1. Fundraising for Your Nonprofit Organization
Thomas P. Holland, Ph.D.
Professor and Co-Director
Institute for Nonprofit Organizations
University of Georgia
Athens, Ga.

2. Total Income for All Nonprofits
Fee for services 50%
Public (government) 30%
grants & contracts for restricted purposes
Private Contributions 20%
individuals give about % of that
foundations give about %
corporations give about %
bequests, wills, trusts, endowments 10%

3. Fundraising is Vital
Nonprofit organizations live by donations from supporters.
The board is ultimately responsible for the life and well being of the organization, including income.
Board may ask staff for assistance with specific tasks, but not pass off to them all responsibilities for financial health of the organization.

4. Many Approaches to Fundraising
Fees for users of services
Face to face solicitation
Telephone solicitation
Mail requests
Special events
Contracts (usually with public sources)
Grants (foundations, corporations)
Sales
In-kind solicitations

5. Sources of Individually Contributed Income
Annual giving (unrestricted)
Telephone and mail campaigns (unrestricted)
Special Events (unrestricted)
Capital funds (restricted)
Bequests, wills, trusts, endowments
In-kind contributions

6. Effort and Results Vary
Face to face appeals to persons already well acquainted with your organization are the most productive. They require long cultivation: friend-raising comes first.
The less the personal relationship, the lower the return--across all forms of fundraising (including grants).
There is no inexpensive, high likelihood approach to fundraising. It takes time.

7. Organization Needs Friends To Survive
Community points of view, needs & interests are vital to our successes.
Most staff are internally focused, concerned with quality of projects and programs.
The external environment is increasingly competitive, demanding responsiveness.
Other organizations that are more attentive and responsive will successfully compete for our constituencies and resources.
So we must find out what potential friends want, in what forms and ways of delivery.

8. Most Nonprofits Have TWO Key Constituencies
Clients or consumers for whom the organization exists and to whom goods and services are provided, and
Donors and volunteers who provide the majority of resources necessary for the organization’s services to take place.
Sometimes these overlap (membership association) but more often they do not (homeless shelter).
Dual constituencies make operations complex, as the needs and interests of both must be addressed.

9. Friend-raising
There must be some degree of current interest in the topic for people to respond to overtures from the organization
Information presented must be compatible with listeners’ prior values and attitudes for them to be receptive
People respond in differing ways to the same material, and their response depends on their beliefs and attitudes
Seek to understand each one’s interests and tailor your approaches to match them

10. Exchange
Cultivating sponsors involves identifying how to get the desired response from those individuals and groups the organization wants to engage
People voluntarily give up something (time, money) in exchange for benefits they see as more valuable (recognition, involvement, friendship, worthiness, satisfaction)
There are costs and benefits on both sides. They must be in balance to create satisfied stakeholders and a successful organization.

11. Fundraising Involves Adding Value for Sponsors
Each party in the transaction should sense that they are receiving more than they are giving up.
The nonprofit must understand what target constituencies want and how it truly provides them their expected benefits.
The nonprofit must satisfy efficiently and effectively its half of the transaction
Are we truly adding value for them?
By building on its strengths, the organization can better serve constituencies and strengthen their loyalty.

12. Most Productive Method: IN-PERSON SOLICITATION
70% of contributed funds for most nonprofits come from individuals
90% of gifts come from 10% of donors
Identify people with means through research
Then find people who know them and who will introduce you to them
Invite them to get acquainted with your organization, attend events, volunteer
Listen to their interests and increase their involvement accordingly
Invite them to help sponsor activities
Thank them

13. Over 80% of All Adults Give. Reasons why they do:
1. I was asked to give by someone I trust for a cause I believe in.
2. I believe those with more resources should help those with less.
3. I get personal satisfaction from giving.
4. Because of my religious beliefs or commitments.
5. I feel that I benefit when I help others.
6. Sustaining a family tradition.
7. Giving sets a good example for others.
8. Giving helps my community.
9. Gift in remembrance of a loved one.
10. Gift is tax deductible.
11. Giving is encouraged by my employer.

14. Giving and Asking People give money because they want to.
People don’t give unless they are asked.
People give money to people, not programs.
People give money to opportunities, not deficits.
People give to successful organizations, not to distressed ones.
People give money to make a change for the good.

15. Motivations Differ Learn potential donor’s interests
Engage them with program
Demonstrate accountability
Build involvement and trust
Offer opportunities to provide input and support
Ask what form of recognition is best

16. Key Principles of Fundraising
The board takes leadership, with staff support.
Begin with goals for the organization, not with whatever source seems available.
Search for sources and people who are interested in and share your goals.
Develop relationships with them.
Find ways to engage them with your organization before asking for anything.
Results are directly correlated with the extent of engagement. No shortcuts.

17. Relationships are Primary for Any Approach
Begin with friends, volunteers, former users of services, alumni, and any others with history of engagement with your organization.
Do not waste time or money buying lists from vendors. You won’t raise money by calling or writing to people who don’t already know you or the organization.
There is no substitute for relationships.
Share your excitement and satisfaction with others.
Invite them to participate in ways that interest them, and listen to their responses.

18. The Ladder of Effective Communication
Two-way communication is most effective.
In order of effectiveness:
1. Face to face conversation
2. Small group discussions
3. Telephone conversations
4. Handwritten letter, inviting response
5. Large group discussion

19. The Ladder of Effective Communication
One-way methods are far less effective.
In order of effectiveness:
6. Videotape
7. Mass-produced letter
8. Newsletter
9. Brochure
10. News item
11. Advertisements

20. Ineffective Approaches
Failure to demonstrate accountable use of gifts.
Playing on guilt
Flashy campaign, expensive materials
Asking people to bail out deficits
Failure to build trust before asking
Failure to connect person with mission
Pestering
Hoping somebody else will do it

21. Three Basic Principles
Emotions attract prospects
Accountability sells them
Personal involvement retains them

22. The Board and Senior Staff Develop Friends into Sponsors
Board identifies priorities for new funding.
It demonstrates commitment by 100% giving.
Members and staff share enthusiasm with friends.
Invite them to get acquainted with organization.
Host special events to showcase projects.
Ask friend for support for aspect of interest or introduce to Executive or Chairperson for the ask.
Follow up with appropriate thanks.
Staff supports board in these efforts, rather than doing it for them.

23. PREREQUISITE
If your board is not taking leadership in fundraising, the FIRST task is to solve that problem.
Willingness to learn and try are the beginning steps. Skill comes with practice.
Everything else depends on this foundation.
Everybody must be involved in some way.
No excuses allowed.

24. Common Excuses: I’ll do anything but raise money.
Nobody ever said raising money was part of being on this board. (problem with nominating committee)
We deal with substantive issues, not with raising money. (what is more vital to organization’s survival?)
I’m too busy. (commitment?)
I don’t want to ask my friends for money.
I can’t stand being turned down.
I’m just not good at that sort of thing.
I’ll get around to that later (procrastination)

25. Such Denials of Responsibility Must be Faced and Dealt With
The board is ultimately responsible for the well being of the organization in every area.
Other competitors are moving ahead with raising money, taking your potential donors.
Board members have various talents, all of which are needed.
Fundraising can be learned, practiced, and refined.
It can be fun and satisfying.

26. Apply Basic Rules of Personal Finance
Set goals for future (house, retirement)
Open a savings account
Live on less than your full income
Save rest to pay debt and grow savings
Add savings from every paycheck
Each working adult in family contributes proportionate to means
Put at least half of unexpected income into savings (gifts, bonuses, winnings, inheritance)
Begin now, as time is your best ally.

27. Board Applications
The board is responsible for the future well-being of the organization
It sets strategic goals for the future
identify needed enhancements of organization and programs
become knowledgeable and experienced about fundraising
budget for staff to help board and CEO with marketing, communications, fundraising, advocacy, partnerships, volunteer recruitment and retention

28. Board Applications (cont’d)
Set up savings account or endowment fund
Put 5-10% of every year’s budget there and any cash beyond 2 months’ expenses
Put 50%+ of board campaign nets there
Allow organization to spend no more than half of annual interest earned by fund
Begin right now as time is your best ally
Move to more extensive fundraising and investment approaches in the future

29. Start Small, Build Pyramids
Every board member gives according to means
Each invites friends to a party and asks them to bring some amount for this organization
Maintain database on all givers
Identify those who give larger gifts
Take them to lunch, explore their interests
Match their interests to organization’s needs via volunteer roles
Ask them to invite their friends to party next year
Try creative, alternative events

30. Set Clear Expectations for Board
Write board job description
commitment to values and mission
attendance and active participation
100% giving
public representation and advocacy for organization
Fill gaps in group’s skills by
targeted recruitment
board education on fundraising, communications, volunteering
Engage volunteers in special projects
bring in needed skills
watch for potential nominees
Conduct regular evaluations to learn and grow
Demonstrate accountability to sponsors
via financial reports and individual communications

31. The Board’s Fundraising Committee
Oversees the preparation of a comprehensive plan for review by full board
Ensures a realistic appraisal is made of potential support and reasonable goals are set
Develops consistent message for all to use
Participates actively in identifying prospects, cultivation, asking
Enlists every other board member in specific tasks, events, recognition of donors
Reminds every member to give and to complete assigned tasks
Evaluates efforts for future improvement

32. Support Roles for Board Members
Work with staff to develop volunteer opportunities
Host reception or event where CEO or Board Chair gives brief presentation
Introduce friends to CEO or Board Chair
Identify and do background research on potential donors and doorways
Offer to be a speaker at civic organizations
Work with staff to draft case statements, press releases, other approaches to public awareness
Develop donor appreciation and recognition plans
Search for ideas and people with expertise and bring to board education sessions

33. Basic Steps in a Campaign
Set goals based on organizational strategies
Select steering committee
Set up record system and recognition system
Identify roles and responsibilities for each
Develop case statements (why should anyone give?)
Carry out research on potential donors
Find ways to meet them
Engage them with organization
Invite them to help support specific activities that interest them
Recognize and thank them, keep them involved
Repeat and refine this cycle every year

34. The Fundraising Process: R.O.P.E.S.
1. Research: understand the opportunities to be offered donors and their congruence with donors’ interests
2. Objectives: set fundraising objectives that support the organization’s goals
3. Programming: plan and implement steps to attain those objectives (cultivation)
4. Evaluation: monitor results and adjust steps to improve effectiveness
5. Stewardship: ensure reciprocity, responsible use of gifts, report regularly to donors, nurture relationships

35. Developing the Case Begin with the why: what is our mission?
Then state the what: what do we want to achieve?
Then state the how: how will this new project meet a need and fulfill mission?
Then who: who we are and how well we have been serving our constituencies.
Finally, what specific action do you want the reader or listener to take?

36. The ASK is Essential You are offering them opportunities to do good.
Not everyone has to do every aspect of the campaign, but someone must be ready and willing to do the ask. Guarantee: It won’t hurt if you try.
Time it to come after you already are well acquainted with the person and s/he with you and your organization.
Match ask to their interests and their resources.
Ask for two things: money and help with a task
Ask and then shut up. (Don’t fill the space with nervous chatter.)
Respond to questions and offer alternatives.
Thank them several ways, regardless of results, building relationship for the future.

37. Prerequisites to the ASK
You have the right prospect.
You have cultivated a good relationship with the person, and s/he is familiar with your organization.
You know the person’s interests well.
You have an appointment to discuss the specific opportunity and make the ask.
You know the amount to ask for and the right task needing their expertise.
You are prepared with ways to recognize the gift and to make use of their help.

38. The Asking Scenario Open with pleasantries Get to the subject
Get to the asking
Suggest a specific figure (then be quiet)
Be ready for various negative responses
don’t push or argue (you can’t win ‘em all)
leave the request on the table
be prepared with alternatives if asked
Leave on a positive note
Follow up with a note of appreciation

39. Don’t Be Afraid to Ask for a Large Gift
Giving Levels: Two Examples
Benefactor
Patron
Sponsor
Donor
Contributor
Friend
Senior Associate
Associate
Sponsoring Member
Sustaining Member
Contributing Member
Member

40. Stewardship of Gifts Thank the donor
Find appropriate ways to recognize and publicize the gift. Ask their preferences.
Use the money as the donor intended
Report to donor periodically
Continue to engage him/her with organization
Build long-term relationship of trust

41. Key Steps in Any Approach
Plan
Learn
Meet
Listen
Engage
Ask
Thank

42. Special Events
All types of special events require extensive input from board and staff, often with modest returns
Use for public awareness more than fundraising
Think creatively. Banquets, golf tournaments, marathons have been overdone and lack appeal.
Invite local companies to co-sponsor events in exchange for publicity.
Plan to build on early events and grow to larger attendance and income later
Maintain data base on all givers

43. Sales and User Fees People expect to pay for useful services
Sliding scale for service fees, with top end offsetting losses at bottom end
Builds income over time
Add direct sales of goods or services
For-profit subsidiaries (museum gift shop)
May also be used for leadership development

44. Planned Giving Come from the donor’s capital holdings
Bequests, insurance, gifts or property or income, trusts, endowments
They may be deferred gifts (pledge in a will of life insurance) or current (interest from a trust)
Donors may gain by tax benefits
Usually require specialized staff skills

45. Sources of Grants Government (federal and state)
look for RFPs (Requests for Proposals)
search government web sites
Foundations (
Charitable foundations
Family foundations
Corporate foundations
Operating foundations

46. Grants and Contracts High competition, low yield for effort
Require specialized writing skills
Directed at special programs, not ongoing operations (leaves you hanging when $ runs out!)
Ask public officials about community block grants that might match your programs
Search foundation directories ( for those interested in your programs and goals
Spend time with grant officer
Follow their guidelines for proposal

47. Summary: Seven I’s of Cultivating Donors
Initiative: set goals and get started
Identification of potential sources
Information about them through research
Interest: what are they interested in?
Involvement in your organization
Investment: ask for a specific gift
Integrity in everything you do and say

48. A Board Members’ Fundraising Checklist
Do I have a clear picture of the mission, priorities and needs of the organization?
Do I really understand and support the case, why someone should support this organization?
Do I contribute to the extent of my means?
Do I offer additions to the list of prospects?
Do I share in cultivating prospects?
Do I make introductions for others to make solicitations?
Do I accompany others on solicitations?
Do I write follow up and thank you letters?
Am I prepared to make solicitations myself?
Do I do what I say I will do?

49. Build Board Capacity and Skill
Talk with people on other boards that have success with fundraising.
Visit the Foundation Center Library (Hurt Building, Main floor, 5 Points, Atlanta) for more other materials and resources (
Use prepared learning resources
Ga. Center for Nonprofits offers short workshops (
BoardSource has several good booklets and educational resources such as “Fearless Fundraising: The Video Workshop” (

50. Recommended Reading
K.S. Kelly, Effective Fund-Raising Management. Erlbaum, 1998.
J.M. Greenfield, Fundraising Fundamentals. Wiley, 1994.
F. Howe, The Board Member’s Guide to Fundraising. Boardsource, 2000.
Other materials on many web sites

51. For Further Information
UGA Institute for Nonprofit Organizations
(706)
Holland, Blackmon and Associates
(706)