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