1. Fundraising 101 Presented by:
Erin Morantz, CFRE, KCI Ketchum Canada Inc.- Consultant
Heather Wardle, Seva Canada - Director of Development

2. Agenda Understanding the language
Understanding the fundraising environment
Understanding the donor
Understanding fundraising programs
Understanding the development process
Understanding the role of volunteers
Understanding the role of information management
Understanding the role stewardship and recognition
Glimpse at how the current economic downturn is affecting philanthropy
ERIN
Our purpose with this presentation is to give you a very high level overview of the basic theories and principals of fundraising in the hopes that it will provide you with some understanding and insight into the fund development process that will help you with your respective roles.
We understand that there is quite a diverse group here – can we see by a show of hands, how many of you work for an organization where you are the only paid fundraiser? Please keep your hands up as I ask the next few questions.
How many of you work for organizations where there is less than 5 paid fundraising staff?
Less than 10?
How many people have a database?
How many of you have an annual giving program?
A major gifts program?
A planned giving program?
This presentation is a quick overview of fundraising theory, for those of you who are new to it. And because it’s the topic du jour, we’ve sporadically included information about the economy and the impact it is having on philanthropy. Along the way, we’d like to share some personal anecdotes and stores that we hope will make some of this theory seem more “real” and practical.
Feel free to jump in with questions and comments as we go along.

3. Fundraising Buzz Words
Acquisition
Annual Giving
Bequest
Capital Campaign
Case statement
Cultivation
Direct Mail
Donor
Donor Acquisition
Donor Pyramid
Donor Retention
Endowment
Gift In Kind
Major Gifts
Moves Management
Planned Giving
Prospect / Qualified Prospect
Recognition
Renewal
Solicitation
Stewardship
Volunteer
HEATHER

4. Philanthropy in Canada
Over 80,000 charities in Canada
6.8% gross domestic product
12% of Canadians employed in the charitable sector
Revenues total $112 billion per year
78% of individuals 15 years and older donate money to charity
ERIN
Questions from questions

5. Distribution of Support from Individual Canadians
Wide Distribution
Distribution of Support from Individual Canadians
Distribution of Charities
HEATHER
Who do Canadian donors support? (Source: 2000 NSGVP)
Religious organizations continue to receive half of all donations
Health care donations up to 20% from 18%
Social service organizations declined slightly from 11% to 10%
Education and research about 5%
International charities approx 3%
ERIN
Talk about what we’re hearing in the market place from donors with regards to how they are changing their giving focus due to the current economic climate

6. The statistics tell us…
Individual giving will be the cornerstone of successful development programs with major gifts leading the way
Donors are more sophisticated and want “impact” and involvement
HEATHER
85% of money donated in Canada comes from individuals or family foundations
Individuals continue to make 7,8,9 figure gifts – however we are seeing that due to the economic downturn donors are taking longer to make decisions after an ask and gifts at the 7+ figure level are harder to come by. Donors are definitely being more cautious in making long term commitments. Bad news for large scale campaigns like I’m working on. The good news though, is that organizations are seeing record numbers of smaller donations come in. Again, there’s no research or stats to back this up yet, but it would seem that because everyone is feeling the pinch they feel like they have to take more responsibility and support people who are not doing as well as they are.
ERIN
Tell a story from current campaign

7. Who or what is a donor? Individuals & Families
Corporations / Businesses
Employee Groups
Foundations
Government
Associations/Clubs
ERIN
Basically any group or individual who chooses to make a gift they don’t have to make to a registered non profit organization is considered a donor. Give examples for each donor category.
Non profits can include:
associations (like Trial Lawyers Association of BC),
political parties,
public sector bodies (i.e. hospitals and colleges)
or charitable organizations whose primary mission is to secure donations to benefit the cause they represent
Only registered charities and political parties however can issue tax receipts

8. Why do people give? to demonstrate power
tax and financial planning considerations
gain influence, professional advancement
peer approval
ego gratification/self esteem
recognition from peers
identify with a worthy cause of goal
sincere desire to help/care
belief in the mission
immortality
diminish negative feelings, guilt, fear, anger
express deep emotion - grief (memorial) or Joy (commemorative)
give something back
for the joy of it.
HEATHER

9. Why do people give?
BECAUSE
THEY
ARE
ASKED!!!!!!

10. What are Donors Looking for?
Positive image
Vision, uniqueness, urgency
Impact on community / society
Strong strategic planning / financial management
Prioritized needs
Clear description and outcomes of the project(s) to be funded
“Fit” with the donor
Sense of permanence
ERIN – cover the slide
HEATHER – it would be great if you have any specifics here about what donors to international causes want

11. Donor Bill of Rights
Information about mission, use of donated resources and organizational leadership
Access to financial statements.
Assurance that gifts will be used as intended
Receive appropriate acknowledgement and recognition.
Assurance that gifts handled with respect and with confidentiality
Expect all relationships with organization be professional in nature.
To know if those seeking donations are volunteers, employees of the organization or hired solicitors.
To remove their name from mailing lists
Freedom to ask questions.
We will be distributing a list of websites and other resources to you – the Donor’s Bill of Rights can be found on the Association of Fundraising Professionals (AFP) website.
The vast majority of registered charities subscribe to the Donor Bill of Rights and the Code of Ethical Conduct in Fundraising Practices. These rights and codes are adopted by all associations related to fundraising (i.e. association of fundraising professionals, association of health care philanthropy, Canadian association of gift planners). Most charities post the donor bill of rights on their website and include it in some of their literature.

12. Special Events or Fundraisers
Fund Raising Pyramid
Bequests
Major gifts
Annual Gifts
ERIN
Special Events or Fundraisers

13. Donor Pyramids
ERIN
If you take a look at the traditional donor pyramid, the largest # of people are the enquirers and the smallest number of donors is the legacies but when you look at where the $’s come from it is totally reversed.

14. Annual Gifts Made from a donor’s cash flow
Do not require financial planning
Support the ongoing needs of an organization – they are the sustaining gifts
Many gifts at lower levels are sought
HEATHER

15. “Ladder of Effectiveness”
1. Personal visit by a team
2. Personal visit by one person
3. Solicitation by personal letter with a follow-up phone call
4. Solicitation by personal letter
5. Group direct mail
ERIN

16. Major Gifts
Generally require thought or planning on the part of a donor
Fewer solicitations for larger gift amounts
Generally, the gifts support an organization’s long-term goals
Donors can be individuals, corporations or foundations
The key is that someone must ask for a significant gift face to face
ERIN

17. Corporate Giving
Corporations often have established giving criteria by which they judge programs and organizations seeking support
They are not generally annual donors. Instead, they provide major gifts for programs and capital
The face of corporate giving in Canada is changing in a number of ways
ERIN – talk about the economy as it relates to corporate giving
ANNNECDOTES

18. Corporations Looking Beyond Dollars
Strategic partnerships
Longer timelines
Greater scrutiny, higher expectations
Need to manage competition and increase in requests
Their context: spotlight on corporate governance, continued increase in competition, globalization
ERIN

19. Planned Giving
Includes gifts of shares, wills and bequests, life insurance, etc…
Usually, only the most sophisticated organizations will have an organized planned giving program
However, it never hurts to make donors aware of the options for giving available to them.
HEATHER – story

20. The Donor Development Process
ESTATE
Investment OR
PLANNED
GIVING
Bequests / Legacies
Planned Gifts
Involvement
MAJOR GIVING
Endowment Campaigns
Interest
Capital and Special Campaigns
ROSE
The application of the Five I’s helps move donors up the pyramid. Not all donors will move up, but some will continue to make ongoing and bigger investments in the organization.
Major Gifts from Individuals,
Corporations and Foundations
Information
ANNUAL GIVING
Special Events
Annual Appeal, Direct Mail, Telemarketing
Identification
Small Gifts from the Public-at-Large

21. Donor Development Cycle
ERIN
Another, more detailed way, to look at the five I’s is through the donor development cycle (or cultivation cycle or the relationship cycle). While this process works for all fundraising activities, it is especially critical in the major, capital and planned giving categories of fund development.
The cycle always begins with the identification of potential donors
Careful research should tell us who the prospect is, who they know, how much they might be capable of giving and what their areas of interest are.
If they make the cut, then a program of cultivation is established. Cultivation is the steps you take to inform, interest and involve a potential donor. Cultivation activities can include meetings, tours, invitation to events, volunteer involvement.
When the time is right (which is usually sooner than people think it is), then the prospect is solicited for their support.
If they say no you put them back to cultivation and start all over again. No is only no for now, not forever.
If they say yes, you recognize them appropriately. Recognition can involve thank you letters, plaques, donor walls, donor thank you receptions and a bunch of other stuff.
Stewardship is the act of informing a donor about the use and impact of their gift. Good stewardship can keep a donor engaged with an organization and prepare them to be solicited yet again.
And then you begin cultivating again.
Sometimes its hard to understand the difference between stewardship and cultivation. Basically stewardship is for gifts that have already been given, whereas cultivation is for future gifts. But the better stewardship you give, the less cultivation you’ll need to do for future gifts.

22. The Constituency Circle
Board
PAC
Staff
Students
Donors
HEATHER
Particularly when you move into major and capital campaign gifts, there is a method for applying the cultivation cycle based on who is closest to your organization.
When it comes to securing large, and even transformational, gifts, fundraising should always begin with those who are closest to the organization. They have already proven their commitment to the institution.
Consider the college student heading off to school who needs tuition and living expenses. Who is he going to turn to for this funding? The next door neighbour? The parents of a friend? No, he will first turn to the people who have a vested interest in his success – his parents. That same principle applies in fundraising. You first turn to the people who most want to see you succeed.
Employers, suppliers, successful alumni
People or organizations with similar interests

23. Why do people volunteer?
Altruism
Desire to make a difference
Desire for status
Employer encouraged employee
Desire to develop skills and expertise
Desire to build personal relationships
Because they were asked
HEATHER

24. Primary function of Volunteers
Governance
i.e. serving on a board of directors
Set policy, establish direction, hire/fire CEO, ensure fiscal integrity and financial health
Program
i.e. being a Big Sister or Big Brother
Helping to organize a fundraising event
Development
i.e. fundraising (i.e. face to face solicitation)
HEATHER
Volunteers are one of the single most valuable assets a charitable organization can have. They can open doors, raise money, deliver services, and help ensure the charity meets its obligations to the community.
Volunteers are especially critical to the success of major giving and capital campaign projects. Their leadership, influence and respect in the community can help open doors that the institution may not be able to open on their own.

25. Staff obligation to volunteers
Empower
Lead while appearing to follow
Provide opportunities for meaningful volunteer work
Disclose appropriate information to enable them in their volunteer duties
Provide orientation and training
Provide job descriptions
Conduct performance evaluations/give effective feedback
Provide appropriate and frequent recognition
HEATHER

26. Information Needed Biographical:
Individuals: name, address, contact #’s, spouse, employer
Organization: name, address, contact #’s, contact names, address
Relationship to charity
Giving history, alumni status, volunteer involvement
LAI / Prospect Info
Link to the organization, giving ability, areas of interest, cultivation status
Cultivation & Solicitation Activity
Record of donor contact (call reports, briefing notes, action tracking, proposals submitted)
Recognition & stewardship provided
ERIN

27. How is Donor/Prospect Information Used?
To identify potential donors along with their LAI (Link, Ability, Interest)
To track gifts for receipting and recognition purposes
To track giving patterns in order to determine RFA (recency, frequency, amount)
To track and coordinate “moves” with the prospect/donor
ERIN

28. How is Donor/Prospect Information Collected?
Personal contacts
Participation records (giving history, volunteer history, past contact between donor and charity)
Public information (internet, newspapers, research sites, business journals, directories)
HEATHER – ways of finding prospects

29. Ethics & Confidentiality
FOIPP (Freedom of information; protection of privacy)
APRA Code of Ethics: Confidentiality, accuracy, relevance, accountability, honesty
Donor Bill of Rights
Code of Ethical Fundraising Practices
HEATHER

30. Difference between Stewardship & Recognition
Stewardship is the process of ensuring the donor’s gift is used as intended and that the use, impact and results of their gift are communicated back to the donor, thereby gaining their confidence
Recognition is one element of effective donor stewardship. Recognition can be used to honour a gift (annual) or the relationship (cumulative) or both.
ERIN

31. Recognition Methods Naming opportunities Donor walls
Donor thank you events
Plaques/mementos
Thank you letters & phone calls
Meetings with senior leadership
ERIN

32. The key to good stewardship is communication.
Stewardship Methods
Stewardship reports
Newsletters
Meeting with key constituents involved in the funded area.
Invitation to events pertaining to the funded area (i.e. ground breakings, awards ceremonies).
Tours
The key to good stewardship is communication.
ERIN

33. Helpful resources
Henry A. Rosso, Achieving Excellence in Fundraising – the Bible of fundraising
Association of Fundraising Professionals
Canadian Association of Gift Planners
fundraising articles by Mal Warwick

34. More helpful links
An online gift range chart calculator
Ketchum Canada Inc. and publishers of Philanthropic Trends

35. More helpful links www.charityvillage.com www.givingandvoluntering.ca
A showcase for fundraising
Lots of resources and tips on online fundraising