Kansas Main Street Part 1: Fundraising 101

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The 1st of a three part, day-long training provided for the Kansas State Commerce Department's Main Street Program on April 8 in Phillipsburg, KS.

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  • 3 Source of Funds Statistical Source: AAFRC.org "2003 Contributors"
  • Kansas Main Street Part 1: Fundraising 101

    1. 1. Fundraising 101 Everything you wanted to know about asking for money but were afraid to ask Marc A. Pitman www.FundraisingCoach.com Kansas Main Streets
    2. 2. Fundraising 101
    3. 3. Goals for this Session <ul><li>the only 3 types of communication you'll need </li></ul><ul><li>how many times to say “thank you” between solicitations </li></ul><ul><li>the difference between annual funds, capital campaigns, and endowments </li></ul><ul><li>a simple model for your setting up a fundraising effort </li></ul>
    4. 4. This is the big picture basics! <ul><li>It’ll be O.K. </li></ul>
    5. 5. This is the big picture basics! <ul><li>It’ll be O.K. </li></ul><ul><li>You can do it. </li></ul>
    6. 6. Constant Tension <ul><li>90% - 10% </li></ul><ul><li>But must BROAD range of givers so losing one is no great loss </li></ul>
    7. 7. 3 Source of Funds: Giving USA 2006
    8. 8. 3 Types of Communication <ul><li>Cultivation </li></ul><ul><li>Solicitation </li></ul><ul><li>Stewardship </li></ul>
    9. 9. Cultivation <ul><li>the 2 local business owners </li></ul><ul><li>educating </li></ul><ul><li>dating </li></ul>
    10. 10. Solicitation <ul><li>#1 reason people don’t give? </li></ul><ul><ul><li>They're not asked! </li></ul></ul>
    11. 11. Solicitation <ul><li>#1 reason people don’t give? </li></ul><ul><ul><li>They're not asked! </li></ul></ul><ul><li>Upgrade </li></ul><ul><ul><li>one client started asking $1000 donors if they’d move up to the $2500 category. Many did! </li></ul></ul><ul><ul><li>Don’t feel compelled to justify the ask for more in a transactional sense. FR isn’t a business transaction. </li></ul></ul>
    12. 12. Stewardship <ul><li>Say “thank you” 7 times between asks (so go for multi-year pledges!) </li></ul>
    13. 13. How about other communication like phone calls? <ul><li>one client wanted to make phone calls to </li></ul><ul><ul><li>Survey about a new mailing strategy </li></ul></ul><ul><ul><li>Ask for a gift </li></ul></ul><ul><ul><li>Ask if there were anything that the person being called would like prayer for </li></ul></ul>
    14. 14. How about other communication like phone calls? <ul><li>one client wanted to make phone calls to </li></ul><ul><ul><li>Survey about a new mailing strategy </li></ul></ul><ul><ul><li>Ask for a gift </li></ul></ul><ul><ul><li>Ask if there were anything that the person being called would like prayer for </li></ul></ul><ul><li>I help my clients prune their purpose. I advised deciding on ONE purpose for the call </li></ul><ul><ul><li>multiple choices confuse the caller and the called </li></ul></ul><ul><ul><li>it's fine if they all happen in the same call—just be sure to have one reason for calling </li></ul></ul>
    15. 15. 3 Types of Fundraising Goals <ul><li>Annual </li></ul><ul><li>Capital </li></ul><ul><li>Endowment </li></ul>
    16. 16. AF/Operating <ul><li>The most important </li></ul><ul><li>often involves direct mail, phonathons, and other annual “-athons” (walkathons, bikeathons, etc.) </li></ul><ul><li>keep this as unrestricted as possible </li></ul>
    17. 17. Endowment <ul><li>The keel of the ship, it helps you weather tough times </li></ul><ul><li>Funds invested with only a portion of the interest thrown off used as income </li></ul><ul><li>Be careful to not over restrict! (Churches with Easter flowers but no money for plumbing) </li></ul>
    18. 18. Capital <ul><li>3 times of organization </li></ul><ul><li>3 phases of solicitation </li></ul><ul><li>3 campaign stages </li></ul>
    19. 19. 3 times of organization <ul><li>Preparing for a campaign </li></ul><ul><li>in a campaign </li></ul><ul><li>cleaning up from a campaign </li></ul>
    20. 20. 3 phases of solicitation <ul><li>Leadership </li></ul><ul><li>Special/Major </li></ul><ul><li>Community </li></ul>
    21. 21. 3 campaign stages <ul><li>feasibility </li></ul><ul><li>quiet </li></ul><ul><li>public </li></ul>
    22. 22. Feasibility <ul><li>define goals </li></ul><ul><li>Formulate and test drive a case statement </li></ul><ul><li>make a list of prospects </li></ul><ul><li>create gift categories and put the prospects into them </li></ul><ul><li>Not necessarily the beginning of a campaign </li></ul><ul><li>May recommend waiting a year of two </li></ul>
    23. 23. Quiet <ul><li>quiet but not too quiet </li></ul><ul><li>Leadership/Special/Major </li></ul><ul><li>disciplined work, walking out the plan </li></ul>
    24. 24. Public <ul><li>after 60-75% of money is raised—people give to winning teams </li></ul><ul><li>don’t kick it off too soon </li></ul><ul><li>20% of the money but 80% of the work </li></ul>
    25. 25. Endowment <ul><li>Have your board make wise choices about investment </li></ul><ul><li>How much does it take for a donor to endow a fund? (Help avoid the endowed flowers syndrome.) </li></ul><ul><li>Do bequests automatically go here? </li></ul>
    26. 26. 3 Ways to Raise Money
    27. 27. Written <ul><li>mail </li></ul><ul><li>web </li></ul><ul><li>e-mail </li></ul><ul><ul><li>don’t ask for money in email without having a way to donate online </li></ul></ul><ul><li>Phone </li></ul><ul><ul><li>because often needs a script </li></ul></ul><ul><ul><li>be sure it’s more of a convenience for them not for you (the nonprofit) </li></ul></ul>
    28. 28. 3 Ways to Raise Money
    29. 29. Events <ul><li>gets lots of people on board </li></ul><ul><li>TIME INTENSIVE for possibly little return </li></ul><ul><li>Risk offending donors </li></ul><ul><li>I've heard that April and November are the best months for events </li></ul><ul><li>give them 3 years before deciding to discontinue </li></ul><ul><li>Determine your focus </li></ul><ul><li>Clear plan & script EVERYTHING </li></ul>
    30. 30. Risk offending donors <ul><li>Even though it may be their friends, the organization could look bad when people don’t RSVP </li></ul><ul><li>LOT’S of phone calls by staff! </li></ul>
    31. 31. Give them 3 years before <ul><li>events do have value </li></ul><ul><li>but you need to create a culture and fine tune them before giving up on them </li></ul>
    32. 32. Determine your focus <ul><li>Use “The Curly Credo” </li></ul><ul><li>What's the “one thing” of your event? </li></ul>
    33. 33. What's the “one thing” of your event? <ul><li>Cultivation </li></ul><ul><li>Solicitation </li></ul><ul><li>Stewardship </li></ul>
    34. 34. Cultivation <ul><li>Handshake Events </li></ul><ul><ul><li>Not for $ right now </li></ul></ul><ul><ul><li>friends invite friends/org invites people they want to get to know </li></ul></ul><ul><ul><li>Head (facts) and Heart (emotional hook) </li></ul></ul><ul><li>or moving further into the house? </li></ul>
    35. 35. Solicitation <ul><li>Low Key FR Events </li></ul><ul><ul><li>Much like above but with </li></ul></ul><ul><ul><ul><li>either the promise of follow up </li></ul></ul></ul><ul><ul><ul><li>or a pledge card at the event (I’m not a big fan of this) </li></ul></ul></ul><ul><ul><li>Be clear in the invitation wording, subtle but clear </li></ul></ul>
    36. 36. Stewardship <ul><li>Say thank you </li></ul><ul><li>and DON’T ASK FOR MONEY </li></ul>
    37. 37. Clear plan & script EVERYTHING <ul><li>All should be tightly timed </li></ul><ul><ul><li>Often want to allow ample socializing time: friends brought friends </li></ul></ul><ul><ul><li>but may want to go for the in-and-out, your-time-is-important approach </li></ul></ul><ul><ul><li>Which ever you choose be intentional </li></ul></ul><ul><ul><li>Include times (even “2 minutes”) </li></ul></ul><ul><li>Talking points for everyone </li></ul><ul><ul><li>not to lock them in </li></ul></ul><ul><ul><li>just to give them direction </li></ul></ul><ul><ul><li>kids on the playground with a fence </li></ul></ul><ul><ul><li>It's helpful to put the event objective at the top of this </li></ul></ul><ul><ul><ul><li>people tend to forget in the rush of activity </li></ul></ul></ul>
    38. 38. 3 Ways to Raise Money
    39. 39. F2F <ul><li>most effective </li></ul><ul><li>most time consuming </li></ul><ul><li>Or maybe not: you could organize a silent auction to give you $10,000 (LOTS of work) or ask an individual over coffee. </li></ul><ul><li>Subtopic </li></ul>
    40. 40. 3 Things to Measure
    41. 41. Setting up a FR Program
    42. 42. Major gifts focus <ul><li>This is worth the effort (which is easier: a $10k ask or a fashion show? </li></ul><ul><li>Multiple year pledges make thanking easier </li></ul><ul><li>$1000/year is $84/month—about as much as a phone bill might be </li></ul>
    43. 43. Direct mail <ul><li>Probably quarterly </li></ul><ul><ul><li>Aug/Sept, Dec, Feb/March, May </li></ul></ul><ul><ul><li>Companies have differing fiscal years </li></ul></ul><ul><ul><li>every 6 months makes sure you get the USPS address changes </li></ul></ul><ul><li>why not write these in advance? then you’ll just have to proof them. </li></ul><ul><li>decide on mail house vs. volunteers stuffing </li></ul><ul><li>4 page letter with reply envelope & buck slip </li></ul>
    44. 44. Website <ul><li>Big Red Fez </li></ul><ul><li>Credit cards </li></ul><ul><ul><li>Do-it-yourself with SSL encryption </li></ul></ul><ul><ul><li>or outsource to a vendor </li></ul></ul>
    45. 45. Events <ul><li>some handshake events </li></ul><ul><ul><li>to grow your database </li></ul></ul><ul><li>an annual event </li></ul><ul><ul><li>silent auction </li></ul></ul><ul><ul><li>gala/ball </li></ul></ul><ul><ul><li>-athon (walk, bike, etc.) </li></ul></ul><ul><li>an annual thank you </li></ul>
    46. 46. 3 Sets of Tools
    47. 47. Databases <ul><li>Get the institutional memory in a common place! </li></ul><ul><li>Don’t be afraid of dumb questions. Most of these sales folks seem to be techies without development experience. Ask until you get the answers you want. </li></ul><ul><li>Blackbaud http://www.blackbaud.com/ </li></ul><ul><li>DonorPerfect http://www.donorperfect.com/ </li></ul><ul><li>eTapestry http://etapestry.com/ </li></ul>
    48. 48. Who are the current top 20 of givers to your nonprofit? <ul><li>Lifetime </li></ul><ul><li>Last couple years </li></ul><ul><li>Be prepared to be surprised. </li></ul>
    49. 49. P.Y.I.T.S. <ul><li>Put Yourself In Their Shoes </li></ul><ul><li>Would you like to be asked the way you are planning on asking? </li></ul><ul><li>i.e. phonathons: who's convenience are they for--the donor's or the nonprofit's? </li></ul>
    50. 50. The Quiz <ul><li>What are the only 3 types of communication you'll need? </li></ul><ul><li>How many times to say “thank you” between solicitations? </li></ul><ul><li>What’s the #1 reason people don't give? </li></ul>

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