Political FrameworkGrassroots organizations should be “owned” by the

grassroots communities they serve. Ownership means that the community provides significant support to the organization. This means that support comes from diverse sources, and that it takes the form of monetary and other contributions.

Social Change requires more than “ownership” of community organizations. It requires changing the root causes for disenfranchisement, marginalization and poverty.

Who Gives$241 Billion in 2002*

Individuals $184 76%

Bequests $18 8%

Foundations $27 11%

Corporations $12 5%

* Source: Giving USA

Who Gets

Religion $84 35%

Education $32 13%

Health $19 8%

Human Services $19 8%

Arts/Culture $12 5%

Public/Society Benefit $12 5%

Environment $7 3%

International Affairs $5 2%

Unallocated $30 13%

Foundations $22 9%

* Source: Giving USA

Myths of FundraisingOnly rich people give:

3 out of 10 people have disposable income, yet 7 of 10 give to charities

85% of money given by individuals is given by households with incomes of $60,000 or less

Households who make $10,000 or less give 5.5% of their income to non-profits, while those who make more than $100,000 give 2.5%

People only give for tax reasons:

80% of people who give to non-profits do not deduct it from their taxes

Only men are big donors:

86% of all personal wealth is controlled by women

61% of all bills are paid by women

Why People Don’t Fundraise

Fundraising Baggage

What is your greatest fear?

What is your earliest memory of money?

Your belief in the cause MUST

overcome your fear of asking!

Sources of Funds

Individual DonorsMembership DrivesPledging ProgramsMail AppealsMajor Gift CampaignCanvassingPhone AppealsPayroll DeductionsHouse Parties

GrantsCorporateFoundationsGovernment (Local, State, Federal)National Religious Agencies

Organizational ContributionsHouses of WorshipLocal BusinessCivic GroupsCommunity Organizations

Fees for Service/InformationNewslettersResearch/SurveysTrainingDirectoriesAd Books

Sale of ProductsT-shirtsButtonsCandyCrafts

Special Events/BenefitsInternal EventExternal Sponsor

Small Business

Average Length of Time to Raise MoneyShort-term Money - 3 months:

- Individuals/Major Donors

- Memberships

- Simple Special Events

- Volunteer Canvassing

- Direct Mail

- Neighborhood Businesses

Mid-term Money - 3 to 6 months:

- Local Foundations

- Local Churches

- Larger Special Events

- Service Clubs

- Some National Churches

- Unions

Long-term Money - 6 to 18 months

- National Foundations

- Financial Institutions

- Large Corporations

- Branch Corporations

- National Churches

- Jurisdictional Churches

- Professional Canvass

- Workplace Giving (United Way, Community Shares)

- Business Ventures

Where Do You Get Your Money From?

Source This Year Last Year

Individual Donors

Grants

Organizational Contributions

Fees for service

Sale of product

Special Events

Small business

Manual Page 21

Creating a Development PlanBudget Year

Mail Major donors

Special Events

Grants

FY1999

$23,500 $7,000 $3,800(15 donors)

$5,700 $7,000

FY2000

$33,000 $12,500

4 mailings

Sep: Jill

Dec: Tory

Mar: Andrea

Jun: Jorge

$8,000

Goal: 35

Campaign:April & May

Chair: John & Alfreda

$7,500

Oct: Dance

Chair: Laura

Dec: ad book

Chair: Sarah

$5,000

Research: Bill

Write Proposal: Mary

Submit Proposal: Mary & Bill

Principles of Fundraising Developing a Case

Statement Understanding the

Purpose of Fundraising

Using Strategies Effectively

Diversifying your Fundraising

Case Statement Mission Statement (Why?) Goals (What?) Objectives (How?) History (How Long?) Structure (Who?) Budget (How Much, Who

Pays)

Purpose of Fundraising The purpose of fundraising is?

To raise money To build relationships

Three categories of fundraising strategies

AcquisitionRetentionUpgrade

Fundraising Method Effectiveness

Time In vs. Money Out

Special Events 0%

Direct Mail 2%

Door to Door Canvas 10-15%

Phone Call w/written follow-up 10%

Personalized Letter w/phone call 15%

Personal Phone Call w/letter 25%

Personal Letter w/phone call 40%

Personal Visit by individual or team 50%

Fundraising Diversity

Sources

People

Constituency Circles

Board member involvement in fundraising

Time is Not Money Board Leadership in Fundraising Not Everyone Has to Ask for

Money All the Time Paid Staff Cannot Do It All Sharing the Work and the Power

Principles of Fundraising Developing a Case

Statement Understanding the

Purpose of Fundraising

Using Strategies Effectively

Diversifying your Fundraising

Special Events Why do an event?

VisibilityNew MoneyThank people

Must meet at least two of these reasons

Estimate the costExpect to pay for everything If you cannot afford to lose

everything, do not do eventCost/fundraising ratio

Steps to doing an event Decide on Goals Recruit Planning Committee

Select a Chair Create a Master Task List

Program, ProductionPromotionFundraising

Timeline D-day Evaluate

Plan an Event

What event are you going to do? Which criteria does it meet? How much will it cost? How much will it raise?

TimelineWhen does the planning start?When does the event happen?Who will do the pitch?

Individual Donor Campaigns Outline Prospect

Identification The Process of

Asking Putting together a

Gift Range Chart

Definition of anIndividual Donor Campaign

The process of raising money from

individuals through face-to-face asks

for your organization.

Four steps of an Individual Donor Campaign

Get names of potential donors

Mail letters to these people

Phone call follow-up to set up

meeting

Conduct personal visit

Identifying a Prospect

A -- Ability to Give

B -- Belief in the Cause

C -- Contact to them

Types of Donors

Bring Them In, Keep Them In, Move Them Up

Planned Gifts (Bequests)

Thoughtful Givers (upgrade)

Habitual Givers (retention)

Impulse Givers (acquisition)

Prospects (abc)

Prospect Identification

Name C B A $?1.2.3.4.5.6.7.8.9.10.

Writing a Fundraising Letter Questions

How many pages? What goes into the mailing?

Introductory and Last Paragraphs are the most critical

Use: Plain language Plain font, 12 points or larger Bold type White space Bullets P.S.

Personalize

The Phone Call Conduct in groups Develop lists Develop a rap Role play Keep tally Dealing with message machines Give prizes

Asking for Money

A.S.K.

A -- Attitude

Don’t hear no until they say no

Persistence

Passion

S -- skill

Who is a Prospect

How to Ask for a Gift

How Much to Ask For

K -- knowledge

Familiar with Programs, Budget

How to Ask for Money

The Visit

Smile, Keep Smiling, Say the name of your

organization often

Say your name, the name of the

organization, and your position within the

organization

Describe your program and its effectiveness

Describe your budget

Describe your fundraising strategy

Be aware of your body language

The Ask

- Ask for a specific dollar amount

- Say why you need the money now

- Say the dollar amount that you want again

- STOP TALKING. Smile. Wait for the person

to say yes

- If your prospect has questions, answer them as

briefly as possible. If you don’t know

the answer, tell them you will get back to

them.

- Remind your prospect that you have

given a donation yourself.

- Make arrangements for the payment of the gift

or set a date when you will get back to

the person for their answer

- Send thank you note

- Report the outcome to the office

How Not to Ask for Money

Not asking

Not asking family and friends

Beating around the bush

Being dishonest

Begging, apologizing, or demanding

Not knowing the financial side of your program

Having too low a budget

Understanding giving potential

Calling yourself out after only two strikes

Taking yes for an answer

The Most Common Mistakes

Manual Page 79

50% from 10% of donors

25% from 20%

25% from 70%

Donor Pyramid

$10,000 from 100 donors

Average Gift

Donors Asks Prospects

Total

$500 10 20 40 $5,000

$125 20 40 80 $2,500

$35 70 140+ 280++ $2,500

100 200+ 400+ $10,000

Individual Donor Campaigns Outline Prospect

Identification The Process of

Asking Putting together a

Gift Range Chart

Using Mail to Build Your Base

Direct Mail

Letter Campaigns

Thank You’s

Email

Writing a Fundraising Letter Questions

How many pages? What goes into the mailing?

Introductory and Last Paragraphs are the most critical

Use: Plain language Plain font, 12 points or larger Bold type White space Bullets P.S.

Personalize

Manual Page 31

Creating a Development PlanBudget Year

Mail Major donors

Special Events

Grants

FY1999

$23,500 $7,000 $3,800(15 donors)

$5,700 $7,000

FY2000

$33,000 $12,500

4 mailings

Sep: Jill

Dec: Tory

Mar: Andrea

Jun: Jorge

$8,000

Goal: 35

Campaign:April & May

Chair: John & Alfreda

$7,500

Oct: Dance

Chair: Laura

Dec: ad book

Chair: Sarah

$5,000

Research: Bill

Write Proposal: Mary

Submit Proposal: Mary & Bill

Keys to Successful Fundraising

1. The organization MUST be mission driven

2. The purpose of fundraising is to build relationships

3. Success is in the Asking

4. It is OK for Someone to Say “No”.

5. Fundraising is a volume business

6. You must have a core of people who help raise money

7. You are not begging!

8. Let your passion show!

Questions What will you do when you get back to

the office?

What will you do over the next two weeks?

What will you do over the next two months?

How will you communicate what you learned to others?

Be realistic!

Resources Books

Fundraising for Social Change

Fundraising for the Long Haul

Raise More Money

Selling Social Change without Selling Out

Grassroots Fundraising Journal pamphlets

Getting Major Gifts

The Board of Directors

Como Recaudar Fondos en Su Comunidad

Video tapes

The Grassroots Fundraising Series

GIFT Programs Internship Program Fundraising Action Trainings - FATs Technical Assistance Training for Trainers Research