1. Anatomy of a Comprehensive Library Fundraising Program American Library Association Annual Conference June 25, 2011 10:30am - 12:00pm

2. What is Fundraising? Fundraising is about opportunities! Opportunity to educate others about your organization Opportunity to establish relationships that will benefit your organization into the future Opportunity to cultivate existing relationships into more beneficial ones Opportunity to bring needed resources into your organization 2

3. Overview The Philanthropic Environment The Foundation of Fund Development The Development Plan Case Prospectus / Case for Support Engagement and Solicitation 3

4. 4 The Philanthropic Environment

5. Fundraising in the USA Who are the largest donors (individuals, corporations, foundations)? What type of organizations receive the bulk of donations? 5

6. Giving USA 2009: CONTRIBUTIONS BY SOURCE

7. 7 The Foundation of Fund Development

8. Laying the Foundation for Fund Development A Case for Support which communicates, in a compelling and inspiring way, the organization's services and benefits deserving donor support. A long-term strategic plan which links the multi-year fundraising needs without current and future program needs. Volunteer leadership that actively participates in the organization’s governance and implements fundraising strategies. 8 Organizations with well-run Development Programs typically have:

9. Laying the Foundation for Fund Development ◦ Highly personal cultivation and solicitation activities targeted to selected donors with the capacity to give larger gifts. ◦ Systematic and targeted cultivation and communications activities that deepen current donors’ interest in the organization and inform new constituencies of its contributions to the community-at-large. ◦ Well-organized donor records and systems which easily retrieve individual and aggregate donor information to support volunteer leadership in their solicitation efforts. 9

10. 10 The Library Development Plan

11. Who does Library Fundraising? Friends Group ◦ Book sales ◦ Membership ◦ Fundraising Events ◦ Volunteer-driven Foundation ◦ Higher level fundraising from individuals, foundations and corporations ◦ Paid staff

12. Who else does Library Fundraising? Staff of the Library ◦ If no non-profit structure in place ◦ Less effective Library Trustees ◦ Not recruited for this purpose ◦ Not perceived as “government employees”

13. Key Principles in Successful Fundraising Create a 501 (c) (3) organization distinct from the Library. Centralize major fundraising efforts in one organization. Recruit the most influential board members. Focus fundraising activities on individuals. Don’t settle for “just a membership.” The more personalized the solicitation, the greater the gift.

14. Effective Planning: The Basis For Success Contributors tend to fund the future, not the past. People tend to be emotional givers who look for rational reasons to support their emotional responses. Decisions are driven by values and benefits. Primary, secondary and tertiary constituents have a right to influence plans and programs. Prospects will more likely contribute if the institution reflects their values and desires. Institutional needs should be stated in terms that demonstrate a capacity to solve problems that are important to the donors. 14

15. 15 Cultivation * Participation * Commitment Planned Gifts Capital Donor Special Gifts Donor Renewed Donor Newly Acquired Donor The Universe Planned Gift Programs Capital Campaigns Annual Fund Programs PROGRAMS: Upward mobility through information, education, involvement Personal Solicitation Telephone Solicitation Mass Solicitation Special Events Personalized Mass Mail TECHNIQUES: Upward mobility through increasingly sophisticated techniques The Donor Pyramid

16. The Annual Fund is the Cornerstone What is the Annual Fund? Why is it critical to Fundraising? Differences between Annual Fund and Membership Keys to a Successful Annual Fund ◦ Compelling one-page letter ◦ Includes a response piece ◦ First Class postage ◦ Individualized solicitation

17. Corporate and Foundation Grant Proposals Corporate Sponsorship ◦ Typically funded by corporate marketing dollars ◦ Corporate identity and recognition - critically important ◦ Media Sponsors will attract corporate sponsors ◦ Decisions on corporate naming – keep it local

18. Special Events Book Sales Author Programs and Dinners Golf Events Silent Auctions

19. Special Event Fundraising – Keys to Success Special Events raise visibility but do not always generate a profit. Successful events require large volunteer commitment. Cost/benefit – manage donor concern Media and corporate sponsors are required. Consider hiring outside contractors to coordinate.

20. Sources of Private Support Library Board of Trustees Key Staff and Friends’ members Library Users Local Businesses / Corporate Sponsorships Government Grants Foundations ◦ Small Family Foundations ◦ Corporate Foundations ◦ Community Foundations

21. 21 Your Constellation of Relationships Special Event Attendees Unassigned Major Donors Board Members Board Assigned Major Donors Special Event Board Special Event Attendees Active Participants in Programs Board/ Friends Board Members Mission Current Donors Supporters of Libraries

22. Board Members: Your Greatest Asset Selection Criteria ◦ Interested and enthusiastic about Libraries ◦ Influence and affluence ◦ Skills in fundraising, advocacy, PR and/or programming ◦ Ethnic, racial, geographic and age diversity, as well as gender equity

23. Board Members: “Job Description” Expectations of Board Members ◦ Meeting attendance ◦ Committee involvement ◦ Personal financial contribution ◦ Provide other contacts for fundraising ◦ Spokesperson Recruitment Orientation

24. Friends and Foundations are not always “Friends” Conflicts can easily arise ◦ “We were here first” ◦ Sharing of databases ◦ Recruitment of Board Members ◦ Competition for Library Directors’ time Ways to minimize conflicts ◦ Involve Friends in the creation of Foundation ◦ Develop policy on use of Friends’ membership list ◦ Ex-officio involvement ◦ Some joint meetings ◦ Reference each other in written communications

25. What would be the characteristics of your most likely donors? Why would they give to you over others? 25

26. 26 Telling Your Story

27. Case Statement: Focus Unrestricted operating support Restricted gifts for operations Restricted gifts for special needs Source: NSFRE Survey Course on Fundraising 27

28. Purpose of the Case Statement State the case for the institution’s aims, purpose, and mission in general. Present the case for current programs. Show how new programs will enrich and benefit the lives of many. Dramatically depict the institution’s impact on the community economically, socially, artistically, spiritually, and/or historically--for today and tomorrow. Source: NSFRE Survey Course on Fundraising 28

29. 29 Case for Support: Content Cause Mission Budget Organizational needs Goals Objectives Organization’s financial history Future plans Key strategies and tasks Competence of the staff to support programs

30. Library Services Appropriate for Private Funding Determine what you will not fund. Library services favorable to private donors ◦ Collections ◦ Outreach ◦ Children’s Programming ◦ Adult Cultural Programming ◦ Technology / Innovation ◦ Building Campaigns

31. 31 What can you educate your constituents about? With whom can you establish relationships? strengthen existing relationships? What are potential cultivation opportunities?

32. Ten Reasons Why People Give 1. Belief in the institution and its purposes 2. Belief that current needs are important 3. Sense of loyalty, gratitude, affection 4. Tax considerations 5. Friendship and respect for solicitor 32

33. Ten Reasons Why People Give 6. Honoring the past 7. Funding the future 8. Involvement with peers 9. Recognition 10. Identification 33

34. 34 The # 1 Reason People Give… They Were Asked!

35. 35 Engagement Continuum  MONEYMONEY TIME Identify Invite Inform Interest DONOR I N S P I R E D Involve Invest

36. 36 IT’S ALL ABOUT ME!!!

37. 37 The ASK Select the right person to ask the right person at the right time for the right amount in the right way for the right reason.

38. Solicitation Strategy Peer-to-peer solicitation is the most effective means of fundraising. The prospect is a potential investor. There are many ways to make a gift. Think about your own giving experience. The best “getter” is a giver. 38

39. 13 Most Common Fundraising Mistakes 1. Doing everything but asking. 2.Thinking that fundraising is for fundraisers only. 3.Plunging in with one foot: ◦ Clear institutional statement of purpose ◦ Top level support – Trustees, Advisors, etc. 4.Disregarding prospect research and recordkeeping. 5.Forgetting to concentrate on individual donors. 6.Overlooking past donors. 7.Putting too much faith and money into brochures. 39

40. 13 Most Common Fundraising Mistakes 8.Failing to guide and cultivate volunteers. 9.Promising the world by Friday at the latest. 10.Refusing to recognize factors beyond your control. 11.Ignoring sophisticated tax savings incentives. 12.Keeping too many secrets. 13.Looking upon your work as a job rather than a cause. Source: The Thirteen Most Common Fund-Raising Mistakes by Paul H. Schneiter and Donald T. Nelson 40

41. 41 “Passion raises more money than technique”

42. Questions and Comments? Falona Joy, CFRE President and CEO SNP Strategies fjoy@snpstrategies.com www.snpstrategies.com Peter D. Pearson President The Friends of the St. Paul Public Library peterp@thefriends.org www.thefriends.org peterp@thefriends.org www.thefriends.org

43. Other Resources Libraries are from Venus, Fundraising is from Mars. Library Administration Management Journal, vol. 20 no. 1, Winter 2006. By Peter Pearson. “Library Friends and Foundations: Time for a Merged Model” White Paper by Peter Pearson. Raising Funds with Friends Groups. Neal-Schuman, 2004. By Mark Herring. Even More Great Ideas for Libraries and Friends. Neal- Schuman, 2008. By Sally Gardner Reed and Beth Nawalinski.

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