anatomy of a comprehensive library fundraising program
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Anatomy of a Comprehensive Library Fundraising Program. American Library Association Annual Conference June 25, 2011 10:30am - 12:00pm. What is Fundraising?. Fundraising is about opportunities! Opportunity to educate others about your organization - PowerPoint PPT PresentationTRANSCRIPT
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 [email protected]
Peter D. PearsonPresidentThe Friends of the St. Paul Public [email protected]
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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