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Finding The Funding: A Hands-On Approach To Fundraising Essentials
Finding The Funding: A Hands-On Approach To Fundraising Essentials
Finding The Funding: A Hands-On Approach To Fundraising Essentials
Fundraising Essentials
Presented by
October 6, 2006
Milwaukee, Wisconsin
Hilton Milwaukee City Center
2
QUALIFYING QUESTIONS 14
OVERCOMING OBJECTIONS 18
FOLLOW-UP QUESTIONS 19
QUESTIONS FOR FOUNDATIONS 20
Background
1. Who is the audience?
2. What do you know about them? What is their mission?
3. What motivates their interest? How will this project meet the donor’s
needs and interests?
4. Have they supported your organization before? What did they give to?
5. Who else do they support?
6. Has anyone met with them recently?
7. What is your relationship with the organization? Board members?
Staff?
Introduction
8. What is your organization?
9. What is your mission? Vision?
10. What are your organization’s qualifications to do this work?
Project Description
17. What is the project?
18. Why is this project unique?
Personnel
21. Who are the key personnel working on this project?
22. What are their qualifications?
After you gathered the basic information for your proposal, make it as
persuasive as possible by telling a story.
Proposal Structure
FOLLOW THE FOUNDATION’S GUIDELINES!!!
Unless you have been given other direction, the proposal should be limited to 10
pages or less.
If the foundation does not have specific guidelines, include these basic
components to tell your “story.”
Proposal Attachments
Y/N
YOU HAVE DEVELOPED A 3-5 YEAR STRATEGIC PLAN. As part of this plan, you
have tracked your current sources of income (e.g. foundation, corporate,
individual, and identified a need for increased support from individuals.
YOU HAVE A STRONG DESIRE TO INCREASE INCOME AND BUILD A LARGER
NETWORK OF SUPPORTERS. You want to broaden your base of support and you
are ready to follow up on the major donors you identify.
YOUR SENIOR MANAGEMENT AND/OR BOARD OF DIRECTORS ARE
COMMITTED TO DIRECT MAIL. To prepare and sustain a direct mail program,
you need to be very committed to the work it will entail. Even if you use outside
vendors, you will have to approach this as a new program that will require
time and resources.
YOU HAVE DEVELOPED A STRONG CASE FOR SUPPORT THAT ADDRESSES WHY
YOUR ORGANIZATION IS UNIQUE AND WHY YOUR WORK IS IMPORTANT. When
it comes to preparing an actual letter you will need to identify a problem you
are trying to solve, your solution to the problem, your strategy for solving the
problem, and the benefits to the contributor if he supports you.
YOU UNDERSTAND THAT IT WILL TAKE 18-24 MONTHS TO RECOUP YOUR
INVESTMENT. Most organizations lose money on their prospecting programs
so you need to budget accordingly.
YOU HAVE DEVELOPED A COMPREHENSIVE BUDGET. This includes the costs of
internal staff to manage the project, state registration fees, a copywriter, mail
house services, list rental, postage, etc.
YOU HAVE A FUNCTIONING DATABASE. Your database (whether it’s a
fundraising program, contact management system, or Excel file) is able to
capture relevant contact and gift information for each donor.
This scenario assumes your prospecting lists are solid and that you are asking donors for
a gift of $100 or more.
At the end of this process, you will have “lost” $300 but gained ten new donors whom
you can solicit for additional gifts throughout the year.
As you create your budget for direct mail, you may want to consider that an
effective high-dollar prospecting mailing can cost about $2.00 per package. This
includes:
• Copywriting services
• Mail fulfillment services including
o Package design (Number of pages, design of the envelope, etc.)
o List brokering (Renting lists from other organizations)
o List management (Performing merge/purge of lists)
o Personalization (Using the prospect’s name)
o Production (Printing and mailing)
• First-class postage
If you only mail in one state, this process is fairly easy and inexpensive. If your
organization solicits contributions in numerous states, you probably want to
consider hiring a firm to handle the registrations and the annual renewals. Each
year several states change their laws and forms.
Source: Labryinth, Inc. Note: Contact each state for the most up-to-date information on
registration requirements.
Qualifying Questions
Part of the fundraiser’s job is to assess the donor’s ability and readiness in
making a major gift. In a face-to-face meeting, you will have the opportunity to
uncover information about the donor such as their motivation for giving, their
family situation, their interest in your organization, their philanthropic activity,
etc.
Reveals: Motivation
Thank you very much for your gift. Can you tell me what prompted it?
Do you believe we have a strong case for support? If so why? If not, why not?
To what extent do you believe (the expansion of government, high taxes, decline of
moral values) are serious problems for our (state, country, world)?
In what ways do these issues impact you, your family, your beliefs, your values?
As you (read, heard) our vision for the future, in what ways to do see our
organization effectively addressing these issues?
Are there other ways our organization could help solve this problem?
Are there any questions about our vision, mission, work, priorities that we've not
answered?
What other conservative groups are you involved with? [On the board of?]
Which are the top three organizations you support? Why is that?
Where is our organization on your list (if not among the top three)?
When you give, do you give both annually and to capital projects?
What capital gifts have you given that have given you pleasure?
How did it come about? What made it so pleasurable? Are you still involved with
them?
Under what circumstances would you be willing to make a stretch, capital gift to a
charity? To our organization?
Among our fundraising priorities, which do you find the most compelling? Why?
Least compelling? Why?
Reveals: Wealth
Have you had a chance to take some time off this year? Where did you go?
What do you think are the top three issues facing our country/state?
Many donors tell me that they are concerned with the direction the country is
going. What have you seen that’s worked? or What do you think would work?
What are the ages, names of your children? Grandchildren? Where do they
live?
In my household my spouse and I make all of our giving decisions together, how does
it work in your household?
When you think about your grandchildren, what concerns you the most?
Have you ever made a gift using a planned giving vehicle like a trust or annuity? How
did that come about? Is that something that interests you? Do you feel
knowledgeable about such vehicles? Would you like to know more?
Reveals: Values
What are the guiding principles that have helped you achieve in your business
life?
To what extent does our organization’s mission dovetail with your beliefs? How
so?
What do you expect from the charitable organizations that you become involved
with?
How have other organizations demonstrated to you the impact of your giving?
How do you like organizations to demonstrate their appreciation for gifts you have
made?
If I could demonstrate to you the true impact of your philanthropy, would you prefer:
something named for your or someone you love; meeting some of the people you have
helped; hearing from some of the people you have helped; receiving a report on how
you money has been spent; all of the above.
In what ways do you feel good about the gifts you make to our organization?
How well do you know our programs? Which ones? How did that come about?
Which aspects of our programs do you believe are our greatest strengths?
Do you feel we use your contributions wisely, that we are fiscally well managed?
What are your impressions of our publications [newsletters, etc]? Which ones do
you get, read, like?
Do you feel more informed about our mission, vision and work as a result of
reading our publications? More informed about how your gifts are used? More
informed about our priorities and plans for moving forward?
Have you attended any of our events? Which ones? How did that come about?
What was your impression?
Do you have any particular concerns you would like me to share with our
CEO [Board, etc.]?
Do you feel you know our President/CEO and trust his/her leadership?
Have you had an opportunity to (read, hear) our (vision for the future), (our
strategic plan), (our bold ideas for future), (the benefits we see in this project)?
How have you been involved with other organizations? What was the experience
like?
Who among your friends and acquaintances might be moved by our work?
What one piece of advice would you give us as we plan our future?
We would love for you to (insert involvement request here). Is that something you
would find of interest?
I remember you saying that (fighting for limited government; our intern program;
our education work) is important to you, is that right?
If I understand you correctly, what you'd like to see is (our conservative values
represented in Washington; more opportunities for young conservatives;
consumer-based solutions to the health-care crises; less regulation of small
business)?
As you think about making a real difference, what projects (priorities, programs,
giving opportunities, naming opportunities) have the greatest appeal?
We would like to come and speak with you, over the next few weeks (days,
months), about making an investment in our organization. Who should be a part
of that conversation?
As you think about our organization's ambitious goals for the future, which of
our priorities do you think should be the most important? How would you rank
the others?
You've shared with me the tremendous impact you believe this project will have
on (Americans; students; etc.) including (impact summary). Is that correct?
Overcoming Objections
(Objection: "That's a lot of money.") It sounds like you're wondering why we
need that amount in order to get the impact we've discussed. Am I correct? The
reason is....
(Objection: "We're over committed.") It sounds like you would like to invest in
our organization but right now you can't see how you might do that. Am I right
about that? Would it be helpful if I explained some of the ways others have
managed this problem? They....
(Objection: "We don't believe in giving to operating. It's just a black hole.")
Perhaps you'd like to know specifically how your gift would be used. Would that
address your concern? Here's how unrestricted gifts make a powerful and
specific impact on the people we serve...
(Soft answer: "Let me think about it and I'll get back to you.") What factors will
you consider as you weigh our request?
(After objection is stated) "So, you're concerned about (restate) is that correct? If
that were not an issue, what would you like to accomplish with a gift to our
organization?"
(After objection is stated) "So, you're concerned about (restate) is that correct? I
remember the last time we met you said that it was very important to you that
(what the gift would accomplish), has that changed for you?"
Follow-up Questions
How so?
Are we in agreement?
If that (some objection to getting involved or giving voiced prior to solicitation) was
not an issue, in which of our priorities would you be interested?
We would love for the foundation to make a site visit, how can we make that happen?