1

FUND RAISING LeAp Board of Directors

Bonnie OsinskiApril 4, 2014

2

1. We will have a shared understanding of some basic fundraising principles, especially those that relate to the LeAp board.

2. We will have a common framework or language in which to address fund raising challenges

3. We will identify areas for building board fundraising skills

4. Each board member will leave with at least on doable fundraising task for us to review at the next meeting or solicitation role play

Objectives

3

Basics

In 2012, private contributions totaled $316.23 billion

Foundations - 15% Corporations – 6% Bequests – 7% Individuals – 72%

4

The Circles

The following slide was used to generate discussion at the meeting. I have added several slides, titled “The Circles” to explain some of the concepts represented by the concentric circles model.

5

The Circles6

The stronger the central core; the stronger and more effective are the organization’s outreach and fundraising activities

All fundraising activities should be managed so they strengthen the core

The stronger the core; the stronger the message you can send – think of a radio signal going out from the center

Support Center 6/27/11 Bonnie Osinski

7

The Circles

The farther away from the core; the more expensive it is to raise funds

The most efficient, cost-effective way to raise the largest gift is one person asking a peer in person.

8

The Circles Money alone doesn’t get a funder into the

core; those in the core must have the capacity to reach out to others.

Government doesn’t make it no matter how much it provides

Foundations and corporations are closer in because they can help with outreach

The actual distribution of funding organizations and individuals across the circles will be different for each organnization

9

The Circles Public relations is directed at the outer

core and the costs should not be factored into direct fundraising expenses or calculations of return on investment

Without good public relations and overall agency communications; the fundraiser has to spend more time working in the outer, more expensive rings

10

Individuals The most reliable, cost effective source

of funds Validate your reason for existence Advocates for your cause Volunteer assistance Potential leaders Can leverage other support Your power base

11

THE BOARD HAS TO RAISE MONEY!!!

SO GET OUT THERE AND START ASKING PEOPLE FOR MONEY

Too Scary

12

The “Ask”

Actually a small part of an ongoing process Know the donor well Should never be considered a one time event Specific dollar amount Solicitors should be well trained and prepared The major gift prospect should not be

surprised by the reason for your visit

13

FUND RAISING MYTHS Tax deductibility is a prime motivator Foundations and corporations give the most money People will give because yours is a good cause It’s all common sense We should be careful not to bother donors too much All we need to know is how wealthy a prospect is Philanthropy is decreasing We should back off when the economy is weak We can’t raise money without outstanding

brochures, videos and other materials.

14

What is fund raising? The raising of assets and resources

from various sources for the support of an organization or a specific project.

Association of Fundraising Professionals

The planned promotion of understanding, participation, and support

Harold J. Seymour

The gentle art of teaching the joy of giving

Henry Rosso

15

It’s not about the money• The money is a means to an end

• Fund raising is not a financial transaction

• The donor is not a cash machine

• It’s about relationships

16

L I ALinkage

Interest

Ability

A prospect must have all three

17

Linkage Interest Ability

We need to write to Bill Gates. Let’s review the Forbes 500 My neighbors have two children in public school My friend is a graduate student at Teacher’s

College Scientists should be interested in our programs My brother-in-law owes me I know the CEO of a big corporation

18

Why donors give

They care about the cause They can make a difference They feel financially secure They trust that the organization will use

their contributions efficiently They are solicited by someone they

know and trust

19

Why donors stop giving

Over solicitation No information about how the gift was used Little or no communication outside of

solicitations Household circumstances changed Priorities shifted to other causes Organization changed leadership or activities Try asking them why

20

Donor centered fundraising Your organization is the means by which

donors and volunteers live out their philanthropic interests and aspirations-Simone Joyoux

Goal: A mutually beneficial relationship

The key is to discover what the donor is seeking

You find that out by building the relationship

21

Getting a good start

The difference between acquiring a donation and acquiring a donor

How do we define success?

Emphasis on connecting with those who care about your cause

22

Start where you are Board - staff - neighbors – beneficiaries –

former clients – alumni – etc. Ease the burden of soliciting your friends by

turning them over to another board member after the initial contact

Who cares about you? Who is interested in your work? Who benefits?

Research reinforces and informs, but is not a good place to start with people you don’t know.

23

Getting closer

Donors who care and become involved are likely to work on your behalf

Those who care and work on your behalf are likely to become donors

24

Cultivation events Targeted invitation list Advance planning by board and staff Compelling presentation about your work Educational seminar on your area of

expertise Many staff, board, supporters on hand to

give attendees individual attention Keep track of what you learn from attendees Follow up calls within a week

25

Individual Meetings

Board member, CEO, program staff On site Invite to in-house event or class One-on-one lunch Ask their advice

26

Direct solicitation

The result of cultivation over time Donors start by making smaller gifts and

build a stronger relationship Choice of solicitor is key Peer-to-peer is best for top level gifts; Who does the asking depends on what

you have learned about the donor

27

Keep your donors

The first gift is the most expensive in terms of time and money

It costs up to 10 times more to reach a new donor than to successfully communicate with a current donor

Direct marketing by itself is ineffective as a retention strategy

28

Keeping your donors

Major donors should get ongoing individual attention

Provide donors with many different ways to become involved with your organization

Learn all you can about your donors’ interests and the way they want to relate to you

A database that can manage the information we get from as many sources as possible is essential.

29

Some key concepts

Value the relationship for its own sake

Consider individual philanthropy as an ongoing process that can involve different means of fundraising

Learn as much as you can about the donors needs LISTEN!

Communicate only when you are asking for money

Try to bring a donor around to your way of thinking

Get so caught up in techniques that the individual donor gets lost

DO DONT

30

Possible board tasks Select at least two; current donors, prospects, a friend

who does not know LeAp, an artist who works with LeAp, and artist who doesn’t work with LeAp, someone you think should be interested, a corporate executive, a fellow employee, one of Ila or Alice’s long time donor friends, others for: Meeting Advice Impressions about LeAp Interest in learning more Interest in becoming more involved Referral to someone else who may be interested Why/why not

31

Suggestions More contact / follow-up with existing donors Database for donor records Intern to manage donor database Better use of email and social media

Video / sound clip Manageable tasks for board members that do not involve asking

Calling donors / cultivate relationships Professional fundraiser (part-time )?

Senior, experienced, professional Robin Hood as possible funding source for fundraising start-up? Add this in the long-term strategic plan

Monthly email – content for board members to forward to friendsKeep growing this list