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Philanthropy & fundraising

Philanthropy & fundraising. Act of donating money, goods, time, or effort to support a charitable cause Prospects Individuals, corporations, foundations who appear to be potential donors Donors People who give. Philanthropy. Why people give. $307.65 billion given Decreased 2% from 2007

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Philanthropy & fundraising

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  1. Philanthropy & fundraising

  2. Act of donating money, goods, time, or effort to support a charitable cause • Prospects • Individuals, corporations, foundations who appear to be potential donors • Donors • People who give Philanthropy

  3. Why people give

  4. $307.65 billion given • Decreased 2% from 2007 • 2007 record giving - $314.07 billion • First decline since 1987 • Mega gifts (ie. Warren Buffet 1.9 billion) make up 1.3% of all gifts • 65% of households with incomes below $100,000 give to charity • Average American gives 3.1% of their income • Low income give greater % of income (5.2%) 2008 Giving

  5. Who Gives

  6. What do they give to?

  7. How to give - tripod of giving $$$$ Needs of Org. Source

  8. Current income • 1 time gift • Monthly • Assets • Securities, stocks, bonds • Other??? • Estate • After death • Planned giving $$$$

  9. Current programs Buildings & equipment Endowment Needs of the organization Examples: Rec Services? NPRD?

  10. Basic premise • Get the gift, repeat the gift, upgrade the gift • Annual fund pyramid…. Annual Giving

  11. Annual Giving Raised thru very personal means – personal contact, cultivated, a lot of attention 60% of $$ Raised thru more personal means – phone calls, challenge gifts 20% of $$ Raised thru impersonal means – phonathons, direct mail; expensive 20% of $$

  12. Intensive fundraising campaign designed to raise an established amount of money to fund capital projects Requires large gifts Can pledge money over several years Can last 2-10 years Not usually announced until 50% of $$ raised 4 types of capital campaigns… Capital campaigns

  13. 4 types of capital campaigns • Traditional campaigns • Bricks & mortar • Involves construction/renovation of a facility or major purchase of equipment • Endowment campaigns • Aimed to increase size of endowment • Endowments – invest $$ & work from interest • IU Foundation example • Use 5% of interest • 20% ROI means, use 5%, reinvest 15% Capital campaigns

  14. 4 types of capital campaigns • Comprehensive campaigns • Brings all agency needs together to determine goal • Facilities, programs, etc • Project campaigns • Targets special projects, programs, or cash reserve • Capital campaigns do NOT replace annual giving Capital campaigns

  15. Capital campaign Giving Best way to raise $100,000 isn’t 100 gifts of $1,000 Smaller gifts require more money to get the gifts.

  16. Planned giving • Donor makes a gift of current assets, income or estate to be given in the future

  17. Gift catalogs • Lists needs & $ amts • Advantages • Shows need • Gives people options • Gives people ideas…gift for my rich uncle • Shows tangible items • Examples… Popular donations options

  18. Personal bricks • Build walkways • 300%-1000% profit • Oak Ridge Example (link) • Donation boxes & fountains • Fill boxes with starter money…no one gives to an empty box • Check off donations • Income taxes • Registration forms • Utility bills • Opt out bill…$.50 automatically added to bill, must opt out of it Popular donations options

  19. Adopt a… • Facility, path, program, animal, park Popular donations options

  20. Cause related marketing • Link donations to the purchase of a product • American Express – 1 cent of every purchase to restore Statue of Liberty • Egs??? Popular donations options

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