Anatomy of a Comprehensive Library Fundraising Program

American Library AssociationAnnual Conference

June 25, 201110:30am - 12:00pm

What is Fundraising?What is Fundraising?

Fundraising is about opportunities!Opportunity to educate others about your

organizationOpportunity to establish relationships that

will benefit your organization into the future

Opportunity to cultivate existing relationships into more beneficial ones

Opportunity to bring needed resources into your organization

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OverviewOverview

The Philanthropic Environment

The Foundation of Fund Development

The Development Plan

Case Prospectus / Case for Support

Engagement and Solicitation

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The Philanthropic EnvironmentThe Philanthropic Environment

Fundraising in the USAFundraising in the USA

Who are the largest donors (individuals, corporations, foundations)?

What type of organizations receive the bulk of donations?

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Giving USA 2009:Giving USA 2009:CONTRIBUTIONS BY SOURCECONTRIBUTIONS BY SOURCE

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The Foundation of The Foundation of Fund DevelopmentFund Development

Laying the Foundation for Fund Laying the Foundation for Fund DevelopmentDevelopment

• A Case for Support which communicates, in a compelling and inspiring way, the organization's services and benefits deserving donor support.

• A long-term strategic plan which links the multi-year fundraising needs without current and future program needs.

• Volunteer leadership that actively participates in the organization’s governance and implements fundraising strategies.

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Organizations with well-run Development Programs typically have:

Laying the Foundation for Fund DevelopmentLaying the Foundation for Fund Development

◦ Highly personal cultivation and solicitation activities targeted to selected donors with the capacity to give larger gifts.

◦ Systematic and targeted cultivation and communications activities that deepen current donors’ interest in the organization and inform new constituencies of its contributions to the community-at-large.

◦ Well-organized donor records and systems which easily retrieve individual and aggregate donor information to support volunteer leadership in their solicitation efforts.

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The Library Development PlanThe Library Development Plan

Who does Library Fundraising?Who does Library Fundraising?Friends Group◦Book sales◦Membership◦Fundraising Events◦Volunteer-driven

Foundation◦Higher level fundraising from individuals,

foundations and corporations◦Paid staff

Who else does Library Fundraising?Who else does Library Fundraising?

Staff of the Library◦If no non-profit structure in place◦Less effective

Library Trustees◦Not recruited for this purpose◦Not perceived as “government employees”

Key Principles in Successful Key Principles in Successful FundraisingFundraisingCreate a 501 (c) (3) organization distinct

from the Library.Centralize major fundraising efforts in one

organization.Recruit the most influential board members.Focus fundraising activities on individuals.Don’t settle for “just a membership.”The more personalized the solicitation, the

greater the gift.

Effective Planning: The Basis For SuccessEffective Planning: The Basis For Success

Contributors tend to fund the future, not the past.People tend to be emotional givers who look for

rational reasons to support their emotional responses.

Decisions are driven by values and benefits.Primary, secondary and tertiary constituents have a

right to influence plans and programs.Prospects will more likely contribute if the

institution reflects their values and desires.Institutional needs should be stated in terms that

demonstrate a capacity to solve problems that are important to the donors.

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Cultivation * Participation * Commitment

Planned Gifts

Capital Donor

Special Gifts Donor

Renewed Donor

Newly Acquired Donor

The Universe

Planned Gift Programs

Capital Campaigns

Annual FundPrograms

PROGRAMS: Upward mobility through information, education,

involvement

Personal Solicitation

Telephone SolicitationMass Solicitation

•Special Events•Personalized•Mass Mail

TECHNIQUES: Upward mobility through increasingly sophisticated

techniques

The Donor Pyramid

The Annual Fund is the CornerstoneThe Annual Fund is the Cornerstone

What is the Annual Fund?Why is it critical to Fundraising?Differences between Annual Fund and

MembershipKeys to a Successful Annual Fund◦Compelling one-page letter◦Includes a response piece◦First Class postage◦Individualized solicitation

Corporate and FoundationCorporate and FoundationGrant ProposalsCorporate Sponsorship◦Typically funded by corporate marketing

dollars◦Corporate identity and recognition - critically

important◦Media Sponsors will attract corporate

sponsors◦Decisions on corporate naming – keep it local

Special EventsSpecial EventsBook SalesAuthor Programs and DinnersGolf EventsSilent Auctions

Special Event Fundraising – Keys to Special Event Fundraising – Keys to SuccessSuccessSpecial Events raise visibility but do not

always generate a profit.Successful events require large volunteer

commitment.Cost/benefit – manage donor concernMedia and corporate sponsors are

required.Consider hiring outside contractors to

coordinate.

Sources of Private SupportSources of Private SupportLibrary Board of TrusteesKey Staff and Friends’ membersLibrary UsersLocal Businesses / Corporate SponsorshipsGovernment GrantsFoundations◦Small Family Foundations◦Corporate Foundations◦Community Foundations

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Your Constellation of Your Constellation of RelationshipsRelationships

SpecialEventAttendees

Unassigned Major Donors

BoardMembers

BoardAssigned Major Donors

SpecialEvent

BoardSpecial

EventAttendees

Active Participants in Programs

Board/

Friends

BoardMembers Mission

Current Donors

Supporters of Libraries

Board Members: Your Greatest Board Members: Your Greatest AssetAssetSelection Criteria◦Interested and enthusiastic about Libraries

◦Influence and affluence

◦Skills in fundraising, advocacy, PR and/or programming

◦Ethnic, racial, geographic and age diversity, as well as gender equity

Board Members: “Job Description”Board Members: “Job Description”

Expectations of Board Members◦Meeting attendance◦Committee involvement◦Personal financial contribution◦Provide other contacts for fundraising◦Spokesperson

RecruitmentOrientation

Friends and Foundations are Friends and Foundations are notnot always “Friends”always “Friends” Conflicts can easily arise

◦ “We were here first”

◦ Sharing of databases

◦ Recruitment of Board Members

◦ Competition for Library Directors’ time

Ways to minimize conflicts

◦ Involve Friends in the creation of Foundation

◦ Develop policy on use of Friends’ membership list

◦ Ex-officio involvement

◦ Some joint meetings

◦ Reference each other in written communications

What would be the characteristics of your most likely donors?

Why would they give to you over others?

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Telling Your StoryTelling Your Story

Case Statement: FocusCase Statement: Focus

Unrestricted operating support

Restricted gifts for operations

Restricted gifts for special needs

Source: NSFRE Survey Course on Fundraising

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Purpose of the Case StatementPurpose of the Case StatementState the case for the institution’s aims, purpose, and

mission in general.Present the case for current programs.Show how new programs will enrich and benefit the

lives of many.Dramatically depict the institution’s impact on the

community economically, socially, artistically, spiritually, and/or historically--for today and tomorrow.

Source: NSFRE Survey Course on Fundraising

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Case for Support: ContentCase for Support: Content

Cause

Mission

Budget

Organizational needs

Goals

Objectives

Organization’s

financial history

Future plans

Key strategies and

tasks

Competence of the

staff to support

programs

Library Services Appropriate for Library Services Appropriate for Private FundingPrivate FundingDetermine what you will not fund.

Library services favorable to private donors◦Collections◦Outreach◦Children’s Programming◦Adult Cultural Programming◦Technology / Innovation◦Building Campaigns

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What can you educate your constituents about?

With whom can you establish relationships? strengthen existing relationships?

What are potential cultivation opportunities?

Ten Reasons Why People GiveTen Reasons Why People Give

1. Belief in the institution and its purposes

2. Belief that current needs are important

3. Sense of loyalty, gratitude, affection

4. Tax considerations

5. Friendship and respect for solicitor

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Ten Reasons Why People GiveTen Reasons Why People Give

6. Honoring the past

7. Funding the future

8. Involvement with peers

9. Recognition

10. Identification

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The # 1 Reason People Give…The # 1 Reason People Give…They Were Asked!They Were Asked!

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Engagement Continuum

MONEY

TIME

Identify

Invite

Inform

Interest

DONOR

I N S P I R E D

Involve

Invest

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IT’S ALLABOUTME!!!

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The ASKThe ASK

Select the right person

to ask the right person

at the right time

for the right amount

in the right way

for the right reason.

Solicitation StrategySolicitation StrategyPeer-to-peer solicitation is the most

effective means of fundraising.The prospect is a potential investor.There are many ways to make a gift.Think about your own giving experience.The best “getter” is a giver.

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13 Most Common13 Most CommonFundraising MistakesFundraising Mistakes1. Doing everything but asking.

2. Thinking that fundraising is for fundraisers only.

3. Plunging in with one foot:◦Clear institutional statement of purpose◦Top level support – Trustees, Advisors, etc.

4. Disregarding prospect research and recordkeeping.

5. Forgetting to concentrate on individual donors.

6. Overlooking past donors.

7. Putting too much faith and money into brochures.

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13 Most Common13 Most CommonFundraising MistakesFundraising Mistakes8. Failing to guide and cultivate volunteers.

9. Promising the world by Friday at the latest.

10. Refusing to recognize factors beyond your control.

11. Ignoring sophisticated tax savings incentives.

12. Keeping too many secrets.

13. Looking upon your work as a job rather than a cause.

Source:The Thirteen Most Common Fund-Raising Mistakes by Paul H. Schneiter and Donald T. Nelson

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““Passion raises more money Passion raises more money than technique”than technique”

Questions and Comments?Questions and Comments?

Falona Joy, CFREPresident and CEOSNP Strategiesfjoy@snpstrategies.comwww.snpstrategies.com

Peter D. PearsonPresidentThe Friends of the St. Paul Public Librarypeterp@thefriends.orgwww.thefriends.org

Other ResourcesOther Resources Libraries are from Venus, Fundraising is from Mars.

Library Administration Management Journal, vol. 20 no. 1, Winter 2006. By Peter Pearson.

“Library Friends and Foundations: Time for a Merged Model” White Paper by Peter Pearson.

Raising Funds with Friends Groups. Neal-Schuman, 2004. By Mark Herring.

Even More Great Ideas for Libraries and Friends.  Neal-Schuman, 2008.  By Sally Gardner Reed and Beth Nawalinski.

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