Relationship Fundraising
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- Charla Booker
- 6 years ago
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2 Relationship Fundraising Relationship Fundraising Defined The Donor Pyramid Finding New Donors Fostering Donor Loyalty Importance of Lapsed Donors Core Donors Defined Donor Upgrading
3 What is Relationship Fundraising? Relationship Fundraising seeks to ensure more funds per donor. Relationship Fundraising does not centre around raising money. Relationship Fundraising seeks to develop the full potential of the relationship between an organisation and its supporter. Relationship Fundraising aims to make donors feel important, valued and considered. Relationship Fundraising is a long-term process.
4 10 Key Principles 1. Fundraising is not about raising money. It's about meeting needs and bringing about change. 2. People give to people, not to organisations or even causes. Fundraising is a people business. Personal requests work best. Fund development is people development. 3. Friend-making comes before fundraising. 4. Open their hearts. Then open their minds. Then open their cheque books. 5. Communicate need, to bring the problem to the donor.
5 10 Key Principles 6. Set clear targets. Communicate your goals to your donors. Communicate action and success to encourage full involvement. 7. Know how much to ask each prospect for, and when. The most Important two words are thank you. Give larger donors special treatment. 8. Encourage donors to identify with your organisation, to feel a sense of share ownership. 9. Always be honest, open and truthful with donors. 10. Share your problems as well as your success.
6 (Capital Appeals, Major Gifts) raises the big dollars for specific and tangible purposes. Buildings, research funds, major pieces of equipment, endowment funds, debt reduction etc. CAPITAL FUNDRAISING (Street Appeals, Direct Mail, Telemarketing, Raffles, Special Events, Bequests) provide the ongoing revenue essential to maintaining services, funding research, educating, caring whatever the organisation has been established to provide. BUDGET FUNDRAISING
7 The Art of Fundraising BUDGET FUNDRAISING is the art of raising small amounts of money from as many people as possible, as often as possible. CAPITAL FUNDRAISING is the art of raising the most money by asking for it face to face from the smallest number of people in the shortest period of time at the least cost.
8 The Donor Pyramid $ Bequests Personal Involvement Capital Donors Large Annual Donors Renewals Direct Mail Appeals First Gifts Universe
9 Ladder of Effectiveness 1. Personal visit by a team 2. Personal visit by one person 3. Personal telephone call by a peer with a letter follow-up 4. Personal telephone call without a letter follow-up 5. Solicitation by personal letter with a follow-up telephone call 6. Solicitation by personal letter without a follow-up telephone call 7. The house list 8. Grants 9. Telephone marketing 10. Direct mail 11. Face to Face 12. Special events 13. Advertising
10 The Fundraising Cycle Starts with Awareness of Marketing Principles Strategic Checkpoint: Renew the Gift Examine the Case Analyse Market Requirements Action Checkpoint: Solicit Gift Prepare Needs Statement Action Checkpoint: Activate Volunteer Corps Prepare Communications Plan Prepare Fundraising Plan Identify Potential Giving Sources Select Fundraising Vehicle Define Objectives Action Checkpoint: Involve Volunteers Planning/Action Checkpoint: Validate Needs Statement Evaluate Gift Markets
11 Donor Acquisition Basic Principle The method of acquisition usually determines the ongoing communications strategy. Donors acquired through Direct Mail will best respond through. Donors acquired through Telephone will best respond through. Donors acquired through Internet or will best respond through.
12 Typical Direct Mail Response Pattern Weeks After Mailing % of Total Response Received Cumulative Response Received 1 st nd rd th th th th th th th th th th 2 98
13 Donor Loyalty Assumed Continuous Donor Pattern Year % Renewing Continuous Donors
14 Donor Loyalty Assumed Donor Constancy
15 Core Donors Core donors provide 80% of your income, yet represent only 20% of your donor base. Core donors can be identified by Recency and Frequency. The best time to ask for another gift is when a donor has just given.
16 Upgrading Donors 1. Partnership Program 2. Request multiple gifts 3. Accumulative Gift Recognition 4. Concentrate on Higher Levels 5. Matching Grants
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