Fundraising J. Dennis Rich, Ph. D. Professor, Columbia College Chicago jdennisrich@gmail. com 1 2/16/2018
Introduction l There are universal principles 2 2/16/2018
Fundraising l You need to adapt the material and ideas to your situation 3 2/16/2018
Mission comes first Then, Friend raising precedes fund raising 4 2/16/2018
l People give of their time and money when they feel a connection with the cause or institution they have chosen to support 5 2/16/2018
Definition: Fundraising l The activity leading to contributions from individuals, foundations, corporations or government sources. l A contribution is normally a philanthropic act, also called a charitable contribution. 6 2/16/2018
Definitions: Sponsorship l A promotional initiative in exchange for publicity or advertising. l The sponsor then judges the performance of the investment in terms of visibility, topof-the-mind awareness, and the vehicle’s reach – that is, the number of consumers receiving the message. 7 2/16/2018
Definition l Donors – a person, or entity that makes a charitable contribution. l Prospect (potential donor) – a person, or entity that has interest and the ability to make a contribution. 8 2/16/2018
Background Information During 2008 charitable giving in the United States totalled $307. 65 billion. l During 2009 charitable giving in the United States totalled $303. 75 Billion. l During 2010 charitable giving in the United States totalled $290. 89 billion. l During 2011 charitable giving in the United States totalled $298. 42 billion l During 2012, charitable giving in the USA rose to $316. 23. l 9 2/16/2018
Giving in the USA – in Billions of Dollars $316. 23 Billion (percentages are rounded) Corporations 6. 0% Foundations 15% Individuals 72% Bequests 7% 10 2/16/2018
How is the USA Different? Between 2005 and 2009, the number of 501 (C)(3) organizations in the USA increased by almost 250, 000! 11 2/16/2018
Who Got the Money? 12
In addition to giving financial support in the USA: • About 50% of all American adults volunteer their time to a charitable organisation • Americans who volunteer also tend to make larger financial gifts • 84% of all charitable contributions were given by households that also volunteered 13 2/16/2018
So What Now? For the first time in USA fundraising history, we are faced with four different “generations” and mentalities around fundraising. 14 2/16/2018
Who are these “generations”? 1. Traditionalists: Grew up with mail and NGO’s responded with direct mail solicitations 2. Baby Boomers: Grew up with television and NGO’s responded with television announcements and advertising 15 2/16/2018
Who are these “generations”? 3. Generation X: Grew up with the start of the Internet and NGO’s responded with enewsletters and e-mail 4. Millennials: Grew up with social networking and NGO’s have responded with social media platforms like Facebook Groups and Twitter’s Twestival 16 2/16/2018
Why do they all give? I feel my gift makes a difference l I am touched emotionally l I care about the cause l But how to ask them and what makes them feel connected differs with generations! l 17 2/16/2018
Development the fundraising process l Cultivation l Solicitation l Recognition 18 2/16/2018
On-going process – We want this! Cultivation Solicitation Recognition 19 2/16/2018
What All Donors want to know? What is in it for me? But that varies with generations! 20 2/16/2018
The Donor Pyramid This shows the entire spectrum of giving. And, it shows a pyramid of commitment as well - beginning with initial contact and growing into deep commitment. 21 2/16/2018
Donor Commitment Estate or planned giving _______ Investment Major Gifts ______ Donor Growth Involvement Annual Giving Donor contact Interest Information Identification 22 2/16/2018
How Next Gen Donors Prefer to Be Contacted (Percentage – people said more than one) E-Mail Fundraising Event E-Newsletter Facebook Page or Cause Networking Event In Person Solicitation Direct Mail Board of Directors Other 0 10 20 30 40 50 60 23 2/16/2018
Innovation and Tradition l Social media marketing is not a replacement for other marketing tactics l Social media marketing works best when combined with other marketing activities l Permission is important but it is not a substitute for a complete marketing campaign which includes new media and old media!
Why Donors Give” or “People Give to People” Any gift requires some thought on the part of the donor. The donor will consider whether the request for funds is legitimate and whether the institution matches with their interests. This has not changed over time! 25 2/16/2018
Fundraising Campaigns Questions to ask yourself… l Who is my audience and how do we connect? l What do you they want to know from me? l How can I help them? l What are my goals for connecting with them?
When a donor gives, he or she must answer questions such as, Who is asking? For how much? Why should I give? For what purpose 27 2/16/2018
The object of successful development is not to manipulate donor motives 28 2/16/2018
How to Eat an Elephant? l One Bite at a time! 29 2/16/2018
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