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Fundraising: A Love Story. How to Build Profitable relationships. Presented By: Francesca Rattray July 13, 2012. Overview. Giving USA Report Success – What Successful Nonprofits Have Done During Downturn Internal Organizational Audit Research Elements of Successful Fundraising

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Fundraising a love story

Fundraising: A Love Story

How to Build Profitable relationships

Presented By:

Francesca Rattray

July 13, 2012


  • Giving USA Report

  • Success – What Successful Nonprofits Have Done During Downturn

  • Internal Organizational Audit

  • Research

  • Elements of Successful Fundraising

  • Internal Donor Audit

  • Cultivation

  • Engaging the board

  • Grantwriting – Handshake At the End of the Deal

Total giving 2011 up by 4
Total Giving 2011 – Up by 4%


$14.55 b











Recipients big news giving to religion down
Recipients – Big News: Giving to Religion Down




Arts, culture,

and humanities










International affairs





$7.81, 3%













To Individuals


Highlights giving
Highlights - Giving

  • Total estimated charitable giving in the United States increased 4.0 % percent in 2011 from 2010

  • Giving by individuals rose an estimated 3.9 percent in 2011 (an increase of 0.8 percent adjusted for inflation) to $217.79 billion in contributions.

  • Giving by bequest increased an estimated 12.2 percent (an 8.8 percent

  • increase adjusted for inflation) to $24.41 billion in 2011. The share of

  • giving by bequest from itemizing estates was 85 percent of the total.

  • Giving by foundations increased 1.8 percent to an estimated $41.67 billion

  • Giving by corporations 0.1% decline, essentially flat





Highlights recipients
Highlights - Recipients

  • Giving to religion decreased an estimated 1.7 percent from 2010, totaling $95.88 billion in 2011.

  • Giving to arts, culture, and humanities is estimated to have increased 4.1 percent in 2011 from 2010, with $13.12 billion in total contributions.

  • Giving to education is estimated to have increased 4.0 percent between

  • 2010 and 2011 to $38.87 billion in contributions.

  • Giving to foundations is estimated to have declined by 6.1 percent in

  • 2011 to $25.83 billion in contributions.

  • Giving to human services rose an estimated 2.5 percent in 2011 compared

  • with 2010, totaling $35.39 billion.






Interpreting the data what does this mean for you
Interpreting the Data: What Does This Mean for You?

  • Individuals – New Generation – Time, talent and investment for social change

    • Volunteer programs – Invest in a good program; American volunteer hours were worth $173 billion to nonprofit organizations in 2010, according to the Corporation for National and Community Service

    • Segment by demographics/ethnicity – Women, African-American, Hispanic, Asian, Youth

  • Bequests – Untapped but increasing. Analyzing the motivations for bequest giving, researchers at Indiana University, Adrian Sargeant and Jen Shang, found that cultivating the feeling of identification donors have with a charitable organization is an important component of successful planned giving programs

    • Work in partnership with financial planners/advisors

  • Interpreting the data
    Interpreting the DATA

    • Foundations – Largest number but not dollar amount to human services; largest dollar amount to education

  • Corporate Giving – Has remained at around 4-6% of the pie for 10 years and is projected to remain flat. However “Making the Business Case for Corporate Philanthropy,” released in August 2011, asserts that corporate giving programs must go beyond simply “doing good.” To ensure the effectiveness of corporate giving programs, executives should apply the same prudence to corporate giving practices that are applied to other business activities.

  • Economic downtown can growth
    Economic Downtown Can = Growth

    • Accelerate in a downturn – City Year, Teach for America – Ambitious Goals, tight strategic plan

    • Stay close to your donors – Don’t say “we need more” ask “how is the economy affecting you and what can we do together?”

    • Opportunity into crisis – State cuts in education, lack of a social safety net, oil spill, tsunami, hurricane etc.

    • Adapt – Diversify, re-tool, alternative strategies

      • Leslie Crutchfield, Heather McLeod Grand, Seizing a Crisis: How Great Nonprofits Grew Amid the Economy’s Challenges, Chronicle of Philanthropy, May 27, 2012

    Get back to basics
    Get Back to Basics:

    Who are you?

    What is fundraising
    What is Fundraising

    • Relationship-building

    • Social capital development

    • Brokering partnerships for investment

    • Venture capitalism for nonprofits

    • Targeted, planned, insurance of cash flow for long-term growth

    What fundraising is not
    What fundraising is not

    • Begging for money

    • Bake sales

    • Special events and galas

    • Golf tournaments

    • Going to the largest corporation in your city and asking for money

    • One-ofs

    Who are you really
    Who Are You Really?

    Internal “Audit” – not of tangible assets, but can be:

    • What’s your mission?

    • Who do you serve?

    • Who are the secondary, tertiary beneficiaries of your services?

    • Where do you serve?

    • How do you do it?

    • Is your work of interest to the broader community? (research interests)

    • MOST IMPORTANT: What industry are you in?

    Example education
    Example: Education

    • Obviously – all things education related

    • But also relates to

      • Economic Development

      • Health/Childhood Obesity Reduction

      • Out of School Time Activities

      • High School Completion

      • Community Development

      • Character Development

      • Advocacy and Public Policy

    Now funding universe is expanded
    Now, Funding Universe is Expanded






    Out of School





    Research where to look
    Research: Where to look?

    • Foundation Center – Based in DC, classes, searches

    • - Hardcopy Foundation Directories

    • - Online Searches

    • Guidestar

    • US Department of Education


    • Corporation for National and Community Service


    • MD Department of Education


    Telling your story
    Telling Your Story:

    Building Blocks of Good fundraising

    What is your story
    What is your story

    • History, Culture, Myth, Heroes, Values, Mission and Tradition

    • Context

      • Problem

      • Political

      • Urgency

      • Solution

  • Growth

  • Place

  • People

  • Elevator speech
    Elevator Speech

    • Imagine you get stuck on an elevator in Seattle with

    • Bill Gates and Warren Buffet – Would you be ready?

    • Know your repackaged mission statement

    • Tell your story with heart + a pinch of data

    • Show your knowledge

    • Know when to STOP talking

    • Be prepared for quick follow up

    • Be prepared to answer, “How Can We Help You?”

    Example of an elevator speech
    Example of an Elevator Speech

    • “The Awesome Foundation is a global movement of people who are taking philanthropy into their own hands.”

    • “The Wounded Warrior Project exists to honor and empower wounded warriors. We work with the troops from the moment they’re injured through their rehabilitation, recovery, and civilian life.”

    Case statement
    Case Statement

    • Short one- or two pager

    • Opens the door

    • Can be email

    • Summary

    • Gets attention

    • Punchy, marketing-style


    Case statement parts
    Case statement- Parts

    • The hook

    • The story

    • Challenge/ Ramifications/Urgency

    • Who you are and what you do

      • How did your organization begin?

      • What is its mission/vision?

      • Business model

      • What makes your organization unique?

      • How large is your organization and how many does it serve?

      • What are your primary programs, services, or areas of focus? In other words, how does your organization work to meet the challenge?

    Case statement parts1
    Case Statement - Parts

    • Results

      • What results has your organization achieved thus far?

      • What are your organization’s future plans? What are the goal and the values you support?

  • The Ask/Contact Information

    • Why are you asking for money? What is the cost of doing your work?

    • If this is a special campaign, how much do you hope to raise? How will the money be spent and what are the long term impacts? How will the donor make a difference?

    • How can people contact you to donate?

  • Case statement sample
    Case Statement: Sample

    • The Awesome Foundation and the Skoll Foundation share a commitment to innovative solutions to alleviating poverty through philanthropy. The Awesome Foundation has developed a program in Sudan to help teach Sudanese refugees to start businesses to save money to begin new lives when they are relocated to France. With more than half the population under the age of 20 displaced from their homes awaiting relocation, the time is now to begin this training.

    • The Awesome Foundation was started in 2003 by two young scholarship students from the University of Michigan who were looking into grant programs to stay in school. They believed that by connecting to donors who shared a commitment to helping students graduate from college, they could solve their own and other students college debt problems. With help from friends, they started a website and social media campaign, got their 501 c 3, and began connecting philanthropists directly to the causes that meant the most to them.

    • To date, the Awesome Foundation has raised $2 million dollars and distributed $1.5 million to programs around the world, including microfinance, health, water sanitation, and sustainable farming. More than 500 people have directly benefitted, with nearly 2000 family and community members positively impacted.

    • The Awesome Foundation would value the opportunity to speak with you further about the ways the Skoll Foundation can support the Sudanese Entrepreneurship Project. Please feel free to contact Amy Lynn at ….


    I think we all need one

    Internal donor audit
    Internal donor audit

    Get to know your friends a little better

    Internal donor audit1
    Internal donor audit

    • Institutional Knowledge + Database

      • Blackbaud – set it up to work/query

      • Constant Contact

      • Staff

    • Know Them Intimately

      • More than a query

      • Giving record and monitoring

      • Set up interviews

      • Lunches

      • Surveys

      • Small Events

      • Birthdays/Anniversaries

    Internal audit donors
    Internal Audit - Donors

    • Communications

      • How do they like to interact – phone, hard copy, email, text?

      • Who do they like to talk to

    • Donor Education Opportunities

      • About issues you support, programs

      • With an expert

      • Way to get to know them better

    Internal audit donors1
    Internal Audit - Donors

    • Consistency/Year Round

    • Timing

    • Updates and News

    • Opportunities to collect information

      • Testimonials

      • Donor Education Events

      • Donor Visits

    • Giving “Clubs”

      • Circles

      • Ambassadors

      • Armies

    Internal audit donors cultivating and asking
    Internal Audit – DonorsCultivating and Asking

    • Cultivating

      • Appropriate cultivator/solicitor

        • Board member

        • CEO

        • Development Director

        • Favorite staff

      • Listen, Listen, Listen - to needs/interests

      • Personal connection

      • Face to face

      • Personal stories

      • Sometimes numbers/sometimes not

    • Identify solicitors

      • Coach

      • Case Statement

      • Make the calls

    Top tips from successful individual donor cultivators
    Top Tips from Successful individual donor cultivators

    • Problem or opportunity

    • Solution 3

    • Cost

    • Urgency

    • Context

    • Donor benefits

    • Emotion

    Reported motivations for charitable giving
    Reported Motivations for Charitable Giving

    • Motivations Percentage of Respondents

    • Basic needs 43.0

    • Poor help themselves 36.7

    • Make community better 36.7

    • Make world better 35.4

    • For equity

    • (responsibility to help those with less) 27.9

    • Own decision about money 25.3

    • Services govt. can't/won't 23.4

    • Solve problems in world 17.5

    • Same opportunity 16.4

    • Support friends & family 13.8

    • Diversity 6.0

    • Ties across communities 4.6

    • Other 2.3

    • Source: Center on Philanthropy at Indiana University, using data from Knowledge Networks

    Engaging your board
    Engaging Your Board:

    Beyond selling tables

    10 ways to engage volunteers board supporters in fundraising
    10 Ways to Engage volunteers/board/Supporters in Fundraising

    • #10 -Fundraising Committee

      • Team of board members with an interest

      • Share fundraising goals

      • Divide by fundraising activities

      • Assign responsibilities

    10 ways to engage supporters in fundraising
    10 Ways to Engage Supporters in Fundraising

    • #9 - Most Wanted List

      • Do Research

      • Keep Simple

      • Board Meetings

    10 ways to engage supporters in fundraising1
    10 Ways to Engage Supporters in Fundraising

    • #8 - Share Network

      • Be Strategic

      • Homework

      • Chose Prospects

    10 ways to engage supporters in fundraising2
    10 Ways to Engage supporters in Fundraising

    • #7 – Donor Visits

      • Take board members to meetings with donors

      • Board members to initiate lunches

    10 ways to engage supporters in fundraising3
    10 Ways to Engage supporters in Fundraising

    • #6 – House Parties

      • Not Galas

      • Small, intimate

      • At board members’ homes

      • Board members’ friends

      • Decide: Friend-raiser or fundraiser

      • Have a goal

      • Collect contact info

    10 ways to engage supporters in fundraising4
    10 Ways to Engage supporters in Fundraising

    • #5 – Board Ambassador

      • Organize like-minded donors

      • Site visits to your organization/clients you serve

      • Collect info

      • Brown bags, info sessions, wine and cheese – with a specialist/expert on the subject

    10 ways to engage supporters in fundraising5
    10 Ways to Engage supporters in Fundraising

    • #4 – Proposal development

      • Discriminating use of board members here

      • Sign letters where necessary

      • Keep them informed of proposals out

      • Testimonial letters

    10 ways to engage supporters in fundraising6
    10 Ways to Engage supporters in Fundraising

    • #3 – Fundraising event support

      • Planning

      • Inviting

      • Sponsoring

      • Outreach

      • Speakers/presenters

    10 ways to engage supporters in fundraising7
    10 Ways to Engage supporters in Fundraising

    • #2 – Gift Acknowledgement/donor appreciation

      • Chair call to thank donor

      • Letter writing

      • Lunch

      • Special thanks at events

    10 ways to engage supporters in fundraising8
    10 Ways to Engage supporters in Fundraising

    • #1 – Make an annual request to board members

      • Make it special – letter, lunch

      • From ED and Chair

      • As part of United Way giving

      • Board recruitment documents


    It’s easy to Forget the little things


    • Grant is the handshake at the end of the deal – it should write itself

    • Follow all directions

    • Fill out all parts

    • 100 percent board participation including

      • Attendance

      • Support

      • Signing of any documents

  • Budget and Financials

    • Years requested

    • Audits

    • 990s

    • Budgets that add up

  • Components

    • Executive Summary

    • Statement of Need

    • Program Description

    • Implementation

    • Impact

    • Budget Narrative

    • Budget

    • ** Logic Model, Timeline


    • Set up an online account with the foundation or government entity

      • Password/account number

    • Completely online – still need to write and copy and paste

    • Can sometimes save and go back BUT may have to complete all at once

    • Upload whole document

    Executive summary
    Executive Summary

    • Written Last – Presented First

    • Needs to be exceptionally concise and succinct

    • Can be two to four sentences that thread together the program, who needs it, how it is implemented, what the primary outcome will be and its overall cost.

    • This + budget are primary documents funders read


    • “Many of us first learn to ride a bike with training wheels. Training wheels help us get the feel of riding a bike, learning how to pedal and getting our balance. As we get familiar with riding, the training wheels come off and our parents give us a push to get going. After that, we get the confidence we need to keep riding. Empower Nonprofit helps our clients, small community development nonprofits, do just that: we help them get their balance and give them a push so they can become stronger to help their communities.”

    Statement of need
    Statement of Need

    • Describes who needs the program and why

    • Is about the client –NOT your organization

    • Use stats to show need – provide source of stats

    • Mapping – OneStar Foundation

    • Know your district/census tract


    • Do you know where to go to get the data?

    • Who in organization collects data and stories?

    • Where is this maintained?

    Program description
    Program Description

    • Business Plan

    • Outline the overall effort and include a timeline

    • Demonstrate how it works and that it does work – provide data as evidence

    • Describe the resources needed to make it happen

    • Develop in conjunction with the Budget

    Program implementation
    Program implementation

    • This is the “HOW”

    • How are you going to do your program?

    • Describe who will implement the program and their qualifications

    • Overlay the implementation on the program timeline – show how much time each step will take

    • Emphasize the importance of each step

    Program implementation1
    Program Implementation

    • Demonstrate the impact in numbers of clients served over the life of the grant

    • How will this program positively impact the lives of the clients served

    • How will this program positively impact the community where the program is being run

    Budget narrative
    Budget narrative

    • Describe the process for determining key lines of the budget and the need for the amount requested for the program to be effective.

    • E.g. Providing 200 students with after school fitness programs, 6 athletic instructors @3 hours per day, $20 per hour, 5 days per week…


    • Revenue side must equal the expense side and must show all sources of funding

    • Each expense side line item must be labeled for reference to the program

    • Items in both the revenue and expense side must total correctly

    • All columns must be aligned for easy reading.


    • Organizational as well as program budget

    • 990

    • Most recent audit, maybe last two years

    • Staff list PLUS bio/resumes

    • Board list PLUS detailed demographic info

    • ** Foundations often do a “technical review” – all the pieces must be there.


    • Your Homework – Know your Funder

    • Know how and when to approach

    • Know that what you seek is what they fund

    • Know the format required to apply

    • Know who in the community provides same or similar services

    • Use your program officer as advocate

    Site visits
    Site visits

    • Opportunity to showcase your agency and your expertise

    • Meet with the funder to discuss the proposed project on your turf

    • Help decision makers to better understand the project

    • Be prepared

    • Find a quiet spot

    • Give good directions

    • Be succinct

    If you don t get funded
    If you don’t get funded

    • Say thank you

    • Ask for feedback

    • Often comes down to fewer resources than requests

    • Continue to stay in touch

    For additional information
    For Additional Information

    • For more information, advice, help or just venting on:

    • Strategic Planning

    • Assessment

    • Fundraising

    • Grant Writing

    • Board Training or Interventions