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Fundraising 101

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Fundraising 101

  1. 1. Fundraising 101<br />May 2010<br />Meredith Kennedy, LEED Green Associate<br />
  2. 2. Agenda<br /><ul><li>Why fundraise?
  3. 3. Individual giving
  4. 4. Report from the NTC 2010
  5. 5. Foundation and corporate grants
  6. 6. Fiscal and legal issues
  7. 7. Philanthropy vs. sponsorship
  8. 8. Extranet resources</li></li></ul><li>Why Fundraise?<br />In today’s economic climate, it is even more important to expand your fundraising program.<br />Focus on multi-channel fundraising to include individuals, foundations, events, and online giving in addition to sponsorships.<br />
  9. 9. The Good News<br /><ul><li>Environmental giving is stable or increasing
  10. 10. More non-grantmaking opportunities and partnerships
  11. 11. Government grant programs are up
  12. 12. Many charities report increases in giving during hard times and decreases during boom times
  13. 13. Use your unique mission to help you stand out</li></li></ul><li>…And the Bad<br /><ul><li>Foundation assets declined 21.9% in 2009.
  14. 14. 63% of foundations reduced the number/size of grants by 10 – 14% in 2009 and 2010.
  15. 15. Corporate giving has decreased and will decrease more.</li></li></ul><li>Now is the Time!<br /><ul><li>Development of a case statement
  16. 16. Cultivation of donors
  17. 17. Developing a fundraising plan
  18. 18. Expanding into new fundraising territory</li></li></ul><li>Individual Giving<br />
  19. 19. Why Individuals?<br />85-90% of all donations come from individuals.<br />Individuals want to feel connected with a mission they care about, and want to support it.<br />Gave $229 BILLION in 2007 and $220 BILLION in 2008.<br />The more individuals volunteer and are engaged with the organization, the more they give.<br />
  20. 20. Identifying Individual Prospects and Mining Your Membership<br />Work with your board<br />Research philanthropists in your community<br />Look for ways to engage your prospects in your work<br />Get to know the leaders/top officers in your membership<br />
  21. 21. ASK!!!<br /><ul><li>Donors don’t mind being asked
  22. 22. Let the mission of USGBC guide you
  23. 23. Don’t just ask for a donation; tell the donor how the donation is being spent and making a difference
  24. 24. Practice, practice, practice</li></li></ul><li>AND THEN SAY THANK YOU!!!<br /><ul><li>Thank your donors immediately after receipt of a gift, no matter the size
  25. 25. Say “thank you” at least three times for every ask
  26. 26. Say thanks in a variety of ways and places
  27. 27. Tell your donors exactly how you’re using their money
  28. 28. Get ready to ask again</li></li></ul><li>
  29. 29. Fundraising Lessons Learned: Transacting the Ask<br />Four Stories of an Ask— always answer the questions:<br />1. Why are you asking me to give? <br />2. What is the impact of my gift? <br />3. Why now? <br />4. Who says I should give? <br />
  30. 30. Transacting the Ask<br />Thank you basics:<br /><ul><li> Say thanks right away
  31. 31. Be personal
  32. 32. Give the donor the credit (his or her achievement, not yours)
  33. 33. Show (don’t tell) where the donor’s money went
  34. 34. Repeat. And again. All year long.</li></ul> Acquisition is important, but retention is key!<br />
  35. 35. Fundraising Lessons Learned: Homer Simpson for Nonprofits<br />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?<br />
  36. 36. Homer Simpson for Nonprofits<br /><ul><li> The success of your online outreach hinges on your understanding of the inner workings of the human mind.
  37. 37. Patterns of irrationality are consistent.
  38. 38. To engage in successful marketing and fundraising, you must appeal to people’s emotions.</li></li></ul><li>Homer Simpson for Nonprofits<br /><ul><li> Stick to social norms, not market norms
  39. 39. Small, not big</li></ul>Hopeful, not hopeless<br /><ul><li> Peer pressure works</li></ul>We listen to authority<br /><ul><li> The more you ask for, the more you get</li></ul>http://web.networkforgood.org/201002ebook/<br />
  40. 40. Annual Giving<br />Build your core constituency by communicating with your membership regularly<br />Challenge every member to give a gift at least 2x every year<br />Thank them!<br />Track gifts and watch fortrends/major gift prospects<br />
  41. 41. Grants<br />
  42. 42. Developing your Case for Support<br />The case for support should appeal to all donors – it’s your story<br />Make it compelling, and show impact<br />Help them make the connection between the societal need (climate change, social equity concerns) and the solution (green buildings!)<br />Doesn’t need to be an expensive document<br />
  43. 43. Corporate and Foundation Grants<br />Important complement to fundraising program<br />Research carefully to find good match<br />Your goals and the donor’s must be aligned<br />Follow through on terms of grant (reporting, financial recording, acknowledgment, etc.) <br />
  44. 44. Role of Board Members<br />Most organizations…<br />Are measured by board giving and strive for 100% participation<br />Include fundraising as part of the job description<br />Empower and train their board members to help with the solicitation process<br />Individual Service Plan<br />
  45. 45. Grant Proposal Success<br />Factor One:  The quality of the nonprofit organization.  <br />Factor Two:  The innovative nature or critical importance of the proposed project.  <br />Factor Three:  The appropriateness of a funding source or the competition level in a particular grantmaking cycle.  <br />Factor Four:  The skills of the grantwriter in building a compelling case. <br />
  46. 46. Grant Proposals Step-by-Step<br />Step One: Vision  Every proposal, no matter how small, should reflect an ambitious vision.  <br />Step Two:  Philanthropy  Identify a grantmaking institution.<br />Step Three:  Language  Clear goals, measurable objectives, and specific outcomes.  <br />Step Four: Submission <br />Step Five: Continuation Funded- future projects. Denied- building block.  <br />
  47. 47. The Legalities<br /><ul><li>501(c)(3)—or provisional letter from IRS
  48. 48. 990 tax return/annual audit
  49. 49. UBIT – unrelated business income tax
  50. 50. Lobbying activity
  51. 51. Solicitation laws
  52. 52. Most states require registration of nonprofits and comprehensive annual reporting of fundraising activity
  53. 53. Unified Registration Statement</li></li></ul><li>Resources- Foundations<br />Subscription Databases<br />The Foundation Centerwww.fdncenter.org<br />Foundation Search<br />www.foundationsearch.com<br />Fundraising Resources<br />Green Building Funding Opportunitieshttp://www.epa.gov/greenbuilding/tools/funding.htm<br />Hosted by the EPA, this site includes links to green building funders. <br />Foundation Center’s RFP Bulletinwww.fdncenter.org/pnd/rfp/<br />Chronicle of Philanthropy<br />http://philanthropy.org/grants<br />North American Association of Environmental Education <br />http://www.naaee.org/<br />Grant Research and Writing Resources<br />Council on Foundations<br />http://www.cof.org/Members/?navItemNumber=1962<br />Includes a locator feature for community, corporate, family foundations, etc.<br />Foundation Finder  <br />http://lnp.fdncenter.org/finder/<br />Grantproposal.com  <br /><ul><li>Grantwriting Tips  </li></ul>http://www2.scholastic.com/browse/article.jsp?id=4173 <br /><ul><li>Proposal Writing Short Course  </li></ul>http://foundationcenter.org/getstarted/tutorials/shortcourse/index.html<br />Foundation Center’s On-line Learning Labhttp://fdncenter.org/learn/classroom/index.html<br />The Grantsmanship Centerwww.tgci.comIncludes a searchable library of winning grant proposals.<br />
  54. 54. Questions?<br />

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