Download - Fundraising Fundamentals
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Fundraising Fundamentals
Jeanne MinnicksJanuary 31, 2014
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To broaden awareness of the
fundraising/development profession by familiarizing you with the culture
of philanthropy, common terminology, key staff members and their functions, and best
practices.
Session Goal
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I. Overview A. The Importance of Philanthropy B. Why People Give, What They Expect & Don’t
Want, Other FindingsC. The Fundraising Environment
II. Fundraising’s Basic Elements
A. The Development TeamB. Primary Sources of ContributionsC. The Integrated Development PlanD. Ethics
III. Friend a Fundraiser
Agenda
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I. Overview
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Philanthropy means "love of humanity" in the sense of caring, nourishing, developing and enhancing what it is to be human.
It is experienced by both the benefactor and the beneficiary but in different ways. The former exercises his or her valuesby giving (time, resources) and the latter by receiving.
Philanthropy and charity are related but are not the same thing.
Charity relieves the pains of social problems. Philanthropy attempts to solve those problems at their
root causes.
A. The Importance of Philanthropy
Wikipedia
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Altruistic behavior: Acts that intentionally benefit another organism, incur no direct personal benefit, and sometimesbear personal cost.
Meet critical needs of an organization Give back to society Help those who are less fortunate Advance a cause they believe in
Altruistic ? . . . not so much Feel good Recognition Because they were asked
Advice: Don’t guess . . . ask questions!
*Howard , Anne W.; New Brain Study Hints at Why People Are Altruistic; Chronicle of Philanthropy; February 22, 2007
B. Why People Give . . .
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Prompt thank-you letters and calls
Opportunities to be engaged other than just monetary donations
Information on results achieved with their gift
Communications with staff whose programs they supported
Compliance with terms of the gift
B. What They Expect in Return . . .
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Gifts
High fundraising costs
Over-solicitation
B. What They Don’t Want
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The rich aren’t the most generous.
Insulated rich give less than those in economically diverse neighborhoods
Red states are more generous than blue states.
Conservatives give more than liberals, yet liberals sit on more non-profit boards
Tax incentives matter.
Regions of the country that are deeply religious are more generous than those that are not.
B. Other Findings
Gipple, Emily and Gose, Ben; How America Gives - America’s Generosity Divide; Chronicle of Philanthropy; August 19, 2012
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Marketing – employed by commercial enterprises to influenceprospective customers to purchase products.
Development – process by which nonprofits influence prospective donors to support their needs through gifts andgrants
C. The Fundraising Environment
Berendt , Robert J. and Taft, Richard; How to Rate Your Development Office; The Taft Group; Washington, DC; 1983
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C. The Fundraising Environment
Marketing Development
Research identifies and defines customers and their needs
Positions products to correspond to customercharacteristics
Dedicates a significant portion of budget to builds awareness through advertising & PR
support
Trains employees to sell
Research identifies prospects, giving potential & interests
Creates institutional case for support and giving opportunities that match donors’ interests
Communicates in a variety of ways to build awareness
Trains volunteers (board members & others) to solicit
Berendt , Robert J. and Taft, Richard; How to Rate Your Development Office; The Taft Group; Washington, DC; 1983
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Highly diverse and ubiquitous
C. The Fundraising Environment
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Goal and numbers oriented
C. The Fundraising Environment
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Relationship intensive
C. The Fundraising Environment
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Communications intensive
C. The Fundraising Environment
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Highly competitive
C. The Fundraising Environment
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Creative
C. The Fundraising Environment
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Slow to change
C. The Fundraising Environment
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II. Fundraising’s Basic Elements
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Executive Director Director of Development Director of Annual Fund/Annual Giving Major Gifts Officer Planned Giving Officer Grant writer Database Administrator Board of Directors
Development Associate/AssistantMembership CoordinatorSpecial Events CoordinatorVolunteers
A. The Development Team
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Key spokesperson & lead fundraiser for the organization Possess real working knowledge of the development
profession o Different constituencies, giving cycles, forms of giving, donor cultivation
and engagement, gift management and record-keeping, functions performed by various development department staff
Makes vital decisions about the place development holds within the organization’s operations
Measures effectiveness of existing and new programs in terms of short and long term goals for raising money
Evaluates effectiveness of development staff Understands the role of board members in fundraising and
engages them appropriately
Executive Director
Berendt , Robert J. and Taft, Richard; How to Rate Your Development Office; The Taft Group; Washington, DC; 1983
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The mythological “Fundraiser” . . .
What’s in a name?
Peer relationship with trustees and often deals with corporate and foundation officers. The title accords respect and should reflect the importance and
impact of the role.
Director of Development
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Primary role: to create a process of outreach to donors by organizing & using others to seek funds
Involved in the institutional planning process.
Multi-talented: Strategist TacticianFinancial planner MarketerParty planner Market researcher
Networker CompetitorTrainer CheerleaderDiplomat Psychologist News Junkie Communicator
Director of Development
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Prospects for & stewards individuals
Manages the Annual Fund and other individual-giving oriented initiatives, i.e. Giving Tuesdays, Day of Giving
Director of Annual Fund/ Individual Giving
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Annual Fund – a program that annually solicits a body of constituentsfor unrestricted contributions
Time consuming and expensive with relatively low return
Goal is to establish a giving habit and provide a basis for planned giving
Funds are in the form of cash and used primarily for ongoing programs
Typically directed towards individuals who receive multiple contacts during the fund period using a variety of methods
Most begin in the fall, conclude end of the tax year
Director of Annual Fund/ Individual Giving
The Center on Philanthropy at Indiana University – The Fund Raising School in partnership with the Bayer Center for Nonprofit Leadership and support of The Forbes Funds; Developing Donors; Indianapolis, IN; 2004
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Solicits funds for special needs o Programs and projectso Limited capital improvementso Equipmento To build or add to an endowment fund
Higher $ value “asks”
Major Gifts Officer
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Planned Gift
A legal vehicle to carry on the charitable values of an individual/family converting property into a program of good works which continue after his death.
Created during the donor’s lifetime but benefits do not accrue to the institution until some future time, usually at the donor’s death
Voluntary vs. involuntary philanthropy discussion
Planned Giving Officer
Englund, Gregory J.; Beyond Death and Taxes, Old Questions, New Answers; Estate Planning Press; Boston, MA; 1993
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Requires specialized knowledge - financial concepts, financial products, & charitable giving strategies to take best advantage of
existing tax laws
Defer to an expert
Great interpersonal skills and sensitivity in discussing delicate matters
Considerable expenditure of time & possibly expense
Process can’t be rushed
Timing of gift can’t be predicted
Planned Giving Officer
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Misleading title
Development - writing-intensive
Paper & on-line submissions - applications, proposals, letters, reports, and agreements
Variation among funders’ preferred formats
Standardization vs. customization
Versatile writing skills – creative, personalized, formal, structured, technical
Very different skill set from marketing & PR
Grant writer
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Donor information management and analysis
Database Administrator
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Fiscal stewardship & strategic advice about investments & financial direction
Input on specific management problems
Member recruitment
Expertise – law, finance, marketing, etc.
Personal gift
Fundraising support – gift solicitations, attendance at events
Advocacy
Board of Directors
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Individuals
Foundations
Corporations
Government Entities
Capital Campaign
B. Primary Sources of Contributions
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In 2012, largest single source of charitable contributions – 72% of $316.23 Billion
Sources of major and planned gifts
A strong individual base hedges risk
Many ways to engage – mass marketing, group, or one-one-one
Larger base provides the basis for specialized appeals & avoidance of donor fatigue
The Giving Institute & Indiana University Lilly Family School of Philanthropy
Individuals
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Instrumental in pressuring nonprofits to define with greater clarity their missions, goals, outcomes
Divorced from the emotion of giving
Arms-length relationship with grantees and applicants
Focus - goals & outcomes, sustainability, board participation
Primary contacts - executive and/or program officer
Structured application process
Foundations
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Corporate Relations or Community Affairs
Relationship-oriented; board contacts are key Focus - brand visibility (event sponsorships, naming rights) Selective Contractual Quid pro quo
Corporate Foundations – similar to private foundations
Focus - programs tied to corporate initiatives Primary contact – mid-level manager Structured application process
Corporations
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Funding availability fluctuates widely depending upon budgets and political climate
Contact with elected representatives is important; lobbyists helpful but expensive
Application process – similar to foundation process, but more cumbersome and less transparent
Government Entities
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Intensive program designed to raise a specified and large sum of money over a specified time period to meet capital needs (building construction, remodeling, expansion, equipment)
Elements: External consultant often hired to steer Usually multi-year Feasibility study Creation of the case for support Giving charts Prospect review to identify sources of funds Prominent leadership Volunteer committees Quiet & public phases “Pledge” system of giving
Capital Campaign
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A comprehensive plan to raise funds needed to support the organization’s mission
Identical to a business plan used in the for-profit world:o Mission & vision statemento Organizational descriptiono Plan goalso Market opportunity analysiso SWOT analysiso Strategies and tactics to be used in pursuing opportunitieso Resource needso Budget & detailed forecast o Measurement and evaluation
C. The Integrated Development Plan (A Best Practice)
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Development professionals serves the public trust by promoting ethical and effective fundraising practices by demonstrating values in all aspects of our personal, professional, organizational and public lives.
These values require that we: Observe and adhere to all relevant laws and regulations Build personal confidence and public support by being
trustworthy in all circumstances Demonstrate honesty in relationships Remain accountable for professional, organizational and
public behavior Are transparent and forthcoming in all dealings
D. Ethics (A Best Practice)
Association of Fundraising Professionals
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III. Friend a Fundraiser
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Understand that our focus is not on technology but on our mission
Recognize constraints of our limited resources
Add value to your nonprofit clients by understanding the functions of the individuals with whom you may deal
Remind us of the resources at your disposal – partnerships, training, etc.
Be an agent of change
Broaden your knowledge of the nonprofit sector
Create a culture of philanthropy in your workplace
Friend A Fundraiser
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Association of Fundraising Professionals Pittsburgh Planned Giving Council The Bayer Center for Non Profit Management The Forbes Funds Greater Pittsburgh Nonprofit Partnership PANO Chronicle of Philanthropy
Local Resources
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Thank You!
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Bibliography
Bell, Jeanne and Cornelius, Marla; Underdeveloped, A National Study of Challenges Facing Nonprofit Fundraising; A Joint Project of CompassPoint and the Evelyn and Walter Haas, Jr. Fund; Compass Point; 2013
Berendt , Robert J. and Taft, Richard; How to Rate Your Development Office; The Taft Group; Washington, DC; 1983
Englund, Gregory J.; Beyond Death and Taxes, Old Questions, New Answers; Estate Planning Press; Boston, MA; 1993
Gipple, Emily and Gose, Ben; How America Gives - America’s Generosity Divide; Chronicle of Philanthropy; August 19, 2012
Hall, Holly; Fiscal Crisis Reshaped How Donors Give; Chronicle of Philanthropy; September 22, 2013
Howard , Anne W.; New Brain Study Hints at Why People Are Altruistic; Chronicle of Philanthropy; February 22, 2007
Lewis, Nicole; Half of Affluent Americans Say Tax Policy Doesn't Affect Their Giving; Chronicle of Philanthropy; November 9, 2006
The Center on Philanthropy at Indiana University – The Fund Raising School in partnership with the Bayer Center for Nonprofit Leadership and support of The Forbes Funds; Developing Donors; Indianapolis, IN; 2004