Boards and Fundraising Boards and Fundraising Carole J. Pence, MICarole J. Pence, MI

PresidentPresidentPence ConsultingPence Consulting

906 228 2972906 228 2972906 228 2972906 228 2972cpence@aol.comcpence@aol.com

www.penceconsulting.comwww.penceconsulting.com

Indiana University, The Fund Raising School MaterialIndiana University, The Fund Raising School MaterialUsed With Permission Used With Permission

Fundraising is the gentle Fundraising is the gentle art of teaching the joy of art of teaching the joy of

giving.giving.giving.giving.-- Hank RossoHank Rosso

The Fund Raising CycleStarts with Awareness of Marketing Principles

Examine the CaseDefine

Objectives

Prepare Needs Statement

Analyze Market Requirements

Expand Volunteer Corps

Solicit the Gift

Renew the Gift

Requirements

Involve Volunteers

Validate Needs Statements

Evaluate Gift MarketSelect Fund

Raising Vehicle

Prepare Communication plan

Volunteer Corps

Prepare Fund Raising Plan

Identify Potential Giving Sources

Foundations$38.5212.6%

Bequests

Corporations$15.6195.5

2007 CONTRIBUTIONS: 2007 CONTRIBUTIONS: $306.39 BILLION $306.39 BILLION

BY SOURCE OF CONTRIBUTIONBY SOURCE OF CONTRIBUTION

Individuals$222.8975.6%

12.6%Bequests$23.15 7.6%

5.5

Source: Giving USA Foundation™ / Source: Giving USA Foundation™ / Giving USA 2008Giving USA 2008

Individuals$229.0374.8%

Foundations$27.739.1%

2007 CONTRIBUTIONS: 2007 CONTRIBUTIONS: $306.39 BILLION BY $306.39 BILLION BY

TYPE OF RECIPIENT ORGANIZATIONTYPE OF RECIPIENT ORGANIZATION

Environment$6.96

International affairs$13.224.3%

Religion $102.3233.4%

Unallocated giving $23.67 7.7%

Public-society benefit$22.657.4%

Source: Giving USA FoundationSource: Giving USA Foundation™™ / / Giving USA 2008Giving USA 2008

$6.962.3%

Arts, culture, and humanities

$13.674.5%

33.4%

Education$43.3214.1 %

Human Services$29.649.7%

Case ComponentsCase Components

Case ComponentsCase Components Must ArticulateMust Articulate

Mission Awareness, insight to problemGoals Desired achievement

Page 1 of 2Page 1 of 2

Goals Desired achievementObjectives What’s in placePrograms Service to people (stories)Governing Board Character, quality of

organizationStaffing Qualifications, strengths

Case ComponentsCase Components Must ArticulateMust Articulate

Facilities, Equipment Advantages, Strengths, Effectiveness

Finances Validate Need for PhilanthropyPlanning, Evaluation Documents, Commitments,

Page 2 of 2Page 2 of 2

Planning, Evaluation Documents, Commitments, Strengths, Impact

History Heroic Saga, Credibility

Case QuestionsCase Questions

�� Why does the organization exist?Why does the organization exist?�� What services do you provide o meet the What services do you provide o meet the

need or solve the problem?need or solve the problem?�� Why should prospective donors Why should prospective donors �� Why should prospective donors Why should prospective donors

(individuals, corporations, foundations) (individuals, corporations, foundations) provide gifts?provide gifts?

�� What benefits do donors get for giving?What benefits do donors get for giving?

Market ValidationMarket Validation

�� If the fundraising markets do not If the fundraising markets do not understand the importance of the needs understand the importance of the needs being address you will have difficulty being address you will have difficulty fundraising.fundraising.fundraising.fundraising.

�� If the market doesn’t know what the If the market doesn’t know what the nonprofit needs or that it even exists it is nonprofit needs or that it even exists it is almost impossible to raise money.almost impossible to raise money.

Some Important DefinitionsSome Important Definitions

�� Cultivation is a method of making Cultivation is a method of making prospects aware of the need for an prospects aware of the need for an organization’s services and for their organization’s services and for their support.support.support.support.

�� Donor acquisition is the organization’s way Donor acquisition is the organization’s way of saying the solicitation was successful of saying the solicitation was successful and we acquired a new donor.and we acquired a new donor.

�� Donor appreciation: Expressing thanks!Donor appreciation: Expressing thanks!

Thinking Like A DonorThinking Like A Donor

�� Donor’s want to feel like they are investing Donor’s want to feel like they are investing in a cause rather than giving their money in a cause rather than giving their money away.away.

�� Having made a decision to give, a donor Having made a decision to give, a donor �� Having made a decision to give, a donor Having made a decision to give, a donor wants to believe that everyone in the wants to believe that everyone in the organization knows who they are and what organization knows who they are and what they did to support the cause.they did to support the cause.

The Development ProcessThe Development Process

Planned GiftLinkage Big GiftInvolvement MajorAdvocacy Special GiftAdvocacy Special Gift

Upgraded Donor------------------------------------------------

Repeat Donor LinkageDonor Ability

Prospect Interest

The Development ProcessThe Development Process

�� Identify ProspectsIdentify Prospects�� Qualify prospectsQualify prospects�� Convert Prospects into donorsConvert Prospects into donors�� Increase their last giftIncrease their last gift�� Increase their last giftIncrease their last gift�� Secure special gift (amount will vary)Secure special gift (amount will vary)�� Secure major gift ($5,000, $10,000, 1,000,000)Secure major gift ($5,000, $10,000, 1,000,000)�� Secure big gift….biggest lifetime gift (one time)Secure big gift….biggest lifetime gift (one time)�� Secure planned giftSecure planned gift

Special/Major Gift Donor

Capital Donor

Planned Gift Donor

Universe of Prospects

First Time Donor

Renew/Upgraded Donor

Ladder of EffectivenessLadder of Effectiveness

�� Personal: facePersonal: face--toto--face (team of two or face (team of two or one person with relationship)one person with relationship)

�� Personal letter (on stationary with Personal letter (on stationary with telephone followtelephone follow--up)up)

�� Personal telephone call (with mail Personal telephone call (with mail followfollow--up)up)

�� Personalize letterPersonalize letter�� Personal ePersonal e--mail solicitationmail solicitation

Ladder of EffectivenessLadder of Effectiveness

�� Telephone solicitationTelephone solicitation�� Impersonal eImpersonal e--mail solicitationmail solicitation�� Impersonal letter/direct mailImpersonal letter/direct mail�� Impersonal telephone/telemarketingImpersonal telephone/telemarketing�� Fund raising benefit/special eventFund raising benefit/special event�� DoorDoor--toto--doordoor�� Media/advertisingMedia/advertising

Thinking Like A DonorThinking Like A Donor

�� Some donors want financial information, annual Some donors want financial information, annual reports, basically facts and figures. reports, basically facts and figures.

�� Others want a relationship with the organization Others want a relationship with the organization and to feel a part of a worthy cause. These and to feel a part of a worthy cause. These types of donors want stories and pictures.types of donors want stories and pictures.types of donors want stories and pictures.types of donors want stories and pictures.

�� Another may want the bottom line, what do you Another may want the bottom line, what do you want from me; what will I get; and how much. A want from me; what will I get; and how much. A bullet point presentation.bullet point presentation.

�� But all donors want respect, kindness, and But all donors want respect, kindness, and appreciation.appreciation.

The Reason for an Annual FundThe Reason for an Annual Fund

�� Establish the habit of givingEstablish the habit of giving�� Basis for Planned GivingBasis for Planned Giving�� Inform donors annually about your Inform donors annually about your

successes and accomplishmentssuccesses and accomplishmentssuccesses and accomplishmentssuccesses and accomplishments�� Renew commitments from donorsRenew commitments from donors�� Develop new donors for donor baseDevelop new donors for donor base�� Stewardship opportunityStewardship opportunity

Hierarchy of EffectivenessHierarchy of EffectivenessWhy Board Members need to be Why Board Members need to be

involved in Fundraisinginvolved in Fundraising

Askers Relationship with ProspectAskers Relationship with ProspectPeer/volunteerPeer/volunteer

Askers Level of GivingAskers Level of GivingAskers Level of GivingAskers Level of GivingSame as ProspectSame as Prospect

Shared QualitiesShared QualitiesEconomic status Economic status Mutual Respect Mutual Respect Social PositionSocial Position Interest in OrganizationInterest in OrganizationCareer StatusCareer Status

THE EIGHT STEP MAJOR GIFT MANAGEMENT CYCLETHE EIGHT STEP MAJOR GIFT MANAGEMENT CYCLETHE EIGHT STEP MAJOR GIFT MANAGEMENT CYCLETHE EIGHT STEP MAJOR GIFT MANAGEMENT CYCLETHE EIGHT STEP MAJOR GIFT MANAGEMENT CYCLETHE EIGHT STEP MAJOR GIFT MANAGEMENT CYCLETHE EIGHT STEP MAJOR GIFT MANAGEMENT CYCLETHE EIGHT STEP MAJOR GIFT MANAGEMENT CYCLE

IDENTIFY

QUALIFY

DEVELOP STEWARDSHIP

RENEW

DEVELOP

STRATEGY

CULTIVATE

SOLICIT AND NEGOTIATE

ACKNOWLEDGE

STEWARDSHIP

Basic Board ResponsibilitiesBasic Board Responsibilities

�� Manage Resources EffectivelyManage Resources Effectively�� Determine, Monitor, and Strengthen the Determine, Monitor, and Strengthen the

Organization’s Programs and ServicesOrganization’s Programs and Services�� Enhance the Organization’s Public Enhance the Organization’s Public �� Enhance the Organization’s Public Enhance the Organization’s Public

StandingStanding�� Ensure Legal and Ethical Integrity and Ensure Legal and Ethical Integrity and

Maintain AccountabilityMaintain Accountability�� Recruit and Orient New Board Members Recruit and Orient New Board Members

and Assess Board Performanceand Assess Board Performance

Individual Board Members Individual Board Members ResponsibilitiesResponsibilities

�� Attend all board and committee meetings and Attend all board and committee meetings and functions, such as special events.functions, such as special events.

�� Be informed about the organization’s mission, Be informed about the organization’s mission, services, policies and programs.services, policies and programs.services, policies and programs.services, policies and programs.

�� Review agenda and supporting materials prior to Review agenda and supporting materials prior to board meetings.board meetings.

�� Serve on committees or task force.Serve on committees or task force.�� Make a personal financial contribution.Make a personal financial contribution.�� Inform others about the organization.Inform others about the organization.

Board Members and FundraisingBoard Members and Fundraising

�� Carrying out fiduciary responsibilities.Carrying out fiduciary responsibilities.�� Agree on the campaign goals, Agree on the campaign goals,

objectives and case for support.objectives and case for support.�� Approve the Fund Development Plan.Approve the Fund Development Plan.�� Approve the Fund Development Plan.Approve the Fund Development Plan.�� Identify and assist with prospect Identify and assist with prospect

research.research.�� Solicit appropriate people for gifts.Solicit appropriate people for gifts.�� Steward donors who give.Steward donors who give.

Writing the Development PlanWriting the Development Plan

�� Philanthropic VisionPhilanthropic Vision�� Situation Analysis (Strength, Weaknesses, Situation Analysis (Strength, Weaknesses,

Opportunities, and Threats)Opportunities, and Threats)�� Mission Statement and Case for SupportMission Statement and Case for Support�� Mission Statement and Case for SupportMission Statement and Case for Support�� Identification and Analysis of MarketsIdentification and Analysis of Markets�� Financial Ability to Raise FundsFinancial Ability to Raise Funds�� Selecting Donors Selecting Donors

$150,000$150,000Gift Range No. Gifts

required

No. Prospects required

Subtotal Cumulative total Cumulative percentage

$15,000.00 1 4 $15,000.00 $15,000.00 10%

$12,000.00 1 4 $12,000.00 $27,000.00 18%

$7,500.00 2 8 $15,000.00 $42,000.00 28%

$5,300.00 3 12 $15,900.00 $57,900.00 39%

$4,200.00 3 12 $12,600.00 $70,500.00 47%

$3,400.00 5 20 $17,000.00 $87,500.00 58%

$3,000.00 7 28 $21,000.00 $108,500.00 72%

$2,300.00 7 28 $16,100.00 $124,600.00 83%

$1,500.00 10 40 $15,000.00 $139,600.00 93%

Under $1,500.00 13 55 $10,400.00 $150,000.00 100%

Totals 52 208 $150,000.00

Annual Fund Gift Range Chart Annual Fund Gift Range Chart $500,000 Goal$500,000 Goal

Writing the Development PlanWriting the Development Plan

�� Developing StrategiesDeveloping Strategies�� Income and Expense BudgetsIncome and Expense Budgets�� Organizational Infrastructure and Organizational Infrastructure and

Resources (Who will do what)Resources (Who will do what)Resources (Who will do what)Resources (Who will do what)�� TimelineTimeline�� Communications and EvaluationCommunications and Evaluation

“You make a living by what you get. “You make a living by what you get. You make a life by what you give.”You make a life by what you give.”

Winston ChurchillWinston Churchill