Fundraising 101Everything you wanted to know about

asking for money but were afraid to askMarc A. Pitman

www.FundraisingCoach.com

Kansas Main Streets

Fundraising 101

Goals for this Session the only 3 types of

communication you'll need

how many times to say “thank you” between solicitations

the difference between annual funds, capital campaigns, and endowments

a simple model for your setting up a fundraising effort

This is the big picture basics!

1. It’ll be O.K.

This is the big picture basics!

1. It’ll be O.K.

2. You can do it.

Constant Tension90% - 10%

But must BROAD range of givers so losing one is no great loss

3 Source of Funds: Giving USA 2006

3 Types of Communication

1. Cultivation

2. Solicitation

3. Stewardship

Cultivation the 2 local business ownerseducatingdating

Solicitation#1 reason people don’t give?

– They're not asked!

Solicitation#1 reason people don’t give?

– They're not asked!

Upgrade– one client started asking $1000 donors if

they’d move up to the $2500 category. Many did!

– Don’t feel compelled to justify the ask for more in a transactional sense. FR isn’t a business transaction.

StewardshipSay “thank you” 7 times between asks

(so go for multi-year pledges!)

How about other communication like phone calls?

one client wanted to make phone calls to– Survey about a new mailing strategy– Ask for a gift– Ask if there were anything that the person being

called would like prayer for

How about other communication like phone calls? one client wanted to make phone calls to

– Survey about a new mailing strategy– Ask for a gift– Ask if there were anything that the person being called

would like prayer for

I help my clients prune their purpose. I advised deciding on ONE purpose for the call– multiple choices confuse the caller and the called– it's fine if they all happen in the same call—just be sure

to have one reason for calling

3 Types of Fundraising Goals

1. Annual

2. Capital

3. Endowment

AF/OperatingThe most importantoften involves direct mail, phonathons,

and other annual “-athons” (walkathons, bikeathons, etc.)

keep this as unrestricted as possible

Endowment

The keel of the ship, it helps you weather tough times

Funds invested with only a portion of the interest thrown off used as income

Be careful to not over restrict! (Churches with Easter flowers but no money for plumbing)

Capital3 times of organization3 phases of solicitation3 campaign stages

3 times of organizationPreparing for a campaign in a campaigncleaning up from a campaign

3 phases of solicitationLeadershipSpecial/MajorCommunity

3 campaign stages feasibilityquietpublic

Feasibilitydefine goalsFormulate and test drive a case

statementmake a list of prospectscreate gift categories and put the

prospects into themNot necessarily the beginning of a

campaignMay recommend waiting a year of two

Quietquiet but not too quietLeadership/Special/Majordisciplined work, walking out the plan

Publicafter 60-75% of money is raised—

people give to winning teamsdon’t kick it off too soon20% of the money but 80% of the work

EndowmentHave your board make wise choices

about investmentHow much does it take for a donor to

endow a fund? (Help avoid the endowed flowers syndrome.)

Do bequests automatically go here?

3 Ways to Raise Money

Written mail web e-mail

– don’t ask for money in email without having a way to donate online

Phone– because often needs a script– be sure it’s more of a convenience for them not

for you (the nonprofit)

3 Ways to Raise Money

Events gets lots of people on board TIME INTENSIVE for possibly little return Risk offending donors I've heard that April and November are the

best months for events give them 3 years before deciding to

discontinue Determine your focus Clear plan & script EVERYTHING

Risk offending donorsEven though it may be their friends,

the organization could look bad when people don’t RSVP

LOT’S of phone calls by staff!

Give them 3 years beforeevents do have valuebut you need to create a culture and

fine tune them before giving up on them

Determine your focusUse “The Curly Credo”What's the “one thing” of your event?

What's the “one thing” of your What's the “one thing” of your event?event?CultivationSolicitationStewardship

CultivationHandshake Events

– Not for $ right now

– friends invite friends/org invites people they want to get to know

– Head (facts) and Heart (emotional hook)

or moving further into the house?

SolicitationLow Key FR Events

– Much like above but with• either the promise of follow up• or a pledge card at the event (I’m not a big

fan of this)

– Be clear in the invitation wording, subtle but clear

StewardshipSay thank youand DON’T ASK FOR MONEY

Clear plan & script EVERYTHING All should be tightly timed

– Often want to allow ample socializing time: friends brought friends

– but may want to go for the in-and-out, your-time-is-important approach

– Which ever you choose be intentional– Include times (even “2 minutes”)

Talking points for everyone– not to lock them in– just to give them direction– kids on the playground with a fence– It's helpful to put the event objective at the top of this

• people tend to forget in the rush of activity

3 Ways to Raise Money

F2Fmost effectivemost time consumingOr maybe not: you could organize a

silent auction to give you $10,000 (LOTS of work) or ask an individual over coffee.

Subtopic

3 Things to Measure

Setting up a FR Program

Major gifts focusThis is worth the effort (which is easier:

a $10k ask or a fashion show?Multiple year pledges make thanking

easier$1000/year is $84/month—about as

much as a phone bill might be

Direct mail Probably quarterly

– Aug/Sept, Dec, Feb/March, May– Companies have differing fiscal years– every 6 months makes sure you get the USPS

address changes

why not write these in advance? then you’ll just have to proof them.

decide on mail house vs. volunteers stuffing 4 page letter with reply envelope & buck slip

WebsiteBig Red FezCredit cards

– Do-it-yourself with SSL encryption

– or outsource to a vendor

Eventssome handshake events

– to grow your database

an annual event– silent auction

– gala/ball

– -athon (walk, bike, etc.)

an annual thank you

3 Sets of Tools

Databases Get the institutional memory in a common

place! Don’t be afraid of dumb questions. Most of

these sales folks seem to be techies without development experience. Ask until you get the answers you want.

Blackbaud http://www.blackbaud.com/ DonorPerfect http://www.donorperfect.com/ eTapestry http://etapestry.com/

Who are the current top 20 of givers to your nonprofit?LifetimeLast couple yearsBe prepared to be surprised.

P.Y.I.T.S.Put Yourself In Their ShoesWould you like to be asked the way

you are planning on asking? i.e. phonathons: who's convenience

are they for--the donor's or the nonprofit's?

The Quiz What are the only 3 types of communication

you'll need? How many times to say “thank you”

between solicitations? What’s the #1 reason people don't give?