Transcript Fundraising 101 - BC Council for International Cooperation

Fundraising 101
Presented by:
Erin Morantz, CFRE, KCI Ketchum Canada Inc.- Consultant
Heather Wardle, Seva Canada - Director of Development
Agenda
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Understanding the language
Understanding the fundraising environment
Understanding the donor
Understanding fundraising programs
Understanding the development process
Understanding the role of volunteers
Understanding the role of information management
Understanding the role stewardship and
recognition
– Glimpse at how the current economic downturn is
affecting philanthropy
Fundraising Buzz Words
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Acquisition
Annual Giving
Bequest
Capital Campaign
Case statement
Cultivation
Direct Mail
Donor
Donor Acquisition
Donor Pyramid
Donor Retention
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Endowment
Gift In Kind
Major Gifts
Moves Management
Planned Giving
Prospect / Qualified
Prospect
Recognition
Renewal
Solicitation
Stewardship
Volunteer
Philanthropy in Canada
• Over 80,000 charities in Canada
• 6.8% gross domestic product
• 12% of Canadians employed in the
charitable sector
• Revenues total $112 billion per year
• 78% of individuals 15 years and older
donate money to charity
Wide Distribution
Distribution of Charities
Other
2%
Education &
Research
5%
Education
16%
Religion
41%
Health
7%
Culture &
Other
Recreation
4%
3%
Volunteerism
8%
Social
Service
10%
Community
Benefit
15%
Social Welfare
19%
Distribution of Support
from Individual Canadians
Health
20%
Religion
50%
The statistics tell us…
– Individual giving will be the cornerstone of
successful development programs with
major gifts leading the way
– Donors are more sophisticated and want
“impact” and involvement
Who or what is a donor?
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Individuals & Families
Corporations / Businesses
Employee Groups
Foundations
Government
Associations/Clubs
Why do people give?
 to demonstrate power
 belief in the mission
 tax and financial planning
considerations
 immortality
 gain influence,
professional advancement
 peer approval
 ego gratification/self
esteem
 recognition from peers
 identify with a worthy
cause of goal
 sincere desire to help/care
 diminish negative
feelings, guilt, fear, anger
 express deep emotion grief (memorial) or Joy
(commemorative)
 give something back
 for the joy of it.
Why do people give?
BECAUSE
THEY
ARE
ASKED!!!!!!
What are Donors Looking for?
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Positive image
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Vision, uniqueness, urgency
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Impact on community / society
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Strong strategic planning / financial management
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Prioritized needs
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Clear description and outcomes of the project(s) to be
funded
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“Fit” with the donor
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Sense of permanence
Donor Bill of Rights
• Information about mission, use of donated resources and organizational
leadership
• Access to financial statements.
• Assurance that gifts will be used as intended
• Receive appropriate acknowledgement and recognition.
• Assurance that gifts handled with respect and with confidentiality
• Expect all relationships with organization be professional in nature.
• To know if those seeking donations are volunteers, employees of the
organization or hired solicitors.
• To remove their name from mailing lists
• Freedom to ask questions.
Fund Raising
Pyramid
Bequests
Major gifts
Annual Gifts
Special Events or Fundraisers
Donor Pyramids
Annual Gifts
• Made from a donor’s cash flow
• Do not require financial planning
• Support the ongoing needs of an
organization – they are the
sustaining gifts
• Many gifts at lower levels are sought
“Ladder of Effectiveness”
• 1. Personal visit by a team
• 2. Personal visit by one person
• 3. Solicitation by personal letter with
a follow-up phone call
• 4. Solicitation by personal letter
• 5. Group direct mail
Major Gifts
• Generally require thought or planning on
the part of a donor
• Fewer solicitations for larger gift amounts
• Generally, the gifts support an
organization’s long-term goals
• Donors can be individuals, corporations
or foundations
• The key is that someone must ask for a
significant gift face to face
Corporate Giving
• Corporations often have established
giving criteria by which they judge
programs and organizations seeking
support
• They are not generally annual donors.
Instead, they provide major gifts for
programs and capital
• The face of corporate giving in Canada is
changing in a number of ways
Corporations Looking Beyond
Dollars
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Strategic partnerships
Longer timelines
Greater scrutiny, higher expectations
Need to manage competition and
increase in requests
• Their context: spotlight on corporate
governance, continued increase in
competition, globalization
Planned Giving
• Includes gifts of shares, wills and
bequests, life insurance, etc…
• Usually, only the most sophisticated
organizations will have an organized
planned giving program
• However, it never hurts to make
donors aware of the options for
giving available to them.
The Donor Development Process
ESTATE
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PLANNED
GIVING
Bequests / Legacies
Planned Gifts
Investment
Involvement
MAJOR GIVING
Endowment Campaigns
Capital and Special Campaigns
Interest
Major Gifts from Individuals,
Corporations and Foundations
ANNUAL GIVING
Special Events
Annual Appeal, Direct Mail, Telemarketing
Small Gifts from the Public-at-Large
Information
Identification
Donor Development Cycle
No Inte re s t
No
Initial
Contact Contact
IDENTIFICATION
(pros pe cting phas e )
Inte re s t
CULTIVATION
(pre -gift phas e )
Additional
gift inte re s t
Continuing
involve m e nt
Incre as ing e ngage m e nt
& involve m e nt
Dis cus s
gift
The As k
SOLICITATION
(gift phas e )
STEWARDSHIP
(Pos t-gift Phas e )
Ye s ,
gift
Ack now le dge m e nt m ade
The de cis ion
No inte re s t
No,
but
inte re s te d
The Constituency Circle
Board
PAC
Staff
Students
Donors
Employers,
suppliers,
successful alumni
People or organizations
with similar interests
Why do people volunteer?
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Altruism
Desire to make a difference
Desire for status
Employer encouraged employee
Desire to develop skills and expertise
Desire to build personal relationships
Because they were asked
Primary function of Volunteers
• Governance
– i.e. serving on a board of directors
– Set policy, establish direction, hire/fire CEO, ensure
fiscal integrity and financial health
• Program
– i.e. being a Big Sister or Big Brother
– Helping to organize a fundraising event
• Development
– i.e. fundraising (i.e. face to face solicitation)
Staff obligation to volunteers
• Empower
• Lead while appearing to follow
• Provide opportunities for meaningful volunteer
work
• Disclose appropriate information to enable them
in their volunteer duties
• Provide orientation and training
• Provide job descriptions
• Conduct performance evaluations/give effective
feedback
• Provide appropriate and frequent recognition
Information Needed
• Biographical:
– Individuals: name, address, contact #’s, spouse,
employer
– Organization: name, address, contact #’s, contact
names, email address
• Relationship to charity
– Giving history, alumni status, volunteer involvement
• LAI / Prospect Info
– Link to the organization, giving ability, areas of interest,
cultivation status
• Cultivation & Solicitation Activity
– Record of donor contact (call reports, briefing notes,
action tracking, proposals submitted)
– Recognition & stewardship provided
How is Donor/Prospect
Information Used?
• To identify potential donors along with their LAI
(Link, Ability, Interest)
• To track gifts for receipting and recognition
purposes
• To track giving patterns in order to determine
RFA (recency, frequency, amount)
• To track and coordinate “moves” with the
prospect/donor
How is Donor/Prospect
Information Collected?
• Personal contacts
• Participation records (giving history, volunteer
history, past contact between donor and charity)
• Public information (internet, newspapers,
research sites, business journals, directories)
Ethics & Confidentiality
• FOIPP (Freedom of information; protection of
privacy)
• APRA Code of Ethics: Confidentiality, accuracy,
relevance, accountability, honesty
• Donor Bill of Rights
• Code of Ethical Fundraising Practices
Difference between Stewardship
& Recognition
• Stewardship is the process of ensuring the
donor’s gift is used as intended and that the use,
impact and results of their gift are communicated
back to the donor, thereby gaining their
confidence
• Recognition is one element of effective donor
stewardship. Recognition can be used to honour
a gift (annual) or the relationship (cumulative) or
both.
Recognition Methods
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Naming opportunities
Donor walls
Donor thank you events
Plaques/mementos
Thank you letters & phone calls
Meetings with senior leadership
Stewardship Methods
• Stewardship reports
• Newsletters
• Meeting with key constituents involved in the
funded area.
• Invitation to events pertaining to the funded area
(i.e. ground breakings, awards ceremonies).
• Tours
The key to good stewardship is communication.
Helpful resources
• Henry A. Rosso, Achieving Excellence in
Fundraising – the Bible of fundraising
• http://www.afpvancouver.org/ Association
of Fundraising Professionals
• http://www.cagpacpdp.org/en/default.aspx Canadian
Association of Gift Planners
• http://www.malwarwick.com/learningresources/ fundraising articles by Mal
Warwick
More helpful links
• http://www.blackbaud.com/company/
resources/giftrange/giftcalc.aspx An
online gift range chart calculator
• http://www.kciphilanthropy.com/
Ketchum Canada Inc. and
publishers of Philanthropic Trends
More helpful links
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www.charityvillage.com
www.givingandvoluntering.ca
www.globalphilanthropy.ca
http://www.sofii.org/ A showcase for
fundraising
• http://www.networkforgood.org/ Lots
of resources and tips on online
fundraising