Presentation on theme: "Fundraising 101 Presented by:"— Presentation transcript:
1Fundraising 101 Presented by: Erin Morantz, CFRE, KCI Ketchum Canada Inc.- ConsultantHeather Wardle, Seva Canada - Director of Development
2Agenda Understanding the language Understanding the fundraising environmentUnderstanding the donorUnderstanding fundraising programsUnderstanding the development processUnderstanding the role of volunteersUnderstanding the role of information managementUnderstanding the role stewardship and recognitionGlimpse at how the current economic downturn is affecting philanthropyERINOur 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.
3Fundraising Buzz Words AcquisitionAnnual GivingBequestCapital CampaignCase statementCultivationDirect MailDonorDonor AcquisitionDonor PyramidDonor RetentionEndowmentGift In KindMajor GiftsMoves ManagementPlanned GivingProspect / Qualified ProspectRecognitionRenewalSolicitationStewardshipVolunteerHEATHER
4Philanthropy in Canada Over 80,000 charities in Canada6.8% gross domestic product12% of Canadians employed in the charitable sectorRevenues total $112 billion per year78% of individuals 15 years and older donate money to charityERINQuestions from questions
5Distribution of Support from Individual Canadians Wide DistributionDistribution of Support from Individual CanadiansDistribution of CharitiesHEATHERWho do Canadian donors support? (Source: 2000 NSGVP)Religious organizations continue to receive half of all donationsHealth 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%ERINTalk 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
6The statistics tell us… Individual giving will be the cornerstone of successful development programs with major gifts leading the wayDonors are more sophisticated and want “impact” and involvementHEATHER85% of money donated in Canada comes from individuals or family foundationsIndividuals 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.ERINTell a story from current campaign
7Who or what is a donor? Individuals & Families Corporations / BusinessesEmployee GroupsFoundationsGovernmentAssociations/ClubsERINBasically 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 representOnly registered charities and political parties however can issue tax receipts
8Why do people give? to demonstrate power tax and financial planning considerationsgain influence, professional advancementpeer approvalego gratification/self esteemrecognition from peersidentify with a worthy cause of goalsincere desire to help/carebelief in the missionimmortalitydiminish negative feelings, guilt, fear, angerexpress deep emotion - grief (memorial) or Joy (commemorative)give something backfor the joy of it.HEATHER
10What are Donors Looking for? Positive imageVision, uniqueness, urgencyImpact on community / societyStrong strategic planning / financial managementPrioritized needsClear description and outcomes of the project(s) to be funded“Fit” with the donorSense of permanenceERIN – cover the slideHEATHER – it would be great if you have any specifics here about what donors to international causes want
11Donor Bill of RightsInformation about mission, use of donated resources and organizational leadershipAccess to financial statements.Assurance that gifts will be used as intendedReceive appropriate acknowledgement and recognition.Assurance that gifts handled with respect and with confidentialityExpect 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 listsFreedom 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.
12Special Events or Fundraisers Fund Raising PyramidBequestsMajor giftsAnnual GiftsERINSpecial Events or Fundraisers
13Donor PyramidsERINIf 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.
14Annual Gifts Made from a donor’s cash flow Do not require financial planningSupport the ongoing needs of an organization – they are the sustaining giftsMany gifts at lower levels are soughtHEATHER
15“Ladder of Effectiveness” 1. Personal visit by a team2. Personal visit by one person3. Solicitation by personal letter with a follow-up phone call4. Solicitation by personal letter5. Group direct mailERIN
16Major GiftsGenerally require thought or planning on the part of a donorFewer solicitations for larger gift amountsGenerally, the gifts support an organization’s long-term goalsDonors can be individuals, corporations or foundationsThe key is that someone must ask for a significant gift face to faceERIN
17Corporate GivingCorporations often have established giving criteria by which they judge programs and organizations seeking supportThey are not generally annual donors. Instead, they provide major gifts for programs and capitalThe face of corporate giving in Canada is changing in a number of waysERIN – talk about the economy as it relates to corporate givingANNNECDOTES
18Corporations Looking Beyond Dollars Strategic partnershipsLonger timelinesGreater scrutiny, higher expectationsNeed to manage competition and increase in requestsTheir context: spotlight on corporate governance, continued increase in competition, globalizationERIN
19Planned GivingIncludes gifts of shares, wills and bequests, life insurance, etc…Usually, only the most sophisticated organizations will have an organized planned giving programHowever, it never hurts to make donors aware of the options for giving available to them.HEATHER – story
20The Donor Development Process ESTATEInvestmentORPLANNEDGIVINGBequests / LegaciesPlanned GiftsInvolvementMAJOR GIVINGEndowment CampaignsInterestCapital and Special CampaignsROSEThe 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 FoundationsInformationANNUAL GIVINGSpecial EventsAnnual Appeal, Direct Mail, TelemarketingIdentificationSmall Gifts from the Public-at-Large
21Donor Development Cycle ERINAnother, 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 donorsCareful 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.
22The Constituency Circle BoardPACStaffStudentsDonorsHEATHERParticularly 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 alumniPeople or organizations with similar interests
23Why do people volunteer? AltruismDesire to make a differenceDesire for statusEmployer encouraged employeeDesire to develop skills and expertiseDesire to build personal relationshipsBecause they were askedHEATHER
24Primary function of Volunteers Governancei.e. serving on a board of directorsSet policy, establish direction, hire/fire CEO, ensure fiscal integrity and financial healthProgrami.e. being a Big Sister or Big BrotherHelping to organize a fundraising eventDevelopmenti.e. fundraising (i.e. face to face solicitation)HEATHERVolunteers 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.
25Staff obligation to volunteers EmpowerLead while appearing to followProvide opportunities for meaningful volunteer workDisclose appropriate information to enable them in their volunteer dutiesProvide orientation and trainingProvide job descriptionsConduct performance evaluations/give effective feedbackProvide appropriate and frequent recognitionHEATHER
26Information Needed Biographical: Individuals: name, address, contact #’s, spouse, employerOrganization: name, address, contact #’s, contact names, addressRelationship to charityGiving history, alumni status, volunteer involvementLAI / Prospect InfoLink to the organization, giving ability, areas of interest, cultivation statusCultivation & Solicitation ActivityRecord of donor contact (call reports, briefing notes, action tracking, proposals submitted)Recognition & stewardship providedERIN
27How is Donor/Prospect Information Used? To identify potential donors along with their LAI (Link, Ability, Interest)To track gifts for receipting and recognition purposesTo track giving patterns in order to determine RFA (recency, frequency, amount)To track and coordinate “moves” with the prospect/donorERIN
28How is Donor/Prospect Information Collected? Personal contactsParticipation 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
29Ethics & Confidentiality FOIPP (Freedom of information; protection of privacy)APRA Code of Ethics: Confidentiality, accuracy, relevance, accountability, honestyDonor Bill of RightsCode of Ethical Fundraising PracticesHEATHER
30Difference 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 confidenceRecognition is one element of effective donor stewardship. Recognition can be used to honour a gift (annual) or the relationship (cumulative) or both.ERIN
31Recognition Methods Naming opportunities Donor walls Donor thank you eventsPlaques/mementosThank you letters & phone callsMeetings with senior leadershipERIN
32The key to good stewardship is communication. Stewardship MethodsStewardship reportsNewslettersMeeting with key constituents involved in the funded area.Invitation to events pertaining to the funded area (i.e. ground breakings, awards ceremonies).ToursThe key to good stewardship is communication.ERIN
33Helpful resourcesHenry A. Rosso, Achieving Excellence in Fundraising – the Bible of fundraisingAssociation of Fundraising ProfessionalsCanadian Association of Gift Plannersfundraising articles by Mal Warwick
34More helpful linksAn online gift range chart calculatorKetchum Canada Inc. and publishers of Philanthropic Trends
35More helpful links www.charityvillage.com www.givingandvoluntering.ca A showcase for fundraisingLots of resources and tips on online fundraising