Fundraising 101
April 16, 2013
Linda Wise McNay, Ph.D.
Types of Recipients of Contributions,
2011 Total = $298.42 billion
2011 Charitable Giving
Total = $298.42 billion
Successful Fundraising/Sustainability
Requires
• Vision and Mission
• Case for Support
• Leadership (Board and Head of School)
– Understand and Implement principles of
effective fundraising
– Participation
– Oversight
• Strategy/Development plan.
4
Fundraising for Independent
Schools is Unique
• Daily interaction
• Strong Annual Fund is important
• Competing interests (annual fund, PTO,
etc.)
• Turnover rates
• Alumni participation
• Parent education.
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Vocabulary
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Annual Fund
Major Gifts
Capital Campaign
Planned Gifts
Special Events
Comprehensive Campaign.
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The philanthropic process is
more about relationships than
money.
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Development Cycle
Research
Stewardship
Identification
Closure
Research
Solicitation
Cultivation
Research
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Annual Giving
• Building block upon which organizations
succeed or fail
• Money for current use
• Provide operating support for on-going
programs
– Unrestricted
– Restricted
– Size isn’t relevant.
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Capital Giving
• Intensive, organized effort
• Secure gifts for specific capital needs or projects
• Within a specific time period (usually over one or
more years)
• Requires study, planning and identification of
major gifts prospects
• Lays groundwork for involving new volunteers,
donors
• Sets stage for high annual giving levels.
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Planned Giving
• Integration of sound personal, financial,
and estate planning concepts with donor’s
plan for lifetime or testamentary giving.
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Solicitation Staircase
Face to Face
Small Group
Phone
Handwritten Letter
Typed Letter
E-Mail
Video
Mass-produced Letter
Newsletter
News Item
Advertisement
12
Board Leadership
• Ensure fiduciary responsibilities
• Act in an ethical manner and expect
ethical behavior
• Avoid conflict of interest
• Keep information confidential
• Serve on one or more committees
• Attend all meetings
• Provide oversight for prevention of fraud.
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Board Leadership
• Annual – this should be one of your top
three giving priorities
• Planned Gift – work toward a deferred gift
such as a bequest, life insurance, trust or
other
• Make a meaningful capital/major gift
• Participate in fundraising activities.
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Board Member’s Fundraising
and Stewardship Duties
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Top 3 personal philanthropic priority
Identify and evaluate prospects
Cultivate and solicit gifts
Host fundraising or stewardship events
Support fundraising programs and events
Offer personal acknowledgements
Provide leadership and actively advocate
Ensure funds are used as designated.
15
Role of Development
Committee
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Monitor all fundraising activities
Plan for special initiatives
Solicit Board peers
Be active in
identification/cultivation/solicitation/
stewardship
• Ensure sufficient resources.
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Fundraising
Myths
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Special events are an easy
way to raise lots of money.
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This was not intended to be a
fundraising board.
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We need a “famous” honorary
campaign chair.
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We don’t need to have any
campaign committee
meetings.
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It’s the staff’s job to raise all of
the money.
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We have staff, we don’t need
a consultant.
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We can’t ask people for a
specific gift amount.
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We’ll get 1000 people to give
$1,000 to make $1,000,000.
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If we can just get publicity for the
campaign, money will pour in.
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We can borrow money to
build and raise it later.
27
We can’t go back to our past
donors, this money will have
to come from new donors.
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Our big gift will be from
someone we don’t know yet.
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Let’s go to Mr. Moneybags, he
could give the whole amount
and not miss it.
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Personal Giving
Findings
80% donate to charity
48% volunteer
45-50 age group gave and volunteered more
$60,000-$90,000 income level gave and
volunteer more
14% had established long-term giving plans.
Why People Give
Because they are asked
In person
By the right person
For the right amount
For the right project
At the right time.
The Model Donor
Major
Annual
Lifetime Gift.
Case
 Create Emotional Connection:
 How will this affect the organization?
 How will it affect the donor?
 How is this an opportunity for the
donor?
Case
 How to Give?
 Methods of payment
 Time period
 Type of gifts accepted
 Tax deductible
 Where should the gifts be sent?
 Contact person.
Case
 Summary:
 Component and cost list
 Benefit to donor
 Ask.
Who is a Major Gift Prospect?
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Connection
Good relationship
Ability to give
Past giving history
Desire for recognition.
How to ID Major Gift Prospects
• Qualify your prospects
• Screening sessions
• Develop process for clearance and
management
• Conduct proper research
– Interest
– Do they care?
– Ability?
Importance of Cultivation
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Increase interest
Build awareness
Establish trust
Reinforce connection to the School.
Cultivation Examples
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Donor dinner
Invitation to lecture/presentation
Stewardship report on past giving
Involvement on committee or board
Meeting with Head of School
Phone call/email
Information mailing
Request for advice.
Features of Major Gift
Solicitations
• Carefully tailored and personalized
strategy
• Potential long cultivation period
• Matchmaking critical
– Staff/volunteer contacts
– Project identification
– Cultivation activities
– Consistency, quality and frequency.
What Occurs on a Major Gift
Call?
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Building relationships
Communicating face-to-face
Information sharing
Common goals and values
Leveraging opportunity
Providing service
Determining needs and interests.
Stewardship of Major Gift
Donors
• Is this important? ASK donor about
recognition
• Know what is available and suitable
• Provide it!
• Enroll in gift club
• Written thank you notes from others
• Personalized recognition lunch or dinner.
Why Is Stewardship Important?
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To ensure “feel good”
Report back to donors
To reinforce the importance of the gift
To facilitate communication
To leverage future gifts
To keep donors engaged.
Essential to Major Gift Success
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Long term investment in process
Consistency and quality of activity
Personalized approach
Continual evaluation and fine tuning
Sensitivity to prospect’s time line
Appropriate use of volunteers.
Integrating with Rest of
Development Office
• Coordinate with entire development effort
• Use of volunteers?
• Define role of Major Gifts Committee.
Integrating with Rest of
Development Office
• Management and accountability of staff
– Define in writing yearly expectations and
quantifiable goals jointly decided between
supervisor and professional
• Dollar benchmark goals
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Qualification calls
Cultivation calls
Solicitations
Stewardship calls
• # Contacts
• # Proposals.
Evaluating Your Major Gift
Program
• How did we do in comparison to our written MG
plan? Number of prospects? Dollars raised?
• Are MG initiatives consistent with strategic plan?
• Was each MG prospect “developed”
successfully according to their level of
awareness, understanding, involvement and
commitment?
• Is the staffing and budget sufficient to support
gift potential?
How Long Does It Take?
“If you want to raise alfalfa, you can get
several crops a year. But if you want to
raise oaks, it will take a little longer.”
--Si Seymour
Questions?
Thank You