FUNDRAISING 101: The Basics

1. FUNDRAISING 101: The Basics Presented by John Howard February 27, 2008

2. Where are we going? • Section 1: Laying the Groundwork • About John Howard • Why Fund-raise? • Whose job is it? • Attitudes needed for success • General Principles • Money-making vs. fund-raising (development)

3. Where are we going? • Section 2: Bringing in the Dough with Money-making Projects • Overview • Specific types of money-making projects • Benefits and Drawbacks • Building Ownership through involvement • Case Study – Peoria Heights P.L. • Short Break

4. Where are we going? • Section 3: Building Long-term Funding through a Development Approach • Overview • Understanding Donors • Asking for Money • Library Annual Fund • Major Gifts & Memorials • Planned Gifts • Capital Campaign

5. Where are we going? • Section 3: Building Long-term Funding through a Development Approach (continued) • Recognition and Acknowledgment • Do you need development staff? • Role of the Library Director • Creating a plan for fund-raising • Summary – Where to go from here

6. Why Fundraise? • You tell me – why are you all here? 

7. Why Fundraise? • To offer new services • To offer existing services better • To better fulfill your mission • To make your community a better place

8. We don’t Fundraise… • To pay the bills • Because we need something • Or else!

9. Who is Responsible? • Ideally, a high-powered group of community leaders so devoted to your library that they will offer time, talent and treasure • Reality – multiple answers • Board, friends, volunteers, staff may all be involved

10. Attitudes Needed for Successful Fundraising • Unshakable conviction in the value of your library • Belief that people are willing to give • Belief that, even in bad times, wealth exists in your community • Willingness to step outside your comfort zone

11. Why is your library important…? • Elevator Speech – short statement that you could share while riding in an elevator. • No more than 2 sentences • No more than 50 words

12. Important Rules of Thumb • The best gifts are win-win propositions • Have donors thank YOU • People tend to repeat pleasurable experiences and avoid painful ones • Help donors to enjoy their gift • How you acknowledge the last gift determines whether you get the next • Never beg – create partnerships • Good planning precedes good fund-raising • The $10,000 question

13. Fundraising vs. Moneymaking Moneymaking:Engaging in activities that will create a profit that will be used to support your library Fund-raising: Creating long-term relationships with people interested in your organization, and letting them invest in your library

14. Types of Moneymaking Projects SALES! • Examples • Used Book Sale • Bake Sale • Cookbooks • Book bags • Coffee • Community garage sale

15. Types of Moneymaking Projects SALES! • Drawbacks: • Relatively low profit potential • Possibility of losing money • Competition with local businesses • Benefits: • Low pressure • Easy to do • Depending on product, may raise $$ from people unaffiliated with library • Unthreatening way to involve volunteers

16. Types of Moneymaking Projects Raffles • Drawbacks: • Varying profit potential • For best results, need a sizable sales force • Requires researching and following local laws • Benefits: • Low cost with donated prizes • Straightforward • Depending on prize, may raise $$ from people unaffiliated with library

17. Types of Moneymaking Projects EVENTS • Examples: • Luncheons/dinners • Musical or Theatrical Performances • Golf tournaments • Dances • Festivals • Trivia Nights

18. Types of Moneymaking Projects EVENTS • Benefits: • Can be FUN! • Good way to build visibility for library • May be built around the interests/skills of your volunteers • May give opportunity to share library’s “story” • Need good attendance to make $$ • Drawbacks: • Can be LOTS of Work • Very dependent on timing • Can be high stress • Small to moderate $$ potential until established

19. Volunteers Voluntary involvement in your mission moves volunteers from interest to involvement to ownership

20. CASE STUDY Taste of Peoria Heights Marsha Westfall Peoria Heights Public Library

21. Building Long-term Support through a Development Approach Primary Goal: Long-term, mutually beneficial relationship with community members

22. Overview of the Development Approach • Identification • Cultivation • Solicitation • Acknowledgment • Cultivation • Solicitation with upgrade

23. Why do donors give? Personal belief in project/organization Gratitude – “I have been served” Guilt Recognition BECAUSE THEY WERE ASKED PBS Drake Univ. Donor Life-Cycle Prospect Customer Annual Gift Major Gift Ultimate/Planned Gift Donors/Volunteers/ Donor-Volunteers Understanding Your Donors

24. Asking for A Gift • Levels of effectiveness (Best to worst) • Peer asking peer face to face • Non-peer/staff asking face to face • Peer asking peer via telephone • Non-peer/staff asking via telephone • Personalized customized letter • Personalized customized email • Bulk Mailing

25. Asking for A Gift • Best gifts happen when the right person asks the right person for the right gift at the right time • (Not very common) • REMEMBER YOUR ROLES • Demonstration • Practice opportunity

26. Types of Fundraising Activities Annual Fund

27. Types of Fundraising Activities ANNUAL FUND • The Annual Fund is the foundation/basis for development style fund-raising. • Through the Annual Fund, donors are identified then brought along through the donor lifecycle. • The Annual Fund includes a combination of in-person, events, telephone and mail activities, along with significant acknowledgment activities. • Any library can run an annual fund.

28. Types of Fundraising Activities CAPITAL CAMPAIGNS

29. Types of Fundraising Activities CAPITAL CAMPAIGNS • A capital campaign is a focused, high visibility short-term effort to raise significant dollars, usually over a 3-5 year period • Capital Campaigns are most often held for building projects • Capital Campaigns are most effective when they grow out of an annual appeal, but they can be an effective way to jump-start an appeal • Capital campaigns are expensive and labor-intensive

30. Types of Fundraising Activities Planned Giving

31. Types of Fundraising Activities Planned Giving Ex-resident leaves Monticello library $2 million in his will MONTICELLO - A few years ago, Allerton Library director Lisa Winters received a thank-you note from a woman who she had helped with her research."At the end she said, 'My friend, Max is going to leave you something,' " Winters said. "I thought: He's going to leave us his books." Winters later received a phone call from Tom Finseth, a close friend of Max Hency, a former Monticello resident, who told her Hency was leaving the library a large donation in his will. Just for fun, Finseth asked her, "What would you consider a large donation? "Winters, who has worked at the library for 29 years, knew exactly what would constitute a sizable contribution."I said $1,000," Winters said. "We have had several gifts a little over $1,000, but I don't recall anything more than that." Max Hency, a retired Navy commander who graduated from Monticello High School in 1941, left more than $2 million to Allerton Library. The library received the first installment of $1,990,000 in January and is expecting to receive another, much smaller check in the future. "Overwhelming is the best word to describe it," Winters said.

32. Types of Fundraising Activities Planned Giving • The largest gift your library will ever get is likely to be a planned gift • Although some gifts are made during the donor’s lifetime, most are made at the time of the donor’s death, when they no longer need the money • There are people ready to make planned gifts to your organization right now • Donors without children are particular prospects • Many planned gifts take time to ripen – years of volunteer involvement or gifts to the annual fund lead up to the provision for a planned gift

33. Recognition and Acknowledgment • Acknowledging and recognizing gifts well leads to more gifts • Thank, but don’t just thank. Involve the donor • Creating some basic policies is important • Websites give us an entirely new and exciting way to recognize gifts • Don’t be afraid of your donors

34. Creating a Plan for Fundraising • What does your library need to do to move forward? • What will it cost? • Set a goal for coming year • Choose activities to reach that goal • MM, FR or both • Start a team • If necessary, start small • Build on your successes

35. Getting the Help you Need • Alliance Innovation website resources • Working with a paid consultant • Hiring development staff • Train, train, train • Further workshops • Capital Campaigns (Annual Fund?) - April 30th • Planned Giving – June 25th • By request as availability allows

36. Summary • Attitude is the most important thing • “My library is important and deserving of support!” • “There are people in my community very willing to support my library!” • “We can successfully move our library ahead!” • “There is money out there for the asking” • “What does not kill me makes me stronger”

37. Thanks To: Genna Buhr Lee Logan Jillian Rebmann The folks at Peoria Heights Kitty Pope and Lori Bell My wife and family And all the little people who helped make me great…