Organizing the Fundraising Back OfficePresented by Tim Mills-Groninger for South Shore GrantsMarch 4, 2011Part 1: Introduc...
Part 2: Donors (and Prospects)While an organization can prosper without individual support, having a strong donor base is ...
Part 3: The GiftGifts put the fund in fundraising. The technical definition of a gift is “the irrevocable transfer ofan as...
Part Four: Systems and SoftwareThe two benefits of automation in fundraising are economies of scale and the (often wasted)...
Part Five: Putting It TogetherExecution is the measure of a plan. Commit resources to data quality and work to makeinforma...
ReferencesTim Mills-Groninger, presentertimmg@earthlink.net, http://www.linkedin.com/in/millsgroningerDonor Bill of Rights...
AlumniFinderhttp://www.alumnifinder.com/Melisadata (list appending/cleaning)http://melisadata.com/Harris Connect (list app...
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Fundraising Back Office Handout

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Handouts for South Shore Grants on March 4, 2011. Topics including managing fundraising information, processing gifts, and regulatory requirements.

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Transcript of "Fundraising Back Office Handout"

  1. 1. Organizing the Fundraising Back OfficePresented by Tim Mills-Groninger for South Shore GrantsMarch 4, 2011Part 1: Introductions and GoalsThe goal of this session is to give participants an overview of managing the technical andadministrative components of running a fundraising effort for a US nonprofit. Discussion,interaction, and questions are encouraged throughout the session.Outcomes include an understanding of the importance of advancement services in supporting thefundraising effort, best practices, and legal and other risks. Participants will be able to accept andreceipt gifts properly and will be able to tell the difference between a gift and other financialtransactions and explain it to donors, board members, and other stakeholders.Slides 1) Title 2) Introductions 3) Mapping the Universe 4) Why Individual Giving is Important 5) Gifts by Source 6) Gifts by DestinationNotesOrganizing the Fundraising Back Office Page 1 of 7
  2. 2. Part 2: Donors (and Prospects)While an organization can prosper without individual support, having a strong donor base is anadvantage when you want to make money and show community support. Knowing who yourdonors are (and who they should be) creates immediate and long-term opportunities.The two biggest mistakes commonly made are to take existing donors for granted andoverestimating the prospect pool. Identify the information that you will need and actually useand create a strategy to collect and maintain it – with ROI as a key metric. Evaluate the cost andutility of maintaining a large prospect pool. Look for a weighted measure of connection,capacity, and commitment. Avoid blaming lack of data (that wouldn’t be used if you had it) forpoor fundraising performance.Slides 7) Types of Individuals – Part One 8) Types of Individuals – Part Two 9) Demographic information 10) Demographics 11) Demographic Resources 12) Demographic Questions 13) AnonymousNotesOrganizing the Fundraising Back Office Page 2 of 7
  3. 3. Part 3: The GiftGifts put the fund in fundraising. The technical definition of a gift is “the irrevocable transfer ofan asset without reciprocal consideration to the donor.” The typical donor believes that a gift isany contribution that creates a benefit to a person or cause. These definitions are often inconflict. You are free to thank a person for non-gift contributions, but it illegal to issue a giftreceipt for the transaction. Opinions vary on the value of tracking non-gift contributions andpurchases; the important point is to have a policy and consistently follow it.Gifts can come as cash and in-kind and occasionally involve some value given back to the donor.Establish a policy to recognize the gift amount, the fair market value of benefits received by thedonor, and the value of in-kind contributions – especially stock.Slides 14) Defining the Gift 15) Defining the Donor 16) Key IRS Issues 17) Sample Receipt 18) Pledges 19) Cash Gifts 20) Stock and other In-Kind 21) Gifts of Service 22) Let’s Play Gift or Not a Gift 23) Processing and Receipting 24) Other Record Keeping 25) Gift Vehicles 26) Gift Acceptance Policy 27) AccountingNotesOrganizing the Fundraising Back Office Page 3 of 7
  4. 4. Part Four: Systems and SoftwareThe two benefits of automation in fundraising are economies of scale and the (often wasted)opportunity for consistency. Don’t worry about brand or platform; focus on how well theapplication fits your policies and procedures. Evaluate ROI and don’t buy features that youdon’t have the staff resources to use well. Plan to re-evaluate software every three years.Slides 28) Selecting Fundraising Software 29) Software Options 30) Licensing (Buy) 31) Pros of Purchasing 32) Cons of Buying 33) Popular Products 34) Build – Custom Development 35) Pros of Building 36) Cons of Building 37) Build Options 38) SaaS 39) Pros of the Cloud 40) Cons of SaaS 41) SaaS Options 42) Beyond FundraisingNotesOrganizing the Fundraising Back Office Page 4 of 7
  5. 5. Part Five: Putting It TogetherExecution is the measure of a plan. Commit resources to data quality and work to makeinformation available in ways that are useful and actionable. While it may seem counter-intuitive, maintaining a short list of segmentation codes is hard work, but provides more valueand produces better results than lots of codes with few members. When it doubt, keep it simple.In order to be useful information must be used. Make donor information available to a broadbase of stakeholders, but make sure that they are trained technically and ethically and havesigned all appropriate acceptable use and confidentiality statements.Slides 43) Data Hygiene 44) Constituency and Other Coding 45) Good Codes 46) Bad Codes 47) Security 48) Compliance 49) The Advancement Services Plan 50) HomeworkNotesOrganizing the Fundraising Back Office Page 5 of 7
  6. 6. ReferencesTim Mills-Groninger, presentertimmg@earthlink.net, http://www.linkedin.com/in/millsgroningerDonor Bill of Rightshttp://www.afpnet.org/ethics/enforcementdetail.cfm?itemnumber=3359Giving USA http://www.givingusa2010.org/Publication 526 – Charitable Contributions for use in preparing 2010 returnshttp://www.irs.gov/pub/irs-pdf/p526.pdfPublication 1771 – Charitable Contributions Substantiation and Disclosure Requirementshttp://www.irs.gov/pub/irs-pdf/p1771.pdfPublication 4221 – Compliance Guide for 510(c)(3) Charitieshttp://www.irs.gov/pub/irs-pdf/p4221pc.pdfFundSvcs.org http://fundsvcs.ncsu.edu/Buy, Build or Rent (fundraising software)http://www.nptimes.com/May01/sr.htmFundraising software… Your Money-Making Machineryhttp://www.nptimes.com/pdf/0609sr.pdfAccounting APIs – integrating accounting softwarehttp://www.nptimes.com/08Jan/080101SR.pdfHearts And Eyeballs (Online communities add value to fundraising)http://www.nptimes.com/dme/May05/dme_2.htmlThe soft(ware) side of fundraising effectivenesshttp://www.nptimes.com/07Sep/070901SR2.pdfInfo tech: the next generation of automationhttp://www.allbusiness.com/specialty-businesses/non-profit-businesses/172866-1.htmlAllocate this! Accounting, the necessary evil, doesnt have to be sohttp://www.allbusiness.com/specialty-businesses/non-profit-businesses/3987781-1.htmlQuickBooks for Not-for-Profit Organizationshttp://www.sleeterstore.com/servlet/detail?no=149Organizing the Fundraising Back Office Page 6 of 7
  7. 7. AlumniFinderhttp://www.alumnifinder.com/Melisadata (list appending/cleaning)http://melisadata.com/Harris Connect (list appending/cleaning)http://www.harrisconnect.comUnified Registrationhttp://www.multistatefiling.org/PCI Security Standards (credit card security)https://www.pcisecuritystandards.org/pdfs/pci_ssc_quick_guide.pdfNew 990 Makes Nonprofit Fundraising Registration Unavoidablehttp://nonprofit.about.com/od/fundraisingbasics/a/frregistration990.htmIRS tax exempt informationhttp://www.stayexempt.irs.gov/State Filings for Nonprofitshttp://www.usa.gov/Business/Nonprofit_State.shtmlIdealware – software reviews and advicehttp://www.idealware.org/Organizing the Fundraising Back Office Page 7 of 7

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