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Donor Donor Development and Development and

FundraisingFundraising

Dr. Jacob GordonDr. Jacob GordonKansas UniversityKansas University

May 22, 2006May 22, 2006

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Definition of Key Definition of Key TermsTerms FundraisingFundraising: The art of generating funds : The art of generating funds

through individuals and/or the philanthropic through individuals and/or the philanthropic community for specific purpose/projectcommunity for specific purpose/project

Relationship FundraisingRelationship Fundraising: Strategic activities : Strategic activities that are based on establishing relationships that are based on establishing relationships with potential givers/donors – individuals with potential givers/donors – individuals and/or foundationsand/or foundations

LeadershipLeadership: The process of influencing others : The process of influencing others in making decisions, setting and achieving in making decisions, setting and achieving goals and concurrently, it is the process of goals and concurrently, it is the process of keeping the organization togetherkeeping the organization together

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What Drives What Drives Philanthropy?Philanthropy? Three ValuesThree Values

– Generosity: The spirit of givingGenerosity: The spirit of giving– Experimentation: Desire to Experimentation: Desire to

fund creative initiativesfund creative initiatives– Freedom: Support for the Freedom: Support for the

American DreamAmerican Dream

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Why Donor Development Why Donor Development and Fundraising?and Fundraising?

Societal Changes (Demographic, Societal Changes (Demographic, Advancement in Science and Technology, Advancement in Science and Technology, Globalization)Globalization)

Challenges (Diminishing federal Challenges (Diminishing federal discretionary funds, natural disaster, discretionary funds, natural disaster, terrorist threat, social, economic, and terrorist threat, social, economic, and health needs)health needs)

Organizational Capacity-BuildingOrganizational Capacity-Building Sustainability of Ongoing Sustainability of Ongoing

Programs/ActivitiesPrograms/Activities

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Strategies for Donor Strategies for Donor Development and Development and FundraisingFundraising Organizational ReadinessOrganizational Readiness

– Governance and LeadershipGovernance and Leadership

– Needs AssessmentNeeds Assessment

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Organizational Organizational Readiness Continued…Readiness Continued…

– Business PlanBusiness Plan History and Current Position of the History and Current Position of the

Organization Organization Market ResearchMarket Research Competitive Business StrategyCompetitive Business Strategy OperationsOperations Forecasting ResultsForecasting Results Business ControlsBusiness Controls Writing Up Your Business Plan Writing Up Your Business Plan

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Organizational Organizational ReadinessReadinessContinued…Continued…– ImplementationImplementation

– Products (Results)Products (Results)

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Strategies Continued…Strategies Continued…

Tri-Sector Fund Development Tri-Sector Fund Development ApproachApproach

– Public: Government AgenciesPublic: Government Agencies– Business SectorBusiness Sector– Private: PhilanthropyPrivate: Philanthropy

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Tri-Sector Fund Tri-Sector Fund Development ApproachDevelopment Approach

Public: Government AgenciesPublic: Government Agencies

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Tri-Sector Fund Tri-Sector Fund Development ApproachDevelopment Approach

Private: Individual Donors and Private: Individual Donors and PhilanthropyPhilanthropy

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Tri-Sector Fund Tri-Sector Fund Development ApproachDevelopment Approach

Business: Corporate and Business: Corporate and Small Small

BusinessBusiness

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Tool Box for Fund Tool Box for Fund DevelopmentDevelopment Donor DatabaseDonor Database Multiple and Culturally Multiple and Culturally

Competent Channels of Competent Channels of CommunicationCommunication

Foundation DatabaseFoundation Database Federal RegisterFederal Register Sound Business PracticeSound Business Practice

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Tips (Action Points) Tips (Action Points) and Resourcesand Resources Get your house in order before Get your house in order before

embarking on fundraisingembarking on fundraising Don’t feel intimidated about asking for Don’t feel intimidated about asking for

donations for your causedonations for your cause Develop donor databaseDevelop donor database Practice relationship fundraising as a Practice relationship fundraising as a

total philosophytotal philosophy Be aware of all the research resources Be aware of all the research resources

around and available to youaround and available to you

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Tips Continued … Tips Continued … Be clear and precise about the purpose of Be clear and precise about the purpose of

your fundraisingyour fundraising Use members of your governance and Use members of your governance and

appropriate staff as part of your appropriate staff as part of your marketing strategymarketing strategy

Practice sound business policies, Practice sound business policies, including fiscal affairs, record keeping, including fiscal affairs, record keeping, and high ethical standardsand high ethical standards

Celebrate your successCelebrate your success

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Resources in Resources in FundraisingFundraising Resources Include:Resources Include:

– University Schools of BusinessUniversity Schools of Business– Books and MonographsBooks and Monographs– Professional JournalsProfessional Journals– Foundation DirectoriesFoundation Directories– Software MaterialsSoftware Materials– Conferences and ReportsConferences and Reports– WebsitesWebsites– Fund Development ConsultantsFund Development Consultants

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Resources in Resources in FundraisingFundraising

Examples:Examples:– Burnett, Ken. (2002) Relationship Fundraising. San Burnett, Ken. (2002) Relationship Fundraising. San

Francisco: Jossey-BassFrancisco: Jossey-Bass– Covey, Stephen R. (1999) The 7 Habits of Highly Covey, Stephen R. (1999) The 7 Habits of Highly

Effective People. New York: Free PressEffective People. New York: Free Press– Hughs, Arthur M. (2006) Strategic Database Marketing. Hughs, Arthur M. (2006) Strategic Database Marketing.

New York: McGraw HillNew York: McGraw Hill– Johnson, M. (1998) The Fundraiser’s Guide to the Johnson, M. (1998) The Fundraiser’s Guide to the

Internet. New York: WileyInternet. New York: Wiley– Raymond, Susan (2004) The Future of Philanthropy: Raymond, Susan (2004) The Future of Philanthropy:

Economics, Ethics and Management. New Jersey: John, Economics, Ethics and Management. New Jersey: John, Wiley & Sons, Inc.Wiley & Sons, Inc.

– Salamon, Lester (1999) America’s Nonprofit Sector. New Salamon, Lester (1999) America’s Nonprofit Sector. New York: Foundation Center.York: Foundation Center.

– Warwick, M. (2001) Ten Steps to Fundraising Success: Warwick, M. (2001) Ten Steps to Fundraising Success: Choosing the Right Strategy for Organization. San Choosing the Right Strategy for Organization. San Francisco: Jossey-Bass.Francisco: Jossey-Bass.

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Indicators for SuccessIndicators for Success

Organizational ReadinessOrganizational Readiness Effective Fundraising StrategiesEffective Fundraising Strategies Multiple Channels of Multiple Channels of

CommunicationCommunication Vision and Mission StatementsVision and Mission Statements Organizational CapacityOrganizational Capacity EvaluationEvaluation

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Questions & AnswersQuestions & Answers

You may submit questions You may submit questions pertaining to today’s web cast pertaining to today’s web cast until 5:00pm EDT, Tuesday May until 5:00pm EDT, Tuesday May 23, 2006, to the following address:23, 2006, to the following address:

cbaeta@youthdevelopment.orgcbaeta@youthdevelopment.org Answers will be posted at Answers will be posted at

www.pal-tech.com/web/cbaewebcwww.pal-tech.com/web/cbaewebcastast as soon as they are available. as soon as they are available.