Fundraising Back Office Show

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Presentation for South Shore Grants on March 4, 2011. Topics including managing fundraising information, processing gifts, and regulatory requirements.

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Fundraising Back Office Show

  1. 1. Organizing <br />the <br />Fundraising Back Office <br />March 4, 2011<br />Tim Mills-Groninger<br />South Shore Grants<br />
  2. 2. Goals and outcomes<br />Who you are and <br />Why you came<br />Ground rules: Interrupt, there are no silly questions<br />Difficult problem: I have a friend who…<br />Introductions<br />
  3. 3. Fundraising<br />Soliciting support<br />Advancement Services<br />Back office functionality<br />Managing donor and prospect information<br />Receiving, Recording, and Receipting gifts<br />Analysis: explaining the past and predicting the future<br />Insuring compliance<br />Mapping the Universe<br />
  4. 4. Why Individual Giving is Important<br />Money<br />Creates a deep pool for major gifts<br />Proof of community support<br />
  5. 5. Gifts by Source<br />Scale = billions<br />
  6. 6. Gifts by Destination<br /> <br />http://www.givingusa2010.org/<br />
  7. 7. Donors<br />People who have made a gift<br />Prospects<br />All carbon-based life forms except for above<br />Types of Individuals – Part One<br />
  8. 8. Connection <br />Who they are and how they relate to your organization<br />Capacity<br />How much they can give<br />Commitment<br />If not you, who? How they relate to the cause<br />Types of Individuals – Part Two<br />
  9. 9. Warning: Desire ≠ ability<br />Cost of research<br />Cost of data entry<br />Your ability to utilize information<br />Demographic information<br />
  10. 10. Name – easy<br />Address(s) – kinda easy<br />Age – depends<br />Phone, email – depends<br />Family/Social relationships – surprisingly hard<br />Demographics<br />
  11. 11. Ask the donor<br />Ask their friends – peer screenings<br />Participation data<br />List appends<br />Demographic Resources<br />
  12. 12. Will we really use this?<br />Is it legal? (probably) <br />Ethical? (depends)<br />What is the ROI?<br />Demographic Questions<br />
  13. 13. Prolific Greek writer<br />Known to you, but not disclosed<br />Most common process<br />Importance of non-disclosure and confidentiality<br />Unknown to you<br />Small gifts – not a problem<br />Larger gifts – get your lawyer involved<br />Anonymous<br />
  14. 14. Irrevocable transfer of an asset without reciprocal consideration to the donor<br />Keyword: Quid Pro Quo<br />Benefits broad population<br />Defining the Gift<br />
  15. 15. Last entity to control the resource<br />Name on the account<br />Soft credit of related parties<br />Third party processors<br />United Way<br />Network for good, etc<br />For profit v. nonprofit<br />Defining the Donor<br />
  16. 16. Publications 526 and 1771<br />Amount received <br />Disclosure of Fair Market Value (FMV) of benefits received<br />Optional: Date of Control<br />Avoid tax advice<br />Key IRS Issues<br />
  17. 17. Sample Receipt<br />
  18. 18. A legal and enforceable promise (contract)<br />Hard to enforce<br />DAF problems<br />Write down/off<br />Pledges<br />
  19. 19. Date of control<br />Cash – in hand<br />Check – deposit<br />Credit card – transaction clears<br />Fees<br />Processing and related are your cost of business<br />Will confuse some credit card donors<br />Cash Gifts<br />
  20. 20. Describe the property received<br />Decline to assign value<br />If pressed, say “which you assigned a value of $...”<br />Partial interest issues<br />Stock and Other In-Kind<br />
  21. 21. Legal, accounting, etc<br />Not a gift<br />Worth a thank you<br />Work around – pay them, and let them write a check<br />Gifts of Service<br />
  22. 22. Support for Annie to go to X<br />Use of vacation house for silent auction<br />Decline of an honorarium<br />Gifts to a club on your org’s behalf<br />Silent auction item with no published value<br />A company’s name and URL in printed program<br />Let’s Play Gift or Not a Gift<br />
  23. 23. Three day deadline<br />Threshold? Try 1₵<br />Include appropriate thank you<br />Processing and Receipting<br />
  24. 24. Memorials/In honor of<br />Conversion to annual giver opportunity<br />Soft credit<br />Spouse, employer, influencer<br />Matching<br />Mainly opportunistic<br />Appends are available, but consider ROI<br />Other Record Keeping <br />
  25. 25. Online<br />Direct Mail<br />Individual solicitation<br />Special Events/Auctions<br />Raffles <br />Contracts, trusts, etc.<br />Gift Vehicles<br />
  26. 26. What you’ll take<br />What you’ll refuse<br />Who decides<br />Gift Acceptance Policy<br />
  27. 27. Gift accounting v. financial accounting<br />Reconciliation at deposit level<br />No need for individual detail<br />But many accountants insist<br />Shared credit for net change of non-gift contributions<br />Accounting<br />
  28. 28. Who will use?<br />ROI?<br />Selecting Fundraising Software<br />
  29. 29. Buy<br />Build<br />Rent/SaaS<br />Software Options<br />
  30. 30. Local installation<br />Tendency to over-buy<br />Worthless without training<br />Licensing (Buy)<br />
  31. 31. Cheaper long-term<br />Mature off-the-rack market<br />User groups and other support options<br />Pros of Purchasing<br />
  32. 32. Underestimation of upfront costs<br />Lack of custom fit<br />Overestimation of product sophistication<br />Cons of Buying<br />
  33. 33. Raiser’s Edge/Donor2<br />DonorPerfect/ResultsPlus<br />Giftworks/eTapestry<br />Popular Products<br />
  34. 34. Exactly what you need<br />Tendency to under-plan<br />Development is training<br />Build – Custom Development<br />
  35. 35. Custom fit<br />Cheapest solution per feature<br />Forces complete process analysis<br />Pros of Building<br />
  36. 36. What you said, not what you meant<br />Feature creep = most expensive solution<br />Frankenstein-like monster kept alive by moody contractors or staff<br />Cons of Building<br />
  37. 37. In house: FileMaker/Microsoft Access <br />Consultant: Using above products<br />But what do you care?<br />Build Options<br />
  38. 38. Software as a Service or “The Cloud”<br />Lowest up-front investment<br />Same buy/build issues<br />SaaS<br />
  39. 39. Low monthly rate <br />Backup and technical issues outsourced<br />Use anywhere<br />Pros of the Cloud<br />
  40. 40. Most expensive option over long-term<br />Provider-driven upgrade schedule<br />Beneath the hype is just software<br />Cons of SaaS<br />
  41. 41. Saleforce.com<br />DonorPerfect<br />eTapestry<br />SaaS Options<br />
  42. 42. Constituent Relationship Management – CRM<br />Social networking and engagement<br />Beyond Fundraising<br />
  43. 43. Promote laziness: dupe check early<br />Address correction request<br />Adhere to standards<br />Eschew secret lists<br />Data Hygiene<br />
  44. 44. Celebrating uniqueness<br />Too much overlap<br />Idiosyncratic history<br />Constituency and Other Coding<br />
  45. 45. Donor/solicit<br />Board<br />Connection<br />Capacity<br />Commitment<br />Good Codes<br />
  46. 46. Former Board<br />Event interest<br />Too narrow of a connection<br />Bad Codes<br />
  47. 47. Confidentiality Statement<br />Physical – desktop and files<br />Network<br />Application<br />Security<br />
  48. 48. IRS<br />HIPPA <br />FERPA<br />PCI<br />State Registration<br />Compliance<br />
  49. 49. Ibid: Gift Acceptance Policy<br />Gift processing guidelines<br />Data governance standards<br />Cross training<br />The Advancement Services Plan<br />
  50. 50. Indentify gaps – quality and standards<br />Commit realistic staff and financial resources<br />Involve the development committee<br />Check your work/come up for air<br />Homework<br />
  51. 51. Thank You<br />

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