1. Chapter 7: Generating Funds Part 2 Meg Giddings

2. 3 Types of Individual Fundraising A) Annual Giving: campaigns run each year soliciting past and new donors B) Major Giving: donations that are earmarked for a identified purpose from a specific donor C) Planned Giving: donations received by the nonprofit following a donor’s death

3. A) Annual Giving Campaigns 11 Components of a Successful Annual Campaign 1.Solid volunteer campaign leaders and support from agency staff 2.Organization 3.Appropriate yet challenging goals 4. Different approaches for donors of different levels of giving 5. Preparation and Planning 6. Comprehensive training for volunteers 7. Well-defined time-table and schedule 8. Regular reports, checks and balances 9. Ability to donate online 10. Method of recognizing volunteers and donors 11. Solicitation of lifetime donors Source: Andreasen & Kotler, 2003, p. 203

4. 1) Volunteer Leadership and Staff Support Volunteers The organizers and leaders of the campaign Generally board members High profile position Requires significant dedication to the task Staff Responsible for provide statistics and other information needed by volunteers Provide methods for monitoring progress of campaign and volunteers

5. 2) Organization Created multiple approaches to fundraising – should be orderly and rational Approach potential donors via: Phones Postal Service Face to Face Contacts Fundraisers Internet contacts (e.g. email, agency website) (Source: Andreasen & Kotler, 2003)

6. 3) Set Appropriate Yet Reasonable Campaign Goals Establish total campaign goal and progress goals (e.g. quarterly goals, monthly goals) Characteristics of effective goals: Realistic Motivate campaign workers Unambiguous and well-defined Allow progress monitoring by volunteers Clearly assign responsibilities to volunteers involved (Source: Andreasen & Kotler, 2003, p. 204)

7. 4) Donors at Different Levels Should be Approached Differently Differentiate donors by: 1) How much effort and solicitation should be applied to the donor Based on potential donor’s ability to give 2) Type of approach used to solicit donations Smaller donors may be approached in less personal ways (i.e., group mailings) than large donors (i.e., personal visits)

8. 5) Preparation and Planning Research on donors and collection of donor lists are critical – know potential donors Consideration of donor lists should be intensive and detailed Establishes a path for the campaign Allows for planning and projection for the entire campaign

9. 6) Utilize Comprehensive Training Train campaign workers to educate donors about the nonprofit, but also focus on how giving to the nonprofit will positively benefit the donor Volunteers should be aware of cutoff dates and should have enough information to monitor progress during the campaign Should be aware of short-term goals and be prepared to provide progress data 7) Set a well-defined schedule and time-table

10. 8) Regular reporting, checks & balances Related to a structured schedule. Volunteers should regularly report in on progress made and should be accountable for recording donations and pledges received. This allows the nonprofit to monitor progress and reevaluate approaches or reevaluate progress. Internet provides a multimedia approach through pictures and text Allows donors to seek out the nonprofit May allow donors to see where their money is going in a practical sense Will continue to increase in the future 9) Donors should be able to donate online

11. 10) Should have a method of recognizing donors and volunteers Should be done following the campaign Thank you letters and acknowledgements should be sent promptly following a donation Acknowledgment of donors at different levels is beneficial Honor donors with invitations to organizational events Involve the donors in determining how their gift is used For volunteers, recognition through a thank you gift, letter, or other honor is important as well to develop volunteer loyalty to your organization.

12. 11) Lifetime Donors 60% of donors give to one organization only (Andreasen & Kotler, 2003) Lifetime Value (LTV) of a donor is the present value of future donations – should be calculated and evaluated to determine the most appropriate method of approaching a particular donor High LTV means more resources for recruitment should be utilized

13. B) Major Giving Donations are purpose specific Provide approximately 80% of donations and only require approximately 20% of the effort required for an annual campaign (Andreasen & Kotler, 2003, p. 208) Costs and benefits to the organization as well as costs and benefits to the donor should be considered

14. Steps in Major Giving 1. Identify potential donors 2. Research potential donors to ensure they have the ability to make a sizable contribution 3. Evaluate possible methods of approaching these potential donors 4. Select the most appropriate volunteers to approach these donors personally 5. Volunteers make the pitch to potential donors 6. Recognize the donor in an appropriate manner – depending on the preferences of the donor as many wish to remain anonymous (Source: Andreasen & Kotler, 2003)

15. Approaches to Major Giving Hosting events such as auctions, social events such as dinners, promotional nights, dances, etc. bring in big donors and allow solicitation in a social environment Volunteers should present in their solicitation: Donor’s expense of giving Organizational benefits of the gift Benefit to the donor Select one method across the board for approaching donor: never mention an amount, suggest amounts that are high or low

16. C) Planned Giving Types of Planned Giving: 1. Donations given through wills on a person’s death 2. Charitable Remainder Trusts 3. Pooled Income Fund 4. Charitable Gift Annuity 5. Charitable Lead Trust 6. Life Estate Agreement (Source: Andreasen & Kotler, 2003)

17. Nonprofit Revenues Nonprofit revenues have increased from 63.4% in 1982 to 71.3% in 1993 (Andreasen & Kotler, 2003, p. 212). The growth is a result of: 1) Nonprofits marketing effectively 2) Nonprofit’s selling retail products 3) Marketing focusing on the private sector

18. Source Andreasen, A. R. & Kotler, P. (2003). Strategic Marketing for Nonprofit Organizations. Prentice-Hall. New Jersey.