End-of-Year Fundraising
As the Fall approaches quickly, it is important to review your Case for Support and donor sell
sheets for the onset of the fundraising season. The upcoming months are often loaded with
application deadlines for Foundation proposals as well as galas, dinners, and performances all
in an effort to maximize end of the year giving for your organization. Take this month to review
your staff and organization’s documents to ensure the fundraising done this season will be as
strong, if not better, than the last
At Cathedral, we break the fundraising targets into three groups: Individuals, Major Donors and
Foundations.
Individual Donors
Individual donors are donors who give below your “major donor” threshold. The last three
months of the calendar year are a perfect time to reach out to this group, as evidenced by the
many annual galas, auctions, or other fundraising events that litter the calendar in the fourth
quarter of the year. These events allow organizations to show off their progress over the past
months as well as say thank you for the donations while raising funds.
Galas and Dinners
The key to any fundraising event is to carefully manage the capital investment necessary to gain
the largest financial return possible. With that said, begin the planning process with a budget.
You will often have to control your volunteers and staff and even your board, who will be
tempted to turn your fundraiser into an event that becomes more trouble than it is worth – or
worse yet, which actually loses money. Don’t be afraid to share your budget with the more
financial savvy members of your board and be sure to stick to it. Not unlike any other project,
cost overruns on a fundraiser will eat away at your profit. And the gala and event season is one
time of the year when non-profit leaders need to think seriously about profit-margins.
Fundraising Letters
The fundraising letter is an important aspect of most non-profit organizations’ fundraising efforts.
The task of assembly is not something that should be taken lightly as this funding effort is often
the last touch between an organization and donors for the calendar year. Provided below are
some guidelines to make sure your ask and letter package are as efficient as possible:
Format: Clear and concise language is key. The language should be powerful and
ignite interest to donors, but in a short, witty manner. Your organization is not the only
one sending out a fundraising letter this time of year, so keep in mind that donors often
skim materials to get the main points. Underlining those key items allows donors to get
the information they are interested in and you the donation you were hoping for.
Personable: Write the letter as if you were speaking with an old friend. Using “I” and
“you” generates a sense of involvement and can provide donors with the feeling that
your organization truly appreciates their commitments.
Involvement: Provide donors with a sense of personal involvement in the organization
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with their donation. A great way to do this may be to include an opportunity to visit the
non-profit or to purchase some materials created by those individuals impacted by
your organization. And make sure your letter gives the donor a sense of
accomplishment. Donors enjoy learning about the impact they have on the community.
Major Donors
Major Donors are also individual donors, but those who give over a certain threshold, usually
falling somewhere between $1,000 and $10,000 depending on the size of your budget. However
you define major donors, they are your most valuable asset. These donors have made
significant contributions to the organization over the past months and it is essential that you not
take them for granted as you prepare for the year-end ask. We have provided some ways below
on how to touch base with your major donors in preparation for the giving season.
Open the lines of communication: A lot of major donors disappear over the summer
and now you need to start planning how to get them plugged back in. Some ideas
include; sending them an email with a quick update on what has been happening with
the organization over the summer, leaving a voicemail telling them you look forward to
reconnecting in September along with some dates for a lunch meeting, or sending a
quarterly newsletter. It never hurts to just say thank you. Send a good old-fashioned
paper and ink thank you letter telling them how much they mean to you.
Provide them with opportunities to participate. It is important to find ways to get your
major donors involved beyond just asking for money. While there are major donors
who don’t want to be bothered and are happy with just writing a check, many major
donors enjoy getting involved and seeing the impact their dollars are making. You may
consider a site visit or interaction with constituents. Asking their honest help with
mundane tasks like setting up tables, or more complicated issues like investing and
financing help them feel like more than just checkbooks.
Give them plenty of information: Most nonprofits raise the majority of their fundraising
revenue in the 4th quarter of the year but a single two pages fundraising letter that
arrives in December is really not enough to inspire major gifts. Begin now sending out
information to all your donors about what you have accomplished so far this year,
include your 4th quarter goals both programmatic and fundraising, and create some
excitement for the upcoming year. When your final fundraising letter arrives, this past
year’s progress and activities won’t be a news flash but a subtle reminder to give and
a review of much that they already should know.
Grant Writing
Cathedral Consulting understands the process of grant writing as a continuous cycle:
Foundation research, initial approach, follow-up, submit full proposal, follow-up, grant received,
grant reporting, and the cycle begins again at research. Organizations can begin to create a
grant writing program that is self sustaining and a steady source of funding when the cycle is
adopted in your fundraising activities.
Foundations generally have two major funding periods; Spring and Fall. The following steps of
the Cathedral fundraising cycle should be utilized for each funding period, but work especially
well in the Fall when foundations are in their final giving cycle:
Foundation Research: Get familiar with databases listing the Foundations that provide
grants to organizations such as yours; searching the database is easy, the only
difficulty is identifying which Foundations are the ideal match to your activities. In using
keyword, mission, and geographic searches, you can zero in on Foundations that fund
specifically what you seek funding for.
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Initial Approach: Each Foundation has specific guidelines regarding your initial contact
with them. It is important to acknowledge the Foundation’s initial approach to avoid
wasting time and resources submitting too much information or not enough if they
prefer to see a full proposal right away.
Follow-Up: This portion of the cycle is the key to success. Foundations receive a
large amount of letters and proposals during their grant making cycle. Taking the time
to follow up with those Foundations that you are most interested draws their attention
to your proposal. Building a relationship with the individual that reviews the proposals
is a big help.
Full-proposal Submission: Hopefully, after the initial approach or follow-up, your
organization will receive a letter from the Foundation to submit a full proposal or to try
again in during the next granting period. Be aware that you will receive many
declinations, but read the letters carefully. Nine out of 10 will leave the door open for
further contact. Keep good records and be persistent. In the fortunate event that you
are asked for a full-proposal, follow the Foundation’s submission guidelines exactly. It
is imperative that the proposal be submitted in the Foundation’s requested format or
you may lose the opportunity to have it reviewed by the decision committee.
Grant Received and Grant Reporting: Upon receiving the grant, it is important to
utilize the funds as directed by the Foundation. Most Foundations will require a report
on the use of their funds. Even if it is not required, best practice dictates to provide one
anyway. In some cases, an Annual Report is sufficient.
The Fall is the best time to begin grant writing, or to renew your focus in this area. The grant
writing cycle can take a large investment of time and patience – especially when beginning for
the first time. As your organization makes progress in repeating the cycle each funding period,
you will begin to receive more requests for full proposals and ideally more grants. The goal of
your grant writing program is to provide a base of support – as much as 10 to 30% of your total
revenue -- to sufficiently diversify your donor base. Without it, you will likely rely too heavily on
your major donors and burn them out.
The onset of the “giving season” can often equate to a last minute effort to raise as much
funding as possible before the end of the calendar year. Planning your fall events and
fundraising letters in August allows your organization to begin ahead of the curve and have
everything in place before the season begins. Advanced planning for the giving season means
your organization can be more effective in cultivating relationships while still receiving the
necessary funding to take your organization into the next calendar year.
Articles for Further Reading
1. Write an Effective Fundraising Letter in 14 Steps. A step by step process in generating
your fundraising letter. http://www.writeexpress.com/effective-fundraising-letter.html
Peter Giersch is COO of Cathedral Consulting Group, LLC and a Managing Director in the
Midwest Office.
For more information, please visit Cathedral Consulting Group LLC online at
www.cathedralconsulting.com or contact us at info@cathedralconsulting.com.
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