dollars for scholars fundraising guidebook

8/7/2019 Dollars for Scholars Fundraising Guidebook

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Dollars for Scholars Fundraising Guidebook Section One: Introduction

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Section One: Introduction

Fun draising is a top ic of interest and concern to all nonprofit

organizations because their very existence depends on the

financial sup port of the comm un ities they serve. With the

number of nonprofit organizations growing exponentially in

recent years, raising money effectively and efficiently is a

popular topic for books, seminars, workshops and conversa-

tion. People are spend ing big money and investing their time

and energy learning about this imp ortant topic. Is fund raising

really that difficult? Is it a science or an art? What motivates

people to give money and how can organizations position

themselves as worthy of philanthropic support?

We will attempt to answer these and many other questions in this Fundraising Guidebook

especially as it relates to Dollars for Scholars. We also hope to pass along some very p ractical

information and id eas that will help your chap ter achieve better results in fun draising. The goal of

every Dollars for Scholars Chapter is to award more scholarships to community students and thattakes moneyplain and simple.

The topics addressed in the Guidebook are based upon a voluntary survey conducted among

chapters in 2003-04, conversations and input from regional executive directors and Scholarship

America staff, and from my own personal experience as a development professional and consult-

ant .

I continue to be d eeply touched by the p assion an d commitment of Dollars for Scholars volunteers I

meet both in m y own region and across the nation. Dollars for Scholars is positively impacting the

lives of students, helping them achieve a postsecondary degree and, for many, changing the course

of their lives. Achieving a degree beyon d a high school diplom a dramatically affects lifetime in-

come and can result in a better career, lifestyle and a more ed ucated and contributing citizen. Ourcountry has long recognized the value of an education, but

for many students, education beyond high school seems

un attainable. We are helping. We are making a

d ifference. Every dollar that a chap ter can raise is

for the most wonderful cause in the worldour

youth and their future.

Whats so special about Dollars for Scholars?

Should fundraising be approached in a different manner for Dollars for Scholars chapters than it is

for the American Red Cross, the childrens museum or the hosp ital? Are Dollars for Scholarschapters capable of raising significant contributions from their communities?

Although Dollars for Scholars is certainly unique in many w ays, the basic principles that app ly to

fundraising are the same for all organizations.

What motivates peopleto give money and howcan organizationsposition themselves asworthy of philanthropicconsideration?


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Section One: Introduction Dollars for Scholars Fundraising Guidebook

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Fundraising at i t s most basic is this: one person asking anot her person to contribute to a

w orthy cause.

All fun dra ising m ethods an d a ll fund raising tools boil dow n to this concept. The variations occur

in the method of asking and in the personal relationships of those involved. My personal experi-

ence confirms that the m ore w e stick to th is fun dam ental concept, the m ore effective and easier

fundraising becomes.

The surv ey condu cted am ong chapters revealed some surprises. Most of our chapters are raising a

lot less on an an nu al basis than I had expected. Of the chap ters responding to the survey, 55%

said that they r aise $10,000 or less annu ally throu gh fund raising efforts. I mu st say that I was not

only surp rised, but a little disapp ointed. Many of our chap ters are well-established in their com-

munities, have a successful track record of awarding scholarships and have the capacity to raise a

lot more money.

The second surprise was that the #1

concern of Dollars for Scholars chapters

responding to the survey was the recruit-ment and retention of volunteers to

fund raise. This problem is not unique to

our chapters, but because almost all chap-

ters are 100% volunteer-managed and led,

it is a particularly crucial issue and con-

cern. A volun teer section has been add ed

to this guidebook based upon the impor-

tance of this topic to our chapters.

Dont be intimidated by the idea of asking

for money. Yesit takes time and effort,

but you already h ave all it takes to be thevery best fundraiser in the worldyou

believe in the m ission of your organization, you can tell wond erful stories of the positive imp act of

the scholarships you give, you have already made your own personal investment of time and

money, and your chapter has one of the best track records of any organization in your community

for efficient fundraisingthe cost per dollar raised for Dollars for Scholars chapters over the past

few years has averaged at less than 5 and in many ind ividu al cases even less than tha t. That is an

astound ing return on investment for d onors and a record that would be envied by man y nonprofits

in the United States when 15-25 is considered good.

Scholarship America and Dollars for Scholars chapters in fiscal year 2003 distributed nearly

$143,000,000 to more than 31,000 stud ents. This is an impressive record an d on e in which w e can

take great p ride. But th e reality is that w ith escalating tu ition an d fees, there is an ever increasing

and critical need for more financial assistance for stud ents. We mu st take a hard look at our cur-

rent method s of fund raising and consider w hat can be done to move us into the future. It will take

courage and commitmen t on all levels, but if we keep ou r goalsour youthin sight, there is

nearly unlimited potential to raise money and to dramatically alter the course of our future and

that of tens of thousands of students each year.

...the cost per dollar raised for Dollars

for Scholars chapters over the past fewyears has averaged at less than 5 and

in many individual cases even less than

that. That is an ast ounding return on

investment for donors and a record that

w ould be env ied by many nonprofits in

the United States w hen 15-25 is

considered good.


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Dollars for Scholars Fundraising Guidebook Section One: Introduction

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Hist ory of Fundraising

The ancient Greeks were the first to describe what we call philanthropyfrom phileo meaning

love and anthropos meaning mankindlove of mankind. As early as 350 B.C., Aristotle said that

to give mon ey is the combination of the rightperson, the rightextent at the right time with the right

motive in the rightway. He w as right on target! The Old and New Testaments of the Bible are full

of references to care of orph ans, strangers, widows and the poor. In fact, the philanthropic tradi-tion can be found in all of the major religions of the worldJudaism, Christianity, Islam,

Bud dh ism, an d Confucianism.

But the full development of philanthropy is really an American tradition and has come to be under-

stood as v oluntary actions for the benefit of others and includes n ot only contributing our

treasure, but also our time through v olunteer service. Philan-

thropy has become such a part of our culture and such big

business, that there are now governmental regulations and

scrutiny beyond what w e would have imagined a few years

ago. At the turn of the 20th century, giving was estimated to be

$500,000,000. In 1960, it was sligh tly over $11,000,000,000.In Giving USA 2004, a report released annually by the AAFRC

Trust for Philanthropy, giving in 2003 is reported to have

reached n ear ly $241,000,000,000! There are over 1.4 million

registered charities in the United States and still growing.

Andrew Carnegie, one of Americas most well-known philan-

thropists, felt that people of wealth had a moral obligation to administer their wealth during their

own lifetimes. Carnegie and John D. Rockefeller are considered the fathers of mod ern p hilan-

thropy. They began some of the first philanthrop ic founda tions that specialized in giving m oney

away .

Philanthropy in the United States has grown by great leaps in recent years. Nearly every non-profit, college and un iversity, hospital and private school has a professional d evelopm ent staff,

specializing in the art of identifying, cultivating and soliciting gifts from institutions and individu-

als.

It is in this environ ment that Dollars for Scholars operates in comm un ities arou nd th e U.S. In

essence, our chapters, completely run by volunteers, must compete with professional develop-

ment staffs and methods in their comm un ities. Can it be done? Absolutely and w ith great success!

The methods employed by professionals are the same that can be used by volunteers, and some-

times with even greater effectiveness.

Scholarship America has been repeatedly rated as a top education charity by such highly-esteemed

pu blications as the Wall Street Journals Smart Money . Largely through the volun teer efforts of

thousand s of Dollars for Scholars volunteers arou nd the country, Scholarship Am erica h as d istrib-

uted more than $1 billion to n early one million stu dents m aking it the nations largest private sector

scholarship and educational support organization in the U.S.

Scholarship America hasdistributed more than $1 billionto nearly one million students

making it the nations largestprivate sector scholarship andeducational support organiza-tion in the United States.


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Section One: Introduction Dollars for Scholars Fundraising Guidebook

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Dollars for Scholars chap ters aw ard ed a lmost $29 million in 2004 to near ly 35,000 studen ts. Dol-

lars for Scholars has become an important charity for many communities, directly impacting the

lives of students by helping them reach their goals of a higher edu cation.

Your efforts as a volunteer are extremely imp ortant to the youth of today and tomorrow . Thank

you!

Nancy Frick, CFRE

Indiana Dollars for Scholars

Executive Director


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Dollars for Scholars Fundraising Guidebook Section Two: Fundraising 101 - The Basics

Section Two: Fundraising 101 - The BasicsThe Elements of Fundraising: The Donor, the Solicitor, the Cause.

The Donor

Who in your community could be a potential donor to your Dollars for Scholars chapter?

Is it the ph ilanthrop ist who just gave a m illion d ollars to the symp hony? Or is it a retiredteacher wh o drives a 1990 Hond a Civic? It could be either one! The best prospect may not be the

person w ho d rives a fancy car and lives in a big house. It could be your next door neighbor.

Identifying Your Circle of Friends

A good way to begin thinking about who your potential donors are is to imagine a large circle with

many concentric circles with in it. The circle rep resents your un iverse of poten tial donors. Pu t your

board in the innermost and smallest circle because they represent the group of individuals most

know ledgeable and most intimately familiar with your chapter. (see illustration)

Working outward from the mid dle, begin to fill in the nam es of group s of people wh o are your

constituents, pu tting those most familiar with your Dollars for Scholars chapter closest to the inner

circle and w orking outward to the outer edge. (see illustration below)

Board

Board

L


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Section Two: Fundraising 101 - The Basics Dollars for Scholars Fundraising Guidebook

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Board

Service Organizations

Retired Teachers and Administrators College Faculty

Community Foundation

Retirees

PTO/PTA

Other schools/parents within school district

Coaches

Bus drivers, cooks, custodians

Who are your potential donors? Some of the groups below might be filled into y ourconcentric circles:

Your circle may be very large and you m ay have m any inner circles. Once you have filled in yourcircle of friends, it will provide a guid e for fun draising. Start with those in the center and work

outward when you are p rioritizing w hom to solicit and w hen.

Past Board

Teachers

Parents

Scholarship Recipients

Past Board Members

Past Volunteers Donors

Past Donors

Scholarship Recipients

School Administrators

Parents

Businesses/Corporations

Churches

L

L

Work from the inside out -

those nearest to the

heart of the organization

out to those most remote

Donors and volunteers are

constantly moving in and

out of your universe. How

can you introduce more

people to your chapter and

draw them closer to your

center?

L


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Please use this page to fill in your ow n circles w ith potential donor groups.

Board


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Defining your community

When d eciding w ho m ight be the best prospective don ors, look first for three things: Linkage,

Ability and Interest*. The best prospects will hav e all three.

Linkage: Linkage means that the prospect has some type of relationship with your chapter. Thislinkage could ran ge from w eak to strong. You may have a strong linkage with an individu al whohas served on your board, or an individual whose child has received a scholarship from your

chapter. You may have a weak linkage with an ind ividu al wh o you only assume cares about your

chapter because he happens to live in your community.

Linkages can also be developed throu gh relationships with individua ls close to your chapter. For

example, the bank president may be identified as a good prospect but may not know a lot about

Dollars for Scholars. How ever, she is the best friend of someone on your board and respects that

board mem bers opinion so a linkage is created.

Once you have determined that an individual might be a good prospect for a contribution, you

need to determine what linkages he has to Dollars for Scholars and what relationships are alreadyin place to enable a natu ral contact. For examp le, do you r chapter volunteers have:

w Social relationships with the prospect?

w Business connections with the p rospect?

w Parental connections with the prospect?

w Memberships in the sam e associations as th e prospect?

w Serve as volunteers for other organizations with the prospect?

w Know family members or mutual friends of your prospect?

4Rate l inkage 1-2-3 (1 weak, 2 average, 3 strong)

Ability: Does the prospect have the financial capacity to make a contribution to your chapter?There are some easy ways to develop an idea of an individuals capacity to give a significant gift to

your chapter such as prior contributions, contributions to other causes and the prospects profes-

sion or family wealth. You w ill need to d etermine wh at you feel is significant for your chapter.

4Rate abi lity 1-2-3 (1 low , 2 average, 3 strong)

Interest: Has the prospect dem onstrated that she is interested in scholarships or educationalcauses? Has she:

w Ever served as a volunteer or board member of your chapter?w Received a scholarship at one time in her life?

w Had any close friends or family m embers receive a scholarship?

w Made contributions to other scholarship programs or educational causes recently or in the

past?

4Rate interest 1-2-3 (1 low, 2 average, 3 high)

*Source: The Fund Raising School, Indiana Un iversity Center on Philanthrop y, Indianap olis, IN


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Prospects with a total rating of 9 (3 in each category) are your best prospects, 8 your next best and

so on dow n to 3 wh ich w ould be you r least likely prospect.

Betty Bucks 2 3 3 8 2

Bob Rockefeller 3 3 3 9 1

Ted Tapped 3 1 3 7 3

Sue Grinch 1 3 1 5 5

Ned Nasty 2 3 1 6 4

Linkag

e

Ability

Interes

t

Total

Rankin

g


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Review lists that are available to the public or directories that members of your board

have access to such as: Chamber of Commerce members, country club or other social

organization membership directories, attorney listings, school directories, Whos Who

directories, fraternity or sorority directories, church directories, fraternal organizations like

Kiwanis, Rotary, etc.

Categories of Donors

Current Donors

Individuals, businesses, corporations or foundations who have given to your chapter in the past

fiscal year or within the p ast 12 mon ths. For examp le, anyone w ho contributed last fiscal year or

this fiscal year is considered to be a current d onor. Curren t don ors should be solicited 2 to 3 times

per year or un til they contribute. Curren t donors shou ld be given a second chance to give in a

fiscal year toward the end of the calend ar year. Many d onors will consider tw o gifts (or even

more!) in one year if you ask them .

Lapsed Donors

Individuals, businesses, corporations and/ or foundations who gave to your chapter within the pasttwo years but w ho have not yet given in this fiscal year. This group is a good target grou p for

solicitations. Many peop le have good intentions of contribu ting but lose their solicitation or simp ly

forget. Some even think they have donated an d d ont realize that they have lapsed. You just need

to remind them through a personal visit, phone call or letter!

Long Lapsed Donors

Individuals, businesses, corporations and/ or foundations that have contributed to your chapter

more than two years ago but havent given since. Although the m ore time that lapses between

gifts, the harder it is to re-acquire a donor, these donors have at least demonstrated that they are

interested in your chap ter and ar e worth contacting at least once during the year. If after several

tries, you still dont receive a response, begin to treat them as non-donors.

Non-Donors

Individuals, businesses, corporations and/ or foundations that have never contributed to your

chapter. Acquiring new don ors is very challenging but you shou ld make it a goal to do at least one

donor acquisition effort each year. Mailings will have a gen erally poor return in the r ange of 1-

3%. Phon e calls are better if you can use stud ent and / or volun teer callers. You can also acquire

new donors at special events held during the yearanyone who donates to attend one of your

special events is a prospective don or. Because a large percentage of donors lapse each year, it is

very important to strategically try to bring in new donors.


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What Mot ivates Prospect ive Donors to Become Donors?

Finding out what motivates donors to make philanthropic contributions is usually inspiring and it

is fun to ask don ors why they sup port your chap ter. But you w ill never know for sure wh at moti-

vates them un less you ask. You are likely to hear very inspirational and touching reasons. Based

on research, we can, however, generalize about why most people contribute to an organization.

This is imp ortant because the goal of effective fun draising is to d etermine w hat m otivates an indi-

vidual and then to match his/ her motivations and interests to what you, as a chapter, need.

In general, people contribute to an organization because:

They believe in its mission. This is the #1 reason that p eople make contributions to an

organization. Your job is to find people w ho believe in youth, edu cation and scholarships in

particular.

Someone has asked them! Although this may seem incredibly simple, it is amazingly true!

Unless someone r eaches out to ask for a gift, even the best intentioned prosp ective donor

will probably not give. They may assume that you d ont need their supp ort if you d ont ask.

So askthe worst that can happen is that they will say no and generally even then they

are w illing to leave the d oor open for futu re consideration.

They have an associat ion w ith the cause or organiza tion. In Dollars for Scholars case, this

could be an individual who is currently, or was in the past, involved as a chapter volunteer.

It might be an individual who received a scholarship that helped her/ him attend college.

This works in your favor even if you werent the organization that provided the scholarship.

Past scholarship recipients know very p ersonally of the positive imp act of scholarships.

There are also individu als who m ay have a family member or close friend w ho is a scholar-

ship recipient.

To give back for a benefit or blessing that they have received. This motivation applies to

past scholarship recipients. Prospects may also feel that contributing back to the comm u-

nity through scholarships is an effective way to give back a little of the success and wealth

that they have achieved. Altruism is a strong motivator for man y people.

To belongto a successful organization, a solution to a cause, a group of people, etc.

Everyone wants to believe that they are contributing to a worth y cause and institution. You

must portray in your fundraising the positive results of what you do, the impact of your

scholarships, etc. and not come across as needy. Donors will respond more p ositively to

your reports of achievements and impacts.

Guilt. For some ind ividu als, gu ilt is a motivator . It could be guilt over their inab ility to

serve as a volunteer (lack of time), guilt over not being able to attend a special event, or guilt

that they are more privileged than others in society.

Tax deduction. Although su rpr isingly low on the list of motivations to give, for some don ors

it is important to receive a tax benefit, especially if they are considering a large contribution.

You should make it known on all of your solicitations that you are a 501(c)(3) organization

and that contributions to you are tax deductible.


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Involvement w ith peers. People like to be associated with others they know and respect.

When someone asks you to make a contribution or to support a cause that you know and

respect, it is d ifficult to say no. Peer pressu re can work in your favor. When p ossible, it is

best to assign people to contact friends and business associates for solicitations.

Recognition. Most peop le like to be recognized for their contribu tions. It is very motivating

to some to have their nam e appear on a list or on a plaque. Be sure to recognize yourdon ors in both private and p ublic ways. Of course you should send a thank you letter, but

also includ e them in your new sletters, on your aw ard s program, in a newspap er ad, etc. It

demonstrates to the comm unity that you have w idespread supp ort and serves as a motiva-

tion for others to get their name on the list! How ever, if a donor asks that h is/ her

contribution be anonymous, you must respect that request.

To Ensure the Future. People want to ensure that others will have the same or more oppor-

tunities than th ey did. This is especially true of education. Many older ad ults especially

app reciate the value of an edu cation. They want to enable others to have opportu nities in

life that higher education provides.

To Positively Effect the Lives of Others. Every donor wants to feel that his/ her contribu-

tion has mad e a difference in someone elses life. Dollars for Scholars has a great

opportunity to demonstrate that scholarships really do make a difference through the stories

and successes of scholarship recipients. Be sure to share your stories!

It is important for you to define what motivates your prospective donors and then to appeal to

their interests!

Reasons People Fail t o Give

Solicited infrequently or poorly

Dont feel their gift mad e a difference Dont feel wanted or needed

Received no direct, personalized app eal by someone who really

cares about the organization

No one asked them to give again, to consider giving more or to help

find others to give

Past contribution went unacknowledged


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Who Should Solicit Gifts?

The best approach with the most successful results are solicitations that are carefully planned and

very personal. The best solicitors are ind ividu als wh o personally know the p rospect. These indi-

viduals can gain the attention of the prospect, open the door for an appointment and will have

their phone calls returned.

Potential Solicitors for your Chapter:

Board MembersCurrent board members are the most logical solicitors because they know

all of the activities of the chapters and have firsthand experience of the impact of scholar-

ships that have been award ed. They are generally passionate and enth usiastic about the

chapter and the most knowledgeable and genuine.

Past Board MembersHelping to raise money for the chapter provides a great opportunity

for past board members to stay involved and contribute to the chapter in a meaningful way.

Asking past board members to serve on the Fundraising Committee and make phone calls

or w rite letters to peop le that they know is very effective.

StudentsStudents are the beneficiaries of your efforts and can help you raise money that

will poten tially benefit them. Some chap ters use the National Honor Society or other school

group s with stud ents who are required to earn service points. The most comm on use of

stud ents, and a very effective one, is having th em make solicitation calls du ring a

ph onathon. You can m ake a calling effort fun and exciting by serving food, decorating

the room with balloons and awarding prizes for various categories such as most dollars

raised, most calls comp leted, etc. Ask local merchants to d onate food an d p rizes such as

movie gift certificates, clothing g ift certificates, gift baskets, etc. Holding th e ph onath on on

a Sunday afternoon or several evenings after school, allows students to participate without

interfering with sports and stud ying. Dont forget to thank the stud ents with a t-shirt or

other memento and acknowledge their efforts with a poster or banner to post at the schoolannouncing their success.

ParentsParents can be effective solicitors too. They have a vested interest in your su ccess.

Ask parents to help with mailings or to make phone calls.

Faculty and administratorsTeachers want to see students succeed and they appreciate

the value of scholarships. They can p articipate by run ning a faculty campaign (some school

districts allow Dollars for Scholars d onations by p ayroll dedu ction), by allowing Hat Days

or Dress Down Days or h elping with fun dra ising activities such as booths at school events.

Community l eadersInvite community leaders who want to help to serve on your

Fund raising Comm ittee. They cou ld be involved with just one specific event if their time is

limited, or can be more active as full comm ittee members h elping with p lanning and solici-

tations.

RetireesMany retired persons are still young in age and at heart. You can involve them

in supporting the chapter through fundraising in many waysphonathons, processing

mailings, making contacts w ith bu sinesses/ corporations, using th eir personal connections,

etc.


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(by students, parents, board members)

(mass mailing: Dear Friend)

(professional firm)

How Are Gifts Solicited?

Ladder of Effectiv eness

The more personal the fund raising effort, the larger the gift and the greater the success. There are

always exceptions to the rulelike the individual who sends a $5,000 contribution online!but in

general the list below remains r elevant.

The Ladder of Effectiveness - Least and Most Effective Methods of Fundraising

There are two basic types of solicitationspersonal and impersonal. The dividing line betw een the

two is sometimes blur red, bu t w ell use the following:

Impersonal Methods of Solicitation

InternetHaving your own website with an option to make an

online contribution or sending e-mail solicitations and newsletters to

donors and/ or prospects.

Special EventsHolding a fundraising event such as a golf tourna-

men t, auction, dinner dance or basketball toss at half time. Special

events are effective at raising community awareness and engaging volunteers but are not

generally the best m ethod of raising significant dollars wh en the costs of time and event

expenses are considered.

p

Mo

st

Effe c t

iv

e Face - to - Face

Personal Phone CallP e r s o n a l L e t t e r

Volunteer Phonathon

D i r e c t M a i lTelemarketing

Special Events

Internet


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TelemarketingTelephon e solicitations conducted by a professional organization. These

companies must be registered fundraising organizations and abide by federal and state

regulations regarding p hone solicitations. They are required to identify themselves as paid

telemarketers working on behalf of a nonp rofit organization. The best telemarketing firms

work on a fee basis and not on percentages of solicitations.

Personal Methods of Solicitation

Volunteer PhonathonTelephone solicitations conducted by student and/ or adult volun-

teers. Solicitations cond ucted by volun teers for nonp rofit organizations are exemp t from the

Do-Not-Call list call restrictions. It is importan t to identify your self as a volun teer as qu ickly

as possible d uring a Phon athon to diffuse an y concerns th at the call is

being condu cted by p rofessional telemarketers.

Personal LetterLetters written from one individual to another on

behalf of a nonp rofit organ ization. The most effective letters are written

between individu als with personal relationships. These letters should

use an individuals familiar name (Betsy vs. Elizabeth) and are

hand -signed by the wr iter. Add ing a personal hand written note is also

effective. Even if the w riter and recipient d o not p ersonally know each

other, the tone of the letter should be personal and warm.

Personal Phone CallPhone calls between a volunteer solicitor and a p otential don or. As

with th e personal letter, the most effective calls w ill be between ind ividu als with p ersonal

relationships.

Face-to-FaceMeetings between individuals to solicit support for a nonprofit organization.

It is recomm end ed to have two solicitors calling on an individu al or couple to ask for a gift

to supp ort a cause. This is the recommend ed m eans of solicitation for the most generou s

contribu tions. Face-to-face solicitation is most effective wh en the p rospect has been culti-vated and/ or involved with the organization over a period of time, knows individuals

involved with the organization, understands the cause and has personally experienced the

value and impact that her gift will have on the community.

The rule of thumb is that the more personal the solicitation, the more successful and more gener-

ous the gift.

A d ifferent strategy should be used for various categories of donors an d prosp ectsi.e. the same

app roach is not effective for all don ors. Donors wan t to feel that you know wh o they are, that you

recognize their past sup port and that they are imp ortant to you. With a direct mail campaign for

example, you sh ould differentiate the text of the letter for each au dience:

n App eal for acquiring a new don orhighlight the benefits the gift will provide to th e don or

and to the community and demonstrate that Dollars for Scholars is a solution to a commu-

nity need/ problem

n Appeal for a donor who gave their first gift last yearrecognize that they are a new donor

and demonstrate appreciation for their support, acknowledge successes, reporting on how

their gift p ositively imp acted scholarships aw ard ed last year.


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n Appeal for a donor who has contributed for 3 or more yearsrecognize their long-term

commitment and generosity, demonstrate your successes thanks to their support, invite

them to upgrade their contribution to a new level

n Appeal for a major giftmore personalized and best done in person


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Types of Gift s

* Cash

* Credit Card

There may be an option for your chapter to process credit card contribu-

tions at a reasonable fee throu gh a local bank. Many local banks offerreduced rates to nonprofit organizations and you may be able to arrange

temporary credit card processing for a special event such as an auction or

ph onathon. Scholarship America provid es credit card processing services

to Dollars for Scholars chap ters as w ell. Call 800-248-8080 to inqu ire abou t

procedu res and to obtain a credit card contribution form. A processing fee

of 3% will be charged and a check mailed to your chapter.

Another option for credit card processing is to register your chapter with

www.networkforgood.org . After registration, you can link your website directly to the

Donate Now button on their website. Netw ork for good charges a percentage service fee

(around 3%) for processing gifts and will deposit the gift directly into your account.

* Securities

Donors may wish to transfer gifts of stock to your chapter, especially if they are highly-

app reciated and a tax liability to the donor. You can make arrangem ents for the transfer

with a local stock broker or ban k. It is a good id ea to have a broker r elationship already in

place so that the d onors stock gift can be graciously received and quickly p rocessed w hen

such an opp ortun ity arises. Sometimes brokers w ill waive their fees for a charitable contri-

bution. Chapters shou ld have a p olicy to sell the securities upon r eceipt so that the chap ter

is not liable for potential loss of value due to stock market fluctuations.

* Property

There are Dollars for Scholars chapters who have received a farm, home and other propertyas a gift in a bequest. Your chapter is ad vised to contact your reg ional office and / or Schol-

arship Am erica should you receive such a gift. The vast majority of prop erty gifts are fine

and can greatly benefit your chapter. How ever, your board may choose to decline a gift

based on an inspection of the prop erty. For examp le, you w ould not w ant to accept

property that has been contaminated by chemicals and would require extensive and expen-

sive clean-up.

* In-Kind Gifts

These are gifts of services or p roperty su ch as printing that a bu siness or individu al may

wish to contribute to your chapter. The chapter is not obligated to place a value on the

contribution for the donor, but must simply state the nature and description of the service or

property in the acknowledgement letter.

* Estate/Planned Gifts

Contributions designated for the chap ter in the estate plans of the don or. See Planned

Giving Section.


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2-15


Types of Fundraising

There are three kinds of fun dra ising. Many organ izations do all three at one time.

Type of Fundraising Raises $$ For Source of Income

Annual Giving Current Programs Current Income

Capital/Endowment Campaigns Buildings & Endowments Assets

Planned Giving Endowments Estate

Annual Giving Programs

Annual fundraising campaigns run on an annual basis and have an annual goal to meet. The goal

is developed based on the program expenses and op erations bud geted by the organization. Formost Dollars for Scholars chapters, expenses include scholarships or oth er ed ucational program s

sponsored by the chapter such as teacher grants and student incentive and recognition programs,

as well as seed money for special events, awards programs, postage, printing and other fundraising

expenses.

Renewing donors

The first goal of an annu al giving program is to renew don ors from the previous year. Because it is

expensive and difficult to acquire new donors, chapters should work very hard to retain the donors

they have. Some organizations lose as man y as one third of their don or base each year. Over time,

man y of your d onors will develop other priorities and become interested in other causes, may feel

that their contributions are more valued elsewhere, might have financial setbacks that cause them

to redu ce or stop th eir contributions, or w ill simp ly lose interest in your chapter. Therefore it isimperative to keep in close touch with your donors and to make them feel that you both know

them and value their support.

Upgrading donors

Are you continuing to ask you r don ors for the same gift each year? A $10 gift in 1970 is not nearly

so meaningful in 2005. Donors und erstand that you have increased expenses and that you w ant to

expand you r impact, so ask them to increase their supp ort as well. It is hu man n ature to respond

to what is askedif you ask me for $25, I will probably give you $25 even though I could and

probably wou ld have given mu ch more. Ask donors to consider u pgrad ing their last gift and

provid e them w ith several suggestions of gift amou nts. For example, for a donor w ho has given

$25 for the past several solicitations, ask him to consider increasing to $35 or $50 this time. If youare w riting a letter, put a ll three amou nts ($25, $35, $50) in the bod y of your letter. If you are

calling on the phone, ask for an increased gift and mention the amount.

Acquiring Do nors

Because your chapter will lose donors over time, you should plan for a solicitation effort each year

to acquire new d onors. Donor acquisition is typically very expensive because it has a low rate of

return , especially wh en it is don e by mail. Maximize your return by making your ap proach to

prosp ective donors as personal as possible. It is very easy to throw a letter away from an organiza-


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2-16

tion you d ont know or care about. It is less easy to tell someone that you know and respect no

when they ask you to consider supporting Dollars for Scholars.

Solicitation meth ods for an nu al contributions m ost often include a combination of m ailings, phon-

ing efforts, special events and personal solicitations.


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Dollars for Scholars Fundraising Guidebook Section Three: Direct Mail

3-1

Section Three: Direct Mail

The most important thing to remember about direct mail

sending letters to current, lapsed or prospective donors

is to put m ailings on your calenda r and th en do it! You willget a response from a mail solicitation if you just get the

letters out the d oor. Sometimes sending letters is very laborintensive, so recruit volun teers to help you .

Each direct mail solicitation should include:

n Personalized letter from on e individu al to another w ith a specific suggested gift am ount(s)

in the body of the letter Dear Steve vs. Dear Sir an d Would you consider a gift of $25, $50

or even $100 this year? (see samples)

n Personal hand -signed signatu reblue ink is best

n Personalized note to donors/ prospects from whom youre requesting a larger contribution:

Thanks for considering a gift this year Mary! or I hope youll join me in making a contribution

this year John! Scholarships are so important to our students.n Optional - Hand-addressed envelopethis may be totally impractical if you are sending a

large num ber of letters, but if you can recruit volunteers to hand -address letters, research

has shown tha t you will receive a better response. A hand wr itten envelope will stand ou t

in the stack of mail and helps ensure th at your letter gets opened the first hurd le of direct

mail!

The response from current an d recently lapsed d onors w ill be far higher th an it is for longer lapsed

or non-donors. A good respon se from a n on-donor m ailing is considered to be in the 3-5% range,

many times it is 1-2%. Cur rent d onor resp onse shou ld be in the range of 75-90%, recently lapsed in

the 50-70% range.

It is a good idea to track your m ailings to determine wh ether or not they have been effective. Cal-culate how many letters you send out in each mailing, and then how many respond in each

category, the average gift amou nt, etc. If you are n ot getting a good response, then evaluate how

you can imp rove your letter or m ailing. Includ ing a brochure, list of donors, a copy of an a rticle

about you r chap ter in the n ewsp aper, list of scholarship recipients, etc. in your mailing may help

boost your response, as long as the supplemental material supports the theme or topic of your

letter.

To whom should you send a solicitat ion let ter?

Almost everyone in your database shou ld receive a fun dra ising letter with th e exception of indi-

vidua ls that you have id entified for more p ersonal solicitation efforts. Not everyone h owever w illrespond to your letter. Some peop le will intend to respond but never d o so. Some w ill toss your

letter in the wastebasket without even op ening it. You w ill receive the peak response in the 3

weeks following the mailing of your letter.

The more regu larly you contact peop le, the more likely they are to give. So if you ar e just start ing

out mailing letters, you should continue with mailing letters and newsletters, anticipating that your

response will increase over time. There is a fund raising axiom that says you shou ld m ail letters to a

group of donors or prospects until you arent making more money than you spent to produce them.

Mailing letters these days is costly, especially if you are not going to bulk mail them . So do keep an


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Section Three: Direct Mail Dollars for Scholars Fundraising Guidebook

3-2

eye on your percentage response. You should be coming out on the winning end after you calcu-

late your expenses. If you are not, try to evaluate w hat could be wron gis it your au dience or

your letter package? If it is the aud ience, consider redu cing the qu antity or eliminating that group

from future mailings. If you think it is your letters, change th em to be

more readable, more attractive and/ or more compelling.

Elements of a direct mail package

p Carrier envelopeusually a #10 envelope, although you may in-

crease your response by using an unu sual size or shap e. You may

also boost response by printing an u rgent message on the ou tside of

the envelope (as long as it is sincere) or by using a different color

envelope than you usually do.

p Response envelopeusually #9preprinted with your chapter name and the

mailing address of your fundraising chair or treasurerwhoever will be pro-

cessing gifts and acknow ledgem ents. This size envelop e fits neatly inside a #10 envelop e. It

is best to select an envelop e that you d ont hav e to fold to fit in your carrier envelope. This

can be a plain one-color envelope or you may wish to print a flap envelope that allows

you to collect the donor information d irectly on the large envelope flap. A flap envelope

will eliminate the need to print resp onse slips an d can also be used inside your new sletter

p Response card / slipit is very imp ortan t to includ e a response d evice! It can be a card

printed on cardstock or simp ly a slip of paper. Consider printing 3-up on an 8 x 11 page.

This size fits nicely into you r carrier envelope and also in the #9 return envelope.

p Insertbrochure, list of scholarship recipients, recent n ewsp aper article about the chap ter,

list of donors to d atean insert is optional but can strengthen you r letter as long as it com-

pliments your message and doesnt distract from it.

p Live stamp vs. a meter postagethere are bulk stamp s if you ar e sending you r letters bulk tosave money, but use a stamp . It looks more personal and less business-like.

Why do people respond to a direct mail appeal1 ?

n Because you ask them

n Because they have mon ey available to give aw ay

n Because they are in the habit of send ing mon ey by m ail

n Because they support organizations like Dollars for Scholars

n Because their gifts will make a difference

n Because they believe their gift will accomplish something right now

n Because you recognize them for their giftsn Because you en able them to do something abou t a critical problem

n Because you give them the op portu nity to belong

n Because you help them preserve their world view by validating cherished v alues and beliefs

n Because you allow them to relieve their guilt about an ethical, political or personal trans-

gression (real or imagined)

n Because you give them tax benefits

n Because they feel it is their duty

n Because th ey believe its a blessing to d o so

1 Source Twenty-Three Reasons People Respond to Your Fundraising Appeals by Mal Warwick. Warwick, Mal, How to WriteSuccessful Fundraising Letters. Berkeley, CA: Berkeley Press, 1994.


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3-3

Direct Mail Let ter Writing Tips:

r Include an ask for a specific amount(s). You are mu ch more likely to get the gift that you

are hop ing for if you ask for it. An ap peal for a genera l gift with n o specific dollar

amount is weak and doesnt give your prospect any idea of what you need or hope hell

consider. Be specific and tell your p rospect what it is that you w ant from him.

r Thank current or lapsed donors for their last giftThank you for your last gift of $50. Your

support helped us award 35 scholarships last year! Your donors want to think that you know

them so wh en you acknowledge their past supp ort, it is imp ressive. It also reminds the

donor of what he gave last time and can serve as leverage for getting the donor to increase

the gift this time.

r Keep paragraphs shortno more than 5 lines/ paragraph and some of them even shorter.

Vary the length of paragraph s to create visual appeal. Short one or two sentence para-

graph s with strong statements are very powerful and d raw the read er into your letter. It is

also imp ortant not to h ave your letter be too text heavy. If it looks hard to read, it is less

likely to be read at all and you have lost your au dience before you h ave a chance to begin.

r Make the letters as p ersonal as p ossibleuse p referred

namesDear Libby vs. Dear Elizabeth. As mentioned

above, you want you r read ers to feel that this is a letter

from someone wh o knows them. It is a strong tip-off that

you dont know them when their letter is addressed to

Dear Robert as opposed to Dear Bob if Bob is the name

by wh ich they are commonly known . It is difficult to guess

about the familiar name of individuals that you really dont

know , so it is probably more ap prop riate to go by the

informa tion that you hav e in those cases. But if you can

find out the familiar name, it really strengthens the impactof your letter.

r Stick to one signature on th e letter. Againthe m ost personal letters are those from one

person to another. When you ad d m ultiples of two or more signers, it weakens the person-

alization of your appeal.

r Write like you speakmake the ton e conversational. The best letters are warm , sincere and

personable in tone. You d ont have to use fancy langu age to talk with your read ersin fact

you should nt! After you have w ritten a draft of your letter, read it out loud. If it sound s

stilted and formal, then rewrite it using more conversational language.

r Tell stories. App eal to the heart of the donor. Put a face on your fundraising. Donors

love to hear about th e stud ents that their gift w ill touch, so includ e real life examp les (only

use first names) of scholarship recipients telling how your scholarship imp acted their lives.

Try success stories of past recipientsa w here are they now app roach. You m ight even

consider d rafting a letter to be signed by a past recipient. The recipient doesn t actually

have to w rite the letter, but you could ask her if you could tell her story and use her signa-

ture.


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3-4

r Have a sense of urgencygive your prosp ect a reason to take action NOW. Otherw ise, it

may go tow ard the back of the bill basket and p otentially be forgotten. Including a d eadline

to work toward or a goal to meet adds a sense of urgency to your letter and will increase

your response.

r Keep it simpleyou d ont have to tell everything about you r chapter in one letter. Focus on

one theme or m essage and repeat the m essage in the letter several times. For examp le, yourchapter may, in addition to awarding scholarships, also provide grants to teachers or schol-

arships for elementary stu dents to attend science camp. You d ont have to tell the entire

story of your chap ter in one letter. Decide wh ich p rogram to focus your letter on this time

and then wr ite about that program. If you feel it is imp ortant for your prospects to know

more abou t you, includ e a simple brochure w ith your letter or just briefly mention your

other programs in your letter.

r Write the letter as if it were a p ersonal letter between the w riter and th e recipient. The use

of you an d I makes it more personal. After you hav e drafted your letter, go back and

count the number of times you used p ersonal pron oun s. If you don t have a large nu mber

(10+), you probably ar ent being p ersonal enough .

There are many ways to construct a good fundraising letter, but the structure below may be helpful

to follow w hen you sit dow n to w rite. You can also share successful letters with other chapters in

your area. They arent wr iting to the sam e aud ience that you are, so it is perfectly acceptable to

adapt a letter for your comm un ity and chapter. Keep copies of good letters that you receive in the

ma il from other organizations. You m ay get a few good ideas regard ing structure or phrasing used

in other letters.

Structure of Good Fundraising Lett ers2

1. The Hook (Get the readers attention.)

2. The Ask (Ask for the gift early in the text of the letter.)

3. Restate the Problem, Opportun ity or Challenges (Includ e

facts, statistics or stories to convince the reader to be con-

cerned about the problem of access to postsecondary

education, financial aid, etc.)

4. Introdu ce the Solution or Remedy (Scholarships!)

5. Juxtapose the Problem and Solution with Dollars for Scholars (Tell how Dollars for

Scholars effectively ad dresses the problem in you r comm un ity.)

6. Have Tie-Down Requests Throughout. (Repeat the Ask several times.)

7. Stress the Urgency for Action. (If there is no urgency, your letter may be disregarded or

put aside to be mailed later and potentially forgotten.)

2 Source: Making the Mail Work (Better) for You, Eleanor T. Cicerchi, CFRE. Weisman, Carol. Secrets of SuccessfulFundraisingThe Best from the Non-Profit Pros. St. Louis, MO: F.E. Robbins & Sons Press, 2000.


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3-5

8. Spell out the Consequences for Inaction. (Students wont have opportunities, low

number of scholarships awarded, etc.)

9. Repeat the Financial Need.

10. The P.S. (Give an add itional reason to send a contribution and create a sense of urgen cy

to give NOW.)

When should y ou send direct mai l let ters?

Statistics show that certain times of the year are better for mailing solicitation letters than others,

but your mailing schedule should reflect your own chapters schedule and be determined by when

you need most to raise money.

If possible, you should mail at least two fund raising ap peals a year, three is even better. Dont

worry th at you are over-mailing. If you look at your ow n seasonal mail, you w ill note that you

receive multiple requests from charities you su pp ort each year. You d ont give to them all but you

do give. Your first letter may arrive at a bad time bu t your second letter may arrive at the perfect

time. You h ave no w ay of knowing the circum stances in your d onors lives, so give them several

opportunities to support you.

If a donor responds to your first mailing, you may want to consider removing him from the second

mailing, or if she respond s to the second mailing, consider removing h er from the third. How ever,

research shows that at least 15% of your donors will respond to an appeal for a second gift in the

same year, so don t be afraid to ask again. Just remem ber to acknow ledge and thank the don or for

his first gift and give him a reason to consider contributing again.

It is suggested tha t you mail:

l In the early falllate August or Septemberl Year end November or by the first week of December

l In the early springFebruary or March

If you are conducting a phonathon, youll want to keep the phonathon dates in mind and not do a

mailing at that same time of year to the same group of people.


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3-6

Date

Dear Bob,

If you could send a deserving student to college, would you?

Of course you would!

And you can help do just that by sending a gift of $25 or more to Centerville High School

Dollars for Scholars. Centerville High School Dollars for Scholars mission is to provide financialassistance through scholarships to as many Centerville graduating seniors as possible.

Last year only 64% of Centerville students went on to postsecondary school after gradua-

tion. The #1 reason preventing those who didnt was lack of financial resources. Tuition costs at

state institutions in Indiana rose a whopping 14% last yearone of the largest increases in the

nation. Achieving a postsecondary degree is becoming out of reach for too many.

Scholarships make a difference for our students and their families. Not only do they

provide financial assistance, they also encourage students and help them understand that the

community believes in them and their potential.

Centerville High School Dollars for Scholars was founded in 1983 by community citizens

just like you who knew that the attainment of a college degree can make the difference in nearly

every aspect of an individuals lifecareer, lifetime income, family, and community involvement.

209 students are projected to graduate from Centerville High School this year. Which ones

will not have the advantage of a postsecondary education? All are deserving of our encourage-

ment and support.

With your help, we can expand the number of scholarships well award this year from 50 to

75. Please dont delay in sending your tax-deductible contribution to Dollars for Scholars!

Thank you for your consideration and continued interest in education in Centerville,

Sincerely,

Brad Jones, President

P.S. A gift of $25, $35 or even $50 will help Dollars for Scholars award more scholarships to

more Centerville High School students this year! Wed like to include your name on our list of 2005

donors, so please send your gift today!

Sample

Letter


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3-7

Date

Dear Sue,

Chances are, you grew up believing that education is important.

I know that I did.

And Centerville High School Dollars for Scholars believes that education is more important

now than ever before.

Statistics show that students with a postsecondary education have a better lifestyle, earn

more lifetime income and contribute more to their communities as good citizens.

They have more opportunities too. They arent trapped by their lack of education.

Dollars for Scholars helps Centerville graduating seniors each year by awarding scholar-

ships. Our scholarships provide financial assistance for college or technical school and also convey

a message that the community cares about its students.

By supporting Centerville High School Dollars for Scholars, you can help make a difference

for students and families in our community. A gift of $25 or more will help us increase the scholar-ships we can award this year.

There is nothing more exciting than the future for our youth.

There is nothing more rewarding than helping them get there.

Please send your gift of $25, $35, $50 or more to Dollars for Scholars today.

Let our students know that you believe in them.

With high hopes for the future,

Brenda Cain, President

Centerville High School Dollars for Scholars

P.S. Help more students in Centerville reach their dreams of an education beyond high school.

Your tax deductible contribution to Dollars for Scholars today will bring a brighter tomorrow for our

kids!

Sample

Letter


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3-8

Sample Response Slip

Include a response card or slip and a return envelope with your fundraising letters! Make it easy for your

prospect to respond.

Include a return add ress on your donation slip even though you are sending a return enve-

lopesometimes envelopes become lost. Ask for information that you need including an e-mail address.

Only include a credit card option if you have made arrangements with your bank, Scholar-

ship America or another entity to take credit card gifts.

Include instructions for writing checksi.e. how to make the check payable.

Yes! I want to support Centerville High School students!

q Here is my tax deductible gift of $_______ to support scholarships for Centerville students.

q Check enclosed. (make payable to Centerville High School Dollars for Scholars)

q Charge my credit card. Card #_____________________________________________

Expiration Date_______________________________________

Signature __________________________________________

Name _____________________________________________________________________

Address ___________________________________________________________________

_________________________________________________________________________

Phone________________________ E-mail_______________________________________

Thank you for your support. Please consider remembering Dollars for Scholars in your will.

Centerville High School Dollars for Scholars P.O. Box 671 Centerville, IN 47555


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3-9

Sample Response Slip

Thank you for your support!

q Board Circle $1,000 Name _________________________________

q Benefactor $ 500 Address _______________________________

q Contributor $ 250 _____________________________________

q Family $ 100 Phone _________________________________q Friend Up to $99 E-mail _________________________________

Payment Method:

q Check (please make payable to Centerville High School Dollars for Scholars)

q Credit Card Credit Card #________________________________________

Expiration Date_______________________________________

Signature___________________________________________

q Pledge Pledge to be paid by ___________________

q Matching Gift My gift will be matched by my employer. (form enclosed)

Thank you for your support!

q Id like information about including Dollars for Scholars in my will.

Centerville High School Dollars for Scholars P.O. Box 617 Centerville, IN 47555


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3-10

Insid

eFlapP

ort ion

(Whatyouw

ouldseew

hen

youopenthee

nvelopef

lap)

This is t he actual opening into the envelope

BottomPortion

(Actuallyprintedon

thebackoftheenvelope)

Flap Envelope Sample

Expanding access to higher education for Centerville students

Special Recognition is given to contributor s at the following levels:

$100+ Diploma Level

$250+ Scholars Level

$500+ Mortarboard Level

$1000+ Leadership Circle

Centerville High School Dollars for Scholars Annual ContributionGift Information

___Enclosed is my tax-deductible gift of $______.

___Check enclosed. (Please make payable to Centerville High School Dollars for Scholars.)

___Charge m y credit card . (VISA or MasterCard .)

Nam e on card _____________________________________________

Card Number___________________________ Exp. Date__________

Signa tu re_________________________________________________

___I wish to m ake a p ledge of $________ to be paid by ____________. (fiscal year end s 6/ 30)

___Please charge $____ to my credit card __monthly __quarterly.

___I prefer to pay my pledg e by check. Please send a reminder ___mon thly ___quar terly.

___I have enclosed a corporate matching gift form from my/ my spouses employer.

Donor Information

Your Name_____________________________________________________________________________Address________________________________________________________________________________

Street City State Z ipcode

Phone(_____)__________________________ E-mail___________________________________________

Thank you for supporting Centerville High School Dollars for Scholars!

Important! Be sure to print your return address on the front of your flap envelope.


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Section Four: Volunteer/Student Phonathon Dollars for Scholars Fundraising Guidebook

4-2

VolunteersYou will need both students and adults CallersMany chap ters use National Hon or Society stud ents or service clubs. Calling

generally qualifies for service points or volunteer hou rs. Some chapters requ ire students to

call to be eligible for scholarships. Calling m ay also be done by

adult volunteers such as board members, parents, alumni from

the high school or community volunteers.

Adm inistrative VolunteersTasks for these volunteers includ eadd ressing en velopes, mailing pre-call letters, training and sup er-

vising stu den t callers, collecting p ledge cards th rough out the

calling evening so you are able to mail the remind er within the n ext

24-48 hrs, and providing snacks and incentive prizes.

Fact sheet of informationA fact sheet should be prepared for callers

regarding the local chapter and the high schoolnumber of students,

number of scholarships awarded by the chapter, how scholarship recipi-

ents are selected, various scholarships available throu gh the chap ter, etc. This provid es an easy

reference for your callers to talk about in their conversations or to refer to if they are asked a spe-

cific qu estion.

Calling sheets or cardsThe sheet/ card provid es information on each individu al/ family/ businessto be contacted and should include:

n name/ add ress/ phone

n past giving history including m ost recent gift and d ate

n total cumulative contributions

n familiar first name(s) if they are known

n amou nt of contribution the solicitor should su ggestit is importan t to predetermine

this for the callers as they will not know w hat is app ropriate. You can review the

calling sheets in advance and just write in the ask amount at the top of the sheets.

n space for the caller to record call results and comments

n any notes from previous p honathons

Food/snacksVery imp ortant for student callers especially! Depend ing on the timing of your

phonathon and school schedules, sometimes it is appropriate to provide dinner before the training

and calling begins.

- Soft drinks - Cups/napkins/paper plates

- Ice - Candy/chips/pretzels/cookies, etc

- Pizza/salad/breadsticks

PrizesGift certificates rang ing from $10-$25 are very ap propr iate prizes. Tailor them for your

callers. For stud ents, gift certificates from p laces such as The Gap, Best Buy , Blockbuster, J Crew ,

Target, movie passes, and p izza are good incentives. For adu lt callers you m ay w ant to try gift

certificates to local restaurants, Starbucks, Hobby Lobby, Einstein Bros. Bagels, Target, lawn andgard en shop s, bookstores, etc. If you can get these d onated, that is great, but they a re also legiti-

mate expenses of a phonathon.

Aw ard prizes for each calling session in t he follow ing cat egories:

-most calls comp leted (this mean s the caller has sp oken w ith the ind ividu al and

completed th e call, even if it was a no)

-most pledges received (regardless of dollar amount)

-most dollars raised


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Dollars for Scholars Fundraising Guidebook Section Four: Volunteer/Student Phonathon

4-3

If you can, consider t-shirts with your chapter nam e for all of your callers as a than k you! There

may be a t-shirt vendor who would be willing to provide these for you.

Goal chartUse poster board and make a thermometer or something that grows that you canfill in with marker as you reach increments up to you r dollar goal. Your callers can visibly see (and

be inspired by!) progress d uring the calling.

BalloonsUse Mylar balloons (they will last through several calling sessions) to designate wherethe callers should sit. This provid es a festive atmosphere and helps avoid callers escaping into

unauthorized areas or retiring to small offices where you cant monitor them.

Pledge formsThe caller will fill the form out immediately after the pledge has been received and

should note the resu lts of the call including their own nam e or initials and date of the call, amou nt

pledged (if any), any corrections to address information, any notable comments made by the pros-

pect/ don or, the familiar name of the p rospect/ donor if they learned this, etc. This information

should then be entered into the chapters database.

#10 envelopes & #9 envelopes and stampsThe #10 envelope should be hand-addressed andmailed with the completed pledge card and #9 envelope so that the donor can conveniently fulfill

his pledge. If finances allow, you w ill get an even better return if you place a stamp on the #9

return envelope.

NotepaperAsk your callers to please take time to write a short note of appreciation to send with

the pledge card. This will increase your percentage return although you should an ticipate at least

85% of your p ledges being fulfilled. Make sure th at the notes are p ersonal and refer to something

in the phone conversation.

Training InformationPrepare a folder of information for each caller thatincludes a list of board members, number of scholarships awarded in

chapter history and last year, number of students who have receivedscholarships, app lication dead line, fund raising events held, br ief

chapter history and:

Script

How to Handle Common Objections

Fact Sheetnumber of scholarships awarded, etc.

Time Zone Map copy from phon e book (if calling a lumn i

out of state)

MusicUse a CD player to play music in the background

NoisemakersFor callers to blow, clank, etc. when they receive a pledgeyes this is corny, but it

works and inspires the other callers.

In boxes labeled Pledges, Considerings, Nos, Not Reached, and Bad Phone Numberto pro-vide an organized w ay for your callers to turn in their calling sheets. You can u se box lids or

traysthey dont have to be fancy.


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4-4

Publicity for Phonathon

Generating local pu blicity before your p honath on may boost your response. There are several

different w ays you can notify the comm un ity that youll be calling them for their supp ort:

-Newspaper article/ ad before the phonathonask a local merchant to sponsor an ad

-Posters placed in schools and local stores and businesses in th e commu nity

-Pre-call letter or postcard (see example). The letter can includ e a return en velope so a

pledge can be mailed to the chapter. If they mail it in before the Phonathon , they can be

crossed o ff the calling list.

-Ad in student newspapermore parents than students read itor PTA announcement


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4-5

Training

PracticeHaving the callers practice what they are going to say will be helpful in reducing any

anxiety about making the calls. Have stud ents/ callers pair up and go over the script.

Hint: The call should sound conversational and not fake. Do not read the script word for word.

Have the callers jot notes in the margins or re-write a sentence so it sounds natural to them.

Phone EtiquetteRemind the callers of ph onathon etiquette: always ask th e caller if he or she hasa mom ent to take the call. If it is not a good time for the call, ask for a better time to call back.

Voices will sound more p leasant if callers smile wh en speaking, and they shou ld always w ait for

the donor to hang up first. If the caller is a student, they should ad dress the prosp ect as Mr., Mrs.,

Dr., etc. as a matter of respect.

How to Complete the Pledge CardReview the calling sheet and pledge card with the callers.

The caller can record notes on the pledge sheet such as CB for callback an d NA for notavailable/no answer. After the pledge is recorded, instruct them to ask the prospect/ donor if

the address and phone information is still current.

If the donor is uncertain if he or she can contribute this year, mark CON for consideringand send a pledge/ contribution card w ithout a specified gift amou nt. They shou ld be

thanked in the accompanying note for considering a contribution.

If the donor is willing to donate but does not know how much, mark it UNSPE for un -

specified. A pledge card w ill still be sent but withou t a specific gift amoun t.

If the p rospect says no, mark it REF for refused . Ask the callers to write the reason forthe refusal if one is indicated by the prosp ect.

If the donor makes a pledge but does not want you to mail the pledge card, mark the d o notsend p ledge card option. (For example, they may say theyll save you the postage or they

have an envelope and will send it.)

The caller should write a brief personal thank you in the space provided at the bottom of the

pledge card or on a separate piece of notepaper such as Thank you for your gift, Your

gift makes a difference, or We app reciate your sup port, etc and sign their nam e

(Sarah 07 or Bob Nelson 60, for example).


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4-6

Training Informat ion

Prepare a folder of informa tion for each caller. Spend 15 minu tes at the beginning of the

calling training the callers as a large group.

Explain what the chapter does (even though you think they already know) and ask them to

share stories they know about peop le wh o have received a scholarship. Let them d iscuss

the valu e of scholarships.

Give them information on the chapter such as the number of scholarships that have been

awarded in the chapters history, the number awarded last year, the total dollars awarded,

etc.

Explain the fundraising goal for the phonathon and any prizes that youll be awarding.

Explain the process for completing pledge forms and recording informa tion on call sheets.

Review the script

Discuss wh at name to usestud ents should add ress adu lts as Mr., Mrs., Dr., etc.

Discuss how to hand le objections and p repare the callers that they may potentially call

someone who isnt happy about being called, thinks that they are exempt from calls because

of the Do-Not-Call-list, etc. They should n ot take this personally but follow the instru ctions

on the How to Handle Objections Sheet.

Review a samp le calling sheet and how to use it.

Instruct callers not to ask for a gift less than th e previou s gift. For example, if your goal is

to upgrade a $50 donor to $75 and the donor declines the opportunity to contribute $75, askfor $50 vs. asking for $37.50 which is half of the original ask, but is less than last years gift!

Default to th e Last Gift or H alf of the First Ask Amou nt w hichever is greater.

Explain how to use the phonesi.e. do you need to dial 9 to get an outside line, wh ich

lines to use an d how to make long distance calls. (You m ay w ant to p rovide long d istance

calling cards although it is far less expensive if you can just pay the facility for long distance

calls mad e d uring your calling sessions.)


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4-7

Dollars for Scholars PhonathonHow to Handle Object ions

It wou ld be unu sual if there were not some angry or poten-

tially rude responses to your solicitation calls. There won t

be many, but a few are to be expected du ring a phona thon. Its

hard not to take it personally, but d ont!

n Listen. Allow the prospect to say whatever she wishes to

say without interruption.

n Acknowledge the objection. Restate wh at she has told you so that she know s you have

heard her concerns.

n Determine the concerns and wh at you can do to address them. If don t know w hat to do,

ask one of the chap ter board members at your p honathon to help. You may have to say

that you will have a board member return th eir call within 24 hours.

n Edu cate if you cancorrect erroneous concerns or misperceptions if you are know l-

edgable, but always be courteous.

n Dont argu e.

n Respond back with comp lete information. Dont be defensive.

n Thank h im for shar ing his concerns. Many times all it takes is letting the prosp ect know

that h is concerns have been heard to resolve the issue.

n After concern/ issue is resolved , follow u p w ith a note (and ask that a p hon e call from a

board m ember be mad e, if app ropriate).

Note regarding the Do-Not-Call Lists. Volun teers calling for nonprofit organizations are exempt

from the Do-Not-Call List. If someone objects or doesnt un derstand this, explain that youare volunteering your time to raise money for scholarships for the h igh school and that you

hop e he migh t be willing to take the call.


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4-8

Sample Phonathon Script for Non Donors

Hello, may I please speak to _________________?

Hello ________. My nam e is ____________. Im a stud ent at Centerville High School. Im volu n-

teering to help the Centerville High School Dollars for Scholars Chapter contact Centerville alumni

tonight. Im hop ing you might have just a few minu tes to speak with me this evening about our

scholarship program. (wait for confirmation that they have time)

Great!

Were having a great year at Centerville High School! (list accomplishments, facts, significant events

below)

Such as:

Were un defeated in football so far this year. Next week we play North Central. We had 5 National Merit finalists this year.

The chess team won the state championship.

More than 500 students will gradu ate this spring and many w ill depend on financial aid in

order to go to college.

As you may already know, 75% of all Centerville high school students have post-secondary educa-

tion p lans while the cost has increased 500% in the past 25 years. Gifts to Centerv ille Dollars for

Scholars are unique because its our own community supporting local stud ents in their efforts topay for college. The money raised d irectly benefits Centerville High School stud ents. In fact, last

year we were able to award scholarships to _____ students, so

Im hoping that as a community member you will honor the upcoming graduates, and help make

their continuing education more affordable by making a donation of ($50*) to Dollars for Scholars

tonight. Can we count on your supp ort at this level?

*If a prospect has never given, youll have to base your first ask on your best guess of what they can do. It

is fun to tie the ask amount to something significantthe number of students who received scholarships

last year, the number of students you hope to award scholarships to this year, the high schools age, the

score of a rival football game, etc.

(WAIT FOR RESPONSE!!!!)

If no. . .

I under stand . Would a sm aller gift of $** (last gift or 1/ 2 of first ask) be a more comfortable

amount?


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4-9

If yes . . .

Thats great! Thank you so m uch!

I will send you a p ledge form an d return envelope tomorrow. (May I please confirm your ad -

dress?)

Thank you again!

Caller Should Immediately:

n Fill out the p ledge form includ ing the don ors name, and p ledged am ount (if no firm pledge

amount was indicated, leave that space empty).

n Make any needed corrections to the address and add any new information.

n Write a short personal note that will be mailed to the donor with the pledge form.

n Record any personal information or comments on the calling sheet.

n Record the call results on the calling sheet (pledged amount, will consider, decline) along

with the date and your name.


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4-10

Sample Phonathon Script for Previous Donors



teering to help the Centerville High School Dollars for Scholars Chapter contact Centerville alumni

tonight. Im hop ing you might have just a few minu tes to speak with me this evening about our

scholarship program. (wait for confirmation that they have time)

Great!

First I want to thank you very much for your p revious supp ort of Centerville High School Dollars

for Scholars. Our success is because of donors like you wh o really care about edu cation and stu-

dents in our commu nity.

Were having a great year at Centerville High School! (list accomplishments, facts, significant events

below)

Were un defeated in football so far this year. Next week we play North Central. We had 5 National Merit finalists this year.

The chess team won the state championship.

More than 500 students will gradu ate this spring and many w ill depend on financial aid in

order to go to college.

As you may already kn ow, 75% of all Centerville High School stud ents have post-secondary edu ca-tion p lans while the cost has increased 500% in the p ast 25 years. Gifts to Centerv ille Dollars for

Scholars are unique because its alumni and the community supporting local students in their

efforts to pay for college. The money raised d irectly benefits Centerv ille High School stud ents. In

fact, last year we were able to award scholarships to _____ students, so

Im calling ton ight to see if youdconsider a gift to the Centerville Dollars for Scholars Chapter thisyear. Your last gift was $50 if youd like to match tha t, or since the high school is celebrating its

88th year, we are also asking if you could consider a gift of $88 this year. (The ask amount is based on

past giving. You always want to try to upgrade a previous donor if possible. You can u se fun associa-

tions to get donors to consider a gift amount that equals something meaningful to the communitythe

number of students who received scholarships last year, the number you hope to award this year or in the

future, the high schools age, the score of a rival football game, etc.)

(WAIT FOR RESPONSE!!!!)

If no. . .

I und erstan d. Would a sma ller gift of $** (last gift or 1/ 2 of first askwhichever is greater ) be a

more comfortable amount?


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4-11

If yes . . .

Thats great! Thank you so m uch!

I will send you a pledge form and return env elope tomorrow . (May I please confirm you r add ress.)

Thank you again!

Caller Should Immediately:

n Fill out the p ledge form includ ing the don ors name and pledged amou nt (if no firm p ledge

amount was indicated, leave that space empty).

n Make any needed corrections to the address and add any new information.

n Write a short personal note that will be mailed to the donor with the pledge form.

n Record any personal information or comments on the calling sheet.

n Record the call results on the calling sheet (pledged amount, considering, decline) along

with the date and your name.


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4-12

Sample Phonathon Script for Parent Non Donors



teering to help the Centerville High School Dollars for Scholars Chapter contact Centerville

commu nity paren ts tonight. Im hop ing you might have just a few minu tes to speak with me this

evening about our scholarship program. (wait for confirmation that they have time)

Great!

As a parent, Im sure you are already aware of the impact a Dollars for Scholars scholarship has on

stud ents. The Centervi

dollars for scholars fundraising guidebook

Documents