Presentation on theme: "Thomas P. Holland, Ph.D. Professor"— Presentation transcript:
1 Fundraising with Individuals Annual Giving Special Events Capital Campaigns Major Gifts Thomas P. Holland, Ph.D. ProfessorUGA Institute for Nonprofit Organizations
2 Annual GivingOrganized effort to secure gifts on an annual basis, either by mail, telephone, personal solicitation, events, or all four.The primary fundraising method used to broaden support, upgrade giving levels, and provide operating support for ongoing programs.The backbone of most fundraising programs.Complements other forms of giving: planned, capital, endowment.A cyclical, multi-stage process that may involve several solicitation strategies.
3 Purpose of annual giving Acquire new donorsRenew donor support annuallyCultivate donors to increase giving levelsBuild donor loyaltyIdentify and involve leadersIdentify major, capital gift prospects
4 The Gift PyramidRule of thirds: 1/3 of goal will come from top few gifts; the second 1/3 from larger number of mid-range gifts; bottom third from larger number of smaller giftsMust cultivate smaller donors to make giving a practice and to enlarge gifts in subsequent yearsMust know donor capacity and approaches that will produce larger gifts (donor research)Begin campaign with top prospects (quiet phase)
5 Annual Giving in the Pyramid of Giving New donors are unlikely to make significant gifts to an organization that is unfamiliar to them.Annual giving programs build on initial gifts or expressions of donor interest to develop a consistent giving pattern. They represent an essential stage in the giving cycle before a major donor commitment is possible.Time (3-5 years), energy, work and budget are required to build a broad base of predictable annual donors.
6 Ladder of effectiveness Henry Rosso, Achieving Excellence in Fundraising, Jossey-Bass Person to person solicitationPersonal letter with phone follow upPersonal phone call with follow-up letterPersonal letter with no follow upPersonal phone call with no follow upFundraising benefit (event)Impersonal letter, direct mailDoor-to-doorProduct salesImpersonal phone call (telemarketing)Media advertisingMostLeast
7 Rules of thumb in annual giving Understand what will motivate your donors or prospective donors before you plan your solicitation strategies.Carefully match prospects to projects and to solicitation strategies.Renew the same way you solicited the original gift.Provide varied giving opportunities during the annual fund cycle.Provide varied and multiple forms of appreciation during the annual fund cycle.Track your results carefully to understand your donors’ giving patterns.
8 Telephone solicitation, Phonathons Works best for renewals or prospects who do not respond to mailMost effective when combined with a before and after mail campaignGood way to acquire information on donor baseGood way to involve natural volunteer groups (e.g., parents, alumni, students, former clients)Good way to involve new volunteers in fundraisingRequires careful planning, training of callers
9 Telephone solicitation set-up Write a calling script, test itObtain donor names, addresses, phone numbersBe prepared for mail follow-up to pledgesFind a calling site and enough phonesOrganize volunteers, board and staffTrain themProvide a fun and supportive atmosphere for callersHold post-mortem to evaluate results
10 Mail Solicitation Reaches the largest number, but least personal Effective for renewing current donors, but be prepared to mail more than onceFor new prospects, this is the least efficient both in terms of initial gift (1-2% return) and likelihood of renewal.Requires significant investment of time to start a mail campaign: acquire prospects, develop package, buy postage, plan donor follow-upLots of good technical expertise available.Test your letters, get evaluative feedback, revise.
11 Special eventsPros: will raise visibility for your cause, and involve a certain kind of donor motivated by events. Good way to cultivate new prospects. Good way to socialize your board, volunteers, staff. Can be memorable event and lots of fun!Cons: Requires huge amounts of time, people, energy. Rate of return may disappoint. Not the best option if you’re only in it for the $$.
12 Special events set-upCarefully plan budget; analyze goals, profitability.Find a “niche” – an unusual or unique event – know your “competition”.Understand your donor base – will they come?Watch for conflicting events.Involve experienced volunteers, event planners.Have contingency plans for everything.Understand the difficulties in renewing special event gifts.Understand the tax consequences for donors.
13 Personal Solicitation Most effective and efficient form of fundraisingRequires training, planning and follow-upBest way to involve board, other committed volunteers and donorsRequires understanding of volunteer recruitment, management and support needs, including prospect research
14 Personal Solicitation Preparation:obtain accurate information about donor/prospect interests, past giving history, capacity.Determine best person to contact the prospective donor (let volunteers pick their donor prospects)Offer adequate support, training to solicitorPresentation:Match solicitor to prospectArrange to visit a prospect in person when possibleAsk for a specific amountFollow through on any follow-up prospect requests
15 Personal Solicitation (cont.) The CloseBe positive, not apologetic if prospect declinesBe prepared to negotiate terms of giftMake careful notes about next steps and follow through with donorThank them
16 Example: Small college annual giving plan Targeted groupSolicitation strategyGoalBoardIn person$250,000AlumniMail -- prospects < $500Phonathon -- non mail donorsIn person -- prospects > $500$250,000 $100,000 $500,000Area businessesFall art auction$150,000$100,000ParentsSame as alumni$200,000StudentsSpring special eventTOTAL$50,000$1,600,000
17 The Basics of Major Gifts Build on annual gifts but seek larger amountsSmall number of givers will provide most fundsThe most cost-effective approach to fundraisingMay be used forNew or expanded programsCapital for buildings or equipmentEndowmentsSponsorship of special need or activityUsually come from person’s assets (savings) rather than their current incomeGo to organization’s assets rather than its current operationsRequire extensive personal cultivation
18 Steps1. Specify major opportunities for sponsors, drawing from strategic plan and linking with prospect’s interest2. Plan the gift pyramid3. Identify likely giversRecords of prior givingPrior engagement with organizationInterests and motivationsCapacity to giveNetwork of associates
19 More steps4. Start with board members and others already engaged with organization5. Each person must make own gift first, before asking anyone else6. Timing: Consider special events in prospects’ lives (birth, marriage, change in business)7. Prepare personalized presentation, drawing on case statement and linking opportunity with prospect’s interests
20 Steps (continued) 8. Presentation plan Personalized case statementFinancial records of organizationOpportunity for which gift is soughtBenefit to giverSpecific request and options9. Peer makes appointment to present in person, in private
21 Asking for the gift1. Build rapport, show interest in prospect’s issues and concerns2. State the case for support of opportunity3. Encourage further involvement4. Identify benefits of action5. Ask for the gift6. Be quiet7. Respond appropriately8. Follow up with thank you, regardless of outcome9. Update records10. Report to donor about use of gift