fund raising and donor relationship fundraising principles fundraising is not about money...

Fund Raising

and

Donor Relationship

Fundraising Principles

• Fundraising is not about money

• Communicate the need

• Provide the opportunity to give

• People give to people

• Look for relationships and friends

• Your best prospects are your existing donors

Fundraising Principles

• The Pareto Principle

• You don’t get what you don’t ask for

• Make it easy for donor to give

• Say Thank You

Why People Do Not Give

• Personal preferences• Contrary beliefs• Finances• Lack of information• Ineffective communication• Manner of asking• Relationship with the charity• Timing• Organisational apprehensions

Source : Giving USA Foundation

Source : Charities Aid Foundation, Charity Trends 2006

Giving Worldwide

Population – 6 billions

2003

• Individuals 65%• Govt./Statutory Bodies 17%• Foundations 9%• Companies 3%• Legacy 6%

Source: Resource Alliance-March 2004

Developing YourFundraising Strategy

Planning and Budgeting

• Assessing available resources.

• Targeting market opportunities.

• Selecting fundraising techniques.

• Determining resource needs- Staffing- Capital

Implementing the plan

• Requires leadership quality.

• Requires senior staff participation.

• Requires capacity-building.

• Requires specialised staff.

• Requires patience and persistence.

Evaluating progress

• Reporting benchmarks quarterly.

• Reviewing progress semiannually.

• Evaluating performance annually.

• Correcting course as necessary.

Keep in mind…..

• Fundraising is an art, not a science.

• Fundraising is about passion.

• Fundraising is about people.

• Fundraising is not about money: it is friendraising

Donor Pyramid

UpgradingUpgrading

SelectedFundraisingTechniques

Direct Mail AppealEvents

Corporate PartnershipOnline

Face to Face (F2F)School Advocacy & Value Education

Donation BoxSpace SellingGreeting Cards

Pay Roll GivingSupport From Government

Support From Foreign Funding AgenciesLegacies

The Function and Importance of DMA

Direct Mail Appeal

What is DMA• DMA is a direct marketing activity by

which you take your appeal to the people

• DMA also means sensitizing individuals/ organizations by both print and electronic media and solicit their supports.

• DMA is a very sensitive tool by which we try to touch the heart of a prospective donor.

• DMA means individualizing your appeal to your target population

Functions of DMA

• Raising Funds in a most cost effective manner.

• Servicing Donors in a most professional manner so that the donor does not hesitate to not only repeat his donation but also upgrade it.

• To be in constant touch with the individuals, banks, industry houses, trusts, customer service organizations etc. so that their support can be obtained for procuring databases and tie-up mailing.

Tool used to raise funds

• Direct Mailers.

• Obtaining authentic and proved databases.

• Piggy ridding for offsetting printing and postage expenditure.

Mailers-The concept behind them

To Create Awareness

• Mailer should contain facts which are authentic and transparent.

• A reference on the statistics of above facts i.g. 90 million people are Senior Citizens

• Supported by visual aides i.e. Pictures etc.

• Availability of tax exemption on donation.

• Telling a story so that it touches the heart of the prospective donor.

• A message to relate the above story with the ground situation.

• Designing a mailer with pictures and gadgets.

To Build Sympathy

Making the appeal a success

• Targeting the right people

• Timing

• The message and its authenticity

• Cost effectiveness

• Authentic and good database

MAILING PHILOSOPHY

• Contents of the Mailer.

• Types of Mailers.

• Mailing Methodology (Direct/Tie-up/ Electronic /Door to Door).

• Factors for Success/Failure Of Mailers.

Types of Mailers• General Purpose Mailers

– Sent through out the year– Contains information about the organisation, its

goals, an appeal and a reply coupon.• Festival Mailers

– Sent during a particular festival• Specific Purpose Mailers

– Sent for a specific purpose like earthquake, cyclone, epidemic out-break and special events etc.

• Chain Mailers– Could be specific or general mailer with a

provision for the receiver to suggest names and addresses of other persons who would be interested in our cause.

WHY PEOPLE RESPOND TO FUNDRAISING APPEALS

People send money because :

• You ask them to.

• They have money available to give away.

• They are in the habit of sending money by mail.

• They support organisations like yours.

• Their gifts will make a difference.

WHY PEOPLE RESPOND TO FUNDRAISING APPEALS

• You recognize them for their gifts.

• You give them tax concession.

• You enable them to “do something” about a critical problem.

• You help them learn about a complex and interesting problem or issue.

WHY PEOPLE RESPOND TO FUNDRAISING APPEALS

• They feel it is their duty.

• They believe it is a blessing to do so.

Different Mailers

EVENTS

• Raise maximum funds at optimum cost.

• Completed within a certain time frame.

• Gives scope for wide publicity to the work of the charity and those who aid it.

• There can be several special events in a year.

• Events can be small where Rs. 5 lakhs are raised like Ghazal Nites, Film Show, Christmas Party etc.

• Mega Events where funds Above Rs. 5 lakhs raised like Musical Nites, Film Star Cricket Festivals, Star Show, Celebrity Dinner, Auctions, Walkathon etc.

Planning an Event

• Events don’t JUST happen.

• Need to PLAN for resources & manpower.

• Need to spend money in order to GET more money for your cause.

Basic Check-list Special Committee and Volunteers

Day, Date, Time

Venue

Rates of the Tickets

Sponsors

Publicity

Chief Guest/Brand Ambassadors

Sale of Ticket

Benefits• To raise a sizable amount of money for the Organisation.

• Creating good Public Relations & Awareness.

• To make the work of the organisation more visible & makes the activities of the organisation prominent to the public eye. Cont..

Benefits• Good-will and Image building for the cause.

• As sponsors the corporate sector gets involved hence chances of future partnerships is facilitated.

• By involving well wishers in helping conduct the event so that they can become dependable future volunteers.

• Through the press publicity the Government officials and decision makers at different levels get to know the organisation and could be more sympathetic when approached of assistance.

Corporate Fundraising

FOR AN NGO CORPORATE FUNDRAISING IS RAISING RESOURCES FROM

ORGANIZATIONS. (BOTH PRIVATE & PUBLIC)

FOR A CAUSE OF SERIOUS CONCERN TO SOCIETY.

WHY ? Substantial resources can be raised by tapping

profitable corporates and socially responsible

organizations.

Win –win situation is created through cause

related marketing.

Low expense to revenue ratio.

AVENUES FOR CORPORATE FUND RAISING

Corporate Donation- common for certain type of donors.

Cause Related Marketing –companies contributing a percentage of their sales to Charity.

Sponsorships –for events in cash and kind gives corporates good publicity.

How to approach new corporates

Build a database of corporates.

Segregate corporates by turnover/profits.

Scan newspaper/ business magazines.

Short-list corporates who are sensitive to our

cause.

Cont….

How to approach new corporates Find out the contact person in the organization.

- For a grant or corporate donation approach the Chief Executive or Head HRD.

- For a CRM tie-up approach the Chief Executive or Head Marketing.

- In a region approach the Regional Head.

For the meeting with the influencer

- Do some homework on the organization if possible.

- Carry a docket consisting of the annual report,newsletter, brochures.

- Carry a list of proposals.

- Listen for the corporates agenda.

How to approach new corporates

- Target their agenda with a proposal

- Find out who is the decision making person.

- Try and obtain information on the corporate’s budget for Corporate Social Responsibility.

- Highlight how this helps the NGO.

- Emphasize why a tie-up with NGO is beneficial for the corporate.

How to approach new corporates

- Make a presentation to the CEO/Senior Manager of the corporate.

- Go back with specific proposals of interest to the corporate (ideally within two to three days of the meeting).

- Follow up on the status regularly, till conclusion.

How to approach new corporates

SELL THE BENEFITS

- How being socially responsible enhances the image of the corporate.

- Give publicity through press, newsletters etc.

- Corporate can also use publicity to get an edge over competition.

- Tax benefits.

Fundraising through Internet

International fund raising trends and wisdom predicts that online within a few years will emerge as the largest charity fund raising platform. This has its own challenges, as the medium is highly interactive and the donor has the advantage to remain involved 24X7.

This requires a greater beneficiary focus in our interface with all stakeholders.

ONLINE FUNDRAISING

Face-to-Face (F2F)

This is a form of direct marketing where you get into an one-to-

one interactive session.

School Advocacy & Value Education(SAVE)

METHODOLOGY

Collect information pertaining to the school

a) Names & complete addresses of the schools. b) Names of the principals. c) Types of schools: whether Govt./ Govt.

aided/ Private schools.

 Preparation of ground for school fund raising by creating awareness in the target area. First letter It should give information about a) The organisation b) The beneficiary projects c) The proposed event

Talk with Teachers • Provide a good deal of information

about the organisation• Make them feel important• Request them to motivate the students• Explain various forms used for the event

Supported events :     a. Walk / Rallyb. Cyclingc. Meditationd. Fancy dress competitione. Singing competitionf. Essay writing competitiong. Painting competitionh. Quiz Competitioni. Debate Competition

Prize distribution 

• Make the prize list in advance and show it to the school Principal so that omissions are corrected

• Prepare the certificates nicely• Try to coincide PD with some important

school function• Try to arrange some VIP to give away the

prizes• Pay visit to the school to find out

discrepancies, if any

Donation Box

Donation Box- The function

• Increase Visibility

• Collect small donations

Placing a Donation Box

• At a place where it is visible

• At a place where people have spare change/ money with them.

Maintenance of Donation Box

• Strict supervisory check on the deployment of boxes.

• Donation box collections should be made regularly; once a fortnight from high yielding areas and once a month from other areas.

Greeting Cards

Greeting Cards

• An excellent Medium for spreading awareness about the Organization & its cause.

• Provides openings to establish a relationship with Corporates & individuals which can be nurtured to help raise individual and corporate donations.

• Excellent tool for raising funds.

Pay Roll Giving(PRG)

• This is an unique method of fundraising. The employees of an organisation get involved with the social cause and at the same time get the benefit of tax exemption.

Pay Roll Giving

• Contribution can be deducted from their salary on monthly basis (a small amount).

• It does not effect the corporate functioning at all.

• At the end of the year Tax exemption certificate can be given for the full amount.

Pay Roll Giving

Legacies

• Quite a few donors/ supporters wish to donate their immovable property for the use of some noble causes.

• Depending on the requirement and suitable use a charity/NGO can receives such gifts provided it is rightfully used.