Boards and Fundraising
               Carole J. Pence, MI
                    President
                Pence Consulting
 ...
Fundraising is the gentle
art of teaching the joy of
          giving.
        - Hank Rosso
The Fund Raising Cycle
                Starts with Awareness of Marketing Principles
                             Examine ...
2007 CONTRIBUTIONS:
           $306.39 BILLION
    BY SOURCE OF CONTRIBUTION

                            Corporations
   ...
2007 CONTRIBUTIONS:
                 $306.39 BILLION BY
          TYPE OF RECIPIENT ORGANIZATION
    International   Found...
Case Components                 Page 1 of 2




Case Components    Must Articulate
 Mission            Awareness, insight ...
Page 2 of 2




Case Components          Must Articulate
 Facilities, Equipment   Advantages, Strengths,
                 ...
Case Questions
Why does the organization exist?
What services do you provide o meet the
need or solve the problem?
Why sho...
Market Validation
If the fundraising markets do not
understand the importance of the needs
being address you will have dif...
Some Important Definitions
Cultivation is a method of making
prospects aware of the need for an
organization’s services an...
Thinking Like A Donor
Donor’s want to feel like they are investing
in a cause rather than giving their money
away.
Having ...
The Development Process

                                 Planned Gift
Linkage                      Big Gift
Involvement  ...
The Development Process
Identify Prospects
Qualify prospects
Convert Prospects into donors
Increase their last gift
Secure...
Planned Gift Donor

    Capital Donor

  Special/Major
   Gift Donor

Renew/Upgraded Donor

 First Time Donor

Universe of...
Ladder of Effectiveness

Personal: face-to-face (team of two or
           face-to-
one person with relationship)
Personal...
Ladder of Effectiveness

Telephone solicitation
Impersonal e-mail solicitation
           e-
Impersonal letter/direct mail...
Thinking Like A Donor
Some donors want financial information, annual
reports, basically facts and figures.
Others want a r...
The Reason for an Annual Fund
Establish the habit of giving
Basis for Planned Giving
Inform donors annually about your
suc...
Hierarchy of Effectiveness
    Why Board Members need to be
       involved in Fundraising
Askers Relationship with Prospe...
THE EIGHT STEP MAJOR GIFT MANAGEMENT CYCLE

                        IDENTIFY

              RENEW
                        ...
Basic Board Responsibilities
Manage Resources Effectively
Determine, Monitor, and Strengthen the
Organization’s Programs a...
Individual Board Members
            Responsibilities
Attend all board and committee meetings and
functions, such as speci...
Board Members and Fundraising
Carrying out fiduciary responsibilities.
Agree on the campaign goals,
objectives and case fo...
Writing the Development Plan
Philanthropic Vision
Situation Analysis (Strength, Weaknesses,
Opportunities, and Threats)
Mi...
$150,000
Gift Range                                                            Subtotal                Cumulative total
  ...
Annual Fund Gift Range Chart
       $500,000 Goal
Writing the Development Plan
Developing Strategies
Income and Expense Budgets
Organizational Infrastructure and
Resources ...
“You make a living by what you get.
 You make a life by what you give.”

         Winston Churchill
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Carole Pence Boards And Fundraising

  1. 1. Boards and Fundraising Carole J. Pence, MI President Pence Consulting 906 228 2972 cpence@aol.com www.penceconsulting.com Indiana University, The Fund Raising School Material Used With Permission
  2. 2. Fundraising is the gentle art of teaching the joy of giving. - Hank Rosso
  3. 3. The Fund Raising Cycle Starts with Awareness of Marketing Principles Examine the Case Define Objectives Renew the Gift Prepare Needs Solicit the Statement Gift Expand Analyze Market Volunteer Corps Requirements Prepare Involve Communication plan Volunteers Prepare Fund Validate Needs Raising Plan Statements Evaluate Gift Identify Potential Giving Sources Select Fund Market Raising Vehicle
  4. 4. 2007 CONTRIBUTIONS: $306.39 BILLION BY SOURCE OF CONTRIBUTION Corporations Foundations $15.619 $38.52 Bequests 5.5 12.6% $23.15 7.6% Individuals Individuals $222.89 $229.03 74.8% 75.6% Source: Giving USA Foundation™ / Giving USA 2008
  5. 5. 2007 CONTRIBUTIONS: $306.39 BILLION BY TYPE OF RECIPIENT ORGANIZATION International Foundations Unallocated affairs giving $27.73 $13.22 $23.67 9.1% 7.7% 4.3% Religion $102.32 Environment 33.4% $6.96 2.3% Public-society Education benefit Human Services $43.32 $22.65 $29.64 14.1 % 7.4% 9.7% Arts, culture, and humanities $13.67 4.5% Source: Giving USA Foundation™ / Giving USA 2008 Foundation™
  6. 6. Case Components Page 1 of 2 Case Components Must Articulate Mission Awareness, insight to problem Goals Desired achievement Objectives What’s in place Programs Service to people (stories) Governing Board Character, quality of organization Staffing Qualifications, strengths
  7. 7. Page 2 of 2 Case Components Must Articulate Facilities, Equipment Advantages, Strengths, Effectiveness Finances Validate Need for Philanthropy Planning, Evaluation Documents, Commitments, Strengths, Impact History Heroic Saga, Credibility
  8. 8. Case Questions Why does the organization exist? What services do you provide o meet the need or solve the problem? Why should prospective donors (individuals, corporations, foundations) provide gifts? What benefits do donors get for giving?
  9. 9. Market Validation If the fundraising markets do not understand the importance of the needs being address you will have difficulty fundraising. If the market doesn’t know what the nonprofit needs or that it even exists it is almost impossible to raise money.
  10. 10. Some Important Definitions Cultivation is a method of making prospects aware of the need for an organization’s services and for their support. Donor acquisition is the organization’s way of saying the solicitation was successful and we acquired a new donor. Donor appreciation: Expressing thanks!
  11. 11. Thinking Like A Donor Donor’s want to feel like they are investing in a cause rather than giving their money away. Having made a decision to give, a donor wants to believe that everyone in the organization knows who they are and what they did to support the cause.
  12. 12. The Development Process Planned Gift Linkage Big Gift Involvement Major Advocacy Special Gift Upgraded Donor ------------------------------------------------ Repeat Donor Linkage Donor Ability Prospect Interest
  13. 13. The Development Process Identify Prospects Qualify prospects Convert Prospects into donors Increase their last gift Secure special gift (amount will vary) Secure major gift ($5,000, $10,000, 1,000,000) Secure big gift….biggest lifetime gift (one time) Secure planned gift
  14. 14. Planned Gift Donor Capital Donor Special/Major Gift Donor Renew/Upgraded Donor First Time Donor Universe of Prospects
  15. 15. Ladder of Effectiveness Personal: face-to-face (team of two or face-to- one person with relationship) Personal letter (on stationary with telephone follow-up) follow- Personal telephone call (with mail follow- follow-up) Personalize letter Personal e-mail solicitation e-
  16. 16. Ladder of Effectiveness Telephone solicitation Impersonal e-mail solicitation e- Impersonal letter/direct mail Impersonal telephone/telemarketing Fund raising benefit/special event Door-to- Door-to-door Media/advertising
  17. 17. Thinking Like A Donor Some donors want financial information, annual reports, basically facts and figures. Others want a relationship with the organization and to feel a part of a worthy cause. These types of donors want stories and pictures. Another may want the bottom line, what do you want from me; what will I get; and how much. A bullet point presentation. But all donors want respect, kindness, and appreciation.
  18. 18. The Reason for an Annual Fund Establish the habit of giving Basis for Planned Giving Inform donors annually about your successes and accomplishments Renew commitments from donors Develop new donors for donor base Stewardship opportunity
  19. 19. Hierarchy of Effectiveness Why Board Members need to be involved in Fundraising Askers Relationship with Prospect Peer/volunteer Askers Level of Giving Same as Prospect Shared Qualities Economic status Mutual Respect Social Position Interest in Organization Career Status
  20. 20. THE EIGHT STEP MAJOR GIFT MANAGEMENT CYCLE IDENTIFY RENEW QUALIFY DEVELOP STEWARDSHIP STRATEGY ACKNOWLEDGE CULTIVATE SOLICIT AND NEGOTIATE
  21. 21. Basic Board Responsibilities Manage Resources Effectively Determine, Monitor, and Strengthen the Organization’s Programs and Services Enhance the Organization’s Public Standing Ensure Legal and Ethical Integrity and Maintain Accountability Recruit and Orient New Board Members and Assess Board Performance
  22. 22. Individual Board Members Responsibilities Attend all board and committee meetings and functions, such as special events. Be informed about the organization’s mission, services, policies and programs. Review agenda and supporting materials prior to board meetings. Serve on committees or task force. Make a personal financial contribution. Inform others about the organization.
  23. 23. Board Members and Fundraising Carrying out fiduciary responsibilities. Agree on the campaign goals, objectives and case for support. Approve the Fund Development Plan. Identify and assist with prospect research. Solicit appropriate people for gifts. Steward donors who give.
  24. 24. Writing the Development Plan Philanthropic Vision Situation Analysis (Strength, Weaknesses, Opportunities, and Threats) Mission Statement and Case for Support Identification and Analysis of Markets Financial Ability to Raise Funds Selecting Donors
  25. 25. $150,000 Gift Range Subtotal Cumulative total No. Gifts No. Prospects Cumulative required requi percenta red ge $15,000.00 1 4 $15,000.00 $15,000.00 10% $12,000.00 1 4 $12,000.00 $27,000.00 18% $7,500.00 2 8 $15,000.00 $42,000.00 28% $5,300.00 3 12 $15,900.00 $57,900.00 39% $4,200.00 3 12 $12,600.00 $70,500.00 47% $3,400.00 5 20 $17,000.00 $87,500.00 58% $3,000.00 7 28 $21,000.00 $108,500.00 72% $2,300.00 7 28 $16,100.00 $124,600.00 83% $1,500.00 10 40 $15,000.00 $139,600.00 93% Under $1,500.00 13 55 $10,400.00 $150,000.00 100% Totals 52 208 $150,000.00
  26. 26. Annual Fund Gift Range Chart $500,000 Goal
  27. 27. Writing the Development Plan Developing Strategies Income and Expense Budgets Organizational Infrastructure and Resources (Who will do what) Timeline Communications and Evaluation
  28. 28. “You make a living by what you get. You make a life by what you give.” Winston Churchill
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