“How to” from a development perspective © 2010 – Dana Zupanovich Lucka Fundraising 101 “How to” from a development perspective © 2010 – Dana Zupanovich Lucka

Fundraising (Development): What Is It? “What's in a name? That which we call a rose. By any other name would smell as sweet." Panhandling Shaking down Hitting up Begging Philathro-tution Fund’raising adj. --The organized activity or an instance of soliciting money or pledges, as for charitable organizations or political campaigns. Also includes: Gifts in kind Volunteer time/talent Estate gifts Foundation grants See also “relationship management” Do’nor  (dnr) n. -- One that contributes something, such as money, to a cause or fund. Before they are “donors”, they are “suspects” then “prospects.”

Contracts vs. Philanthropic Grants Contracts/Non-philanthropic Grants Philanthropic Grants/Gifts Governmental or quasi- governmental entity Entity requests proprietary rights and deliverables Entity hopes to gain economic or other tangible benefits Restrictions placed on publication of data Typically no “relationship” Non-governmental source, private donor or foundation Requires a proposed plan, brief budget and stewardship reporting No quid pro quo language Without expectation of direct economic or other tangible benefit Need for relationship

Goals and Expectations Know thy self (mission, vision, purpose, budget) Know thy organization (case statement – empathy and passion) Know thy audience (know why they give)

The Fundraising Cycle Working with Development to move “prospects” through the cycle to become donors requires “Relationship Management”

How Does the Cycle Work Suspects (members, alumni, friends, foundations, etc.) are identified and entered in to database (i.e. Razors Edge) Suspects are assigned to a DOD for assessment (research and planning) Once assessment has been made and determined to have the “big three*” they are “Prospect” Prospect is cultivated, solicited (asked) and then stewarded (then repeat )

*The Big Three 1 Affinity How do they feel about your cause or program? Are they active or involved? 2 Capacity What is the donor’s capacity to give? 3 Philanthropic Intent Do they have a philanthropic spirit? Scrooge or not?

Teaming Up With Development Tips: Send monthly project updates Stop by for a visit to brainstorm potential prospects Bring DOD in at the planning stages The Development Office: Helps identify new prospects Coordinates fundraising efforts and provides connections to membership, Planned Giving, Annual Fund, Corporate and Foundation Relations, as well as Communications and Marketing Provides consistent “relationship management”

Keys to Successful Appeals Focus on the beneficiaries of your work Don’t be boring Relate one-to-one Keep in mind “a picture is worth a thousand words” Don’t just provide information – evoke action Keep it simple and keep it positive Educate and inspire Make a specific request Make it easy to give

What Should I Say? Proactive (conversation starters): Know your Organization’s “elevator speech” How has (The Organization) made a difference in your life? If you had a million dollars to transform a (Organization) program, where would you invest? Why? Private dollars make good programs great. Where do you see an opportunity to make such a difference?

What Should I Say? Reactive (responses to prospect questions): My son/daughter graduated really benefited from (the Organization). I’d really like to help the X program. That’s wonderful. With funding diminishing, your support will have a significant impact. May I connect you with our Development Officer? The chronic problem with XYZ is really troubling. What do you think can be done? Your concern is completely justified and the X Program is trying to address these needs but private financial support can boost our efforts. May we set aside a time to discuss X’s goals and the opportunities for your participation?

Making the Ask Setting the appointment and presenting the opportunity

The Opportunity (the Ask) Remember: Getting the visit is 85% of the success! Listen – decisions are based 76% on what THEY say. He who speaks first after the ask looses – zip it! Give the testimony (tell the story with passion) – team approach Remember: You are inviting them to join in your organization’s mission “I’d like you to consider…” State amount; and State purpose Don’t fill the silence after the ask Objections are your best friend

Stewardship: Keeping Happy Donors Over 76% of giving nationally comes from individuals while only 12% comes from foundations. Put “friendraising ” in your fundraising! Stewardship of individuals and foundations keeps the relationship alive Keep apprised of program progress Site visits Meeting beneficiaries Being your advocate Keeping connection strong

Reasons for Giving Because I can afford to 50% To give back to the community 46% Personal fulfillment 45% Social beliefs 42% Support the same causes annually 42% Moved at how a gift can make a difference 40% To address issues affecting me personally 38% I believe wealthy people have a responsibility to share their wealth 37% Political/philosophical beliefs 32% Religious beliefs 25% Tax incentives 24% To set example for young people 23% Being asked 21% Desire to establish a worthy activity in which the family can participate 18% Further legacy of parents 11% Business interests 8% Concern over the impact of inherited wealth might have on family members 7% It is expected amongst my peers 6% To offset guilt of being wealthy 5% Public recognition 4%

#1 REASON: “Because they are ASKED!”

© 2010 – Dana Zupanovich Lucka Dana Zupanovich Lucka 559-278-5590 w 559-779-7426 c dmzlucka@yahoo.com http://dodme.wordpress.com © 2010 – Dana Zupanovich Lucka