Fundraising 101

Funding Solutions, Inc.

Successful fundraising strategies for non-profits

Source: Giving USA

2009 Total U.S. Philanthropic Support by Source$303.75 billion (Giving USA)

Giving shown in billions

Individuals, $227.41

Corporations, $14.10

Foundations, $38.44

Bequests, $23.80

Individuals$222.89 75.6%

Source: Giving USA

2009 Total U.S. Philanthropic Support bytype of recipient organization (Giving USA)

$303.75 billion

Human Services, $27.08 9%

Health, $22.46 7%

Public-Society Benefit, $22.77 7%

Arts, Culture, and Humanities, $12.34 4%

International Affairs, $8.89 3%

Environment/Animals, $6.15 2%

Foundation Grants to individuals, $3.51 1%

Gifts to Grantmaking Foundations, $31.00 10%

Unallocated giving, $28.59 9%

Education, $40.01 14%

Religion, $100.95 34%

Major Components of a Fundraising Program

• The Case for Support• Needs: Reasons why people should give money• Goals: What is this organization and what are

you capable of raising? Who we ask and How we ask.

• Prospects: How many and at what levels?• Leadership: Top caliber volunteers ~ to lead, to

give, and to urge others.• Staff: Qualified; Is there appropriate expertise,

training, & sufficient size for the work being done

Annual Fund Campaigns

• Pay operating expenses

• Balance the annual budget

• Build loyalty to organization

• Identify people interested in the organization

• Provide a platform for communication

Annual Campaigns are comprised of:

• Boards giving at 100%, at a level meaningful for their circumstances

• Visits: Seeing people face to face• Mail: often 3 times a year, with specific gift asks

and personalized letters• Phone: follow up to letters is effective• Special Events: can help operating budgets or a

specific purpose. Need to net worthy number of dollars for the time spent.

• Grants: can be for anything, but take time & effort

Why People Are Motivated To Give

• Loyalty

• The need for recognition

• Gratitude

• Pure generosity

• To do something that needs doing

• To make a difference

Why People Give

• Because they want to• They won’t unless someone asks

(especially large gifts)• Give money to people• Give money to opportunities and benefits

Not needs (desperate) and problems• Give money to success, not to distress• Give money to make a change for the good

Types of Charitable Gifts

1. Annual Campaigns - Cash for Operational Support

2. Major Gifts - Cash & Pledges forOperational Support, Specific Programs,Buildings, Endowments

3. Planning Giving – Long-term agreements

Sphere of Influence

Fundraising Thoughts“It is estimated that among current donors (this is, those who gave last year),

50% will give the same amount again; 25% will give more; 15% will give less; and 10% will lapse.”

--Harold J. Seymour, Designs for Fund-raising

“A fund-raising maxim – which appears to work in practice – holds that in a personal call, the prospect is likely to give 50% of what was asked 75% of the time. In the case of a phone request, the prospect donor will give at least 25% of the amount solicited 50% of the time. Direct mail results are typically far lower, a good response means 2 to 10% of those asked make small gifts.”

--Ann Gee Louden, Educational Fund Raising

“For every $1 you raise in direct mail, you raise $10 by phone and $50 face to face.”

--James R. Hackney, Jr.

Just do it!

“Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.”

-Margaret Mead

“You gain strength, courage and confidence by every experience in which you really stop to look fear in the face…You must do the thing you think you cannot do.”

-Eleanor Roosevelt