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Fundraising 101

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September 10, 2013
Instructions for Warm-Up Exercise:
Take a few minutes to look at the “I Give Because” page on
the wall.
Using the stickers provided, mark the statements that apply
to you and how you make decisions in your own nonprofit
giving. You may mark as many statements as you like.
If there is something that you would like to add (another
reason why you give), write it on a post-it and add it to the
“I also give because…” box at the bottom. If someone has
added a statement in this section that you feel also applies
to you, you may add a sticker to that post-it.
Agenda:
Introductions
Working Agreements & Goals
Part I: Laying the Groundwork
Fundraising overview
What you need before you begin fundraising
The board’s role in fundraising
Creating a fundraising plan
Part II: How to Fundraise
Creating an individual donor program
Applying for grants
Generating corporate & business donations
Special Events
Fundraising Trends
Questions & feedback
Introductions
1 MINUTE with your partner:
Name
Organization
Role—Development Director, ED, etc.
What’s the word or image that comes to mind when you think of “Fundraising”?
4 MINUTES with your team:
Name
Organization
Role—same as above, etc.
What’s the word or image that comes to mind when you think of “Fundraising”?
POPCORN
Goals for today's workshop:
Develop understanding about effective
methods of raising money for non-profits
Share knowledge and real-life experiences that
others can use to increase their fundraising
success
Lay the groundwork for success- a clear
fundraising plan- and provide the practical tools
to make the plan a reality
Working Agreements
Recognize we are all at different levels, with varying
experiences. Celebrate the diversity and the learning.
Cell phones on stun.
One conversation at a time- no sidebars.
Vegas Rule.
Parking Lot.
PART I:
Laying the Groundwork
What is
fundraising?
fundraising- (noun) the raising of assets and
resources from various sources for the
support of an organization or a specific
project.
- The Association of Fundraising Professionals Fundraising
Dictionary Online
What are some things you
need to have in place before
you start fundraising?
Things to have in place before you start:
Organizational budget
Non-profit tax status
A donor tracking database
A system to quickly acknowledge donations and donors
Individuals (staff, board, volunteers) who are trained in how to
ask for money
Knowledge of available funding sources
Basic materials about the organization
Firm knowledge of who you are
Clarity and agreement about how the funds will be used
Source: GivingUSA 2013 Highlights
(www.givingusareports.org/2013)
The Board’s
Role in
Fundraising
One of the board’s primary responsibilities is
ensuring that the organization has adequate
funding to fulfill its mission.
Board members do this by:




…reviewing financial documents and budgets.
…making personal financial donations.
…helping to make connections with prospective donors.
…asking for donations.
Quick gut check:
How are your board members
doing in fulfilling their fundraising
responsibilities?
Three steps to board
fundraising success:
 Make it clear
 Make it easy
 Make it fun
The Fund Development Committee
The Fund Development Committee oversees
fundraising strategy and the board’s fundraising
activities by…
 …working with staff to establish a strategic
fundraising plan.
 …engaging in fundraising activities.
 …taking the lead in certain fundraising activities.
 …being responsible for other board members’
fundraising engagement.
What does this all mean?
Fundraising is a combined effort
between staff (primarily the
Executive Director and
Development director, if applicable)
and the members of the board and
development committee.
Think to yourself:
What is one thing you can do in
the next 48 hours to more
effectively engage the
members of your board in
fundraising?
Creating a
Fundraising
Plan
What is a
fundraising plan?
Step One:
Assess your strengths
and weaknesses
Group Exercise:
Assess your strengths and weaknesses
Board and board giving
Staff
Members, donors & prospects
Grants
Corporate & business donations
Fundraising events
Earned income
Step Two:
Review your current
budget and your recent
fundraising numbers
FY 2011
FY 2012
FY 2013
FY 2014
(projected)
Major Donors ($1,000+)
$2,500 (2 donors)
$4,750 (4 donors)
$12,300 (8 donors)
$30,000 (20 donors)
Mid-level donors ($250-$999)
$2,000 (3 donors)
$3,600 (5 donors)
$5,800 (15 donors)
$20,000 (35 donors)
Low-level donors (<$249)
$1,500 (8 donors)
$3,000 (14 donors)
$4,900 (26 donors)
$7,500 (50 donors)
TOTAL INDIVIDUAL DONORS
$6,000 (13 donors)
$11,350 (23 donors)
$23,000 (41 donors)
$57,500
Greater New Orleans Foundation
$10,000
$0
$17,000
$20,000
Baptist Community Ministries
$5,000
$5,000
$0
$0
Foundation for Louisiana
$0
$15,000
$50,000
$35,000
TOTAL GRANTS
$15,000
$20,000
$67,000
$55,000
Entergy
$2,500
$1,500
$3,500
$0
Home Depot
$10,000
$10,000
$15,000
$15,000
TOTAL CORPORATE & BUSINESS
$12,500
$11,500
$18,500
$15,000
Annual Dinner (Net)
$6,000
$7,500
$12,000
$15,000
Wine & Cheese Party (Net)
$250
$0
$350
$500
TOTAL EVENTS
$6,250
$7,500
$12,350
$15,500
Tuition Fees
$4,600
$6,750
$5,800
$7,000
TOTAL EARNED INCOME
$4,600
$6,750
$5,800
$7,000
TOTAL INCOME
$44,350
$57,100
$126,650
$150,000
Step Three:
Set Goals
GOAL: $165,000
DEADLINE: July 31, 2013 (end of FY 2013)
Donor Goals:
• Secure 25 gifts of $1,000 or more
• Increase donor retention rate to 70%
• Get at least three prospect names from each board member
• Raise $67,500 total
Grant Goals:
• Apply for five grants; receive at least two grants
• Contact each foundation at least four times during grant period
• Raise $55,000 total
Corporate Giving Goals:
• Identify five potential corporate sponsors with which a board or staff member has
a personal connection
• Ask for four donations
• Raise $15,000 total
Event Goals:
• Secure sponsors that cover 100% of Annual Dinner event costs
• Net $20,500
Earned Income Goals:
• Have 50% returning students and 25% “bring-a-friend”/ referral students
• Raise $7,000 total
Step Four:
Create your
fundraising calendar
JANUARY 2013
Holidays & Fixed Dates
New Year's Day- January 1
Twelfth Night- January 6
MLK Day- January 21
Fundraising Dates & Deadlines
Annual Dinner Planning Kickoff MeetingJanuary 15 (MARY & JOE)
Smith Family Foundation Grant dueJanuary 25 (STEVEN)
FEBRUARY 2013
Holidays & Fixed Dates
Lundi Gras- February 11
Mardi Gras- February 12
Fundraising Dates & Deadlines
Annual Dinner Monthly Planning MeetingFebruary 28 (MARY & JOE)
MARCH 2013
Holidays & Fixed Dates
St. Patrick's Day- March 17
Staff Retreat- March 29-31
Fundraising Dates & Deadlines
Annual Dinner Monthly Planning MeetingMarch 21 (MARY & JOE)
APRIL 2013
Holidays & Fixed Dates
Volunteer Appreciation Luncheon- April 6
French Quarter Fest- April 12-14
Jazz Fest- April 26-28
Fundraising Dates & Deadlines
Final Annual Dinner Planning Meeting- April
16 (MARY & JOE)
Annual Dinner- April 20 (MARY & JOE)
MAY 2013
Holidays & Fixed Dates
Jazz Fest- May 2-5
Mother's Day- May 12
Memorial Day- May 27
Fundraising Dates & Deadlines
Cultivation visits with Baton Rouge-area
donors (MARY)
JUNE 2013
Holidays & Fixed Dates
Father's Day- June 16
Fundraising Dates & Deadlines
Jones Family Foundation Grant DeadlineJune 7 (STEVEN)
Send mid-year letter- June 14 (MARY)
JULY 2013
Holidays & Fixed Dates
Independence Day- July 4
Mid-Year Program Strategy MeetingJuly 8
Fundraising Dates & Deadlines
GeneriCorp corporate funding proposal
due- July 16 (STEVEN)
AUGUST 2013
Holidays & Fixed Dates
School starts
Fundraising Dates & Deadlines
Cultivation visits with New Orleans-area
donors (MARY)
SEPTEMBER 2013
Holidays & Fixed Dates
Labor Day- September 2
Rosh Hashanah- September 4-6
Fundraising Dates & Deadlines
Community Foundation Grant dueSeptember 30 (STEVEN)
OCTOBER 2013
Holidays & Fixed Dates
Columbus Day- October 14
Halloween- October 31
Fundraising Dates & Deadlines
Launch Annual Board Campaign- October
18 (MARY)
NOVEMBER 2013
Holidays & Fixed Dates
Veteran's Day- November 11
Hanukkah begins- November 27
Thanksgiving- November 28
Fundraising Dates & Deadlines
Mid-Campaign Meeting- November 15
(MARY)
DECEMBER 2013
Holidays & Fixed Dates
Hanukkah ends- December 5
Christmas- December 24-25
New Year's Eve- December 31
Fundraising Dates & Deadlines
Last day of campaign- December 20
(MARY)
Send year-end letter- December 22
(MARY)
Send year-end email- December 31
(MARY)
Think quietly:
how are you doing in relation to
those four steps?
Grab a post-it & make a note:
of the fundraising planning tools
just shared, what one thing might
you try out to upgrade your
planning?
PART II:
How to Fundraise
Creating an
Individual Donor
Program
The Donor Pyramid
Major
Donors
Mid- Level Donors
Small Donors
Why do people
give?
What makes a
person give to a
specific organization?
A person may give money for
many reasons.
A person gives money to a
specific organization because of:
Ability
Belief
Contact
To find donors, look for people who
feel they have the ability to give
and who believe in your
organization.
Then, ASK!
Where can you
find these
potential donors?
Find donors...
...by asking board members and
volunteers to refer friends and family.
...at your events.
...at partnering organizations.
...on your mailing and email lists.
...among your existing donors.
Short exercise:
List a few of your potential
individual donors and who
from your organization
could approach them.
Thank before you bank!
Within 72 hours, make a
personal thank you call or send a
thank you note.
How do you keep track of
information about your
donors and donations?
What information will your
organization need to know
for the future?
Applying
for Grants
Where do I find my grant?
Online research (The Foundation
Center, Google)
Community & foundation listservs
Other organizations doing similar work
Listservs With Grant
Announcements
Grantstation Insider (Free with LANO membership)
Unified Nonprofits of Greater New Orleans (unifiednonprofits.org)
Congressman Cedric Richmond's government grants [email protected]
Larger foundations (i.e. Greater New Orleans Foundation,
Foundation for Louisiana, New Orleans Jazz & Heritage Festival
Foundation, Louisiana Cultural Economy Foundation, etc.)
The Grantsmanship Center (tgci.com)
Neighborhoods Partnership Network (npnnola.com)
Common documents required
for grants
Your mission statement/ program overview/
Case for Support
Your current budget
List of board members and their biographies
List of staff members and their biographies
Copy of IRS determination letter & 990 form
Audited financial statement
Consider…
The funder's priorities
The funder's organizational requirements
The funder's geographic focus
The size of the grant
Other organizations the funder has supported
The funding timeline
Whether you have the capacity to write the proposal
Whether you have the capacity to follow the funding
requirements
Where do I find this
information?
The Foundation Center
GuideStar.org
990 tax forms
Google/ Funder's website
When in doubt, call the
foundation to ask!
YES:
Grant will cover operating expenses
Grant can support existing activities
Grant can expand activities in a way that is
productive and helps advance your mission
NO:
Grant leads to “mission creep” or creates new
work that distracts from your mission and
priorities
Read the directions
Length, format, font, number of
copies, required attachments,
things you should include, things
you should NOT include…
Five Rules for Writing Fundable
Grant Proposals:
1- Keep it clear and simple
2- Use (credible) data
3- Use real-life stories
4- Be specific
5- Use language that the person
reviewing the grant will understand
Creating your project budget
Make a list of everything you will need to spend money on for
this project
Use real numbers to calculate how much each item will cost
EXPENSE ITEM
COST
Part time teacher (12 hrs/ week @ $16/ hr x 48 weeks)
$9,216
Paint, paintbrushes & modeling clay for 48 students ($38/
student/ semester x 3 semesters)
$5,472
Course description photocopies (350 color copies @ $.89/
copy)
$312
TOTAL
$15,000
Consider overhead and
administrative costs
Supervising staff and administrative staff
who will play a role in the project
Office rent, utilities and insurance
Legal, bookkeeping and payroll
expenses
Budget Narrative/ Budget
Justification
The narrative serves two purposes:
• It explains how the costs were
estimated.
• It justifies the need for the cost.
The importance of editing
Make sure everything matches
Use “the brother-in-law test”
Have someone else review the directions and make
sure you followed them
Have the person/ people responsible for doing the
work review your draft
Review a full copy, with all attachments, arranged
exactly the way the foundation will see it
When you your proposal is accepted
Thank the funder
Confirm when you will receive the check, what
documentation you will need to sign and how
they prefer to hear from you
Start planning for after the grant period
When your proposal is declined
Thank the funder
Ask for feedback
Ask if you can apply in the next grant cycle
Ask if you can stay in touch and, if so, how
Generating
Corporate & Business
Donations
Potential business donors:
Businesses that have a stake in your work
Businesses that would want to advertise to
your audience
Your vendors (bank, realtor, office supplies
company, etc.)
Employers of your board members or of
people your board members know
Businesses in your neighborhood
In-Kind vs. Monetary
Marketing vs. Philanthropy
Letter of Introduction:
Who you are
Your connection to the company
What you are asking for
How the company will be recognized
Your contact information and follow-up plan
Ways to recognize corporate donors:
Name something after them
Hang a plaque with their name and logo
List them in your annual report
List them in your event program
Give them a quote in your press release
Mention their name when making a speech
Put their logo on your website or promotional materials
…and don’t forget to ask how they’d like to be recognized!
Planning Special
Events
The Harsh Reality:
Special events are an
inefficient way to raise
money.
So why do people do them?
 To attract new donors.
 To engage current or past donors.
 To have fun.
 To reinforce your mission.
 To generate publicity.
 If done correctly, to raise funds.
Generating funds
through special
events
Event Sponsors
Remember those ideas about
finding your corporate donors?
Tickets
Factor in the per-person cost
Also factor in the financial
capability of your audience
Auctions, Raffles and
Ad Books
Ask people in your network to
contribute
Research who has contributed to
other events
Think of customer bases that overlap
with your likely guests
The importance
of your event
team
A strong event team:
• …has a clear plan and group buy-in.
• …has a strong leader.
• …has enough members for each
person to take on the workload they
would like.
• …has a range of talents and interests.
• …can get the word out to potential
sponsors and attendees.
Planning and
Follow-Through
Creating a budget and task list
• Involve the whole team
• Make sure everyone knows
• Update regularly
Frequent communication among
the team
• Make it regular
• Make adjustments as necessary
• Celebrate success
And remember…
The event is the beginning,
not the end.
• Follow up with guests
• Follow up with sponsors and
other donors
• Take notes for next time
• Set up your team for future
engagement
Fundraising
Trends
Cause-Related Marketing
Marketing in which a for-profit organization,
by using the name of a not-for-profit
organization, promotes its product and in
return provides financial support to the
organization according to a predetermined
formula based on sales and purchases.
- The Association of Fundraising Professionals Fundraising
Dictionary Online
Establishing a cause-marketing
revenue stream:
•
Identify a corporate supporter whose target
customer base relates to your nonprofit
•
Be prepared to explain how the partnership
would benefit them
•
Work with an attorney and an accountant
Earned Income
Money received by a person or
organization for product sales or service
rendered.
- The Association of Fundraising Professionals Fundraising
Dictionary Online
“According to the Center on
Nonprofits and Philanthropy,
private-sourced feed for goods and
services made up more than 45
percent of total nonprofit sector
revenue in 2010.”
Richard Tait, “The Importance of Earned Income in Your Funding Model,”
The Stanford Social Innovation Review, Nov. 7, 2011
Establishing an earned income
revenue stream:
•
Identify what product or service you can
reasonably provide.
•
Confirm that there is a demand for that
product or service.
•
Work with an accountant.
Finding an idea for earned income
New products
for new
customers
Find new customers for existing
products
Develop new products for existing customers
Improve profit from current earned income activities
Source: Louisiana Association of Nonprofit Organizations
“Fund Development: Diversifying Your Portfolio:
A Framework for Sustainability” (2012)
Social Media Fundraising
Crowdfunding
Twitter and Facebook
Multi-Channel Fundraising
Examples of nonprofit
crowdfunding platforms:
Crowdrise
FirstGiving
Facebook Causes
Twitter & Facebook
The fastest growing demographic on Twitter is the 55–64 year age
bracket.
This demographic has grown 79% since 2012.
The 45–54 year age bracket is the fastest growing demographic on
both Facebook and Google+.
25% of smartphone owners ages 18–44 say they can’t recall the last
time their smartphone wasn’t next to them
Belle Beth Cooper, “10 Surprising Social Media Statistics That Might Make You
Rethink Your Social Strategy,” Buffer, July 16, 2013
When and How Often??
Facebook: No more than 3x/ day
Twitter: At least 1x/ day
Mornings: 8:00-9:00 a.m.
Lunch: 12:00-1:00 p.m.
End of Day: 4:30-6:00 p.m.
Nights: 9:30-11:00 p.m.
Source: “Fundraising With Social Media,”
Presented by Social Media for Nonprofits, Freer Sackler Galleries and the Razoo Foundation
Greater New Orleans Foundation’s Organizational Effectiveness program, 2013
Multi-Channel Fundraising
A donor is more likely to give when he or she
has been asked multiple times through multiple
methods
Different people respond better to different
types of asks
Coordination and list management are key
Fundraising 101:
Some Closing Thoughts
Know where you are.
Create a team.
Create a plan.
Work the plan.
Don’t forget the data.
Recommended Fundraising
& Non-Profit Resources:
Greater New Orleans Foundation's
“Needs Scan Report” & Primers (gnof.org)
Kim Klein's Fundraising for Social Change
Giving USA (www.givingusareports.org)
Next Steps
Revisit Parking Lot
Evaluation Questionnaire
One Thing I Will Commit to Doing
One Word that Best Reflects My
Experience Today
Greater New Orleans Foundation ~ 1055 St Charles Ave, Suite 100
New Orleans, LA 70130 ~ (504) 598-4663 ~ gnof.org
The Funding Seed ~ P.O. Box 52154 ~ New Orleans, LA 70152
(504) 307-7220 ~ thefundingseed.com
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