The document provides an overview of various fundraising methods for an HKU department of social work. It discusses three components of institutional plans including strategic, development, and marketing plans. It describes three categories of giving in an integrated development plan: annual giving for operating costs, capital giving for special projects, and planned giving for financial stability. Finally, it outlines different fundraising methods like individual solicitation, group events, and soliciting organizations, and factors for successful fundraising like planning, budgets, volunteers, and publicity.

1. Overview on Fundraising Methods HKU Dept of Social Work and Social Administration SW6218 Fund Raising and Proposal Development Feb 26, 2009

2. Vincent Law CFRE MInstF(Cert) Vice President, Association of Fundraising Professionals (Hong Kong Chapter) Former Development Director of World Society for the Protection of Animals, Asia Certified Fund Raising Executive, USA Certificate in Fundraising Management, UK Master Teacher, AFP Faculty Training Academy Professional membership with AFP, CASE and Institute of Fundraising BEng (Electrical) Imperial College, London, UK MSSc (Psychology of Education), HK EdD candidate in (Lifelong Education), Nottingham, UK

3. By end of lesson, you should be able : To describe the three components of institutional plans To compare the three kinds of giving in the integrated development plan To describe the three categories of solicitation methods in fundraising To identify factors for philanthropic fundraising environment To identify factors for successful fundraising events

4. Agenda Institutional Plans Donor’s relations Integrated Development Program The Pyramid of Giving Fundraising Methods Successful fundraising elements

5. What is Fundraising? not just about $ $ $ !!! About : Planning ( before campaign) Marketing & Management ( during campaign) Governance & Stewardship ( after campaign) Ethics and Professionalism

6. Why Plan? ” Those who fail to plan , plan to fail ” Benjamin Franklin 富蘭克林 (1706-1790)

7. Institutional Plans Strategic Plan Development Plan Marketing Plan

8. 1. Strategic Plan Values Mission Goals Objectives Market Research Market Niche Budget => Write Strategic Plan Roadmap to Attain its Vision

9. 2. Development Plan Case for support Identify Donors Conduct Research Cultivate Solicitate Market Niche Budget => Write Development Plan Relationship Building & Fundraising Programs

10. 3. Marketing Plan Market Research Segmented Markets Exchanges Communication Budget => Write Marketing Plan Understanding needs & Conveying Messages

11. Rosso’s Concentric Circles Henry Rosso and Associates, Achieving Excellence in Fund Raising: A Comprehensive Guide to Principles, Strategies, and Methods, San Francisco: Jossey-Bass Publishers, 1991, pg. 31. Donor’s Relations Clients Members Employees Volunteers General donors Former participants People with similar interests Manage-ment Staff Major Donors Board

12. Institutional Plans Strategic Plan Development Plan Marketing Plan

13. Integrated Development Program Annual Giving - annual operating costs Capital Giving - special projects Planned Giving - financial buffer

14. The Pyramid of Giving

15. 1. Annual Giving “ Annual Giving is the primary fundraising method used to broaden support, upgrade levels, and provide operating support for ongoing programs” can be Unrestricted (up to the board) or Restricted (for special projects) a) Definition

16. 1. Annual Giving Provide Income Acquire Donors Renew Donors Cultivate Donors Build Donor Loyalty Identify and Involve Leaders Identify Major Gift Prospects b) Purposes

17. c) Examples Flag Day Credit Card Monthly Donation Raffle Tickets Donation Box Direct Mail Sporting Events (e.g. marathon, tennis, bowling, golf Tournament ) Online donation (e.g. facebook, second Life, twitter) 1. Annual Giving

18. Red Cross – Flag Day

19. Po Leung Kuk – Credit card

20. WWF – Monthly Donation

21. World Vision – Gift catalog

22. SPCA - Petwalk

23. Oxfam – Musical Marathon

24. Senior Citizen Home Safety Association – Secret Angel Plan

25. 2. Capital Giving “ A capital campaign is an intensive, organized fundraising effort to secure philanthropic gifts for specific capital needed or projects within a specific time period.” Requires careful study, planning and identification of potential donors Lays groundwork for involving new volunteers and donors and sets stage for high annual giving levels a) Definition

26. 2. Capital Giving Obtain support for special needs of organization Building Construction Renovation Equipment Endowment Fund b) Purposes

27. 2. Capital Giving Major/ Leadership Gifts Naming Rights Grant c) Examples

28. HKU Foundation

29. HKU - Stanley Ho Alumni Challenge

30. HKU - Brick Campaign

31. 2. Capital Giving e.g. HK$10M Endowment Fund Gift Type Gift Amount # Gifts # Prospects Equaling Sub-Total Leadership HK$2,000,000 1 3 HK$2,000,000 HK$2,000,000 HK$1,000,000 2 6 HK$2,000,000 HK$4,000,000 Major HK$500,000 4 12 HK$2,000,000 HK$6,000,000 HK$250,000 6 18 HK$1,500,000 HK$7,500,000 HK$100,000 8 24 HK$800,000 HK$8,300,000 Special HK$50,000 12 36 HK$600,000 HK$8,900,000 HK$25,000 20 60 HK$500,000 HK$9,400,000 HK$10,000 35 105 HK$350,000 HK$9,750,000 General <HK$10,000 Many Many HK$250,000 HK$10,000,000

32. 3. Planned Giving “ Planned giving is a process whereby the donor and charity work together to achieve max. benefit for each party from a current or deferred charitable gift” Integrated fundraising concept on Sound Personal and Financial planning Estate planning a) What is?

33. 3. Planned Giving Secure gifts at a higher level Provide financial cushion Provide donor additional vehicles for giving from current assets b) Purposes

34. 3. Planned Giving Legacy / Bequest / Wills / Estate Type of Bequests Specific Residual Contingency Types of planned gifts Cash Real Estate Stock, Bonds Art Rare Books Life Insurance c) Examples

35. Tung Wah Group Hospitals – Property Donation

36. WSPA – Legacy

37. Adventist Hospital - ways of giving

38. Fundraising Methods Individual (Personal) solicitation Face to Face Telephone Direct Mail Group solicitation Special Events e-Philanthropy Organization solicitation Clubs and Associations Business and Corporations Foundations

39. 1a) Individual - Face to Face Most effective form of fundraising Asking for major gifts is difficult but practice makes perfect Select the right person to ask an influential person who knows the prospect a volunteer peer of the prospect. a board member who knows the prospect. CEO of the organization. anyone who has a connection Must not be afraid to ask !

40. 1b) Individual - Telephone Phonathon : make calls to ask for gifts To acquire, renew & upgrade donors To gather information Often combined w/direct mail campaign Popular with educational institutions (use students or alumni callers) Paid callers / Volunteer callers

41. Ways to use Telephone for Annual Giving Calls to acquire 1 st time donor Thank and acknowledge Lapsed donor calls Follow up on invitations to activities and special events; also encourage attendance. Membership calls, to invite and renew memberships. Club or group calls to retain interest and participation. Upgrade calls, to invite a larger gift

42. 1c) Individual - Direct Mail Most impersonal Least efficient type of fundraising methods Package Outer envelop Cover Letter Enclosure Response form Return envelop

43. 2a) Group - Special Events Raises public awareness of organization Good public relation tools Gives visibility Helps cultivate prospects and donors Attracts new, interested people Provides socializing function Helps raise funds for annual giving programs and special projects

44. Po Leung Kuk - Annual Dinner

45. 2b) Group – ePhilanthropy Commonly used term for online donation Integration is the key to success followed by traditional fundraising methods Relationship building is the central theme of e-Philanthropy Technical issue Make sure good Security (SSL) Marketing issue drive traffic to your website landing page

46. UNICEF - Online Donation

47. 3a) Organization – Clubs / Associations Types of clubs and associations Service clubs (e.g. Lions Club, Rotary, JC ) Professional and trade associations Motivation Special interests (e.g. Lions and blindness) Business or social concerns of members Strategies Join club Introduce through member Educate club about your organization

48. 3b) Organization – Business/ Corporations Types of business/ corporation support Big or small Banks, department stores or ? Motivation of business support Corporate Social Responsibility programs Good for community or business Strategies Invite them onto the Board Seek in-kind gifts then recognize the business

49. 3c) Organization – Foundation Types of foundation support Company-sponsored or Private (family) Motivation of foundation support Community Support (e.g. UBS and community service) Historical roles (interest of founders) Strategies Research the foundations Approach a foundation through personal contacts

50. Factors for Philanthropic Fundraising Environment Donor focus Target Cases, Constituent/ Methods Strategic Communications Stewardship

51. Factors for Successful Fundraising Events Careful Planning Realistic Budget / Timetable Strong Volunteers Identify Target Audience Good Publicity No Conflict of Date Good contract w/Sponsors & Guests

52. Websites Association of Fundraising Professionals www.afpnet.org Institute of Fundraising, UK www.institute-of-fundraising.org.uk Certified Fund Raising Executive www.cfre.org

53. Suggested Reading AFP First Course in Fundraising AFP CFRE Review Course Greenfield, James M. The Nonprofit Handbook. 3 rd ed. John Wiley & Sons 2001 Buchanan, Peter McE. Handbook of Institutional Advancement. 3 rd ed. CASE 2000

54. Thank you !!