FUNDRAISING 101: The Basics

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FUNDRAISING 101: The Basics Presented by John Howard February 27, 2008

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FUNDRAISING 101: The Basics. Presented by John Howard February 27, 2008. Where are we going?. Section 1: Laying the Groundwork About John Howard Why Fund-raise? Whose job is it? Attitudes needed for success General Principles Money-making vs. fund-raising (development). - PowerPoint PPT Presentation

Transcript of FUNDRAISING 101: The Basics

Page 1: FUNDRAISING 101:  The Basics

FUNDRAISING 101: The Basics

Presented by John HowardFebruary 27, 2008

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Where are we going? Section 1: Laying the Groundwork

About John Howard Why Fund-raise? Whose job is it? Attitudes needed for success General Principles Money-making vs. fund-raising

(development)

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Where are we going? Section 2: Bringing in the Dough with

Money-making Projects Overview Specific types of money-making projects Benefits and Drawbacks Building Ownership through involvement

Case Study – Peoria Heights P.L. Short Break

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Where are we going? Section 3: Building Long-term Funding

through a Development Approach Overview Understanding Donors Asking for Money Library Annual Fund Major Gifts & Memorials Planned Gifts Capital Campaign

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Where are we going? Section 3: Building Long-term Funding

through a Development Approach (continued) Recognition and Acknowledgment Do you need development staff? Role of the Library Director Creating a plan for fund-raising Summary – Where to go from here

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Why Fundraise? You tell me – why are you all here?

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Why Fundraise? To offer new services To offer existing services better To better fulfill your mission To make your community a better place

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We don’t Fundraise… To pay the bills Because we need something Or else!

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Who is Responsible? Ideally, a high-

powered group of community leaders so devoted to your library that they will offer time, talent and treasure

Reality – multiple answers Board, friends,

volunteers, staff may all be involved

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Attitudes Needed for Successful Fundraising Unshakable conviction in the value of your

library Belief that people are willing to give Belief that, even in bad times, wealth exists in your community Willingness to step outside your comfort zone

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Why is your library important…? Elevator Speech – short statement that

you could share while riding in an elevator. No more than 2 sentences No more than 50 words

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Important Rules of Thumb The best gifts are win-win propositions

Have donors thank YOU People tend to repeat pleasurable

experiences and avoid painful ones Help donors to enjoy their gift

How you acknowledge the last gift determines whether you get the next

Never beg – create partnerships Good planning precedes good fund-raising

The $10,000 question

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Fundraising vs. Moneymaking

Fund-raising: Creating long-term relationships with people interested in your organization, and letting them invest in your library

Moneymaking:Moneymaking: Engaging in activities that will create a profit that will be used to support your library

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Types of Moneymaking Projects

ExamplesUsed Book Sale

Bake Sale

Cookbooks

Book bags

Coffee

Community garage sale

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Types of Moneymaking Projects

Drawbacks:Relatively low profit potential

Possibility of losing money

Competition with local businesses

Benefits:Low pressure

Easy to do

Depending on product, may raise $$ from people unaffiliated with library

Unthreatening way to involve volunteers

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Types of Moneymaking Projects

Drawbacks:Varying profit potential

For best results, need a sizable sales force

Requires researching and following local laws

Benefits:Low cost with donated prizes

Straightforward

Depending on prize, may raise $$ from people unaffiliated with library

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Types of Moneymaking Projects

Examples:Luncheons/dinners

Musical or Theatrical Performances

Golf tournaments

Dances

Festivals

Trivia Nights

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Types of Moneymaking Projects

Drawbacks:Can be LOTS of Work

Very dependent on timing

Can be high stress

Small to moderate $$ potential until established

Benefits:Can be FUN!

Good way to build visibility for library

May be built around the interests/skills of your volunteers

May give opportunity to share library’s “story”

Need good attendance to make $$

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Volunteers

Voluntary involvement in your mission moves volunteers from

interest to involvement to ownership

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CASE STUDYTaste of Peoria Heights

Marsha Westfall

Peoria Heights Public Library

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Building Long-term Support through a

Development Approach

Primary Goal: Long-term, mutually beneficial relationship

with community members

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Overview of the Development Approach

1. Identification

2. Cultivation

3. Solicitation

4. Acknowledgment

5. Cultivation

6. Solicitation with upgrade

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Understanding Your Donors Why do donors give?

Personal belief in project/organization

Gratitude – “I have been served”

Guilt Recognition BECAUSE THEY WERE

ASKED PBS Drake Univ.

Donor Life-Cycle Prospect Customer Annual Gift Major Gift Ultimate/Planned Gift

Donors/Volunteers/ Donor-Volunteers

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Asking for A Gift Levels of effectiveness (Best to worst)

Peer asking peer face to face Non-peer/staff asking face to face Peer asking peer via telephone Non-peer/staff asking via telephone Personalized customized letter Personalized customized email Bulk Mailing

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Asking for A Gift Best gifts happen when the right person

asks the right person for the right gift at the right time (Not very common)

REMEMBER YOUR ROLES Demonstration Practice opportunity

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Types of Fundraising Activities

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Types of Fundraising Activities

The Annual Fund is the foundation/basis for development style fund-raising.

Through the Annual Fund, donors are identified then brought along through the donor lifecycle.

The Annual Fund includes a combination of in-person, events, telephone and mail activities, along with significant acknowledgment activities.

Any library can run an annual fund.

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Types of Fundraising Activities

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Types of Fundraising Activities

A capital campaign is a focused, high visibility short-term effort to raise significant dollars, usually over a 3-5 year period

Capital Campaigns are most often held for building projects

Capital Campaigns are most effective when they grow out of an annual appeal, but they can be an effective way to jump-start an appeal

Capital campaigns are expensive and labor-intensive

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Types of Fundraising Activities

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Types of Fundraising Activities

Ex-resident leaves Monticello library $2 million in his will

MONTICELLO - A few years ago, Allerton Library director Lisa Winters received a thank-you note from a woman who she had helped with her research."At the end she said, 'My friend, Max is going to leave you something,' " Winters said. "I thought: He's going to leave us his books."

Winters later received a phone call from Tom Finseth, a close friend of Max Hency, a former Monticello resident, who told her Hency was leaving the library a large donation in his will. Just for fun, Finseth asked her, "What would you consider a large donation? "Winters, who has worked at the library for 29 years, knew exactly what would constitute a sizable contribution."I said $1,000," Winters said. "We have had several gifts a little over $1,000, but I don't recall anything more than that."

Max Hency, a retired Navy commander who graduated from Monticello High School in 1941, left more than $2 million to Allerton Library. The library received the first installment of $1,990,000 in January and is expecting to receive another, much smaller check in the future.

"Overwhelming is the best word to describe it," Winters said.

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Types of Fundraising Activities

•The largest gift your library will ever get is likely to be a planned gift

•Although some gifts are made during the donor’s lifetime, most are made at the time of the donor’s death, when they no longer need the money

•There are people ready to make planned gifts to your organization right now

•Donors without children are particular prospects

•Many planned gifts take time to ripen – years of volunteer involvement or gifts to the annual fund lead up to the provision for a planned gift

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Recognition and Acknowledgment Acknowledging and recognizing gifts well

leads to more gifts Thank, but don’t just thank. Involve the donor

Creating some basic policies is important Websites give us an entirely new and

exciting way to recognize gifts Don’t be afraid of your donors

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Creating a Plan for Fundraising What does your library need to do to move

forward? What will it cost?

Set a goal for coming year Choose activities to reach that goal

MM, FR or both Start a team If necessary, start small Build on your successes

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Getting the Help you Need Alliance Innovation website resources Working with a paid consultant Hiring development staff

Train, train, train Further workshops

Capital Campaigns (Annual Fund?) - April 30th

Planned Giving – June 25th

By request as availability allows

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Summary Attitude is the most important thing

“My library is important and deserving of support!”

“There are people in my community very willing to support my library!”

“We can successfully move our library ahead!” “There is money out there for the asking” “What does not kill me makes me stronger”

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Thanks To:Genna BuhrLee Logan

Jillian RebmannThe folks at Peoria Heights

Kitty Pope and Lori BellMy wife and family

And all the little people who helped make me great…