Your SlideShare is downloading. ×
0
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Kim Klein
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Kim Klein

2,371

Published on

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,371
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
3
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Standard Slide
  • Standard Slide
  • Standard Slide
  • Standard Slide
  • Standard Slide
  • Standard Slide
  • Standard Slide
  • Standard Slide
  • Standard Slide
  • Standard Slide
  • Standard Slide
  • Standard Slide
  • Standard Slide
  • Standard Slide
  • Transcript

    • 1. Getting Started in Fundraising <ul><li>Sponsored by: California Urban and Community Forests Conference </li></ul><ul><li>Presenter: Kim Klein </li></ul><ul><li>Klein and Roth Consulting </li></ul><ul><li>[email_address] </li></ul><ul><li>Kim Klein is the author of five books including the classic, “Fundraising for Social Change” and “Reliable Fundraising in Unreliable Times” which won the McAdam Book Award in 2010. She has provided training and consultation in all 50 states and 21 countries. </li></ul>
    • 2. <ul><li>Overview: The New Normal </li></ul><ul><li>Sept 2011: </li></ul><ul><li>USA is: </li></ul><ul><li>Still in a recession </li></ul><ul><li>Still has very high unemployment </li></ul><ul><li>Nonprofits still looking at deep cuts </li></ul><ul><li>Tax and budget structure problematic </li></ul><ul><li>Lots of competition from other nonprofits </li></ul>www.grassrootsfundraising.org
    • 3. www.grassrootsfundraising.org <ul><li>Nonprofit Sector: Challenges are bigger </li></ul><ul><li>than the economy alone </li></ul><ul><li>Size of Sector </li></ul><ul><li>Scale of need becoming impossible to meet </li></ul><ul><li>Rising costs, particularly health insurance </li></ul><ul><li>Government cutbacks cannot be replaced by private giving </li></ul><ul><li>Nonprofits now compete with public structures for funding </li></ul>
    • 4. <ul><li>There is GOOD NEWS! </li></ul><ul><li>Charitable contributions have risen from just over </li></ul><ul><li>$200 billion in 2000 to more than $302 billion in 2010. </li></ul><ul><li>SOURCES OF GIFTS: </li></ul><ul><li>Living individuals: 75% </li></ul><ul><li>Bequests: 10% </li></ul><ul><li>Foundations 10% </li></ul><ul><li>Corporations 5% </li></ul><ul><li>Most gifts come from income </li></ul><ul><li>Most people have jobs </li></ul>www.grassrootsfundraising.org
    • 5. Most Money Comes from People <ul><li>The vast majority of donations and most money comes from families with incomes of $90,000 or less. </li></ul><ul><li>This is most people. </li></ul>
    • 6. Most People Give Away Money <ul><li>In every country where fundraising and philanthropy have been studied, most people give away money . </li></ul><ul><li>USA 7 out of 10 adults, Canada 8 out of 10, Brazil, 7 out of 10, Holland 9 out of 10, etc. </li></ul><ul><li>People are going to give away their money. They will give it to your organization or another one. </li></ul>
    • 7. <ul><li>Attracting younger donors </li></ul><ul><li>Being creative with technology </li></ul><ul><li>Working with diverse communities </li></ul><ul><li>Starting productive planned giving programs </li></ul><ul><li>Working across the sector to build communities </li></ul><ul><li>that we can be proud of </li></ul>Opportunities for the Next Decade
    • 8. The Eternal Truths About Fundraising
    • 9. People Give When They are Asked <ul><li>And they don’t give when they are not asked. </li></ul><ul><li>Hundreds of studies have verified these truths across age, race and class lines. </li></ul><ul><li>Donors are more likely to remember how they were asked than the name of the organization or the cause to which they donated. </li></ul>
    • 10. Two Rules For Success: <ul><li>A) Ask your most faithful, most loyal people most often </li></ul><ul><li>B) Follow the principle of EXCHANGE </li></ul>
    • 11. Basic Principles <ul><li>1. Fundraising is Mission Driven </li></ul><ul><li>Not: Donor Driven </li></ul><ul><li>Funder Driven </li></ul><ul><li>Cost Driven </li></ul>
    • 12. Making Your Case (Statement ) <ul><li>Why do you exist? </li></ul><ul><li>What do you do? </li></ul><ul><li>What is your track record? </li></ul><ul><li>How much does it cost? </li></ul><ul><li>Where do you get your money? </li></ul><ul><li>Who is involved? </li></ul>
    • 13. You need a short simple message <ul><li>1-2 short sentences, even a phrase </li></ul><ul><li>Easy to remember </li></ul><ul><li>Everyone leads with it </li></ul><ul><li>Statement of belief </li></ul>
    • 14. Sample Message Statements <ul><li>We believe in the power of art to change the world </li></ul><ul><li>(Theater company) </li></ul><ul><li>Because great minds don’t all think alike. </li></ul><ul><li>(School for autistic children ) </li></ul><ul><li>Access to clean water is a human right. </li></ul><ul><li>(World water council) </li></ul>
    • 15. Improve Your Case Statement <ul><li>What needs to be created? </li></ul><ul><li>What needs to be improved? </li></ul><ul><li>Can everyone in your organization say your mission, name 2 accomplishments, state your budget and invite people to give? </li></ul><ul><li>List three tasks you will do to improve your case </li></ul>
    • 16. 2. The Purpose of Fundraising is to Build Relationships Acquire Donors (Impulse) Retain Donors (Habit) Upgrade Donors (Thoughtful) The Most Thoughtful Gift (Bequest)
    • 17. 3. Choose Appropriate Strategies <ul><li>What do you want back for the effort you make? </li></ul><ul><li>Money </li></ul><ul><li>Donors </li></ul><ul><li>Volunteers </li></ul><ul><li>Visibility </li></ul><ul><li>Build Community </li></ul>
    • 18. Ladder of Effectiveness <ul><li>Strategy </li></ul><ul><li>Personal Face to Face Ask </li></ul><ul><li>Personal Phone Call </li></ul><ul><li>Personal Letter </li></ul><ul><li>Phone-a-Thon </li></ul><ul><li>Direct Mail (Acquisition) </li></ul><ul><li>Special Events/on-line </li></ul><ul><li>Response Rate </li></ul><ul><li>50% </li></ul><ul><li>25% </li></ul><ul><li>10-15% </li></ul><ul><li> 5% </li></ul><ul><li> 1% </li></ul><ul><li>Varies </li></ul>Maximum Money Out) (Time In
    • 19. 4. Diversity Creates Financial Health Fees Major Donors Sources/Strategies Fundraising Team Small donors Local Businesses Online Events
    • 20. Start with your own gift <ul><li>Frame every solicitation with the idea of “JOIN ME.” </li></ul><ul><li>The first gift to a campaign needs to be from you, which means your first ask is always successful. </li></ul><ul><li>Your gift needs to be significant to you. </li></ul><ul><li>“ The gift would be considered generous by a peer.” Henry Rosso, founder of The Fund Raising School </li></ul>
    • 21. <ul><li>First time givers </li></ul><ul><li>Goals : </li></ul><ul><li>make the donor feel good about giving </li></ul><ul><li>get a second gift </li></ul><ul><li>Methods: </li></ul><ul><li>Welcoming thank you note </li></ul><ul><li>Social media, newsletter </li></ul><ul><li>Request for another donation </li></ul>Segmenting is Key to Working with Donors www.grassrootsfundraising.org
    • 22. <ul><li>Donor has given more than four times over the course of </li></ul><ul><li>1-3 years </li></ul><ul><li>GOAL: </li></ul><ul><li>the organization is part of the donor’s identity </li></ul><ul><li>donor seeks out information about the organization </li></ul><ul><li>donor is open to being asked for bigger gifts </li></ul><ul><li>Methods: </li></ul><ul><li>Thank you calls </li></ul><ul><li>Invitation to help in some other way </li></ul><ul><li>Personal visit </li></ul>Building Loyalty With your Long Time Donors www.grassrootsfundraising.org
    • 23. <ul><li>Frequency of giving </li></ul><ul><li>Some donors are willing to give several times a year. These </li></ul><ul><li>donors need to be asked several times a year, and encouraged </li></ul><ul><li>to join a monthly donor program. </li></ul><ul><li>Some donors prefer to give once a year and prefer not to be </li></ul><ul><li>asked frequently. Keeping these two categories straight is very important </li></ul>Some people want to give often and some only once a year www.grassrootsfundraising.org
    • 24. Longevity Frequency Size of gift Donors who start out giving big gifts get more attention than those who start with smaller gifts Final Segment: Size of Gift www.grassrootsfundraising.org
    • 25. When to Ask Donors for Bigger Gifts <ul><li>Someone is ready to be asked for an increase in the size of their gift when: </li></ul><ul><li>They have given consistently for three years, and/or </li></ul><ul><li>They have indicated interest in one or more of your programs, and/or </li></ul><ul><li>Someone in your organization knows them and thinks they would be willing to give more </li></ul>Upgrading is critical and is the financial pay-off www.grassrootsfundraising.org
    • 26. <ul><li>In your data base, take your top 50-100 donors and note for each one: </li></ul><ul><li>NEXT STEP: </li></ul><ul><li>WHO IS RESPONSIBLE? </li></ul><ul><li>MISSING INFORMATION: </li></ul><ul><li>Review these donors weekly </li></ul>Always Know Who You Should Be Asking Next www.grassrootsfundraising.org
    • 27. Quality of List is Key <ul><li>Three kinds of prospects: </li></ul><ul><li>“ HOT” </li></ul><ul><li>people who know your group AND care about your cause (current donors, volunteers, etc.) </li></ul><ul><li>“ WARM” </li></ul><ul><li>people who know your group OR care about your cause (previous donors, alumni, or donors to similar orgs) </li></ul><ul><li>“ COLD” </li></ul><ul><li>we know nothing about these people </li></ul><ul><li>FOCUS ON “WARM” AND “HOT” LISTS </li></ul>
    • 28. First year donor letter elements <ul><li>Dear _____, </li></ul><ul><li>You recently made a gift to help us …. </li></ul><ul><li>An update on that effort: </li></ul><ul><li>Thank you again! </li></ul><ul><li>I am writing today to let you know about a special project that we have a chance to do right at the beginning of this year. We can (describe) ___________________. </li></ul><ul><li>We need to raise an additional $35,000 to complete this, and are hoping that some of our current donors can stretch and make an extra gift to help us? </li></ul><ul><li>Is that possible for you? A gift of $50, $35, $100—anything will help meet this need. </li></ul>
    • 29. The most likely giver is someone who has given already <ul><li>Focus on retaining donors </li></ul><ul><li>Send a thank you note within 72 hours </li></ul><ul><li>Enter the donation in a database </li></ul><ul><li>Personalize whenever possible </li></ul><ul><li>Send the donor some kind of information at least 4 times a year: newsletter, Annual Report, special appeals </li></ul>
    • 30. Writing thank you notes <ul><li>Dear Ms. First time giver, </li></ul><ul><li>Thank you so much for your gift of $50.00! Your gift will be put right to work doing…. </li></ul><ul><li>Just today I learned ….. </li></ul><ul><li>Soon you will receive our quarterly newsletter, and we …. </li></ul><ul><li>Please feel free to contact me …. </li></ul>
    • 31. Writing thank you notes <ul><li>Dear Long Time Giver, </li></ul><ul><li>Thank you so much for your most recent donation of $500. It is being put right to work doing…. </li></ul><ul><li>As you know, we rely on donors like you for … </li></ul><ul><li>This fall we are having an …. and we hope you can join us. </li></ul>
    • 32. <ul><li>Repeat Donors: </li></ul><ul><li>Someone who has given more than once, but </li></ul><ul><li>less than three or four times </li></ul><ul><li>Goal: </li></ul><ul><li>the donor is proud of the organization </li></ul><ul><li>the donor likes giving to this organization </li></ul><ul><li>Methods: </li></ul><ul><li>Thank you notes for each gift </li></ul><ul><li>Invitation to a Gift Club, such as Monthly Donor Club </li></ul><ul><li>Newsletter </li></ul><ul><li>Special Event </li></ul>Create Habitual Donors www.grassrootsfundraising.org
    • 33. <ul><li>Donors who have given are most likely to keep giving. Donors who give $100-$1000 are most able and likely to do that again. Understand that your loyal donors create your most predictable income stream </li></ul>Focus on Donors With Stable Incomes www.grassrootsfundraising.org
    • 34. The Future of Acquisition is Online <ul><li>Prominent GIVE NOW icon </li></ul><ul><li>Drop down menus with options </li></ul><ul><li>Facebook presence </li></ul><ul><li>Organizational blog </li></ul><ul><li>Pictures and stories </li></ul><ul><li>Ways for people to respond </li></ul><ul><li>Always up to date </li></ul>
    • 35. <ul><li>Nothing takes the place of face to face asking </li></ul>One Thing Will Never Change: Personal face to face Asking will always be the most successful strategy www.grassrootsfundraising.org
    • 36. Four Tips For Successful Asking <ul><li>1. Success is asking </li></ul><ul><li>Fundraising is a volume business. You have to ask way more people than the number of donors you need. </li></ul><ul><li>Tip: Create a visual, such as a thermometer, which shows </li></ul><ul><li># of asks completed </li></ul>
    • 37. Four Tips, Cont. <ul><li>2. Be OK with NO </li></ul><ul><li>People say no. Their “no” has nothing to do with you. People say no because: </li></ul><ul><li>They have too much else on their minds </li></ul><ul><li>They have given already to someone else </li></ul><ul><li>They don’t have the money </li></ul>
    • 38. Four Tips, cont. <ul><li>3. Believe in your cause </li></ul><ul><li>What you believe in must be bigger than what you are afraid of. </li></ul><ul><li>Why are you doing this? </li></ul><ul><li>What children, animals, trees will be better off? </li></ul><ul><li>What beauty or knowledge will be created? </li></ul><ul><li>What profound social problem will be addressed? </li></ul><ul><li>Pick an image of your work and lead with that. </li></ul>
    • 39. Four Tips, cont. <ul><li>4. Ask some people. Don’t ask everyone. </li></ul><ul><li>In general, don’t ask people who </li></ul><ul><li>work for you, </li></ul><ul><li>you know will give only so that they can ask you for their cause, </li></ul><ul><li>owe you a favor, </li></ul><ul><li>you don’t like, </li></ul><ul><li>really don’t want to </li></ul>
    • 40. Asking requires a team of askers <ul><li>Successful fundraising requires help from a variety of people willing to ask friends, colleagues, strangers and give themselves. </li></ul><ul><li>Ideally this group includes the Board. </li></ul>
    • 41. Fundamental Rules for Boards <ul><li>Board members must: </li></ul><ul><li>1. Test the proposition that the organization is worth supporting by asking themselves, “Would I give?” </li></ul><ul><li>And answering a resounding “YES!” </li></ul><ul><li>2. Board members must then take that proposition out into the community and ask “Would you give?” </li></ul>
    • 42. Every Board Member Has A Plan <ul><li>I, Betty Lou Board Member , will: </li></ul><ul><li>Give $1000 before November 1. </li></ul><ul><li>Help raise $5000 by hosting a house party at my house in May. </li></ul><ul><ul><li>GOAL: 20 new donors @ $100-250 each </li></ul></ul><ul><li>Work on annual general meeting . </li></ul><ul><li>I prefer not to: </li></ul><ul><li>Participate in the phone-a-thon </li></ul><ul><li>I will not: </li></ul><ul><li>Come to the auction—sick of those! </li></ul>
    • 43. Reward Good Behavior <ul><li>All work is time limited: as little as a few hours to as much as eight weeks. Everything has a beginning date, a goal and an end date. </li></ul><ul><li>The reward for doing your work is a break. </li></ul>
    • 44. Donors have been trained to be obsessed with how you spend money. <ul><li>Post your budget and your financials on your website. </li></ul><ul><li>Provide a narrative explanation of numbers </li></ul><ul><li>Have an e-mail address people can write to if they have questions (and be sure someone answers these inquiries) </li></ul><ul><li>Make sure your board members can answer financial and program questions </li></ul>Seek out Ways to Boost Public Confidence in Your Organization www.grassrootsfundraising.org
    • 45. My plan for the fourth quarter of 2011 <ul><li>Answer these questions by yourself: </li></ul><ul><li>What is the ONE thing YOU could do that would make a big difference in the fundraising efforts of your organization? </li></ul><ul><li>What do you want to accomplish before the end of May? </li></ul><ul><li>What do you want to accomplish in the next month? </li></ul>
    • 46. Helpful Resources from Kim Klein <ul><li>Magazine and e-newsletter </li></ul><ul><li>Grassroots Fundraising Journal </li></ul><ul><li>www.grassrootsfundraising.org </li></ul><ul><li>Books by Kim Klein </li></ul><ul><li>Reliable Fundraising in Unreliable Times </li></ul><ul><li>Fundraising for Social Change </li></ul><ul><li>Other recommended books: </li></ul><ul><li>Working Across Generations by Robby Rodriquez, Frances Kunreuther and Helen Kim </li></ul><ul><li>Accidental Fundraiser by Stephanie Roth and Mimi Ho </li></ul><ul><li>Order from www.josseybass.com or your local bookstore </li></ul>

    ×