What Every Ceo Needs To Know 11 08

What Every Nonprofit CEO Needs to Know About Fundraising A workshop with Mal Warwick 15 th Eastern Africa Resource Mobilisation Workshop Sarova White Sands Beach Resort Mombasa, Kenya, 24-25 November 2008 Copyright © 2008 by Mal Warwick

How many legs on this elephant?

In this session . . .
The strategic role of fundraising
Where does money come from?
Why do donors give?
Fundraising techniques
Roles of board, staff, volunteers

1) Strategic role of fundraising

Resource mobilisation
Enabling environment
Public opinion
Staffing
Volunteers
Fees for service
Revenue generation
Government funding
Philanthropic support
= fundraising

Why fundraising?
Generate essential funds
Meet growing needs
Demonstrate broad support
Ensure continuity
Raise the organisation’s profile
Educate the public about your issues

Cornerstones of nonprofit success Vision & mission Programs Staff & volunteers Funding 1 2 3 4 Your organisation

Stages of development Decline Stability Late growth Early growth Launch

Take stock
At what stage is your organisation?
What is your principal fundraising strategy?

2) Where does money come from?

The global picture Source: Lester Salamon, Global Civil Society

Two sources of philanthropic funds Institutions Individuals

Individual fundraising: globally

Giving USA 2008 = $306B Foundations $39B 13% Bequests $23B 8% Corporations $16B 5% Source: Giving USA Foundation ™ / Giving USA 2008 Individuals $229B 75%

The Tale of the Lake, the Pond, and the Stream

The Lake

The Pond

The Stream

The Four Phases of Fundraising Investment  Legacies Involvement  Upgrades Interest  Renewal Identification  “Acquisition”

The Six Gifts Money Time Goods Information Voice Influence

Donors are multi-dimensional Bequest Donor Monthly Donor User of Services Bike-a-Thon Participant Board Member Volunteer Staff Retiree Letter- Writer Activist Each Donor

3) Why do donors give?

Maslow’s Hierarchy of Human Needs

The principal sources of motivation Heart Mind Spirit

Why do people give?
“ I believe in your cause.”
“ I want to make a difference.”
“ Your work responds to my spiritual needs.”
“ It’s gratifying to be part of your work.”
“ I know you, or I know your leader.”
“ I have benefited from your services.”
“ You said ‘Thank you’ the last time I gave.”
“ You asked me!”

Why do people not give?
“ You didn’t ask me.”
“ I don’t have any money now.”
“ I just don’t trust your organization.”
“ Your organization doesn’t spend money wisely.”
“ I don’t share your values.”
“ You didn’t ask me in the right way.”
“ I give to other charities.”
“ I was in a bad mood.”

Pop Quiz! What do donors want the most, and what happens when they don’t get it?

Pop Quiz!
Research shows donors’ #1 desire is:
Free gifts
A personal visit from the chief executive
Prompt acknowledgment of their gifts
Newspaper ads listing their names
Invitations to special donor parties

Pop Quiz!
Research shows donors’ #2 desire is:
Newspaper ads listing their names
Free gifts
Personal visits from board members
Information about how their gifts were used
Sex

So, what do donors really want?
Treatment as human beings, not statistics
Kindness and courtesy in all contacts
Appreciation for their contributions
Recognition that they are virtual partners
Information that inspires their trust

And when they don’t get these things . . . ?

Donor attrition: Year 1

4) Fundraising techniques

Principal fundraising techniques
Special events
Direct response
Major gifts
Legacies
Trusts and foundations
Corporations

Direct response fundraising
Street
Direct mail
Donor acquisition
Donor renewal
Special appeal
Telemarketing
Online
SMS
DRTV

Individual sources
Membership dues
Annual gifts
Regular or monthly gifts
One-off gifts
Major gifts
Legacies

Take stock
Which techniques do you use?
Which are possible for your organisation?

Act on the Pareto Principle 20% 80% Number of donors 20% 80% % of revenue

5) Roles of board, staff, volunteers

Fundraising responsibilities NO ? YES YES Corps NO ? YES YES Trusts NO YES YES YES Legacies ? ? YES YES Major gifts ? NO YES NO Direct ? YES YES YES Events Pros Volunteers Staff Board What

Take stock
Is your board involved in fundraising?
Do you have staff capacity for direct response?
Do you require professional help—and can you get it?

Free monthly e-newsletter!
Just give me your business card

Time for questions now!
For more information, contact:
Mal Warwick Associates
2550 Ninth Street, Suite 103
Berkeley, CA 94710-2551
Phone +1 (510) 843-8888
Email [email_address]
Web www.malwarwick.com

What Every Ceo Needs To Know 11 08

by Mal Warwick on Dec 16, 2008

Accessibility

Categories

Upload Details

Usage Rights

Statistics

What Every Ceo Needs To Know 11 08 — Presentation Transcript