Fundraising 101

1
Basics of Fundraising
2
4 Fundraising Strategies

• Special events

• Direct mail and phone solicitation

• Annual giving techniques

• Donor acquisition methods

3
Special Events

• Positives

• Highest visibility to donor

• Evokes positive publicity for event and
  organizations mission

• Attracts individuals who wouldnt necessarily
  give (guests at gala tables/golf teams)

• Opportunity for board involvement

4
Special Events

• Positives

• Opportunity to create new volunteer base

• Opportunity to build future board leaders

• Opportunity to showcase mission

• Opportunity to involve all levels of organization
  program, communications, financial

5
Special Events

• Negatives

• Least effective way to raise money

• Most Time consuming

• Highest cost ratio to net income

• Tires volunteer base

6
Recipe for an Event

• Board Endorsement (board rep on committee)

• Recruit Event Chairman

• Form Volunteer Committee

• Set Event Goal

• Set Timeline

• Set Event Budget and stick to it

• Follow Timeline

• Hold Event

• Thank Volunteers and Donors and Staff

7
Direct Mail

• Some fundraisers see direct mail as a waste of
  money, some see it as a way to grow donor base.

• Most think it has a limited place in fundraising
  plan

• It can help identify new donors

• It can be used for public relations

• It increases organizations visibility

• It helps identify potential volunteers

• It helps to publicize new programs

8
Direct Mail

• If done correctly, it can be the source of
  consistent income

• Some Questions

• Is your organization well known and well
  respected in the community where you will
  solicit?

• Is your organization unique in your community?

9
Direct Mail

• Some Questions

• Is there a clear and critical need that can be
  explained in the appeal?

• Can you offer benefits to donors and/or show how
  their gift will make a difference?

• Do you have enough time and money to test your
  direct mail thoroughly?

• Can you afford to lose your initial investment in
  direct mail?

10
Direct Mail

• What is a Direct Mail Package?

• A personal letter

• A reply envelope

• A personalized reply form

• Where do you get good lists?

• Develop an in-house list by asking board,
  volunteers and current donors to give names of
  those whom they think might want to become
  involved.

11
Direct Mail

• Where do you get good lists?

• Trade names with other like organizations for one
  time use.

• Rent lists from other local organizations in your
  regional area.

• Rent local portions of national lists, which
  support causes similar to what your group does.

12
Direct Mail

• What type or format/design is best?

• Renewal packages tend to be simply presented.

• Special appeals and cultivation / acquisition
  mailing tend to be more graphic using more color
  and photos.

• Capital campaigns tend to be more personalized
  and dignified in their graphic approach.

13
Direct Mail

• Is there a best time of year to mail?

• No. Probably not January (right after holidays
  and the bills are coming in) nor perhaps April
  (when taxes are due).

• For success, you have to mail, mail and mail.

14
Direct Mail

• What are typical response rates to expect?

• For first time mailings, the response rate is
  between .5 and 2.5.

• For re-solicitation mailings, the response rate
  is between 6 and 12.

• How many mailings does it generally take to get a
  renewal gift?

• Usually, between 5 and 9 mailings.

15
Direct Mail

• How many mailings does it generally take to get a
  renewal gift?

• Research shows most donors set aside the first
  letter asking for their renewal. The fourth
  notice in a series motivates them to use a reply
  device from one of the earlier mailings.

• Space mailings between 5-8 weeks apart.

16
Phone Solicitation

• Telemarketing can be a useful strategy (example
  St. Thomas High School Round-up calling past
  donors and alumni March of Dimestelephone
  pioneers of America)

• Concern should be cost benefit to your
  organization both in terms of cash (collectable
  pledges and in projected good will).

17
Phone Solicitation

• If your organization has a base of names to work
  from, the best avenue is not paid telemarketers.
  People give to their peers people they know.

• Equipment real estate offices, brokerage firms
  that will lend the phones

• Train volunteers with talking points which
  includes answers to tough questions

• Rewards for volunteers. Provide refreshments and
  make it fun.

18
Annual Giving Techniques

• An annual fund is an appeal for gifts make on an
  annual or recurring basis.

• It is an annual, yearly, solicitation program
  designed to gain support for the organizations
  programs.

• Principal components of the annual fund could
  include yearly mail solicitation, phonation, an
  employee campaign, and membership drive.

19
Annual Giving Techniques

• Annual donors are faithful many give year in and
  year out for decades.

• An annual fund appeal provides the donor with a
  way to budget their gift to the organization
  annually. They expect an annual solicitation and
  know what month they will make their gift or
  pledge.

20
Annual Giving Techniques

• Although an annual fund is an unrestricted fund,
  general giving categories should be included.
  These categories should reflect the years
  priorities as outlined in the Strategic Plan.

• Funds given to the General Fund are unrestricted
  funds, these gifts can also be used for basic
  operational needs. Categories could include
  general fund tuition assistance technology
  athletics etc.

21
Donor Acquisition Methods

• Use newsletters and annual report to recruit
  volunteers

• Volunteers turn into donors

• Capture names/addresses of all event attendees

• Use Board to build data base

• Use direct mail data base

22
Basic Truths of Fundraising

• Organizations are not entitled to support. They
  must earn it.

• Successful fundraising is not magic. It is hard
  work on the behalf the people who are prepared.

• Come from a position of strength, not weakness.
  You do not raise money by begging. You raise it
  by selling people on your school.

• People do not just reach for their checkbooks.
  They have to be asked.

23
Basic Truths of Fundraising

• Successful development officers do not ask for
  money. They engage volunteers and organizational
  leadership.

• You cannot decide to raise money today and ask
  for it tomorrow. It takes time, patience and
  planning.

• Treat prospects and donors as you would customers
  in a business. Hospitality!