Diversifying Your Funding Base

1. Diversifying Your Funding Base Presenter: Kim Klein Klein and Roth Consulting Klein and Roth Consulting helps organizations build strong fundraising programs that are mission-driven. We provide practical, hands-on advice on how to build a broad base of individual donors, grounded in social justice values. Kim Klein is the author of Fundraising for Social Change and Reliable Fundraising in Unreliable Times. She has taught fundraising in all 50 states and 21 other countries. Sponsored by: OCCUR www.kleinandroth.com

2. Goals for our time together You will expand your knowledge about how to: • Create a clear compelling message • Build a list of people who would give to your organization • Feel comfortable asking for money • Motivate board and volunteers to raise $ • Find ways to help your program raise money which work for you

3. 2013 contributions: $335.17 billionSource: Giving USA

4. Where the Money Went:

5. The People Who Give: • Are most people: 70% of adults • Give to 5-10 organizations each year • Equal numbers of men and women • 60% of money given comes from families with incomes of $90,000 and under • # 1 reason people give: someone asked them www.kleinandroth.com

6. Move into an “EXCHANGE” Frame Go from this: “Please, please, please…” To this: “I think you would be interested….” www.kleinandroth.com

7. Do you have a clear message? • What does your org most believe? • What does your org do to act on its beliefs? • What is your track record? • How much money do you spend? • Where do you get your money? • Who is involved in your organization? www.kleinandroth.com

8. If I found out about your organization from: --your website, --your e-newsletter --a friend --a special event --dropping by your office Would I know that you raise money from people like me? www.kleinandroth.com

9. The Purpose of Fundraising is to Build Relationships Invite a legacy gift (bequest): Invite the donor to give thoughtfully:) Invite the donor to give over and over Invitethe first gift www.kleinandroth.com

10. Your Relationship Building Efforts We invite people to: • Make their first gift by… • Make their second, third, fourth gift by… • Increase the size of their giving by… • Ask them to consider leaving us a gift in their will by… www.kleinandroth.com

11. Comparing Strategies: TIME IN Strategy In person asking Personal Phone Call Personal Letter Phone-a-Thon Direct Mail (Acquisition) On-line Special Events MONEY OUT Response Rate 50% 25% 10-15% 5% .5-1% Varies Varies

12. Financial Health Requires Diversity Sources/Strategies Online Religious Major Donors In-Kind House parties Fees/Products Foundations Board and Volunteers

13. Every Board Member Should: Make his or her own gift • Gift should be significant to that person Participate in fundraising in SOME WAY • People have different talents, desires, time availability, connections and social skills www.kleinandroth.com

14. Every Board Member Should be Able To: • State the vision • Name three accomplishments • Describe three goals for the current year • Know the total budget • Talk about how the organization raises $. www.kleinandroth.com

15. Every Board Member Has A Plan I, Betty Lou Board Member, will: • Give $500 before November 1. • Help raise $1000 by hosting a house party at my house in May. • GOAL: 20 new donors @ $50-100 each • Work on annual general meeting. I prefer not to: Participate in the phone-a-thon I will not: Come to the auction—sick of those! www.kleinandroth.com

16. Build a Team of Askers Ideally this includes the board, but does not need to only be board members. www.kleinandroth.com

17. Looking Beyond the Board: Who else can you invite to join your fundraising team? 1. 2. 3. 4. www.grassrootsfundraising.org www.kleinandroth.com

18. Know What You Need to Raise www.kleinandroth.com

19. One Thing Will Never Change: Personal face to face asking Nothing takes the place of face to face asking www.grassrootsfundraising.org

20. Four Tips For Successful Asking 1. Success is asking Fundraising is a volume business Tip: Create a visual which shows # of asks completed www.kleinandroth.com

21. Four Tips, Cont. 2. Be OK with NO People say no. “No” has nothing to do with you. People say no because: • They have too much else on their minds • They have given already to someone else • They don’t have the money • They need to think about it

22. Things can sound like no… BUT MEAN NOT NOW OR MAYBE: “I’ll get back to you.” “I have to ask my partner/spouse.” “I haven’t had time to look at your information” “Send me something in the mail” “I’m giving to so many other things right now.” “Yes, I’ll send something later”

23. Four Tips, cont. 3. Believe in your cause

24. Four Tips, cont. 4. Don’t ask everyone. You don’t need to ask people who: • Are just going to ask you back • Owe you a favor • You don’t like • Really don’t want to

25. Identify Prospects Ability: Gives away money Belief: Cares about this cause or something similar Contact: You or someone you know and trust knows the prospect. www.kleinandroth.com

26. Set a goal for yourself Example: $2,000 Need: 10 at $200 Or 1 @ $500 2 @ 250 5 @ 100 10@ 50 Need 3X as many prospects as gifts. www.kleinandroth.com

27. Break it down into small bites: Create a chart of possible prospects: NameRelationshipGives $Cares?Ask for: 1. 2. 3. 4. 5. www.kleinandroth.com

28. Make a list, work the list Create a chart of possible prospects: NameRelationshipGives $Cares?Ask for: • Max ex-husband never hardly time of day • Mary cousin Yes yes $150 • Jose friend Yes lobbyist houseparty • Susan colleague ?? Sort of Bake sale • Georgia book club Yes probably not ---- • Milagros neighbor Yes definitely $500 www.kleinandroth.com

29. Approach Prospects Personally Use a combination of letter/e-mail, phone call and face to face to face meeting www.kleinandroth.com

30. Preparing for the Phone Call Have ready: • Opening sentence • Message for VM • Most exciting thing about the project • Where are you toward the goal? • How much do you want? www.kleinandroth.com

31. Don’t do all the talking… Ask different types of questions: How did you first hear about us ? How long have you lived here? How is that donut shop that just opened? What is most compelling about this issue to you?

32. Tell Your Own Story I got involved in this because…. The most surprising thing to me about this issue is…. I loved meeting people who have been giving for a long time because…. I have a dog, too….

33. The CLOSE

34. www.kleinandroth.com

35. Comes Back To Relationships Problem: Donors’ biggest complaint: “I am treated like an ATM.” Solution: Be in touch when you don’t want money. Appreciate what the donor has done already www.kleinandroth.com

36. Focus on what is important www.kleinandroth.com

37. Helpful Resources from Kim Klein Magazine and e-newsletter Grassroots Fundraising Journal www.grassrootsfundraising.org Books by Kim Klein Reliable Fundraising in Unreliable Times Fundraising for Social Change Other recommended books: Working Across Generations by Robby Rodriquez, Frances Kunreuther and Helen Kim Accidental Fundraiser by Stephanie Roth and Mimi Ho Order from www.josseybass.com or your local bookstore www.kleinandroth.com