Fundraising Mastery 101

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Fundraising Mastery 101

• Presented by The EDGE Group

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Introduction

• About The EDGE Group
• Why Fundraising Mastery
• The Process

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The Nonprofit Sector

• 75 of U.S. households gave to charity during
  2004
• Average annual contribution of 1,620
• Total 2004 giving was estimated at 248B
• Total giving has increased 39 of the last 40
  years
• There are over 1M charitable organizations and
  355,000 religious organizations in the U.S.

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Giving Statistics
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Giving Statistics Continued
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Traditional Nonprofit Fundraising Myths

• Our mission is worthy
• Ask 1000 people for 100
• Fundraising Director Myth
• Shotgun fundraising works
• Nonprofit Entrepreneurial Myth
• Special Event Myth
• Board Fundraising Myth
• Grant Fundraising Myth
• Direct Mail Myth

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Funding the Visible
Your organization is virtually invisible!
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How to Become Visible!

• Before donor and client acquisition
• Methods can be affective,
• Nonprofit organizations must address their
  
• Mission,
• Model,
• Message.

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The EDGE Fundraising Mastery Model
Model
Mission
Fundraising Mastery
Message
Motivation
Method
Maintenance
Money
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Mission

• The organization desires to be a catalyst and
  resource for spiritual transformation by
  providing, with and for the church, advanced
  training for strategic ministry roles.
• This mission includes partnering with other
  para-church ministries in the training of their
  staff, particularly those organizations that
  value the local church and honor it in their
  ministry philosophy and practice.
• Built on this mission is a 2020 vision that
  seeks to help equip 50,000 people through its
  academic programs and auxiliary training
  opportunities, and thousands more through the
  expanded ministries of its personnel and students

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The EDGE Fundraising Mastery Model
Model
Mission
Fundraising Mastery
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Staffing Structure
The Fundraising Director Myth sits at the heart
of fundraising dysfunction. The solution A
composite staffing structure Internal staff
manage day-to-day functions and direct donor
relationships External experts manage project
based tasks
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Return on Investment

• A performance measure used to evaluate the
  efficiency of an investment or to compare the
  efficiency of a number of different investments.
  
• To calculate ROI
• Benefit (return) of an investment
• the cost of the investment
• percentage or ratio.

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Philanthropic Return on Investment

• Mission combined with Model
• What is the operating budget for your
  organization annually?
• How many people do you serve annually.
• Divide 1 by 2. That is your Philanthropic ROI

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The EDGE Fundraising Mastery Model
Model
Mission
Becoming Visible
Message
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Message
The Fundraising Message becomes the filter that
all communication methods run through. It
clearly defines

• Who
• What
• Where
• How

When creating your Fundraising Message use unique
descriptive words.
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Message Assessment

• Sample Core Message
• Original Invisible Message A drug
  rehabilitation center for 10 women.
• Revised Visible Message - Drug rehabilitation
  program for women ages 18-35 located in North
  Seattle with the ability to serve 10 women
  through long-term care and an additional 500
  women through outreach prevention programs.

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The EDGE Fundraising Mastery Model
Model
Mission
Becoming Visible
Message
Method
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Fundraising Methods

• Methods Definition Any activity, tool, or
  resource with the primary purpose of raising
  money
• Direct Mail
• Grants
• Special Events
• Planned Gifts
• Individual Donor Solicitation
• In-kind Gifts

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Comprehensive Fundraising Plan

• Comprehensive fundraising plan includes
• Database management tool Excel or Access is a
  good start!
• Direct Appeal a minimum of 4 times a year
• Direct Communication at minimum of 2 times per
  year
• Donor acquisition plan to include direct
  communication, special events, and referrals
• Special event fundraising a minimum of 1 time per
  year
• Grant solicitations as needed per project
• Major gifts this is the primary role of the
  Exec Dir or Founder
• Planned gifts start with Wills and Bequests
• In-kind gifts non-cash gifts
• Online giving
• Special projects like capital campaigns.

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Direct Communications

• Appeal letters
• Newsletters
• Emails
• Web Blogs
• Personal Notes
• Simple tips
• Use simple fonts
• Quickly connect the reader to the proposed need
• Indent each paragraph to reconnect the reader
• Always use a postscript to summarize the letter

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Grant Funding

• Grant funding is difficult funding to
  acquire do to several factors.
• Each funding source has a unique set of rules and
  guidelines
• Funding applications must be filled out correctly
• Timing
• Limited funds
• Application invitation

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Grant Funding

• Successful grant proposal minimum requirements
• 1. Compelling vision
• 2. Credible organizational leadership and track
  record
• 3. Financial stability
• 4. Organization and client profile
• 5. Prioritized program initiatives from strategic
  plan
• 6. Organizational and program case statements
• 7. Fundraising effectiveness
• 8. Network of partnerships and collaborations
• Evident community benefit and impact
• 10. Previous grant writing experience and success
  
• 11. Potential funders

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Special Events

• Special events are any events that have a
  primary goal of raising money or acquiring names
  of potential donors.
• Special Event Success Principles
• Planning timeline
• Volunteer base
• Venue
• Event cost
• Potential event revenue
• Event attraction
• Recognize soft costs and staff time

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The EDGE Fundraising Mastery Model
Model
Mission
Fundraising Mastery
Message
Method
Money
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Money The Fundraising Ask

• Show me the money!
• If you have built your fundraising plan from a
  strong Message and PROI you will have fundraising
  success.
• Most people fail to raise money because they fear
  rejection. Fundraising isnt personal but it is
  relational.

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Donor Acquisition

• You can acquire donors from a variety of
  methods.
• Special events
• Direct communication
• Public speaking
• Gather name, contact information, contact
  motivation, and area of interest

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Donor Acquisition Model


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The EDGE Fundraising Mastery Model
Model
Mission
Fundraising Mastery
Message
Method
Maintenance
Money
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Donor Maintenance

• General Donor Gift Acknowledgement
• Receipting process
• 72 hour turnaround time
• Include response device with the receipt
• Hand written note or phone call
• Add them to your Direct Communications System.

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Donor Maintenance Cont.

• Donor Appreciation
• Thank donors a minimum of 5 times per gift
• Receipt
• Hand written note (this includes email)
• Phone call
• Success stories based on your core messaging
  (newsletters)
• Special invitations

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The EDGE Fundraising Mastery Model
Model
Mission
Fundraising Mastery
Message
Motivation
Method
Maintenance
Money
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Donor Motivation Referrals

• Individual donors are the key to success! Why?
• 241 billion was donated to charities in 2003
• Corporations 5, Foundations 11, Individuals
  83.
• You can build relationships with individuals

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Donor Motivation Referrals

• Your existing donors invite new potential
  donors into your system of raising money.
• Point of entry capture names
• Invite potential donors to get involved
• Ask for money
• Continue to develop relationship
• Encourage them to encourage others
• The Fundraising Mastery System at work!

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The EDGE Fundraising Mastery Model
Model
Mission
Fundraising Mastery
Message
Motivation
Method
Maintenance
Money