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Fundraising 101

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If you don\'t ask you\'ll never know.

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Fundraising 101

  1. 1. Fundraising 101 If you don’t ask you’ll never know…
  2. 2. Overview <ul><li>Who gives? </li></ul><ul><li>Fundraising Plan </li></ul><ul><li>Key Players </li></ul><ul><li>Sources of Giving </li></ul><ul><li>Additional Resources </li></ul>
  3. 3. Who gives? <ul><li>The majority of individual donations come from households making less than $50,000 per year. </li></ul><ul><li>Women give more often and leave more money to nonprofits. </li></ul><ul><li>7 out of 10 individuals donate. </li></ul><ul><li>More money available than you might think. </li></ul><ul><li>People you might not suspect. </li></ul>
  4. 4. Giving in 2005 Total: $260 Billion! <ul><li>Growth of 6.1 % from 2002 report </li></ul><ul><li>Increase in disaster relief: $7.37 billion between December 2004 and October 2005 </li></ul><ul><li>Individuals give about 2.2% of their disposable income </li></ul><ul><li>Bequests dropped 5.5% </li></ul><ul><li>Foundation giving rose 5.6% </li></ul><ul><li>Corporate giving grew by 22.5%! </li></ul>Giving USA, 2006
  5. 5. The Fundraising Plan <ul><li>Why plan? </li></ul><ul><li>Funding history </li></ul><ul><li>Goals: Set yourself up for success </li></ul><ul><li>Budget </li></ul><ul><li>Diversity </li></ul><ul><li>Case statement and summary page </li></ul>
  6. 6. The Fundraising Plan (con’t) <ul><li>Organizational Analysis: SWOT Analysis </li></ul><ul><li>Leadership analysis: professional development </li></ul><ul><li>Marketing strategy </li></ul><ul><li>Calendar of deadlines and goals </li></ul><ul><li>Consultant </li></ul><ul><li>Inclusive approach </li></ul>
  7. 7. Case Statement <ul><li>Statement of need- what do you need? </li></ul><ul><li>Mission </li></ul><ul><li>Background </li></ul><ul><li>Successes </li></ul><ul><li>Quotes from people who benefit from your mission </li></ul><ul><li>Share this with donors and volunteers </li></ul><ul><li>Summary page </li></ul><ul><ul><li>Sums up the case statement </li></ul></ul>
  8. 8. Organizational Analysis <ul><li>Are we ready? </li></ul><ul><li>Can we realistically meet our goals? </li></ul><ul><li>What are our strengths and weaknesses? </li></ul><ul><li>Who are our stakeholders? </li></ul><ul><li>SWOT analysis (Strengths, Weakness, Opportunities, Threats) </li></ul>
  9. 9. Marketing <ul><li>Allows you to advertise a need </li></ul><ul><li>Set goals </li></ul><ul><li>Who are your targets? </li></ul><ul><li>Use newspapers, print and electronic media </li></ul>
  10. 10. Marketing: The message <ul><li>Believe in your mission </li></ul><ul><li>Consider focus groups to test messaging </li></ul><ul><li>Focus on success not desperation </li></ul><ul><li>Invite people into an investment </li></ul><ul><li>Marketing materials </li></ul>
  11. 11. Marketing: Resources <ul><li>www.bizjounals.com </li></ul><ul><li>www.newslibrary.com </li></ul><ul><li>www.newsdirectory.com </li></ul><ul><li>Local Newspaper </li></ul><ul><li>Local TV station </li></ul>
  12. 12. Key players <ul><li>Board of Directors </li></ul><ul><li>Executive Director </li></ul><ul><li>Development Director </li></ul><ul><li>Staff </li></ul><ul><li>Volunteers </li></ul><ul><li>Current donors </li></ul>
  13. 13. Key Players: Board of Directors <ul><li>Board and Director share some responsibilities </li></ul><ul><li>Communication and trust </li></ul><ul><li>Defines the agencies direction while the staff implements </li></ul><ul><li>Need job description and board policies </li></ul><ul><li>Fundraising </li></ul><ul><li>100% giving </li></ul>
  14. 14. Key Players: Executive Director <ul><li>Must fundraise! </li></ul><ul><li>Leadership </li></ul><ul><li>Balancing Act </li></ul><ul><li>Job description </li></ul>
  15. 15. Key Players: Development Director <ul><li>ED may play that role temporarily </li></ul><ul><li>Development helps the ED, tracks donors, works with the board, makes sure acknowledgments happen </li></ul><ul><li>Needs job description and specific REALISTIC goals to measure success </li></ul>
  16. 16. Key Players: Staff and Volunteers <ul><li>Staff always have the opportunity to help raise funds </li></ul><ul><li>Communicate strategies </li></ul><ul><li>Share materials </li></ul><ul><li>Share success! </li></ul><ul><li>Include them in recognition </li></ul>
  17. 17. Key Players: Current donors <ul><li>Leverage networks </li></ul><ul><li>Make introductions </li></ul><ul><li>Share positive experiences </li></ul><ul><li>Increase investment </li></ul>
  18. 18. Sources of Giving <ul><li>Individuals </li></ul><ul><li>Special Events </li></ul><ul><li>Earned Income </li></ul><ul><li>Corporations </li></ul><ul><li>Religious Community </li></ul><ul><li>Planned Giving </li></ul><ul><li>Campaign Gifts </li></ul><ul><li>Grants </li></ul>
  19. 19. Individuals: Advantages <ul><li>People give to people! </li></ul><ul><li>Most reliable source of funding </li></ul><ul><li>Less time to raise the money </li></ul><ul><li>Largest source of funding </li></ul><ul><li>501c3 tax credit not completely necessary </li></ul>
  20. 20. Individuals: Prospect Research <ul><li>Who do you know? </li></ul><ul><li>Who does your organization know? </li></ul><ul><li>Use the resources you already have: Board of directors, volunteers, etc. </li></ul><ul><li>Collaborate with like-minded groups </li></ul><ul><li>Are their business partners that would be willing to donate? </li></ul>
  21. 21. Individuals: Strategies for donors <ul><li>Determining your donor size </li></ul><ul><li>Who are the people who can help contact donors? </li></ul><ul><li>Constantly keep in mind how to cultivate and move donors up in the pyramid. </li></ul>
  22. 22. Individuals: Small donor strategies <ul><li>Approximately $5-$100 </li></ul><ul><li>Always have clear goals </li></ul><ul><li>Direct Mail </li></ul><ul><li>Online giving </li></ul><ul><li>Face-to-face meeting </li></ul><ul><li>Phone calls </li></ul>
  23. 23. Individuals: Medium donor strategies <ul><li>Approximately $500 to $999 </li></ul><ul><li>The folks in the middle are usually willing to give more than they can afford. </li></ul><ul><li>You will find a high-volume of donors in this range. </li></ul><ul><li>Similar strategies with small donors, but increased personal attention and recognition. </li></ul>
  24. 24. Individuals: Major donor strategies <ul><li>$1000 and higher </li></ul><ul><li>Rule of thirds </li></ul><ul><li>Prospect research </li></ul><ul><li>Executive Director and/or Board Chair </li></ul><ul><li>Listening is especially important here when asking for a gift </li></ul><ul><li>Donors want to connect to personal experience </li></ul><ul><li>Major donors are motivated by giving back. Let them know your group is a good place to do this. </li></ul>
  25. 25. The Giving Pyramid: Number of Donors Major Annual
  26. 26. The Giving Pyramid: Money Raised Annual Gifts Major Gifts 60% 70%
  27. 27. Individuals: Cultivation <ul><li>Each prospective donor is different. Listening will help you determine the donor’s interests and needs </li></ul><ul><li>Rehearse what you will say prior to any meeting or phone call with a donor </li></ul><ul><li>Make sure to ask your donors questions </li></ul><ul><li>Be positive </li></ul><ul><li>Don’t forget to ask! </li></ul>
  28. 28. Individuals: Asking for the gift <ul><li>Note that you are both interested in the mission and common goals </li></ul><ul><li>Highlight benefits and successes of the org </li></ul><ul><li>Ask for the gift </li></ul><ul><li>Restate the investment opportunity </li></ul><ul><li>Highlight the benefits of the investment </li></ul><ul><li>Restate the requested amount </li></ul><ul><li>Wait… </li></ul>Adapted from Community Resource Center Cultivating Major Gifts
  29. 29. Individuals: Recognition <ul><li>Acknowledgment letter with 501c3 information goes out within 7 days of gift </li></ul><ul><li>Set a goal of thanking donor an average of 7 times before asking them for another gift </li></ul><ul><li>Track your gifts and donors </li></ul><ul><li>Highlight how their investment has benefited the organization and mission </li></ul><ul><li>Donor fatigue </li></ul>
  30. 30. Individuals: Research websites: <ul><li>Internet Prospector: www.internet-prospector.org </li></ul><ul><li>Lexis Nexis: www.lexis-nexis.com </li></ul><ul><li>Yahoo’s People Search: http:// people.yahoo.com </li></ul><ul><li>Edgar People: www.edgar-online.com/people </li></ul><ul><li>Wealth Engine: www.wealthengine.com </li></ul><ul><li>Local newspapers/business journals </li></ul>
  31. 31. Special events <ul><li>Controversy on the benefits </li></ul><ul><li>Costly, time-consuming </li></ul><ul><li>Good networking and introduction to mission </li></ul><ul><li>Be very selective </li></ul><ul><li>Consider collaboration </li></ul><ul><li>Make sure it is in line with your mission </li></ul>
  32. 32. Specials events <ul><li>House parties </li></ul><ul><li>Silent Auctions </li></ul><ul><li>Dinners </li></ul><ul><li>Garage Sales </li></ul><ul><li>Open House </li></ul><ul><li>Other benefit events </li></ul>
  33. 33. Earned Income <ul><li>Selling services </li></ul><ul><li>Trainings </li></ul><ul><li>Renting space </li></ul><ul><li>Beware of UBIT (Unrelated Business Tax Income) </li></ul>
  34. 34. Corporations <ul><li>80% of consumers have a more positive outlook on corporations that engage in philanthropy (Cone and Roper Survey) </li></ul><ul><li>Corporations look to nonprofits to help identify with the community who contains their consumers </li></ul>
  35. 35. Corporations: Advantages <ul><li>Philanthropy </li></ul><ul><li>Advertising </li></ul><ul><li>Equipment </li></ul><ul><li>Printing </li></ul><ul><li>Expertise </li></ul><ul><li>Facilities </li></ul><ul><li>Employees (Board of Directors) </li></ul>
  36. 36. Corporations: Questions <ul><li>Will this corporate partnership benefit the organization? </li></ul><ul><li>Is it appropriate? </li></ul><ul><li>What expectations does the corporation have? </li></ul><ul><li>Will there be a benefit to the corporation? </li></ul><ul><li>Do we have a committee with which to work? </li></ul><ul><li>What are the strengths and weaknesses of the partnership? </li></ul>
  37. 37. Corporations: Resources <ul><li>Corporate Websites and Research </li></ul><ul><li>Edgar: www.freeedgar.com (free) </li></ul><ul><li>www.edgare-online.com </li></ul><ul><li>Hoovers: http:// hoovers.com </li></ul><ul><li>Foundation Center: www.fdncenter.com </li></ul>
  38. 38. Religious Community <ul><li>Local, state and national congregations </li></ul><ul><li>Build relationships by attending services and meeting with leaders in the religious community </li></ul><ul><li>Advertise in their newsletters or ask to speak to the congregation </li></ul><ul><li>Build relationships within the constituency </li></ul><ul><li>Consider joint fundraising events </li></ul>
  39. 39. Planned Giving <ul><li>“ Arrangements made for a group to receive contributions from the estate of a donor after the donor has died.” (Klein, 2001) </li></ul><ul><li>Bequests </li></ul><ul><li>Charitable Gift Annuity </li></ul><ul><li>Trusts </li></ul><ul><li>Gifts from Insurance and Retirement Funds </li></ul><ul><li>More sophisticated </li></ul>Fundraising for Social Change , Kim Klein, 2001
  40. 40. Campaign Gifts <ul><li>Capital Campaign </li></ul><ul><li>Annual Campaign </li></ul><ul><li>Planned Giving Campaign </li></ul><ul><li>Major Gifts Campaign </li></ul>
  41. 41. Grant seeking <ul><li>Government </li></ul><ul><li>Private Foundation </li></ul>
  42. 42. Foundations <ul><li>Large amounts of money </li></ul><ul><li>Programs, special projects and capital campaigns </li></ul><ul><li>Usually doesn’t give unrestricted funding </li></ul><ul><li>Takes a long time </li></ul><ul><li>Restricted amount of time for gifts </li></ul><ul><li>More from Jamie Morgan… </li></ul>
  43. 43. Foundations: Research <ul><li>Government Funding </li></ul><ul><li>Government Funding Resources: http://www.fundsnetservices.com/gov01.htm </li></ul><ul><li>Federal Register: http://www.access.gpo.gov </li></ul><ul><li>Catalog of Federal Domestic Assistance: http://www.cfda.gov/ </li></ul><ul><li>University of Southern California: http://www.usc.edu/dept/source/gov.htm </li></ul><ul><li>US State and Local Government Gateway: http://www.statelocal.gov </li></ul><ul><li>www.firstgov.com </li></ul><ul><li>www.nonprofit.gov (created by Pres. Clinton) </li></ul>
  44. 44. General Resources: Websites <ul><li>Community Resource Center: www.crcamerica.org </li></ul><ul><li>Colorado Nonprofit Association: www.coloradononprofits.org </li></ul><ul><li>Regis University: www.regis.edu </li></ul><ul><li>Metro Volunteers: www.metrovolunteers.org </li></ul><ul><li>Chronicle of Philanthropy: www.philanthropy.com </li></ul><ul><li>Charity Channel: www.charitychannel.com </li></ul><ul><li>Guidestar: www.guidestar.org </li></ul><ul><li>Independent Sector: www.independentsector.org </li></ul><ul><li>Young Nonprofit Professionals Network: www.ynpn.org </li></ul><ul><li>Volunteer Match: www.volunteermatch.org </li></ul>
  45. 45. General Resources: Reading <ul><li>Fundraising for Social Change , Kim Klein </li></ul><ul><li>Complete Guide to Fundraising Management , Stanley Weinstein </li></ul><ul><li>The Fifth Discipline , Peter Senge </li></ul><ul><li>Managing the Nonprofit Organization , Peter Drucker </li></ul><ul><li>Creating Caring and Capable Board s, Katherine Tyler Scott </li></ul><ul><li>Building Better Boards , David Nadler, Beverly Behan, and Mark Nadler </li></ul><ul><li>Financial Management for Nonprofits , Peter Konrad and Alys Novak </li></ul>
  46. 46. Final Comments <ul><li>Set your self up for success </li></ul><ul><li>Focus on success not desperation </li></ul><ul><li>Move out of “crisis mode” </li></ul><ul><li>Set realistic goals </li></ul><ul><li>Invest in planning </li></ul><ul><li>Diversify your funding </li></ul><ul><li>Engage everyone in the organization </li></ul><ul><li>Invest in strong leadership skills </li></ul><ul><li>If you don’t ask you’ll never know… </li></ul>
  47. 47. Questions?
  48. 48. Emily Davis <ul><li>Nonprofit Consultant </li></ul><ul><li>(303) 652-7536 </li></ul><ul><li>[email_address] </li></ul>

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