"Non-Profit Letter Writing Fund-Raising"
Top Ten Questions Trainees Ask 10. Are we going to finish on time? 9. When is the coffee break? 8. Will there be a vegetarian lunch entree? 7. Where are the restrooms? 6. Can I get extra copies of the handout? 5. Is it OK if I make a few phone calls? 4. Is dinner included in the registration? 3. Shouldn’t my boss be attending? 2. How are you qualified to train us? 1. Are you going to cover anything important in the next hour? » David Letterman Show Success? If you want to be successful, it’s pretty simple. There are three things to keep in mind. It’s really that easy. Know what you are doing. Believe in what you are doing. And love what you are doing. -Will Rogers Fund Raising and Philanthropy in America Fund raising is the servant of philanthropy. Philanthropy is voluntary action for the public good through voluntary association, and voluntary giving. Gift asking is based on a voluntary exchange. Nonprofits are not on easy street. Fund raisers are working harder than ever before to reach their goals. Fund raisers and volunteers need to be asking more people more often in more ways for money. Fund Raising & Philanthropy Continued Fund raisers and volunteers not only must work harder they must work smarter. Public funds pay 26 percent of the bills of nonprofits. In 1995 Americans gave away $144 billion to charitable causes. Living individuals continue to drive the growth of philanthropy giving 80 percent of the donations in 1995. Bequests accounted for only 7 percent of donations in 1995. Funding Raising & Philanthropy Continued Experts predict that money from bequests will triple in the next ten years. About 11 cents out of every charitable dollar comes from foundations and corporations (approximately 5 cents each). 44 percent of charitable giving is directed to religion and religious causes (offers a great premium - eternal life). In 1995, 69 % of U.S. households reported making charitable contributions amounting to $116 billion, or two percent, of American personal income, averaging $1,017 per household. Fund Raising & Philanthropy Continued The propensity to give tends to be related to age and income level. The 45-54 age group features the highest percentage of givers while those in the 55-64 age group give the largest average amounts. Americans who report they belong to a religious congregation give more than those who do not. Giving tends to be higher among the better educated, people who are married, people with children, homeowners, people who live in small cities (with less than 1 million people), and people whose parents gave regularly when they were young. Fund Raising & Philanthropy Continued Volunteers give more money than non-volunteers and also give larger fractions of their income. In 1995, 43% of US. households had at least one volunteer and also gave to charity. Households with volunteers made average contributions of $1,135 while those with no volunteers gave an average of $275. Fund Raising and Philanthropy Continued Volunteers are more likely than non-volunteers to be female, to be married, to be middle aged or slightly younger, to have children under the age of 18, to be educated beyond high school, to hold professional positions, to attend religious services regularly, to have above average income and access (at work) to payroll deductions People are more likely to volunteer when asked by a friend or relative. People tend to give for the same reasons they volunteer. Family Trends in Volunteering The Family Matters program of the Points of Light Foundation sponsored a mini-survey among a nationally representative sample of 1,002 American households. In each interview, the Gallup International Institute asked whether the household member and at least one other member of their family did volunteer work together. – In more than 36% of American households family volunteering is a part of family life. – This is equally true in young families (adult is aged 18- 34-), middle years (aged 35-49), and older families(aged 50 or older). Family Volunteering Continued – Family Volunteering is most likely to occur in middle income households- those where the family income is between $20,000 and $49,999. Family volunteering is occurring in 45% of these families compared to 18% of lower income households and 23% of higher income households. The most common partnership in families for volunteering is between husband and wife - 60%. 75% of volunteers between the ages of 18-34 say they do their work with some other adult, not their spouse. Family Volunteering Continued In 22% of households, adults are volunteering together with one or more of their own children who are younger than age 12-17. 35% of adults volunteer with one or more of their own children. 14% of families that volunteer together, started volunteering together, started volunteering when the child encouraged the parent to become involved (source: “Volunteering” Conducted by Gallup International Institute). Notes to Remember – Wealthy people say they would give more to charity if they had more time to study non- profit groups, and if they believed that their money would be well spent. (Philanthropic Review) – Wealthy people said they might give more if their financial advisors recommended the idea more often. 54% said their advisors never discussed philanthropy. Notes to Remember Continued – Wealthy people (80 people who had assets of at least $50 million each) said the three most pressing social ills are: » 63% inadequate educational opportunities » 42% violent crime, and » 36% tense race relations – Don’t assume that the “beautiful” people possess the greatest potential as donors. – You’ll have more success at a trade show than a ballet. – Don’t be swayed by the trappings of wealth. “The Happiest Business in the World is Making Friends.” -Austin O’ Mallery Friendships between your nonprofit and donors are the foundations upon which your future work is built Most organizations depend on far fewer relationships than they realize. Choose your future by strengthening, changing or adding relationships. Discover new opportunities in existing relationships (e.g., planned giving). Relationship building is a team effort. To improve your relationships, listen. If you don't listen, you won’t succeed. Friendships Continued Friendships don’t come naturally. Friendships are good for us: they force us to learn. Friendships define who we are. Friendships remind us that we have value, a purpose for taking up space and breathing the air. Friendships open new doors as well as new possibilities and new futures. The best friendships carry a price tag, not the least of which is time-required for growth. Secondly, commitment. Third, compromise. What Makes A Friendship? … Being side by side looking straight ahead and seeing the same things. – Friends share deep associations around something outside themselves – Friendship is based on the alignment of goals Therefore, – To build a strong relationship with a key prospect, find a way to align your goal with their goal. Four Ways to Build Friendships Awareness – Help new prospective friends know who you are and what you have to offer them. Credibility – Make sure that they can believe you. That you can perform as promised. They must see your competence line up with reality. That you are reliable. Credibility develops over time and through performance over time. Building Friendships Continued Trust – Credibility is trust that someone will perform. Trust is the bonus. It is the difference between a good donor and loyal donor. – Trust goes beyond credibility because it is that thing which creates loyalty . – Trust arrives when you believe that someone has your best interest at heart. Requires sacrificing your needs for your prospects. Building Friendships Continued Chemistry – If trust is a bonus, chemistry is frosting on the cake. – Makes everything more fun and meaningful. – Chemistry in this sense, is at work when you realize you would prefer to lose a person’s donation than his/her friendship. – The most important step in building relationships is identifying and sticking to your organization’s core message. A Few Notes on Listening Listening makes you a friend. Listening is : – a direct, tangible form of caring – a confirmation that you value a donor as a person, that you care, accept and respect them. Listen to learn, but don’t stop there. Listening Continued Listening demonstrates that you are listening . The act of listening in itself is almost more important that what you hear. Rule of thumb (80-20 rule) - Listen 80% of the time. However, without response listening is wasted. Listening is not the end. Good listening is just the means. Most important: Relationships are measured by the quality of your response. Key Methods for Raising Funds The Annual Fund Direct Mail The Special Gift The Capital Campaign The Planned Gift Grantsmanship The Ask Package Case Statement Summary of Important Points Gift Table Letter of Intended Support Keys in the Ask Package (For the Volunteer) Get right to the point. Tell prospect why you’re excited to support the campaign. Present gift chart. Suggest a level rather than an amount. Keep the conversation brief - unless prospect questions. If the answer is yes, say thank you and ask her to sign the letter of intended support. If no, ask “ would you like to make a gift at the leadership level?” If the answer is yes, “but I’m overextended right now.” She’s come through on her commitments. You just need to work out a more flexible time frame Asking for a Large Gift Take a low-key approach. Allow enough time. Send a positive message. Ask questions that encourage people to open up. Include other persons who might influence the decision. Don’t rely solely on fund raising staff. Make sure the person asking for the money is comfortable. Discuss restrictions. Allow flexible pledges. Keep donors motivated. Be careful not to get too close. Keep track of rejections. 6 Requirements in a Drive The goals of your organization must be compelling to ensure intense donor commitment. Your organization's growth patterns must be easily perceived. Your organization or its key leaders must be strongly visible to the people who support you seek. Your chief executive and/or volunteer leadership must be highly competent and totally committed, and be proven fund raisers. Your campaign needs must be specific, attractive, people oriented and have a sense of urgency. The result of your campaign must be measurable. Major Steps in the Research Process Prospect Identification Prospect Screening Prospect Research- To know the whole person “Portrait” – Basic – Biographical – Complete » Accurate, current, basic information Major Steps financial worth ways wealth are used strategy for ways to “lead” relationships giving capacity what the prospect cares about matching projects and interests persons who may influence the prospect to give More Steps Rating Data development Prospect management and tracking – Status - cultivation priority – Strategy – Solicitation - time planned for ask – Stroking - “appreciation cultivation” Eight Steps to Powerful Fund Raising Analyze Your Current Situation – Self Evaluate » Government » Management » Mission/Vision » Strengths/Weaknesses » Volunteers » Beneficiaries Limit your Weaknesses - Build upon your Strengths Eight Steps to Fund Raising Continued Broker Your Ideas and Build Support – Include Staff and Volunteers Refine the Integrated Development Plan Build Strong Leadership Implement the Plan Evaluate Your Work Create Opportunities to Celebrate – Accomplishments – People 10 Most Common Fund Raising Mistakes No written fund raising plan. Board members in name only. Board members who don’t give. Inadequate records. Failure to do your homework. Not giving top priority to individual donors. Reluctant to ask for gifts. Forgetting to thank donors. Failure to inform educate and motivate donors. Failure to seek fund raising assistance. Ten Rules for Writing Fund Raising Copy or Guideposts for Writing a Sincere Motivational Appeal Write to just one person Get the reader personally Focus on motivations involved Describe the nature of Show that you have your work widespread support Define the need Show what a big gift can Tell how the need is accomplish being met Promise a reward Ask for the contribution The Seven Faces of Philanthropy The Seven Faces of Philanthropy by Russ Alan Prince, Karen Maru File A Must Read Communitarians - Doing good makes sense. Devout - Doing good is God’s will. Investor - Doing good is good business. Socialite - Doing good is fun. Altruist - Doing good feels right. Repayer - Doing good in return. Dynast - Doing good is a family tradition. Keys Behind People Throwing Themselves into Making Your Cause a Success Confidence Offer a sense of Measurable objectives community and Unity by group action family Deadlines Leave room for dreams and mystery Rewards and recognition Keep things short Pleasurable experience Be dignified Keys Continued Offer categories, easy formulas – Ten Commandments Don’t suggest indebtedness Offer a winner Offer identifications – people like to see their names Keep (build) confidence and stir pride Any Program Seeking Popular Support Should Have: Top leadership Lofty purpose A challenging goal with intermittent deadlines Maximum involvement Respect and allowance for the factor of time Emphasis on continuity rather than change An atmosphere of optimism and universality. Proper rewards Every possible play for confidence and pride People, we need them more than money, so study them and treat them well. Make them friends and their loyalty will have its own awards. Catch the Eye Warm the Heart Stir the Mind *Every cause must ultimately do these things. Your Cause Must Be Relevant Important & Urgent Giving Giving begets giving. Giving is primarily responsive. Giving is prompted emotionally and then rationalized. Giving tends to favor round numbers. Givers tend to follow old habit patterns. Giving prospers commensurate to its challenge. Giving needs an atmosphere of optimism. Involvement It’s the big stuff and the little stuff, but most of all it’s the aggregate of all applications such as: Seeking advice Promoting meaningful visitations Asking people to join something Quoting them Asking them to make a speech Seeking their testimony Using their names Taking their pictures Raising attention Remember the Two Most Important Words… Thank you The key to lasting friendships. www.GrantsAlert.com Joe Mizereck email@example.com 850.385.0488