Fundraising 101

April 16, 2013Linda Wise McNay, Ph.D.

Types of Recipients of Contributions, 2011 Total = $298.42 billion

2011 Charitable Giving Total = $298.42 billion

• Vision and Mission

• Case for Support

• Leadership (Board and Head of School)– Understand and Implement principles of

effective fundraising– Participation– Oversight

• Strategy/Development plan.

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Successful Fundraising/Sustainability Successful Fundraising/Sustainability RequiresRequires

Fundraising for Independent Schools is Unique

• Daily interaction

• Strong Annual Fund is important

• Competing interests (annual fund, PTO, etc.)

• Turnover rates

• Alumni participation

• Parent education.

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Vocabulary

• Annual Fund

• Major Gifts

• Capital Campaign

• Planned Gifts

• Special Events

• Comprehensive Campaign.

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The philanthropic process is more about relationships than

money.

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Development Cycle

IdentificatioIdentificationn

ResearchResearch

CultivationCultivationResearchResearch

SolicitationSolicitation

ClosureClosure

StewardshipStewardship

ResearchResearch

Annual Giving

• Building block upon which organizations succeed or fail

• Money for current use

• Provide operating support for on-going programs– Unrestricted– Restricted– Size isn’t relevant.

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Capital Giving

• Intensive, organized effort• Secure gifts for specific capital needs or projects• Within a specific time period (usually over one or

more years)• Requires study, planning and identification of

major gifts prospects• Lays groundwork for involving new volunteers,

donors• Sets stage for high annual giving levels.

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Planned Giving

• Integration of sound personal, financial, and estate planning concepts with donor’s plan for lifetime or testamentary giving.

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Solicitation Staircase

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PhonePhone

Handwritten LetterHandwritten Letter

Typed LetterTyped LetterE-MailE-Mail

Mass-produced LetterMass-produced Letter

VideoVideo

NewsletterNewsletter

News ItemNews Item

AdvertisementAdvertisement

Small GroupSmall Group

Face to Face

Board Leadership

• Ensure fiduciary responsibilities

• Act in an ethical manner and expect ethical behavior

• Avoid conflict of interest

• Keep information confidential

• Serve on one or more committees

• Attend all meetings

• Provide oversight for prevention of fraud.13

Board Leadership

• Annual – this should be one of your top three giving priorities

• Planned Gift – work toward a deferred gift such as a bequest, life insurance, trust or other

• Make a meaningful capital/major gift

• Participate in fundraising activities.

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Board Member’s Fundraising and Stewardship Duties

• Top 3 personal philanthropic priority

• Identify and evaluate prospects

• Cultivate and solicit gifts

• Host fundraising or stewardship events

• Support fundraising programs and events

• Offer personal acknowledgements

• Provide leadership and actively advocate

• Ensure funds are used as designated.15

Role of Development Committee

• Monitor all fundraising activities

• Plan for special initiatives

• Solicit Board peers

• Be active in identification/cultivation/solicitation/ stewardship

• Ensure sufficient resources.

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Fundraising Myths

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Special events are an easy Special events are an easy way to raise lots of money.way to raise lots of money.

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This was not intended to be a This was not intended to be a fundraising board.fundraising board.

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We need a “famous” honorary We need a “famous” honorary campaign chair.campaign chair.

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We don’t need to have any We don’t need to have any campaign committee campaign committee

meetings.meetings.

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It’s the staff’s job to raise all of It’s the staff’s job to raise all of the money.the money.

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We have staff, we don’t need We have staff, we don’t need a consultant.a consultant.

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We can’t ask people for a We can’t ask people for a specific gift amount.specific gift amount.

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We’ll get 1000 people to give We’ll get 1000 people to give $1,000 to make $1,000,000$1,000 to make $1,000,000..

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If we can just get publicity for the If we can just get publicity for the campaign, money will pour in.campaign, money will pour in.

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We can borrow money to We can borrow money to build and raise it later.build and raise it later.

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We can’t go back to our past We can’t go back to our past donors, this money will have donors, this money will have to come from new donors.to come from new donors.

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Our big gift will be from Our big gift will be from someone we don’t know yet.someone we don’t know yet.

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Let’s go to Mr. Moneybags, he Let’s go to Mr. Moneybags, he could give the whole amount could give the whole amount

and not miss it.and not miss it.

Personal Giving

Findings80% donate to charity

48% volunteer

45-50 age group gave and volunteered more

$60,000-$90,000 income level gave and volunteer more

14% had established long-term giving plans.

Why People Give

Because they are askedIn person

By the right person

For the right amount

For the right project

At the right time.

The Model Donor

Annual

Major

Lifetime Gift.

Case

Create Emotional Connection: How will this affect the organization? How will it affect the donor? How is this an opportunity for the

donor?

Case

How to Give? Methods of payment Time period Type of gifts accepted Tax deductible Where should the gifts be sent? Contact person.

Case

Summary: Component and cost list Benefit to donor Ask.

Who is a Major Gift Prospect?

• Connection

• Good relationship

• Ability to give

• Past giving history

• Desire for recognition.

How to ID Major Gift Prospects

• Qualify your prospects

• Screening sessions

• Develop process for clearance and management

• Conduct proper research– Interest– Do they care?– Ability?

Importance of Cultivation

• Increase interest

• Build awareness

• Establish trust

• Reinforce connection to the School.

Cultivation Examples

• Donor dinner

• Invitation to lecture/presentation

• Stewardship report on past giving

• Involvement on committee or board

• Meeting with Head of School

• Phone call/email

• Information mailing

• Request for advice.

Features of Major Gift Solicitations

• Carefully tailored and personalized strategy

• Potential long cultivation period

• Matchmaking critical– Staff/volunteer contacts– Project identification– Cultivation activities– Consistency, quality and frequency.

What Occurs on a Major Gift Call?

• Building relationships

• Communicating face-to-face

• Information sharing

• Common goals and values

• Leveraging opportunity

• Providing service

• Determining needs and interests.

Stewardship of Major Gift Donors

• Is this important? ASK donor about recognition

• Know what is available and suitable

• Provide it!

• Enroll in gift club

• Written thank you notes from others

• Personalized recognition lunch or dinner.

Why Is Stewardship Important?

• To ensure “feel good”

• Report back to donors

• To reinforce the importance of the gift

• To facilitate communication

• To leverage future gifts

• To keep donors engaged.

Essential to Major Gift Success

• Long term investment in process

• Consistency and quality of activity

• Personalized approach

• Continual evaluation and fine tuning

• Sensitivity to prospect’s time line

• Appropriate use of volunteers.

Integrating with Rest of Development Office

• Coordinate with entire development effort

• Use of volunteers?

• Define role of Major Gifts Committee.

Integrating with Rest of Development Office

• Management and accountability of staff– Define in writing yearly expectations and

quantifiable goals jointly decided between supervisor and professional

• Dollar benchmark goals– Qualification calls

– Cultivation calls

– Solicitations

– Stewardship calls

• # Contacts

• # Proposals.

Evaluating Your Major Gift Program

• How did we do in comparison to our written MG plan? Number of prospects? Dollars raised?

• Are MG initiatives consistent with strategic plan?• Was each MG prospect “developed”

successfully according to their level of awareness, understanding, involvement and commitment?

• Is the staffing and budget sufficient to support gift potential?

How Long Does It Take?

“If you want to raise alfalfa, you can get several crops a year. But if you want to raise oaks, it will take a little longer.”

--Si Seymour

Questions?

Thank You