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. Fundraising is the gentle
art of teaching the joy of
giving.
- Hank Rosso

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. 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. 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. 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. 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. 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. 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. 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. 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. The Development Process
Planned Gift
Linkage Big Gift
Involvement Major
Advocacy Special Gift
Upgraded Donor
------------------------------------------------
Repeat Donor Linkage
Donor Ability
Prospect Interest

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. Planned Gift Donor
Capital Donor
Special/Major
Gift Donor
Renew/Upgraded Donor
First Time Donor
Universe of Prospects

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. 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. 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. 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. 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. THE EIGHT STEP MAJOR GIFT MANAGEMENT CYCLE
IDENTIFY
RENEW
QUALIFY
DEVELOP
STEWARDSHIP
STRATEGY
ACKNOWLEDGE CULTIVATE
SOLICIT AND NEGOTIATE

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. 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. 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. 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. $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. Annual Fund Gift Range Chart
$500,000 Goal

27. Writing the Development Plan
Developing Strategies
Income and Expense Budgets
Organizational Infrastructure and
Resources (Who will do what)
Timeline
Communications and Evaluation

28. “You make a living by what you get.
You make a life by what you give.”
Winston Churchill