1. Meeting #4 – Designing an effective fundraising model
O&D, Chapter 10 (Lindahl):
The Fundraising Process
Chapter emphasizes research on process, prospects, etc.
Also, fully understanding one’s own organization, so its goals, etc. can be explained to potential donors
Lindahl, Page 119 – goal-setting
Facilities, Endowment and Operating
Some donors may be much more responsive to one type of donation (e.g. some may only give to facilities improvement)
Steps:
Cultivation
Fairfield example
Solicitation

2. Types of solicitations:
Planned giving
Major gift solicitations
Role of Stewardship:
Possible alternative goals of managers
Self-interest, social status
Good stewardship requires goals of nonprofit are paramount
Lindahl (page 124) note that a ex post evaluation of how well the fundraising worked is critical

3. O&D, Chapter 11 (Pratt) – Analyzing the Dynamics of Funding
Key focus of chapter is on the reliability of fund-raising and the degree to which the funding binds the hand of the nonprofit
Reliability:
High: Individual donors, endowments, memberships, rental income, advertising
Medium: fees for services, continuing government contracts, corporate charitable contributions
Low: Government grants that are project-driven, foundation grants, corporate sponsorships

4. Autonomy:
High: small- to medium-sized individual contributions, foundations, fees for service, endowments, memberships
Medium: large individual contributions, corporate contributions
Low: project grants, government contracts, United Way support
Pages – Eight forms of funding and resulting reliability and autonomy
Discussion – particularly the issue of government-funded nonprofits

5. Giving Circles and “crowdfunding”
What happens when charity becomes a social act?
Chapter12 focuses on giving circles:
Groups that pool resources to leverage donations
Eikenberry notes that these groups are educational in nature, and that giving becomes part a member’s social life
Giving can be more informed and members can find new ways to engage with issues they are interested in
Forms:
Page 136 – Organizational form
Most operate on a “fee” basis (which funds donations)
Large donation groups typically have a more formalized grant-making procedure
Some are formal groups that meet, some are loose networks

6. Eikenberry Provide 2 case studies
Shared Giving: Small (16 members) group that focuses on leveraging individual donations
Started by couple that realized they were giving away a lot of money, but randomly and in small amounts
Decided to increase the impact of giving by organizing and targeting contributions
Womenade: 38 giving circles under this name. Join for a small fee ($35) – Money used to provide small donations to women (families) experiencing financial stress
Such as paying an over-due utility bill

7. Benefits of giving circles
Charity as a way of life
Giving is consistent and targeted
More informed!
Social aspect encourages participation
List of Giving Circles can be found at:

8. Crowdfunding
Means by which to draw in many donors at a very small price per donor.
Cause and monetary goal posted on the web
Rely upon social contacts to encourage participation
Top ten sites can be found at:
Example: Kickstarter – seeks individual donations to fund creative work that otherwise would not be funded (e.g. cinema)

9. Crowdfunding also used to fund medical treatment for those with serious long-term illnesses who are in financial stress
Avoids costs of approaching donors, but visibility is an issue

10. Literature for Next Time
9. Heutel, Garth (2014). “Crowding Out and Crowding In of Private Donations and Government Grants,” Public Finance Review 42,
10. Brokaw, L. (2012, November 28). “The ‘Benefit Corporation’ Movement,” MIT Sloan Management Review. Retrieved from

11. Class Exercise Donation effectiveness Design a website that:
Promotes Cause
Will be easily found by those searching
Details finances of nonprofit
Provides searchable statistics (why?)
Stories of assistance
Mission statement
History
Media resources
Major Donors (why might you want to omit this?)