A fundraising toolkit
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Transcript of A fundraising toolkit
A FUNDRAISING TOOLKITBonnie Osinski 6/27/11
Basic Assumptions 2
It’s not about the money
Money is the means to an end
The end is fulfilling your mission
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Basic Assumptions4
CIRCLES OF INFLUENCE
The stronger the core; the more effective the organizations All fundraising activities should be managed so they
strengthen the core The stronger the core; the stronger the message you can send The further away from the core; the more expensive it is to
fundraise Public relations is directed at the outer core and should not be
factored into direct fundraising expenses 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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The Board of Directors 5
You will never reach your organization's full fundraising potential without a board that supports and participates in fundraising
All members give to the best of their ability and all support fundraising in some way
Leadership is sincerely and actively working to add board members who can support the organization’s fundraising.
The board and the chief development officer work together as a team
A CEO who discourages a strong board will hold the organization back (usually a founder)
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Basic Assumptions
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Where you get your money and what you have to do to get it has determines the
nature and culture of your organization
Types Of Support7
RESTRICTEDDonor specifies the use
If you accept the money, you are legally obligated to comply
Make sure the specified use is in line with your mission and strategic plan
Best to turn it down if it is not a fit
Only a donor can legally restrict contributed funds
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Types Of Support8
UNRESTRICTED The most desirable type of support Enables you to be flexible and responsive to changing
conditions and client needs Your best bulwark against a turbulent, unpredictable
environment Virtually impossible to run a strong and effective
organization without a high level of unrestricted supportOPERATING
Generally a sub-set of unrestricted Can also be restricted funds for specific or one-time
operating costs e.g. Computerization, financial systems, fundraising start-up costs
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Types Of Support9
CAPITAL Construction, purchase of facility or renovation Generally a campaign with specified goals and time limits
ENDOWMENT Best way to insure long-term financial health Should be big enough to generate significant annual income Can it be too big? Less appealing campaign than bricks and mortar Can be built with planned giving income, much of which cannot
be projected in annual operating budgetsComposed of donor restricted and quasi-restricted funds
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Reliability/Autonomy10
RELIABILITYHIGH MEDIUM LOW
AUTONOMY
HIGH
Earned income; Endowments; Memberships; Small/medium individual donors
Fees for services; Event ticket purchasers
Foundation operating grants;
MEDIUM
Major individual contributions; corporate charitable contributions;
Corporate sponsorships
LOW
Ongoing government contracts; Third party reimbursements;
Government project grants; Foundation project grants;
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Sources11
GOVERNMENT Contracts and grants Really big money; often renewable over the long run Political realities make it less stable that it appears Lots of restrictions, paperwork, reporting Can suppress the impetus to build an effective constituency You can’t use government operating funds for fundraising
The Process: Following detailed instructions in lengthy and complex RFP’s Funding agency tells you what they want Proposals often voluminous Complex budgeting process Reporting and evaluation is different for each grant
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Sources
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GOVERNMENT EFFECTS
Creates and organizational culture that does not support private funding
Organization does not build a fundraising board; difficult to get support when moving to other funding sources.
Program culture that is reactive, looks to fulfill the requirement of the funding agency
Difficult to build projects for foundation proposals Culture is not open to letting individual donors in
Sources13
PRIVATE FOUNDATIONS Mostly restricted grants in their area of interest Not meant to be an ongoing source of support Grants much smaller than government; paperwork less onerous Lack of contacts should not discourage application; valuable relationships
can build once a grant is awarded Potential for flexibility in project design within guidelines
THE PROCESS Creativity to develop & implement projects that meet your needs and
funder’s priorities Building relationships with program officers over time Plan to leverage time limited grants for future benefit – capacity building;
success story for other donors; learning that will inform programs Research to find a match
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Sources
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PRIVATE FOUNDATION EFFECTS
Short term, mostly restricted, grants create management challenges that have to be offset by other funding sources
Small size of most awards can require a patchwork of grants to support a project
The process of project development that goes into creating a proposal that works for the funder as well as the grantee fosters valuable management skills. Differentiating between outcomes and process Defining the need Evaluating results
Sources15
CORPORATIONS Corporate self-interest is key Source of financial, in-kind, sponsorship, matching and volunteer
support Partnership and joint marketing possibilities Renting your good name; Compatibility; Seeking connections with your
constituency Excellent source of board members Multiple entry points and interests possible within the same corporation
THE PROCESS Can be very similar to foundation grantsmanship The more contacts, the better –board networks important Research is different from foundation research Developing joint marketing and sponsorships can involve complex
negotiationsSupport Center 6/27/11 Bonnie Osinski
Sources
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CORPORATE FUNDING EFFECTS
Greater visibility Opportunity to build relationships with potential major
donors and board members Responsive to a constituency that is very different from
government and foundation funders Building the skill and culture that supports making the
markets/capitalism work for you Requires board members who can make connections and
support the effort
Sources17
INDIVIDUALS Source of more than 80% of all philanthropic funds Your best bet for long-term strength and survival; reliable insurance
against fluctuations other funding sources Investors; advocates for your cause – your power base Best source of ongoing, unrestricted funds Only source of planned gifts; best way to build endowment Most cost effective at major gift levels
THE PROCESS Research essential Requires ongoing maintenance of relationships and stewardship Best returns come after years of cultivation. Direct mail for general donors – entry way for major donors –
expensive start-up On-line email and social networking present cost-effective options Events can bring in some new donors; reinforce & cultivate others
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Sources
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INDIVIDUAL FUNDING EFFECTS
Parallel to taking a private company public Open to a new kind of scrutiny Taking donors to higher levels of giving requires giving
them opportunities for greater involvement with the organization
Effects are felt throughout the organization Requires board members who can make connections and
support the process
Sources
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INDIVIDUALS
It’s not about the money
It’s all about relationships
Tools21
SPECIAL EVENTS Costly form of fundraising; staff time required is often
underestimated Can be good for building visibility Means for volunteer support and involvement; opportunity for
donor cultivation Can bring in some new donors Can build a constituency that is loyal to the event, rather than
the organization or it’s missionTHE PROCESS Determine level of substantial support from board members and
current supporters- more than 50% of gross revenue required Consultants well worth it for large events; free staff to focus on
donor cultivation and solicitation You are not selling tickets
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Tools22
DIRECT MAIL Can be a very reliable support of annual cash income A successful mass mail program usually loses money for the first
three years; Pays off when a critical mass of repeat donors is reached
Becoming more costly as postage and other costs increase Entry point for major and planned gift donors Not all organizations or causes can be successful in the mail Consider starting an in-house mailing program with contacts
generated by board staff, and other supporters
THE PROCESS Get professional help to develop competitive text and graphics –
even for in-house or donor renewal mailings Don’t even think about donor acquisition – renting lists – without
hiring a professional direct mail consultant You must mail several times a year to be successful
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Tools23
MAJOR GIFTS Most effective way to raise the largest gifts and the lowest costRequires time and effort to cultivate and upgrade donorsResearch and moves-management essentialVery strong advocates and solicitorsBoard must be intensely involvedBest indicator of long-term organizational strength
THE PROCESS Regularly mine general donor lists from direct mail, events, on-line,
etc. for major gift prospects Research is important Contacts from board members and other major donors Continuous cultivation and stewardship required Determine and respond to donor’s interest in becoming more involved
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The Ask
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The right solicitor asking the right prospect for the right amount of money for the right reason at the right time
10% of the major gift fundraising process The result of long term cultivation Not a single event Most of the time – the result of teamwork Many sources of training and literature to help build
skills Misused measures – annual revenue goals – individual
staff credit
Tools25
PLANNED GIVING The desired, ultimate result of individual giving programs Not limited to major donors Gifts made from assets, not income Require long-term planning on the part of the donor, preferably with the
help of a financial planner or attorney Bequests are the most common source; not the most beneficial for
donors of substantial means The ultimate payoff does not correspond to the costs incurred in a given
year
THE PROCESS Any organization can remind all donors about making bequests in
newsletters, web sites, targeted mailings, etc. Maintain awareness of the possibility of planned gifts as part of the
major donor process Stay on top of general tax law as it applies to philanthropy Investing in outside expertise yields the best results
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Tools26
CAPITAL/ENDOWMENT CAMPAIGNS Time-limited campaigns to reach specified goals Requires existing supporters to make significantly larger gifts Organization must be able to maintain annual giving income Reaching the goal requires that at least 10% of income comes
from one or two donors Depends on an existing major donor base Bricks and mortar tends to be more popular than endowment
THE PROCESS Outside counsel is highly recommended; feasibility study can
make a difference Campaign chair and committees essential Start bringing in lead gifts as soon as possible Silent phase until lead gifts and half the income is committedSupport Center 6/27/11 Bonnie Osinski
Tools27
INTERNET Effect on fundraising is still evolving – not significant as
direct source of funds Good web site can be a source of on-line contributions New prospects check websites before making gift
commitments Effective ongoing donor cultivation – newsletters, event
announcements, press releases, photos, etc. Social media can be effective for visibility and reinforcement Appears to be low cost; very labor intensive Studies show combination of direct mail & internet is
especially effective
THE PROCESS Get on the learning curve and move up fast – periodicals,
newsletters, training, consulting Create an effective web site - expensive
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The Plan28
All the tools have to come together into an integrated, coherent plan
Fundraising cost/benefit analysis Budget, staffing, and organizational culture Do we have the necessary skills and knowledge in-house? Staff or consultants
Develop a calendar of activities for the year, keeping in mind:cash flowstaffingthe organization’s programmatic and administrative planning
Plans and budgets serve as important political documents: use them to get leadership and staff buy-in.
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More tools
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Your skills and experience – fundraising and nonprofit management
Education, training Keeping up with the latest information and research Skills for dealing with board members, staff, clients, donors
– listening is key Public relations and communications Writing Professional organizations and contacts The mission and reputation of your organization Organizational support
Let’s Get Real30
What will work best for my organization?
Can I identify immediate next steps?
What barriers do I face?
What changes can I make?
What is beyond my control?
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Where to Get More Information
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Other training sessions Books, articles, electronic sources Consulting services, other sources Keep up with the field
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