Nuts and Bolts of your
Fundraising Program
Presented by: Sarah J. Hayes, CEO
Monroe County Humane Association
Common Misconception!
Development vs. Marketing
Development =
The organized activity of soliciting
donations or grants; fundraising
What does that mean to you and
your organization?
Development encompasses all of
your fundraising activities
including:
Annual Giving Programs
Capital Campaigns
Major Gifts/Special Gifts
Planned Giving
Stewardship
Special Fundraising Events
Marketing =
the process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods,
services, organizations, and events to create and maintain
relationships that will satisfy individual and organizational
objectives
4 P’s of marketing apply to you too!
product, price, placement, promotion
What does that mean to you
and your organization?
Marketing for your organization happens
when you decide how your message is
delivered, the audience to target and
what the message/call to action is.
Example: Targeting your direct mail piece audience, the writing and
designing of the actual mailing, design, placement and message of
advertising for a special event you are holding or service to be provided.
Philanthropic Giving in the U.S.
Total Giving ($ billions)
Sources of Contributions
Individuals
Bequests
Foundations
Corporations
Uses of Contributions
Religion
Education
Human Services
Arts/Culture
Public/Society Benefit
Environment
International Affairs
Gifts to Foundations
Unallocated Giving
2004
2005
$
%
$
187.92
19.80
28.80
12.00
75.6
8.0
11.6
4.8
199.07
17.44
30.00
13.77
$
%
88.30
33.84
19.17
13.99
12.96
7.61
5.34
24.00
21.36
35.5
13.6
7.7
5.6
5.2
3.1
2.1
9.7
8.6
$
%
76.5
6.7
11.5
5.3
%
93.18
35.8
38.56
14.8
25.36
9.7
13.51
5.2
14.03
5.4
8.86
3.4
6.39
2.5
21.70
8.3
16.15
6.2
Giving USA Report 2006
Words of Wisdom
Don’t be afraid of fundraising or let it take
a back seat to your programming
activities!
No funding = No programs and the
death of a non-profit
Find the balance between the quality services you
provide and your ability to maintain them financially.
Take the time to plan for your organizations future well being –
Strategic Planning is a must.
Elements for Successful Fundraising
1 - Case
2 - Need
3 - Goals
4 - Prospects
5 - Leadership/volunteers
(THIS MEANS YOUR BOARD TOO☺)
6 - Public Relations
7 - Time and timing
8 - Staff
9 - Budget
Indiana University Center on Philanthropy
Leadership in Fundraising
Roles and responsibilities of Board should
include ensuring adequate resources for
the organization to fulfill its mission. By
working in partnership with the
CEO/Development staff, if any, to raise
funds from the community.
Donor Pyramid
Planned
Giving
Donor
Capital Campaign Donor
Special/Major Gift Donor
Renewed/Upgraded Donor
First Time Donor
Universe of Suspects/Prospects
Giving over a lifetime…
Planned Gift
Dollars
Capital Gift
Major Gift
Special Gift
Upgraded Annual Gift
Annual Gift
Age
Defining Your Gift Levels and Stewardship
Friends- $350
• May include recognition in newsletter and
subscription
Guardians - $750
Base your
giving levels
and benefits to
your
organizations
giving histories
and abilities to
maintain quality
stewardship of
donors.
• May include invitation to a special event and the
above
Best Friends – $1500
• May include the above and lunch with CEO
Loyal Companions - $2500
• Special recognition like plaque on kennel, etc.
Cultivation and Stewardship
Cultivation:
is a process of promoting or
encouraging interest and/or involvement on the part of a
potential donor or volunteer leader: a process to inform
about an organization and reasons why it deserves
support
Stewardship: the ongoing process of maintaining a
quality relationship with your donors by maintaining and
surpassing donor satisfaction to increase giving and
involvement with the organization.
Cultivation and Stewardship
Building a relationship
with your potential and existing donors
Planned Gift
L - Linkage
Major Gift
I - Involvement
Special Gift
A - Advocacy
Upgraded Donor
Repeat Donor
Donor
Prospects
Suspects- large pool
of potential donors
L - Linkage
A - Ability
I - Interest
Annual Fund Profile
60%
of $
Major Gifts
10% of
Donors
Upgraded Gifts
20% of Donors
Base 70% of Donors
20% of
$
20%
of $
Fundraising Basics – The Annual Fund
The Annual Fund consists of the continuing effort to
seek gift support from your organizations
constituency and from all other potential gift sources
such as corporations, foundations and governments.
• Gifts of any size that can reasonably be expected
from the same donor on an annual basis.
(Tends to be smaller gifts, but doesn’t have to be!)
The Annual Fund – The foundation of your fundraising program
Establish giving
habit
Basis for
Planned Giving
Inform
Annual Fund Objectives
Renew gifts
Stewardship!!!
Develop donor base
Stewarding Life Time Involvement
Essential Basics for the Annual
Fund: Focus on Direct Mail
Least expensive and most common method for
annual fund solicitations.
Mailing Lists and Donor Databases
Direct Mail Lists
Always, always remember to focus on
growing your list of potential donors in
everything you do!
Including:
- Join our mailing list/e-mail list sign-up sheets at
events and at your location
- Names and addresses of adopters/clients
- Collect names and addresses through raffles you may
hold, microchip clinics, etc.
- Ability to collect new prospect information on your
website – e- mail subscription sign-up/on-line giving
Direct Mail Lists – Other Methods
Purchasing mail lists
Top 4 Types of Lists:
• Organizational donor, membership and former
donor lists
• Magazine and newsletter subscriber list
• Mail order buyer lists
• Compiled lists (arranged by ZIP code,
professional directories, voting lists, car
owners, etc.
First two options are the most reliable, last two must be approached
with expert advice and caution for the largest return!
Donor Databases – Maintaining your
Donor Information
Make sure you can track your donors
giving histories, information and
involvement with your organization!
Donor Systems Allow You To:
Produce fundraising reports
Giving Histories/Contact Reports
Prospecting major gifts
Track your mailings and ROI
Segment and target your donors and volunteers
Event tracking
Volunteer Management and more!
Finding a donor software package that will
work for your needs
Conduct an assessment of what you need
your donor system to accomplish for you.
• What are the key functions needed for your
organization?
• How much can you afford?
• Do you need a single or multi-user systems? Web-based?
• Does your software need to be compatible with your
financial systems (Example: QuickBooks, etc.)
Resources: Chronicle on Philanthropy, ask other non-profits what they use
and how they like it. Call companies for demo packages to test different
systems.
Writing the Direct Mail Letter
Tips for a successful letter
1- Grab attention: hook your reader in the first sentence.
This could be your last chance!
2 - State the problem. Tell a story. (If you have a story
about an animal from your own shelter use it with a
picture!)
3 - Pose a solution
4 -Tell how the reader can help or participate - by making a
gift.
5 -Tell the reader the benefits of becoming involved
6 - Ask for a gift - today! And be specific about dollars
7 - Say thank you
8 - Think about adding a P.S. urging action or having strong
emotional appeal.
9 - TRY TO KEEP THE LETTER TO ONE PAGE!
Production of Direct Mail Letters
Direct Mail should have four essential items Outer Envelope (with your bulk mail stamp printed on it)
Letter
Response Device
Reply Envelope
(optional inserts about upcoming event or other info)
Money Saving Tips
1 - Work with a local printer who will most likely give you a price break
2 - Print in two-color or just b&w to keep costs low
3 - Use stock photography from low-cost stock sites or your own images of
animals in your shelter.
4 - Use volunteer centers such as retired volunteer groups to stuff your
mailing for free or low-cost
5- If you can, save staff time by using a mail house to stuff, pre-sort and mail
your mailing for you.
Evaluation of your Direct Mail Efforts
1 - Compare to industry standards - typical pledge or
response rates
2 - Cost per dollar raised - how much money was spent
compared to money raised?
Pledge or response rate - number of gifts received / by the number
of prospects solicited, expressed as a percentage
Example: 800 gifts/ 2500 letters sent = 32% response rate
Average pledge or gift - divide amount raised by the number of gifts
made.
Example: $20,000/800 gifts = $25 Average Gift
Become a fundraising master!
Accurately track your donors and giving histories
Thank your donors in a timely manner
Remember everything you do as an organization can
cultivate a new donor - or make you lose them!
Evaluate the successfulness of your fundraising
activities and adjust accordingly.
Your organization may be small, but you can be
sophisticated in your efforts.
Clearly communicate your successes and needs to the
community and your donor base - They won’t give if
you don’t ask or understand your needs.
Consistently show that your organization is trustworthy,
stable and effective - Don’t be sloppy!
Become a fundraising master! Pt. II
Make sure you create a roadmap for
success by having strategically
measurable goals for your organization,
your fundraising efforts AND evaluation
tools in place.
Tools you can use
• www.constantcontact.com
• Inexpensive e-mail list managementeasily create html e-mails with graphics to
produce your e-newsletter and
communicate with your constituency.
• Allows for easy subscription from your
website, upload of your current lists, open
and bounce reports, e-mail tracking, and
much much more!
Tools You Can Use
• www.vistaprint.com
• Inexpensive on-line digital printing
services
• Offers free products such as business
cards, magnets,etc. on a regular basis.
Tools You Can Use
• www.firstgiving.com
• Online fundraising pages for all year round
or for special event fundraising
www.istockphoto.com or
www.bigstockphoto.com
Stock photography sites - thousands of images
for as low as $1 per photo
THANK YOU!