Fund-raising H Forum October 16, 2004 Megan K. Riebe Director of Development WSU Extension/4-H & Director of the Washington State 4-H Foundation

4-H Youth Development & Private Fund Raising: A Natural Partnership

Fund Raising Is More Than Raising Funds Fund raising is a vital part of the comprehensive process of “development” Development is a series of deliberate activities that engage and retain funders in a donor-investor relationship Development is much more than a series of approaches to prospects and donors (direct mail, telefunding, events, etc.) that yield revenues annually

Philanthropy, Development, and Fundraising Philanthropic behavior is motivated by values Development is the process of uncovering shared values Fund raising is the process of enabling people to act on their values (Grace 1997)

Philanthropy is… Voluntary action for the public good, which is based in values (Payton 1988) Voluntary action includes joining, serving giving, and asking People engage in philanthropic community activities for organizations whose values they share

Development is… The process of uncovering shared values How we help potential and existing donors understand the impact of their investment on the organization and the community Creating donor-investors

Fund-raising is… The opportunities we provide donors to act on their philanthropic values The activities we do that provide those opportunities

Philanthropy Based in Values Development Uncovers Shared Values Fund Raising Enables People to Act on Values

Development Activity Includes: Identifying and qualifying prospects Engaging prospects and donors in activities of the organization Cultivation through a planned series of activities and contacts to build interest Solicitation of gifts – prospects become donor-investors Stewardship that is meaningful for the donor Promotion to increase visibility of the impact the organization is making in the community

From This Perspective: Organizations meet needs, organizations do not have needs The focus is on program results, not financial goals The process of asking and giving is based in shared values The goal is to engage volunteers and donors at all levels in a process that will convert them to donor- investors All contributions become investments in the communities served

Trends in Development Decreased State/Federal Funding: Leads to increased need for private sector fund-raising. Fund-raising Increase: More 501(c)(3) special interest organizations increasing use of direct mail and phone solicitations to target all donors. This creates a challenge for WSU and 4-H programs We need to increase the awareness of our great programs NOW, to secure FUTURE gifts.

Why Do People Give? The top two reasons people make a charitable gift are… BECAUSE THEY ARE ASKED! 2. THEY BELIEVE IN THE PROGRAM OR INSTITUTION!

Why Do Corporations and Businesses Give? 1. TO BE GOOD CORPORATE CITIZENS (PUBLIC RELATIONS VALUE) 2. TO IMPROVE COMMUNITIES WHERE EMPLOYEES AND CUSTOMERS LIVE AND WORK 3. QUID PRO QUO – TO RECEIVE A BENEFIT THAT AFFECTS THEIR BOTTOM LINE

Development Cycle

Development as a Cycle Identification: Looking for Linkage, Ability & Interest Cultivation: Increase involvement, discuss needs and projects, identify donor intent, match donor’s interests with needs Solicitation: Ask for a specific amount for a particular need to accomplish a defined project Stewardship: Recognition, attention, thank you from all levels; inform where and how the money was used (progress reports, scholarship letters, annual endowment reports, etc.) Our best future donors are our current donors!

Development Audience for Extension/4-H WSU Alumni Friends (farmers, ranchers, clients) Commodity Groups, Commissions 4-H Parents, Volunteers & Alumni Special Interest Groups Corporations/Foundations Faculty/Staff

CAHNRS: 24% WSU Ave.: 31% CAHNRS: 24% WSU Ave.: 31% The impact of $100 (only $4.17 per paycheck) The impact of $100 (only $4.17 per paycheck)  Provides ONE student internet-access for an academic year  Provides19 hours of work-study in the child development center Every Gift makes a Difference… Give to the area of your choice Faculty/Staff Drive Participation

Sources of Funding  Individuals  Corporations  Private Foundations  Community Organizations  Public Funds  Partnerships

Development Methods Direct mail Telemarketing Personal solicitation Written proposals/grants Special events Membership campaigns Planned giving

Planned Gifts Major Gifts Repeat/Upgrade Donors Participation/Annual Donors Size of Gifts Number of Gifts Face-to-Face Estate Planners Face-to-Face Personalized Letters Special Events Face-to-Face Direct Mail Telemarketing Local/Annual Events

Major Donor/Planned Gift Identification When you identify a prospective donor, please CALL us The Development Office has a process to assist you With you, we will plan a strategy to bring your funding initiative to the donor’s attention

WSU Centrally Managed Corporations and Foundations MicrosoftGates Foundation Battelle Paul Allen Foundations BoeingPemco/Safeco WeyerhaeuserUS Bank Hewlett PackardBank of America Keck FoundationWashington Mutual Kellogg FoundationM. J. Murdock Trust Call Before you Submit!! We can help you!

Commonly Accepted Gifts Cash: usually a personal, business, or bank check Securities: stocks, bonds or mutual fund shares which have appreciated may provide tax benefits Real Estate: real property may provide tax/financial benefits plus relief from property management burdens Equipment or Personal Property: equipment can be used or liquidated into cash In general, any asset with real value; NOT SERVICES

Non-cash Gifts Examples include equipment, software, hardware, books, supplies, collections, plant material, seed, chemicals, etc. Have value without being liquidated to cash Special documentation of value is necessary

Gift and Estate Planning Charitable Gift Annuity Charitable Trust Life Insurance Retirement Assets Testamentary Gift Real Property

A gift is a voluntary contribution where all of the following conditions must apply: 1. Funds are given irrevocably. 2. The donor does not require goods or services in exchange for the gift. 3. Rights to any publication, inventions and patents resulting from use of funds reside with WSU. Gift or Grant ??

If not a GIFT, then it’s a GRANT If, according to the criteria, a contribution is NOT a gift, it is processed through the CAHE Business and Finance Office as a grant. Grants are charged a percentage for indirect costs at a pre-determined or negotiated percentage. Gift or Grant ??

The Importance of Stewardship Donors like to see assessment and accountability measures built into projects Donors expect to be THANKED Corporate/Foundation program officers want to take materials back to their board members Current donors are our most likely future donors!

WSU Foundation Gift Clubs Annual Giving Platinum President’s Associates: $10,000 + Crimson President's Associates: $5,000 - $9,999 Silver President’s Associates: $2,500 - $4,999 President's Associates: $1,000 - $2,499 President’s Associates receive special recognition in WSU publications and as guests of honor at the President’s Convocation and WSU Foundation events.

WSU Foundation Gift Clubs Lifetime Cumulative Giving Laureate $1 million + Benefactor $100,000 - $999,999 These donors are publicly recognized at the Foundation’s Fall Recognition Dinner Gala and are listed on a display wall in the French Administration building on campus.

Long-Term Relationships Fund-raising is NOT a quick fix to budget cuts. Gifts that we work on today may not materialize for several years. Feed the “pipeline”. PLAN your WORK and WORK your PLAN.

CAHNRS/Extension Alumni & Development Office Mission Advance the teaching, research and extension endeavors of the College of Agricultural, Human, and Natural Resource Sciences and WSU Extension by generating private contributions to supplement and enhance state and federal revenues for capital, operating, program, and student assistance funds.

Washington State 4-H Foundation Mission The Washington State 4-H Foundation was founded in 1961 for the purpose of serving 4-H youth programs in Washington State. Since it's beginning the foundation has actively supported programs on a state wide level in partnership with WSU Extension.

How Can the Development Staff and the 4-H Foundation Help? Gift Accounting/County Accounts Scheduled Audits Professionally Managed Investments Earning Power of Pooled Foundation Assets Gift Acknowledgement Donor Recognition Data Management Grant Proposal Review & Submission Grants Management

Programs & Projects That Get Funded: Meet a demonstrated need Can be replicated, but do NOT duplicate Model programs Underserved populations Have qualified staff to manage Have built in assessment and measurable objectives Leverage other funding sources Have strong partnerships and collaboration

To Increase the Probability of a Gift:  Involve the donor through volunteer activity, advisory boards, focus groups, research activities, field days  Provide information about our great teaching, research & extension programs  Emphasize the Land Grant Mission - To Serve the People and the State