Fundraising 101Presented by:

Erin Morantz, CFRE, KCI Ketchum Canada Inc.- Consultant

Heather Wardle, Seva Canada - Director of Development

Agenda– 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• Acquisition• Annual Giving• Bequest• Capital Campaign• Case statement• Cultivation• Direct Mail• Donor• Donor Acquisition• Donor Pyramid• Donor Retention

• 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 Distribution of Support from Individual

Canadians Other4%

Culture & Recreation

3%

Social Service

10%

Education & Research

5%

Volunteerism8%

Religion50%

Health20%Health

7%

Religion41%

Community Benefit

15%

Education16%

Social Welfare19%

Other2%

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?

• Individuals & Families

• Corporations / Businesses

• Employee Groups

• Foundations

• Government

• Associations/Clubs

Why do people give? to demonstrate power

tax and financial planning considerations

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

belief in the mission

immortality

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?• Positive image

• Vision, uniqueness, urgency

• Impact on community / society

• Strong strategic planning / financial management

• Prioritized needs

• Clear description and outcomes of the project(s) to be funded

• “Fit” with the donor

• 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

• 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.

MAJOR GIVING

ANNUAL GIVING

Bequests / LegaciesPlanned Gifts

Special Events Annual Appeal, Direct Mail, Telemarketing

Small Gifts from the Public-at-Large

ESTATEOR

PLANNEDGIVING

Endowment CampaignsCapital and Special Campaigns

Major Gifts from Individuals,Corporations and Foundations

The Donor Development Process

Involvement

Interest

Information

Identification

Investment

Donor Development Cycle

No interest

IDENTIFICATION(prospecting phase)

CULTIVATION(pre-gift phase)

SOLICITATION(gift phase)

STEWARDSHIP(Post-gift Phase)

NoContact

No Interest

InitialContact

InterestIncreasing engagement& involvement

Discussgift

The Ask

The decisionYes,gift

madeAcknowledgement

Continuinginvolvement

Additionalgift interest No,

butinterested

The Constituency CircleThe Constituency Circle

BoardPACStaff

StudentsDonors

Employers, suppliers,

successful alumni

People or organizations with similar interests

Why do people volunteer?– 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

• 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.cagp-acpdp.org/en/default.aspx Canadian Association of Gift Planners

• http://www.malwarwick.com/learning-resources/ 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

• 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