Praise for Nonprofit Fundraising 101<\/p>\n
\u201cGood stuff! A great, incredibly helpful tool for any cause looking to raise money, online or off.\u201d<\/p>\n
\u2014Steve Wozniak, co-founder, Apple<\/p>\n
\u201cIt\u2019s not often you find such a distinctive twist on the world of fundraising. Professionals\u2014and lead volunteers\u2014will find this to be a practical, global, source of reference.\u201d<\/p>\n
\u2014Andrew Watt, CEO, Association of Fundraising Professionals (AFP)<\/p>\n
\u201cThis must-have book provides a comprehensive breakdown of the strategies and tactics necessary to raise the financial resources essential to bring about the changes we seek.\u201d<\/p>\n
\u2014Jody Williams, Nobel Peace Prize Laureate (1997); chair, Nobel Women\u2019s Initiative<\/p>\n
\u201cNonprofits and charities around the world struggle to secure the support needed to maximize impact, but that just got a bit easier thanks to the very practical lessons in Nonprofit Fundraising 101.\u201d<\/p>\n
\u2014Dan Kammen, professor of energy, University of California, Berkeley; contributing lead author for the Intergovernmental Panel on Climate Change, which shared the 2007 Nobel Peace Prize Laureate<\/p>\n
\u201cNonprofit fundraising is really, really hard, and almost every nonprofit can use a lot of help with it. This book makes it easier by getting together a lot of useful, effective how-to information.\u201d<\/p>\n
\u2014Craig Newmark, founder, craigslist and craigconnects<\/p>\n
\u201cThis book is a gift to nonprofit leaders and fundraisers around the world!\u201d<\/p>\n
\u2014Carolyn Miles, President and CEO, Save the Children USA<\/p>\n
\u201cBillions of dollars of support flow to nonprofits around the world every year, and this book will help ensure your cause secures the resources it needs to thrive.\u201d<\/p>\n
\u2014Bill Strathmann, CEO, Network for Good<\/p>\n
\u201cNonprofits are fueled by two things: passion and money. Nonprofit Fundraising 101 helps show how the two come together and offers a quick intro for the beginner, or a deep dive for the experienced fundraiser.\u201d<\/p>\n
\u2014Jacob Harold, president and CEO, GuideStar USA<\/p>\n
\u201cBy providing a step-by-step framework for fundraising success across all disciplines, this book makes a much-needed contribution to those dedicating their lives to social change.\u201d<\/p>\n
\u2014Charles Best, founder, DonorsChoose.org<\/p>\n
\u201cWhether you are a volunteer, board member, or executive director, Nonprofit Fundraising 101 is a complete guide to the do\u2019s and don\u2019ts of effective fundraising. I don\u2019t just recommend it\u2014I\u2019m using it.\u201d<\/p>\n
\u2014Greg Baldwin, president, VolunteerMatch.org<\/p>\n
\u201cThis is an impressive collection of experts and practitioners, all with ideas and strategies proven by real experience. I\u2019m thrilled to see this compendium of resources available to the nonprofit sector and know every fundraiser and executive director will soon have it on his or her desk!\u201d<\/p>\n
\u2014Amy Sample Ward, CEO, NTEN<\/p>\n
\u201cWhen nonprofits consider launching social enterprises to supplement charitable income with earned revenue, Nonprofit Fundraising 101 provides an expert overview of the key factors for leaders and boards to think through at the outset.\u201d<\/p>\n
\u2014Jim Schorr, CEO, Social Enterprise Alliance<\/p>\n
\u201cNonprofit Fundraising 101 is a wonderful new tool as to ignite your Changemaker\u2122 skills into action!\u201d<\/p>\n
\u2014Nancy Welsh, executive director and CEO, Ashoka\u2019s Youth Venture<\/p>\n
\u201cSocial entrepreneurs at all levels of experience can benefit from this thorough text, which unlocks the secrets to earning more income and raising more capital for your cause.\u201d<\/p>\n
\u2014Cheryl Dorsey, president, Echoing Green<\/p>\n
\u201cIf you want to be a force for good in the world, fundraising is essential to furthering your cause. Nonprofit Fundraising 101 is an extraordinary resource, full of practical advice and wisdom gleaned from numerous sector experts. It has everything you need to succeed, all in one place.\u201d<\/p>\n
\u2014Heather McLeod Grant, co-author, Forces for Good<\/p>\n
\u201cBeyond covering the traditional fundraising basics, Nonprofit Fundraising 101 does a great job clearly breaking down the secrets to success for groups interested moving into the digital age.\u201d<\/p>\n
\u2014Wendy Harman, director, Information Management and Situational Awareness, Red Cross of America<\/p>\n
\u201cThis book provides nonprofits and social entrepreneurs around the world with a new, powerful tool.\u201d<\/p>\n
\u2014Will Kennedy, senior programme officer, United Nations Office for Partnerships<\/p>\n
\u201cAn absolute must-read for anyone who is any way involved in fundraising.\u201d<\/p>\n
\u2014Peter Brinckerhoff, author, Smart Stewardship for Nonprofits: Making the Right Decision in Good Times and Bad<\/p>\n
\u201cIt\u2019s not easy changing the world, but this book gives nonprofits and fundraisers a huge edge in the quest for impact.\u201d<\/p>\n
\u2014Aaron Hurst, founder, Taproot Foundation; author, The Purpose Economy: How Your Desire for Impact, Personal Growth and Community Is Changing the World<\/p>\n
\u201cIf you\u2019re looking to build the fundraising capacity of your organization, this book is a great starting point and offers a single point of entry for success.\u201d<\/p>\n
\u2014Jeanne Bell, CEO, CompassPoint Nonprofit Services<\/p>\n
\u201cThis book provides a helpful set of easy to understand and implement fundraising tips and tools. It is the perfect follow-up to Nonprofit Management 101.\u201d<\/p>\n
\u2014Emmett D. Carson, CEO, Silicon Valley Community Foundation<\/p>\n
\u201cThis book holds the key to catapult your mission forward. After working with social entrepreneurs in more than 100 countries, rarely have I come across a resource so useful and robust.\u201d<\/p>\n
\u2014Ernesto Sirolli, founder, Sirolli Institute; TED Speakers<\/p>\n
\u201cHeyman offers a comprehensive approach to fundraising that is practical, helpful, and relevant to current issues. With many helpful tips, excellent examples, and relevant case studies, any reader will find this to be a valuable fundraising resource.\u201d<\/p>\n
\u2014Nathan Medina, GPC, VP of the Board of Directors, Grant Professionals Association<\/p>\n
N o N p r o f i t f u N d r a i s i N g 1 0 1<\/p>\n
N o N p r o f i t f u N d r a i s i N g 1 0 1 a practical guide with easy to implemeNt ideas & tips from iNdustry experts<\/p>\n
d a r i a N r o d r i g u e z h e y m a N w i t h l a i l a B r e N N e r<\/p>\n
Cover design: Wiley<\/p>\n
This book is printed on acid-free paper.<\/p>\n
Copyright \u00a9 2016 by Darian Rodriguez Heyman. All rights reserved.<\/p>\n
Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada<\/p>\n
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com\/go\/permissions.<\/p>\n
Limit of Liability\/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with the respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor the author shall be liable for damages arising herefrom.<\/p>\n
For general information about our other products and services, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002.<\/p>\n
Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on- demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http:\/\/booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.<\/p>\n
Library of Congress Cataloging-in-Publication Data: Heyman, Darian Rodriguez Nonprofit Fundraising 101 \/ Darian Rodriguez Heyman. pages cm Includes bibliographical references and index. ISBN 978-1-119-10046-1 (paperback); ISBN 978-1-119-10050-8 (pdf ); ISBN 978-1-119-10056-0 (epub) 1. Nonprofit organizations. 2. Fund raising. I. Title. II. Title: Nonprofit fundraising one hundred one. III. Title: Nonprofit fundraising one hundred and one. HD2769.15.H49 2016 658.15\u2019224\u2014dc23<\/p>\n
978-1-119-10050-8 (ePDF) 978-1-119-10056-0 (ePub)<\/p>\n
2015036883<\/p>\n
ISBN: 978-1-119-10046-1 (pbk)<\/p>\n
Printed in the United States of America<\/p>\n
10 9 8 7 6 5 4 3 2 1<\/p>\n
http:\/\/www.copyright.com
\nhttp:\/\/www.wiley.com\/go\/permissions
\nhttp:\/\/booksupport.wiley.com
\nhttp:\/\/www.wiley.com
\nDarian\u2019s Dedication<\/p>\n
I dedicate this book to my beloved grandmother, Martha Heyman. I love you, and I thank you for a<\/p>\n
lifetime of service to our family and to the community. You taught us all the value of family, the love of<\/p>\n
travel, and the joy of serving others.<\/p>\n
Laila\u2019s Dedication<\/p>\n
To my mother, Lori Steele, for teaching me to believe in myself, and that I could do anything I put my mind to. I love you.<\/p>\n
xi<\/p>\n
Contents<\/p>\n
About the Book xvii<\/p>\n
Acknowledgments xxv<\/p>\n
Foreword: Discovering What It Means to Be a Fundraiser xxvii Lynne Twist, author of The Soul of Money: Reclaiming the Wealth of Our Inner Resources<\/p>\n
Part 1: Planning for Success and Preparing Your team 1<\/p>\n
Chapter 1 Creating a Fundraising Plan 3 Interviewee: Andrea McManus, president of The Development Group Insets: Dispelling the Overhead Myth; Sample Fundraising Plan<\/p>\n
Chapter 2 Hiring and Training Development Staff 13 Interviewee: Missy Sherburne, cheif partnerships officer at DonorsChoose.org Inset: Get Your Executive Director to Love Fundraising with Brian Gougherty, director of major gifts at Worldreader<\/p>\n
Chapter 3 Engaging Your Board 25 Interviewee: Lisa Hoffman, fundraising and board development consultant<\/p>\n
Chapter 4 Volunteer Fundraising 37 Interviewee: Simon Tam, director of marketing at Oregon Environmental Council Case Study: APANO<\/p>\n
x i i C o n t e n t S<\/p>\n
Part 2: Building Your toolkit and tracking Progress 45<\/p>\n
Chapter 5 Prospecting and Donor Research 47 Interviewee: Helen Brown, co-author of Prospect Research for Fundraisers: The Essential Handbook and president of the Helen Brown Group<\/p>\n
Chapter 6 Donor Databases and CRM 57 Interviewees: Suzanne DiBianca, president and co-founder of Salesforce.com Foundation, and Peggy Duvette, director of social impact at NetSuite<\/p>\n
Chapter 7 Measuring Impact: Data, Stories, and Organizational Dashboards 65 Interviewee: Stever MacLaughlin, director of analytics at Blackbaud Inset: Outputs Versus Outcomes Case Study: charity: water with Kaitlyn Jankowski, supporter experience manager at charity: water<\/p>\n
Part 3: Individual Donors 77<\/p>\n
Chapter 8 Grassroots Fundraising: Building Your Donor Pyramid 79 Interviewee: Kim Klein, author of Fundraising for Social Change and principal of Klein & Roth Consulting Inset: Don\u2019t Be Afraid to Dream Big<\/p>\n
Chapter 9 Major Donors: Building Relationships, Making the Ask, and Stewardship 87 Interviewee: Kay Sprinkel Grace, author of Beyond Fundraising and fundraising consultant Inset: Tracking Major Donors in Databases<\/p>\n
C o n t e n t s x i i i<\/p>\n
Chapter 10 Direct Mail: The Ins and Outs 99 Interviewee: Mal Warwick, author of Revolution in the Mailbox and founder and chairman of Mal Warwick | Donordigital<\/p>\n
Chapter 11 Year-End, Annual Appeals, and Membership Campaigns 107 Interviewee: Farra Trompeter, vice president at Big Duck and vice chair of the board at NTEN Inset: Sample Year-End Campaign Calendar<\/p>\n
Chapter 12 Event-Based Fundraising 117 Interviewees: Tracy Kosolcharoen, marketing manager at Eventbrite, Daniel Lurie, CEO and founder of Tipping Point Community, and Jen Pitts, managing director of communications, events, and development at Tipping Point Community Inset: Van Jones\u2019 Live Ask Recipe with Van Jones, CNN correspondent and president and co-founder of Dream Corps<\/p>\n
Chapter 13 Runs, Walks, and Rides: Community-Based Fundraising 133 Interviewee: Jeff Shuck, founder and CEO of Plenty Case Study: Kyra Millich, volunteer fundraiser<\/p>\n
Chapter 14 Fundraising Across the Generations: Millennials, Baby Boomers, and More 143 Interviewees: Alia McKee, principal of Sea Change Strategies, and Derrick Feldmann, president and founder of Achieve Inset: The Generations: What Fundraisers Need to Know<\/p>\n
x i v C o n t e n t S<\/p>\n
Part 4: online Fundraising 153<\/p>\n
Chapter 15 Maximizing Website Donations 155 Interviewee: Caryn Stein, vice president of communications and content at Network for Good, and editor of The Nonprofit Marketing blog Case Study: Mercy House, by CommitChange<\/p>\n
Chapter 16 Fundraising with Email 165 Interviewee: Kivi Leroux Miller, author of The Nonprofit Marketing Guide: High-Impact, Low-Cost Ways to Build Support for Your Good Cause and president of NonprofitMarketingGuide.com Inset: Email Cheat Sheet, by CommitChange<\/p>\n
Chapter 17 Social Media and Crowdfunding for Your Cause 175 Interviewees: Beth Kanter, author of The Networked Nonprofit and blogger, and John Haydon, author of Facebook Marketing for Dummies and founder of Inbound Zombie Inset: P.O.S.T. to Social Media Social Media Case Study: The ALS Ice Bucket Challenge with Lance Slaughter, chief chapter relations and development officer at the ALS Association<\/p>\n
appendix Practical Tips for Key Social Media Platforms 189 Crowdfunding Case Study: RE-volv, with Andreas Karelas, founder and executive director at REV-volv<\/p>\n
Chapter 18 Mobile Fundraising 195 Interviewees: Heather Mansfield, author of Mobile for Good: A How-To Fundraising Guide for Nonprofits and principal blogger at Nonprofit Tech for Good, and Tanya Urschel, nonprofit vertical manager at PayPal Insets: Planning for Success: The Mobile Matrix\u2122 by Sparrow: Mobile for All; Text-to-Give<\/p>\n
C o n t e n t s x v<\/p>\n
Part 5: Foundations 205<\/p>\n
Chapter 19 Research, Getting in the Door, and Securing an Invitation to Apply 207 Interviewees: Tori O\u2019Neal McElrath, author of Winning Grants Step by Step and founder of O\u2019Neal Consulting Services, and Leeanne G-Bowley, manager of capacity and leadership development at Foundation Center and artistic and executive director at In-Sight Dance Company Insets: The Different Kinds of Foundations; Types of Grants<\/p>\n
Chapter 20 Government Grants 221 Interviewee: Joshua Sheridan Fouts, executive director at Bioneers Inset: Where to Find Government Grants<\/p>\n
Chapter 21 Writing a Winning LOI and Proposal 227 Interviewees: Susan Fox, co-author of Grant Proposal Makeover: Transform Your Request From No to Yes and fundraising consultant, and Jane C. Geever, author of The Foundation Center\u2019s Guide to Proposal Writing and founder of J.C. Geever<\/p>\n
Chapter 22 Tracking Progress and Reporting Back 235 Interviewee: Beverly Browning, author of Grant Writing for Dummies and vice president of grant writing services at eCivis Inset: Logic Models<\/p>\n
Part 6: Corporate Support 243<\/p>\n
Chapter 23 Sponsorships 245 Interviewee: Maureen Carlson, president of GoodScout Inset: Sponsorship Proposal Template<\/p>\n
x v i C o n t e n t S<\/p>\n
Chapter 24 Cause Marketing Partnerships 255 Interviewees: David Hessekiel, co-author of Good Works and president of Cause Marketing Forum, and Joe Waters, author of Cause Marketing for Dummies and founder of Selfish Giving Inset: Cause Marketing Proposal Tips<\/p>\n
Chapter 25 In-Kind Fundraising and Media Sponsorship 265 Interviewee: Gayle Samuelson Carpentier, chief business development officer at TechSoup Global<\/p>\n
Part 7: Unlocking Social enterprise 273<\/p>\n
Chapter 26 Earned Income Strategies 275 Guest Contributor: Rick Aubry, professor of social enterprise at Tulane University and founder of Rubicon Programs Social Enterprise Case Study: Grow Dat<\/p>\n
Afterword: Finding Your Path 287 Premal Shah, president and co-founder of Kiva.org<\/p>\n
Closing Thoughts 291 Book Partners 295 About the Authors 317 Index 319<\/p>\n
xvii<\/p>\n
About the Book<\/p>\n
\u201cYou don\u2019t have to know all the answers, you just need to know where to find them.\u201d<\/p>\n
\u2014Albert Einstein<\/p>\n
There\u2019s a story I like to tell whenever I address an audience of nonprofit fundraisers. It speaks to what I think of as the single greatest obstacle standing in our way as a community, and especially as a sector\u2014the mistaken notion that when we raise money for an important cause, somehow we\u2019re begging for alms, holding out our tin cup.<\/p>\n
The story is about a young college student in a philosophy class. One day, the professor greeted his audience of 100 master\u2019s and doctoral students with a question. \u201cIs this glass half full, or half empty?\u201d he asked.<\/p>\n
The students spent the entire 90-minute class debating and discussing, but as you might imagine, they never solved the age-old riddle. This especially frustrated one of the students, whose family had made great sacrifices to put him through school, even after he finished his undergraduate studies.<\/p>\n
He huffed and puffed on his way home, where his grandmother, Gertrude, was there waiting for him.<\/p>\n
\u201cHow was class today?\u201d she asked as soon as he walked in the door, but the student was upset and didn\u2019t want to talk about it. She pressed him, as grandmas are prone to do, and finally he told her about his experience.<\/p>\n
\u201cWell, if you really want to know, it was incredibly frustrating. We had a hundred master\u2019s and doctoral students sitting around for an hour and a half, and all we did is debate if the glass were half full, or half empty.\u201d<\/p>\n
His grandmother, with only a second-grade education, didn\u2019t miss a beat.<\/p>\n
x v i i i A B o u t t h e B o o k<\/p>\n
\u201cWell son, it depends on whether you\u2019re pouring or drinking.\u201d<\/p>\n
Pouring . . . or drinking. Brilliant. And the reason I share this story with fundraisers every chance I get is that I believe the tin cup approach to fundraising is based on a failure of perception. We mistakenly think of ourselves as the drinkers, relying on the charitable contributions of others to conduct our work. And although it may feel like that at times, nothing is further from the truth.<\/p>\n
We are the pourers. What we do as a sector, as a Movement with a capital \u201cM,\u201d is connect people with resources to the change they want to see in the world. Fundraising is holy work in my mind, and we\u2019re privileged and honored to do it for causes we believe in. The world needs us\u2014we are a conduit, a channel. And through us, the world finds the resources and support it needs to thrive, or at least to improve in some small way, one dollar, peso, or pound at a time.<\/p>\n
Book Overview and Purpose<\/p>\n
Our goal when writing this book was to offer a useful, unique resource to you, the reader. Laila and I may not know you, but we\u2019ve been where you are. You\u2019re passionate, creative, and committed to your cause. Maybe you have resources, expertise, and contacts at your disposal, as we have these past years, or maybe you\u2019re like us years ago, starting nonprofits with no budget, no plan, and no experience. Either way, this book will serve you. After more than a decade in the sector, we\u2019ve seen lots of fundraising books, but there\u2019s nothing like what we\u2019ve pulled together in these pages. This book is the first comprehensive, practical guide to all aspects of nonprofit fundraising around the globe.<\/p>\n
Ultimately, this is a reference manual, and not every fundraiser needs to know about every tactic or strategy. It\u2019s unlikely that you\u2019ll read this book straight through, and that\u2019s OK; Nonprofit Fundraising 101 is intended to be your yellow pages for social change. Apply it as needed. Keep it on your desk and when you decide to pursue your first government grant, or your executive director charges you with creating a fundraising plan for your nonprofit, it\u2019ll be there. Break it out when you get ready to launch a new crowdfunding campaign or finally commit to taking your cause mobile. Or simply refer to the various Resource Reviews and the Book Partners if you\u2019ve already mastered the basics and are looking for resources to advance your professional development.<\/p>\n
A b o u t t h e B o o k x i x<\/p>\n
Use the book as you see fit and, please, share it with colleagues and peers. All of us can learn a lesson from Chapter 9 interviewee, Kay Sprinkel Grace, who once quipped, \u201cWe need to tilt our silos on their sides, and turn them into pipelines.\u201d<\/p>\n
Book Structure and Style<\/p>\n
To make the book as readable as possible, we\u2019ve crafted a consistent framework for all of the chapters, which is in line with the one used in Nonprofit Management 101:<\/p>\n
\u2022 Introduction: Each entry starts with a short overview of why a busy nonprofit leader like you should take 20 to 30 minutes out of his or her schedule to learn more about this topic (sample nursing essay examples by the best nursing assignment writing service). Which kinds of nonprofits can benefit from this strategy, and what does this approach have to offer your cause?<\/p>\n
\u2022 Critical Skills and Competencies: This portion typically contains 70 to 80 percent of the content for each chapter, and is where you\u2019ll find the step-by-step framework for success in each respective arena. We\u2019ve done our best to distill each interviewee\u2019s comments and insights into a how-to formula for success, presented in a logical progression with several main headlines, each of which is followed by a few paragraphs to fill in the specifics.<\/p>\n
\u2022 Conclusion: A paragraph at the end of each chapter helps to underscore key points and takeaways, reminding you of some of the highlights and crucial components of the formula for success.<\/p>\n
\u2022 Do\u2019s and Don\u2019ts: These are bullet point lists of concrete, actionable tips from within the chapter and beyond, each of which is distilled down to a sentence or two to make it as easy as possible to digest.<\/p>\n
\u2022 About the Experts: Brief bios for each chapter\u2019s interviewees are included at the end of their respective chapters.<\/p>\n
\u2022 Resource Review: The final component of each chapter is where you\u2019ll find additional resources to learn more about that particular discipline. Many of these also offer helpful templates, resources, and reports to keep you updated as trends and technologies evolve. These resources are a treasure trove, so be sure to subscribe to the newsletters and blogs, read the annual reports and books, and rely<\/p>\n
x x A B o u t t h e B o o k<\/p>\n
on the links outlined here to keep abreast of industry trends and developments.<\/p>\n
\u2022 Case Studies and Insets: Sprinkled throughout the chapters are a variety of case studies that showcase specific nonprofits\u2019 experiences, with a focus on best practices and pitfalls to avoid. In addition, you\u2019ll also find a range of insets that dive a bit deeper into a specific component mentioned in the chapter, or that provide templates, checklists, and more.<\/p>\n
All the chapters are short and incredibly practical, and our goal with this book is not simply to leave you inspired, but inspired to action. Short and to the point, we share concrete, real-world insights, tips, and tools from globally recognized experts, and leave you with clear takeaways that you can put to work immediately, making you both more effective and efficient at serving your cause. As recovering executive directors and current fundraisers, we know you\u2019re busy, and the last thing you need are pie-in-the-sky ideas and concepts that may make you think, but that fail to immediately help, and even transform, the way you go about your everyday work.<\/p>\n
From a style standpoint, we strived to make the book easy to read and digest. Paragraphs are kept short to facilitate ideas sinking in, and we\u2019ve used a conversational tone, since ultimately, we are talking directly to you. We\u2019ve also formatted things in a way that aims to help you retain the most important ideas without you feeling like you have to bend every other page or break out that old, faded highlighter. To this end, important points and comments are italicized, while concrete takeaways and best practices are bolded and italicized throughout the book. You\u2019ll see a wealth of the latter in each and every chapter, because for us, that\u2019s what this publication is all about.<\/p>\n
Admittedly, many of the interviewees and statistics are from the United States, but this book is intended for a global audience of experienced practitioners and emerging leaders, including university students and volunteers. To this end, we\u2019ve done our best to ensure Nonprofit Fundraising 101 speaks to nonprofits, charities, and causes all around the world. So don\u2019t worry if you\u2019re just getting started, or if you\u2019ve been in the sector for a decade. Similarly, there\u2019s great content in here for organizations of all sizes. The tips and tools shared herein are relevant to organizations ranging from small, grassroots efforts with no paid staff, to well-established nonprofits with big budgets and a large team of paid professionals.<\/p>\n
A b o u t t h e B o o k x x i<\/p>\n
Common Themes<\/p>\n
This book covers a wide range of fundraising topic (sample nursing essay examples by the best nursing assignment writing service)s; in fact, our goal was to address a truly comprehensive range of disciplines, offering readers one single book that provides at least a basic sense of everything you need to know. As such, there are a huge diversity of perspectives and topic (sample nursing essay examples by the best nursing assignment writing service)s represented in these pages, but three important common themes and ideas appear throughout:<\/p>\n
Plan for Success: Many of the frameworks and formulas for success shared in the chapters start with\u2014or even revolve entirely around\u2014creating a solid plan. Planning is the lynchpin of any nonprofit\u2019s success, and in fact you\u2019ll often hear us share one of the questions we find most helpful when driving this process, \u201cWhat does success look like?\u201d Ask this question at every meeting, every strategy session, and reverse engineer how to achieve your ideal outcome. Take a moment to step back and envision your path before you dive into any activity or project ( help with nursing paper writing from experts with MSN & DNP degrees) to ensure you\u2019re as impactful as possible. As Peter Drucker once noted: \u201cEfficiency is about doing things right; effectiveness is about doing the right things.\u201d Good planning helps you be both efficient, and effective.<\/p>\n
Meet People Where They\u2019re at: Several chapters speak to the notion that you cannot expect donors to come to you; you need to court and steward them where\u2014and how\u2014they\u2019re most comfortable. Whether we\u2019re talking about the importance of ensuring your website is mobile-compatible, talking about Facebook and Twitter, or underscoring the huge, continued role of more proven approaches like direct mail, the point is that, to be successful, you must take a dispassionate look at which channels and media are most appropriate for achieving your goals. Along those lines, this book contains some surprises. For example, did you know that 2013 was the first year in U.S. history that Baby Boomers were just as likely to give online versus by direct mail? Or did you realize that odds are, at least 40 percent of your nonprofit\u2019s website traffic today comes from people on mobile devices? Keep an open mind and be willing to experiment with some of the ideas and tactics shared in this book, always with an eye toward the old mantra, \u201cfail fast, fail forward.\u201d<\/p>\n
It\u2019s Not About You: As we shared in the story at the beginning of this section, nonprofits are a channel, a conduit, between donors and impact. The most successful nonprofits and fundraisers communicate not about their work, needs, or impact, but rather about the impact the donor or prospect makes<\/p>\n
x x i i A B o u t t h e B o o k<\/p>\n
possible. Talk with people about what drives them to act and contribute\u2014 about what their past support has enabled or their future contribution will make possible\u2014and revenue will follow. Several chapters build on this idea by speaking to the power of peer testimonials and creating a movement instead of a campaign. And remember, people want to be part of a winning team, so framing your work as powerfully as possible is critical. Always the inspiring and inspired communicator, Kay Sprinkel Grace shares two great sound bites that bring both of these key points home in Chapter 9 when talking about major donors:<\/p>\n
\u201cPeople don\u2019t give to you; they give through you.\u201d<\/p>\n
and<\/p>\n
\u201cPeople don\u2019t give to you because you have needs. They give to you because you meet needs.\u201d<\/p>\n
Flow of the Book<\/p>\n
Nonprofit Fundraising 101 is broken into seven parts. After a Foreword from fundraising guru Lynne Twist, we kick things off with Part 1, where you\u2019ll learn about a few crucial aspects of planning and maximizing human resources. How can you create a killer fundraising plan without killing yourself? How can you hire and train fundraising personnel and engage your board and key volunteers in fund development?<\/p>\n
From there, Part 2 will help round out your infrastructure with a range of tools to track donors and gauge progress. You\u2019ll learn how to use tools and technology to identify donor prospects and research their interests, hear about how a constituent relationship management platform can serve as a powerful donor database and coordinate all your communication and contacts, and finally how to collect the right data and personal stories to be able to gauge your efforts and convey impact to donors. All of this rolls up into a powerful organizational dashboard that your staff and board can use to quickly tell whether your nonprofit or program is on track, or if there are red flags that need to be addressed.<\/p>\n
Then you\u2019ll dive into the meat of the book: actual fundraising strategies. Part 3 focuses on all aspects of individual donors, which represent the lion\u2019s share of nonprofit support, at least in the United States. We interviewed some of the sector\u2019s best and brightest to ensure this book shares concrete tips and tools for a wide range of disciplines related to cultivating, soliciting, and stewarding supporters at all levels<\/p>\n
A b o u t t h e B o o k x x i i i<\/p>\n
of your donor pyramid, ranging from grassroots supporters to major donors. Part 3 is also where you\u2019ll find the specific channels for doing that, including direct mail, annual appeals, membership campaigns, and events, as well as learn about how to raise money from people both young and old.<\/p>\n
Part 4 explores the exciting world of online giving, starting with tips for optimizing your website and email, which is where the majority of technology-based fundraising currently occurs, and then looking at social media and crowdfunding\u2019s ability to turn your donors into fundraisers, and finally, what can be argued is the future of giving: mobile. Here our experts will share tips for doubling your online giving in just thirty days. And if you\u2019re hoping to create the next ALS Ice Bucket Challenge, this is the section where you\u2019ll hear from the folks who orchestrated that campaign via a detailed case study, as well as learning from a wide range of experts with decades of experience under their belts\u2014and literally more than a billion dollars raised online between them. With their help, you can take your nonprofit into the future, today.<\/p>\n
Parts 5 and 6 share a range of tips and tools for institutional giving. Learn how to identify the most likely prospects, secure the all-too-elusive call or meeting, and not only be invited to apply for foundation, corporate, or government support, but how to secure crucial pieces of information that will catapult your odds of success from 5 percent to 50 percent. The interviewees follow that with tips for writing a great proposal and how to monitor your progress and report back in a language that funders appreciate and expect. And beyond straight cash support, we\u2019ve devoted a chapter to in-kind and media sponsors, as we\u2019ve witnessed firsthand the transformative impact those partnerships can have on both a fledgling nonprofit and a well-established organization, even though they\u2019re infinitely easier to secure.<\/p>\n
Finally, the book ends with Part 7, where guest contributor Rick Aubry shares and explores the ins and outs of earned income for nonprofits. If you\u2019re considering launching a social enterprise in an effort to diversity your revenue base, don\u2019t miss this chapter. And as long as we\u2019re in the world of social enterprise, what better way to wrap things up than with an inspiring Afterword by Kiva.org founder Premal Shah.<\/p>\n
Again, this book is a reference guide, so feel free to skip around. Pick the chapters that you find most compelling and useful today, and don\u2019t be surprised when other topic (sample nursing essay examples by the best nursing assignment writing service)s pop up on your radar as times goes by. After all, change is the very essence of life, and it\u2019s ultimately the goal of all nonprofits, isn\u2019t it?<\/p>\n
x x i v A B o u t t h e B o o k<\/p>\n
Fundraising Ethics<\/p>\n
We\u2019d be remiss if we neglected to introduce this book without a quick note on fundraising ethics and, most notably, commission-based fundraising. As you implement the best practices shared in the coming pages, always remember that the public expects you to be honest, accountable, and transparent. The Association of Fundraising Professionals (AFP) Code of Ethical Standards (www.afpnet.org\/files\/ContentDocuments\/CodeofEthics. pdf ) provides a comprehensive overview of ethical aspirations and boundaries for fundraisers. An ethical fundraiser applies the Code of Ethics and all relevant laws and regulation to their work.<\/p>\n
In particular, unlike the corporate world, in the nonprofit sector, donors and funders can mandate exactly how their gifts are to be used. You are ethically and legally bound to use funds as directed by the donor. If someone states he wants his donation or grant to be used exclusively for a specific program, or even a particular line item in your budget, then you need to take all proper measures\u2014especially bookkeeping, accounting, and measuring program expenditures\u2014to ensure those funds are used as directed.<\/p>\n
Whether you\u2019re a consultant or a paid staff member, remember that in the nonprofit sector, commission-based fundraising is considered unethical. Standard 21 in the AFP Code of Ethical Standards addresses this principle. Deviating from this simple guideline can have devastating implications for your nonprofit and on donor relationships. Supporters want to know their gifts go to the mission-based work of your organization, not to a glorified salesperson. This, too, is very different from the corporate world, where performance-based compensation is common. In short, in the nonprofit or social sector, every fundraiser is expected to do his or her best to represent the organization or client, and to be paid fairly for work out of the organization\u2019s budget.<\/p>\n
As you begin, or continue, your journey doing your best to represent a cause you care deeply about, may this book serve as a useful guide\u2014to you, to your cause, to the people whose lives you make better every day you go about your work, and ultimately to the public trust we serve as fundraisers.<\/p>\n
http:\/\/www.afpnet.org\/files\/ContentDocuments\/CodeofEthics.pdf
\nhttp:\/\/www.afpnet.org\/files\/ContentDocuments\/CodeofEthics.pdf
\nxxv<\/p>\n
Acknowledgments<\/p>\n
First and foremost, I offer thanks and congratulations to Laila Brenner, without whose contribution this book never would have been possible. Laila, you are a joy to work with, and I admire your great writing and unwavering commitment, even while expecting your second child. I look forward to working with you again.<\/p>\n
Thanks also to John Wiley & Sons for graciously offering to publish my second book and for being an understanding and flexible partner. I offer a deep bow of humble appreciation to the 121 interviewees and partners who shared their time, insights, and resources, ensuring this book offered truly useful tips and tools for nonprofits and fundraisers, and providing invaluable marketing support around its release. Thanks to my colleagues at Sparrow for their support of this project ( help with nursing paper writing from experts with MSN & DNP degrees) and for their work helping nonprofits employ the power of mobile technology to better serve the poor. I also want to thank the two other sponsors of this book, Eventbrite and CommitChange, for their invaluable support as well as the Association of Fundraising Professionals for their incredible endorsement, and Social Media for Nonprofits\u2019 Ritu Sharma, for being the catalyst for this project ( help with nursing paper writing from experts with MSN & DNP degrees).<\/p>\n
I thank my family in Argentina for showing me firsthand how challenging yet rewarding philanthropy can be on a personal level. To the Heyman family, my mishpocheh, thanks for providing me with the support and love I needed to experiment and discover my path. In particular, I\u2019d like to thank my brother for being the best thought partner I could ever ask for and for always being in my corner, even when things get hard. Paulo, you can never lose me. And most of all, I offer gratitude to my mother, Annette. Mom, you taught me how to love and helped me see that, no matter how much I work to change the world, ultimately what really matters is helping one person at a time.<\/p>\n
xxvii<\/p>\n
Foreword Discovering What It<\/p>\n
Means to Be a Fundraiser Lynne Twist<\/p>\n
\u201cYou will find as you look back upon your life, that the moments you have really lived are the moments when you have done things in the spirit of love.\u201d<\/p>\n
\u2014Henry Drummond<\/p>\n
I discovered my passion for fundraising when I was in kindergarten in Evanston, Illinois. My oldest sister had just gotten the lead role in the school play, but there wasn\u2019t enough money to buy costumes or sets because of a budget crisis. I saw how heartbroken she was, so I went to my teacher and asked if there was anything our class could do to help. Turns out I wasn\u2019t alone in wanting to support the cause, and I\u2019ve often found since then that when you take a stand for something you believe in, it inspires others to follow your lead.<\/p>\n
As Goethe once said, \u201cBe bold, and mighty forces will come to your aid.\u201d The entire kindergarten class ended up selling chocolate chip cookies and lemonade outside our school every afternoon, and on weekends, until we\u2019d raised enough money to support the play. Our actions inspired the rest of the school, including the PTA and Board of Education, to step up and look at how they could solve the budget crisis. At just five years old, this was a life-altering experience for me; it ignited my passion and helped me realize that fundraising is an act of love. We were a bunch of children who couldn\u2019t read or write, add or subtract, but we could fundraise with homemade cookies and lemonade! I remember thinking how amazing it was that, out of an act of love for my sister, we were able to solve a problem and help turn the tide for the whole school.<\/p>\n
x x v i i i F o r e W o r D<\/p>\n
This first experience with fundraising taught me that it took commitment and courage to raise money. Ever since, I\u2019ve seen it as an act of love and affirmation. We all know that giving is an act of generosity, and often love, commitment, and vision; but I think that asking also taps into a very powerful part of the human heart. To me, fundraising is sacred\u2014it\u2019s holy work, and I\u2019m privileged and honored to do it. Fundraising enables people to move their resources toward what they really believe in. It\u2019s how we shift people\u2019s relationships with money, showing them it can be used to empower and inspire us to be the best people we can be, while nourishing others around us.<\/p>\n
At this time in history\u2014the first decades of the 21st century\u2014one of the greatest things we need to come to terms with as a species is our use of resources: the earth\u2019s resources; human resources; and, of course, financial resources. We need to recognize that we\u2019re at a critical juncture, where until we learn to live within our ecological means, we won\u2019t learn to live within our economic means. We need to look at how to move away from overconsumption, destructive causes, and depletion of the natural world, and reallocate resources toward our highest commitments, allowing them to nourish our lives, and the health and well being of all humanity. Fundraising is how we can, and are, doing this. Every time you raise money for a cause you care about; every time you cultivate or steward a donor; and every time you make an ask, you\u2019re taking a stand for the just, equitable, and sustainable world we all dream of.<\/p>\n
As fundraisers, when we ask someone for money, whether it\u2019s online, in person, or through a letter or phone call, what we\u2019re actually doing is saying to that person: \u201cI see you. I see your heart and your generosity. I see that you have a vision, and that you care about the world. That is why I am asking you to help.\u201d You aren\u2019t trying to manipulate people\u2014you are affirming them. You\u2019re inviting them to leave our planet in a better state than we found it. As fundraisers, our job is to listen to who people really are and then to reconnect them to their courage, and to their heart. Is your cause a match for what they really care about? It\u2019s been my experience that if an ask is done with respect and love, regardless of that person\u2019s capacity to give, the encounter ennobles both parties and inspires us to step into our best selves.<\/p>\n
In my workshops, I talk about the three rules of fundraising. The first rule is ask for the money. You can\u2019t be afraid to ask. It\u2019s critical that you are willing, eager, and completely comfortable asking people for money. You need to ask<\/p>\n
F o r e w o r d x x i x<\/p>\n
clearly and unapologetically. Be proud to invite support for a cause both you and they care about.<\/p>\n
Rule number two is ask people who are committed and want to make a difference. Find people who want to leave this planet better than they found it. In fact, they\u2019re all around you, every day you go about your good work. People care, and they want to be part of the solution. Your cause or organization can represent that solution.<\/p>\n
That leads us to rule number three, which is ask everyone, because everyone is committed at some level and wants to make a difference with their lives. Your role as a fundraiser is to help people see their commitment, and then to show them a way to make a difference.<\/p>\n
One of the most important lessons to learn as a fundraiser, is that it\u2019s OK to ask people and have them say no. If done with respect and love, and acknowledgment and the affirmation that people want to make a difference with their lives, every fundraising ask can open the heart and is a win for humanity. Fundraising encounters will not always create money for your cause, but regardless they can unlock something in people and help their generosity to flow in the direction that\u2019s right for them. Often when people say no, you\u2019ve helped them realize that they actually want to give to something else that they care more about. We\u2019re all in this together, so it\u2019s important you still see this as a win.<\/p>\n
One of the other most important fundraising lessons I\u2019ve learned is that coming from a place of need is not sustainable. In Chapter 9, Kay Sprinkel Grace shares that people don\u2019t give to you because you have needs; they give to you because you meet needs. Crisis fundraising\u2014especially in the aftermath of things like natural disasters\u2014has its place, but it\u2019s not a strategy that can lead to long-term success. Effective asks don\u2019t come from a place of crisis or scarcity. To be successful, fundraising must be expressed as an opportunity to partner with a nonprofit to make a difference. Rather than \u201cwe can\u2019t do this without you\u201d or \u201cour work depends on your support,\u201d aim instead for the sentiment: \u201cWho\u2019s with us?\u201d This way, there is dignity and respect in the relationship, and you create a partnership where everyone is pulling together to make a difference, whether it\u2019s saving the rainforest or ending world hunger.<\/p>\n
Another lesson I like to pass on to fundraisers is what I call the truth of sufficiency. We live in a very intense global consumer culture that<\/p>\n
x x x F o r e W o r D<\/p>\n
constantly tells us that we don\u2019t have enough; that we need more. Fundraising interrupts this toxic notion, allowing us to rest in the \u201cenough-ness\u201d of bounty and bear witness to the blessing of our lives. Fundraising helps people realize that they are sufficient, whole, and have what they need to live fulfilling lives. After all, generosity is a demonstration of abundance, both to the recipient and the donor.<\/p>\n
Even those of us struggling to pay rent or get out of debt can have these realizations when we stop comparing ourselves to others who have more. By realizing the fullness of our lives, we can truly experience gratefulness\u2014of the friends we have, the rich tapestry of love in which we dwell, the people who care about us, our families, the work we get to do, the health we enjoy, and more. And once we dwell in this realization, the fullness of our lives grows. I like to say, \u201cWhat we appreciate, appreciates.\u201d For me, fundraising is the opportunity to help people appreciate the bounty that they live in and share that with others. Of course, this saying also relates to stewarding relationships after the gift, since expressing gratitude and demonstrating the impact someone\u2019s generosity enables is the surest way to secure additional support.<\/p>\n
Notwithstanding the name of this book, thinking of yourself as a \u201cnonprofit\u201d fundraiser is actually a bit of a misnomer. The social sector actually generates an enormous profit\u2014a long-term social profit for humanity, the environment, and all future life. Think about the great leaders of history: Mahatma Gandhi, Mother Teresa, Martin Luther King, Jr., Elizabeth Cady Stanton, Nelson Mandela, and Susan B. Anthony, to name a few. The work they did is still yielding a profit today and will continue to do so for many future generations. And they were all fundraisers. Had they not been successful in raising the financial resources that were required to do their work, we would not know their names nor benefit from their movements. These leaders are your colleagues. You are following their example and working to change history. You are creating a permanent profit for society, not the kind of profit that can be spent, or wasted. This is the work you are here to do, and the world needs it.<\/p>\n
As a fundraiser, you are not only creating profits, P-R-O-F-I-T-S, but in fact you are a social prophet, P-R-O-P-H-E-T. In other words, whatever your cause, your work aims to achieve a beautiful prophesy of the future, where things are better than they are today. This takes courage, grace, and heart. That is who you are as a fundraiser. You have the guts to garner the resources needed to shift the direction of history. And so I bow to you\u2014and to all<\/p>\n
F o r e w o r d x x x i<\/p>\n
fundraisers\u2014for using your courage and heart to make our world a better place in which to live. Thank you.<\/p>\n
About Lynne Twist<\/p>\n
For more than 40 years, Lynne Twist has been a recognized global visionary committed to alleviating poverty and hunger, supporting social justice, and promoting environmental sustainability. From working with Mother Teresa in Calcutta, to serving in the refugee camps in Ethiopia, and helping save the threatened rainforests of the Amazon, Twist\u2019s on-the-ground work has brought her a deep understanding of the social tapestry of the world and the historical landscape of the times we live in. Her best-selling book, The Soul of Money: Reclaiming the Wealth of Our Inner Resources (W.W. Norton & Co.), shows us that examining our attitudes toward money\u2014earning it, spending it, and giving it away\u2014can offer surprising insight into our lives, our values, and the essence of prosperity.<\/p>\n
IPart<\/p>\n
Planning for Success and Preparing<\/p>\n
Your Team<\/p>\n
3<\/p>\n
1Chapter Creating a<\/p>\n
Fundraising Plan<\/p>\n
\u201cA goal without a plan is just a wish.\u201d \u2014Antoine de Saint-Exupery<\/p>\n
Introduction<\/p>\n
Your organization has a mission, and to accomplish it you need to raise money. But where do you start? That\u2019s simple: with a plan. You need a clear set of objectives, and a map of how you aim to get there. Your fundraising plan will be unique to your nonprofit. Every organization has different needs, goals, strengths, and priorities, and your fundraising plan will address and incorporate these in a written document.<\/p>\n
Being strategic about fundraising in this way generates better results, creates efficiency, and ensures everyone involved is on the same page and accountable. It will also allow you to evaluate progress and assess the effectiveness of different fundraising channels, facilitating strategic shifts when necessary.<\/p>\n
The rest of this book will help you understand each of the various fundraising channels and tactics, enabling you to make informed decisions when creating your fundraising plan. But before you dive in, remember to take stock of what you have going for you and your cause, and to look at what you\u2019re<\/p>\n
4 N o N P r o f i t f u N d r a i s i N g 1 0 1<\/p>\n
already doing successfully if you\u2019ve already launched the organization. Your plan is a living document wherein you\u2019ll spell out your proposed recipe for success, and its goal is helping you focus on your strengths, while challenging you to identify new opportunities. Be mindful of the resources you have and don\u2019t stretch them too thin, but also bring an open mind to considering assets you\u2019ve underutilized or ignored and look at how you can put them to work.<\/p>\n
To learn more about the basics of creating a nonprofit fundraising plan, I sat down with Andrea McManus, president of the nonprofit consultancy The Development Group, and she outlined the six things you need to know to succeed when creating an effective fundraising plan.<\/p>\n
Critical Skills and Competencies<\/p>\n
1. Understand the Big Picture<\/p>\n
Creating a fundraising plan means answering two basic questions: How much money do you need to raise? and Who do you plan on raising it from? In your plan, you\u2019ll create realistic program goals based on the expenses of running your programs and organization today\u2014assuming you have some past experience with the work\u2014as well as aspirational goals that inspire your team by clarifying exactly what kind of additional impact is possible if you secure even more resources and support.<\/p>\n
Your plan will also be a vehicle for detailing your sources of revenue and how much income you expect from each, whether it\u2019s individual donors, corporations, foundations, the government, or earned income. It is critical to have multiple, diverse sources of revenue, so that if you unexpectedly lose one, you still have others to rely on.<\/p>\n
Once you\u2019ve identified your revenue sources, perhaps benefiting from the rest of the book to determine which channels are most appropriate for you, you\u2019ll articulate your strategies and tactics for each source. If you plan to raise money from individuals, will you be cultivating and asking major donors, running an annual fund, doing direct mail, online fundraising, or utilizing other approaches? Will you be soliciting businesses and corporations for gifts of cash or in-kind donations? While many of the remaining chapters of this book, especially those related to marketing and donor communication, propose a \u201cless is more\u201d style, when planning for success, the more detailed your vision, the more likely you are to succeed.<\/p>\n
C r e a t i n g a f u n d r a i s i n g P l a n 5<\/p>\n
2. Know Your Finances<\/p>\n
Now that you have a sense of everything your fundraising plan is meant to accomplish, and some of the various sections it will include, let\u2019s get into it. Knowing how much money you need to raise starts with good financial planning. You can\u2019t create a fundraising plan without a budget. How much does the work you do cost? What are your programmatic, fundraising, and overhead expenses? Once you know your expenses, you need to figure out how you will pay for them; in other words, how will you raise the money to pay for them? And don\u2019t forget that fundraising itself costs money. You can\u2019t raise money without spending money.<\/p>\n
Dispelling the Overhead Myth<\/p>\n
At least in the United States, the IRS dictates that all nonprofit expenses be classified as either program, fundraising, or administrative. This adds not only an extra layer of bookkeeping, but also creates some difficulties with fundraising, since some donors and funders will ask for their contributions to be allocated only for programs. Others still will want to know whether more than 80 percent of the funds you raise go toward programs, a common industry benchmark.<\/p>\n
Part of your job as a fundraiser will be using the tactics outlined in this book to convey the importance of not just some of your work, but all of it. Just as you cannot provide medical attention only to the lungs and expect someone to stay healthy, you\u2019ll need to refine your ability to make the case for \u201cgeneral operating support\u201d or \u201cunrestricted gifts,\u201d both of which are discussed in detail in the sections on individual donors and foundations.<\/p>\n
For now, we\u2019ll focus on dispelling the notion that staff payroll, rent, and utilities should all be categorized as overhead. Not true: the staff time spent implementing programs is a program-related\u2014not an overhead\u2014expense. The way to calculate overall payroll allocations, which are also used for rent and utilities, is as follows:<\/p>\n
\u2022 Have staff members break down how they spend a typical week in a spreadsheet. No need to get too specific; simply create 8 to 12 \u201cbuckets\u201d for their time, for example, client meetings, fundraising calls, answering email, etc.<\/p>\n
(continued )<\/p>\n
6 N o N P r o f i t f u N d r a i s i N g 1 0 1<\/p>\n
\u2022 Assign a time estimate for how many hours of each week is spent on each bucket; an average over time is sufficient.<\/p>\n
\u2022 Allocate each bucket: What percentage of that activity relates to programs, versus fundraising, versus purely administrative details?<\/p>\n
\u2022 Based on this, you can use a fairly simple spreadsheet formula to figure that employee\u2019s overall allocation, that is, what percentage of his or her time is spent on programs versus fundraising versus administrative duties.<\/p>\n
\u2022 After doing this for each paid staff member, you can factor in each person\u2019s compensation to weight his or her personal allocation, and then combine everyone into an overall staff allocation.<\/p>\n
\u2022 Use this same allocation for staff-related expenses, such as benefits, rent, utilities, and so forth.<\/p>\n
3. Create a Process<\/p>\n
Developing an effective fundraising plan cannot be done in a silo by the fundraiser alone. Involve your executive director, senior staff, and board members. Assemble your team and outline the process you\u2019ll go through to create the plan, so everyone knows what to expect. Here are the steps McManus suggests:<\/p>\n
1. Assess your environment, both internally and externally. Internally, look at things like organizational priorities, programs, and resources, including staff, technology, and capabilities. Capabilities should include expertise in fundraising, marketing, and other key areas. Externally, discuss things like fundraising trends, best practices, industry benchmarks, and how peer organizations (those doing similar work with similar budgets) are succeeding at fundraising.<\/p>\n
2. Assess your donors, both current and aspirational. What kind of support can you conservatively expect from your current donors and prospects? What does your current donor base look like, and what do you want it to look like? Gaining a realistic sense of how much money you can raise from your base, combined with other potential strategies, will enable you to determine the feasibility of the financial goals you\u2019ll tackle later in the discussion.<\/p>\n
(continued )<\/p>\n
C r e a t i n g a f u n d r a i s i n g P l a n 7<\/p>\n
3. Outline your goals. In order to achieve the impact your organization envisions, what kind of fundraising infrastructure and results are needed? A couple examples are included below to help kick-start your discussion, but don\u2019t just think about financial targets from different channels, although those are certainly crucial. Consider also the kinds of capacity that you as an organization need to build to thrive, for example, increasing board participation in fundraising and contributions; launching your first successful crowdfunding campaign, etc.<\/p>\n
4. Identify your objectives. What are the three or four (or more) things you need to accomplish in order to achieve the big-picture goals and strategies you\u2019ve outlined? Break down the goal into the elements required to ensure it happens. Again, some examples to get you thinking are below.<\/p>\n
5. Identify your tactics. This is where you get into the nitty-gritty details, breaking down each objective one more step. In other words, the who, what, when, where, and how. Who will you be raising money from, and how? What are the concrete actions that need to occur to achieve your objectives? Be very specific and include measurable goals, such as: We will apply for six grants from private foundations by the end of the second quarter.<\/p>\n
6. Identify your budget and resources. How much will it cost to raise this money, and who will do it? Do you have the necessary tools in place, including a CRM platform, staff, subscriptions to foundation or donor prospecting databases, marketing and communications support, an online fundraising platform, etc.?<\/p>\n
Once you\u2019ve outlined your process, assign responsibilities and create deadlines. Keep people accountable by assigning them duties and clarifying who is personally charged with ensuring the fulfillment of each tactic, as well as deadlines for each.<\/p>\n
4. Document the Plan<\/p>\n
Once you\u2019ve gone through the steps in this process and answered all the relevant questions, it\u2019s time to document your plan. Without a written plan, you have no plan at all. This document should be specific, but also as short as possible and easy to read. Organize the plan by two to five goals and associate each goal with three to six objectives, and then associate each objective with tactics. Assign a lead person and deadline for each tactic.<\/p>\n
8 N o N P r o f i t f u N d r a i s i N g 1 0 1<\/p>\n
Here is an example:<\/p>\n
ABC 2016\u20132018 Fundraising Plan<\/p>\n
Goal 1: To build a strong and adequately resourced fundraising infrastructure that includes staff and volunteer resources, technology, policies and procedures, and professional development that provides a foundation for fundraising sustainability and growth as required.<\/p>\n
Objective 1: Build fundraising personnel resources. Tactic 1: Hire a Development Associate. Lead: Development<\/p>\n
Director. Deadline: 8\/10\/16. Tactic 2: Secure at least one skilled volunteer to help with<\/p>\n
administrative fundraising tasks. Lead: Development Associate. Deadline: 1\/12\/17.<\/p>\n
Objective 2: Build a strong board with reach and influence, as well as fundraising and giving capacity. Tactic 1: Create and implement a board member agreement<\/p>\n
detailing board responsibilities, including financial and fundraising commitments. Lead: Development Director. Deadline: 11\/10\/16.<\/p>\n
Tactic 2: Recruit at least three new board members able to contribute major gifts and facilitate introductions to major donors. Lead: Development Committee. Deadline: 6\/15\/17.<\/p>\n
Objective 3: Build a strong annual fund program that will contribute sustainable revenue toward operating expenses. Tactic 1: Select and implement a CRM platform to serve as<\/p>\n
our donor database. Lead: Development Director. Deadline: 3\/15\/17.<\/p>\n
Tactic 2: Build prospect list with 15,000 mailing and 25,000 email addresses. Lead: Marketing Director. Deadline: 5\/1\/17.<\/p>\n
Tactic 3: Select and implement an online fundraising platform. Lead: Development Director. Deadline: 6\/15\/17.<\/p>\n
Tactic 4: Create an editorial calendar mapping out all 2018 mail and email solicitations, plus major marketing communications. Lead: Development Director. Deadline: 9\/15\/17.<\/p>\n
Goal 2: To increase fundraising revenues by 25% and raise $1,000,000 in FY 2017\/18.<\/p>\n
Objective 1: Increase revenues from foundations by 30%. Tactic 1: Research, qualify, and prioritize 10 new foundation<\/p>\n
sources each year. Lead: Development Associate. Deadline: 6\/30\/16-18.<\/p>\n
C r e a t i n g a f u n d r a i s i n g P l a n 9<\/p>\n
5. Gather Your Prospects<\/p>\n
Donor prospecting is absolutely crucial to fundraising. So much so that we\u2019ve dedicated all of Chapter 5 to it. Your prospect list will be critical to the development and implementation of your fundraising plan. You will need it to assess your current donors and determine where to focus your efforts, as well as to identify new opportunities. Ideally, this information should be stored in your CRM or database (see Chapter 6), but you should export it into a spreadsheet to visualize the full list and better prioritize and discuss it with your team.<\/p>\n
Assign a lead fundraiser to each prospect, so you know who is accountable and can provide updates during regular reviews. Create separate tabs for each type of prospect, especially foundations, companies, and individual donors. Add to the list regularly and review it frequently with your team to measure progress and identify fundraising opportunities. As detailed in Chapter 5, it\u2019s helpful to implement a ranking system, even a simple one, to help you prioritize prospects and determine where to focus your efforts. How connected to your cause and organization are they, and what\u2019s their<\/p>\n
Tactic 2: Prepare Letters of Intent and\/or grant proposals according to foundation deadlines. Lead: Development Associate. Deadline: FY according to required deadlines.<\/p>\n
Tactic 3: Maintain schedule for research, qualification, prioritization, grant preparation, and follow-up. Lead: Development Associate. Deadline: Ongoing.<\/p>\n
Objective 2: Build a strong and compelling Case for Support for fundraising purposes. Tactic 1: Consult with staff, volunteers, donors, and clients<\/p>\n
regarding why they give and key messages. Lead: Development Director. Deadline: 3\/30\/16.<\/p>\n
Tactic 2: Draft key messages and circulate in small but representative group for feedback. Prepare final Case for Board Approval. Lead: Development Director. Deadline 6\/30\/16.<\/p>\n
Tactic 3: Develop mini Cases of Support for each program. Lead: Development Director. Deadline: 9\/30\/16.<\/p>\n
Tactic 4: Communicate Case messages through various formats, including print, proposals, social media, website, marketing, etc. Lead: Development Director. Deadline: 9\/30\/16.<\/p>\n
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giving capacity? Focus first on people in your inner circle, such as your board and close connections. Then think beyond the usual suspects, like the wealthy donors in your town known for their philanthropy. Try to identify people off of the radar who are connected to your cause, and devise a strategy for your most important prospects.<\/p>\n
6. Keep It Alive<\/p>\n
Once you\u2019ve spent precious time and resources creating a solid fundraising plan that secures board approval, the worst that can happen is for it to sit on a shelf. Your plan must be a living document that guides your activities, and it must be updated or at least reviewed annually. At each review, involve the board, key staff, and volunteers and evaluate whether you are on point or falling behind. This will allow you to hold people accountable, make strategic decisions, and shift tactics as needed. It will also enable you to recognize and celebrate your successes, something too few of us fundraisers take the time to do! Use your objectives to create key performance indicators and include them in your organizational dashboard, as outlined in Chapter 7, so that Assessment of your fundraising efforts is integrated into the Assessment of your overall organizational health.<\/p>\n
Conclusion<\/p>\n
Muhammad Ali once said, \u201cThe fight is won or lost before I even get in the ring.\u201d To succeed in fundraising you need to know where you\u2019re going and how you\u2019ll get there. How much money are you trying to raise? and Who are you going to raise it from? You need to be strategic and think long-term, but also clarify the interim steps required for you to succeed. Prosperity for your cause typically doesn\u2019t come quickly; it comes from hard work, a well-conceived strategy, diligent execution, and the investment of time and resources. You need to identify your revenue sources, your resources, and your prospects before you get started to ensure a more mindful approach. Be crystal clear on both your strategies and tactics, and hold yourself and your team accountable to concrete deadlines. Engage key leadership, like your board, and volunteers in your efforts, and revisit your strategy and progress regularly with everyone involved. Create the systems to measure progress, learn from shortcomings, and celebrate successes. When done right, a fundraising plan will do all of this for you; it\u2019s simply a matter of creating it thoughtfully, keeping it alive, and holding yourself to it.<\/p>\n
C r e a t i n g a f u n d r a i s i n g P l a n 1 1<\/p>\n
Do\u2019s and Don\u2019ts<\/p>\n
Do. . .<\/p>\n
. . . include as many key staff, board members, and volunteers as possible in your fundraising planning process.<\/p>\n
. . . review your prospect list in advance to ensure your goals are realistic and achievable.<\/p>\n
. . . build a diversified fundraising plan that includes goals and objectives, plus tactics that are assigned to an owner with a deadline for each.<\/p>\n
. . . review your tactics in the fundraising plan monthly.<\/p>\n
Don\u2019t. . .<\/p>\n
. . . create a fundraising plan without the input of your communications and marketing team, or one that lacks a budget to ensure implementation.<\/p>\n
. . . assume that all staff payroll, benefits, rent, and utilities are overhead or administrative expenses.<\/p>\n
. . . believe you have a fundraising plan in place if you fail to take the time to document it in writing.<\/p>\n
. . . create a fundraising plan without integrating your strategic plan into it.<\/p>\n
About the Expert<\/p>\n
Andrea McManus is president of The Development Group and a recognized leader in the nonprofit sector. With more than 29 years of experience in fund development, communications, media, public relations, and marketing, McManus has particular expertise in environments where major changes, restructuring, or transition require innovation, leadership, creativity, and an entrepreneurial attitude.<\/p>\n
Resource Review<\/p>\n
The Association of Fundraising Professionals (AFP) (www.afpnet.org) AFP is a great resource for fundraisers. They have regional chapters all over the world that produce quality events, as well as a large international<\/p>\n
http:\/\/www.afpnet.org
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conference, and a storytelling conference. You can also find helpful resources on their website.<\/p>\n
Future Fundraising Now (futurefundaisingnow.typepad.com) Jeff Brooks is a regular contributor to Fundraising Success Magazine, and his blog is full of great posts and resources. Check out his podcast, \u201cFundraising Is Beautiful.\u201d<\/p>\n
Ahern Donor Communications (www.aherncomm.com) Tom Ahern\u2019s blog is a great source for case studies, sample critiques of fundraising materials, and links to useful resources.<\/p>\n
The Fundraising Authority (www.thefundraisingauthority.com) Find helpful resources including articles, webinars, books, and podcasts. Check out their \u201cBeginner\u2019s Guide to Fundraising\u201d and the article, \u201cHow to Write a Successful Fundraising Plan.\u201d<\/p>\n
Joyaux, Simone P. Strategic Fund Development: Building Profitable Relationships That Last (3rd ed.). John Wiley & Sons, 2011. This book focuses on long-term strategic fundraising, rather than the typical transactional approach that fails to nurture your most important donor relationships.<\/p>\n
Network for Good\u2019s Fundraising 123 blog (www.fundraising123.org) Find a variety of posts and resources on all things fundraising, including the \u201cFundraising Planning Worksheet: A Tool for Creating Your Annual Fundraising Plan\u201d by Mimi Ho and Priscilla Hung.<\/p>\n
Nonprofit Quarterly (https:\/\/nonprofitquarterly.org) A print and online publication that provides articles on a variety of nonprofit topic (sample nursing essay examples by the best nursing assignment writing service)s. Check out their webinars, and sign up for their daily digest.<\/p>\n
M+R Lab (www.mrss.com\/lab) A free collection of articles and advice from a group of experienced nonprofit consultants; includes case studies and covers a wide variety of topic (sample nursing essay examples by the best nursing assignment writing service)s, including reports on industry benchmarks.<\/p>\n
The Agitator (www.theagitator.net) A great online blog from industry experts Tom Belford and Roger Craver that provides information and advice on nonprofit fundraising and marketing strategies.<\/p>\n
Idealist (www.Idealist.org) A very robust website that offers tons of links to useful resources and articles, plus it gives you access to a global community of volunteers and nonprofit peers.<\/p>\n
http:\/\/www.aherncomm.com
\nhttp:\/\/www.thefundraisingauthority.com
\nhttp:\/\/www.fundraising123.org<\/p>\n