6A:Building The Base: Keys to Fundraising Success

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6ABuilding The Base Keys to Fundraising Success
Chesapeake Watershed Forum Shepherdstown,
WV November 17-19, 2006 Presented by Pat
Munoz River Network
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About River Network

• River Network is a national nonprofit
  organization dedicated to helping people
  understand, protect and restore rivers and their
  watersheds.
• We invite all watershed groups to learn more
  about us and join as a River Network Partner at
  www.rivernetwork.org

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I. Sources of Charitable Giving
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Where do private charitable donations come from?
2004 Contributions 248.52 Billion By Source of
Contributions
Corporations 4.8
Foundations 11.6
Bequests 8.0
Individuals 75.6
Source Giving USA FoundationTM AAFRC Trust For
Philanthropy/Giving USA 2005
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Where do private charitable donations go?
2004 248.52 Billion
Environment/animals 7.6 Billion 3.1
Public-society benefit 5.2
International Affairs 2.1
Arts, culture, and humanities 5.6
Foundations 9.7
Unallocated 8.6
Religion 35.5
Human Services 7.7
Source Giving USA FoundationTM AAFRC Trust For
Philanthropy/Giving USA 2005
Health 8.8
Education 13.6
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Typical funding profile for staffed
environmental groups
Events 3
Individual Donors 13
Grants 48 Foundation, Government, Corporate
Earned Income 13
Membership 17
Source Mott Foundation survey of 758 groups in
the Great Lakes and Southeast States
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2. Keys to Success
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Fundraising Readiness in the Watershed Community
Of groups seeking fundraising help
40 dont have a budget
45 dont have an annual plan or workplan
74 dont have a fundraising plan
Groups seeking assistance in 2005 from River
Network
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Fundraising Essentials
Do you have...
a clear mission and long-term purpose?
The South River Federation is dedicated to
protecting, restoring and celebrating Marylands
South River Watershed --
The Potomac Riverkeeper is dedicated to
protecting and restoring water quality in the
Potomac River and its tributaries through
community action and enforcement
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Do you have...
an annual workplan with clear goals and
objectives?
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Do you have...
a Board of Directors, staff, and volunteers who
are committed to and involved in the organization?
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Do you have...
fundraising expertise on the board or staff?

• recruit new board members
• seek training for staff and board
• hire consultant to provide guidance

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Do you have...
an annual income and expense budget?
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Do you have...
a fundraising plan?
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Do you have...
a database or other means for tracking donations?
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Consider writing...
a case statement which explains
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Consider getting...
nonprofit 501(c)(3) status or a fiscal agent?
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Diversify Your Funding Strategies!

• Memberships Renewals
• Special Events
• Special Appeals
• Foundation Grants
• Major Donor Program
• Corporate Grants
• Bequests

• Sale of Products
• Board Giving
• Monthly Giving Program
• Workplace Campaigns
• Capital Campaign
• Corporate Sponsorships

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More predictable
Membership renewals
Major Donor Gifts
Special appeals
PREDICTABILITY OF FUNDING
Corporate grants
Government/Foundation project grants
Less predictable
Restricted
Unrestricted
FLEXIBILITY
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Which are you building?
B
Contracts and grants
One-time gifts (legacies, corporate gifts, etc)
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One-time gifts
Individual donors
Grants, contracts
Why?
Individual donors
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3.Individual Giving
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What do we know about individual donors?

• Volunteers tend to give more than non-volunteers
• Overall giving in the U.S. is about 2 of
  personal income
• Members of organized religious groups tend to
  give more than non-members
• Giving as a of income tends to go up with age

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Why do individuals give?

• Because they are specifically asked
• Because they are inherently generous
• People give to positive enthusiastic people
• To share a joy or loss
• To be to part of a community or organization
• To receive peer approval and recognition
• To gain tax and financial planning benefits

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Why does ANYONE give?
Because you have asked them effectively!
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How to Ask Ladder of Effectiveness
Face-to-face Request (50)
Personal Phone Call (25)
Personal Letter (15)
Phone-a-thon (10)
Special In-house Mail Appeal (6-10)
Direct Mail Prospecting (1-3)
Online (?)
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Asking Effectively

• Explain your motivation or cause
• Describe your goal
• Ask for a specific amount
• Be quiet and let them answer!