management of not-for-profit organizations 472.31 11 fall 2014

Management of Not-For-Profit Organizations

472.3111

Fall 2014

Fundraising

Designing and Managing the Fundraising Programch 19Fogal

2 Main Points to Remember

1. If you’re good at fundraising, you will always be able to get a good job in the non-profit sector.

2. Fundraising is a skill that:• is simpler than most management skills• is harder than most management skills• takes time to get good at

Both Simpler AND Harder?

Simpler• skills not mysterious

₋ prepare the materials₋ select your targets₋ make the pitch₋ follow up₋ evaluate₋ do it all again

Harder• may not fit your personality• not much practical advice• sales skills needed• success rarely under your

control• long payoff cycle• can be

₋ discouraging₋ misunderstood₋ embarrassing₋ lonely

source of funds

decision maker

beneficiary

Why is Fundraising Needed?

commercialtransaction

the customerthe business

$

productgood

service

source of funds

decision maker

beneficiary

Why is Fundraising Needed?

nonprofit/charitabletransaction

the customerthe business

productgood

service

the client the nonprofit

donors

funders

$

society

environment

Fundraising

Steps• prepare materials• select targets• make the pitch• follow up• evaluate• do it all again

Tips• keep it simple

₋ flash rarely convinces₋ professionalism valued₋ don’t exaggerate₋ mix specific & general₋ provide options

• create₋ think₋ draft₋ critique₋ rework

Fundraising

Steps• prepare materials• select targets• make the pitch• follow up• evaluate• do it all again

Tips• donor pyramid• find linkages

₋ people₋ values₋ reasons

• collect information• keep data

Donor Pyramid

gift amount $ gifts g/ft/prospect ratio # prospects cumulative total$5,000 1 5 5 $5,000$2,000 2 5 10 $4,000

$500 6 4 24 $3,000$100 15 4 60 $1,500$50 30 3 90 $1,500$20 60 3 180 $1,200

114 369 $16,200table 19.3

GIFT RANGE CHART

ch 19: Useful Tables & Exhibits: table 19.3

Fundraising

Steps• prepare materials• select targets• make the pitch• follow up• evaluate• do it all again

Tips• use advocates• steps

1. connect2. understand why a

donor donates3. then offer something

that fulfills their goals4. hear objections5. respond

• talk/listening ratio• focus on do, not get• a “no” is OK

Fundraising

Steps• prepare materials• select targets• make the pitch• follow up• evaluate• do it all again

Tips• if “yes”

₋ details₋ feedback₋ thank-you

• if “maybe”₋ follow up

• if “later”₋ follow up

• if “no”₋ ask again in a year

Fundraising

Steps• prepare materials• select targets• make the pitch• follow up• evaluate• do it all again

Tips• hard to be clear-eyed

₋ a “no” is painful₋ a “yes” is seductive₋ tradition is powerful

• how to be clear-eyed₋ ask₋ listen₋ assess₋ write it down

Fundraising

Steps• prepare materials• select targets• make the pitch• follow up• evaluate• do it all again

Tips• annual cycles• research

₋ your organization’s past₋ similar organization’s

successes & failures₋ new initiatives

• find new ideas

Keep your hand on the plow