Introduction to Fundraising and the Development Process

Presented by:

David R. Bixel, President

Semple Bixel Associates, Inc.

October 1, 2004

PRESENTED FOR THE TRUSTEE INSTITUTE FOR THE

NEW JERSEY STATE LIBRARY

OVERVIEW OF PHILANTHROPY

2003 GIVING: $240.72 BILLION

Source $ Raised

(Billions)

% of Total

Individuals $179.36 74.5%

Foundations $26.30 10.9%

Bequests $200.96 9.0%

Corporation $13.46 5.6%

1

Why People Give• Personal concern

• Belief in institution

• Confidence in leadership

• Agree with plans

• They were asked

• Tax considerations

Why People Don’t Give• Don’t value mission• Don’t believe organization

is stable• Absence of powerful

trustees/volunteers• Concerns about

management• Wrong people asked• Inadequate cultivation• Failure to ask – or for

specific amount

PUBLIC RELATIONSThe Foundation for Fund raising

• Communication must precede fund raising. Potential donors must be aware of:your mission and goalshow you plan to achieve your goalsbenefits your organization provides to

the community

BUILDING A PUBLICRELATIONS PROGRAM

• Determine your market for communication

• Develop a plan for public relations

• Determine channels of communication

• Evaluate

Components of the Development Process

R e co rd s/S ys te m s

N e tw o rk ing

L is t C o m pila tionIn d ivid u a ls

F o un d a tio nsC o rp ora tio ns

P R O S P E C TID E N T IF IC A T IO NA N D R E S E A R C H

A d v iso ryC o m m itte es

N e w s le tte rs

C U L T IV A T IO N

P la nn ed G iv ing

T e le m arke ting

S p e cia l E ve n ts

D ire c t M a ilM a rke ting

P e rso n to P erson

S O L IC IT A T IO N

S ta tus R ep o rts

A ckno w led g e m e n ts

R e ce ip ts

F O L L O W -U P

P e rio d ic V is its

A n n ua l R ep o rts

S im ila r to cu lt iva tiono n ly ta ke s p la ce

a fte r g ift is re ce ived

S T E W A R D S H IP

1 1

T H E C A S E S T A T E M E N T

M IS C E L L A N E O U SC O R R E S P O N D E N C E

F A C T S H E E T

B R IE F P R O P O S A L

C O R P O R A TIO N S

P R O P O S A L SG en era l S u p p ortP ro jec t S u p p ort

F O U N D A TIO N S

V O L U N TE E RIN F O R M A TIO N K IT

G E N E R A L P U R P O S EB R O C H U R E

G E N E R A L

B R O C H U R E

L E TTE R C O P Y

D IR E C T M A IL

JO U R N A L

IN V ITA TIO N S

S P E C IA L E V E N TS

N E W S R E L E A S E S

P R E S S K IT

N E W S M E D IA

P U B L IC S TA TE M E N T(U se w ith se lec ted p rosp ec ts

(U se as o rien ta tion p iece )

IN TE R N A L D O C U M E N T(In te rn a l u se on ly)

PROSPECT RESEARCH

Basic Principles: System for research begins with

determining internal and external constituents

Process is cumulative and on-going Confidentiality, accuracy timeliness

of data is critical Prospect identification is every

board member’s responsibility

SPECIAL EVENTSFRIENDS OF THE LIBRARY

GROUPS Keys to Success:

ProsConsFactors to Consider

FUND-RAISING TECHNIQUESDIRECT MAIL MARKETING

• Objectives:Donor AcquisitionDonor RenewalDonor UpgradesCultivation

THE ANNUAL PLAN

Identify Sources of Potential Support

Evaluate Potential of Each Source Determine Your Goal Choose Solicitation Techniques Develop Your Donor Strategies Develop Your Annual Timeline Set a Fundraising Budget

Capital Campaign

Keys to Success:ProsConsFactors to Consider

BOARD RESPONSIBILITIES IN FUND RAISING

• Make personal commitment to organization and to developmentprogram

• Give commensurate with ability• Provide leadership/time to fundraising• Develop a plan and set goals• Establish a fundraising committee of the

board if needed