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Developing a Funding StrategySession 1:

Fundraising First Principles

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www.slideshare.net/damianob

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Course Outline

1. Fundraising First Principles2.Overview of Fundraising

Sources3.Developing a Case for Support

Selected Reading List

Botting, Nina & Norton, Michael (2001) The Complete Fundraising Handbook (4th Edition). Directory of Social Change Roth,

Stephanie & Ho, Mimi (2005). The Accidental Fundraiser. Chardon Press.

Sloggie, Neil (2002). Tiny Essentials of Fundraising. White Lion Press.

Burnett, Ken (2002). Relationship Fundraising. Jossey Bass Wiley.

Smith, George (1996). Asking Properly. The Art of Creative Fundraising. White Lion Press.

Create/Clann Credo (2007) The Irish Fundraising Handbook (6th Edition)

Selected Web Links

www.donorpowerblog.comwww.theagitator.nethttp://recessionwatch.blogspot.com

http://seantriner.blogspot.comwww.sofii.orghttp://conorbyrne.wordpress.comhttp://osocio.org

Warm-up Exercise

Think about the last time you made a donation of any sort…

(Flag day, church collection, raffle, pub quiz, sponsored a friend)

… and answer the following questions:

1. Who did you make the donation to?2. Why did you make the donation?3. How did giving the donation make you

feel?4. Would you give to that cause again?

Why fundraising is important

• To survive, grow & develop• Reducing dependency• Building a constituency

– Validation, legitimacy, demonstrable support

• Educating & informing• Creating a sustainable organisation

• Because your work is important


1. If you want money, you have to ask for it.

– Be clear what you want– Be aware of what the donor is able & willing to

give– Some people will say no. Don’t take it

personally– What you believe in has to bigger than what you

are afraid of

2. The personal approach The more personal the approach, the more

effective you’ll be


3. Put yourself in the donor’s shoes Think about why they’re likely to give What would they like/expect in return? What do you need to say/do to convince them

to give?

4. People give to people– Not to organisations or abstract concepts

– They give through your organisation to help the end-user


5. Fundraising is selling Show them why your work is important Persuade them to give

6. Credibility & trust– Donors won’t support organisations they

don’t trust

– They have to believe that you can fulfill your promise


7. How much to ask for A specific item of expenditure: €50 will

buy a goat A shopping list or menu of items Set appeal targets and break them down

into gifts Give examples of gifts already received

8. Say ‘Thank You’!– Promptly and personally


9. Cultivate relationships Those who gave most often and most recently

are most likely to give again It’s easier (and cheaper) to get repeat

gifts from an existing supporter than to get a first gift from a new supporter

10.Accountability– Spend the money on the purpose for which it

was raised

– Spend it wisely and see that it achieves something

Why do people give?

Why do people give?

• To solve a problem– famine, cancer, poverty

• To build something…– school, church, community centre

• … Or to achieve something– release prisoners of conscience, end child abuse

• To belong. To feel part of something– Joining Amnesty International. Taking part in a

community event

Why do people give?

• Political conviction– Supporting political parties, lobby or campaign groups

• Religious conviction or duty– Alms giving, missionaries, parish collections

• Guilt– Can be a strong initial motivator, but unlikely to lead

to a long lasting relationship

• Personal experience– A relative with cancer, a friend who died in a hospice,

growing up in a single parent household

Why do people give?

• To make someone go away

• To look good– Status, recognition. Counteract a bad reputation.

• Peer pressure– Because friends or colleagues have given

• Because they were asked– One of the most common reasons for not giving is that

they were never asked

Why do people give?

People give for many different reasons:- Some complex, some simple- Both altruistic and selfish- Different people have different motivations

- But generally, people like to give- Successful fundraising involves understanding what motivates donors and tapping into those motivations

Exercise

• Why would donors want to support your group?

• What sort of people are likely to give to your organisation?

• What would you need to do to convince them to give?

A diagram you’ll see a lot of…

The Public

Prospective Donors

First Gift

Second Gift

Regular / Monthly Donors

Major Annual Gifts

Major Multi Year Gifts

Really Big Gifts

Legacies

The Donor Pyramid

Goal as a fundraiser is to move as many people as possible up the pyramid

Impulse Habit Commitment

The 80/20 Rule

• The second most important rule in fundraising…

• 80% of income will come from 20% of your supporters

Developing a Funding StrategySession 2:

Fundraising in Ireland

The Fundraising Quiz!

1. Of the $295 bn given to non-profits in the US, what proportion comes from companies?a) 4.3%b) 10.6%c) 27.1%


2. How much does the Irish public give to charity each year?a) €100 - €150 millionb) €200 - €250 millionc) €350 - €400 million


3. Roughly, what proportion of this goes to Concern, Trócaire and St Vincent de Paul combined?a) 5%b) 15%c) 25%


4. Which country donated the most, per capita, to the Asian tsunami appeal in 2005?a) Irelandb) Norwayc) Switzerland


5. Historically, during major crises such as the current global financial crash, does giving tend to…?a) … Go upb) … Go downc) … Stay the same

Sources of Funds

• Individuals• Trust & Foundations• Companies• State• EU• Income Generation

Individual Donors

Around €350 million per year– About 2/3 of people give to charity each quarter

– An average of €125 per donor

Individual Donors

• Collections, appeals, flag days– Daffodil day, Lent

• Events– Ticket events: Balls, dinners, auctions,concerts– Sponsorship events: challenges, walks, runs

• Raffles, lotteries, draws– Private lotteries– Occasional lotteries– Periodical lotteries– Licensed draw

Individual Donors

• Direct marketing– Direct mail– Street fundraising– Internet fundraising– Direct response TV

• Major Gift Fundraising– Capital appeals

• Legacies• Volunteering

Trusts & Foundations

• About €50 million a year• Independent grant making bodies• Set-up to give money away for charitable purposes

• Tend to provide project based funding• Generally have a grant policy or funding priorities

• Generally only give to registered charities

• Require an application


• Sources of information– Philanthropy Ireland (www.philanthropyireland.ie)

– European Foundation Centre (www.efc.be)

– Annual reports, websites, publications of other similar organisations

http://www.philanthropyireland.ie/


1. Identify all the trusts that operate in your area

2. Visit their websites to find out their grant-making policies and application dates

3. Phone them up to see if they’d consider an application

• Do they support your type of work? • How often do they make grants? • What’s the procedure for application? • How much do they usually give?

Corporate Giving

• About €50 million a year– Cash gifts– Gifts in kind– Goodwill advertising– Sponsorships– Cause related marketing– Payroll giving schemes

Corporate Giving

• Local projects where the company is based

• Activities that relate to their product or service

• Opportunities to reach their target audiences

• High profile events

Corporate Giving

• Why do companies give?– Enlightened self-interest– To be associated with causes that relate to their business

– Create goodwill– To look good– Interest from board or managers– Tax benefits

Corporate Giving

• Identify potential supporters - large & small, national and local

• Identify any contacts you may have with them

• Find out who deals with enquiries and who makes the decisions

• Put yourself in their shoes - why would they support you? What will they get in return?

• Be aware of ethical issues - do you really want their support?

State & EU Support

• €1.5 billion in 2001• Much of it already designated• Government departments• Statutory bodies• Local authorities• EU programmes

State & EU Support

• Irish Fundraising HandbookCAFÉ Publications/Clann Credowww.communityartsireland.com

• Dept of Community, Rural & Gaeltacht Affairs (www.pobail.ie)

• Pobal (formerly ADM) www.pobal.ie• www.eustructuralfunds.ie

State & EU Support

Some relevant grant schemes:• Community & voluntary grants scheme (Pobal)

• Dormant Accounts Fund (Pobal)• Information, Publications & Social Policy grants schemes (Comhairle)

Income Generation

• Charging users for a service provided– Creche fees

• Providing service under contract for, say, a local authority– Being paid by local council to run a creche

• Selling goods - bought, donated or produced by supporters– Running a charity shop, selling Christmas cards

• Providing a service within your area of expertise– Advising other groups how to run a creche

• Commercial activities unrelated to your work

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