Focused FundraisingUPD - PAVRO Focused... · 6/30/2017 3 The key to raising money is control, which is, in turn, the summation of all management techniques within a particular organization

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Cynthia J. Armour, CFREwww.elderstone.ca

[email protected]

705-799-0636

© Please request permission prior to distributing handout beyond today’s presentation

© Cynthia J. Armour, CFRE www.elderstone.ca - 705-799-0636 2

� Share current fundraising methods – the good, the bad and the ugly of lessons learned

� Strategize your approach, based on proven results and cost per dollar raised

� Inspire staff and volunteer team members to overcome fundraising fears and be strategic

� Identify sources of information to inform your fundraising decisions

© Cynthia J. Armour, CFRE www.elderstone.ca - 705-799-0636 3 © Cynthia J. Armour, CFRE - [email protected] - 705-799-0636 4

© Cynthia J. Armour, CFRE - [email protected] - 705-799-0636 5 © Cynthia J. Armour, CFRE www.elderstone.ca - 705-799-0636 6

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While not the most fruitful strategy at the top of this list it’s typical for charities to move through these methods as they mature:

� Special events or thing-a-thons� Sales of chocolates or other items people don’t need� Gaming – raffles/lotteries/bingos� Grant writing� Direct mail (letters)

� Sponsorships� Major gifts 80% of support comes from � Planned gifts 20% of your donors/individuals

Where is your energy going?


� A process

� Strategic/proactive

� Goal-oriented

� Measurable steps

� Evaluates progress

� Invites investment

� Cultivates relationships

� Predictable revenues

� Proven methods and sources

� An activity

� Panic reaction/crisis

� Limited objectives

� No plan or measures

� No lessons learned

� Temporary solutions

� No target audience

� Financial issues recur

� Unwritten assumptions


� Direct mail acquisition $1.25 to $1.50 per $1.00 raised

� Benefit/Special eventsBenefit/Special eventsBenefit/Special eventsBenefit/Special events $0.50 per $1.00 raised $0.50 per $1.00 raised $0.50 per $1.00 raised $0.50 per $1.00 raised (gross to net)(gross to net)(gross to net)(gross to net)

� Membership associations $0.20 to $0.30 per $1.00 raised

� Donor clubs $0.20 to $0.30 per $1.00 raised

� Planned Giving $0.20 to $0.30 per $1.00 raised

� Direct mail renewal $0.20 to $0.25 per $1.00 raised

� Corporations $0.20 per $1.00 raised

� Foundations $0.20 per $1.00 raised

� VolunteerVolunteerVolunteerVolunteer----led solicitationsled solicitationsled solicitationsled solicitations $0.10 to $0.20 per $1.00 raised$0.10 to $0.20 per $1.00 raised$0.10 to $0.20 per $1.00 raised$0.10 to $0.20 per $1.00 raised

� Special projects $0.10 to $0.20 per $1.00 raised

� Capital campaigns $0.10 to $0.20 per $1.00 raised

© Cynthia J. Armour, CFRE - [email protected] - 705-799-0636 9

� Effective fund development depends on strong relationship-building with board, volunteer and staff teamwork

�

84-88% of donations come from individuals� 4-6% of donations come from business� 7-11% of donations come from foundations

� 80% - 90% of individual gifts come from 10% - 20% of the donors

� Focus precious time and energy on major gift potential - people give to people they know and trust!

10© Cynthia J. Armour, CFRE - [email protected] - 705-799-0636


Work smarter

not harder...

be strategic!

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� The key to raising money is control, which is, in turn, the summation of all management techniques within a particular organization.

� Control stems from comprehensive long range planning, which integrates every aspect of the charitable organization into a master blueprint whose objectives are all synchronized: a strategic organizational marketing plan.

� Beverly R. Hoffman


� Board led◦ 100% support◦ Understands costs◦ Partners with staff

� Ethical◦ Above legal requirements

� Strategic◦ Board sets direction◦ Goal-oriented◦ Cost effective

� Integrated into organizational culture

� Donor-focussed◦ Answers WIIFT◦ Cultivates and Stewards

� Personal◦ Relationship-based◦ Shared values

� Asks directly for support◦ represents only 5% of the development process!


� LLLLeadership (Visionary, strategic, inclusive, decisive, inspirational, motivational and accountable)

� + AAAAdaptability (transcends challenges, based on facts, ongoing evaluation & course adjustment)

� + PPPProgram CCCCapacity (trained staff, volunteers & board together possess the skills necessary to address strategy with adequate facilities to do the job)

� = SSSSUSTAINABILITY – (the capacity to endure!)

© Cynthia J. Armour, CFRE www.elderstone.ca

� Cogs in a wheel

� Everything within your charity (and beyond) is all interdependent

� Silos are counter-productive and inhibita team/holisticperspective and approach


� It takes a village! Team approach is the only option - board, volunteers & staff together “Culture of Philanthropy”

� Fundraising Plan stems from Strategic Plan and subsequent Program Plans (all cogs in the wheel)

� Fundraising Plan taps diversified sources

� Compelling case for support stems from consensus-defined Strategic Directions


� Strong track record of past achievements, resilience and ability to respond to challenges

� Clear financials

� Efficient tracking system

� Donor Relations - stewardship strategy

� Prospect research: L-A-I


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� What suggestions do you have?

� What skills are you looking for?

� Who would feel excited and/or motivated knowing their strengths could help raise funds to sustain and grow your programs?

� WHAT SUPPORT DO THEY NEED TO SUCCEED?WHAT SUPPORT DO THEY NEED TO SUCCEED?WHAT SUPPORT DO THEY NEED TO SUCCEED?WHAT SUPPORT DO THEY NEED TO SUCCEED?


� Identify and celebrate your volunteers’ and staff strengths and aptitudes

� Match personalities according to their assets (e.g.) a shy sleuth might prefer to research a prospective donor (behind the scenes) than ask for a major gift...an outgoing salesperson would probably feel more comfortable “closing a deal” (code for negotiating a major gift) than waste their (perceived) “valuable time” at a labour-intensive event.


� Donor

� Planner

� Matchmaker

� Sleuth

� Connector

� Story teller

� Salesperson

� Town Cryer

� Steward

� Ambassador

� Tracker

� Other roles?


� Commit to and LIVE a Culture of Philanthropy in your organization...define core values and “be the change”

� Map, acknowledge and capitalize on staff, volunteers and board members’ strengths/assets

� Break down components and distribute task list asking “where do you see yourself?”

� Ask directly if they’d like to remain within their comfort level or learn new, marketable skills

� Provide adequate training and support

� Invite feedback for continuous improvement


Cynthia J. Armour, CFRE www.elderstone.ca 23

� Why do people volunteer?

� What motivates those who like fundraising?

� What are the predictable characteristics of the best fundraisers?

Cynthia J. Armour, CFRE www.elderstone.ca 24

� Donors

� Give them a rest in between their fundraising efforts but capitalize on the indispensible training canvassers have received during:◦ Hospital campaigns◦ University development◦ United Way◦ Churches

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� LinkageLinkageLinkageLinkage – start with internal connections who can open doors or make introductions

� AbilityAbilityAbilityAbility – identify prospective volunteers and donors who have significant ‘capacity’ to give time and/or money

� InterestInterestInterestInterest – be sure their interests and values correspond with your mission

25© Cynthia J. Armour, CFRE - [email protected] - 705-799-0636 26

� Studies indicate that finding new donors and dollars is on the decline

� There are fewer new donors

� Retention of first-year and multi-year donors is falling

� Recruiting new donors can cost up to 10 times Recruiting new donors can cost up to 10 times Recruiting new donors can cost up to 10 times Recruiting new donors can cost up to 10 times more than retaining existing ones!more than retaining existing ones!more than retaining existing ones!more than retaining existing ones!

Source: Mutual Appreciation – Advancing Philanthropy – Jan/Feb 2009

© Cynthia J. Armour, CFRE - [email protected] - 705-799-0636

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� 93% would definitely or probably give again

� 64% would give more

� 74% would continue to give indefinitely

� 70% of donors would increase the overall value 70% of donors would increase the overall value 70% of donors would increase the overall value 70% of donors would increase the overall value of their philanthropy if charities were more of their philanthropy if charities were more of their philanthropy if charities were more of their philanthropy if charities were more effective at acknowledging their gifts and effective at acknowledging their gifts and effective at acknowledging their gifts and effective at acknowledging their gifts and communicating resultscommunicating resultscommunicating resultscommunicating results

Source: Donor-Centered Fundraising – Penelope Burk

© Cynthia J. Armour, CFRE - [email protected] - 705-799-0636

� They feel a connection to the organization

� Their peers are giving

� Someone (usually the “right” person) asks them

� They want to make a difference

� They want to share good fortune


� Solicitation is infrequent or poorly communicated

� They don’t see how their gift would make a difference

� They never feel wanted or needed

� They receive no direct, personalized appeal


To succeed in fundraising you must know four things:

1. The mission and goals of the organization

2. The interests of your prospect(s)

3. How to ask for support

4. How to overcome your fears

If you don’t ask, you won’t receive.

The only way to fail is by not trying.


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� Individuals are the best source of unrestricted funds

� Board members or committee volunteers provide credibility to requests for support

� People give to people they know and trust

� People give because they’re asked

� Stewardship is an ongoing commitment

� Charity leaders should evaluate the Return on Investment (ROI) for each FR method


� Patience – it takes 3-5 years to get a solid (strategic) fundraising program off the ground

� Special events distract efforts away from more efficient and cost-effective methods

� There is high fundraising staff turnover – don’t expect miracles, particularly if they lack support

� SPREAD FUND DEVELOPMENT RESPONSIBILITIES SPREAD FUND DEVELOPMENT RESPONSIBILITIES SPREAD FUND DEVELOPMENT RESPONSIBILITIES SPREAD FUND DEVELOPMENT RESPONSIBILITIES ACROSS A BROAD TEAM OF VOLUNTEERS & STAFF!!ACROSS A BROAD TEAM OF VOLUNTEERS & STAFF!!ACROSS A BROAD TEAM OF VOLUNTEERS & STAFF!!ACROSS A BROAD TEAM OF VOLUNTEERS & STAFF!!


� http://www.simonejoyaux.com/downloads/CultureOfPhilanthropy.pdf - Building a Culture of Philanthropy – Simone Joyaux

� www.charityvillage.com – 4 years of Cynthia’s Q & A columns (search “Cynthia Armour” under “articles”) ALSO lots of other good information

� www.kciphilathropy.com – Sector news, Philanthropic Trends Quarterly, Conference Presentations


Cynthia J. Armour, CFREPrincipal StrategistElderstone Resource DevelopmentCavan, ON

705-799-0636

[email protected]

www.elderstone.ca


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Focused FundraisingUPD - PAVRO Focused... · 6/30/2017 3 The key to raising money is control, which is, in turn, the summation of all management techniques within a particular organization