Fundraising Basics for non Fundraisers
Fundraising, simply put, means raising revenues (funds) to support a mission. "How do we do that?" asked a physician on our Board of Directors, "that's not exactly my area of expertise." If you're already a fundraising professional, the answers are clear. But fundraising can be very intimidating to many people. Chances are, selling wrapping paper door-to-door is just not enough to support your organization in today's world.
Good News! Everyone on your Board is already involved in fundraising! Whether they help recruit staff/donors/volunteers , are members themselves, contribute to the planning, volunteer on special events or major gifts, or simply let others know about the mission. The key to effective fundraising is communication. The message you send out to others must be clear, honest, consistent, and above all, reflect the mission itself. Everyone involved must be “on the same page” and communication channels must be very open. This being said, there are a few steps to follow:
Your Donor Database
Using your current donor database, the organization must identify key donors (first, by age and usefulness) and cultivate relationships with them. Visit them, if possible, or drop them a hand-written note card to let them know you appreciate them. Incorporate stories from the ministries/clients, donors, and staff – make it personal and real. Put yourself in the donor's seat: what’s in it for that donor? Find out what part of your mission motivates them to give and what would be most helpful and beneficial to them? You can do this easily by surveying your donors or via networking.
The new generation of donors are very different from the 40+ database. What motivates them to give and the communications used are very different. It is quite often the $20 donor who ends up giving more in a lifetime than the 60-year-old with planned giving. Cultivate the small seeds, too! Like a farmer with several different fields, you may use different “fertilizer” on each field, but care for every seed for the largest harvest.
Donations
Donations can come in all sizes, from one dollar to entire estates. There is restricted revenue, in which revenues are used for a donor- specified purpose, and un-restricted revenue, which is more general and used for the organization’s overall operations/efforts. As far as finances go, your budget and financial reports should be easily segregated to analyze development efforts. Your Financial Officer should have a firm understanding of development, fundraising, legal issues and reporting.
The Development Plan
Every organization should have a development plan – with specific and reasonable goals for 3-5 years. The plan must also include strategic steps to attain those goals, as well as the key staff and resources involved. Quite often, the plan includes a brief summary of research conducted (including what strategies comparable organizations are using and what has worked/not worked in your own history). This plan should be reviewed with the Board and key staff and can be revised as needed. Writing the plan is usually a joint effort between the organization's Director, Development Director Director and any other key personnel directly involved.
Show Me the Money!
There are many, many ways to raise money to fit every budget, every organization. Some organizations sell a product or publication. Others “sell” without ever having a tangible product (for instance, sponsoring a student or buying a virtual cow for a village). Conventional sales include bake sales, auctions, community cookbooks, spaghetti suppers and chicken dinners, bazaars and flea markets, raffles…Other traditional fundraising methods include major gifts, capital campaigns, planned giving, direct mail, and grant-writing.
Cutting-edge fundraising includes: interactive websites and mobi sites, text donations, social/viral networking, virtual events, email campaigns and e-newsletters, recruiting sites (such as FirstGiving), charitable credit cards, gift card donations, clickrewards/netcentives-type sites, internet ads, online seminars and presentations…
Free or low-cost advertising and marketing (for example: most outdoor advertising companies have a non-profit/community-service program where they will give your organization free space on unrented billboards.), bartering with service providers, profitable special events/sales, community involvement, personal 1:1 relationship building, positive use of free media, grant-writing (both gov’t and corporate), recruiting and motivating volunteers, and using the internet/mobi to fundraise should all help to keep expenses low.
One method of fund-raising often ignored is the use of public/mass media – it’s free and, with proper relationships built, can be 100% positive. Corporations are also finding it beneficial to give. Establish a corporate giving program and meet with local companies, offering a grant proposal beneficial to both parties.
Concerns
Pitfalls/Concerns include: upcoming changes in the postal system; local law/permits must be obeyed; establishing credibility online is more difficult than locally and internet regulations are complex; and the challenge of economic crisis, which has created a worldwide decline in philanthropy. Once you recognize these issues and create your plan, fear not.
Focus on the rainbow, not the storm clouds. While there are several factors negatively affecting non-profits today, chances are your mission has a wonderful edge! You are not alone. With the right information and a little motivation, your Board will be insightful and open to new ideas.
3 Keys to Success
Communication, Motivation, and Customization (making sure you choose the most effective methods of fundraising for your specific mission). These 3 areas greatly contribute to success. Stay abreast of new research and strategies through AFP, Non-profit Times, The Foundation Center and Guidestar, and more. (I have increased a non-profit’s giving by 72% in one year by integrating just 6 fundraising strategies on a budget of $50,000, with a database of 90 active donors.) A little change can add up to big revenue!
