295.02 Billion Given in 2006

Slide 1:$295.02 Billion Given in 2006

Slide 2:Where it Went

Slide 3:Why Do People MakeCharitable Gifts?

#1 They are asked to a make a gift #2 Spiritual need or love of humankind. #3 Personal gratitude. #4 Perpetuation of ideals, values and goals #5 Pride in personal achievement #6 Ways of giving are explained #7 Join in to assure goal(s) are met. #8 Fear factor

Slide 4:Nine Views of Philanthropy

1 Nobody wants to give money away. 2 Thousands of people want to change people�s lives. 3 All the money in the world. 4 Listen to your donor. 5 View everyone as a prospect. 6 Show how your project has impact. 7 Passion for the cause. 8 Make your expectations known. 9 Stay close to your mission.

Slide 5:Basic Fundraising Philosophies

Remembering these five basic concepts increases your ability to secure charitable giving. �No one wants to give money away.� They want to make a positive difference in the life of their community�however �community� is defined�or in the lives of individuals. �Communication is the essence of appreciation.� If the only time your organization is communicating with donors is when you are asking for money, the wrong dynamic is in play. �Capacity plus interest equals a charitable gift.� An organization can do very little about capacity, but it can create interest in the hearts and minds of prospects.

Slide 6:Basic Fundraising Philosophies

�Ask for a specific amount to maximize giving.� How does a donor know what to give if an organization does not share its need with them? �I am providing you a chance to make a difference.� Psychologically, volunteers and staff members must believe that when they participate in a cultivation or solicitation session with a prospect they are doing that prospect a favor.

Slide 8:Take the initiative to introduce yourself and establish the relationship Maintain relationships � yours NOT the donor�s responsibility Be thorough and accountable in all aspects of the cycle. It must be professional and personal � the two are not mutually exclusive!

Eyes on the BIG Picture

Slide 9:Eyes on the BIG Picture, II

Fundraising is not a one-person band or duet, it�s an orchestra. Development in many organizations is considered to be only the development office�s responsibility. Donors do not view development separate from the organization and neither should we.

Slide 10:Movement of Solicitation

40% to 60% GOAL How does a healthy campaign progress? Inside out. Top-to-bottom. Left to right. TIMELINE

Slide 11:The Proven Model

Slide 12:Types of Gifts a Donor Can Make

A. Current GiftsThese are gifts that are received in any calendar or fiscal year or pledged and received in a stated pledge period. For example, a donor commits to making a $100,000 gift no later than five years from the date of the pledge. B. Deferred GiftsThese are gifts that are received beyond five years or when at the time pledged by the donor the date of the gift is unknown. C. In-Kind GiftsThese are gifts of materials, labor or other non-cash assets that fund campaign or institution initiatives. The rule of thumb is if the gift funds something the institution would otherwise have to pay cash for to complete a project, it is counted as a gift. D. Restricted GiftsThese gifts are restricted because the donor has �advised� the institution where he or she would like the donation applied and how it is to be used.

Slide 13:Types of Gifts a Donor Can Make

E. Unrestricted GiftsThese gifts are unrestricted and may be applied anywhere for use by the institution because the donor did not �advise� where or how the gift is to be used. F. Endowment Gifts & Endowed FundsThese gifts may be restricted or unrestricted. These gifts may be current or deferred. Such gifts are all placed in funds in which the gift is invested and only a percentage based on a formula is paid out annually to address general or specific needs of the institution.

Slide 14:Ways to Make Charitable Gifts

#1 Cash / Checks, etc. #2 Securities / Stocks, bonds, mutual funds, etc. #3 Personal Property / Coins, guns, books, art collections, etc. #4 Real Property / Houses, office buildings, etc. #5 Royalty Rights & Patents / Books, oil, etc. #6 Trusts & Annuities / CRT, CCA, etc. #7 Wills / A stated bequest #8 Insurance / Cash Balance Explaining to prospects the different ways they can make charitable gifts is important. Pledge periods and gift giving combinations help a donor maximize gifts and have a greater impact on an institution.

Slide 15:Appreciation Strategy

A Quiz. How quickly do you remit a charitable receipt and a thank you letter? How often do you �visit� with donors or prospects when not asking for a donation? Do you provide a donor(s) with an annual accounting of the organizations gifts and programs? Do you have volunteers or clients say �thank you�? Have you adopted the AFP Donor Bill of Rights? Do you abide by them?

Slide 16:ATTRACTING PHILANTHROPIC SUPPORT

To improve dramatically your ability to attract gifts and develop a strong fundraising base, effective staff and volunteer fundraisers must place a priority on the following concepts: 1) Mission Statement: you must be able to identify and verbalize the uniqueness of the organization, the benefits it offers the community and the overall worthiness of its programs. You need to be able to do this on the spot, at receptions, on the phone, in your written correspondence. 2) Board and Volunteer Base: expand and build a strong Board and volunteer base is critical to the long-term success of any organization 3) Development Plan: No effective fundraising operation can work without a development plan.

Slide 17:ATTRACTING PHILANTHROPIC SUPPORT

4) Management: Volunteer management is critical to the success of the fundraising organization. 5) Focus On Major Gifts: Staff and volunteers should focus their efforts on those prospects and donors with the potential to most significantly impact any campaign�s success. 6) Board of Directors Role in Fundraising: Each member of the Board should actively seek out ways in which they can cultivate relationships that may aid the development effort. Board members should also act as informed ambassadors to the rest of the community. This can be accomplished either through training and orientation sessions or through special reports given during Board meetings.

Slide 18:Annual Fund program

Establish an Annual Fund Program Major Gifts: sponsorship/underwriting fundraising Major Gifts: lead gift or premiere membership society Direct mail, membership or friends campaign. Members or friends-only benefits Create an annual community benefit.

Slide 19:Fundraising Integration

Slide 20:Comprehensive Development Plan Features

1) Three major types of giving: Major giving Annual giving Planned giving 2) Three major types of donors: Individuals Corporations Foundations 3) The integrated approach: Case-driven Donor-focused Effective and efficient

Slide 21:Comprehensive Development Plan Features

5) Keys to integrated approach: Comprehensive development plan Compelling campaign or marketing thrust Multiple natural opportunities to engage constituents 6) Focus on medium- and long-term philanthropy Leadership, major, special project and campaign gifts Planned giving Endowment

Slide 22:Annual Fund Plan

1) Draft it well in advance. Put it on paper with a timeline. 2) Create an identify for the annual fund. Give it a name. Have annual chair people. Have an annual committee. 3) Select solicitation programs. Telefund, community drive, lead gift campaigns, direct mail, planned giving seminar, a special event, etc. 4) Create written case for support. Why are you raising money? Staff, volunteers and donors must be able to understand your case for support. 5) �Drop dead date� and work back. Volunteers, lists, printed materials, phones, mail � all of these action items must be sequenced for each solicitation strategy within the annual fund program.

Slide 23:Annual Fund Plan

6. Set goals. Goals are often feared so they are not set. Failure to set goal established failure as the goal. 7. Share Results. Don�t ask for gifts and volunteer help with annual drives if you are not willing to share the news of the drive/annual fund program. 8. Say thank you. Too many organizations take money and never say thank you in an annual fund drive.

Slide 24:5-Steps of Fundraising

An advancement program must have tools and strategies that best address these four steps and processes for the institution�s fundraising objectives. Whether asking for a $1,000 gift or a $1 million gift, the steps are always the same.

Slide 25:Prospect Identification Strategies

#1 Round Table Screening Sessions. Who knows who? #2 A File Review. Current mailing lists, current and past donors and volunteer lists. #3 Attendee Rosters. Who has attended your events and programs. #4 Personal visits with Board members, trustees, community leaders. #5 Research. Foundation searches, annual reports and publications from other NPOs, and community publications. #6 Opportunistic networking.

Slide 26:Cultivation Activities

Cultivation or "friend-raising" activities are essential to any fund raising effort. As people become more involved, they become more committed. Involvement leads to investment. Cultivation activities are not driven by deadlines. Cultivation "events" are not directly fund raising in nature. Rather, they should be social and informative. "Friend-raising" activities might include any or all of the following, some of which you might have already developed and implemented: 1) Newsletters and general mailings 2) Highly personalized mailings that do not request funds but tell of some important activity 3) Invitations to tour offices or facilities 4) Invitations to small luncheons

Slide 27:Cultivation Activities

5) Focus groups 6) Invitations to the annual meeting 7) Individualized strategies such as invitations to speak 8) Recruitment to serve on an ad hoc task force or special committee or one-on-one sessions simply to seek advice 9) And a host of other personal, genuine contacts You will also want to track information concerning who has been invited to which gatherings, who came and their reactions. Be sure that every prime prospect has been invited to at least one non-fund raising event every six months.

Slide 28:Cultivation Strategies

#1 Monthly Briefing. A simple, direct, systematic and honest approach to communicating with donors and prospects. #2 Newsletters. #3 Facility Tours. Depending on the goals of your fund raising, tours of current facilities can be highly educational for donors and prospects. #4 Client Events With Testimonials. Perhaps the single best cultivation tool of most organizations is to have donors and prospects meet with the people, clients, patients or students that benefit most from their donations. #5 Honor Roll of Donor Publications. You may call it a annual report, but when written correctly and used effectively it is a powerful cultivation tool. Communication vehicles specifically designed to cultivate and/or express appreciation to donors are fundamental to a successful development operation.

Slide 29:More Cultivation Strategies

It�s a clich�, but it�s true. Fundraising is all about relationships. An institution must have a cultivation plan that creates relationships. �Remember, communication is the essence of appreciation.� Cultivation Vehicles/Strategies* Campaign Case Statement One-on-One Visits Leadership Dinners or Receptions Letters & Notes A Campaign or Development Web Site Videos (DVDs and/or VHS) Press Packet Electronic communications: e-blasts, personal email, facebook, twitter *Incorporate testimonials from clients, families, etc. CAUTION: None of these items secure charitable gifts. Volunteers and staff using these types of cultivation tools secure charitable gifts.

Slide 30:Cultivation Strategy:A Perspective for Cultivation

It�s a clich�, but it�s true: fundraising is all about relationships.An institution must have a cultivation plan that creates relationships.Remember, communication is the essence of appreciation.

Slide 31:Newsletters

Newsletters are an important adjunct to the fund raising and "friend raising" plan. Every newsletter should have a donor response device and/or contribution return envelope. Each newsletter should generously thank donors and volunteers. Newsletters should be short, succinct and uncluttered. Newsletters should offer enough information to entice but not enough to satisfy. Additionally, each newsletter should re-state the case for support by covering important program and service developments. The newsletter should be a major vehicle to promote the endowment fund and planned giving.

Slide 32:Direct Mail Campaigns

Large donors are increasingly difficult to attract and retain. For this and other reasons, it is essential to build as large a donor base as possible. The traditional methods of accomplishing this are phone and mail campaigns. Mail campaigns serve three basic functions: 1) Donor acquisition mailings are a long-term investment designed to increase the number of contributors. 2) Mailings are needed to encourage large numbers of donors to renew and increase their support.

Slide 33:Direct Mail Campaigns

3) Mailings perform a public relations and informational role. Donor acquisition mailings rarely pay for themselves initially. However, as donors renew and increase their contributions, the donations from mail can grow to significant levels. Personalized computer generated mail-merge letters produce higher return rates than label and "Dear Friend" letters. Numerous test mailings have demonstrated that longer letters tend to produce greater response rates. Letters with postage paid business return envelopes tend to produce greater response rates. Letters that suggest a specific donation amount produce larger average gifts. Donors can be convinced to make multiple contributions throughout the year. The fund raising letter should be written with one typical member of the segmented mail list in mind, rather than sound as if it was written to a group.

Slide 34:Special Events

Special event fund raisers enable not for-profit agencies to increase the public's awareness of the institution's mission and programs. Special events also create numerous opportunities for volunteer participation. As fund raising vehicles, however, these events tend to be costly, both in terms of efforts and costs in relationship to net funds raised. Even simple events require six months lead time for planning, volunteer recruitment, site selection, preparation, implementation and ticket sales. Special event fund raisers should be well-planned with careful attention to budget projections. Events should net at least 50% of their gross income. Sponsorships significantly increase the net income of special events fund raisers. Moreover, tributes or guests of honor tend to increase an event's fund raising potential.

Slide 35:Special Events

The best fund raisers are fun. Each year's success can help assure the next year's positive outcome. Too many special events can mute their effectiveness. Fewer are often better, both for staff and constituents. In most organizations engaged in special events fund raising, a guild or support group takes responsibility for these activities. Staff involvement can range from an advisory capacity to full-blown active support of the event. The recruitment of a dynamic chairperson will help assure the success of the special event. The ideal chairperson will have control of his or her time, is enthusiastic, has a wide circle of acquaintances, has organizing skills and is fun to work with. This person must own the event.

Slide 36:Comments regarding Corporate and Foundation Fundraising

Corporate and foundation grants can play an important role in your organization�s philanthropic support. Nonetheless, the percentage of overall charitable support given by corporations and foundations should put this area of giving in perspective. As a reminder, 85 percent of all charitable support comes from individuals. The remainder flows from corporations and foundations. Nationally, 90 percent of all contributions come from 10 percent of all donors. Advice� personal solicitation approach should characterize your approach to corporate and foundation donors. Identifying and prioritizing key corporate and foundation supporters will help to focus this personal approach. the power of personal relationships, which can be brought to bear through connections with Board members, staff and other constituents, always add potency to corporate and foundation solicitations.

Slide 37:Grant Development

Pre-submit activities: Clear definition of project, research a match between project and the foundation Review of foundation Board by organization�s Board Pre-submit visit Proposal needs lead time for all parties involved to verify data and goals or measures outlined Post-submit activities: Timely acknowledgements from more than one representative of the organization News releases with consent of foundation. Personal acknowledgements involving awards that publicly acknowledge the foundation Good news updates that involve personal stories Prompt submission of all reports to them Continue the relationship and steward the gift Grant Development: Grant development is a process that can be divided into three activities

Slide 38:Planned Giving

In a recent year, bequests from individuals to charities accounted for nearly 7 billion dollars, an amount greater than all the donations from all the corporations in America. Yet, bequests are but one of the many gift forms available to our donors. With planned giving strategies, donors can make substantial gifts to charitable organizations and receive income for life. Planned gift donors benefit from reductions in income, estate and capital gains taxes. Many planned giving firms provide brochures and mailing materials that can be imprinted with your organization's logo and name. As with all fund raising, the materials are simply useful tools. Planned gifts are the result of years of relationship building activities. This is important for several reasons. To assure success of the program, staff and volunteer leadership must make personal contacts and follow-up visits to those contemplating bequests or planned gifts to the agency. You will also need to maintain close relationships with estate planning professionals.

Slide 39:Personal solicitation programs

Personal solicitation programs are the most cost-effective method of raising funds. Moreover, a personal solicitation program gives us an opportunity to tell "movers and shakers" in the community about your programs. Personal solicitation programs require little expense. Nonetheless, personal solicitation programs MUST be organized to have impact. Personal solicitation programs require: 1) Inexpensive solicitation materials 2) A series of meetings to generate prospect names and make assignments 3) A method of tracking assignments 4) Training sessions

Slide 40:Personal solicitation programs

5) Volunteers willing to ask for contributions 6) It is always difficult to recruit volunteers willing to solicit funds. As a result, I first recommend that the organizational executive director, development personnel and a few key volunteers become comfortable asking for contributions. 7) Next, experienced volunteers and staff should make appointments with potential donors and explain why YF is important to the community. When possible, they should take a less experienced solicitor with them. 8) As volunteers and staff become comfortable, they can ask for solicitation and branch out on their own.

Slide 41:Major Gift Development

Steps to Major Gift program: Identify prospective donors to find out who has interest and has ability to support your organization. Capacity of philanthropy without the interest will not work. Cultivate relationships with current and prospective donors to share what your mission is about and not about. The most effective is conversation with demonstration by the right person. Solicit those individuals or businesses to find out if they can and will support you. This is not a pass fail demonstration but a conversation with a purpose. A �no� can be for a variety of reasons, none a reflection on the organization. Steward the relationships with those donors. Not only is the right thing to do, it also adds value to your organization. Those past donors become ambassadors, boosters, and continuing volunteer support.

Slide 42:Involve the donor�s family Honor the donor�s life�s work Respect the donor�s values Answer the donor�s questions Honor the donor�s name Showcase a donor�s talents and experiences Give a donor financial security Have the right person(s) ask

Solicitation Strategy:Eight Ways to Secure a Gift There are many dynamics/strategies in securing a gift.

Slide 43:Understanding A Solicitation Strategy

1. How much should you ask from this donor prospect? 2. How many people should go on the ask? 3. Who should go on this ask? 4. Should the spouse of the prospective donor be included in the ask? Should children be included? 5. Where should the solicitation take place? 6. Should the ask be in writing or simply verbal?

Slide 44:Solicitation Strategy: Questions Continued

7. Should you ask for a specific amount? 8. What questions has the donor asked before, if any? 9. Did you get an answer back to the donor when they asked that question? 10. What questions, answered or unanswered, do you as a solicitor have about the ask? 11. Did staff do their homework; complete a donor rational sheet?

Slide 45:Solicitation Strategy:A Volunteer�s Solicitation Check List

1. Who is the best team to make this ask? 2. What is my commitment to this campaign? 3. Have I or the staff made the appointment? 4. Do I know my organization and its case for support? 5. Do I or staff know the questions asked by this donor before? 6. Have the right materials been shared in advance? 7. Have the right materials been prepared for this ask? 8. Have I rehearsed the presentation?

Slide 46:Solicitation Strategy:The Solicitation Meeting

Opening of Meeting:Be yourself. Remember why you are asking for help. Donor�s Questions:Know your donor�s questions, if any. Proposal:Have the proposal in writing. Ask:Within the first ten minutes of the meeting, ask for the gift. Stop Talking:Let the donor respond.

Slide 47:Solicitation Strategy:Asking for the Gift

The Vocabulary of the Ask �Joe, we are here today to ask your consideration of a gift of $20,000 per year for five years for a total gift of $100,000 to this campaign. With your help this campaign will succeed and current and future generations will be better served.� �Yes� �No� �Maybe�

Slide 49:Fundraising Dynamics & Footnotes

A. Campaigns transform organizations. B. Campaigns are about more than money. Campaigns are about engaging more people in the life of the organization. C. Communication is the essence of appreciation. D. If those individuals closest to an institution are not willing to make stretch gifts, why should anyone else? E. Those who make gifts and help ask for gifts help make decisions. F. The clich� is true. Fundraising is about relationships. Create relationships.

Slide 50:Remember This

When you ask someone to help Youth Friends you are doing a favor for that prospect. You are allowing the donor prospect to help you change the lives of the current and future generations of your community. They should be thanking you for allowing them to change lives and improve their communities. Be humble, but confident, but stand and make an argument for the values of your organization and the great work it does. Now. Go do it.