fund raising leap board of directors
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FUND RAISING LeAp Board of Directors. Bonnie Osinski April 4, 2014. Objectives. We will have a shared understanding of some basic fundraising principles, especially those that relate to the LeAp board. We will have a common framework or language in which to address fund raising challenges - PowerPoint PPT PresentationTRANSCRIPT
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FUND RAISING LeAp Board of Directors
Bonnie OsinskiApril 4, 2014
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1. We will have a shared understanding of some basic fundraising principles, especially those that relate to the LeAp board.
2. We will have a common framework or language in which to address fund raising challenges
3. We will identify areas for building board fundraising skills
4. Each board member will leave with at least on doable fundraising task for us to review at the next meeting or solicitation role play
Objectives
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Basics
In 2012, private contributions totaled $316.23 billion
Foundations - 15% Corporations – 6% Bequests – 7% Individuals – 72%
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The Circles
The following slide was used to generate discussion at the meeting. I have added several slides, titled “The Circles” to explain some of the concepts represented by the concentric circles model.
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The Circles6
The stronger the central core; the stronger and more effective are the organization’s outreach and fundraising activities
All fundraising activities should be managed so they strengthen the core
The stronger the core; the stronger the message you can send – think of a radio signal going out from the center
Support Center 6/27/11 Bonnie Osinski
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The Circles
The farther away from the core; the more expensive it is to raise funds
The most efficient, cost-effective way to raise the largest gift is one person asking a peer in person.
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The Circles Money alone doesn’t get a funder into the
core; those in the core must have the capacity to reach out to others.
Government doesn’t make it no matter how much it provides
Foundations and corporations are closer in because they can help with outreach
The actual distribution of funding organizations and individuals across the circles will be different for each organnization
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The Circles Public relations is directed at the outer
core and the costs should not be factored into direct fundraising expenses or calculations of return on investment
Without good public relations and overall agency communications; the fundraiser has to spend more time working in the outer, more expensive rings
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Individuals The most reliable, cost effective source
of funds Validate your reason for existence Advocates for your cause Volunteer assistance Potential leaders Can leverage other support Your power base
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THE BOARD HAS TO RAISE MONEY!!!
SO GET OUT THERE AND START ASKING PEOPLE FOR MONEY
Too Scary
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The “Ask”
Actually a small part of an ongoing process Know the donor well Should never be considered a one time event Specific dollar amount Solicitors should be well trained and prepared The major gift prospect should not be
surprised by the reason for your visit
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FUND RAISING MYTHS Tax deductibility is a prime motivator Foundations and corporations give the most money People will give because yours is a good cause It’s all common sense We should be careful not to bother donors too much All we need to know is how wealthy a prospect is Philanthropy is decreasing We should back off when the economy is weak We can’t raise money without outstanding
brochures, videos and other materials.
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What is fund raising? The raising of assets and resources
from various sources for the support of an organization or a specific project.
Association of Fundraising Professionals
The planned promotion of understanding, participation, and support
Harold J. Seymour
The gentle art of teaching the joy of giving
Henry Rosso
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It’s not about the money• The money is a means to an end
• Fund raising is not a financial transaction
• The donor is not a cash machine
• It’s about relationships
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L I ALinkage
Interest
Ability
A prospect must have all three
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Linkage Interest Ability
We need to write to Bill Gates. Let’s review the Forbes 500 My neighbors have two children in public school My friend is a graduate student at Teacher’s
College Scientists should be interested in our programs My brother-in-law owes me I know the CEO of a big corporation
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Why donors give
They care about the cause They can make a difference They feel financially secure They trust that the organization will use
their contributions efficiently They are solicited by someone they
know and trust
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Why donors stop giving
Over solicitation No information about how the gift was used Little or no communication outside of
solicitations Household circumstances changed Priorities shifted to other causes Organization changed leadership or activities Try asking them why
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Donor centered fundraising Your organization is the means by which
donors and volunteers live out their philanthropic interests and aspirations-Simone Joyoux
Goal: A mutually beneficial relationship
The key is to discover what the donor is seeking
You find that out by building the relationship
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Getting a good start
The difference between acquiring a donation and acquiring a donor
How do we define success?
Emphasis on connecting with those who care about your cause
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Start where you are Board - staff - neighbors – beneficiaries –
former clients – alumni – etc. Ease the burden of soliciting your friends by
turning them over to another board member after the initial contact
Who cares about you? Who is interested in your work? Who benefits?
Research reinforces and informs, but is not a good place to start with people you don’t know.
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Getting closer
Donors who care and become involved are likely to work on your behalf
Those who care and work on your behalf are likely to become donors
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Cultivation events Targeted invitation list Advance planning by board and staff Compelling presentation about your work Educational seminar on your area of
expertise Many staff, board, supporters on hand to
give attendees individual attention Keep track of what you learn from attendees Follow up calls within a week
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Individual Meetings
Board member, CEO, program staff On site Invite to in-house event or class One-on-one lunch Ask their advice
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Direct solicitation
The result of cultivation over time Donors start by making smaller gifts and
build a stronger relationship Choice of solicitor is key Peer-to-peer is best for top level gifts; Who does the asking depends on what
you have learned about the donor
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Keep your donors
The first gift is the most expensive in terms of time and money
It costs up to 10 times more to reach a new donor than to successfully communicate with a current donor
Direct marketing by itself is ineffective as a retention strategy
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Keeping your donors
Major donors should get ongoing individual attention
Provide donors with many different ways to become involved with your organization
Learn all you can about your donors’ interests and the way they want to relate to you
A database that can manage the information we get from as many sources as possible is essential.
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Some key concepts
Value the relationship for its own sake
Consider individual philanthropy as an ongoing process that can involve different means of fundraising
Learn as much as you can about the donors needs LISTEN!
Communicate only when you are asking for money
Try to bring a donor around to your way of thinking
Get so caught up in techniques that the individual donor gets lost
DO DONT
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Possible board tasks Select at least two; current donors, prospects, a friend
who does not know LeAp, an artist who works with LeAp, and artist who doesn’t work with LeAp, someone you think should be interested, a corporate executive, a fellow employee, one of Ila or Alice’s long time donor friends, others for: Meeting Advice Impressions about LeAp Interest in learning more Interest in becoming more involved Referral to someone else who may be interested Why/why not
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Suggestions More contact / follow-up with existing donors Database for donor records Intern to manage donor database Better use of email and social media
Video / sound clip Manageable tasks for board members that do not involve asking
Calling donors / cultivate relationships Professional fundraiser (part-time )?
Senior, experienced, professional Robin Hood as possible funding source for fundraising start-up? Add this in the long-term strategic plan
Monthly email – content for board members to forward to friendsKeep growing this list