International Institute of Christian Discipleship CS 05c Technical Aspects of Community Services Ministry: Fundraising Fundamentals General Conference of Seventh-day Adventists ®

“Some people give much but get back even more. Others don't give what they should and end up poor. Whoever gives to others will get richer; those who help others will themselves be helped.” —Prov. 11:24-25 (NCV)

“If you give to the poor, your needs will be supplied! But a curse upon those who close their eyes to poverty.” —Prov. 28:27 (TLB)

“If you give, you will receive. Your gift will return to you in full measure, pressed down, shaken together to make room for more, and running over. Whatever measure you use in giving (large or small) it will be used to measure what is given back to you.” —Luke 6:38 (NLT)

It is blessed to receive, but it is more blessed to give... Fundraising is ministry. It is following the example of Jesus, of following God’s advice and request that we be generous.

The Wealth of the Gentiles by Ellen G. White “They may have no sympathy with the work, and no faith in Christ, and no practice in His words; but their gifts are not to be refused on that account…. I have repeatedly been shown that we might receive far more favors than we do in many ways if we would approach men in wisdom,...

The Wealth of the Gentiles by Ellen G. White (cont.) acquaint them with our work, and give them an opportunity of doing those things which it is our privilege to induce them to do for the advancement of the work of God.” —Testimonies to Ministers, pp. 202, 203

“He has an abundance in our world which He has placed in the hands of men, by which the hungry might be supplied with food, the naked with clothing, the homeless with homes. The Lord would move upon worldly men, even idolaters, to give of their abundance for the support of the work, if we would approach them wisely, and give them an opportunity of doing those things which it is their privilege to do. What they would give we should be privileged to receive.” —Testimonies to Ministers, pp. 197

“We should become acquainted with men in high places, and by exercising the wisdom of the serpent, and the harmlessness of the dove, we might obtain advantage from them, for God would move upon their minds to do many things in behalf of His people… But we need not sacrifice one principle of truth while taking advantage of every opportunity to advance the cause of God.” —Testimonies to Ministers, p. 198

When we do fundraising, we are able to help people be generous and follow biblical advice. Secular research indicates that those who give and volunteer live longer and are happier! This compares well with biblical principles about the joy and fulfillment of giving.

Communities of participation Association Frameworks of consciousness Identification with cause Invitation to participate Asked to give Discretionary resources Accepted capacity Models/experiences from youth Positive examples Intrinsic and extrinsic rewards Positive outcomes Urgency and effectiveness Philanthropy meeting needs Demographic characteristics Circumstances affecting giving Material adapted from research by Paul G. Schervish. For further explanation see

What Donors Say is Important in Deciding What Organizations to Support How an organization spends donated funds. Organization’s mission or goal. How an organization helps local area. Details on how their specific donation will be used.

What Donors Say is Important in Deciding What Organizations to Support (cont.) Information on why donations are needed. Statistics on the number of people their donation helps. Stories on people who have been helped. Information on how a donor can help, beyond cash donations.

What Donors Say is Important in Deciding What Organizations to Support (cont.) Summary of progress made in the last year. Charity providing a statement showing what donation pays for. Receiving small thank-you gifts for donating (Vertis Customer Focus 2002: Direct Marketing for the Nonprofit Sector)

Why People Don’t Give Because they are not asked. They don’t believe in the cause (or, we haven’t made a strong enough case). There is lack of trust in the organization and its leadership. They aren’t informed on the use of their money, or their funds aren’t used according to promises. There isn’t evidence of good management.

Why Don’t People Like to Ask? Fear of rejection. Cultural influences. Don’t know how. Don’t have a strong case to make. Don’t have a real commitment to the cause.

Importance of Fundraising for Successful Causes Bring advocates to the team Help move cause and its programs beyond the basics—or keep them viable and alive Develop loyalty to the cause Provide involvement by and from influential constituents Create movement toward a vision

Importance of Fundraising for Successful Causes (cont.) Accomplish more! Fundraising is not begging or selling. It is sharing a message that is important to the cause and the donor. Fundraising is a way to help good causes succeed—causes which help people in the way Jesus would.

Importance of Fundraising for Successful Causes (cont.) Fundraising is a process, an organized approach to managing resources—human and financial. Fundraising is a team effort, and a coordinated effort, if it is successful. Fundraising requires investment of resources—time, money, commitment, and staff.

Importance of Fundraising for Successful Causes (cont.) Fundraising strengthens an organization; strong organizations are winners in every way. This implies accountability, good management, organized efforts, clear communication, and excellent customer service.

Know basic marketing principles Consider the environment and climate for fundraising Create and examine case Involve volunteers (if possible, board members). Determine potential donors Select campaigns and tools Research prospects Create, use, and communicate a plan Solicit the gift Renew the gift Steward the gift

Know Basic Marketing Principles Understand and use principles of the exchange relationship. Be able to express values on which the exchange is based. Illustration and exercise: The exchange relationship.

Consider the environment and climate for fundraising. What has an impact on fundraising success or challenges? Analyze the positive and negative, external and internal influences and impacts that help or hinder fundraising success in your country, region, city, or wherever you will raise funds.

Create and Examine Case A case—a statement of all the reasons why someone should and could support the cause— is highly important. A compelling case that is exciting and shows results is the foundation for asking.

Making the Case What problem are you trying to solve, or what need are you attempting to meet? What outcomes can the donor expect? Why is this important to accomplish (values)? How will you do it, and other details? A case should answer the question “So what?!” “What difference will it make if a donor gives?”

Determine Markets Identify and analyze all possible funders. Qualify these and prioritize them. Ask yourself, “Who cares?!” A diversified donor base yields the best success, and ensures an on-going program.

Possible Donors Foundations (what kinds and where located?) Business (all kinds) Associations Churches Governments INDIVIDUALS! Other?

Build a Fundraising Team of Professionals, Colleagues, Volunteers and Others Fundraising is the right person asking the right prospect, and the professional who is manager of the process can’t do it all, or isn’t always the right person to ask. A team is extremely important for success, for many reasons.

Select Programs and Strategies Use the right way of asking that matches the potential donor and his/her preferences for interaction and communication. Select from a wide range of possibilities to maximize results. In other words, fill your toolbox!

Campaigns Annual fund Capital campaigns Endowment building Special projects Major gifts

Your Fundraising Toolbox Mail (personal, impersonal, mass) Telephone (personal, phonathons, telemarketing) Events (various types and purposes) Proposals and other written requests The Internet The face-to-face request Fees for service, products, other legitimate income- producing activities

Research Prospects Knowing the appropriate information about a prospect aids in the right cultivation and solicitation steps, respects the donor, and avoids futile work.

Researching Prospects Research only what you need to know in order to ask the right donor in an intelligent way. Keep records on what you learn, but make sure the information is accurate and ethical. Research your prospect so you can match that prospect with the right fundraising strategy.

Create, Use and Communicate a Plan If there is no plan, there will be no concrete evidence of goals reached, programs achieved, and clients satisfied. Donors want accountability, and planning aids credibility. There will be no coherence or organization to the effort.

The Process of Asking Introductory section—purpose and topics to talk about. Body of conversation—dialogue about the cause and its details, questions and answers, related information. Conclusion—review major points, make a specific ask, promise mutual benefits, promise follow-up.

Practice Good Stewardship Respect the donor’s wishes, keep promises, engage in ethical practice.

Stewardship and Financial Management Sound business processes & practices Effectiveness & efficiency standards Fund accounting Donor focused policies on receiving, investing, expending, reporting Endowed fund usage

Foundations of Fundraising: Summary and Conclusions

Fundraising will succeed when... There is strong leadership at the administrative and board levels. Fundraisers are part of the organization in a credible way, and receive organization support. Fundraising is an organizational effort. The fundraiser is not a solo performer.

Fundraising will succeed when... (cont.) There is a supportive infrastructure. There is good communication with all constituents. There is an understanding that it takes money to raise money, while at the same time there is accountability and attention to efficiency and effectiveness measures.

Challenges for Fundraising Lack of coordination Risk of alienating donors when process isn’t clear Perception of no-need Not enough resources invested Not an organized effort Haphazard and not focused

Why Fundraising? If not, what will happen? How much better can we do? What else do we need to or want to do? Contingency plans—the “what-if” lessons. Consideration of all side-benefits. Keeping up in challenging times!

Fundraising–why we do it and what good it does. “I shall pass through this world but once. Any good that I can do, or any kindness that I can show any human being, let me do it now and not defer it. For I shall not pass this way again.” —Stephen Grellet