Ic Ioct08 1


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Slides for Sessions 1 & 2 of ICI Leadership Programme - Fundraising Session

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  • Ic Ioct08 1

    1. 1. Developing a Funding Strategy Session 1: Fundraising First Principles
    2. 2. More… www.slideshare.net/damianob www.askdirect.ie [email_address]
    3. 3. Course Outline <ul><li>Fundraising First Principles </li></ul><ul><ul><li>Overview of Fundraising Sources </li></ul></ul><ul><ul><ul><li>Developing a Case for Support </li></ul></ul></ul>
    4. 4. Selected Reading List <ul><li>Botting, Nina & Norton, Michael (2001) The Complete Fundraising Handbook (4th Edition). Directory of Social Change Roth, </li></ul><ul><li>Stephanie & Ho, Mimi (2005). The Accidental Fundraiser . Chardon Press. </li></ul><ul><li>Sloggie, Neil (2002). Tiny Essentials of Fundraising . White Lion Press. </li></ul><ul><li>Burnett, Ken (2002). Relationship Fundraising . Jossey Bass Wiley. </li></ul><ul><li>Smith, George (1996). Asking Properly. The Art of Creative Fundraising . White Lion Press. </li></ul><ul><li>Create/Clann Credo (2007) The Irish Fundraising Handbook (6th Edition) </li></ul>
    5. 5. Selected Web Links <ul><li>www.donorpowerblog.com </li></ul><ul><li>www.theagitator.net </li></ul><ul><li>http://recessionwatch.blogspot.com </li></ul><ul><li>http://seantriner.blogspot.com </li></ul><ul><li>www.sofii.org </li></ul><ul><li>http://conorbyrne.wordpress.com </li></ul><ul><li>http://osocio.org </li></ul>
    6. 6. Warm-up Exercise <ul><li>Think about the last time you made a donation of any sort… </li></ul><ul><ul><ul><li>(Flag day, church collection, raffle, pub quiz, sponsored a friend) </li></ul></ul></ul><ul><li>… and answer the following questions: </li></ul><ul><li>Who did you make the donation to? </li></ul><ul><li>Why did you make the donation? </li></ul><ul><li>How did giving the donation make you feel? </li></ul><ul><li>Would you give to that cause again? </li></ul>
    7. 7. Why fundraising is important <ul><li>To survive, grow & develop </li></ul><ul><li>Reducing dependency </li></ul><ul><li>Building a constituency </li></ul><ul><ul><li>Validation, legitimacy, demonstrable support </li></ul></ul><ul><li>Educating & informing </li></ul><ul><li>Creating a sustainable organisation </li></ul><ul><li>Because your work is important </li></ul>
    8. 8. Fundraising First Principles <ul><li>If you want money, you have to ask for it. </li></ul><ul><ul><li>Be clear what you want </li></ul></ul><ul><ul><li>Be aware of what the donor is able & willing to give </li></ul></ul><ul><ul><li>Some people will say no. Don’t take it personally </li></ul></ul><ul><ul><li>What you believe in has to bigger than what you are afraid of </li></ul></ul><ul><li>The personal approach </li></ul><ul><ul><li>The more personal the approach, the more effective you’ll be </li></ul></ul>
    9. 9. Fundraising First Principles <ul><li>Put yourself in the donor’s shoes </li></ul><ul><ul><li>Think about why they’re likely to give </li></ul></ul><ul><ul><li>What would they like/expect in return? </li></ul></ul><ul><ul><li>What do you need to say/do to convince them to give? </li></ul></ul><ul><li>People give to people </li></ul><ul><ul><li>Not to organisations or abstract concepts </li></ul></ul><ul><ul><li>They give through your organisation to help the end-user </li></ul></ul>
    10. 10. Fundraising First Principles <ul><li>Fundraising is selling </li></ul><ul><ul><li>Show them why your work is important </li></ul></ul><ul><ul><li>Persuade them to give </li></ul></ul><ul><li>Credibility & trust </li></ul><ul><ul><li>Donors won’t support organisations they don’t trust </li></ul></ul><ul><ul><li>They have to believe that you can fulfill your promise </li></ul></ul>
    11. 11. Fundraising First Principles <ul><li>How much to ask for </li></ul><ul><ul><li>A specific item of expenditure: €50 will buy a goat </li></ul></ul><ul><ul><li>A shopping list or menu of items </li></ul></ul><ul><ul><li>Set appeal targets and break them down into gifts </li></ul></ul><ul><ul><li>Give examples of gifts already received </li></ul></ul><ul><li>Say ‘Thank You’! </li></ul><ul><ul><li>Promptly and personally </li></ul></ul>
    12. 12. Fundraising First Principles <ul><li>Cultivate relationships </li></ul><ul><ul><li>Those who gave most often and most recently are most likely to give again </li></ul></ul><ul><ul><li>It’s easier (and cheaper) to get repeat gifts from an existing supporter than to get a first gift from a new supporter </li></ul></ul><ul><li>Accountability </li></ul><ul><ul><li>Spend the money on the purpose for which it was raised </li></ul></ul><ul><ul><li>Spend it wisely and see that it achieves something </li></ul></ul>
    13. 13. Why do people give?
    14. 14. Why do people give? <ul><li>To solve a problem </li></ul><ul><ul><li>famine, cancer, poverty </li></ul></ul><ul><li>To build something… </li></ul><ul><ul><li>school, church, community centre </li></ul></ul><ul><li>… Or to achieve something </li></ul><ul><ul><li>release prisoners of conscience, end child abuse </li></ul></ul><ul><li>To belong. To feel part of something </li></ul><ul><ul><li>Joining Amnesty International. Taking part in a community event </li></ul></ul>
    15. 15. Why do people give? <ul><li>Political conviction </li></ul><ul><ul><li>Supporting political parties, lobby or campaign groups </li></ul></ul><ul><li>Religious conviction or duty </li></ul><ul><ul><li>Alms giving, missionaries, parish collections </li></ul></ul><ul><li>Guilt </li></ul><ul><ul><li>Can be a strong initial motivator, but unlikely to lead to a long lasting relationship </li></ul></ul><ul><li>Personal experience </li></ul><ul><ul><li>A relative with cancer, a friend who died in a hospice, growing up in a single parent household </li></ul></ul>
    16. 16. Why do people give? <ul><li>To make someone go away </li></ul><ul><li>To look good </li></ul><ul><ul><li>Status, recognition. Counteract a bad reputation. </li></ul></ul><ul><li>Peer pressure </li></ul><ul><ul><li>Because friends or colleagues have given </li></ul></ul><ul><li>Because they were asked </li></ul><ul><ul><li>One of the most common reasons for not giving is that they were never asked </li></ul></ul>
    17. 17. Why do people give? <ul><li>People give for many different reasons: </li></ul><ul><ul><li>Some complex, some simple </li></ul></ul><ul><ul><li>Both altruistic and selfish </li></ul></ul><ul><ul><li>Different people have different motivations </li></ul></ul><ul><ul><li>But generally, people like to give </li></ul></ul><ul><ul><li>Successful fundraising involves understanding what motivates donors and tapping into those motivations </li></ul></ul>
    18. 18. Exercise <ul><li>Why would donors want to support your group? </li></ul><ul><li>What sort of people are likely to give to your organisation? </li></ul><ul><li>What would you need to do to convince them to give? </li></ul>
    19. 19. A diagram you’ll see a lot of…
    20. 20. The Public Prospective Donors First Gift Second Gift Regular / Monthly Donors Major Annual Gifts Major Multi Year Gifts Really Big Gifts Legacies
    21. 21. The Donor Pyramid <ul><li>Goal as a fundraiser is to move as many people as possible up the pyramid </li></ul><ul><li>Impulse  Habit  Commitment </li></ul>
    22. 22. The 80/20 Rule <ul><li>The second most important rule in fundraising… </li></ul><ul><li>80% of income will come from 20% of your supporters </li></ul>
    23. 23. Developing a Funding Strategy Session 2: Fundraising in Ireland
    24. 24. The Fundraising Quiz! <ul><li>Of the $295 bn given to non-profits in the US, what proportion comes from companies? </li></ul><ul><ul><li>4.3% </li></ul></ul><ul><ul><li>10.6% </li></ul></ul><ul><ul><li>27.1% </li></ul></ul>
    25. 25. The Fundraising Quiz! <ul><li>How much does the Irish public give to charity each year? </li></ul><ul><ul><li>€ 100 - €150 million </li></ul></ul><ul><ul><li>€ 200 - €250 million </li></ul></ul><ul><ul><li>€ 350 - €400 million </li></ul></ul>
    26. 26. The Fundraising Quiz! <ul><li>Roughly, what proportion of this goes to Concern, Trócaire and St Vincent de Paul combined? </li></ul><ul><ul><li>5% </li></ul></ul><ul><ul><li>15% </li></ul></ul><ul><ul><li>25% </li></ul></ul>
    27. 27. The Fundraising Quiz! <ul><li>Which country donated the most, per capita, to the Asian tsunami appeal in 2005? </li></ul><ul><ul><li>Ireland </li></ul></ul><ul><ul><li>Norway </li></ul></ul><ul><ul><li>Switzerland </li></ul></ul>
    28. 28. The Fundraising Quiz! <ul><li>Historically, during major crises such as the current global financial crash, does giving tend to…? </li></ul><ul><ul><li>… Go up </li></ul></ul><ul><ul><li>… Go down </li></ul></ul><ul><ul><li>… Stay the same </li></ul></ul>
    29. 29. Sources of Funds <ul><li>Individuals </li></ul><ul><li>Trust & Foundations </li></ul><ul><li>Companies </li></ul><ul><li>State </li></ul><ul><li>EU </li></ul><ul><li>Income Generation </li></ul>
    30. 30. Individual Donors <ul><li>Around €350 million per year </li></ul><ul><ul><li>About 2/3 of people give to charity each quarter </li></ul></ul><ul><ul><li>An average of €125 per donor </li></ul></ul>
    31. 31. Individual Donors <ul><li>Collections, appeals, flag days </li></ul><ul><ul><li>Daffodil day, Lent </li></ul></ul><ul><li>Events </li></ul><ul><ul><li>Ticket events: Balls, dinners, auctions,concerts </li></ul></ul><ul><ul><li>Sponsorship events: challenges, walks, runs </li></ul></ul><ul><li>Raffles, lotteries, draws </li></ul><ul><ul><li>Private lotteries </li></ul></ul><ul><ul><li>Occasional lotteries </li></ul></ul><ul><ul><li>Periodical lotteries </li></ul></ul><ul><ul><li>Licensed draw </li></ul></ul>
    32. 32. Individual Donors <ul><li>Direct marketing </li></ul><ul><ul><li>Direct mail </li></ul></ul><ul><ul><li>Street fundraising </li></ul></ul><ul><ul><li>Internet fundraising </li></ul></ul><ul><ul><li>Direct response TV </li></ul></ul><ul><li>Major Gift Fundraising </li></ul><ul><ul><li>Capital appeals </li></ul></ul><ul><li>Legacies </li></ul><ul><li>Volunteering </li></ul>
    33. 33. Trusts & Foundations <ul><li>About €50 million a year </li></ul><ul><li>Independent grant making bodies </li></ul><ul><li>Set-up to give money away for charitable purposes </li></ul><ul><li>Tend to provide project based funding </li></ul><ul><li>Generally have a grant policy or funding priorities </li></ul><ul><li>Generally only give to registered charities </li></ul><ul><li>Require an application </li></ul>
    34. 34. Trusts & Foundations <ul><li>Sources of information </li></ul><ul><ul><li>Philanthropy Ireland ( www.philanthropyireland.ie ) </li></ul></ul><ul><ul><li>European Foundation Centre ( www.efc.be ) </li></ul></ul><ul><ul><li>Annual reports, websites, publications of other similar organisations </li></ul></ul>
    35. 35. Trusts & Foundations <ul><li>Identify all the trusts that operate in your area </li></ul><ul><li>Visit their websites to find out their grant-making policies and application dates </li></ul><ul><li>Phone them up to see if they’d consider an application </li></ul><ul><ul><ul><li>Do they support your type of work? </li></ul></ul></ul><ul><ul><ul><li>How often do they make grants? </li></ul></ul></ul><ul><ul><ul><li>What’s the procedure for application? </li></ul></ul></ul><ul><ul><ul><li>How much do they usually give? </li></ul></ul></ul>
    36. 36. Corporate Giving <ul><li>About €50 million a year </li></ul><ul><ul><li>Cash gifts </li></ul></ul><ul><ul><li>Gifts in kind </li></ul></ul><ul><ul><li>Goodwill advertising </li></ul></ul><ul><ul><li>Sponsorships </li></ul></ul><ul><ul><li>Cause related marketing </li></ul></ul><ul><ul><li>Payroll giving schemes </li></ul></ul>
    37. 37. Corporate Giving <ul><li>Local projects where the company is based </li></ul><ul><li>Activities that relate to their product or service </li></ul><ul><li>Opportunities to reach their target audiences </li></ul><ul><li>High profile events </li></ul>
    38. 38. Corporate Giving <ul><li>Why do companies give? </li></ul><ul><ul><li>Enlightened self-interest </li></ul></ul><ul><ul><li>To be associated with causes that relate to their business </li></ul></ul><ul><ul><li>Create goodwill </li></ul></ul><ul><ul><li>To look good </li></ul></ul><ul><ul><li>Interest from board or managers </li></ul></ul><ul><ul><li>Tax benefits </li></ul></ul>
    39. 39. Corporate Giving <ul><li>Identify potential supporters - large & small, national and local </li></ul><ul><li>Identify any contacts you may have with them </li></ul><ul><li>Find out who deals with enquiries and who makes the decisions </li></ul><ul><li>Put yourself in their shoes - why would they support you? What will they get in return? </li></ul><ul><li>Be aware of ethical issues - do you really want their support? </li></ul>
    40. 40. State & EU Support <ul><li>€ 1.5 billion in 2001 </li></ul><ul><li>Much of it already designated </li></ul><ul><li>Government departments </li></ul><ul><li>Statutory bodies </li></ul><ul><li>Local authorities </li></ul><ul><li>EU programmes </li></ul>
    41. 41. State & EU Support <ul><li>Irish Fundraising Handbook CAFÉ Publications/Clann Credo www.communityartsireland.com </li></ul><ul><li>Dept of Community, Rural & Gaeltacht Affairs ( www.pobail.ie ) </li></ul><ul><li>Pobal (formerly ADM) www.pobal.ie </li></ul><ul><li>www.eustructuralfunds.ie </li></ul>
    42. 42. State & EU Support <ul><li>Some relevant grant schemes: </li></ul><ul><li>Community & voluntary grants scheme (Pobal) </li></ul><ul><li>Dormant Accounts Fund (Pobal) </li></ul><ul><li>Information, Publications & Social Policy grants schemes (Comhairle) </li></ul>
    43. 43. Income Generation <ul><li>Charging users for a service provided </li></ul><ul><ul><li>Creche fees </li></ul></ul><ul><li>Providing service under contract for, say, a local authority </li></ul><ul><ul><li>Being paid by local council to run a creche </li></ul></ul><ul><li>Selling goods - bought, donated or produced by supporters </li></ul><ul><ul><li>Running a charity shop, selling Christmas cards </li></ul></ul><ul><li>Providing a service within your area of expertise </li></ul><ul><ul><li>Advising other groups how to run a creche </li></ul></ul><ul><li>Commercial activities unrelated to your work </li></ul>