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Fundraising For Non Profits William Paterson Non Profit Conference

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Presentation on fundraising for non-profits given at Non-profit and faith based conference for non-profits.

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Fundraising For Non Profits William Paterson Non Profit Conference

  1. 1. Fundraising for Non-Profits Presentation by: Victoria Halfpenny [email_address] May 12, 2009 William Paterson University Non-Profit & Faith-Based Community Conference Goal: To show individuals how to develop a fundraising plan for their organization and how to use that plan to help them raise funds.
  2. 2. What is a Fundraising Plan? <ul><li>A systematic process created to help an organization raise funds. </li></ul><ul><li>Terms to know when creating a Fundraising Plan </li></ul>Leadership Gift Campaign Prospect Major Donor Appeal Constituent Fund Solicitation Gift Chart/Pyramid
  3. 3. A fundraising plan includes a: How do you do this? <ul><li>Statement of purpose </li></ul><ul><li>Budget </li></ul><ul><li>List of potential supporters. </li></ul><ul><li>List of solicitations strategies </li></ul><ul><li>Timeline complete with tasks & assignments. </li></ul>
  4. 4. Statement of purpose <ul><li>Ask questions such as: </li></ul><ul><li>What are you raising money for? </li></ul><ul><ul><ul><ul><ul><li>General operating support. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>To start a new program. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>To improve upon an existing program. </li></ul></ul></ul></ul></ul><ul><li>What are your goals and objectives? </li></ul><ul><ul><ul><ul><ul><li>are they realistic? </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>are they in line with your mission statement? (avoid mission creep) </li></ul></ul></ul></ul></ul>
  5. 5. How much money you will need? <ul><li>Staff </li></ul><ul><li>Travel </li></ul><ul><li>Marketing costs </li></ul><ul><li>Postage costs </li></ul><ul><li>Technology related items </li></ul><ul><li>General office </li></ul>What Else? The fundraising budget
  6. 6. Other? Who are your potential supporters? Members Current Donors Labor Unions Federations Clubs Giving Circles Government Foundations Corporations Business Leaders Friends Board Members
  7. 7. Creating the Gift Pyramid <ul><li>Guidelines & facts about creating a gift pyramid: </li></ul><ul><ul><li>1 gift should = a minimum of 10% of your fundraising goal. </li></ul></ul><ul><ul><li>2 gifts should = a minimum of 10% of your fundraising goal. </li></ul></ul><ul><ul><li>4-6 gifts should = a minimum of 10% of your fundraising goal. </li></ul></ul><ul><ul><li>As gifts get smaller on the chart, the number of gifts needed will almost always increase. </li></ul></ul><ul><ul><li>Good rule of thumb is 80% of the money you raise will come from 20% of your donors. </li></ul></ul>
  8. 8. Sample Donor Gift Chart This chart was created by a donor software company called Blackbaud http://www.blackbaud.com/company/resources/giftrange/giftcalc.aspx
  9. 9. Solicitation Strategies In-Kind Events Telephone Fundraising Planned Giving Collections going from house to house. Earned Income Video Games Individual Face to Face meetings Texting/Mobile Grants Social Networking Direct Mail
  10. 10. Direct Mail <ul><li>Direct Mail - S ending a letter with a focused message to a targeted list of people, with the express purpose of eliciting a response in the form of a financial donation. </li></ul><ul><li>Mailing Types </li></ul><ul><ul><ul><ul><li>Acquisition mailing (list purchase) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Renewal mailing (good for membership programs) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Annual Campaign (sent out annually) </li></ul></ul></ul></ul><ul><li>Does it work? </li></ul><ul><li>The Direct Marketing Association claims that nonprofits have an average 5.35% response rate. Which is higher than other industries. </li></ul>
  11. 11. Grants <ul><li>Grants are one of the more popular ways organizations seek to raise money. Why? </li></ul><ul><li>We here about grants being given all the time from X foundation. </li></ul><ul><li>The idea of writing one proposal resulting in a lot of money may appear to be easy. </li></ul><ul><li>It is instantaneous and often times less time intensive than developing an individual giving program. </li></ul>
  12. 12. Facts show: <ul><li>Of all the income of all nonprofits… </li></ul><ul><li>About half is earned income: fees for service, tuition, products for sale, etc. </li></ul><ul><li>About 30% is from government programs </li></ul><ul><li>20% is from the private sector </li></ul><ul><ul><li>individuals – 75.6% </li></ul></ul><ul><ul><li>foundations – 12.4% </li></ul></ul><ul><ul><li>corporations – 4.3% </li></ul></ul><ul><ul><li>bequests – 7.8% </li></ul></ul>
  13. 13. Individual Giving <ul><li>As noted 75% of all money donated in this country comes from individuals. </li></ul><ul><li>Who are these individuals? </li></ul><ul><li>50%-80% of donors are middle and lower income. </li></ul><ul><li>Volunteers are more likely to be donors than people who don’t volunteer. </li></ul><ul><li>Most people who give away money describe themselves as religious or spiritual. </li></ul>
  14. 14. How do you get money from these individuals? <ul><li>By asking, researching and connecting. </li></ul><ul><li>Develop a Board Give/Get program </li></ul><ul><li>Do research to find out who in your area might be interested in your organization. </li></ul><ul><li>Look at your current donor pool, are there individual who may know other individuals who might be interested in your organization. </li></ul><ul><li>Call and/or meet face-to-face with current or potential donors. </li></ul><ul><li>Create a tracking system of your meetings to gage your progress. </li></ul>
  15. 15. Earned Income <ul><li>50% of all non-profit revenue comes Earned Income. </li></ul><ul><li>Includes fees for service and products for sale. </li></ul><ul><li>Does anyone here use earned income? </li></ul><ul><li>What are some examples of earned income? </li></ul>
  16. 16. Planned Giving Planned Giving refers to gifts that can be funded with cash, equity, or property <ul><li>70% of donors who made planned gifts did so because they were asked. </li></ul><ul><li>70 to 75% of planned gifts are bequests. </li></ul><ul><li>In one in five bequests donors have no affiliation with the charity. </li></ul><ul><li>Only 1/3 of donors have informed the charity of their bequest. </li></ul><ul><li>Income did not affect the likelihood that donors would make a bequest or consider making one, in their wills. </li></ul>
  17. 17. Events <ul><li>Very popular way of raising money. </li></ul>Pluses: Can receive good exposure for your organization. Good way to involve volunteers. Cultivate existing donors and cultivating new prospects.
  18. 18. How to make an event help your organization? <ul><li>Involve your board – ask them to help and bring attendees. </li></ul><ul><li>Let the press know about your event. </li></ul><ul><li>Look for in-kind gifts from individuals and corporations to help offset the cost of the event or to auction. </li></ul><ul><li>Keep track of who attended and didn’t attend the event. </li></ul><ul><li>Send a note and/or call thanking attendees for coming. </li></ul><ul><li>Don’t forget about them. </li></ul><ul><li>Remember they took time out of their schedule to come to something, so they went the extra mile and are interested. </li></ul>
  19. 19. Internet Fundraising Social Networking Example: Facebook Two ways to raise funds using facebook: Changing the Present Causes
  20. 20. Mobile Fundraising <ul><li>General Stats: </li></ul><ul><li>76% of the US population uses a cell phone. </li></ul><ul><li>18.7 billion text messages were sent in 2006. </li></ul><ul><li>http://www.guidestar.org/DisplayArticle.do?articleId=1182 </li></ul><ul><li>Successful Mobile Fundraising Appeal </li></ul><ul><li>At a 2008 Alicia Keys concert 8,000 fans (6-12% of the audience) donated over $40,000 to the Keep A Child Alive organization </li></ul>
  21. 21. Using Video Games to Raise Funds and Awareness <ul><li>Wolf Quest is game where individuals learn about wolf ecology by living the life of a wild wolf in Yellowstone National Park. Individuals must ensure the survival of their pack by finding a mate, hunt and raise pups. From the Minnesota Zoo and eduweb under a grant from the National Science Foundation. </li></ul>
  22. 22. Back to the Development Plan <ul><li>We now know: </li></ul><ul><li>How much money we need. </li></ul><ul><li>Who we will ask. </li></ul><ul><li>How we will ask. </li></ul><ul><li>The last thing we need to do is </li></ul><ul><li>create a timeline. </li></ul>
  23. 23. SAMPLE FUNDRAISING PLAN Affordable Housing Fundraising Plan, 2006 Operations -- Goal: $42,000 Printing and mailing thank yous; outreach Nov/ Dec Fundraising committee, hosts, staff and board <ul><li>To recruit new members: </li></ul><ul><li>• Each board, fundraising committee, and staff recruit 5 new members = 55 </li></ul><ul><li>• 20 new members from: </li></ul><ul><li>2 house parties with follow-up contacts = 10 </li></ul><ul><li>1 annual event </li></ul><ul><li>Presentations to 2-3 community groups </li></ul>$4,200 (158 @ $27 avg) Small Gifts (new members and renewals) Printing, mailing Mar, May, Sept, Nov Staff Renewals: Send up to 3 renewal notices. Monthly email communication. Newsletter - 2x/year $4,200 (45 @ $95 avg) Mid-Level Gifts (new members and renewals) Expenses When Who Leads Strategy & Action Goal Constituency
  24. 24. Need more help to do this? In Luck there are Solutions New Jersey Center for Non-Profits YNPN – Young Nonprofit Professionals Network of NY Flip – Future Leaders in Philanthropy Support Center for Nonprofit Management The Council of Community Services of New York State, Inc. (CCSNYS) Nonprofit Coordinating Committee of New York Board NetUSA, Governance Matters and Techsoup Foundation Center Low-cost and/or Free Periodicals Direct Marketing newsletter free – comes in the mail biweekly. Chronicle of Philanthropy various different subscription rates. The Non-Profit Times Grassroots Fundraising Journal Stanford Social Innovation Review
  25. 25. Take Aways Planning is essential to any successful fundraising plan. Need help call one of the resources I mentioned above. Use all of your stakeholders to help you. This includes, board members, administrative staff, fundraisers & ______ Do Research to keep up on current trends. Don’t limit your options
  26. 26. Thank You <ul><li>Questions? </li></ul>