FUNDAMENTALS OF FUNDRAISING

PER STENBECK

“May you live in interesting times”

- an old Chinese greeting

A WORLD IN RAPID TRANSFORMATION

• Democracy

• Market economy

• Economic growth

• A middle class has emerged

• “A giant awakens”

• More and more countries

• Regionalisation

• The global village

• A global youth culture

• Environmental break down

10 BASIC PRINCIPLES OF FUNDRAISING

1. Fundraising is not about money

2. Fundraising is a warmhearted affair

3. People give to people

4. Make your donor your friend

5. The Pareto principle

6. Make it easy for the donor

7. You don’t get what you don’t ask for

8. Be opportunistic

9. Fundraising techniques are universally applicable

10. Say “thank you”

TWO FUNDAMENTAL FUNDRAISING STRATEGIES

• Little from many

• Much from few

LITTLE FROM MANY

The use of mass communication to target big audiences asking for a relatively small gift such as

• One-off cash appeals through DM, press ads, TV spots etc

• Regular monthly donors recruited directly or through cash donor upgrading (often using the phone)

For success you mostly need either a well-known brand or a particularly attractive cause

MUCH FROM FEW

Fundraising from strictly limited and carefully targeted audiences asking each individual donor for a substantial amount such as

• Major gifts from wealthy private individuals

• Legacies

• Corporate partnerships

• Grants from trusts and foundations

WHICH STRATEGY RAISES THE MOST FOR MOST WESTERN CHARITIES, LITTLE FROM MANY OR MUCH FROM FEW?

• Little from many 70%

• Much from few 30%

LITTLE FROM MANY - UNDER THREAT?

• Competition is increasing

• Good lists are getting harder to find

• For DM costs for postage and printing are increasing

• Lower response percentage

• Stagnating average gifts

• Less donor loyalty leads to lower lifetime value

REVITALISING LITTLE FROM MANY

• Offer involvement – combine advocacy and fundraising

• Report back better

• Listen to your donors

• Be innovative – take risks

MUCH FROM FEW – THE SAVIOUR?

• The millionaire explosion

• Venture philanthropy – the billionaire benefactors

• CSR

THREE SOURCES TO TAP FOR MONEY

• Private individuals

• Companies

• Trusts and foundations

DONOR PYRAMID

• Prospects

• One off donors

• First renewal

• Regular donors

• Major donors

• Legacy donors

NINE REASONS TO GIVE

• Bad conscience

• Empathy

• Peer pressure

• Social acceptance

• Regulate a debt

• Donor self interest

• Tax deductability

• Religious belief

THREE REASONS NOT TO GIVE

• I give to others

• Fear my gift will not reach

• I have not been asked

ETHICS IN FUNDRAISING

• Difference between ethical (greek) and moral (latin)= habit

• Right and wrong

• Saying no to a gift

• If counterproductive, say no

• Mother Teresa / Greenpeace

• “Death”

COSTS IN FUNDRAISING

• Cost / income ratio

• SIK in Sweden = 25% or less to admin and fundraising

• Reserves (size, risk, ethical investment)

THREE HISTORIC EVENTS

• Live Aid 1985

• Asian tsunami 2004

• Obama´s first campaign 2009

THE NUMBER ONE FUNDRAISING CAMPAIGN IN SWEDEN EVER

• The 1912 campaign to finance the building of the battle ship “Sverige” raised 115 million SEK equal to 1.8 billion SEK today

MY THREE GOLDEN RULES OF FUNDRAISING

• Be ready!

• Be bold!

• Be passionate!