INVESTING

WISELY IN OUR FUTURE

The Garden was the realization of a bold vision, and we invite you to join us in the next chapter of that bold vision. Through The Garden’s Capital and Endowment Campaign, we will invest wisely in our water future today, so that we can ensure adequate water supplies to sustain our region for generations to come.



Capital and program expansion will provide The Garden increased ability to execute its Mission of promoting innovative water conservation and the sustainable use of related natural resources.



A strong endowment will provide financial stability, allow staff to focus on priority programs, and facilitate long-term financial planning and growth.

The Garden proposes a Capital and Endowment Campaign to raise $3.5 million, to achieve our bold vision, drastically change water conservation behaviors, and ultimately help to prevent otherwise inevitable water shortages in the future.

CAPITAL AND ENDOWMENT CAMPAIGN BUDGET 1

FACILITY EXPANSION & NEW EDUCATION CENTER

$1,500,000

Over the past year, The Garden held approximately 300 programs, with close to 40,000 community members in attendance. The existing classroom in the Multipurpose Room has a maximum occupancy limit of 30 people and the building is old and outdated. To increase levels of education provided to the community, renovation and expansion of the existing facility and building of a new Education Center is needed.

PROGRAM EXPANSION

$750,000

To achieve our bold vision, expansion of The Gardenâ&#x20AC;&#x2122;s nationally recognized, awardwinning innovative programs is required. Program expansion plans include: increasing both onsite and offsite access to educational programs; updating existing exhibits; creating new, targeted programming for audiences not currently reached; and also developing new, innovative exhibits as new technologies and solutions are discovered.

ENDOWING THE FUTURE

$1,000,000

By supporting the endowment fund through the Capital and Endowment Campaign, your generosity will enable The Garden to direct approximately $40,000 annually to core operating support of our innovative model in perpetuity. These funds are critical to The Gardenâ&#x20AC;&#x2122;s sustainability as they will help offset the slated annual declines in Joint Powers Authority funding (currently 60% of annual revenue) to the organization over the next five years.

CAMPAIGN COSTS

$250,000

In addition, the Campaign will include costs that are beyond usual operating expenses such as campaign planning, donor recognition, campaign consultant fees, special recognition events and ceremonies, coordination, collateral materials, and other operating support. This will ensure that The Garden effectively manages the process toward achieving the Campaign goal.

TOTAL PROPOSED CAPITAL AND ENDOWMENT CAMPAIGN

$3,500,000

WAYS TO SECURE THE FUTURE The Water Conservation Garden’s Capital and Endowment Campaign provides a unique opportunity to directly impact the re-imagining of our relationship with water now to help solve our water dependency to ensure our region’s continued prosperity and survival for generations to come. There are several ways you can make a gift to the campaign:

• Cash Gifts or Pledges - Gifts made in their entirety are welcomed and appreciated. However, having the option to pay a gift over time often makes it possible to make a larger gift total gift. A pledge made to The Water Conservation Garden’s Capital and Endowment can be paid over a period up to five years, but will make an immediate impact on our campaign goals.

• Gifts of Appreciated Securities - A gift of appreciated securities may provide an attractive tax advantage while providing significant support to the Campaign.

• Real Estate - A gift of real property and/or a residence may provide a beneficial tax advantage for donors and their heirs.

• Other Assets - Other assets, such as tangible personal property, are often welcomed. •

•

DONOR RECOGNITION Water Conservation Garden Capital and Endowment Campaign supporters will receive recognition through an array of opportunities. They include, but are not limited to:



New building naming opportunities



New exhibit naming opportunities



Inclusion in our “Waterfall of Donors” Wall



Recognition during special events



Recognition in The Garden’s newsletter, In Bloom.



Recognition in The Garden’s Annual Report.

Recognition benefits can also be customized to meet your needs. As a member of The Garden “family,” we recognize the importance of keeping you informed through our donor newsletter and annual report. In addition, you will have an opportunity to meet with the key leaders of The Garden and will receive invitations to special events and seminars. We are committed to keeping you apprised of the impact and program we provide to the communities we serve.

THE GARDEN’S GRATITUDE The Garden is committed to leading change. We are uniquely positioned to solve our region’s water issues…and there was never a more critical time to act than now. We have the ability to influence the future by taking steps today to re-imagine our relationship with water. Thank you for joining us on this important journey today

On the left is a staggering image of what the Colorado River’s end looks like today. No longer reaching its Delta, what remains is a dry, desolate, arid wasteland.

If we do not act now, the same fate awaits our region.

Thank you for joining us on this

important journey...

GARDENâ&#x20AC;&#x2122;S LEADERSHIP Board of Directors Dr. Richard Wright, President Professor Emeritus of Geography, San Diego State University Eleanor Garnet, Vice President Former CEO, N.N. Jaeschke, Dr. Harold Bailey, Treasurer Registered Civil Engineer and La Mesa Planning Commissioner Sue Ellen Benson, Secretary Retired Elementary Teacher, Lifetime Member of The Water Conservation Garden Tom Allingham, Board Member Owner, Backflow Services of La Mesa Tony Embrey, Board Member Retired Financial Manager for Federal Government Dr. Cindy Miles, Board Member Chancellor of the Grossmont-Cuyamaca Community College District Cheryl Minshew, Board Member Retired Educator and Business Owner; President of the Rancho San Diego Rotary Club Rich Restuccia, Board Member Director of Water Management Solutions, ValleyCrest Companies Elyssa Robertson, Board Member Principal Biologist, REC Consultants, Inc. Suzie Wiest, Board Member General Manager, Miramar Wholesale Nurseries Luis Generoso, Ex Officio (JPA Representative) Water Resources Manager, City of San Diego Public Utilities Department

Staff John Bolthouse Executive Director Heather Carlton Office and Gift Shop Manager Jillian Chu Education Assistant Lorraine Frigolet Development Officer Kay Mc Grath Bookkeeper Daniel Mayorga Horticulture Technician Pamela Meisner Director, Education Tamara Michaels Educator Elizabeth Ramos Director, Marketing and Events Paul Redeker Director, Horticulture and Facilities Steven Zampanti Facilities Assistant

The Water Conservation Garden Capital and Endowment Campaign Case for Support July 17, 2013

Appendix B: Study Participants

1. Elyssa Robertson 2. Mark Zacovic 3. Chuck Muse 4. Vince McGrath 5. Jan Tubiolo 6. Richard Namba 7. Richard Wright 8. ark & Anne Weston 9. Mark Watton 10. Mary Ann Stepnowsky 11. Barbara Huntington 12. Jason Foster 13. Sue Ellen Benson 14.

Appendix C: Letter to Interviewee July 17, 2013 Name Phone Email Address Dear Name, This is an invitation for you to participate in a preliminary feasibility study to obtain your opinions about the potential for The Water Conservation Garden to initiate plans to build the future. The Garden’s executive leadership recently engaged the University of San Diego’s Institute of Nonprofit Education and Research to conduct a Capital and Endowment Campaign Feasibility Study to develop and test a Case for Support to better understand the viability of The Garden’s proposed need for future expansion of its facilities, exhibits, programs, and permanent endowment of its future. A team of graduate students have been engaged as consultants, led by Professor Carole Fish, M.Ed., with support and input from The Garden’s leadership team. Together the USD consultants and The Garden’s staff leadership team have developed a Case for Support for you to consider. The goal of the study is to contact a small sampling of stakeholders to gauge your preliminary thoughts about the feasibility of conducting a large-scale fundraising campaign. You have been identified by The Garden’s staff as a key stakeholder in the community, as a member/docent of The Garden or on The Garden’s Board. We ask that you set aside 30 to 45 minutes of your time to be interviewed by a member of the USD consultant team for this project. The student will ask your opinion on a number of issues related to this early vision for possible project plans and the feasibility of a campaign. Your responses will be tabulated by the students and kept strictly confidential. These interviews are not a solicitation for funds. We are simply seeking your input and guidance on behalf of The Garden, and your responses will help shape the future direction of this possible campaign. You will be contacted by one of the students to schedule an interview within the coming days. Thank you for your participation in this important effort. Should you have any questions or concerns regarding this project, please contact any of the listed student members bellow or The Garden’s leadership team directly. Sincerely,

Appendix D: Sample Internal & External Questionnaire Feasibility External Interview Questions My name is ____. I am working as a part of a team of consultants from USD’s nonprofit leadership program. As you may be aware, our team is conducting a Capital and Endowment Campaign Feasibility Study for The Water Conservation Garden to help them better understand the viability of the proposed campaign. I want to personally thank you for speaking candidly and confidentially with me today about The Garden’s interest in launching a Capital and Endowment Campaign to raise $3.5 million for the organization’s facility and program expansion, and to permanently endow the future. Your opinion is extremely important to our consulting team and to The Garden. We are interviewing approximately 16 vested partners and supporters of The Garden to gather information testing the feasibility of The Garden’s proposed Capital and Endowment Campaign. All the information we gather from the various interviews will be tabulated into a comprehensive report for The Garden, to assist them as they plan for the future. Some important things you need to know: 1) Your participation in this study is completely voluntary, but please know that you have been selected because The Garden’s leadership values your perspective and greatly appreciates your participation. 2) Your feedback is completely confidential, and you will not be identified or named without your permission. 3) Your honest feedback will influence and impact the development of The Garden’s campaign and its future. We value any insights you can provide about The Garden and its ability to launch the proposed campaign. Again, I really appreciate you taking the time out of your busy schedule to talk to me today. So if you do not have any questions, let’s begin… Your Background 1. Can you please describe your current involvement with The Water Conservation Garden? 2. How did you first get involved with The Garden? 3. What do you like the most about The Garden? (Behind this question is what do you think are its strengths and challenges) 4. Are you/have you ever been involved in any leadership positions with any other nonprofit organizations or industry groups? (Behind this question is where else do you give of your time and resources and secondly, what do you bring to the table that will help strengthen the organization?) 57

___Yes ___No ___Not Sure a. If yes, which ones and what was the level of involvement General Impressions of Your Experience with The Garden Next I’d like to move on to ask some questions to better understand your general experience and impressions of The Garden. 5. In your own words, describe the mission of The Garden? What makes the organization unique? 6. When evaluating the level of communications you receive from The Garden regarding it’s programs, activities and funding requests, would you say you receive: ___No communication ___Some communication on 1 or 2 items ___The right amount of communication ___Too much communication Please elaborate 7. In your opinion, what is the reputation of The Garden in the community? (Key question!) ___Very Favorable ___Favorable ___Somewhat Favorable ___Not Very Favorable ___Don’t know Please elaborate: 8. Where do you see the organization in ten years? (Key question!) Case for Support Did you have a chance to review any of the materials that were sent to you prior to the interview? What was your initial impression? Cover letter, case for support (prospectus), invitation to the donor, list of advisory board and executive leadership. 9. What was your initial impression? ___Very Favorable ___Favorable ___Somewhat Favorable ___Not Very Favorable 58

___Don’t know Could you elaborate on your initial impression? If they have not had a chance to review the material: “That’s alright. The material contains information on the importance of The Garden and the components of the capital campaign. To summarize the materials:  Southern California was built on a desert, and we import the majority of our water supply to primarily maintain outdoor landscapes that are meant for a more humid climate  Over 50% of our water imports come from a finite supply, The Colorado River, which no longer reaches its Delta, and its depletion threatens our very existence. Our region’s economy, home values, business and job security all depend on a sustainable water supply.  The Garden’s bold vision is a Southern California that lives within the water resources of our desert climate, and where the Colorado River once again flows to the ocean  The Garden is a leader and expert in innovative water conservation, and has the solution: through its innovative model it is changing water conservation behavior by raising awareness, educating, and inspiring action through unique, innovative, hands-on tools, programs and exhibits.  To solve the issue and reach its vision, The Garden proposes the following Campaign Initiatives: o Facility expansion cost of $1.5 Million including education center o Expansion of its existing innovative, award-winning programs and exhibits, and creation of new programs and exhibits as new water conservation technologies and techniques arise for a proposed cost of $1 Million o Establishing an Endowment to permanently secure The Garden’s future for generations to come for $1 Million So would you consider supporting these proposed Campaign Initiatives, and we’ll take them one by one?  Facility Expansion ___Yes ___No ___Maybe Please elaborate:  Program Expansion ___Yes ___No 59

___Maybe Please elaborate:  Endowing the Future ___Yes ___No ___Maybe Please elaborate: 10. Do you have any questions or suggestions about The Garden’s plans that were not mentioned? JPA Only 11. As a member of the JPA, would you assist in energizing additional JPA support for The Garden’s proposed Capital & Endowment Campaign in order to expand and build new facilities, programs and exhibits, and to build an Endowment to make The Garden permanently available for the future? ___Yes ___No ___Maybe Please elaborate: Campaign Goals & Giving 12. What is your impression of the organization’s fundraising activities to date? 13. Do you think a $3.5 million capital campaign is feasible for The Garden over the next 5 years? ___Very Realistic ___Realistic ___Somewhat Realistic ___Not Very Realistic ___Don’t know 14. What do you see as potential fundraising challenges that need to be overcome in order to be successful with this capital campaign? 15. A part of the money the organization raises is through memberships, do you think people would give beyond their membership dues? Why do you think they would? 16. Can you suggest some early potential donors who would be able and interested in making one of the top 10 gifts? Can you suggest potential donors whose involvement would be important for the campaign’s success? 60

17. Has The Garden done a good job in recognizing past donations? 18. What type of donor recognition would you suggest for this campaign? 19. How would you rate The Garden’s capital campaign in relation to other causes that you might support? ___Very Important ___Important ___Somewhat Important ___Not Very Important ___Don’t Know 20. When you think of the largest gift you have ever made to an organization, what motivated you to make that gift? 21. If asked, would you consider making a gift to the campaign? ? At what level would you consider making the gift? Teresa and Meredith, you could break this out into levels ___Leadership ($250-$750k) ___Major Gift ($10-100k) ___Community (under $10k) 22. Would you be willing to give annually or continue to give annually if you make a gift for this capital campaign? 23. Would you consider The Garden in a bequest or your estate plan? Leadership Great 24. How would you rate the board and executive leadership’s ability and commitment to lead the organization through this capital campaign to raise $3.5 million? ___Very Capable ___Capable ___Somewhat Capable ___Not Very Capable ___Don’t Know 25. When you look at the board of directors, are there any specific individuals whose leadership is critical in stepping forward to galvanize others behind this effort? 26. A capital campaign steering committee is being proposed for this project. Who would you recommend to serve on this capital campaign steering committee? Do you have any suggestions for a volunteer chair for this committee? 27. If you were asked, would you be willing to serve on a campaign committee? Wrap Up Great 61

28. Is there anything we havenâ&#x20AC;&#x2122;t covered that you would like to highlight or emphasize? 29. Is there anyone else you think we should talk to about this project?

Feasibility Internal Interview Questions My name is ____. I am working as a part of a team of consultants from USD’s nonprofit leadership program. As you may be aware, our team is conducting a Capital and Endowment Campaign Feasibility Study for The Water Conservation Garden to help them better understand the viability of the proposed campaign. I want to personally thank you for speaking candidly and confidentially with me today about The Garden’s interest in launching a Capital and Endowment Campaign to raise $3.5 million for the organization’s facility and program expansion, and to permanently endow the future. Your opinion is extremely important to our consulting team and to The Garden. We are interviewing approximately 16 vested partners and supporters of The Garden to gather information testing the feasibility of The Garden’s proposed Capital and Endowment Campaign. All the information we gather from the various interviews will be tabulated into a comprehensive report for The Garden, to assist them as they plan for the future. Some important things you need to know: 4) Your participation in this study is completely voluntary, but please know that you have been selected because The Garden’s leadership values your perspective and greatly appreciates your participation. 5) Your feedback is completely confidential, and you will not be identified or named without your permission. 6) Your honest feedback will influence and impact the development of The Garden’s campaign and its future. We value any insights you can provide about The Garden and its ability to launch the proposed campaign. Again, I really appreciate you taking the time out of your busy schedule to talk to me today. So if you do not have any questions, let’s begin… Your Background 30. Can you please describe your current involvement with The Water Conservation Garden? 31. How did you first get involved with The Garden? 32. What do you like the most about The Garden? (Behind this question is what do you think are its strengths and challenges) 33. Are you/have you ever been involved in any leadership positions with any other nonprofit organizations or industry groups? (Behind this question is where else do you give of your time and resources and secondly, what do you bring to the table that will help strengthen the organization?) ___Yes ___No 63

___Not Sure a. If yes, which ones and what was the level of involvement General Impressions of Your Experience with The Garden Next I’d like to move on to ask some questions to better understand your general experience and impressions of The Garden. 34. In your own words, describe the mission of The Garden? What makes the organization unique? 35. When evaluating the level of communications concerning you receive from The Garden regarding it’s programs, activities and funding requests, would you say you receive: ___No communication ___Some communication on 1 or 2 items ___The right amount of communication ___Too much communication Please elaborate 36. In your opinion, what is the reputation of The Garden in the community? (Key question!) ___Very Favorable ___Favorable ___Somewhat Favorable ___Not Very Favorable ___Don’t know Please elaborate: 37. Where do you see the organization in ten years? (Key question!)

Founders Only 38. Tell us from your perspective how you have seen the organization grow? Has it grown in the direction you anticipation it would since its inception? ___Yes ___No ___Not sure Please elaborate: Case for Support

Did you have a chance to review any of the materials that were sent to you prior to the interview? What was your initial impression? Cover letter, case for support (prospectus), invitation to the donor, list of advisory board and executive leadership. 39. What was your initial impression? ___Very Favorable ___Favorable ___Somewhat Favorable ___Not Very Favorable ___Don’t know Could you elaborate on your initial impression? If they have not had a chance to review the material: “That’s alright. The material contains information on the importance of The Garden and the components of the capital campaign. To summarize the materials:  Southern California was built on a desert, and we import the majority of our water supply to primarily maintain outdoor landscapes that are meant for a more humid climate  Over 50% of our water imports come from a finite supply, The Colorado River, which no longer reaches its Delta, and its depletion threatens our very existence. Our region’s economy, home values, business and job security all depend on a sustainable water supply.  The Garden’s bold vision is a Southern California that lives within the water resources of our desert climate, and where the Colorado River once again flows to the ocean  The Garden is a leader and expert in innovative water conservation, and has the solution: through its innovative model it is changing water conservation behavior by raising awareness, educating, and inspiring action through unique, innovative, hands-on tools, programs and exhibits.  To solve the issue and reach its vision, The Garden proposes the following Campaign Initiatives: o Facility expansion cost of $1.5 Million including education center o Expansion of its existing innovative, award-winning programs and exhibits, and creation of new programs and exhibits as new water conservation technologies and techniques arise for a proposed cost of $1 Million o Establishing an Endowment to permanently secure The Garden’s future for generations to come for $1 Million 40. Do you have any questions or suggestions about The Garden’s plans that were not mentioned? Campaign Goals & Giving 65

41. What is your impression of the organization’s fundraising activities to date? 42. Do you think a $3.5 million capital campaign is feasible for The Garden over the next 5 years? ___Very Realistic ___Realistic ___Somewhat Realistic ___Not Very Realistic ___Don’t know 43. What do you see as potential fundraising challenges that need to be overcome in order to be successful with this capital campaign? 44. A part of the money the organization raises is through memberships, do you think people would give beyond their membership dues? Why do you think they would? 45. Do volunteers give regularly to the organization? Why do you think they do/do not give? 46. Why do you think potential donors might give to The Garden? 47. Can you suggest some early potential donors who would be able and interested in making one of the top 10 gifts? Can you suggest potential donors whose involvement would be important for the campaign’s success? 48. What type of donor recognition would you suggest for this campaign? 49. Within the packet of materials, a projected gift table for this campaign was included. A gift table projects the number and amount of gifts typically needed for a successful campaign. The key components of the gift table is the amounts and number of prospects needed from the leadership gift level and how many donors and prospects it will take at each gift level to complete the campaign. Do you feel the gift table is realistic for The Garden? Should the amounts be higher or lower? 50. If asked, would you consider making a gift to the campaign? ? At what level would you consider making the gift? ___Leadership ($250-$750k) ___Major Gift ($10-100k) ___Community (under $10k) 51. Would you be willing to give annually or continue to give annually if you make a gift for this capital campaign? 52. Would you consider The Garden in a bequest or your estate plan? Leadership Great

53. How would you rate the board and executive leadershipâ&#x20AC;&#x2122;s ability and commitment to lead the organization through this capital campaign to raise $3.5 million? ___Very Capable ___Capable ___Somewhat Capable ___Not Very Capable ___Donâ&#x20AC;&#x2122;t Know 54. When you look at the board of directors, are there any specific individuals whose leadership is critical in stepping forward to galvanize others behind this effort? 55. A capital campaign steering committee is being proposed for this project. Who would you recommend to serve on this capital campaign steering committee? Do you have any suggestions for a volunteer chair for this committee?