Fundraising for Non profits

From the desk of Adeel Durvesh

Many Approaches to Fundraising
• Fees for users of services
• Face to face solicitation
• Telephone solicitation
• Mail requests
• Special events
• Contracts (usually with public sources)
• Grants (foundations, corporations)
• Sales / Direct selling strategy
• In-kind solicitations
• Online
Sources of Individually Contributed Income

• Annual giving (unrestricted)

• Telephone and mail campaigns (unrestricted)
• Special Events (unrestricted)
• Capital funds (restricted)
• Wills, trusts, endowments
• In-kind contributions
 Effort and Results Vary
• Face to face appeals to persons already well acquainted with your
organization are the most productive. They require long cultivation:
friend-raising comes first.
• The less the personal relationship, the lower the return--across all
forms of fundraising (including grants).
• There is no inexpensive, high likelihood approach to fundraising. It
takes time.
Most Nonprofits Have TWO Key Constituencies
• Clients or consumers for whom the organization exists and to whom goods and
services are provided, and

• Donors and volunteers who provide the majority of resources necessary for the
organization’s services to take place.
 Friend-raising
• There must be some degree of current interest in the topic for people
to respond to overtures from the organization
• Information presented must be compatible with listeners’ prior values
and attitudes for them to be receptive
• People respond in differing ways to the same material, and their
response depends on their beliefs and attitudes
• Seek to understand each one’s interests and tailor your approaches to
match them
 Exchange
• Cultivating sponsors involves identifying how to get the
desired response from those individuals and groups the
organization wants to engage
• People voluntarily give up something (time, money) in
exchange for benefits they see as more valuable
(recognition, involvement, friendship, worthiness,
satisfaction)
• There are costs and benefits on both sides. They must be in
balance to create satisfied stakeholders and a successful
organization.
Fundraising Involves Adding Value for Sponsors
• Each party in the transaction should sense that they are receiving more than they
are giving up.
• The nonprofit must understand what target constituencies want and how it truly
provides them their expected benefits.
• The nonprofit must satisfy efficiently and effectively its half of the transaction
• Are we truly adding value for them?
• By building on its strengths, the organization can better serve constituencies and
strengthen their loyalty.
 Over 80% of All Adults Give.
Reasons why they do:
1. I was asked to give by someone I trust for a cause I believe in.
2. I believe those with more resources should help those with less.
3. I get personal satisfaction from giving.
4. Because of my religious beliefs or commitments.
5. I feel that I benefit when I help others.
6. Sustaining a family tradition.
7. Giving sets a good example for others.
8. Giving helps my community.
9. Gift in remembrance of a loved one.
10. Gift is tax deductible.
11. Giving is encouraged by my employer.
The Ladder of Effective Communication

• Two-way communication is most effective.

In order of effectiveness:

1. Face to face conversation

2. Small group discussions
3. Telephone conversations
4. Handwritten letter, inviting response
5. Large group discussion
The Ladder of Effective Communication

• One-way methods are far less effective.

In order of effectiveness:

6. Videotape
7. Mass-produced letter
8. Newsletter
9. Brochure
10. News item
11. Advertisements
Ineffective Approaches
• Failure to demonstrate accountable use of gifts.
• Playing on guilt
• Flashy campaign, expensive materials
• Asking people to bail out deficits
• Failure to build trust before asking
• Failure to connect person with mission
• Hoping somebody else will do it
 Start Small, Build Pyramids

• Each invites friends to a party and asks them to bring some

amount for this organization
• Maintain database on all givers
• Identify those who give larger gifts
• Take them to lunch, explore their interests
• Match their interests to organization’s needs via volunteer roles
• Ask them to invite their friends to party next year
• Try creative, alternative events
 Basic Steps in a Campaign
• Set goals based on organizational strategies
• Select steering committee
• Set up record system and recognition system
• Identify roles and responsibilities for each
• Develop case statements (why should anyone give?)
• Carry out research on potential donors
• Find ways to meet them
• Engage them with organization
• Invite them to help support specific activities that interest them
• Recognize and thank them, keep them involved
• Repeat and refine this cycle every year
 The Fundraising Process: R.O.P.E.S.

• 1. Research: understand the opportunities to be offered donors and

their congruence with donors’ interests
• 2. Objectives: set fundraising objectives that support the
organization’s goals
• 3. Programming: plan and implement steps to attain those
objectives (cultivation)
• 4. Evaluation: monitor results and adjust steps to improve
effectiveness
• 5. Stewardship: ensure reciprocity, responsible use of gifts, report
regularly to donors, nurture relationships
Developing the Case

• Begin with the why: what is our mission?

• Then state the what: what do we want to achieve?
• Then state the how: how will this new project meet a need and fulfill
mission?
• Then who: who we are and how well we have been serving our
constituencies.
• Finally, what specific action do you want the reader or listener to take?
 The ASK is Essential
• You are offering them opportunities to do good.
• Not everyone has to do every aspect of the campaign, but someone must be
ready and willing to do the ask. Guarantee: It won’t hurt if you try.
• Time it to come after you already are well acquainted with the person and s/he
with you and your organization.
• Match ask to their interests and their resources.
• Ask for two things: money and help with a task
• Ask and then shut up. (Don’t fill the space with nervous chatter.)
• Respond to questions and offer alternatives.
• Thank them several ways, regardless of results, building relationship for the
future.
 Prerequisites to the ASK
• You have the right prospect.
• You have cultivated a good relationship with the person, and s/he is
familiar with your organization.
• You know the person’s interests well.
• You have an appointment to discuss the specific opportunity and make
the ask.
• You know the amount to ask for and the right task needing their
expertise.
• You are prepared with ways to recognize the gift and to make use of their
help.
 The Asking Scenario
• Open with pleasantries
• Get to the subject
• Get to the asking
• Suggest a specific figure (then be quiet)
• Be ready for various negative responses
• don’t push or argue (you can’t win them all)
• leave the request on the table
• be prepared with alternatives if asked
• Leave on a positive note
• Follow up with a note of appreciation
Key Steps in Any Approach

• Plan
• Learn
• Meet
• Listen
• Engage
• Ask
• Thank
Sources of Grants
• Government (federal and state)
• look for RFPs (Requests for Proposals)
• search government web sites
• Foundations (http://fdncenter.org)
• Charitable foundations
• Family foundations
• Corporate foundations
• Operating foundations
Grants and Contracts
• High competition, low yield for effort
• Require specialized writing skills
• Directed at special programs, not ongoing operations (leaves you hanging when $
runs out!)
• Ask public officials about community block grants that might match your
programs
• Search foundation directories (http://fdncenter.org) for those interested in your
programs and goals
• Spend time with grant officer
• Follow their guidelines for proposal
Summary: Seven I’s of Cultivating Donors

• Initiative: set goals and get started

• Identification of potential sources
• Information about them through research
• Interest: what are they interested in?
• Involvement in your organization
• Investment: ask for a specific gift
• Integrity in everything you do and say
Why is it important to have a fundraising
plan?
• To help you recognize what you have to work with
• To define what you need
• To select your target market(s)
• To choose your fundraising strategies
• To organize the steps required to put the fundraising plan in place
• To demonstrate to the outside world that you are organized and
businesslike
What do you need to do?
Every charity and trustee’s role is different, but all trustees will need to take an active
interest in their charity’s fundraising program, which includes:
• Agreeing a sustainable fundraising strategy, considering both opportunities and risks
• Ensuring the charity complies with best practice, always treating supporters fairly and
with respect
• Setting clear policies defining the organization's approach to sensitive issues
• Instilling an open and accountable approach, handling any complaints appropriately
What do you need to know about fundraising?
While you may not need to be a fundraising expert, you do need to know that it is being
done properly and that means legally, responsibly and ethically.
• Will your fundraising strategy secure a sustainable future and enable the organisation
to achieve its objectives?
• Are your fundraising activities in keeping with the purpose, values and culture of the
charity?
• What are the opportunities and risks?
• What does this mean for you?
What it means to fundraise responsibly
There may be an urgent need for funds, but never lose sight of the need for a responsible,
ethical approach.
• Look at your fundraising activities from your supporters’ perspective – how will it make
them feel, how are they likely to react?
• Treat all supporters fairly and with respect.
• Ensure that your fundraisers act appropriately when dealing with potentially vulnerable
people.
• Review and adapt – consider changes to the broader social / economic / political
landscape, as well as fundraising regulations and updates to best practice, reflecting this
in your ongoing fundraising planning.
What it means to fundraise ethically
Make sure you follow best practice, always being legal, open, honest
and respectful. Take care to:
• Avoid conflicts of interest with regard to acceptance/refusal of
donations
• Ensure that all charity funds are used appropriately
• Always be clear about fundraising costs
• Treat donor data responsibly
• Have an agreement for all working with third parties
• Include relevant information about fundraising in your annual
return
How to plan for a sustainable future
• Make sure you have a long-term, clear and realistic fundraising strategy
• Know who manages and delivers your fundraising; staff, volunteers or third parties
• Monitor your fundraising activity, identifying what has worked and what hasn't
• Regularly review and assess risks, setting policies for any potentially difficult or sensitive
situations (eg acceptance / refusal of donations, protecting the vulnerable)
• Invest in fundraising, ensuring your fundraisers have the right level of resources and training
 Is your fundraising strategy sustainable?
Consider the following questions:
• What resources do we need to meet these plans?
• What methods / campaigns do we rely on – is the mix appropriate?
• What activities have been most successful / what are we most dependent on?
• Do our fundraising and finance strategies line up?
• Is the cost to income ratio acceptable?
• Will these activities enable us to meet our fundraising goals – short or long term?
Help your charity achieve its fundraising potential
• Make sure that fundraising is an organizational priority, tabled at every board meeting
• Promote a culture where everyone understands the importance and impact of good
fundraising
• Contribute objectively to fundraising plans, strategy and risk management
• Support fundraising staff, volunteers and others in their role, ensuring they are sufficiently
resourced
• Offer your professional skill, expertise and contacts to guide approaches to new markets,
talking to your own contacts and networks about the charity's work, sharing your
enthusiasm
What are the essential components of a fundraising
plan?
• Mission/case statement
• Fundraising goals
• Strategies with action steps
• Stewardship plan
• Calendar
• Budget

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A case statement is…

• A clear statement of the need your organization addresses, how you

address it, what makes you unique and how others can help
• A document you can use in drafting all your other publications and
presentations
Components of a case statement

• The mission - Why do you exist?

• History/accomplishments - Where have you been?
• Population served - Who do you serve?
• The problem - What is the problem being addressed?
• Your strategy - How do you address this problem?
• The goals - What do you want to accomplish?
• Development - What will you do in the future?
• Staff and governance - Who runs and oversees your organization? What qualifies them?
• Finances - Is your organization fiscally responsible?
• The ask - What do you need funding for? How will the donor’s investment be used?
Good case statements generate:

• Excitement (positive emotional response)

• Sense of proximity (nearness to cause)
• Sense of immediacy (right timing, importance, urgency)
• Sense of hope (optimism, future orientation)
• Meaning (perception of match to values, desirable benefits)
• Sense of reasonableness (feasible, benefits outweigh costs)

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Identify your goals

• What does your organization need to fund? Programs, everyday operations,

capital enhancements, building an endowment
• How much funding do you need?
• Who will it come from? Individuals, foundations, corporations?
• Are you looking to grow your program or just maintain it?
 Develop your Strategies & Action Steps
Strategy Sub- Goals Objectives Action Steps By when By who
strategy

Membership Win, Keep, Lift Specific $ Sub-goals Specific activities to Ongoing or by DD, ED,
goal raise $ specific date? Board, Vol?

Major Donors

Board Members

Special Events

Corporations

Foundations
Why focus on individuals?
The individual prospect
• Accounts for the largest portion of all charitable giving
• Is more likely to seek involvement with your cause and organization
• Long-term relationships are most likely to occur
How to spend fundraising dollars?

• Three strategies
Win (acquire new donors)
Keep (retain donors)
Lift (escalate giving by committed donors)
 Developing a stewardship plan
$1-$99 $100-$249 $250-$499 $500-$999 $1,000+

Thank you letter

X X X X X
Newsletter
X X X X X
Emails
X X X X X
Invitations to
events X X X X X
Annual Report
X X X X
Phone call thank
you X X X
Personal thank
you note X X
Holiday cards
X X
Annual visit
X
Key components of a fundraising budget
• Supplies (letterhead, envelopes, note cards, etc)
• Postage
• Design and printing of publications
• Travel
• Meals with donors
• Event costs
• Trainings and Conferences
• Salaries and wages
• Consultants or outsourced services
• Memberships/professional associations/publications
• Database
• Web-based fundraising and fees (ie credit card processing)
 Fundraising Calendar

Fundraising Mediums Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Donations-Direct Selling Strategy

x x x x x x x x x x x

Corporate Collaboration-Product Affiliations x

Crowd Funding x x x x

Events x x x x

Fund Raising Drop Boxes at POS

Social Media x x x x x x x x x x x

Advertisement Billboards x

Unsolicited Letters x x x
 Our 5 Golden Rules
• Everything begins with a strategy - have a clear fundraising strategy and ensure it is
integrated into your overall strategic planning
• Think long term - ensure sustainable planning is at the heart of your fundraising
• Do the right thing - always consider the legal and ethical implications of your fundraising
• Don’t put all your eggs in one basket - where possible, diversify your fundraising strategy
• Play your part - what can you do to ensure that your organization's fundraising achieves its
potential?