THE FUNDRAISING CYCLE. Understanding the circular, ongoing nature of fundraising
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1 THE FUNDRAISING CYCLE Understanding the circular, ongoing nature of fundraising
2 Fundraising is a cycle Fundraising is ongoing, seasonal and circular it only ends if the organization or donor chooses to end it.
3
4 IDENTIFICATION QUALIFICATION STEWARDSHIP PLANNING ACKNOWLEDGEMENT CLOSURE NEGOTIATION SOLICITATION CULTIVATION
5 Identification of Donors Types of donors and understanding their role in your organization
6 Qualification of Donors You need to know more than their name
7 CHIRP Capacity, Health, Interests, Relationships and Passion CAPACITY HEALTH INTERESTS RELATIONSHIPS PASSION Assets/Wealth Income/Cash Giving History How the donor views the health of your organization Giving Patterns Volunteerism Time Spent w/ You External or Internal Gatekeepers Influencers Experience Feel of the mission Knowledge THIS HELPS DETERMINE THIS HELPS DETERMINE THIS HELPS DETERMINE THIS HELPS DETERMINE THIS HELPS DETERMINE How much to ask for and the timing of your solicitation Their intellectual interest and the business case Area for giving or the particular project or program Who asks them for money or who guides the process Why the gift is given to a particular project
8 Example Joan has high wealth, is retired, and she is a decisionmaker for charitable giving (in fact, 2/3 of charitable gifts are determined by WOMEN!) Joan has volunteered with an organization as a committee member, board member and on numerous projects. Joan s husband recently retired and sold his company for $18,000,000. They have two children and three grandchildren.
9 Digging Deeper One of Joan s grandchildren has special needs. Joan s mother recently passed away from Alzheimer s Joan and her husband are members of the First United Methodist Church. Joan and her husband met in college at SMU. Both children went to SMU. One daughter is a physician. Joan is a Democrat and her husband is a Republican (and they never discuss politics).
10 Evaluating CHIRP TWO-MINUTE DRILL With a neighbor or your table, come up with two or three ways you can evaluate capacity, interests or passion of a donor.
11 Planning and Cultivation Always have a plan on how you will educate, cultivate and build passion in a donor.
12 Cultivation Strategies TWO-MINUTE DRILL With a neighbor or your table, come up with two or three cultivation strategies that help donors learn about your programs and eventually build passion in your mission.
13 When is cultivation finished? HINT It never is finished! HOWEVER You ll know a donor is ripe for solicitation when you see passion. The glimmer in the eye. The phrase, what can I do to help? This is an art form and not a science. You ll just know.
14 Invite and Ask Soliciting the donor AFTER strong planning and cultivation should be straightforward.
15 Impact and Outcome Giving Tie an outcome to a price tag: For $1,000, you can buy textbooks for a year for a college student on scholarship. Because of your $50,000 gift, you will feed 35 senior citizens each and every day for an entire year.
16 Negotiate and Close Negotiate with the donor by understanding their commitment levels and their willingness to participate
17 NEGOTIATION Express Views Give them options Collaborate in the decision Come to agreement Clarify donor intent, interests and passion about the project Have options available to achieve results and speak to the donor s interests Work together. Describe an agreement on the donation, when it will happen and how it will be used. Make a draft/tentative offer Sign the agreement or solidify the donation Bring all details to closure. Leave no ambiguity.
18 Acknowledge and Steward Properly THANK your donors and let them know how their gift is being used and the IMPACT of that gift.
19 Stewardship THE MOST IMPORTANT PART OF FUNDRAISING Donor attrition kills programs. Seek to RETAIN donors don t lose them because of bad stewardship. TWO-MINUTE DRILL Come up with three ways of thanking a donor beyond just sending them a tax receipt for their gifts!
20 Start the Process All Over Again! First-time donors are hard to get. Keeping them is harder. Work to ensure the donor becomes a long-term sustainer.
21 IDENTIFICATION QUALIFICATION STEWARDSHIP PLANNING ACKNOWLEDGEMENT CLOSURE NEGOTIATION SOLICITATION CULTIVATION
22 Questions and Answers
23 Daniel Billingsley (405) Oklahoma Center for Nonprofits okcnp.org
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