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Fundraising 101

Fundraising 101. Presented by: Erin Morantz, CFRE, KCI Ketchum Canada Inc.- Consultant Heather Wardle, Seva Canada - Director of Development. Agenda. Understanding the language Understanding the fundraising environment Understanding the donor Understanding fundraising programs

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Fundraising 101

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  1. Fundraising 101 Presented by: Erin Morantz, CFRE, KCI Ketchum Canada Inc.- Consultant Heather Wardle, Seva Canada - Director of Development

  2. Agenda • Understanding the language • Understanding the fundraising environment • Understanding the donor • Understanding fundraising programs • Understanding the development process • Understanding the role of volunteers • Understanding the role of information management • Understanding the role stewardship and recognition • Glimpse at how the current economic downturn is affecting philanthropy

  3. Acquisition Annual Giving Bequest Capital Campaign Case statement Cultivation Direct Mail Donor Donor Acquisition Donor Pyramid Donor Retention Endowment Gift In Kind Major Gifts Moves Management Planned Giving Prospect / Qualified Prospect Recognition Renewal Solicitation Stewardship Volunteer Fundraising Buzz Words

  4. Philanthropy in Canada • Over 80,000 charities in Canada • 6.8% gross domestic product • 12% of Canadians employed in the charitable sector • Revenues total $112 billion per year • 78% of individuals 15 years and older donate money to charity

  5. Wide Distribution Distribution of Support from Individual Canadians Distribution of Charities

  6. The statistics tell us… • Individual giving will be the cornerstone of successful development programs with major gifts leading the way • Donors are more sophisticated and want “impact” and involvement

  7. Who or what is a donor? • Individuals & Families • Corporations / Businesses • Employee Groups • Foundations • Government • Associations/Clubs

  8. to demonstrate power tax and financial planning considerations gain influence, professional advancement peer approval ego gratification/self esteem recognition from peers identify with a worthy cause of goal sincere desire to help/care belief in the mission immortality diminish negative feelings, guilt, fear, anger express deep emotion - grief (memorial) or Joy (commemorative) give something back for the joy of it. Why do people give?

  9. Why do people give? BECAUSE THEY ARE ASKED!!!!!!

  10. What are Donors Looking for? • Positive image • Vision, uniqueness, urgency • Impact on community / society • Strong strategic planning / financial management • Prioritized needs • Clear description and outcomes of the project(s) to be funded • “Fit” with the donor • Sense of permanence

  11. Donor Bill of Rights • Information about mission, use of donated resources and organizational leadership • Access to financial statements. • Assurance that gifts will be used as intended • Receive appropriate acknowledgement and recognition. • Assurance that gifts handled with respect and with confidentiality • Expect all relationships with organization be professional in nature. • To know if those seeking donations are volunteers, employees of the organization or hired solicitors. • To remove their name from mailing lists • Freedom to ask questions.

  12. Fund Raising Pyramid Bequests Major gifts Annual Gifts Special Events or Fundraisers

  13. Donor Pyramids

  14. Annual Gifts • Made from a donor’s cash flow • Do not require financial planning • Support the ongoing needs of an organization – they are the sustaining gifts • Many gifts at lower levels are sought

  15. “Ladder of Effectiveness” • 1. Personal visit by a team • 2. Personal visit by one person • 3. Solicitation by personal letter with a follow-up phone call • 4. Solicitation by personal letter • 5. Group direct mail

  16. Major Gifts • Generally require thought or planning on the part of a donor • Fewer solicitations for larger gift amounts • Generally, the gifts support an organization’s long-term goals • Donors can be individuals, corporations or foundations • The key is that someone must ask for a significant gift face to face

  17. Corporate Giving • Corporations often have established giving criteria by which they judge programs and organizations seeking support • They are not generally annual donors. Instead, they provide major gifts for programs and capital • The face of corporate giving in Canada is changing in a number of ways

  18. Corporations Looking Beyond Dollars • Strategic partnerships • Longer timelines • Greater scrutiny, higher expectations • Need to manage competition and increase in requests • Their context: spotlight on corporate governance, continued increase in competition, globalization

  19. Planned Giving • Includes gifts of shares, wills and bequests, life insurance, etc… • Usually, only the most sophisticated organizations will have an organized planned giving program • However, it never hurts to make donors aware of the options for giving available to them.

  20. The Donor Development Process Investment ESTATE OR PLANNED GIVING Bequests / Legacies Involvement Planned Gifts MAJOR GIVING Endowment Campaigns Interest Capital and Special Campaigns Major Gifts from Individuals, Corporations and Foundations Information ANNUAL GIVING Special Events Identification Annual Appeal, Direct Mail, Telemarketing Small Gifts from the Public-at-Large

  21. Donor Development Cycle

  22. The Constituency Circle Board PAC Staff Students Donors Employers, suppliers, successful alumni People or organizations with similar interests

  23. Why do people volunteer? • Altruism • Desire to make a difference • Desire for status • Employer encouraged employee • Desire to develop skills and expertise • Desire to build personal relationships • Because they were asked

  24. Primary function of Volunteers • Governance • i.e. serving on a board of directors • Set policy, establish direction, hire/fire CEO, ensure fiscal integrity and financial health • Program • i.e. being a Big Sister or Big Brother • Helping to organize a fundraising event • Development • i.e. fundraising (i.e. face to face solicitation)

  25. Staff obligation to volunteers • Empower • Lead while appearing to follow • Provide opportunities for meaningful volunteer work • Disclose appropriate information to enable them in their volunteer duties • Provide orientation and training • Provide job descriptions • Conduct performance evaluations/give effective feedback • Provide appropriate and frequent recognition

  26. Information Needed • Biographical: • Individuals: name, address, contact #’s, spouse, employer • Organization: name, address, contact #’s, contact names, email address • Relationship to charity • Giving history, alumni status, volunteer involvement • LAI / Prospect Info • Link to the organization, giving ability, areas of interest, cultivation status • Cultivation & Solicitation Activity • Record of donor contact (call reports, briefing notes, action tracking, proposals submitted) • Recognition & stewardship provided

  27. How is Donor/Prospect Information Used? • To identify potential donors along with their LAI (Link, Ability, Interest) • To track gifts for receipting and recognition purposes • To track giving patterns in order to determine RFA (recency, frequency, amount) • To track and coordinate “moves” with the prospect/donor

  28. How is Donor/Prospect Information Collected? • Personal contacts • Participation records (giving history, volunteer history, past contact between donor and charity) • Public information (internet, newspapers, research sites, business journals, directories)

  29. Ethics & Confidentiality • FOIPP (Freedom of information; protection of privacy) • APRA Code of Ethics: Confidentiality, accuracy, relevance, accountability, honesty • Donor Bill of Rights • Code of Ethical Fundraising Practices

  30. Difference between Stewardship & Recognition • Stewardship is the process of ensuring the donor’s gift is used as intended and that the use, impact and results of their gift are communicated back to the donor, thereby gaining their confidence • Recognition is one element of effective donor stewardship. Recognition can be used to honour a gift (annual) or the relationship (cumulative) or both.

  31. Recognition Methods • Naming opportunities • Donor walls • Donor thank you events • Plaques/mementos • Thank you letters & phone calls • Meetings with senior leadership

  32. Stewardship Methods • Stewardship reports • Newsletters • Meeting with key constituents involved in the funded area. • Invitation to events pertaining to the funded area (i.e. ground breakings, awards ceremonies). • Tours The key to good stewardship is communication.

  33. Helpful resources • Henry A. Rosso, Achieving Excellence in Fundraising – the Bible of fundraising • http://www.afpvancouver.org/ Association of Fundraising Professionals • http://www.cagp-acpdp.org/en/default.aspx Canadian Association of Gift Planners • http://www.malwarwick.com/learning-resources/ fundraising articles by Mal Warwick

  34. More helpful links • http://www.blackbaud.com/company/resources/giftrange/giftcalc.aspx An online gift range chart calculator • http://www.kciphilanthropy.com/ Ketchum Canada Inc. and publishers of Philanthropic Trends

  35. More helpful links • www.charityvillage.com • www.givingandvoluntering.ca • www.globalphilanthropy.ca • http://www.sofii.org/ A showcase for fundraising • http://www.networkforgood.org/ Lots of resources and tips on online fundraising

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