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Resource Center
Fundraising
General Information
A fundraising plan contains the specific strategies your organization
will use to acquire funds for ongoing operations and programs. It
establishes the overall dollar amount needed, lists the sources
of income and details the methods you will use to reach your goals.
The basis for a fundraising plan is a budget and timeline, which
shows how much money you need, when you need it, and what the probable
sources of income are.
Preparation lays the groundwork for successful fundraising. Investigate
the potential sources of income for your organization including
membership drives, grants, business donations, special events and
earned income (i.e. ticket sales, T-shirts, etc.). Determine if
your organization knows how, and has the human and financial resources
to pursue each option of fundraising. Accurately gauging your capacity
to raise funds will help you set realistic goals and avoid frustration
and failure.
One indicator for successful fundraising is an involved, supportive
board of directors. Their willingness to donate time and money to
the organization shows other individuals, businesses and grant makers
that the leadership believes in your organization and programs.
It is difficult to convince others to give if you are unwilling
to donate yourself.
Money does not come from strangers. People give to projects and
people they know. Donations from individuals make up the largest
percentage of support for nonprofits. This area of fundraising can
be successful if pursued thoughtfully. People usually do not donate
the first time that they are asked. The more contracts that an individual
has with your organization, the greater the possibility of a donation.
In designing membership campaigns, this is an important factor to
keep in mind. People who have participated in your programs are
more likely to donate than those who have not. The chances for donation
increases with each contact, so the person who has attended several
programs and receives a personal note from a board member they know
may send a donation.
All types of fundraising are most successful if careful thought
is given in advance.
Evaluating your organization's fundraising capacity helps the board
to see the impact of fundraising on your programs and assists them
in developing a suitable, well thought out fundraising plan.
Creative ways of thinking about Corporate/Business Support:
It is a good practice for the arts council to act as the arts welcome
wagon with the business community. Be diligent in extending personal
invitations to events acquainting the new business leaders with
your contribution to the quality of life. Understand that a high
level of employee involvement is a foot in the corporate door. Work
hard to recruit employees from the major corporations as volunteers
for your events. Actively seek corporate participation on your Board
of Directors.
View a partnership like a marriage. A marriage works when each
partner understands the needs of the other and is willing to work
toward satisfying those needs. The arts council needs financial
and human resources to accomplish its goals. Corporations are looking
for quality impact, high visibility and community goodwill. Working
together to accomplish both of these goals results in success.
From Arts Council How-To, by Diane Peterson, The Alliance
of Ohio Community Arts Agencies, 1996.
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Fundraising Options
Evaluating Internal Resources:
- Do we know how_
- Do staff have the needed time_
- Do volunteers have needed time_
- Do we have necessary space & equipment_
- Do we have the prospects we need_
- How much can we raise_
- How much will it cost_
- Should we do it_
1. Board/Key Volunteer Donations
2. Individual Donations:
a. Personal solicitations for large donations
b. Membership/Friends of Campaign:
i. Personal solicitations
ii. Personalized letters
iii. Telephone follow-up
iv. Mail campaign
3. Fundraising benefits/Special events
4. Personal solicitations
a. Local businesses
b. Local foundations
5. Cultivation and grant writing:
a. City/county governments
b. State government
c. National Endowment for the Arts
6. Cultivation and proposal writing:
a. Corporations
b. State/regional foundations
7. Other:
Adapted from: The North Group, Inc.
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Guidelines for Effective Grant Writing
Gloria Woodlock
Special Initiatives, Planning and Research Officer, California Arts
Council
The Ten Commandments
- Always know the funding source; ask questions about priorities
for funding.
- Remember to make a compelling case for funding based on a documented
need.
- Do not use jargon. Make it simple.
- Always check and recheck your figures.
- Ask for a reasonable amount for the project; do not "pad''
the budget or ask for less than seems reasonable.
- Don't try to figure out unclear guidelines or applications
by yourself---call the grant program administrator to ask questions
(it is their job to answer them).
- No question is too small or too dumb. The little things often
trip up applicants
because panelists are looking for projects NOT to fund and any
flaw could be cause to dismiss the proposal.
- Write your proposal as if you were explaining your case to a
judge---that is what grant review panelists are.
- Use only relevant documentation. More is not better; brief but
complete is best.
- Find out about your successes and failures; ask the reasons
for rejection and success so that you can continue to hone your
skills and understand your weaknesses.
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The Elements of a Grant Proposal
The Narrative:
The narrative is the core of the proposal. It should be clear and
specific and address the main points you wish to address. The nature
of the proposed project, the need upon which it is based, the intended
audience and the type of program, including its artistic approach
and evidence of quality and particularly the expected results are
all crucial to the case.
It is to your advantage to keep within the space provided for the
narrative. Elaborate on the statements made in the narrative, if
necessary, through the documentation that is included in the rest
of the proposal. ln some cases. it may be appropriate to include
statistics, evaluation results and other documentation in an addendum
if it will help illustrate the wisdom of the proposal, just be careful
to cite the addendum carefully in parentheses in the narrative.
Be judicious in what you include; panelists are always experiencing
overload and may be annoyed at an overly long, officious, or boring
presentation.
The narrative is really the best place and perhaps the only place
for you to capture the attention and the imagination of the funder---so
make it clear how your proposal is unique from the many others they
may receive. Try to pull your proposal above the crowded field of
applicants through demonstrating a unique impact it may have.
The Budget:
The project budget should be clear and specific. Include job titles
and categories and rate of pay. Be sure to consult guidelines for
specifics on payments which often are proscribed by specific funding
sources (e.g., CAC will only pay for 50% of any salary line item).
Ask for funding for things of specific interest to the funder --
e.g arts councils like funding artists fees, other funders will
not fund general operating support. Always ask for funding for things
that are not readily funded by other sources.
Budgets are generally divided into salary and operating expense
categories. Do not use indirect costs without explaining them---it
is best not to use them at all, but simply include in the specific
amounts sufficient funding to cover these costs. Any item that appears
vague is an easy hit for those wishing to cut down the request.
Do not leave yourself open to having the panel determine your priorities...make
those very clear to begin with.
Always include a full program budget somewhere in the proposal
even when you are only asking for a portion of the costs. Panelists
want to see that you have planned the project well.
A distinction is usually made between administrative, artistic
and outside professional salaries. Some expenses, such as artistic
or programmatic ones may be more attractive to funders than others
such as administrative ones. However, if you make a good case for
whatever it is you need, this will outweigh the tendency to shy
away from even the most mundane requests on the part of the panel.
The argument is everything; the budget should be supportive of it
in every way.
Check and recheck your figures.
The organizational budget is an important assessment tool for funders.
Much as a doctor takes a patient's vital signs when diagnosing,
the funder will look at the budget as an indicator of a great deal
about the organization. It illustrates how the organization works,
how it plans for its financial future, whether the community and
other funders support its services through earned and contributed
income, and whether the management is using its resources wisely.
The organizational budget indicates the organizations past, present
and future viability.
The budget is more than just a compendium of figures. It should
be completed very carefully and thoughtfully, checked and rechecked
to make sure it makes sense. A sloppy budget indicates sloppy management.
Qualifications:
The proposal should give adequate documentation of the qualifications
of the organization's staff and board to complete the project. It
should also show the organization's qualifications to do the project
based on an adequate track record of accomplishments or clearly
explain why past performance is not the predictor of future success.
Panelists want to see that the organization is qualified to carry
out its mission and that the mission fits with the proposed project.
Explain all noticeable increases or decreases in funding, changes
in staffing and direction, and try to anticipate any questions that
might possibly be raised regarding the organization before they
can be asked. Pretend to be a panelist who does not know your organization
and include just enough (but not too much) documentation to leave
the funder feeling confident that the funding has been allocated
wisely by awarding it to your project. Remember there are far more
requests than money to fund them.
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Everything you really wanted to know about fundraising but were
afraid to ask
- Presentation of the information makes a big and often lasting
impression. Proof, edit, check and then do it again. Only the
most persuasive of proposals can overcome a poor presentation.
- Neatness may not make the difference, but sloppiness might.
- Label everything with your organization's name in case items
get mixed up.
- Be considerate of panelists and staff who may be reading the
proposal. Do not
reduce type, have typos, less than generous margins, and other
annoying blemishes. Do not interfere with a pleasant read.
- Since panelists are looking for things not to fund, don't give
them an excuse.
- The most successful proposals are the ones that help the fundee
to accomplish
something significant for the funder; however, never, never, never
develop a proposal just on that basis alone. If your goals are
not met by the funder, find another funder.
- Funders can tell when a proposal is not sincere or accomplishable
and you will not do yourself a favor in the long run by running
against your best interests, no matter how much you may need the
money now.
- Do not waste your precious time, or that of the funder.
- Remember, you are one of hundreds, perhaps thousands of requests.
Always search for what is distinctive about your project or request
and capitalize on it. Try to make your proposal memorable in a
very competitive field.
- Never ever give up. Three times is said to be the charm.
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Do's and Don'ts of Solicitation
To be an effective solicitor takes tact, patience, knowledge, some
easily acquired skills, and commitment. Knowing a few simple DOs
and DON'Ts makes the job of a solicitor simpler and results in more
success.
The following materials and suggestions are designed to help you
become an effective solicitor. If you follow these simple ideas
you will get a lot more out of your face-to-face solicitations .
. . and so will the campaign.
- DO SOLICIT YOUR OWN GIFT FIRST. Make your own commitment before
you solicit others and be as sacrificial in your own giving as
you expect your prospect to be. DON'T ask somebody else to make
a gift to the campaign before you have made your own. You are
your own most important prospect.
- DO SEE YOUR PROSPECT FACE-TO-FACE. Use the telephone only to
make appointments. Explain why you are calling and arrange for
a convenient and appropriate time and place to meet. DON`T try
to raise funds on the telephone. It's all too easy for the prospect
to cut you off.
- DO SET UP A REALISTIC CALENDAR. Your calendar should make it
possible for you to handle assignment within the required timeline
set by The Arts Council. You are the best judge of your commitments
to your business, family and social life.
- DO KNOW YOUR PROSPECT. Go to your appointment with information
about your prospect well in hand. Know their giving history and
community priorities. The Arts Council has provided information
about each account in the call packets including giving history,
number of employees and type of business. DON'T neglect learning
the facts about your prospects. A solicitor can get into some
pretty embarrassing situations that show he is not familiar with
the prospect's background. You would not do this in business,
and you should not do this in your "philanthropic business."
- DO KNOW THE WHOLE STORY. Acquaint yourself with the latest facts
on the campaign, the Case for Support, the accomplishments of
the organization, etc. This information is available in the manual
"Everything You Always Wanted to Know about the Arts Council."
DON'T go to a solicitation without knowing the facts about this
year's needs and the answers to familiar questions that come up
repeatedly about the campaign. Don't take for granted that it
is the same old story as in years past. This year's story, "Give
them the Gift of Art," focuses on art and education. Refer
to the campaign brochure for more details.
- DO KEEP UP-TO-DATE ON THE CAMPAIGN. Keep up with what's happening
m your own campaign. Read any information that is sent to you.
Have information on campaign progress at your fingertips or know
where you can get it. If you have to find information, assure
your prospect that you will send it to him.
- DO DRAW ON YOUR OWN EXPERIENCE. Whenever possible, relate a
personal story that relates to the mission of the arts or The
Arts Council. Your solicitation will be more believable and more
emotional if you can link it with something that has happened
to you or your family and with which your prospect can identify.
- DON'T rely on a long recital of dry facts and abstract arguments
that bore the person you're trying to motivate to commitment and
responsibility.
- DO RESPECT YOUR PROSPECT. Conduct each interview with tact and
sensitivity. Treat your prospect like the intelligent, thoughtful
generous person he or she is.
- DON'T lessen your chances by patronizing your host with remarks
that reflect on his understanding of the needs, past generosity,
or sincerity of feelings toward giving.
- DO LEARN TO LISTEN. Give the individual you're visiting the
opportunity to discuss the situation with you, to tell personal
experiences and express a point of view. Draw the other person
into the conversation. This will help you build rapport and potentially
provide new information.
- DON'T lose your prospect by doing all the talking, never letting
the other person get a word in edgewise. A prospect may resent
a hard sell, fast-talk approach to a discussion dealing with so
important a decision as his philanthropic contribution.
- DO ASK FOR A SPECIFIC AMOUNT OF MONEY. The Arts Council has
predetermined the gift amount. This is indicated on the call sheets.
The amount of money is based on several factors, including giving
history, benchmarking comparable companies in similar industries
and researching level of support to other not-for-profits.
- DO ASK FOR A COMMITMENT. Make your listener feel that giving
is not charity, but a commitment to our quality of life and that
of our community.
- DON'T apologize when you ask for a commitment. When you ask
for a pledge, you're talking about the most important needs affecting
our community. You don't have to apologize. It is important that
you 1) State the specified request and 2) Get their reaction.
- DO RECOGNIZE WHEN YOUR PROSPECT IS CONVINCED. Close your solicitation
when it is clear that your prospect is ready to make his gift.
- DON'T press too hard and keep trying to convince your listener
long after you have made your case. Relax. As a good solicitor,
know at what point you have convinced your prospect of what is
expected and of his importance in supporting this year's appeal.
- DO COME AWAY WITH A COMMITMENT. Whenever possible, come away
with a definite commitment. Sometimes it's better to settle for
a smaller amount on the spot than to give the prospect a chance
to think it over. As days pass, the impact of what you have said
may fade in his mind. Some prospects will fill out the pledge
card on the spot and give it back to you. Some prospects will
indicate the need to take the request before a committee or to
a higher level. Some will need time to think it over. A11 these
responses are valid. It is important, however, that you get a
verbal commitment or understanding regarding whether they will
or will not contribute and why. Also, we need a verbal commitment
for a decision date. Three weeks is the standard time frame for
a decision. Indicate when The Arts Council can expect a response
on the call sheet.
- DON'T allow your prospect - if it is at all possible - to avoid
making some commitment. Instinct should tell you when the prospect
means it or when he is stalling by saying, "Let me think
about it . . . I'll be in touch with you."
14 Ways to Increase your
Planned Giving by Joan Zieger, Madison, retired senior
staff for Wisconsin Public Television
- Increase renewal letters to 4 "hits".
- Add one "lapsed" letter sent six months after the
last renewal letter.
- Mail major gift renewals between November 1 and December 10
of each year.
- Mail additional gift requests between November 1 and December
10 of each year.
- Ask for a pledge, not a cash gift.
- Get a challenge grant from a current donor.
- Phone lapsed donors to ask them to renew, and ask them why they
haven't renewed -- discover problems with the organization or
their financial status.
- Create a major gift club of $1,000+.
- Ask $250 donors to join the major gift club.
- Ask your board members to give leadership gifts of $1,000+.
- Add planning giving sentence to all response cards: "please
send information on how to include [your organization] in my will."
- Accept contributions via credit card.
- Receive and review monthly computer donor reports, to determine
your next moves (i.e., is the renewal rate dropping, are major
gifts not coming in, who to solicit).
- Renew all grants for the second, third, fourth, etc., years;
mark deadlines on caldnars; give four-month lead time to phone,
confirm availability and re-submit grant application.
Funding and Fundraising Links
- Center for
Community Economic Development, UW-Extension
http://www.uwex.edu/li/andy/grants.html
an EXCELLENT resource for general, and state and locally-specific
fundraising information
- National Association for the
Exchange of Industrial Resources
http://www.naeir.org/
Dedicating energy and resources to soliciting donations of valuable,
new merchandise from American corporations (donors) and redistributing
this merchandise to members, nonprofit organizations, churches,
and schools
- Guidestar
http://www.guidestar.com
GuideStar is the national database of nonprofits, produced by
Philanthropic Research, Inc., whose mission is to revolutionize
philanthropy and nonprofit practice with information.
- The Foundation Center
http://fdncenter.org
Affiliated resource centers are located at Marquette
University Memorial Library Funding Information Center, UW-Madison
Memorial Library Grant Information Center, and UW-Stevens
Point Foundation Collection
- "Foundations in Wisconsin", containing information
on over 110 private foundations in the state, published by Marquette
University. Order it
from the Assembly!
- Society for Nonprofit Organizations
http://www.snpo.org
- List of Dane County foundations, available from the Dane
County Cultural Affairs Commission
http://www.co.dane.wi.us/dcca/
- "Bricks and Mortar" grant
program, from the Kresge Foundation
Offering challenge grants for the construction or renovation of
facilities, the purchase of major equipment, and the purchase
of real estate. Eligible organizations include tax-exempt, charitable
organizations operating in the fields of higher education, health
care, long-term care, human services, science/environment, arts/humanities,
and public affairs. Rolling application (no deadline); grant amounts
range from 1/5 to 1/3 of the needed balance. Recent grants ranged
from $150K to $600K, and 20% to 50% of the private fund-raising
goal must be raised before applying. For more information, go
to www.kresge.org
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