Make-A-Wish Foundation of America.doc

FEBRUARY 2007

Make-A-Wish Foundation of America

Funding Growth

100%

Revenue (2004)

Externally-run special events

Internally-run special events

Individual contributions

Corporate

$160M

Interest, investments, & other income

Grants & fundraising

Source: Annual report; internal data from organization

• Corporate contributions

are a relatively even mix

of in-kind donations and

cash; major wish-

granting partners (e.g.,

Disney) play a

significant role

• Special events include

walk-a-thons and galas;

Approximately half are

organized by the

chapters themselves

with the remaining half

being organized by

outside parties

• The vast majority of

individual giving comes

from small contributions

100%

Revenue (2004)

Externally-run special events

Internally-run special events

Individual contributions

Corporate

$160M

Interest, investments, & other income

Grants & fundraising

Source: Annual report; internal data from organization

100%

Revenue (2004)

Externally-run special events

Internally-run special events

Individual contributions

Corporate

$160M

Interest, investments, & other income

Grants & fundraising

Source: Annual report; internal data from organization

• Corporate contributions

are a relatively even mix

of in-kind donations and

cash; major wish-

granting partners (e.g.,

Disney) play a

significant role

• Special events include

walk-a-thons and galas;

Approximately half are

organized by the

chapters themselves

with the remaining half

being organized by

outside parties

• The vast majority of

individual giving comes

from small contributions

Make-A-Wish Foundation of America

“Don’t muddy up the purity and simplicity of the mission.” –– Paul Velaski, Vice President

& Chief Financial Officer

Organization

Snapshot

Founding date: 1980

Revenue (2004): $160 million

Structure: Network

NCCS classification: Healthcare—patient services—entertainment, recreation

Services: Grants wishes

Beneficiaries: Children with life-threatening medical conditions

Leadership (selected): David Williams, President & Chief Executive Officer; Paul

Velaski, Vice President & Chief Financial Officer

Address: 3550 North Central Avenue, Suite 300, Phoenix, AZ 85012-2127

Website: www.wish.org

OVERVIEW

The origins of the Make-A-Wish Foundation of America trace back to 1980, when a

terminally ill little boy named Chris Greicus had his wish granted. All his young life, Chris

had dreamed of becoming a police officer. On April 29, 1980, he was sworn in as the first

ever and only honorary state trooper in Arizona history. Later that year, Make-A-Wish

received tax-exempt status as a nonprofit organization and began fundraising to grant

more wishes.

Make-A-Wish has granted the wishes of more than 144,000 children worldwide, in

pursuit of its mission to “grant the wishes of children with life-threatening medical

conditions to enrich the human experience with hope, strength, and joy.” It now has 71

chapters in the United States. The Make-A-Wish national office provides operational,

financial, training, marketing, and development support to the U.S. chapters. More than

25,000 volunteers serve as wish granters, fundraisers, and special events assistants.

The organization’s revenues now exceed $160 million. It has achieved this scale through

a combination of individual and corporate support. Individual funds come from donations

and special events. Corporate support is a mix of in-kind gifts (i.e., the granting of

wishes) and cash contributions.

GROWTH STORY

• 1980 – Chris Greicus, a terminally ill young boy, has his wish realized shortly

before his death. His experience serves as the inspiration for the founding of Make-

A-Wish.

• Early 1980s – Make-A-Wish establishes a relationship with the Walt Disney

Company.

• 1984 – Make-A-Wish forms a national office.

• 1990 - 1991 – The organization changes its mission statement to include all

children with life-threatening medical conditions rather than just those who are

terminally ill.

• 1996 - 1997 – The national office hires first director of development.

• 1999 – Make-A-Wish chapters cover the U.S.

• 2003 – The organization launches a major process to identify services chapters

need the national office to provide.

• 2004 – Make-A-Wish amends its bylaws to support an increased role for the

national office.

100

150

$200M

Revenue

1997 1998 1999 2000 2001 2002 2003 2004

14%

(97-04)

CAGR

Note: “CAGR” stands for compound annual growth rate

Source: Annual reports; internal data from organization

Make-A-Wish

chapters cover

the U.S.

100

150

$200M

Revenue

1997 1998 1999 2000 2001 2002 2003 2004

14%

(97-04)

CAGR

Note: “CAGR” stands for compound annual growth rate

Source: Annual reports; internal data from organization

Make-A-Wish

chapters cover

the U.S.

100%

Revenue

1997

$66M

1999

$101M

2001

$130M

2004

$160M

Contributions

(individual and

corporate)

Internally-run special

events

Externally-run special

events

Grants & fundraising

Interest, investments,

& other income

Source: Annual reports; internal data from organization

100%

Revenue

1997

$66M

1999

$101M

2001

$130M

2004

$160M

Contributions

(individual and

corporate)

Internally-run special

events

Externally-run special

events

Grants & fundraising

Interest, investments,

& other income

Source: Annual reports; internal data from organization

REVENUE TRENDS

Revenue growth: Make-A-Wish has grown solidly from its inception. Growth slowed

somewhat after the organization covered the U.S. with chapters.

Funding mix: Make-A-Wish’s funding mix has been largely constant for the past decade.

Early in its history, special events comprised a larger percentage of total fundraising.

ACTIONS THAT HELPED PROPEL GROWTH IN FUNDING

• Relied on simplicity and purity of the organization’s mission. The simplicity

and purity of Make-A-Wish’s mission has propelled fundraising, partnerships, and

volunteer activities. The organization’s leaders have worked hard not to muddy the

waters.

• Diversified funding sources where possible. Make-A-Wish has had great

success with both small individual donors and corporate contributors. It has

expanded its individual support from special events to direct mail and now to the

Internet. The organization also has worked to diversity its corporate support by

increasing its number of corporate partners.

• Covered the U.S. with local chapters while loosely governed. Make-A-Wish

fueled its growth by opening local chapters across the U.S. during a loosely-

managed phase. By 1999 it largely had covered the country with chapters. Since

then, U.S. growth has been more gradual and the national office increased its

overall management role.

FUNDING CHALLENGES

• Funding training and development. Funding for staff training, volunteer training,

and board development has been the hardest for Make-A-Wish to secure.

• Meeting the heavy cash demands associated with building new chapters.

Covering the U.S. with local chapters drew down national’s cash reserves. With

coverage now complete, cash reserves are once again strong.