Fundraising Exam
bequests
A gift made from a person's estate following their death
Outright planned gift
A gift that involves complex assets, depends on the stock market or real estate and may require assistance from financial experts.
major gift
A large gift (varies between organizations) of $10,000 - $100,000 or more.
leadership annual gift
Larger than an annual gift (varies between organizations); usually a gift of $1,000 or more.
cultivation visits
Undertaken with a qualified prospect to advance the relationship and pursue common interests
Campaign or special project fundraising:
Used for soliciting special gifts More time and effort is spent cultivating and soliciting Lower volume of solicitation
Primes
people in the best position to guide and carry out the most appropriate foreground and background initiatives
"Aware Public"
"Aware Public"- Those aware of the organization, but aren't significantly involved. Includes clients and customers, small donors, etc.
Solicitation Method
- direct mail -phone solicitation -evens -electronic communication - social networks -online fundraising -crowdfunding (go fund me )
cultivation partners
- natural partners - primes -secondaries - prospect manager - relationship manager - major gifts officer
gift table
-useful for planning annual fund shows where efforts should be increased
cycle of major gifts
1. identify 2. cultivate 3. solicit 4.thank 5. steward
non-profit
3rd sector
non-profit revenue sources
40% fees for services 30% gov. grants 20% private contributors 10% other
pareto's principle
80% of gifts comes from 20% of donors toward the top of the pyramid (recently been restated as 90/10)
Dual-Incentive Method
A company asks a consumer to make a gift, but offers incentive if they do. A company might offer a discount on their product for a donation. Builds consumer loyalty.
licensing agreements
A contract that permits a for-profit company to use a NPO logo in return for a royalty payment. Attracts more purchases. NPO can be associated with values of company creating product.
Expendinces
A promise a donor makes to provide support to an organization at some future time, usually through a bequest, life insurance or a retirement plan.
3 objectives of annual giving
Acquisition of new, first-time donors Renewal of support in subsequent years (developing regular donors) Upgrading gifts, moving donors toward the major gifts level
combined campaign
Combines both Capital Campaigns and Comprehensive Campaigns Ex: might include the annual fund and endowment but no building projects.
The Proud Supporter Method
Company makes gift, not tied to sales of product or consumer action. Similar to Traditional, except company is just "proud supporter" and seen in product displays.
Buy One- Give one Method
Company promises to give a product if you buy a product. Toms Bearbottom
Consumer Pledge Drives
Company pushes consumer to pledge a gift to a social issue. Corporate can offer to match. Includes round up & grocery store donations.
corporate foundations
Corporate foundations: established with funds from a public corporation.
letters of inquiry
Cover Letter- amount of money requested and grant period. Signed by individual responsible for signing grant contracts on behalf of the grant applicant. Project Description- why the project is need, who will be served, what will be accomplished. Budget- Documented line-item revenue and expense budget, showing all projected sources of funds for the project over proposed grant period. Financial and programmatic sustainability plan Plan for evaluation and dissemination of the project's results Information about the organization seeking funds- names and titles for key staff, names and professional affiliations for members of the board of directors, legal classification (proof of 501(c)(3) status), history, and recent accomplishments.
Volunteerism Rally
Encourages consumers to volunteer Can receive goods or services Not tied directly to product, but to consumer loyalty and website traffic
Components of a proposal
Executive Summary - Statement of your case and summary of the entire proposal (1 page) Statement of Need- Why this project is necessary (2 pages) Project Description- Nuts & Bolts of how the project will be implemented and evaluated (3 pages) Budget- Financial description of the project plus explanatory notes (1 page) Organizational Information- History and governing structure of the nonprofit, its primary activities, audiences, and services (1 page) Conclusion- Summary of the proposal's main points (2 paragraphs)
comprehensive campaigns
Fundraising is used to promote various priorities. This includes capital projects endowment, programs, capacity- building initiatives, annual giving
types of bequests
General Bequest: Amount of money or percentage of an estate to go to charity Specific Bequest: A particular asset or item to be given to the nonprofit Residuary Bequest: Addresses what's left of a person's estate after the distributions have been mad Contingent Bequest: Money or an asset will be given to the charity only if another beneficiary does not survive
cause-related marketing
General term for relationship between all NPO and Corp. An arrangement under which company support is tied to transactions. Consumption Philanthropy Fixed cost donation based on product purchase.
capital gift
Gifts that add to the organization's physical capital (buildings or equipment) or financial capital (endowment).
regular gift
Gifts that are made on an annual basis or more frequently than an annual basis. Regular gifts are usually made based on the calendar.
special gift
Gifts that are made on an annual basis or more frequently than an annual basis. Regular gifts are usually made based on the calendar.
restricted gift
Gifts that are made to support a specific program/activity or to meet the organization's capital needs.
unrestricted gift
Gifts that are used at the discretion of the organization. Mostly used for general operating purposes.
Deferred Gifts
Gifts the donor makes now, but are not available to the organization until a future time, generally after the death of the donor or some other individual.
fundraising pyramid
Helps analyze an organization's fundraising situation The organization can rise through the pyramid over time Shape/size of pyramid can change over time Helps show an organization's strengths and weaknesses
5 I's of Cultivation
Identifications Interest Info Involvement Investment
independent foundations
Independent Foundations: a foundation not associated with a corporation (family foundations)
Capital campaigns
Objectives are towards a single capital project. (ex. A new building) The campaign generally consumes all of an organization's fundraising efforts.
discovery visits
Qualify potential prospect with regard to the "I" in LAI, that is, to determine interest, and also to obtain additional information and insight that will add to the existing research regarding the individual's financial capacity
annual gift
Smaller gifts that are usually unrestricted by the donor and is used towards the organization's annual operating budget. -Usually repeated on a regular basis (annual basis).
speculative fundraising
Strategy used for soliciting lower level gifts (one-time gifts, annual gifts, etc.) Little time devoted to cultivation High volume of solicitation
ultimate gifts
The largest gift a donor will give in their lifetime. Ultimate gifts are based on the donor's circumstances. They are sometimes gifted as a bequest but can also be made in the donor's life.
Fundraising
The raising of assets and resources from various sources for the support of an organization or a specific project
Theory X
Theory X (negative view) Workers are lazy, resistant to change, and not concerned with organization's needs. Very directive approach
Theory Y
Theory Y (positive view) Workers are capable of self-motivation and self-direction. More autonomy, seek to unleash human potential
active public
Those most involved with the organization. This includes the governing board, staff, volunteers, major donors, etc.
latent public
Those who have an interest in the issues the organization addresses, but have no connection to the organization itself
Corporate Social Responsibility
Treatment of employees Environmental impact Community image Overall ethical behavior Enhances society
nurturing fundraising
Used for soliciting ultimate gifts Organization works with donor to prepare for a lifetime of involvement or support Cultivation is already so strong, solicitation may not even be needed
Consumer-Directed Donations
Variation of crowdfunding Allows consumers to vote on groups for a gift or prize donation. not directly related to sales, but can drive customers to website or locations to take part.
Planned
a gift involved with donor's financial and estate
Outright
a gift that is completed with a single payment
special gift
a gift that is over and above a donor's regular, annual gift
Pledge
a gift that is promised to be paid in the future
types of gifts
by amount - annual gift -leadership annual gift - maor gift -principal gift
secondaries
can also help, but not as helpful as primes
biggest recipients of donations
churches
Natural Partners
close and influential relationship with donor prospect and are willing to be helpful in cultivation
domino model
communication increases knowledge leads to a positive attitude results in desired behavior
Donations With Label or Coupon Redemption
consumer submits online or in a store and uses a code that comes with a product
LAI
defining prospects more narrowly L- linkage a -ability i - interest
giving societies and donor club
different sections of giving that gives benefits to those different level of donors (can be dangerous quid pro quo issues)
cajorn or scolding model
donors are presented with messages in both positive and negative formulations
how non-profits make money
earned income, grants, donations, gifts-in-kind
relationship manager
emphasize the importance of maintaining relationships
Donation With Consumer Action
events Not directly tied to product, but can be to a cause.
private foundations
give money to people to do their work
non-profit structure
governed by board of directors
major-gifts officer
handles all things major-gifts
reasons of giving
individual needs social influences "The Joy of Giving" Norm of reciprocity empathy identification tax advantages accountability
principle gift
large major gift ($1 million gifts or more)
4 sources of support
living individuals (72%) estates corporations foundations
tax issues
nonprofits do not pay federal taxes nonprofits may pay state taxes non-profits must complete a IRS form 90 annually
donor-advised funds
offered by funding intermediaries, such as community foundations and charitable entities affiliated with commercial wealth management firms
by donors method in making the gift
outright pledge planned
Philanthropy
overall good of public. focuses on rebuilding a social issue
public charities
own programs doing their own work
gifts of appreciated property
owned assets that have gone up in value since they bought them
charleston principle
principal place of business in the state and uses internet to solicit contributions in that state must register in that state
buisness
private sector
inclination or discernment
prospects are guided to be self-reflective in order to discover what gifts will be most fulfilling to them (i.e Is there something you want to do with your wealth? - That fulfills the needs of others)
charitable lead funds
provides immediate support for a nonprofit organization
government
public
two types of 501(c)3 organizations
public charities public foundations
contemporaneous acknowledgement
receipt from organization (not needed for quid pro quo and gifts of property)
Foundation giving
reflects interest of founders (family foundations or independent foundation)
by donor's perspective
regular gift special gift ultimate gifts
stewardship
relationship building and communications that take place after the gift has been received
characteristics of individual donors
religion gender age education marital status income
corporate philanthropy
responsible to stakeholders (direct gifts, foundations partnerships)
solicitation strategies
speculative fundraising campaign on special project fundraising nurturing fundraising
prospect manager
staff manager, fundraising professional
Charity
to meet current human needs. immediate response typically for relief or rescue
by purpose
unrestricted gift restricted gift capital gift