Fund Raising Success

1. Fund Raising Success

2. Who gives the most money away?

3. 2011 Contributions Living individuals gave $217.79 billion Bequests = $24.41 billion Foundations = $41.67 billion Corporations = $14.55 billion Source: Giving USA 2011

4. Since most money comes from individuals, create a fund raising plan that focuses largely on individual donors from your community. It then becomes a dependable income stream for your program. Do not spend the majority of your time trying to raise money from national foundations and large corporations. Fund Raising Success

5. Myths of Fund Raising Myth: Only rich people give 3 out of 10 people have disposable income, yet 7 out of 10 give to charities 85% of money given by individuals is given by households with incomes of $60,000 or less Households who make $10,000 or less give 5.5% of their income to nonprofits, while those who make more than $100,000 give only 2.5% Myth: People give only for tax reasons 80% of people who give to nonprofits do not deduct it from their taxes Myth: Only men give 86% of all personal wealth is controlled by women 61% of all bills are paid by women Fund Raising Success

6. Average Length of Time to Raise Money Short Term Money – 3 months • Individual/Major Donors • Simple Special Events • Volunteer Canvassing • Direct Mail • Neighborhood Businesses Mid-Term Money – 3 to 6 months • Local Foundations • Local Churches • Larger Special Events • Service Clubs • Some National Churches • Unions Fund Raising Success

7. Average Length of Time to Raise Money (cont.) Long-Term Money – 6 to 18 months • National Foundations • Financial Institutions • Large Corporations • Branch Corporations • National Churches • Jurisdictional Churches • Professional Canvass • Workplace Giving (United Way, Community Shares) • Business Ventures Fund Raising Success

8. Principles of Fund Raising • Developing a Strong Case Statement • Understanding the Purpose of Fund Raising • Using Strategies Effectively • Diversifying Your Fund Raising Fund Raising Success

9. Case Statement • Mission Statement (Why?) • Goals (What?) • Objectives (How?) • History (How long?) • Structure (Who?) • Budget (How much & who pays?) Fund Raising Success

10. Purpose of Fund Raising What is the purpose of fund raising? To get money? NO! To build relationships! Fund Raising Success

11. Building Relationships The first gift from a donor is often an impulse gift. Your program should then respond accordingly: ←←← Impulse gift – 1st gift coming from donor Your Program →→→ “Thank before you bank” Send thank-you note →→→ Send newsletter to donor →→→ Send an appeal at least once a year to donor →→→ Invite donor to a special event →→→ Phone-a-thon Through these efforts, the impulse donor becomes a habitual donor! Fund Raising Success

12. Types of Donors Bring them in, keep them in, move them up! Planned Gifts Thoughtful Donors ↗ Habitual Donors ↗ Impulse Donors ↗ Prospects↗

13. Fund-Raising Strategies Time In vs. Money Out Personal Strategies Personal visit by individual or team 50% Personal phone call 20-30% Personal letter with follow-up phone call 10% Impersonal Strategies Door-to-door canvassing 12% Phone-a-thon 5% Direct mail 1-2% Special Events 0% Fund Raising Success

14. Diversify Sources of Funding Match people affiliated with your program with different sources of funding Interest Federated Funds In-kind Special Events Major Donor Small Donor Account (United Way) gifts Program Program ↕↕↕↕ ↕ ↕ Board Board Volunteer Board Board Volunteer Member Member Member Member “Joe” “Sally” “James” “Vivian” “Susan” “Bob” Fund Raising Success

15. Top 5 Reasons Why People Give 5. I like acknowledgment and praise 4. My family and/or friends support the program 3. I believe in the issue 2. I trust the person asking me to give 1. Because I was asked! Fund Raising Success

16. Individual Donor Campaign Focus on identifying prospects and the most appropriate way to ask. A Prospective Donor Has: A – Ability → To give a gift of importance to the giver B – Belief → In your work or similar work C – Contact → With your program, you or someone who knows you Fund Raising Success

17. The Process of Asking Personalized fund-raising strategies are the most effective, so focus your efforts on: • Face-to-face solicitation • Personal phone call • Personal letter

18. Ten Characteristics of a Good Ask • Introduce yourself and your position (Smile!) • Describe what you’re raising money to do (describe effectiveness of your program, describe budget) • Show your enthusiasm • Ask for a specific amount (“Will you please help with $2,000?” or “Do you think you could consider $3,000?” or “I’m hoping you can give a gift in the range of $500 to $1,000.” • Say why you need the money now (not 6 months or a year from now) • Stop talking….. smile…… and wait for the person to say “yes!” • Be brief and listen to their interests and questions (remind them that you have given money and/or volunteer your time for Faith in Action) • Be prepared with materials and your data (but don’t overwhelm them with too much printed info) • Thank the person for their time, their gift, etc. while there in person • Send a thank-you note immediately….. and ask again! Try to get donor to double his/her gift each year. Fund Raising Success

19. How Not to Ask for MoneyThe Most Common Mistakes • Not asking! • Not asking family and friends • Being dishonest • Beating around the bush • Not knowing the financial side of your program • Calling yourself out after only 2 strikes • Begging, apologizing or demanding. You are not begging, but asking for a partnership! Remember: Fund raising is about building relationships! Presentation adapted from the works of Joan Flanagan, Kim Klein and the Grassroots Institute for Fundraising Training