Download - Kansas Main Street Part 1: Fundraising 101
Fundraising 101Everything you wanted to know about
asking for money but were afraid to askMarc A. Pitman
www.FundraisingCoach.com
Kansas Main Streets
Fundraising 101
Goals for this Session the only 3 types of
communication you'll need
how many times to say “thank you” between solicitations
the difference between annual funds, capital campaigns, and endowments
a simple model for your setting up a fundraising effort
This is the big picture basics!
1. It’ll be O.K.
This is the big picture basics!
1. It’ll be O.K.
2. You can do it.
Constant Tension90% - 10%
But must BROAD range of givers so losing one is no great loss
3 Source of Funds: Giving USA 2006
3 Types of Communication
1. Cultivation
2. Solicitation
3. Stewardship
Cultivation the 2 local business ownerseducatingdating
Solicitation#1 reason people don’t give?
– They're not asked!
Solicitation#1 reason people don’t give?
– They're not asked!
Upgrade– one client started asking $1000 donors if
they’d move up to the $2500 category. Many did!
– Don’t feel compelled to justify the ask for more in a transactional sense. FR isn’t a business transaction.
StewardshipSay “thank you” 7 times between asks
(so go for multi-year pledges!)
How about other communication like phone calls?
one client wanted to make phone calls to– Survey about a new mailing strategy– Ask for a gift– Ask if there were anything that the person being
called would like prayer for
How about other communication like phone calls? one client wanted to make phone calls to
– Survey about a new mailing strategy– Ask for a gift– Ask if there were anything that the person being called
would like prayer for
I help my clients prune their purpose. I advised deciding on ONE purpose for the call– multiple choices confuse the caller and the called– it's fine if they all happen in the same call—just be sure
to have one reason for calling
3 Types of Fundraising Goals
1. Annual
2. Capital
3. Endowment
AF/OperatingThe most importantoften involves direct mail, phonathons,
and other annual “-athons” (walkathons, bikeathons, etc.)
keep this as unrestricted as possible
Endowment
The keel of the ship, it helps you weather tough times
Funds invested with only a portion of the interest thrown off used as income
Be careful to not over restrict! (Churches with Easter flowers but no money for plumbing)
Capital3 times of organization3 phases of solicitation3 campaign stages
3 times of organizationPreparing for a campaign in a campaigncleaning up from a campaign
3 phases of solicitationLeadershipSpecial/MajorCommunity
3 campaign stages feasibilityquietpublic
Feasibilitydefine goalsFormulate and test drive a case
statementmake a list of prospectscreate gift categories and put the
prospects into themNot necessarily the beginning of a
campaignMay recommend waiting a year of two
Quietquiet but not too quietLeadership/Special/Majordisciplined work, walking out the plan
Publicafter 60-75% of money is raised—
people give to winning teamsdon’t kick it off too soon20% of the money but 80% of the work
EndowmentHave your board make wise choices
about investmentHow much does it take for a donor to
endow a fund? (Help avoid the endowed flowers syndrome.)
Do bequests automatically go here?
3 Ways to Raise Money
Written mail web e-mail
– don’t ask for money in email without having a way to donate online
Phone– because often needs a script– be sure it’s more of a convenience for them not
for you (the nonprofit)
3 Ways to Raise Money
Events gets lots of people on board TIME INTENSIVE for possibly little return Risk offending donors I've heard that April and November are the
best months for events give them 3 years before deciding to
discontinue Determine your focus Clear plan & script EVERYTHING
Risk offending donorsEven though it may be their friends,
the organization could look bad when people don’t RSVP
LOT’S of phone calls by staff!
Give them 3 years beforeevents do have valuebut you need to create a culture and
fine tune them before giving up on them
Determine your focusUse “The Curly Credo”What's the “one thing” of your event?
What's the “one thing” of your What's the “one thing” of your event?event?CultivationSolicitationStewardship
CultivationHandshake Events
– Not for $ right now
– friends invite friends/org invites people they want to get to know
– Head (facts) and Heart (emotional hook)
or moving further into the house?
SolicitationLow Key FR Events
– Much like above but with• either the promise of follow up• or a pledge card at the event (I’m not a big
fan of this)
– Be clear in the invitation wording, subtle but clear
StewardshipSay thank youand DON’T ASK FOR MONEY
Clear plan & script EVERYTHING All should be tightly timed
– Often want to allow ample socializing time: friends brought friends
– but may want to go for the in-and-out, your-time-is-important approach
– Which ever you choose be intentional– Include times (even “2 minutes”)
Talking points for everyone– not to lock them in– just to give them direction– kids on the playground with a fence– It's helpful to put the event objective at the top of this
• people tend to forget in the rush of activity
3 Ways to Raise Money
F2Fmost effectivemost time consumingOr maybe not: you could organize a
silent auction to give you $10,000 (LOTS of work) or ask an individual over coffee.
Subtopic
3 Things to Measure
Setting up a FR Program
Major gifts focusThis is worth the effort (which is easier:
a $10k ask or a fashion show?Multiple year pledges make thanking
easier$1000/year is $84/month—about as
much as a phone bill might be
Direct mail Probably quarterly
– Aug/Sept, Dec, Feb/March, May– Companies have differing fiscal years– every 6 months makes sure you get the USPS
address changes
why not write these in advance? then you’ll just have to proof them.
decide on mail house vs. volunteers stuffing 4 page letter with reply envelope & buck slip
WebsiteBig Red FezCredit cards
– Do-it-yourself with SSL encryption
– or outsource to a vendor
Eventssome handshake events
– to grow your database
an annual event– silent auction
– gala/ball
– -athon (walk, bike, etc.)
an annual thank you
3 Sets of Tools
Databases Get the institutional memory in a common
place! Don’t be afraid of dumb questions. Most of
these sales folks seem to be techies without development experience. Ask until you get the answers you want.
Blackbaud http://www.blackbaud.com/ DonorPerfect http://www.donorperfect.com/ eTapestry http://etapestry.com/
Who are the current top 20 of givers to your nonprofit?LifetimeLast couple yearsBe prepared to be surprised.
P.Y.I.T.S.Put Yourself In Their ShoesWould you like to be asked the way
you are planning on asking? i.e. phonathons: who's convenience
are they for--the donor's or the nonprofit's?
The Quiz What are the only 3 types of communication
you'll need? How many times to say “thank you”
between solicitations? What’s the #1 reason people don't give?