Donor Development and Fundraising Dr. Jacob Gordon Kansas University May 22, 2006 1 Definition of Key Terms Fundraising: The art of generating funds through individuals and/or the philanthropic community for specific purpose/project Relationship Fundraising: Strategic activities that are based on establishing relationships with potential givers/donors – individuals and/or foundations Leadership: The process of influencing others in making decisions, setting and achieving goals and concurrently, it is the process of keeping the organization together 2 What Drives Philanthropy? Three Values – Generosity: The spirit of giving – Experimentation: Desire to fund creative initiatives – Freedom: Support for the American Dream 3 Why Donor Development and Fundraising? Societal Changes (Demographic, Advancement in Science and Technology, Globalization) Challenges (Diminishing federal discretionary funds, natural disaster, terrorist threat, social, economic, and health needs) Organizational Capacity-Building Sustainability of Ongoing Programs/Activities 4 Strategies for Donor Development and Fundraising Organizational Readiness – Governance and Leadership – Needs Assessment 5 Organizational Readiness Continued… – Business Plan History and Current Position of the Organization Market Research Competitive Business Strategy Operations Forecasting Results Business Controls Writing Up Your Business Plan 6 Organizational Readiness Continued… – Implementation – Products (Results) 7 Strategies Continued… Tri-Sector Fund Development Approach – Public: Government Agencies – Business Sector – Private: Philanthropy 8 Tri-Sector Fund Development Approach Public: Government Agencies 9 Tri-Sector Fund Development Approach Private: Individual Donors and Philanthropy 10 Tri-Sector Fund Development Approach Business: Corporate and Small Business 11 Tool Box for Fund Development Donor Database Multiple and Culturally Competent Channels of Communication Foundation Database Federal Register Sound Business Practice 12 Tips (Action Points) and Resources Get your house in order before embarking on fundraising Don’t feel intimidated about asking for donations for your cause Develop donor database Practice relationship fundraising as a total philosophy Be aware of all the research resources around and available to you 13 Tips Continued … Be clear and precise about the purpose of your fundraising Use members of your governance and appropriate staff as part of your marketing strategy Practice sound business policies, including fiscal affairs, record keeping, and high ethical standards Celebrate your success 14 Resources in Fundraising Resources Include: – – – – – – – – University Schools of Business Books and Monographs Professional Journals Foundation Directories Software Materials Conferences and Reports Websites Fund Development Consultants 15 Resources in Fundraising Examples: – Burnett, Ken. (2002) Relationship Fundraising. San Francisco: Jossey-Bass – Covey, Stephen R. (1999) The 7 Habits of Highly Effective People. New York: Free Press – Hughs, Arthur M. (2006) Strategic Database Marketing. New York: McGraw Hill – Johnson, M. (1998) The Fundraiser’s Guide to the Internet. New York: Wiley – Raymond, Susan (2004) The Future of Philanthropy: Economics, Ethics and Management. New Jersey: John, Wiley & Sons, Inc. – Salamon, Lester (1999) America’s Nonprofit Sector. New York: Foundation Center. – Warwick, M. (2001) Ten Steps to Fundraising Success: Choosing the Right Strategy for Organization. San Francisco: Jossey-Bass. 16 Indicators for Success Organizational Readiness Effective Fundraising Strategies Multiple Channels of Communication Vision and Mission Statements Organizational Capacity Evaluation 17 Questions & Answers You may submit questions pertaining to today’s web cast until 5:00pm EDT, Tuesday May 23, 2006, to the following address: cbaeta@youthdevelopment.org Answers will be posted at www.paltech.com/web/cbaewebcast as soon as they are available. 18