Understanding Nonprofit Fundraising
PUAF 689Y, Fall 2014
Tuesdays, 7:00 – 9:30 pm
Classroom: 1101 VMH
Professor:
Susannah Washburn
Susannah.Washburn@gmail.com
202-304-7254
Office Hours: By appointment
Graduate Assistant:
Annie Hankins
Annie.hankins@gmail.com
Course Overview
This course is designed for students who aspire to leadership roles in nonprofit
organizations. Nonprofit leaders worldwide play a critical role in social change, public
policy formulation, and implementation. To be successful, these leaders must develop
and communicate a compelling vision of the future, create management and delivery
structures, and establish predictable revenue streams. We will examine the interplay of
these with a focus on fundraising.
Through reading, lecture, discussion, reflection, research, writing, and working directly
with a nonprofit, this course will introduce students to the fundamentals of fundraising.
We will identify the major types of nonprofit funding models and assess which
fundraising methods are appropriate for each model. We also will explore motivations for
giving; ethical concerns; types of funding sources; types of fundraising mechanisms and
instruments; grant writing and the rise of strategic philanthropy and the new demands it
places on nonprofit leaders -- both to manage their programs and to raise funds.
Student Outcomes
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Understand the current nonprofit landscape
Understand how fundraising is inherently linked with strategic nonprofit
management
Learn the major types of nonprofit funding models and their relevance to
fundraising
Understand why people give and how to tap that motivation to build strong
partnerships
Define, understand, and appreciate different aspects of the fundraising process
Be familiar with key academic theories in fundraising practice
Learn the ethical issues within the fundraising profession
Develop a relationship with a nonprofit, assess its mission, funding model and
current revenue streams, and provide recommendations for additional fundraising
activities
Refine writing and presenting skills
Refine analytic skills
Understand how and when to use data to assess and persuade
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Readings
All readings are available on ELMS: http://www.elms.umd.edu with the exception of the
following:
 Sargeant, A., Shang, J., & Associates (2010). Fundraising principles and
practices. San Francisco: Jossey-Bass.
 Leslie R. Crutchfield, Heather McLeod Grant, Forces for Good; The Six Practices
of High-Impact Nonprofits (San Francisco: Wiley, 2008)
(The two books above are available as e-books at UMD Libraries and can be
accessed online through your UMD account.)
 Two case studies at Harvard Business Publishing. You will have to buy
electronic copies on line at: https://cb.hbsp.harvard.edu/cbmp/access/29803227
Deliverables and Relative Weight
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Assignments are due at class time on the date specified. Assignments are to be
turned in on paper directly to the professor. The assignment is late if it is turned in
electronically on the due date (unless prearranged with the professor).
All assignments must be typed, single-spaced, with one-inch margins, and in 12pt
font. Please use APA style for references and formatting. (You can find these
guidelines in the Publication Manual for the American Psychological Association,
6th edition). If you do not own this book, it can be found in most libraries.
1. Active Class Participation
Each student must complete the assigned readings prior to class. Your participation grade
is dependent on the quality of your discussion and attendance; any absence or lateness
may affect your grade. After each class, I will make note of late arrivals and evaluate
each person’s participation. I recognize that everyone has an “off-day,” this should not
worry you. However, it is your overall participation throughout the semester with which I
am most concerned. Participation takes the form of offering thoughtful comments and
questions, listening attentively, engaging in class activities, and taking leadership in
discussion occasionally—this does not mean monopolizing the conversation.
This course will be conducted in a seminar and discussion-based format; therefore, your
participation and contribution will determine the success of this course and your
experience in it. Most of our class time will be spent in class discussions, small groups, or
working on activities. Thus, each person is expected to participate in large and small
group discussions.
If you have concerns about your class participation, please see me and we can think of
ways to include you more.
Your participation will be evaluated as follows: (a) Attendance; (b) Timeliness c)
Integration and consideration of course readings in comments; (c) Respect for others and
listening and responding to others’ comments
Portion of Grade: 20%
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2. Short Biography
Please describe your interest in nonprofit fundraising, your goals for the course, your
plans for the future, and your work history. This is the one assignment that should be
turned into both the Professor and Graduate Assistant’s emails. Biographies will be
shared with classmates. Due date: September 5
3. Case Analysis 1: Cycle for Survival, Harvard Business Publishing
Writing prompt and directions will be provided in class
Portion of Grade: 10%
Due date: October 7
4. Case Analysis 2: Maitri AIDS Hospice, Harvard Business Publishing
Writing prompt and directions will be provided in class
Portion of Grade: 10%
Due Date: October 21
5. Small group presentation on fundraising
In groups of two you will make a 5-10 minute presentation to the class on a fundraising
issue of interest to you. Essentially, you are creating your own short case study,
presenting the issue to the class and analyzing it. More information will be provided in
class as will group assignments.
Portion of Grade: 10%
Due Date: Rolling (Groups and dates will be assigned in Class 2)
6. Group project
In groups of about two or three, you will select a nonprofit, conduct interviews and
submit the following deliverables.
 Written Summary of Nonprofit Vision, Mission, Funding Model, Fundraising
Activities and Landscape Analysis. Due date: October 7. Portion of Grade: 5%
 In class Presentation of Summary. Due date: October 7&14. Portion of Grade: 5%
 Written Testimonial/Story of Impact. Due date: Oct 28. Portion of Grade: 5%
 In class presentation of Story of Impact. Due date: Oct 28. Portion of Grade: 5%
 Written Analysis of Nonprofit Fundraising Activities and Recommendations for
Future. Due date: November 18. Portion of Grade: 5%
 In class presentation of your work with your chosen nonprofit.
Due dates: December 2 and 9. Portion of Grade: 5%
 Final Paper that brings all of your work together into one memo
Due date: December 9. Portion of Grade: 20%
More information on each deliverable will be provided in class. If you need help
selecting a nonprofit and/or making a connection that will give you access to the
information you need, please speak to me. I know several executive directors of
nonprofits who have already expressed interest in working with you.
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Grading Scale and Criteria
Each written assignment will be graded on the following criteria:
1. Organization and Development of Ideas
2. Writing Quality
3. Soundness of Analysis
4. Use of Class Readings and Discussion
5. Accurate Formatting, Referencing, and Style
Late assignments will automatically lose 5-points for the first week late. Papers later than
one week late are subject to a full letter grade deduction (i.e.; an A paper will receive a
grade of a B.)
Grading Scale
99-100 A+ 94-98 A 90-93 A87-89 B+ 84-86 B 80-83 B76-79 C+ 72-75 C 68-71 C64-67 D+ 60-63 D < 60 F
There are no extra credit opportunities.
Attendance
It is your responsibility to inform me before class if you will not be able to attend, be late,
or will need to leave early. Even when you inform me, missing class (or a portion of
class) can affect your attendance grade.
Absence due to religious holidays or academic conferences
You will not be penalized because of your religious beliefs and observances. Whenever
possible, you will be given reasonable time to make up any academic assignment that is
missed due to a religious obligation or observance. Please inform me of any conflicts
between the course schedule and religious observances or academic conferences as soon
as possible so that appropriate arrangements may be made.
Inclement Weather
Official closures and delays are announced on the university Web site (www.umd.edu)
and on the snow phone line (301-405-SNOW (7669)).
Academic Integrity
All students are expected to abide by the Code of Academic Integrity throughout this
course and all other courses offered at the University of Maryland. Academic dishonesty,
including cheating, plagiarism, and fabrication will not be tolerated and will be reported
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to the University. Additional information on the Code of Academic Integrity is available
on the web at: http://www.shc.umd.edu/code.html.
Special Needs
If you have a documented disability or any other special need and wish to discuss
academic accommodations please contact me as soon as possible. The University is
obligated, whenever possible, to provide appropriate accommodations for students with
disabilities. Students who have questions about their rights or accommodations may
contact
the
Disability
Support
Service
at
301-314-7682
or
http://counseling.umd.edu/DSS/. Disability Support Services is located in Shoemaker
0126.
Course Contingency Plan
Should an emergency arise that closes the University for an extended period of time, I
will be in contact, if possible, with additional instructions. Assignment due dates and
readings may be altered.
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SCHEDULE OF STUDIES
Class Schedule may change due to speaker schedules and class developments
Class 1: Introduction
September 2
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Getting to know each other
Why are you here?
Why is fundraising important?
What are your impressions of fundraising?
Why do people hate it so much?
Why are some people so good at it?
With which nonprofit/issue area would you like to work?
Please turn in your biography to me (by email) by Friday September 5 so that I can read
it before Class 2.
Class 2: Context: Understanding how nonprofit strategy and management drive
fundraising and current trends in philanthropy that affect fundraising
September 9
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Where do nonprofits get their money? How does the source of funding influence
management decisions? How might that affect fundraising strategy?
What are the different ways nonprofits tap different sources of funding? What
does it allow them to do? How does it limit them? What are the different
requirements? What is the right “mix” of funding sources? How does the model
determine the appropriate mix?
What resources other than money do nonprofits need? How do you get them?
What does a Board do? How do they help raise money? What about volunteers?
Why is a clear vision and mission important? How do you communicate these?
How do you use stories and data to tell your story?
What are the current trends in philanthropy and the nonprofit sector that affect
fundraising?
We will discuss project groups and nonprofit selections. Also, you will receive your due
date for deliverable #5 (small group fundraising presentation).
Required Reading:
 Leslie R. Crutchfield, Heather McLeod Grant, Forces for Good; The Six Practices
of High-Impact Nonprofits (San Francisco: Wiley, 2008), pp. 11-25
 Dan Pallota Ted Talk
 Susan Colby, Nan Stone, and Paul Carttar, “Zeroing in on Impact: In an era of
declining resources, nonprofits need to clarify their intended impact,” Stanford
Social Innovation Review, Fall 2004.
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William Landes Foster, Peter Kim, & Barbara Christiansen, “Ten Nonprofit
Funding Models,” The Stanford Social Innovation Review, Spring 2009.
Tempel, Eugene R., Timothy L. Seiler, and Eva E. Aldrich (Eds.), Achieving
Excellence in Fund Raising, 3rd edition. San Francisco: Jossey-Bass, 2011. ISBN
978-0-470-55173-8. Chapters 1-3
“The Accidental Fund Raiser,” The Chronicle of Higher Education, January 9,
2011.
Class 3: Why do people give? Who gives? How important is the tax deduction?
September 16
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Think about a time that you have volunteered or given money, was it fulfilling?
Why or why not?
 What is the psychology of giving? What motivates you to give? What do you
think motivates other people? What moves people? How can you tap into that to
raise resources?
 How does giving break out along income, gender, race, etc.?
 How important is the tax deduction? How does it work?
 How have economic booms and busts effected giving?
 How can you match individual motivations with the giving instrument that makes
the most sense?
We will use part of class time to review your progress on selecting and contacting your
organization.
In Class:
Fundraising presentation #1
Required Reading:
 McCrea, Jennifer, Jeffrey C. Walker, and Karl Weber (2013) The Generosity
Network: New Transformational Tools for Successful Fund-Raising. USA:
Deepak Chopra Books. (Read the Introduction)
 Schervish, Paul G., May A. O’ Herlihy, and John J. Havens, “Charitable Giving:
How Much, by Whom, to What, and How?” published in The Non-Profit Sector:
A Research Handbook, Second Edition, ed. by Woodrow Powell and Richard
Steinberg (Yale Press: 2002).
 Sargeant, A., Shang, J., & Associates (2010). Fundraising principles and
practices. San Francisco: Jossey-Bass.
o “Individual Giving Behavior” (Chapter 4; pp. 61-96)
o “Social Influences on Giving” (Chapter 5; pp. 97-112)
 Rosen, M. J. (2011). Nonprofit essentials: Donor-centered planned gift
marketing. Hoboken, NJ: John Wiley & Sons, Inc. (Identify what motivates
planned gift donors, pp. 59-87).
 Lindahl, W. E. (2010). Principles of fundraising: Theory and practice. Boston,
MA: Jones & Bartlett Publishers. (Theories of fundraising, pp. 85-105).
 John Lippincott, “Give and Take: Is There a Connection Between Philanthropy
and Taxes?” Council for Advancement and Support of Education, September
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2011.
Class 4: Debunking fundraising myths, understanding the obstacles to giving and
understanding the fundraising process
September 23
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What are the obstacles to giving?
What are prevalent fundraising myths? Why are they wrong?
What is the fundraising process?
What are different models for staffing the fundraising function?
You should have your group finalized, made contact with your nonprofit and
received the consent of a senior official to help arrange the interviews.
In Class:
Fundraising presentation #2
Required Reading:
 Greenfield, J. M. (1996). Fund-raising cost effectiveness: A self-assessment
workbook. Hoboken, NJ: John Wiley & Sons, Inc.
o Annual giving solicitation programs, pp. 33-107
o Major gifts from individuals, pp. 179-195
o Planned giving and estate planning, pp. 223-242
 Cannon, C. (2011). An executive’s guide to fundraising operations. Hoboken, NJ:
John Wiley & Sons, Inc.
o Major giving, pp. 104-105
o Stewardship, pp. 88-92
 McCrea et. al (2013). The Generosity Network: New Transformational Tools for
Successful Fund-Raising. USA: Deepak Chopra Books. (Chapter 3, Building the
Band)
Class 5: Ethics
September 30
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What are the industry ethical standards?
What promotes/undermines ethical behavior in general? What do behavioral
economists have to say about ethics?
Is philanthropy “guilt laundering”? Why or why not?
What are some examples of unethical behavior?
What is conflict of interest? How do you anticipate and manage it?
You should be beginning your interviews this week.
In Class:
Fundraising presentation #3
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Required Reading:
 Peter Buffett, “The Charitable Industrial Complex,” New York Times, June 26,
2013.
 Howard Husock, “What Peter Buffett Gets Wrong About Philanthropy,” Forbes,
July 17, 2013. (Associated commentary to above article)
 Sargeant, et. al. “Ethical Fundraising” by Eugene R. Tempel & Sarah K. Nathan
(Chapter 3; pp. 44-60)
 "AFP Code of Ethical Principles and Standards of Professional Practice,”
Association of Fundraising Professionals, 2004.
 “Donor Bill of Rights,” AAFRC, AFP, AHP, CASE, 2013.
 Steve Fishman, “The Dean of Corruption,” New York Magazine, March 4, 2013.
 Lori Aratani, “Johns Hopkins Lawsuit Highlights Questions About Schools’
Obligations to Donors,” The Washington Post, February 20, 2012.
 Debra E. Blum, “Charities Deal with a Stream of Lawsuits from Disenchanted
Donors,” The Chronicle of Philanthropy, April 21, 2013.
 Justin Juozapavicius, “US hospital must pay $1M to Garth Brooks,” Associated
Press, January 24, 2012.
Class 6: Individual Giving, Part I
October 7
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Annual giving
Non-profit events and third-party events
The power of story
We will have an in-depth discussion of the case study in class
In class:
Group project: First group of students will present summaries of nonprofits in
groups
Turn in:
Case Study Analysis #1
Group Project: Summary of Nonprofits
Required Reading:
 Harvard Case Study: Cycle for Survival Case Study
 “Seventeen Minutes to Sustainable Funding,” Benevon: Creating Sustainable
Funding for Nonprofits.
 Sargeant et al. (2010). Fundraising principles and practices. San Francisco:
Jossey-Bass.
o “Direct Response Fundraising” (Chapter 10; pp. 239-275);
o “Fundraising Online: Techniques and Tools” Sargent (Chapter 11; pp.
276-311)
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Class 7: Individual Giving, Part II
October 14
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Major Gifts
Planned Giving: bequests, real estate transfers, and other non-cash assets
Other giving vehicles including donor advised funds
In class:
Group project: Second group of students present summaries of nonprofits
Required Reading:
 Rosen, M. J. (2011). Nonprofit essentials: Donor-centered planned gift
marketing. Hoboken, NJ: John Wiley & Sons, Inc.
o Introduction to donor-centered market, pp. 1-22
o Educate and cultivate planned gift prospects, pp. 89-153).
o Stewardship, pp. 233-251
 Sargeant et al. (2010). Fundraising principles and practices. San Francisco:
Jossey-Bass.
o Major Gift Fundraising (Chapter 13; pp. 351-375)
o Planned Giving” (Chapter 15; pp. 407- 430)
 David Dunlop, “Major Gift Programs” in New Strategies for Educational Fund
Raising, ed. by Michael J. Worth, (Westport, CT: Praeger, 2002).
 “High Net-Worth Philanthropy,” Bank of America, November 2012.
 “The Wired Wealthy: Using the Internet to Connect with Your Middle and Major
Donors,” Convio, Sea Change Strategies, and Edge Research, March 24, 2008.
Class 8: Individual Giving, Part III, Putting it all together
October 21
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The Ask
Pairing the right instrument with the right person
Attracting and Retaining Donors
We will have an in-depth discussion of the Harvard case study in class and a shorter
conversation about the Peter Stone case outlined in The Generosity Network.
In class:
Fundraising presentation #4
Turn in:
Case Analysis #2
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Reading:
 Harvard Case Study: Maitri AIDS Hospice
 Putnam Barber and Bill Levis, “Donor Retention Matters,” Urban Institute,
January 2013.
 McCrea et. al (2013). The Generosity Network: New Transformational Tools for
Successful Fund-Raising. USA: Deepak Chopra Books. (Chapter 6, The All
Important First Meeting, Peter Stone Case Study)
 Sargeant, et. al (2011). “Donor Retention and Development” (Chapter 12; pp.
312-350).
 Cannon, C. (2011). An executive’s guide to fundraising operations. Hoboken, NJ:
John Wiley &Sons, Inc. (Annual and unrestricted giving, pp. 104-107).
Class 9: Grants
October 28
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Foundation (different types)
State and Federal
In class:
Fundraising presentation #5
Group project: First group of students will present testimonials
Turn in:
Group Project: Written testimonials
Required Reading:
 RFPs and Grant Applications provided by professor
 “Corporate Philanthropy: The Age of Integration,” Center on Philanthropy at
Indiana University, May 2007.
 Sargeant et al. (2010). Fundraising principles and practices. San Francisco:
Jossey-Bass.
o “Corporate Giving and Fundraising” by Dwight F. Bulingame & Adrian
Sargeant (Chapter 16; pp. 431-460)
o “Grant Fundraising” (Chapter 17; 461-484)
 Lindahl, W. E. (2010). Principles of fundraising: Theory and practice. Boston,
MA: Jones & Bartlett Publishers. (Corporate and Foundation Fundraising, pp. 4568).
 Greenfield, J. M. (1996). Fund-raising cost effectiveness: A self-assessment
workbook. Hoboken, NJ: John Wiley & Sons, Inc.
o Corporate solicitations, pp. 149-162
o Foundation solicitations, pp. 163-178
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Class 10: Youth and Volunteerism as a Means to Cultivate Future Donors
November 4
In Class:
Fundraising presentation #6
Group Project: Second group of students will present testimonials
Required Reading:
 David Eisner, Robert T. Grimm Jr., Shannon Maynard, and Susannah Washburn,
“The New Volunteer Workforce,” SSIR, Winter 2009.
 Sargeant, et. al. “Managing Fundraising Volunteers” by Walter Wymer & Adrian
Sargeant (Chapter 18; pp. 489-517)
 Magnus, S. A. (2001). Barriers to foundation funding of gay organizations:
Evidence from Massachusetts. Journal of Homosexuality, 42(2), 125-145.
 Brown, M. S., & Kou, X. (2011). Giving differences among the generations. In E.
R. Tempel, T. L. Seiler, & E. E. Aldrich (Eds.), Achieving excellence in
fundraising (3rd ed., pp. 199-210). San Francisco, CA: Jossey-Bass.
 Brudney, J. L. (2010). Designing and managing volunteer programs. In D. O.
Renz (Ed.), The Jossey-Bass handbook of nonprofit leadership and management
(3rd ed., 753-793).
 Dewitt, B. M. (2011). The nonprofit development companion: A workbook for
fundraising success. San Francisco, CA: John Wiley & Sons. (The organization
and use of volunteers, pp. 127-135).
 Musick, M. A. & Wilson, J. (2008). Volunteers. Bloomington, IN: Indiana
University Press.
o What is volunteering, pp. 11-36
o Gender, pp. 171-196
o Race, pp. 197-216
o The life course: The early years, pp. 221-237
o The life course: The later stages, pp. 238-266
Class 11: The changing face of philanthropy and what it means for fundraising
November 11
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Venture Philanthropy
Catalytic Philanthropy
Funder focus on metrics
Millenial Donors
International Giving
Use of social media/internet/high tech (kickstarter, donors choose, crowdfunding
etc.)
Note: Examples of the use of social media and new technologies will be infused
throughout the semester in addition to special emphasis in this class.
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In class:
Fundraising presentations #7, 8, 9
Required Reading:
 Laura Arrillaga-Andreesen (2011). Giving 2.0. Francisco, CA: Jossey-Bass
(Chapter 2, Connecting Drops)
 Julie Dixon & Denise Keyes, “Permanent Disruption of Social Media,” SSIR,
Winter 2013.
 Mark R. Kramer and John Kania, “Catalytic Philanthropy,” Stanford Social
Innovation Review, Fall 2009.
 Kathleen Kelly Janus, “Three more ways to engage millennial donors,” Stanford
Social Innovation Review, August 14, 2014.
 “The 2013 Millennial Impact Report,” Achieve, 2013.
Class 12: November 18 – class cancelled for ARNOVA meeting (If we have cancelled
class prior to this for snow days or other unforeseen events, I reserve the right to
hold class on this date.)
Turn in:
Group project: Written Analysis of nonprofit fundraising activities and
recommendations for future. Since we do not have class you may turn in this paper
electronically.
Class 13: November 25 – Preparing for final paper and presentation
Class 14: December 2 - Presentations
Class 15: December 9 - Presentations and Last Class
Turn in:
Group project: Final paper
No meeting during Final Exam period.
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