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Slide 1 - Greater New Orleans Foundation by jianghongl

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									 Goals for today's workshop

 Develop understanding about effective methods
 of raising money for non-profits
 Share knowledge and real-life experiences that
 others can use to increase their fundraising
 success
 Create an ongoing learning community that can
 benefit organizations' fund development for the
 long term
                 Agenda

                 Introductions
   Review Goals and Working Agreements
            Fundraising Overview
        Part I: Laying the Groundwork
• What you need before you begin fundraising
       • Sources of non-profit funding
        • Creating a fundraising plan
          Part II: How to Fundraise
   • Creating a member or donor program
            • Applying for grants
     • Generating corporate donations
          Next Steps and Feedback
General Housekeeping

     Restrooms

    Refreshments

     Parking Lot
         Working Agreements
Recognize we are all at different levels, with
 varying experiences. Celebrate the diversity and
 the learning
Cell phones on stun
Vegas Rule
Questions, questions, questions…keep ‘em
 coming
This is simply the beginning…
       Introductions:
             Name
         Organization
     One thing that you want
to learn that would make today's
       workshop worthwhile
   What is
fundraising?
 Fundraising- (noun) the raising of assets
and resources from various sources for the
  support of an organization or a specific
                  project.
- The Association of Fundraising Professionals Fundraising
                     Dictionary Online
        What is the Purpose of
           Fundraising?
  The purpose of fundraising is NOT to raise money; the
   only way you can raise money year after year is by
   developing a broad base of loyal individual donors.



The purpose of fundraising is not to raise money,
 but to RAISE DONORS.
        PART I:
Laying the Groundwork
 What are some things you
need to have in place before
  you start fundraising?
Things to have in place before you start fundraising
                  Organizational budget
                   Non-profit tax status
 Individuals (staff, board, volunteers) who are trained in
                  how to ask for money
        Knowledge of available funding sources
         Basic materials about the organization
                Knowing who you are
  Clarity and agreement about how the funds will be
   used- operating, specific projects, organizational
                     development
Private Giving to Non-Profits: $290.89 Billion




      Source: GivingUSA, “The Annual Report on Philanthropy for the Year 2010”
What are some of the pros and
   cons of raising funds
       ...from individuals?
          ...from grants?
    ...from corporate gifts?
                       Pros                            Cons
                  Money is flexible                  Takes time
Individual                                            It's scary!
 Donors      Support can grow over time

               Deepens the connection
                 between supporter &
                     organization

               It's where the money is

                Money can be sizable            Money is not flexible
Corporate
 Giving      Potential to radically change   Money is in exchange for
                a program or project                 publicity

                 Can add credibility         Corporation's interests can
                                             conflict with organization's
                                                  interest or image

                Money can be sizable           Money is not flexible
 Grants                                           Money is often
                 Can take less time              non-renewable
                                               Rejection rate is high
             Potential to radically change
                 a program or project         Easy to fall into a routine
     Earned vs. Unearned Income
earned income- (noun) money received by a
 person or organization for product sales or
             service rendered.
   unearned income- (noun) organizational
  income derived from philanthropic gifts and
investments, as contrasted with fees for service
               or product sales.
Source: The Association of Fundraising Professionals Fundraising Dictionary Online
   Creating a
Fundraising Plan
 What is a
fundraising
   plan?
              Step One:
Assess your strengths and weaknesses
             Board and board giving
                       Staff
          Existing donors and members
                 Donor prospects
          Relationships with foundations
  Relationships with corporations and businesses
       Ability to organize fundraising events
         Opportunities for earned income
   Group Exercise
Assess your strengths
  and weaknesses
      Step Two:
 Review your current
budget and your recent
 fundraising numbers
                                   Total FY 2012 Budget: $125,000
                                                FY 2009             FY 2010             FY 2011

MAJOR DONORS ($1,000+)                          $2,500 (2 donors)   $4,750 (4 donors)   $12,300 (8
                                                                                        donors)
MID-LEVEL DONORS ($250-$999)                    $2,000 (3 donors)   $3,600 (5 donors)   $5,800 (7 donors)
LOW-LEVEL DONORS (< $249)                       $1,500 (8 donors)   $3,000 (14          $4,900 (26
                                                                    donors)             donors)
TOTAL INDIVIDUAL DONOR:                         $6,000 (13          $11,350 (23         $23,000 (41
                                                donors)             donors)             donors)
Greater New Orleans Foundation                  $10,000             $0                  $17,500
Baptist Community Ministries                    $5,000              $5,000              $0
Foundation for Louisiana                        $0                  $15,000             $50,000
TOTAL GRANTS:                                   $15,000             $20,000             $67,000
Entergy New Orleans                             $2,500              $1,500              $3,500
Regions Bank                                    $1,000              $0                  $0
Home Depot                                      $10,000             $10,000             $15,000
TOTAL CORPORATE GIFTS:                          $13,500             $11,500             $18,500
Annual Dinner (Net)                             $6,000              $7,500              $12,000
Wine and Cheese Party (Net)                     $250                $0                  $350
TOTAL EVENTS                                    $6,250              $7,500              $12,350
T-Shirt Sales                                   $225                $150                $345
Ticketed Concerts & Performances                $750                $1,250              $1,150
Tuition Fees                                    $4,600              $6,750              $5,800
TOTAL EARNED INCOME:                            $5,575              $8,150              $7,295
Step Three:
 Set Goals
GOAL: $150,000
DEADLINE: July 31, 2012 (end of FY 2012)
Donor Goals:
Secure 15 gifts of $1,000 or more
Increase donor retention rate to 70%
Get at least three prospect names from each board member
Raise $80,000 total
Grant Goals:
Receive three grants of $10,000 or more
Contact each foundation at least four times during grant period
Raise $35,000 total
Corporate Giving Goals:
Identify five potential corporate sponsors with which a board or staff member has a
personal connection
Ask for four donations
Raise $20,000 total
Event Goals:
Organize one large event that can be repeated in future years
Secure sponsors that cover 100% of event costs
Net $15,000
Earned Income Goals:
Identify one project or service that will raise funds while also bringing publicity
Raise $5,000 total
    Step Four:
    Create your
fundraising calendar
AUGUST 2011                               SEPTEMBER 2011                            OCTOBER 2011
Holidays & Fixed Dates                    Holidays & Fixed Dates                    Holidays & Fixed Dates
School starts- August 15                  Labor Day- September 5                    Columbus Day- October 10
Fundraising Dates & Deadlines             Rosh Hashanah- September 28-30            Halloween- October 31
Cultivation meetings with New Orleans-    Fundraising Dates & Deadlines             Fundraising Dates & Deadlines
area donors (MARY)                        Community Foundation Grant due-           Launch Annual Board Campaign- October
                                          September 30 (STEVEN)                     15 (MARY)

NOVEMBER 2011                             DECEMBER 2011                             JANUARY 2012
Holidays & Fixed Dates                    Holidays & Fixed Dates                    Holidays & Fixed Dates
Veteran's Day- November 11                Hanukkah- December 21-29                  New Year's Day- January 1
Thanksgiving- November 24-25              Christmas- December 24-25                 Twelfth Night- January 6
Fundraising Dates & Deadlines             New Year's Eve- December 31               MLK Day- January 16
Mid-Campaign Meeting- November 17         Fundraising Dates & Deadlines             Staff Retreat- January 20-22
(MARY)                                    Last day of campaign- December 20         Fundraising Dates & Deadlines
                                          (MARY)                                    Annual Dinner Planning Kickoff Meeting-
                                          Send year-end letter- December 22         January 15 (MARY & JOE)
                                          (MARY)                                    Smith Family Foundation Grant due-
                                          Send year-end email- December 31          January 25 (STEVEN)
                                          (MARY)

FEBRUARY 2012                             MARCH 2012                                APRIL 2012
Holidays & Fixed Dates                    Holidays & Fixed Dates                    Holidays & Fixed Dates
Krewe du Vieux- February 4                St. Patrick's Day- March 17               Volunteer Appreciation Luncheon- April 4
Lundi Gras- February 20                   Fundraising Dates & Deadlines             French Quarter Fest- April 13-15
Mardi Gras- February 21                   Annual Dinner Monthly Planning Meeting-   Jazz Fest- April 27-29
Fundraising Dates & Deadlines             March 21 (MARY & JOE)                     Fundraising Dates & Deadlines
Annual Dinner Monthly Planning Meeting-                                             Final Annual Dinner Planning Meeting-
February 28 (MARY & JOE)                                                            April 16 (MARY & JOE)
                                                                                    Annual Dinner- April 20 (MARY & JOE)

MAY 2012                                  JUNE 2012                                 JULY 2012
Holidays & Fixed Dates                    Holidays & Fixed Dates                    Holidays & Fixed Dates
Jazz Fest- May 3-6                        Father's Day- June 17                     Independence Day- July 4
Mother's Day- May 13                      Fundraising Dates & Deadlines             Mid-Year Program Strategy Meeting-
Memorial Day- May 28                      Jones Family Foundation Grant Deadline-   July 9
Fundraising Dates & Deadlines             June 1 (STEVEN)                           Fundraising Dates & Deadlines
Cultivation meetings with Baton Rouge-    Send mid-year letter- June 15 (MARY)      GeneriCorp corporate funding proposal
area donors (MARY)                                                                  due- July 16 (STEVEN)
 Think quietly: How are you
doing in relation to these four
            steps?

 Of the fundraising planning
 tools just shared, what one
  thing might you try out to
   upgrade your planning?
    PART II:
How to Fundraise
Creating a Donor or
 Member Program
 Pros and Cons of Raising Money from
             Individuals

        Pros               Cons
   Money is flexible      Takes time
Support can grow over     It's scary!
         time
Deepens the connection
 between supporter &
     organization
It's where the money is
Why do people
    give?
   What makes a
  person give to a
specific organization?
 A person gives
because someone
   asked them
     to give.
To find donors, look for people who
 feel they have the ability to give,
 who believe in your mission and
  who have a connection to your
           organization.
           Then, ASK!
Where can you find
 these potential
    donors?
         Find donors
  ...By asking board members and
volunteers to refer friends and family
            ...At your events
     ...At partnering organizations
  ...On your mailing and email lists
    ...Among your existing donors
How can you reach out
to donors and ask them
       to give?
Ways to ask donors to give
          In a letter
        Over the phone
        In newsletters
           By email
     Through social media
          In person
Donation Acknowledgement Letters
                Required
             Donation amount
 Tax status & whether gift is tax deductible
                Suggested
                 Thank you
        How the gift will be used
   Other stuff your organization is doing
            Hand-written note
    93% of individuals surveyed said they would
“definitely or probably give again” the next time
they were asked by a charity that thanked them
 promptly and in a personal way and followed up
  later with a meaningful report on the program the
                    donor funded.
 Under these circumstances, 64% would give a
  larger gift and 74% would continue to give
                   indefinitely.


 Source: Simone P. Joyaux, “Unraveling Development: Thank Your Donors. And Thank Them
                    Again,” The Nonprofit Quarterly, November 3, 2009

       Article references research from Penelope Burk's Donor Centered Fundraising
Within 72 hours, send a hand-written, hand-
 stamped, hand-addressed thank you note
            on real stationary

               Sample Thank You Note:
Dear Fred,

Thank you for your thoughtful gift to Really
Important Organization! Support from someone
like you makes all the difference for us. Many
thanks.

Sincerely,
Sue Smith
Executive Director
 What is a
major donor?
    How can you
cultivate a supporter
 and inspire them to
  become a major
       donor?
Ways to cultivate supporters
   Send them personalized updates
     Invite them to special events
 Introduce them to other people at the
              organization
     Give them a tour of the office
  Introduce them to your constituents
        Talk to them one-on-one
          Tell them about you
           Learn about them
 PRACTICE EXERCISE
Telling Your Personal Story
What was easy about that
       exercise?
 What was challenging?
 Why is it important to
  continue cultivating
relationships with your
     major donors?
Ways to cultivate major donors
    Send them personalized updates
      Invite them to special events
  Introduce them to other people at the
               organization
      Give them a tour of the office
   Introduce them to your constituents
         Talk to them one-on-one
           Tell them about you
            Learn about them
     Who at your
organization should be
involved in cultivating
       donors?
What are some ways
you can keep records
 on your donors and
     donations?
Applying for Grants
Pros and Cons of Raising Money
        Through Grants
      PROS                        CONS

Money can be sizable       Money is not flexible
 Can take less time           Money is often
                              non-renewable
Potential to radically
change a program or       Rejection rate is often
       project                    high
                         Easy to fall into a routine
 Where do I find my grant?
  Online research (The Foundation
          Center, Google)

  Community & foundation listservs

Other organizations doing similar work
          Listservs With Grant
            Announcements
     Unified Nonprofits of Greater New Orleans
             www.unifiednonprofits.org
        DOVIA www. dovianeworleans.org

Congressman Cedric Richmond's government grants
    newsletter- Richmond.grants@mail.house.gov
   Greater New Orleans Foundation www.gnof.org
       Louisiana Cultural Economy Foundation
               www.culturaleconomy.org
      The Grantsmanship Center www.tgci.com
Grant Station Insider (Free with membership to LANO)
What are some things
you need to do before
you start writing your
  grant proposal?
Common documents required
       for grants
           Your mission statement
 List of board members and their biographies
 List of staff members and their biographies
  Copy of IRS determination letter and 990
         Audited financial statement
           Most recent tax forms
BEFORE YOU WRITE YOUR GRANT

 Choose the right grant
  for your organization
What are the factors you
 might consider when
 deciding if a grant is
     right for you?
Factors to consider when deciding if a grant
              is right for you
                The funder's priorities
 The funder's organizational requirements (number of
     years in operation, religious activities, etc.)
           The funder's geographic focus
                The size of the grant
    Other organizations the funder has supported
                 The funding timeline
 Whether you have the capacity to write the proposal
 Whether you have the capacity to follow the funding
                    requirements
                      GRANT PROFILE
Name:                 Date:        Organization:
Funder's Name:
Grant Name (if applicable):
Funding Priorities:
Structural Requirements & Restrictions:
Geographic Limitations:
Size of Grant:
Similar Organizations/ Programs Funded:
Application Deadline:
Date Grants Awarded:
Other Requirements for Grantees:
Application Process:
Contact Info:
Where do I find this
  information?
  The Foundation Center
      GuideStar.org
      990 tax forms
 Google/ Funder's website

When in doubt, call the
 foundation to ask!
   BEFORE YOU WRITE YOUR GRANT
Decide how you will use the money
                AND
What you will do when the grant term
                ends
                    YES:
     Grant will cover operating expenses
      Grant can support existing activities
  Grant can expand activities in a way that is
  productive and helps advance your mission

                     NO:
 Grant leads to “mission creep” or creates new
   work that distracts from your mission and
                    priorities
 BEFORE YOU WRITE YOUR GRANT

  Talk to the people who are
responsible for doing the work
    that the grant will fund
AS YOU WRITE YOUR GRANT
    Read the directions
            Length
           Format
             Font
      Number of copies
    Required attachments
Things you should NOT include
Things you can't do by yourself
BEFORE YOU WRITE YOUR GRANT

 Contact the funder with
any outstanding questions
Four Rules for Writing Fundable
       Grant Proposals
 1- Keep it concise, clear and simple
 2- Use stories, anecdotes and data to
  make your work come alive
 3- Be specific
 4- Use language that someone outside
  your field will understand
Keep it concise, clear and simple

 We request a grant of $15,000 to expand
our after-school arts education program for
   children ages 11-15. Expanding this
program will mean we can offer classes to
more students who are at risk of dropping
               out of school.
  Use stories, anecdotes and data
   to make your work come alive
 Randy S. was 12 when one of her teachers referred her to our
Tuesday afternoon painting class. She had been a good student,
 but recently her grades had dropped and she was acting out at
                            school.
Randy had a turning-point moment when her painting class worked
 together to create a mural outside our building. She learned not
  only how to express herself creatively as an individual, but also
      how to communicate with the other students and make
     compromises when they disagreed about what to create.
Now Randy is 17. She student teaches with us twice a week and
is on track to graduate. She says that she wants to go to college
                      to study art education.
               Be specific
By adding four new art classes a week to our
schedule, we will be able to work with 48 new
 students, primarily those who are at risk of
 dropping out of school within the next year.

 Since we see an improvement in grades and
school participation for the children and teens
who participate in our classes, we expect that
nearly two thirds of those students who would
  otherwise drop out will eventually go on to
            graduate high school.
 Use language that someone outside
    your field would understand
                    YES:
 We plan to use these funds to purchase clay,
           paint and paint brushes.
                       NO:
  We plan to use these funds to purchase oil
paint, acrylics and paint brushes (mop brushes,
 Filbert brushes, fan brushes, etc.), as well as
 air-dry clay since we do not yet have use of a
              professional-grade kiln.
                 Staying on track:

    Use the wording of the proposal
    questions in the wording of your
              responses.

    Q: What is the mission of your organization?

 A: The mission of our organization is to increase
the graduation rate of at-risk high school students
  by offering after-school art classes that foster
       creativity and encourage teamwork.
        Creating your project budget
   Make a list of everything you will need to
        spend money on for this project
 Use real numbers to calculate how much each
                 item will cost

EXPENSE ITEM                                      COST
Part time teacher (12 hrs/ week @ $16/ hr x 48    $9,216
weeks)
Paint, paintbrushes & modeling clay for 48        $5,472
students ($38/ student/ semester x 3 semesters)
Course description photocopies (350 color copies $312
@ $.89/ copy)
TOTAL                                             $15,000
     The importance of editing
        Make sure everything matches
         Use “the brother-in-law test”
 Have someone else review the directions and
        make sure your followed them
 Have your supervisor and the person who will
   be doing the work each review your draft
    Review a full copy, with all attachments,
arranged exactly the way the foundation will see
                       it
Immediately after you submit your
            proposal
 • Confirm that the funder received your
   proposal
 • Thank them for considering your proposal
 • Confirm when you will hear their decision
When you hear that your proposal
        was accepted
 • Thank the funder
 • Confirm when you will receive the check,
   what documentation you will need to sign
   and how they prefer to hear from you during
   the grant period
 • Start making your plan for after the grant
   period
  What are some ways to
keep in touch with a funder
  during a grant period?
   Ways to keep in touch
      with a funder
• Invite them to your events
• Send press clippings
• & newsletters
• Invite them to shadow a staff
  member or to tour the office
• Call to report on advances or
  setbacks
When you hear that your proposal
         was declined
 • Thank the funder
 • Ask for feedback
 • Ask if you can apply in the next grant cycle
 • Ask if you can stay in touch throughout the
   year and, if so, how
 Generating Corporate
and Business Donations
Pros and Cons of Raising Money from
    Corporations and Businesses

       PROS                      CONS

Money can be sizable       Money is not flexible
Potential to radically   Money is in exchange for
change a program or             publicity
      project
                          Corporation's interests
 Can add credibility         can conflict with
                         organization's interest or
                                  image
Who are your potential
 corporate donors?
     Potential business donors
• Businesses who have a stake in your work
• Businesses that would want to advertise to
  your audience
• Your vendors (bank, realtor, office supplies
  company, etc.)
• Businesses owned by your board
  members or by people your board
  members know
• Businesses in your neighborhood
  Letter of Introduction
 Who you are
 What your connection is to the
 company
 What you are asking for
 How the company will be
 recognized
 Your contact information and
 follow-up plan
What are some ways
 you can recognize
  your corporate
      donors?
Ways to recognize corporate donors
 Name something in your building after them
 Hang a plaque with their name and logo
 List them in your annual report
 List them in your event program
 Give them a quote in your press release
 Mention their name when making a speech
 Put their logo on your website or
 promotional materials
   Recommended Fundraising
    & Non-Profit Resources:
   Greater New Orleans Foundation's
    “Needs Scan Report” & Primers
Kim Klein's Fundraising for Social Change
  GivingUSA's “The Annual Report on
    Philanthropy for the Year 2010”
           Things to Remember
1. Fundraising is about raising donors first and
   foremost
2. Be prepared and make use of what you already
   have—resources, relationships, information
3. Know who you are and what you do
4. Planning is everything


                    What else?
 Review & Next Steps
Revisit agenda and Parking Lot
    One Word Reflection
   Evaluation questionnaire


 Learning Community Dates
January 5, 8:30 am to 10:00 am
January 26, 3:30 pm to 5:00 pm
February 23 8:30 am to 10:00 am

								
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