Fundraising 101 May 2010 Meredith Kennedy, LEED Green Associate
Report from the NTC 2010
Foundation and corporate grants
Fiscal and legal issues
Philanthropy vs. sponsorship
Why Fundraise? In today’s economic climate, it is even more important to expand your fundraising program. Focus on multi-channel fundraising to include individuals, foundations, events, and online giving in addition to sponsorships.
The Good News
Environmental giving is stable or increasing
More non-grantmaking opportunities and partnerships
Government grant programs are up
Many charities report increases in giving during hard times and decreases during boom times
Use your unique mission to help you stand out
…And the Bad
Foundation assets declined 21.9% in 2009.
63% of foundations reduced the number/size of grants by 10 – 14% in 2009 and 2010.
Corporate giving has decreased and will decrease more.
Now is the Time!
Development of a case statement
Cultivation of donors
Developing a fundraising plan
Expanding into new fundraising territory
Why Individuals? 85-90% of all donations come from individuals. Individuals want to feel connected with a mission they care about, and want to support it. Gave $229 BILLION in 2007 and $220 BILLION in 2008. The more individuals volunteer and are engaged with the organization, the more they give.
Identifying Individual Prospects and Mining Your Membership Work with your board Research philanthropists in your community Look for ways to engage your prospects in your work Get to know the leaders/top officers in your membership
Donors don’t mind being asked
Let the mission of USGBC guide you
Don’t just ask for a donation; tell the donor how the donation is being spent and making a difference
Practice, practice, practice
AND THEN SAY THANK YOU!!!
Thank your donors immediately after receipt of a gift, no matter the size
Say “thank you” at least three times for every ask
Say thanks in a variety of ways and places
Tell your donors exactly how you’re using their money
Get ready to ask again
Fundraising Lessons Learned: Transacting the Ask Four Stories of an Ask— always answer the questions: 1. Why are you asking me to give? 2. What is the impact of my gift? 3. Why now? 4. Who says I should give?
Transacting the Ask Thank you basics:
Say thanks right away
Give the donor the credit (his or her achievement, not yours)
Show (don’t tell) where the donor’s money went
Repeat. And again. All year long.
Acquisition is important, but retention is key!
Fundraising Lessons Learned: Homer Simpson for Nonprofits Most people don’t make rational decisions all the time, and that’s where behavioral economics comes in. Most nonprofits do a good job of making rational decisions as to why people should support them. But what about the irrational arguments?
Homer Simpson for Nonprofits
The success of your online outreach hinges on your understanding of the inner workings of the human mind.
Patterns of irrationality are consistent.
To engage in successful marketing and fundraising, you must appeal to people’s emotions.
Homer Simpson for Nonprofits
Stick to social norms, not market norms
Small, not big
Hopeful, not hopeless
Peer pressure works
We listen to authority
The more you ask for, the more you get
Annual Giving Build your core constituency by communicating with your membership regularly Challenge every member to give a gift at least 2x every year Thank them! Track gifts and watch fortrends/major gift prospects
Developing your Case for Support The case for support should appeal to all donors – it’s your story Make it compelling, and show impact Help them make the connection between the societal need (climate change, social equity concerns) and the solution (green buildings!) Doesn’t need to be an expensive document
Corporate and Foundation Grants Important complement to fundraising program Research carefully to find good match Your goals and the donor’s must be aligned Follow through on terms of grant (reporting, financial recording, acknowledgment, etc.)
Role of Board Members Most organizations… Are measured by board giving and strive for 100% participation Include fundraising as part of the job description Empower and train their board members to help with the solicitation process Individual Service Plan
Grant Proposal Success Factor One: The quality of the nonprofit organization. Factor Two: The innovative nature or critical importance of the proposed project. Factor Three: The appropriateness of a funding source or the competition level in a particular grantmaking cycle. Factor Four: The skills of the grantwriter in building a compelling case.
Grant Proposals Step-by-Step Step One: Vision Every proposal, no matter how small, should reflect an ambitious vision. Step Two: Philanthropy Identify a grantmaking institution. Step Three: Language Clear goals, measurable objectives, and specific outcomes. Step Four: Submission Step Five: Continuation Funded- future projects. Denied- building block.
501(c)(3)—or provisional letter from IRS
990 tax return/annual audit
UBIT – unrelated business income tax
Most states require registration of nonprofits and comprehensive annual reporting of fundraising activity
Unified Registration Statement
Resources- Foundations Subscription Databases The Foundation Centerwww.fdncenter.org Foundation Search www.foundationsearch.com Fundraising Resources Green Building Funding Opportunitieshttp://www.epa.gov/greenbuilding/tools/funding.htm Hosted by the EPA, this site includes links to green building funders. Foundation Center’s RFP Bulletinwww.fdncenter.org/pnd/rfp/ Chronicle of Philanthropy http://philanthropy.org/grants North American Association of Environmental Education http://www.naaee.org/ Grant Research and Writing Resources Council on Foundations http://www.cof.org/Members/?navItemNumber=1962 Includes a locator feature for community, corporate, family foundations, etc. Foundation Finder http://lnp.fdncenter.org/finder/ Grantproposal.com
http://foundationcenter.org/getstarted/tutorials/shortcourse/index.html Foundation Center’s On-line Learning Labhttp://fdncenter.org/learn/classroom/index.html The Grantsmanship Centerwww.tgci.comIncludes a searchable library of winning grant proposals.