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Philanthropy - voluntary action for the common good... - Robert L. Payton, as quoted in Greenfield's Fundraising Fundamentals Number of nonprofits registered with IRS - US: 1.4 mil; 63% registered as 501c3... 161K in Canada Donors give for the following reasons - moral obligation to help... personal satisfaction of helping others... to remove guilt for not giving... to maintain/improve social status... peer pressure... compassion/empathy... personal identification... self-interest... religious influence... need to be needed... substitution for active participation... support for mission and purpose... personal relationship... appreciation for mission... evidence of one's success... to express anger, or love, or hope... to end fear... out of the cause's appeal... to be remembered... to gain recognition... to join group, sense of belonging ... to preserve the species... to gain immorality... for psychic self-satisfaction... desire to provide public goods... to fulfill condition for employment... in response to leadership from peers... to be agent for public good... satisfaction from seeing others satisfied... tax benefits giving nearly always implies - some sort of connection to the org giving may provide - some type of return in what the org will do for them or someone close to them effective fundraisers seek to discover... - what is important to any potential donor, and tap that need to encourage and support giving. This requires being able to look at the org's mission and programs through the eyes of the donor rather that from the perspective of those who run the org. key activities in fundraising - research, marketing, relationships, ethics & accountability Research supports fundraising by - identifying stakeholders and potential donors, providing info about stakeholders, ensuring appropriate resource allocation, planning, evaluation, rating stakeholders for relationship building and service priorities Roles of marketing in fundraising - communicate purpose and activities, promote mission and case for support, encourage participation in fundraising activities, encourage donations, communicate fundraising results, advocate the case Relationships - the heart of fundraising
Relationships support fundraising by - adding prospects and developing them into active/regular donors, support other types of contributions, engage stakeholders in the organization, integrate with research and marketing, allow getting to know prospects and interests, support stewardship ethics and accountability ensure - stakeholder trust and confidence, assets are managed and accounted for data collected and used properly, donor privacy and rights maintained, reporting/other requirements fulfilled, programs executed as promised, donors are retained Why research? - ensures appropriate resource allocation, helps build staff and volunteer confidence, adds element of joy an discovery to prospecting How does Research ensure appropriate resource allocation? - allows staff/volunteers to focus efforts on prospects who can provide the most good.... Helps in planning how to use volunteers in the organization (number and types of volunteers needed) How does Research help build staff and volunteer confidence? - Backed by good information, the process of cultivation and solicitation has greater chances for success. How does good Research add an element of joy and discovery to prospecting? - adds confidence, which eliminates anticipation of prospecting as a chore, makes it more like solving a good mystery - with whom can we successfully connect? How can we make our case compelling? How much will they give? Marketing - a formal definition - the process of gathering, recording, and analyzing information pertaining to the marketing of goods and services Marketing - a simpler definition - the process of finding out the wants and needs of current and potential markets Rosso's Concentric Circles - outer circle - People with similar interests Rosso's Concentric Circles - at the core - who are these primary stakeholders? - Major Donors, Board, Management Staff (these people have the responsibility to bring those in the outer circles closer) Rosso's Concentric Circles - second to outer circle - Former Participants
complete contact info, biographical data, business history, giving history with your org, cultivation/solicitation contact records, publicly available giving info from other orgs, sources of info checked for prospect and most recent review dates, general and specific interests Research pitfalls - putting off research until you "have time", expecting interns or new volunteers to know what to gather, sending out cultivation/solicitation teams with incorrect information, trying to find out everything about everybody Prospect/donor profiles help you select the right... - right person... to ask the right person... at the right time... in the right way... for the right amount Inquiries to use in researching foundations... - is there support for similar agencies?... Does the foundation clearly state support for the type of project and/or contribution sought?... Is funding provided in the org's geographic area?... Is the request amount compatible with prior giving history? Inquiries to use in researching corporations... - are board members affiliated with company?... Are services used by employees and dependents?... Are current donors/volunteers employed or have affiliations?... Does the organization purchase company products?... Does corporate interest match products/services?... are donation decisions made locally or at corporate level?... are needs and priorities of two entities aligned? Using electronic data enhancement... - analysis of giving history and donor information... screening of prospect/donors to identify "wealth indicators"... data gathering from a variety of sources enhances the in-house database... resulting in a need to be more strategic. 3 primary types of giving campaigns - Annual Giving, Capital/Major Campaigns, Planned Giving What is the "workhorse" fundraising tool of every org? - Annual Giving - typically provides operating support for ongoing programs. Essential first stage that precedes all others. Which type of giving campaign is ideal for first-time donors to get them started, and for those you are seeking to upgrade? - Annual Giving What is the "special needs" fundraising campaign... generally having a specific purpose and running a specific time period? - Capital/Major Campaign
Which type of campaign lays the groundwork for involving new volunteers and donors and sets the stage for increased giving? - Capital/Major Campaign What is the bedrock on which fundraising campaigns are built, and which supports and informs everything you do? - Research Marketing emerges from which 2 plans? - the Strategic Plan and the Development Plan Activities generally a part of marketing - Research... Segmenting markets... setting overall and program goals... planning organizational strategies... budgeting and resource allocation... communications... public relations... evaluation A key point when Marketing: It's not the money that's important, but rather... - what the money does! Instead of taking the marketing approach of telling people how great we are, what is the more successful approach? - come from the point of view of the target audience... answering for them the questions... "what's in it for me? Why should I get involved? What has the org done or will it do to affect me in my life?" successful execution of an effective marketing plan can help an organization to - bring awareness of the org to target audience, create a positive environment in community, get constituent buy-in, encourage involvement, challenge and inspire people, set the stage for fundraising efforts, focus on donor motivations and program/client outcomes, create link b/w org and stakeholders Why do you need to know your audience when marketing? - the most successful programs/products are those that are carefully targeted Goal of effective marketing? - Bring about a transaction that is mutually beneficial. what should be in a good marketing plan? - achievable goals, identified target markets, clearly articulated messages, specific strategies to achieve goals, assignment of resources, defined time frames, indicators of success, methods to monitor and evaluate progress What type of statement describes how the org is unique, generally stating niche in the community? This statement should describe in a few concise words what the org is all about so that when people read it, they will instantly "get" the org. Makes the mission of the org simple and compelling? -
Case for Support The case is driven by... - the mission and strategic plan of the org. what describes the org's goals and objectives and covers the programs and services it provides? - Case for Support The case helps make it possible to match - the org's needs to the donor's needs. What are the 3 key elements of a Case? - Org's Purpose, Content, Focus The Purpose section of the case should include: - Orgs' aims, purposes, and mission... presents a case for current programs, shows how new programs will benefit, and dramatically show the org's impact on its community in a variety of ways, now and in the future. The Content of the case should centralize information about a variety of subjects, including: - org's needs, cause, mission, goals, objectives, strategies & task plans, governance, staff competence, budget, financial history, facilities Typically, the case will have a particular focus... it might be one, two, or all three of these: - unrestricted operating support, restricted gifts for operations, restricted gifts for special needs - capital, endowment, or other What is a written version of the case for a specific constituency or campaign, derived from the org's overall case? - Case Statement The Case Statement includes: - the org's services, programs, objectives... how the fundraising goals support the org... the ways the org will remain productive, the difference a donor's support will make, what the org must do to improve/change its activities, aims and value to society Who said this?... The case statement is the one definitive piece of the whole campaign. It tells all that needs to be told, answers all the important questions, reviews the arguments for support, explains the proposed plan for raising the money, and shows how gifts may be made, and who the people are who vouch for the project, and who will give it leadership and direction. - Harold J Seymour, 1935, Noted fundraising pioneer Why is it important to obtain feedback and ownership in developing the case statement? - allows for key groups to provide input, general agreement to emerge, identify questions that may be raised ahead of time allowing them to be addressed before they are brought up by others, enhance guy-in.
Why is it important to recruit volunteer leadership in developing the case statement? - when prospective volunteers have questions, the case statement helps provide answers and gives them confidence in the plan and direction. why is it important to test the market with your case statement? - determine how potential major donors feel about the org's direction and proposed development goals. Provides a vehicle to bring prospective major donors into the planning process and allows them to react to the proposed objectives, highlighting strengths and weaknesses as well as which components appeal to which constituents. The final case statement can be the basis of content for: - website, proposals, campaign prospectus, newsletters, individual presentations, brochures, appeals, press releases, speeches ways to segment constituencies - strongest supporters, regular donors, those with greatest interest/ability to give, those most interested in campaign elements Things to consider in case statement for major donor constituents: - point out you are looking for a few major givers, ask for advice and participation, state needs more briefly, emphasize leadership, be candid about request, develop low-key "insider" appearance that is not too slick Things to consider in case statement for Community Audience constituents: - emphasize economic contributions of your org to the community Things to consider in case statement for Corporate constituents: - emphasize any services you provide to the corp or its employees Things to consider in case statement for Foundation constituents: - avoid formal printing... be prepared to fit the foundations' proposal format... address annual goals, hidden agendas, and stated areas of interest. To ensure a successful case statement: - know about or collect org info... talk to everyone... know the expectations/interests of the target constituency... relinquish pride of authorship... and write, rewrite, rewrite, then rewrite! The case statement should be reader-oriented, rather than - organization-oriented Elements of the Development Process - Developing the case for support... prospect research... cultivation and constituency development, solicitation strategies... acknowledgement and recognition... gift management the Development Plan interfaces with all aspects of the organization -
90% of funds raised during a campaign are given by what percentage of donors? - 10% Once an org has a solid annual giving program in place, its next step is often: - the launching of a major gifts/capital campaign Benefits of major gift campaigns: - builds familiarity with org, encourages donors to "think big", pushes annual giving to new levels, builds volunteer leadership, increases the org's visibility, enables donor pledges over several years (allows them to consider larger gifts!) The more established these characteristics (institutional readiness), the greater the chance of success: - reputation... credibility... urgency of case... availability/readiness of board/volunteers... solid prospect database, fully researched with established interest... operational readiness of office/systems... extent to which pre-campaign planning has occurred Constituent readiness is based on: - org has stable, positive image... core of ready and accessible volunteers... adequate number of prospects able to make substantial gifts... ongoing awareness, information, and cultivation programs in place... completed external planning/feasibility study As part of the organization's strategic planning... - the case has been made... the case statement written... and prospects identified With the organization's strategic planning complete, the next step is the - internal audit (pre-campaign) Pre-campaign activities/internal audit include: - Org planning (mission, direction, plans for next 5-10 years, long-range funding implications), board leadership (recruitment, structure, involvement in planning), administration and finance (personnel's understanding of dev process, org's budget and financial projections, revenue/expense past trends), Development Operations (staff size, experience, capabilities, goals, record keeping, gift processing/ack system, prospect research, cultivation/recognition programs, materials), donor base, volunteer structure, public and donor relations Another important Pre Campaign Activity - Feasibility study to test campaign concept and gather data Another important Pre Campaign Activity - Gift range table reflecting approximate levels of giving and number of gifts required Another important Pre Campaign Activity - clear, agreed-upon policies and guidelines for how campaign will run
A campaign is likely to reach its goal if the largest gift equals x% or more of the goal, and if it and next 9 gifts total x% of goal, AND next 90 gifts equal x% of goal? (the final X% can likely be raised from all other gifts.) - 10%... 33%... 33% What is the Rule of Thirds? - 10 gifts account for 1/3 of total, next 100 gifts account for another 1/3, final 1/3 comes from everyone else. While Rule of Thirds traditional approach can work, most modern campaigns are using major gift models in which... - far fewer gifts are responsible for much larger percentages of total. (not uncommon for lead gift to be 30-50%, and top 10-15 gifts can account for 60% of total. A realistic campaign gift table usually results from what is learned during a... - feasibility study. Components of major gifts campaign? - fundraising strategies... role of steering committee and volunteers... communication plan... campaign budget... campaign duration... duration of pledge period (typically 36-60 months)... procedure for recording pledges... how gifts will be deposited... how gifts will be counted (annual fund, bequests, etc.)... guidelines for GIK... process for securities gifts... planned and other gift guidelines... recognition plan... campaign wrap-up and audit Phases of a major-gifts campaign? - Planning... Cultivation... Solicitation... Pledge or fulfillment phase) -- all included in the campaign timetable Why should solicitation for a major gifts campaign start at the top and begin within the organization? - these "gifts of confidence" provide credibility for the campaign and allow the major-gift solicitation to begin. What ideally occurs during the quite phase of a campaign? - gifts from "family" and lead gifts are solicited, with goal of 100% board participation and 40-50% of the goal achieved. Two types of Planned Gifts? -
- Outright/Current (complete transfer or realized gift of cash/stock from estate) or 2. Deferred (testamentary giving or life income arrangements to be realized in the future) What is a provision made in a donor's will, through which an organization receives cash and/or other assets at the time of the donor's death? - Bequest
Establishes a long-term relationship with the donor... encourages donor to think about gifts of assets in addition to income... often provides future funds... enhances opportunities for charitable bequests, particularly in the case of gift annuities Advantages of Planned Giving to the Donor - opportunity for income and estate tax deduction or to enjoy a fixed or variable income... supplement retirement income (e.g. deferred charitable gift annuities and charitable remainder trusts)... avoid or lessen capital gains tax (if highly appreciated asses are given)...increase income compared to other investments... competent management of assets transferred as gifts... ability to pass an asset to an heir after org's use Now that you are ready to start a planned giving program, what are the steps to take? -
- Commit to concept... 2. Appoint a study committee... 3. adopt a plan and guidelines... 4. board approves budget... 5. Training for staff and board members... 6. Identify prospects (begin with org's board and current major donors)... 7. add appropriate subcommittees... 8 prepare marketing plan... 9. start up a mail-cultivation program Trends that will affect planned giving... - we are a graying society... lower birthrates in generations following baby boomers means it will be increasingly difficult to sustain growth in planned giving programs.... Most charities will need to have effective programs in place soon or will miss the opportunity... most people die without a valid will. Ideal donor for Gift Annuity - older, single female on a fixed income, someone who wants a predictable income for life. The focus of philanthropy must be... - relationship-building that is customized to the needs and desires of the donor. For philanthropy to flourish - Donor focused research... Targeted cases, constituents, methods... Strategic communications... Stewardship... Focus on the value Strategic communications: think about how communications can... - inform, challenge, and inspire people Instead of focusing communications on campaign methods or dollars, instead focus on... - donor motivations and program/client outcomes. Stewardship involves giving donors confidence that their contributions are handled in ways that ensure intended use. For relationship purposes, stewardship is about... - responding to and thanking donors in a timely way... recognizing donors and reporting appropriately... protecting donors' privacy and their rights
What is the process of gradually developing the interest of an important prospective contributor through exposure to institutional activities, people, needs, and plans to the point where a major gift may be considered? - Cultivation What is the basis of successful fundraising? - ONGOING cultivation What is the tracking and recording of contributions to ensure they are used exactly as the donor intended? - Stewardship What are the two major parts of fundraising, relating to building and sustaining relationships? - Cultivation and Stewardship Describe the Exchange Principle - Products and services are offered, meet someone's needs, and compensation (money or other kinds) is offered in return. How does the Exchange Principle apply to fundraising? - This principle requires organizations to express their missions in ways that invite donors to participate in programs that extend their values and preserve their interests. At the same time, that participation is meeting one or more needs of the donor, such as desire for recognition, sense of belonging, making a difference, or other tangible/intangible need(s). As government tightens services to people in need... - opportunities arise for nonprofits. Over the next 20 years, the transfer of wealth challenges nonprofit orgs to change their fundraising methods to ensure receipt of their share. More emphasis will be placed on... - financial planning and planned gifts. Because each generation is different... - nonprofits will need to conduct new research and then evaluate and update marketing/fundraising strategies to attract and secure new donors. The reasons people give are tied directly to - the building of relationships. Purpose of Cultivation: - add prospects to donor base... help move prospects to active supporters and regular donors... aid in improving relationships... provides understanding of how they can help org achieve its mission Cultivation is done to encourage donors to - give again and at higher levels
Statistics Canada reports... - Canadian giving increased 1.4% in 2007 to $8.6 billion (vs. 2006) even though total number of donors dropped by .9% to just under 5.7 million (vs. 2006.) Statistics Canada reports... - nationally in Canada, 24% of all tax filers claimed charitable donations in 2007, slightly lower than in previous years. Why do individuals decide to give? - give something back... help care for others... identify with a worthy cause or goal... because they are involved... gain immortality... express deep emotion (grief, joy)... respond to the person asking... diminish negative feelings (guilt, fear, anger) ... gain tax and/or financial planning benefits Why is it important to understand motives for giving? - helps target strategies and opportunities... allows appropriate matches with meaningful opportunities... today's technology allows selective targeting even of "small" donors When is personal solicitation most effective? - peer to peer Personal visits aid in... - accessing the depth of the commitment... understanding the assets the donor has to make the gift... determining what the donor is trying to accomplish... discovering specific areas of interest Each conversation with a prospective donor can provide - additional information for that individual's donor profile for use in further solicitation. like with individuals, the key to success in soliciting contributions from organizations is... - relationship 7 steps for establishing, cultivating, and sustaining relationships with organizations: -
- Research 2. Inquire/approach/involve 3. Develop request 4. solicit the donation 5. Follow through after solicitation 6. report to the funder 7. repeat the process, continuously plan What motivates Clubs and Associations (service clubs, self-help assoc, professional/trade assoc, social clubs), and what are strategies for building relationships? - Motivations: specific interests of the group, community service, business/social concerns of members; Strategies for building relationships: identify potential support in community, join the org if appropriate or approach through a member, discover ways to educate the group about the cause and why it warrants their support, offer appropriate things for the group (meeting space, speakers, etc.) What motivates Businesses (stores, businesses, banks, utilities, etc.)? - civic pride... good citizenship... good of the community... benefits to the business
What are strategies for building relationships with Businesses? (stores, businesses, banks, utilities, etc.)? - nominate local business people for board, establish a businessperson's council, seek in-kind support that serves organizational need than prominently recognize the business, ask business to sponsor an aspect of the org What motivates Corporations to give? - good corporate citizenship, enlightened self interest, executive leadership interest, location, cause-related marketing, employee interest What are strategies for building relationships with Corporations? - establish relationship with employees (board and committee members, etc.)... develop compelling reasons for corporate support that tie to corporate mission/vision... ensure research is comprehensive and effective... write grant proposals What motivates Foundations to give? - community support, sociopolitical concerns, historical roles (e.g. philanthropic interest of founders), seed money for new projects, tax advantages what are strategies for building relationships with Foundations? - research foundation mission/vision/goals... analyze foundation guidelines What motivates workplace solicitations (federated campaigns)? ... like United Way/Susan Komen campaigns at workplaces - demonstrates role as good community partner, because of payroll deductions, provides an efficient way for people to make donations with encouragement of supervisors What are strategies for building relationships for workplace solicitations (federated campaigns)?
- join the local federation as a member agency, apply for discretionary grants, seek participation in a federated donor-option program - either an existing one or a new one made up of similar organizations What motivates Government entities to give? - need to address pressing social problems What are strategies for building relationships with Government entities? - design programs of specific interest to funding agency... complete and submit applications timely thoroughly and in a timely way... engage local (to agency) advocates - counsel and other support... meet with public officials responsible for funding agency... be patient - obtaining govt support can take time What motivates Religious organizations to give? - religious reasons, concern for the public good, charity/compassion, extension of ministry What are strategies for building relationships with Religious organizations? -
determine, authorize and oversee need for funds... determine purpose for and justification of funds to be raised... determine investment strategies and fund managers (as part of their fiduciary responsibilities)... approve fund allocations the board should be your best and most active... - volunteers One of the first questions potential donors will ask is - whether board members/volunteers/staff are committed to the cause Roles of volunteers: - commit gifts to set the pace, participate in solicitations within their means, solicit within their spheres of influence Role of the CEO.. - the chief fundraising officer, responsible for how funds are used, key spokesperson, highly visible in campaign (the face!) Volunteer leadership should give gifts at what level? - their gifts should be at least proportionate to their means. Who is the chief fundraising officer? - the CEO (not the development officer.) Orientation for volunteers (in preparing them for solicitations) should include: - General orientation (intro to org and history, mission, vision, purpose, org's functional areas, campaign plans, case statements) PLUS - extra training in soliciting gifts and campaign specifics (so they are prepared to answer questions, handle objections, and negotiate gift amount.) Staff should provide these types of support for volunteers... - training, campaign materials, teaming volunteers and prospects, reporting successes, preparing letters etc., invitations to cultivation events, gently applied pressure as needed, help as needed. The more we know about an individual's motives, the more likely we can offer - meaningful giving opportunities. According to author James Greenfield, personal solicitation is how much more effective than mail solicitation? - 16 times more effective Telephone solicitation is selectively used to - acquire, renew, and/or upgrade donors (pilot test for effectiveness on a small group first) Telephone solicitation is most effective when used in combination with... -
other methods, e.g. direct mail types of telephone solicitation - volunteer phonathon, paid callers (there are advantages and disadvantages of both) Mail solicitation/direct mail can be effective for renewals, but it's - most impersonal and least efficient for new donors. Giving clubs are best used to - upgrade donors at the top of the low end of annual giving (provides incentive recognition to move donors to higher levels.) Electronic solicitation - ePhilanthropy - is similar experience for solicitor to telephone and direct mail - the only difference is the medium Electronic solicitation - ePhilanthropy - is best integrated with other approaches EFT sustained monthly giving - a payment technique... - automatic transfer of funds from donor's bank to org's bank... an inexpensive and efficient way to collect donations Group solicitation: special events... - purpose: to raise public awareness of org... helps cultivate prospects/donors... requires specific and detailed planning... should not be seen as a major fundraising initiative Regardless of how gift decision is made (spontaneous, responsive, deliberately planned)... every donor will ask these questions... - Who is asking? For how much? Why me? For what purpose? Why now? (any type of solicitation must answer these questions.) Steps for seeking grant support... - always make personal contact firs... then send letter of inquiry (even if not required) If letter of inquiry yields desired results... next step is to write grant proposal to include these elements: - mission, goals, objectives... initial project idea... assessment of need & capability to handle it... alternative approaches (also need to gather info and support... plan and schedule the proposal-writing process) elements of a grant proposal - summary... problem/needs statement... project goals/objectives... methodology for achieving goals/objectives... how the project will be evaluated (important! Must tie to objectives and goals)... budget... any supporting materials required (can be proof of tax exempt, audited
