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

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Presentation on theme: "Fundraising 101 Presented by: Erin Morantz, CFRE, KCI Ketchum Canada Inc.- Consultant Heather Wardle, Seva Canada - Director of Development."— Presentation transcript:

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

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

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

5 Wide Distribution Distribution of Charities Distribution of Support from Individual Canadians

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

7 Who or what is a donor? Individuals & Families Corporations / Businesses Employee Groups Foundations Government Associations/Clubs

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.

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

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.

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

13 Donor Pyramids

14 Annual Gifts Made from a donors 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

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

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 organizations long-term goals Donors can be individuals, corporations or foundations The key is that someone must ask for a significant gift face to face

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

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

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.

20 MAJOR GIVING ANNUAL GIVING Bequests / Legacies Planned Gifts Special Events Annual Appeal, Direct Mail, Telemarketing Small Gifts from the Public-at-Large ESTATE OR PLANNED GIVING Endowment Campaigns Capital and Special Campaigns Major Gifts from Individuals, Corporations and Foundations The Donor Development Process Involvement Interest Information Identification Investment

21 Donor Development Cycle

22 The Constituency Circle Board PAC Staff Students Donors 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

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)

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

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

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

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)

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

30 Difference between Stewardship & Recognition Stewardship is the process of ensuring the donors 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.

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

32 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.

33 Helpful resources Henry A. Rosso, Achieving Excellence in Fundraising – the Bible of fundraising Association of Fundraising Professionals Canadian Association of Gift Plannershttp://www.cagp- resources/ fundraising articles by Mal Warwick resources/

34 More helpful links resources/giftrange/giftcalc.aspx An online gift range chart calculator resources/giftrange/giftcalc.aspx Ketchum Canada Inc. and publishers of Philanthropic Trends

35 More helpful links A showcase for fundraising Lots of resources and tips on online fundraising

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