1. Donor Development
and Fundraising
Dr. Jacob Gordon
Kansas University
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Definition of Key Terms
Fundraising: The art of generating funds
through individuals and/or the philanthropic
community for specific purpose/project
Relationship Fundraising: Strategic activities
that are based on establishing relationships with
potential givers/donors – individuals and/or
foundations
Leadership: The process of influencing others in
making decisions, setting and achieving goals
and concurrently, it is the process of keeping the
organization together
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What Drives Philanthropy?
Three Values
– Generosity: The spirit of giving
– Experimentation: Desire to fund
creative initiatives
– Freedom: Support for the American
Dream
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2. Why Donor Development and
Fundraising?
Societal Changes (Demographic, Advancement
in Science and Technology, Globalization)
Challenges (Diminishing federal discretionary
funds, natural disaster, terrorist threat, social,
economic, and health needs)
Organizational Capacity‐Building
Sustainability of Ongoing Programs/Activities
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Strategies for Donor
Development and Fundraising
Organizational Readiness
– Governance and Leadership
– Needs Assessment
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Organizational Readiness
Continued…
– Business Plan
History and Current Position of the
Organization
Market Research
Competitive Business Strategy
Operations
Forecasting Results
Business Controls
Writing Up Your Business Plan
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3. Organizational Readiness
Continued…
– Implementation
– Products (Results)
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Strategies Continued…
Tri‐Sector Fund Development Approach
– Public: Government Agencies
Prohibition on Fundraising with Federal Funds
OMB Circular A‐122, Attachment B, Section 17. a
– Business Sector
– Private: Philanthropy
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Tool Box for Fund
Development
Donor Database
Multiple and Culturally Competent
Channels of Communication
Foundation Database
Federal Register
Sound Business Practice
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4. Tips (Action Points) and
Resources
Get your house in order before embarking
on fundraising
Don’t feel intimidated about asking for
donations for your cause
Develop donor database
Practice relationship fundraising as a total
philosophy
Be aware of all the research resources
around and available to you
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Tips Continued …
Be clear and precise about the purpose of your
fundraising
Use members of your governance and
appropriate staff as part of your marketing
strategy
Practice sound business policies, including fiscal
affairs, record keeping, and high ethical
standards
Celebrate your success
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Resources in Fundraising
Resources Include:
– University Schools of Business
– Books and Monographs
– Professional Journals
– Foundation Directories
– Software Materials
– Conferences and Reports
– Websites
– Fund Development Consultants
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5. Resources in Fundraising
Examples:
– Burnett, Ken. (2002) Relationship Fundraising. San Francisco:
Jossey-Bass
– Covey, Stephen R. (1999) The 7 Habits of Highly Effective
People. New York: Free Press
– Hughs, Arthur M. (2006) Strategic Database Marketing. New
York: McGraw Hill
– Johnson, M. (1998) The Fundraiser’s Guide to the Internet. New
York: Wiley
– Raymond, Susan (2004) The Future of Philanthropy: Economics,
Ethics and Management. New Jersey: John, Wiley & Sons, Inc.
– Salamon, Lester (1999) America’s Nonprofit Sector. New York:
Foundation Center.
– Warwick, M. (2001) Ten Steps to Fundraising Success: Choosing
the Right Strategy for Organization. San Francisco: Jossey-Bass.
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Indicators for Success
Organizational Readiness
Effective Fundraising Strategies
Multiple Channels of Communication
Vision and Mission Statements
Organizational Capacity
Evaluation
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