CORNERSTONE ASSISTANCE NETWORK Sustainable Fundraising Strategy: 36-Month Implementation Plan Implementation Timeline: Month 1 = May 2026 Month 36 = April 2029 Note on Timeline Indexing: All timeline references use a 1-based calendar month index. Month 1 begins May 1, 2026. Month 36 ends April 30, 2029. EXECUTIVE OVERVIEW Cornerstone Assistance Network (CAN) stands at an inflection point. Thirty years of relationship-based, church-mobilized community work has built extraordinary trust across Tarrant County—but that equity is currently undermonetized at the organizational level. With leadership (CEO Mike Doyle, COO Scott Charbonneau) having right-sized operations, revenue growth is now the primary path to sustainable reserves and mission expansion for critical programs like the New Life Center, Reentry 1st Stop, and Health Services. This strategy is not a crisis fundraise. It is the design of a professional development function on a nonprofit's lean timeline, anchored to three operational realities: Unrestricted revenue must grow to ~$1.8MM annually to fund a target 3-month operational cash reserve ($1.75MM) and growth capacity. The faith community relationship is the organization's most underlevered asset—and the one most resistant to professionalization, requiring deliberate conversion from volunteer throughput to institutional giving. Fort Worth's corporate base is largely untouched terrain, despite CAN's three-decade presence and clear mission alignment with community priorities. The strategy unfolds across three phases: Foundation Phase (Months 1–6 May–Oct 2026): Build infrastructure, activate relationships, hit near-term grant milestones. Growth Phase (Months 7–18 Nov 2026–Oct 2027): Scale what works, grow individual/corporate revenue as government grants begin to decline. Sustainability Phase (Months 19–36 Nov 2027–Apr 2029): Institutionalize diversified revenue, achieve the 3-month reserve target, and position for long-term independence. DELIVERABLE 1: LONG-RANGE REVENUE STRATEGY FOUNDATION PHASE (Months 1–6): Build Capacity, Activate Assets The Foundation Phase accomplishes three things in strict priority order: data infrastructure, relationship activation, and near-term grant readiness. 1. Data Hygiene, Privacy, and Segmentation Sprint (Months 1–2) CAN's DonorPerfect database holds thousands of contacts mixed with legacy Excel spreadsheets. No credible fundraising program can operate on data this messy. Data Reconciliation & Privacy Standards: Consolidation: Establish DonorPerfect as the only system of record for donor capture by Month 2. Privacy & Governance: Implement strict US data privacy best practices. Ensure opt-outs are respected, third-party wealth data is stored securely with role-based access, and a formal data retention/deletion policy is drafted. Reconciliation Assumption to Validate: Total Raw Records Exported: ~8,000 Duplicates Purged/Merged: ~2,000 (Assumption: 25% duplication rate) Total Unique Usable Records: ~6,000 Segmentation into Five Working Buckets: Segment Target Size Definition & Action Plan Bucket 1: Lapsed Major ~100 Gave $500+, inactive 18+ mos. Action: Board/CEO outreach. Bucket 2: Active Donors ~300 Gave in last 12 mos. Action: Core annual fund and major gift cultivation. Bucket 3: Inactive Prospects ~2,000 Wealth-screened for capacity. Action: Re-engagement campaigns. Bucket 4: Church Contacts ~1,600 Pastors, lay leaders. Requires fields: Church Name, Role, Relationship Depth. Bucket 5: Unqualified/Low-Data ~2,000 Missing valid contact info or suppressed. Action: Hold for Year 2 batch enrichment/NCOA update. Exclude from Year 1 pipeline. Major Gift Pipeline Conversion Model (Year 1 Target): We will screen the top 1,000 records using tools like iWave. The following conversion model applies a 12-month time horizon from the point of initial screening to generate $100K in Year 1 Major Gifts. Pipeline Step Duration Conversion Definition / Cadence Identification M1-M2 15% (1,000 → 150) iWave screening of top records identifies 150 prospects with $10K+ capacity. Discovery 30-45 days 33% (150 → 50) Outreach cadence: 1 touch per week for 3 weeks. "Discovery" = 20-minute coffee with CEO/Board. Cultivation 4-6 months N/A 3 mandatory touches (e.g., facility tour, impact report, CEO update) before any ask is made. Solicitation 30-60 days 40% (50 → 20) "Written proposal submitted" = Formal 2-page document with a specific $ request presented in person. Commitment 30-60 days 25% (20 → 5) Verbal yes followed by a signed pledge agreement. 5 gifts @ $20K avg = $100K. 2. Board Activation: Active Ambassadorship Conduct a "Relationship Inventory" with the Board. Compile 100–150 warm relationships. At each quarterly meeting, present 3–5 high-capacity prospects. The assigned board "sponsor" arranges a discovery meeting with no ask. This turns latent social capital into funnel velocity. 3. Faith Community as Revenue Engine: Church Champion Program Treat 20–30 partner churches as institutional giving partners, not just volunteer hubs. The Funnel: 25 recruited Champions → 15 congregational campaigns → 10 institutional commitments @ $1,500 avg = $15,000 base revenue. Timing Assumptions: Recruitment occurs in Months 1-3. Campaign duration is 4 weeks during seasonal windows (Fall/Spring). Time to commitment is 30 days post-campaign. The Multiplier: Referrals are tracked over a rolling 12-month horizon post-campaign. 10 active churches yield ~100 individual donor referrals → 20 convert to core donors. 4. Near-Term Grant Milestones Amon Carter Foundation (Month 1): Submit a capacity-building proposal for $75K–$125K. Sid W. Richardson Foundation (Month 5): Submit proposal for Health Services/Dental Clinic expansion. Foundation Phase: Month 6 Run-Rate Targets (Oct 31, 2026) Alignment Note: The table below represents a forward-looking 12-month run rate based on commitments secured by the end of Month 6. It represents the trajectory of the new private pipeline plus secured legacy grants. It does not equal the $6.0MM current baseline, which includes $2.0MM in non-cash/in-kind and legacy government grants that will be drawn down or replaced over the 36-month period. Revenue Stream M6 Actuals Secured Annualized Run Rate Individual Major Gifts $50,000 $100,000 Annual Fund / Monthly $35,000 $70,000 Church Institutional $10,000 $20,000 Corporate Sponsorships $15,000 $30,000 Foundation Grants $125,000 $250,000 Government Grants $1,400,000 $2,800,000 Earned Income (Thrift/Catering) $35,000 $70,000 TOTAL RUN RATE $1,670,000 $3,340,000 GROWTH PHASE (Months 7–18 Nov 2026–Oct 2027): Scale and Deepen Corporate Development: Scaling Ramp Fort Worth's corporate base is greenfield territory. Because corporate sponsorships require a 6–9 month lead time aligned with fiscal planning, the revenue scales exponentially as the pipeline matures and renewals compound. Corporate Pipeline Math: Year Active Prospects In-Flight Proposals Expected Win Rate Avg Contract Renewals Total Revenue Lead Time Y1 40 15 33% (5 wins) $15,000 0 $75,000 6-9 mos Y2 80 30 33% (10 wins) $15,000 5 (100%) $300,000 6-9 mos Y3 120 45 33% (15 wins) $15k-$100k 15 (80%) $800,000 9-12 mos Note: The jump to $800K in Y3 is driven by securing 2 Title Sponsors at $100K each (which requires 12-month lead times initiated in Y2) plus the compounding effect of renewing mid-tier sponsors. Deepening Foundation Relationships Target 15–20 mid-sized ($50K–$250K) regional foundations (e.g., Meadows Foundation, Communities Foundation of Texas). Assign a 12-month roadmap: 5–7 LOIs, 3–4 full proposals, targeting 2–3 new wins by Month 18. SUSTAINABILITY PHASE (Months 19–36 Nov 2027–Apr 2029): Institutionalize Planned Giving Pipeline CAN's donor base is aging and embedded in churches. We will launch a legacy giving program. Compliance Boundary: CAN will provide education and referral only. All legal language must be reviewed by the donor's counsel. A planned gift is "in pipeline" only when CAN receives a documented Letter of Intent (LOI) or confirmation of beneficiary status. Cadence & Mini-Funnel (Year 3 Target: 2-3 Documented Gifts): Q1 (Awareness): Direct mail "legacy checkbox" sent to 300 active Bucket 2 donors → yields 15 hand-raisers. Q2 (Education): 5 Church "Legacy Sunday" visits → yields 20 leads. Q3 (Cultivation): Pro-bono attorney hosts 1 estate planning seminar for the 35 combined leads → 10 attendees. Q4 (Commitment): 1:1 follow-up with attendees yields 2-3 documented LOIs. DELIVERABLE 2: FUNDING SOURCE DIVERSIFICATION MATRIX Methodology Note: The matrix below uses a single-point Base Target scenario. The "Current Annual" baseline is normalized to $6.0MM, reflecting recent 990 averages and isolating noncash/in-kind contributions. Funding Source Current Annual $ Current % Year 3 Target $ Year 3 Target % Risk Level Government Grants $2,800,000 46.7% $2,000,000 28.6% HIGH – Expiration requires proactive replacement. Foundation Grants $600,000 10.0% $1,500,000 21.4% MEDIUM – Requires strong reporting. Individual Major Gifts $100,000 1.7% $500,000 7.1% MEDIUM – Relies on board activation. Annual/Monthly Giving $150,000 2.5% $350,000 5.0% LOW – Steady, predictable, high ROI. Church Institutional $50,000 0.8% $600,000 8.6% MEDIUM – Cultural shift required. Corporate Giving $50,000 0.8% $800,000 11.4% MED-HIGH – Long sales cycles. Earned (Thrift/Catering) $250,000 4.2% $350,000 5.0% MEDIUM – Constrained by capacity. Noncash/In-Kind/Other $2,000,000 33.3% $900,000 12.9% LOW – Stable baseline, but highly restricted. TOTAL $6,000,000 100.0% $7,000,000 100.0% Unrestricted Revenue & Reserve Math To ensure CAN generates the required unrestricted cash to build its 3-month operating reserve ($1.75MM), we apply strict restriction assumptions to the Year 3 targets. Historical Restriction Baseline: Current 990s indicate Government and Noncash are 0% unrestricted. We assume a 15% indirect cost recovery on new foundation grants. Individual/Corporate/Church gifts are modeled at 50% unrestricted based on standard sector appeals, while Annual/Earned are 100% unrestricted. Funding Source Year 3 Target $ % Treated as Unrestricted Unrestricted $ Generated Government Grants $2,000,000 0% $0 Foundation Grants $1,500,000 15% (Indirect cost recovery) $225,000 Individual Major Gifts $500,000 50% (Half restricted to programs) $250,000 Annual/Monthly Giving $350,000 100% $350,000 Church Institutional $600,000 50% $300,000 Corporate Giving $800,000 50% $400,000 Earned (Thrift/Catering) $350,000 100% $350,000 Noncash/In-Kind/Other $900,000 0% (Restricted by nature) $0 TOTAL $7,000,000 $1,875,000 Reserve Accumulation Bridge: Assuming core unrestricted expenses (admin, fundraising, unfunded ops) require ~$1.2MM annually, CAN will generate an unrestricted cash surplus. Sweeping 100% of this surplus into board-designated reserves achieves the $1.75MM target by Year 3. Metric Year 1 Year 2 Year 3 Starting Reserve Balance $250,000 $450,000 $950,000 Unrestricted Revenue Generated $1,400,000 $1,700,000 $1,875,000 Core Unrestricted Expenses ($1,200,000) ($1,200,000) ($1,200,000) Annual Surplus Swept to Reserve $200,000 $500,000 $675,000 Ending Reserve Balance $450,000 $950,000 $1,625,000* (Note: Minor $125K gap to $1.75MM target covered by Y4 Q1 cashflow). DELIVERABLE 3: DEVELOPMENT ORG CHART, RACI & GOVERNANCE (a) Phased Staffing & Cost Model (Year 3 Run Rate) By Month 36, the Development Department costs ~$231K annually. This yields a highly efficient cost-to-raise ratio (CTRR) of ~$0.05 per dollar raised against the $4.1MM private revenue target. Role / Expense FTE Salary/Fee Benefits (12%)* Total Cost Hiring Trigger Director of Development 1.0 $70,000 $8,400 $78,400 Month 1 (Immediate) Annual Fund Manager 0.5 $25,000 $3,000 $28,000 M12: Private rev >$1.2MM Corp/Church Officer 1.0 $55,000 $6,600 $61,600 M24: Corp/Church rev >$400K Database Admin 0.5 $25,000 $3,000 $28,000 M30: CRM volume peaks Grant Consultant (Frac.) - $20,000 - $20,000 M18: >10 active funders External Tools/Data - $15,000 - $15,000 M1: iWave, CRM upgrades TOTAL Y3 RUN RATE 3.0 $231,000 \Benefits rate modeled at 12% per CAN's Charity Navigator profile.* \\Includes $5K temporary data consultant in M1-M2, replaced by ongoing tool subscriptions. (b) Assumptions to Validate (Months 1-2) To ensure the math holds, the DOD must validate the following early assumptions: Assumption Why Required Validation Method Owner Due Date 25% CRM Duplication Rate Dictates viable prospect pool size. Run deduplication script in DonorPerfect. DOD / Temp Data Consultant Month 2 15% iWave Match Rate Proves $100K Major Gift pipeline is viable. Batch screen top 1,000 records. DOD Month 2 15% Indirect Grant Recovery Dictates unrestricted cash flow for reserves. Audit current foundation grant agreements. CAO / Finance Month 1 (c) Governance & Compliance Workflow Process Owner / Approver Timeline / Cadence Donor-Facing Impact Claims Program Directors (Draft) → CEO (Approve) Updated Quarterly Gift Acceptance & Restrictions CAO / Finance (Review & Approve) Within 48 hours of gift receipt Grant Reporting Deliverables DOD (Draft) → Program (Data) → CEO (Approve) 14 days prior to funder deadline Stewardship & Acknowledgments DOD (Draft) → CEO (Sign >$1,000) Within 72 hours of gift receipt RISK MANAGEMENT & CONTINGENCIES Risk Scenario Early Warning KPI Owner Actions (Stop/Start) & Cost Centers Frozen Targets Revised Approver 1. Gov Grant Not Renewed Notice 90 days out. CEO Stop: Non-essential hires. Start: Emergency major donor appeals. Freeze: Program expansion budgets. Reduce Gov Target by $500K. Board Exec 2. Corporate Pipeline Stalls < 5 Qualified conversations by M9. DOD Stop: Cash sponsorship pitches. Start: Skills-based volunteering pitches to build trust. Freeze: Corp Officer hire (M24). Push Y2 Corp Target to Y3. CEO 3. Foundation Rejections < 20% win rate on LOIs by M12. DOD Stop: National foundation outreach. Start: Engage external grant reviewer. Focus on local family foundations. Reduce Y2 Grant Target by 30%. CEO 4. CRM Migration Failure Data reconciliation incomplete by M3. COO Stop: New acquisition campaigns. Start: Retain temporary data consultant to force-complete. Delay Major Gift pipeline by 1 Qtr. CAO 5. Key Staff Turnover (DOD) DOD departs before M18. CEO Stop: Corporate outreach. Start: Elevate fractional grant consultant to interim DOD. Focus on retention. Freeze all Y2 growth targets. Board Exec 6. Church Partner Attrition < 5 campaigns booked by M6. DOD Stop: Broad church recruitment. Start: 1:1 CEO meetings with top 3 legacy church pastors. Reduce Church Target by 50%. CEO 7. Poor Wealth Screen Match < 50 prospects identified with $10K cap. DOD Stop: iWave subscription renewal. Start: Manual peer-screening with Board. Reduce Y1 Major Gift Target to $50K. CEO 8. Restricted Gift Overload Unrestricted revenue < 20% of total. CAO Stop: Accepting highly restricted program gifts without 15% overhead coverage. Adjust Reserve Accumulation timeline. Board Exec WHAT SUCCESS LOOKS LIKE AT 36 MONTHS (April 2029) By the end of April 2029, if this strategy is executed with discipline, Cornerstone Assistance Network will be transformed. The organization's $7.0MM budget will be sustained by a diversified base. Government grants will have safely reduced to 28.6% of the budget. Foundation relationships will provide a reliable $1.5MM. Individual donors will generate $850K annually (Major + Annual). A professional corporate giving program will yield $800K. Faith communities will contribute $600K institutionally. No single source will exceed 30% of revenue. Crucially, CAN will generate enough unrestricted revenue to sweep surpluses into a board-designated fund, effectively building a $1.6MM+ operational cash reserve. This positions the organization to weather market downturns or delayed government reimbursements without immediate program cuts to the New Life Center or Health Services. By 2029, CAN will stand as a model for how a faith-rooted nonprofit sustainably funds long-term community presence without losing its soul to transactions.