310 likes | 409 Views
FUND RAISING LeAp Board of Directors. Bonnie Osinski April 4, 2014. Objectives. We will have a shared understanding of some basic fundraising principles, especially those that relate to the LeAp board. We will have a common framework or language in which to address fund raising challenges
E N D
FUND RAISING LeAp Board of Directors Bonnie Osinski April 4, 2014
Objectives We will have a shared understanding of some basic fundraising principles, especially those that relate to the LeAp board. We will have a common framework or language in which to address fund raising challenges We will identify areas for building board fundraising skills Each board member will leave with at least on doable fundraising task for us to review at the next meeting or solicitation role play
Basics • In 2012, private contributions totaled $316.23 billion • Foundations - 15% • Corporations – 6% • Bequests – 7% • Individuals – 72%
The Circles The following slide was used to generate discussion at the meeting. I have added several slides, titled “The Circles” to explain some of the concepts represented by the concentric circles model.
The Circles • The stronger the central core; the stronger and more effective are the organization’s outreach and fundraising activities • All fundraising activities should be managed so they strengthen the core • The stronger the core; the stronger the message you can send – think of a radio signal going out from the center Support Center 6/27/11 Bonnie Osinski
The Circles • The farther away from the core; the more expensive it is to raise funds • The most efficient, cost-effective way to raise the largest gift is one person asking a peer in person.
The Circles • Money alone doesn’t get a funder into the core; those in the core must have the capacity to reach out to others. • Government doesn’t make it no matter how much it provides • Foundations and corporations are closer in because they can help with outreach • The actual distribution of funding organizations and individuals across the circles will be different for each organnization
The Circles • Public relations is directed at the outer core and the costs should not be factored into direct fundraising expenses or calculations of return on investment • Without good public relations and overall agency communications; the fundraiser has to spend more time working in the outer, more expensive rings
Individuals • The most reliable, cost effective source of funds • Validate your reason for existence • Advocates for your cause • Volunteer assistance • Potential leaders • Can leverage other support • Your power base
THE BOARD HAS TO RAISE MONEY!!! SO GET OUT THERE AND START ASKING PEOPLE FOR MONEY Too Scary
The “Ask” • Actually a small part of an ongoing process • Know the donor well • Should never be considered a one time event • Specific dollar amount • Solicitors should be well trained and prepared • The major gift prospect should not be surprised by the reason for your visit
FUND RAISING MYTHS • Tax deductibility is a prime motivator • Foundations and corporations give the most money • People will give because yours is a good cause • It’s all common sense • We should be careful not to bother donors too much • All we need to know is how wealthy a prospect is • Philanthropy is decreasing • We should back off when the economy is weak • We can’t raise money without outstanding brochures, videos and other materials.
What is fund raising? • The raising of assets and resources from various sources for the support of an organization or a specific project. • Association of Fundraising Professionals • The planned promotion of understanding, participation, and support • Harold J. Seymour • The gentle art of teaching the joy of giving • Henry Rosso
It’s not about the money • The money is a means to an end • Fund raising is not a financial transaction • The donor is not a cash machine • It’s about relationships
L I A Linkage Interest Ability A prospect must have all three
Linkage Interest Ability • We need to write to Bill Gates. • Let’s review the Forbes 500 • My neighbors have two children in public school • My friend is a graduate student at Teacher’s College • Scientists should be interested in our programs • My brother-in-law owes me • I know the CEO of a big corporation
Why donors give • They care about the cause • They can make a difference • They feel financially secure • They trust that the organization will use their contributions efficiently • They are solicited by someone they know and trust
Why donors stop giving • Over solicitation • No information about how the gift was used • Little or no communication outside of solicitations • Household circumstances changed • Priorities shifted to other causes • Organization changed leadership or activities • Try asking them why
Donor centered fundraising Your organization is the means by which donors and volunteers live out their philanthropic interests and aspirations -Simone Joyoux Goal: A mutually beneficial relationship • The key is to discover what the donor is seeking • You find that out by building the relationship
Getting a good start The difference between acquiring a donation and acquiring a donor How do we define success? Emphasis on connecting with those who care about your cause
Start where you are • Board - staff - neighbors – beneficiaries – former clients – alumni – etc. • Ease the burden of soliciting your friends by turning them over to another board member after the initial contact • Who cares about you? Who is interested in your work? Who benefits? • Research reinforces and informs, but is not a good place to start with people you don’t know.
Getting closer • Donors who care and become involved are likely to work on your behalf • Those who care and work on your behalf are likely to become donors
Cultivation events • Targeted invitation list • Advance planning by board and staff • Compelling presentation about your work • Educational seminar on your area of expertise • Many staff, board, supporters on hand to give attendees individual attention • Keep track of what you learn from attendees • Follow up calls within a week
Individual Meetings • Board member, CEO, program staff • On site • Invite to in-house event or class • One-on-one lunch • Ask their advice
Direct solicitation • The result of cultivation over time • Donors start by making smaller gifts and build a stronger relationship • Choice of solicitor is key • Peer-to-peer is best for top level gifts; • Who does the asking depends on what you have learned about the donor
Keep your donors The first gift is the most expensive in terms of time and money It costs up to 10 times more to reach a new donor than to successfully communicate with a current donor Direct marketing by itself is ineffective as a retention strategy
Keeping your donors Major donors should get ongoing individual attention Provide donors with many different ways to become involved with your organization Learn all you can about your donors’ interests and the way they want to relate to you A database that can manage the information we get from as many sources as possible is essential.
Some key concepts DO DONT • Value the relationship for its own sake • Consider individual philanthropy as an ongoing process that can involve different means of fundraising • Learn as much as you can about the donors needs LISTEN! • Communicate only when you are asking for money • Try to bring a donor around to your way of thinking • Get so caught up in techniques that the individual donor gets lost
Possible board tasks • Select at least two; current donors, prospects, a friend who does not know LeAp, an artist who works with LeAp, and artist who doesn’t work with LeAp, someone you think should be interested, a corporate executive, a fellow employee, one of Ila or Alice’s long time donor friends, others for: • Meeting • Advice • Impressions about LeAp • Interest in learning more • Interest in becoming more involved • Referral to someone else who may be interested • Why/why not
Suggestions • More contact / follow-up with existing donors • Database for donor records • Intern to manage donor database • Better use of email and social media • Video / sound clip • Manageable tasks for board members that do not involve asking • Calling donors / cultivate relationships • Professional fundraiser (part-time )? • Senior, experienced, professional • Robin Hood as possible funding source for fundraising start-up? • Add this in the long-term strategic plan • Monthly email – content for board members to forward to friends Keep growing this list