Basics of Fundraising

Presented by

Andrew Sanderbeck

for the Infopeople Project

The Greatest Gift

Around the RoomYour Name

Your Organization

What One Thing You Want from Today

What Fundraising You Currently Utilize

Traditional Ways California Libraries Raise Funds

1. Book Sales2. Food and Drink3. Events4. Donations5. Grants6. Partnerships7. Capital Campaigns8. Friends Groups9. Foundations

Library Support GroupsFriends of the Library

The Friends of the Alameda Free Library was established in 1973 with a twofold purpose: 1) to increase public awareness of the library as an essential part of the community's educational and cultural facilities; and 2) to support and cooperate with the library in developing library services and facilities. The Friends sponsor a variety of activities including book sales, children's programs, and author nights.

Alameda Free Library Foundation

The Alameda Free Library Foundation was founded in 1998 and is dedicated to establishing strong, private, on-going financial support for the library so that the library has sufficient funds for programs, materials, and equipment to meet the needs of our community.

The Alameda Free Library Foundation has sponsored fundraising events, conducted an annual fundraising solicitation by mail, and received a large bequest from an estate. The Foundation has eleven board members, meets monthly, and has made two significant gifts to the Main Library thus far. The Foundation has begun a major fund drive named “Campaign for a Great Library”. The goal is $600,000 to be raised in the year prior to the opening of the new Main Library, which is scheduled for November 2, 2006.

New and Exciting Ways California Libraries Currently Raise Funds

1. Their Websites

2. The Internet

3. Discard and Donations Programs

4. Community Affiliate Programs

5. Charitable Giving Programs

6. Planned Giving Programs

7. Annual Campaigns

8. e-Philanthropy

New and Exciting Fundraising

MyCause.com

The Tree of Friends

Understanding the Fundraising Language

Getting on the Same Page

From Annual Fund to

Unrestricted Support

The Basics of Fundraising

Myth

Or

Fact

Why Are We Raising Funds?• Core – for the basic ongoing

necessities like overhead, management and administration.

• Project – for an improvement to the library (computers, repairing the roof etc…)

• Start-Up – initial money just to kick-start an organization or perhaps a long-term project

The Basics of Fundraising

Corporations or Individuals? Who Gives

More?

More than 75% of Gifts Received by Organizations comes from

Individual Donors!

Are You Surprised Too?

How Do People Support Libraries?

1. Money

2. Endowments

3. Land

4. Buildings

5. Gifts of Books and Materials

6. Insurance Policies

7. Partnerships

8. Volunteering their Time and Energy

Why Do People Support Libraries?

1. To Leave a Legacy2. For a Specific Reason3. To Be Recognized4. To Make a Difference5. Because They Were Asked6. Because Giving Feels Good7. To Pay Less Taxes8. For Personal, Undisclosed

Reasons

Who Will Support the Library’s Fundraising Activity

• Library Management• Library Staff• Library Board• Library Friends Group• Library Foundation• Community Foundation• Volunteers/Committee

What Can We Expect From Those That Support The Fundraising Activity

CommitmentBuy-InEmotional SupportElbow GreaseMoney/DonorsGuidanceIdeasConflict

Who You Want on Your Fundraising Team

• An Attorney• An Accountant• Library Manager• Library Board Member• Friends Group Representative • Influential People• Famous People• People Committed to Success of

the Activity

Five Things Board Members Can Do to Raise Money for Your Library

1. Give money (Actually, all board members should)

2. Host a fancy dinner at their home and charge $$ for a gourmet meal for the guests

3. Invest $10,000 for 12 months and give the interest earned to the library

4. Invite friends to their birthday party and ask that in lieu of gifts, money be given to the library.

5. Rent their home or cottage for the weekend and donate the proceeds to the library.

How Much “Seed Money” And Time Will You Need?

To Create a Foundation = Up to $50,000/1 Year

To Incorporate Your Friends Group = $1,000/ 1 Yr.

To Find Board/Team Members = 1 Year

To Market Your Fundraising Activity = $100 & Up

To Recover From The Activity = 3-6 Months

What Makes Someone Want to Be a Donor?

• Belief in what the library is doing• See how their donation makes a

difference• Desire to be involved (Sometimes

Anonymously)• To have a say in what is going on• They see a way to leave their

legacy• Excited by the cause of the library• They’ve been asked to donate• Tax Benefits

What’s Your Status?

501(c)3 Status

501(c)(3) - Organizations that are nonprofit entities to which

contributions are tax-deductible to the extent permitted by law.

What Are Donors Giving to Libraries

LandBuildingsMoneyJewelryStocks and Bonds Insurance PoliciesEndowmentsOther Items of Value

Who Are Potential Donors to Your Library?

• Members of your Friends groups and volunteers

• Past and present library users

• People who already give books to your library

• People who come to special programs and events

What Do Donors Want In Return (WIIFM)

Recognition• Immediate• Written (Ask them how)• Public or Private• A Feeling of Personal Satisfaction

Control• A Specific Result (Computer Lab, Bold Print

Books)• To Be a Part of the Process

10 Rules for Becoming an Effective Fundraiser for Your Library

1. Ask for a gift, don't wait. Another will ask if you don't.

2. Be professional and look professional. 3. Be accountable - personally, and for your

nonprofit. 4. Be honest. Listen to your heart; it's more

honest than your mind. 5. Speak with conviction for your cause.

Ten Rules Continued

6. If you can't, recruit someone who can. 7. A prospect is simply a donor without

motivation. You provide motivation. 8. A donor is a fundraiser who has yet to

share their conviction with a friend. Ask them to.

9. A good fundraiser, then, is a friendly motivator. It's that simple.

10. A successful fundraiser has thick skin, a soft heart, exceptional hearing, a quick mind, a slow tongue and no shame - at least when it comes to asking for a gift!

Source: http//:nonprofit.about.com

Asking Others to Support Our Library

(What Are We Afraid Of)

• To look like we’re begging• To be turned down (Told No!)• To be uncomfortable • To change• To look foolish• To not know what to say• Other Reasons

Basics of Fundraising

Putting it All Together

Short Term Strategies - Internet

Use the Internet and Your Website:

• Affiliate Programs• Amazon.com, B&N.com• iGive.com• eBay • Advertisements• e-Commerce (Book Store)• Donors Form• Wish Lists

Short Term Strategies - Inside

• Surplus Library Materials:

– Better World Books.com– Empties for Cash.com

• Friends Group Activities

– Phoneraiser.com• Community Affiliates• Association Donations

Short Term Strategies - Hidden

Library Management and Staff:

Public Speaking (Kiwanis, Lions, Rotary)

Sharing the Message (Verbally, Buttons)

Constant and Consistent Communication

With the Library Building:

Meeting Space (Catered Events)

Sidewalk Bricks

Food and Beverage (Lease Space)

Long Term Strategies - Methods

What Works:

– Endowments– Grants– Cultivating Donors– Insurance Policies– Charitable Giving– Property– Stocks and Bonds

Long Term Strategies - Reasons

Define Your Mission:

– Capital Campaign– Annual Campaign– Building Fund – Addition to Collection– Special Exhibit– Planned Growth– Foundation

Fundraising While You Sleep?

Raise money 365/7/24

Labor-less Fundraising

Let other people’s money create money

The Basics of Fundraising

Strategy Advantages and Disadvantages

What’s Best for Your Library?

The Basics of Fundraising

Short Term Strategies

• Simple, Easier to Do• 30 – 90 Day Timetables• Smaller Dollar Amounts• Less Labor, May Not Need

Outside Support• May or May Not Need 501(c)3

Status

The Basics of Fundraising

Long Term Strategies

• Comprehensive• Visionary• Bigger Dollar/Donations• Need Board Members, Outside

Support and Other Experts• 501(c)3 Status Required by

Donors

e-PhilanthropyThe Fundraising of the Future

• Building an on-line brand• Make on-line giving easy• Make on-line giving safe• A communications tool for your library• Donor’s are choosing “on-line options”• Asking donors electronically• Volunteer recruitment

The Basics of Fundraising

Action Plan

Your 30-Day Plan

The Basics of Fundraising

Thanks for attending this workshop!

Contact Andrew Sanderbeck

Phone: 727-522-2152

Fax: 727-526-4930

Email: andrew@andrewsanderbeck.com

Website: www.andrewsanderbeck.com