Kim Klein

Getting Started in Fundraising
Sponsored by: California Urban and Community Forests Conference
Presenter: Kim Klein
Klein and Roth Consulting
[email_address]
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.

Overview: The New Normal
Sept 2011:
USA is:
Still in a recession
Still has very high unemployment
Nonprofits still looking at deep cuts
Tax and budget structure problematic
Lots of competition from other nonprofits
www.grassrootsfundraising.org

Nonprofit Sector: Challenges are bigger
than the economy alone
Size of Sector
Scale of need becoming impossible to meet
Rising costs, particularly health insurance
Government cutbacks cannot be replaced by private giving
Nonprofits now compete with public structures for funding

There is GOOD NEWS!
Charitable contributions have risen from just over
$200 billion in 2000 to more than $302 billion in 2010.
SOURCES OF GIFTS:
Living individuals: 75%
Bequests: 10%
Foundations 10%
Corporations 5%
Most gifts come from income
Most people have jobs

Most Money Comes from People
The vast majority of donations and most money comes from families with incomes of $90,000 or less.
This is most people.

Most People Give Away Money
In every country where fundraising and philanthropy have been studied, most people give away money .
USA 7 out of 10 adults, Canada 8 out of 10, Brazil, 7 out of 10, Holland 9 out of 10, etc.
People are going to give away their money. They will give it to your organization or another one.

Attracting younger donors
Being creative with technology
Working with diverse communities
Starting productive planned giving programs
Working across the sector to build communities
that we can be proud of
Opportunities for the Next Decade

The Eternal Truths About Fundraising

People Give When They are Asked
And they don’t give when they are not asked.
Hundreds of studies have verified these truths across age, race and class lines.
Donors are more likely to remember how they were asked than the name of the organization or the cause to which they donated.

Two Rules For Success:
A) Ask your most faithful, most loyal people most often
B) Follow the principle of EXCHANGE

Basic Principles
1. Fundraising is Mission Driven
Not: Donor Driven
Funder Driven
Cost Driven

Making Your Case (Statement )
Why do you exist?
What do you do?
What is your track record?
How much does it cost?
Where do you get your money?
Who is involved?

You need a short simple message
1-2 short sentences, even a phrase
Easy to remember
Everyone leads with it
Statement of belief

Sample Message Statements
We believe in the power of art to change the world
(Theater company)
Because great minds don’t all think alike.
(School for autistic children )
Access to clean water is a human right.
(World water council)

Improve Your Case Statement
What needs to be created?
What needs to be improved?
Can everyone in your organization say your mission, name 2 accomplishments, state your budget and invite people to give?
List three tasks you will do to improve your case

2. The Purpose of Fundraising is to Build Relationships Acquire Donors (Impulse) Retain Donors (Habit) Upgrade Donors (Thoughtful) The Most Thoughtful Gift (Bequest)

3. Choose Appropriate Strategies
What do you want back for the effort you make?
Money
Donors
Volunteers
Visibility
Build Community

Ladder of Effectiveness
Strategy
Personal Face to Face Ask
Personal Phone Call
Personal Letter
Phone-a-Thon
Direct Mail (Acquisition)
Special Events/on-line
Response Rate
50%
25%
10-15%
5%
1%
Varies
Maximum Money Out) (Time In

4. Diversity Creates Financial Health Fees Major Donors Sources/Strategies Fundraising Team Small donors Local Businesses Online Events

Start with your own gift
Frame every solicitation with the idea of “JOIN ME.”
The first gift to a campaign needs to be from you, which means your first ask is always successful.
Your gift needs to be significant to you.
“ The gift would be considered generous by a peer.” Henry Rosso, founder of The Fund Raising School

First time givers
Goals :
make the donor feel good about giving
get a second gift
Methods:
Welcoming thank you note
Social media, newsletter
Request for another donation
Segmenting is Key to Working with Donors www.grassrootsfundraising.org

Donor has given more than four times over the course of
1-3 years
GOAL:
the organization is part of the donor’s identity
donor seeks out information about the organization
donor is open to being asked for bigger gifts
Methods:
Thank you calls
Invitation to help in some other way
Personal visit
Building Loyalty With your Long Time Donors www.grassrootsfundraising.org

Frequency of giving
Some donors are willing to give several times a year. These
donors need to be asked several times a year, and encouraged
to join a monthly donor program.
Some donors prefer to give once a year and prefer not to be
asked frequently. Keeping these two categories straight is very important
Some people want to give often and some only once a year www.grassrootsfundraising.org

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

When to Ask Donors for Bigger Gifts
Someone is ready to be asked for an increase in the size of their gift when:
They have given consistently for three years, and/or
They have indicated interest in one or more of your programs, and/or
Someone in your organization knows them and thinks they would be willing to give more
Upgrading is critical and is the financial pay-off www.grassrootsfundraising.org

In your data base, take your top 50-100 donors and note for each one:
NEXT STEP:
WHO IS RESPONSIBLE?
MISSING INFORMATION:
Review these donors weekly
Always Know Who You Should Be Asking Next www.grassrootsfundraising.org

Quality of List is Key
Three kinds of prospects:
“ HOT”
people who know your group AND care about your cause (current donors, volunteers, etc.)
“ WARM”
people who know your group OR care about your cause (previous donors, alumni, or donors to similar orgs)
“ COLD”
we know nothing about these people
FOCUS ON “WARM” AND “HOT” LISTS

First year donor letter elements
Dear _____,
You recently made a gift to help us ….
An update on that effort:
Thank you again!
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) ___________________.
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?
Is that possible for you? A gift of $50, $35, $100—anything will help meet this need.

The most likely giver is someone who has given already
Focus on retaining donors
Send a thank you note within 72 hours
Enter the donation in a database
Personalize whenever possible
Send the donor some kind of information at least 4 times a year: newsletter, Annual Report, special appeals

Writing thank you notes
Dear Ms. First time giver,
Thank you so much for your gift of $50.00! Your gift will be put right to work doing….
Just today I learned …..
Soon you will receive our quarterly newsletter, and we ….
Please feel free to contact me ….

Writing thank you notes
Dear Long Time Giver,
Thank you so much for your most recent donation of $500. It is being put right to work doing….
As you know, we rely on donors like you for …
This fall we are having an …. and we hope you can join us.

Repeat Donors:
Someone who has given more than once, but
less than three or four times
Goal:
the donor is proud of the organization
the donor likes giving to this organization
Methods:
Thank you notes for each gift
Invitation to a Gift Club, such as Monthly Donor Club
Newsletter
Special Event
Create Habitual Donors www.grassrootsfundraising.org

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
Focus on Donors With Stable Incomes www.grassrootsfundraising.org

The Future of Acquisition is Online
Prominent GIVE NOW icon
Drop down menus with options
Facebook presence
Organizational blog
Pictures and stories
Ways for people to respond
Always up to date

Nothing takes the place of face to face asking
One Thing Will Never Change: Personal face to face Asking will always be the most successful strategy www.grassrootsfundraising.org

Four Tips For Successful Asking
1. Success is asking
Fundraising is a volume business. You have to ask way more people than the number of donors you need.
Tip: Create a visual, such as a thermometer, which shows
# of asks completed

Four Tips, Cont.
2. Be OK with NO
People say no. Their “no” has nothing to do with you. People say no because:
They have too much else on their minds
They have given already to someone else
They don’t have the money

Four Tips, cont.
3. Believe in your cause
What you believe in must be bigger than what you are afraid of.
Why are you doing this?
What children, animals, trees will be better off?
What beauty or knowledge will be created?
What profound social problem will be addressed?
Pick an image of your work and lead with that.

Four Tips, cont.
4. Ask some people. Don’t ask everyone.
In general, don’t ask people who
work for you,
you know will give only so that they can ask you for their cause,
owe you a favor,
you don’t like,
really don’t want to

Asking requires a team of askers
Successful fundraising requires help from a variety of people willing to ask friends, colleagues, strangers and give themselves.
Ideally this group includes the Board.

Fundamental Rules for Boards
Board members must:
1. Test the proposition that the organization is worth supporting by asking themselves, “Would I give?”
And answering a resounding “YES!”
2. Board members must then take that proposition out into the community and ask “Would you give?”

Every Board Member Has A Plan
I, Betty Lou Board Member , will:
Give $1000 before November 1.
Help raise $5000 by hosting a house party at my house in May.
GOAL: 20 new donors @ $100-250 each
Work on annual general meeting .
I prefer not to:
Participate in the phone-a-thon
I will not:
Come to the auction—sick of those!

Reward Good Behavior
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.
The reward for doing your work is a break.

Donors have been trained to be obsessed with how you spend money.
Post your budget and your financials on your website.
Provide a narrative explanation of numbers
Have an e-mail address people can write to if they have questions (and be sure someone answers these inquiries)
Make sure your board members can answer financial and program questions
Seek out Ways to Boost Public Confidence in Your Organization www.grassrootsfundraising.org

My plan for the fourth quarter of 2011
Answer these questions by yourself:
What is the ONE thing YOU could do that would make a big difference in the fundraising efforts of your organization?
What do you want to accomplish before the end of May?
What do you want to accomplish in the next month?

Helpful Resources from Kim Klein
Magazine and e-newsletter
Grassroots Fundraising Journal
Books by Kim Klein
Reliable Fundraising in Unreliable Times
Fundraising for Social Change
Other recommended books:
Working Across Generations by Robby Rodriquez, Frances Kunreuther and Helen Kim
Accidental Fundraiser by Stephanie Roth and Mimi Ho
Order from www.josseybass.com or your local bookstore

Kim Klein

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