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What Every Ceo Needs To Know 11 08


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This is a general introduction to fundraising for executives of nonprofit organizations.

Published in: Business, News & Politics

What Every Ceo Needs To Know 11 08

  1. 1. What Every Nonprofit CEO Needs to Know About Fundraising A workshop with Mal Warwick 15 th Eastern Africa Resource Mobilisation Workshop Sarova White Sands Beach Resort Mombasa, Kenya, 24-25 November 2008 Copyright © 2008 by Mal Warwick
  2. 2. How many legs on this elephant?
  3. 3. In this session . . . <ul><li>The strategic role of fundraising </li></ul><ul><li>Where does money come from? </li></ul><ul><li>Why do donors give? </li></ul><ul><li>Fundraising techniques </li></ul><ul><li>Roles of board, staff, volunteers </li></ul>
  4. 4. 1) Strategic role of fundraising
  5. 5. Resource mobilisation <ul><li>Enabling environment </li></ul><ul><li>Public opinion </li></ul><ul><li>Staffing </li></ul><ul><li>Volunteers </li></ul><ul><li>Fees for service </li></ul><ul><li>Revenue generation </li></ul><ul><li>Government funding </li></ul><ul><li>Philanthropic support </li></ul>= fundraising
  6. 6. Why fundraising? <ul><li>Generate essential funds </li></ul><ul><li>Meet growing needs </li></ul><ul><li>Demonstrate broad support </li></ul><ul><li>Ensure continuity </li></ul><ul><li>Raise the organisation’s profile </li></ul><ul><li>Educate the public about your issues </li></ul>
  7. 7. Cornerstones of nonprofit success Vision & mission Programs Staff & volunteers Funding 1 2 3 4 Your organisation
  8. 8. Stages of development Decline Stability Late growth Early growth Launch
  9. 9. Take stock <ul><li>At what stage is your organisation? </li></ul><ul><li>What is your principal fundraising strategy? </li></ul>
  10. 10. 2) Where does money come from?
  11. 11. The global picture Source: Lester Salamon, Global Civil Society
  12. 12. Two sources of philanthropic funds Institutions Individuals
  13. 13. Individual fundraising: globally
  14. 14. Giving USA 2008 = $306B Foundations $39B 13% Bequests $23B 8% Corporations $16B 5% Source: Giving USA Foundation ™ / Giving USA 2008 Individuals $229B 75%
  15. 15. The Tale of the Lake, the Pond, and the Stream
  16. 16. The Lake
  17. 17. The Pond
  18. 18. The Stream
  19. 19. The Four Phases of Fundraising Investment  Legacies Involvement  Upgrades Interest  Renewal Identification  “Acquisition”
  20. 20. The Six Gifts Money Time Goods Information Voice Influence
  21. 21. Donors are multi-dimensional Bequest Donor Monthly Donor User of Services Bike-a-Thon Participant Board Member Volunteer Staff Retiree Letter- Writer Activist Each Donor
  22. 22. 3) Why do donors give?
  23. 23. Maslow’s Hierarchy of Human Needs
  24. 24. The principal sources of motivation Heart Mind Spirit
  25. 25. Why do people give? <ul><li>“ I believe in your cause.” </li></ul><ul><li>“ I want to make a difference.” </li></ul><ul><li>“ Your work responds to my spiritual needs.” </li></ul><ul><li>“ It’s gratifying to be part of your work.” </li></ul><ul><li>“ I know you, or I know your leader.” </li></ul><ul><li>“ I have benefited from your services.” </li></ul><ul><li>“ You said ‘Thank you’ the last time I gave.” </li></ul><ul><li>“ You asked me!” </li></ul>
  26. 26. Why do people not give? <ul><li>“ You didn’t ask me.” </li></ul><ul><li>“ I don’t have any money now.” </li></ul><ul><li>“ I just don’t trust your organization.” </li></ul><ul><li>“ Your organization doesn’t spend money wisely.” </li></ul><ul><li>“ I don’t share your values.” </li></ul><ul><li>“ You didn’t ask me in the right way.” </li></ul><ul><li>“ I give to other charities.” </li></ul><ul><li>“ I was in a bad mood.” </li></ul>
  27. 27. Pop Quiz! What do donors want the most, and what happens when they don’t get it?
  28. 28. Pop Quiz! <ul><li>Research shows donors’ #1 desire is: </li></ul><ul><ul><li>Free gifts </li></ul></ul><ul><ul><li>A personal visit from the chief executive </li></ul></ul><ul><ul><li>Prompt acknowledgment of their gifts </li></ul></ul><ul><ul><li>Newspaper ads listing their names </li></ul></ul><ul><ul><li>Invitations to special donor parties </li></ul></ul>
  29. 29. Pop Quiz! <ul><li>Research shows donors’ #2 desire is: </li></ul><ul><ul><li>Newspaper ads listing their names </li></ul></ul><ul><ul><li>Free gifts </li></ul></ul><ul><ul><li>Personal visits from board members </li></ul></ul><ul><ul><li>Information about how their gifts were used </li></ul></ul><ul><ul><li>Sex </li></ul></ul>
  30. 30. So, what do donors really want? <ul><li>Treatment as human beings, not statistics </li></ul><ul><li>Kindness and courtesy in all contacts </li></ul><ul><li>Appreciation for their contributions </li></ul><ul><li>Recognition that they are virtual partners </li></ul><ul><li>Information that inspires their trust </li></ul>
  31. 31. And when they don’t get these things . . . ?
  32. 32. Donor attrition: Year 1
  33. 33. Donor attrition: Year 2
  34. 34. Donor attrition: Year 3
  35. 35. Donor attrition: Year 4
  36. 36. Donor attrition: Year 5
  37. 37. Donor attrition: Year 6
  38. 38. Donor attrition: Year 7
  39. 39. 4) Fundraising techniques
  40. 40. Principal fundraising techniques <ul><li>Special events </li></ul><ul><li>Direct response </li></ul><ul><li>Major gifts </li></ul><ul><li>Legacies </li></ul><ul><li>Trusts and foundations </li></ul><ul><li>Corporations </li></ul>
  41. 41. Direct response fundraising <ul><li>Street </li></ul><ul><li>Direct mail </li></ul><ul><ul><li>Donor acquisition </li></ul></ul><ul><ul><li>Donor renewal </li></ul></ul><ul><ul><li>Special appeal </li></ul></ul><ul><li>Telemarketing </li></ul><ul><li>Online </li></ul><ul><li>SMS </li></ul><ul><li>DRTV </li></ul>
  42. 42. Individual sources <ul><li>Membership dues </li></ul><ul><li>Annual gifts </li></ul><ul><li>Regular or monthly gifts </li></ul><ul><li>One-off gifts </li></ul><ul><li>Major gifts </li></ul><ul><li>Legacies </li></ul>
  43. 43. Take stock <ul><li>Which techniques do you use? </li></ul><ul><li>Which are possible for your organisation? </li></ul>
  44. 44. Act on the Pareto Principle 20% 80% Number of donors 20% 80% % of revenue
  45. 45. 5) Roles of board, staff, volunteers
  46. 46. Fundraising responsibilities NO ? YES YES Corps NO ? YES YES Trusts NO YES YES YES Legacies ? ? YES YES Major gifts ? NO YES NO Direct ? YES YES YES Events Pros Volunteers Staff Board What
  47. 47. Take stock <ul><li>Is your board involved in fundraising? </li></ul><ul><li>Do you have staff capacity for direct response? </li></ul><ul><li>Do you require professional help—and can you get it? </li></ul>
  48. 48. Free monthly e-newsletter! <ul><li>Just give me your business card </li></ul>
  49. 49. Time for questions now! <ul><li>For more information, contact: </li></ul><ul><li>Mal Warwick Associates </li></ul><ul><li>2550 Ninth Street, Suite 103 </li></ul><ul><li>Berkeley, CA 94710-2551 </li></ul><ul><li>Phone +1 (510) 843-8888 </li></ul><ul><li>Email [email_address] </li></ul><ul><li>Web </li></ul>