Designing and Managing the Fundraising Program (Robert Fogal)
1. Fundraising as a management concept
i. Generate revenue
ii. Affirmation of purpose (measure of donor confidence)
b. Stages of Fundraising Development (Rosso)
1. seen as “necessary evil”
2. emphasis on mass appeals (mail, telephone)
3. Objective is to “sell” organization and its activities to donors who want to “purchase” the idea or service.
4. Success measured by “making the sale”
1. seen as cultivating existing donor base
2. emphasis on relationships and personal contact
3. Objective is to engage prospect’s interests
4. Success measured by “making the ask”
1. seen as involving donors in the work of the organization
2. emphasis on volunteer leaders as vocal advocates for the organization’s work
3. Objective is to build and maintain mutually nourished relationships
4. Success is measured by “leadership gifts” (not just the lead gift—also its ability to leverage other gifts)
2. Fundraising as a management process
a. Analysis—determine level of readiness
i. Fundraising history,
ii. patterns of giving (number of donors at what level—“Gift Range Chart”),
iii. segmentation & responsiveness of donor constituencies,
iv. adequacy of internal support,
v. compelling and valid case statement
b. Planning—encourage prudent risks
i. How should case be articulated
ii. How many gifts in what amount are needed (again, back to Gift Range Chart)
1. top gift range is generally 1-2 gifts of 5% of the goal
2. Lower levels are “conventional gift amounts” (amounts donors are already giving), with subtotals for each range being about the same.
3. 70% of the goal will come from 10% of the donors
4. 10% of the goal will come from the bottom 50% of donors (but these are important—they are the seed corn for future campaigns)
iii. From whom?
iv. How should donor prospects be solicited? By whom? When?
v. What training will be required? What other expenses can be anticipated?
c. Execution—directing the energy and activities of the people in their fundraising tasks
i. Timeliness of fundraiser activities (meetings scheduled, appointments on time, etc.)
ii. Record keeping (timely processing of gifts, accurate recording of gifts, acknowledgement of gifts sent out)
iii. Report generation (progress to date and summary of activity)
e. Evaluation—What enabled or prevented us from meeting our goal?
f. Professionalism—Throughout it all, integrity and synergy with the organization should be stressed.
3. Fundraising management
a. Volunteer Leadership—most successful form of fundraising
b. Organizational readiness
i. Case statement
1. Why does organization exist?
2. What services/programs does it provide to meet the need/solve the problem?
3. Why should prospective donor provide gifts? What benefits accrue?
c. Stewardship and Investment
i. Must report and be able to justify fundraising costs.
ii. Efficiency vs. effectiveness in costs (lowest marginal cost might not be the highest total return)
d. Stewardship and Providing Public Benefit—be careful to keep focus on public benefit, rather that private benefit
e. Ethics in fundraising—AFP Code of Ethical Principles and Standards of Professional Practice, which states, among others:
i. Avoid conflict of interests (especially if work for several organizations)
ii. Do not exploit prospective donors
iii. Provide full, complete and accurate information
iv. Insure that donor intentions are complied with
vi. Compensation not based on percentage of contributions, nor on a finder’s fee
© 2004 A.J.Filipovitch
Revised 2 April 2008