INTRODUCTION TO FUNDRAISING

Presentation for the GAELIC Workshop

 24 May 2010

By Heather Regenass

Presentation• The Fundraising Cycle

• Project Formulation

• Proposal Development

• Prospect Research

• Matching Prospects

• Cultivation

• Solicitation

• Stewardship

• Common Mistakes

• Conclusion

“Fundraising is Friendraising”

The Fundraising CycleThe cycle of successful fundraising

© INYATHELO

Stewardship Solicitation

Project Formula

tion

Proposal

Development

Prospect

Research

Prospect

Matching

Cultivation

SolicitationStewardshi

p

Project FormulationThere can be no management of fundraising

without planning.

• Do you know what you are asking for?

• Do you have a development plan?

• Does it fit with your organisation’s vision and mission?

• Is the leadership on board?

• Do you have a fundraising plan?

Proposal Development• A proposal is part of a larger process (inc

research, cultivation and solicitation)

• The proposal is part of the cultivation of a donor/investor

• The proposal can come before any other contact is made or at the end of the fundraising cycle (after the ask)...or anywhere in between.

Prospect Research• Prospect research, is also known as

development research or fundraising research. It is a process in fundraising wherein a researcher identifies and provides relevant information about potential donors to an organisation.

What is required for Prospect Research?• Competent staff• Print resources • Internet facilities and resources• Databases – Devman; Foundation

Centre Online;

Types of Prospect ResearchA) Proactive – Socio Political and Broad

Data collection; increased donor pool; donor community trends; national grant making trends; paradigmatic shifts in development

B) Reactive – Specific Searching existing donor pool; profiles and

matching

The Prospect Research Cycle

2. Internal Stakeholders Brainstorm

3. Sift existing data pool

4. Broad Prospect List

7. Prospect Profiles

6. Create short prospect list

5. Specific research (in-depth)

1. Understand project

List of ResourcesInternational philanthropic and other websites often used in prospect research

www.chapel-york.com

www.philanthropyineurope.com

www.onphilanthropy.com

www.corporatephilanthropy.com

Comtemporary Africa Database: people.africadatasbase.org

General search engines

South African philanthropic and other websites often used in prospect research

www.papillonpress.co.za - FREE donor directories of org's and ind's with breakdown of focus areas

www.thefundingsite.co.za - subscription site of prospective donor profiles (nice if struggling to find the information or simply don't have the time - R750 for 12 months)

www.Mbendi.co.za – profiles corporates, business and political executives, organisations, etc.

http://foundationcenter.org/ - subscription site of USA and Canadian (i think) Foundations - gives nice breakdown of focus areas, financials, grants to other org's, etc... I think not cheap but a MUST in a development office

http://foundationcenter.org/pnd/ - Philanthropy News Digest - FREE weekly newsletter with updates on Foundations and grants made.

www.satimes.co.uk - UK online newpaper that profiles an SA moving and shaking in the UK.

www.whoownswhom.co.za - book on companies (listed and not) and their structure (Directors, Subsidiaries, etc..) some find this useful, others not.

www.whoswhosa.co.za - subscription (get hard copy and CD-ROM) - very good resource profiling Who's Who in Southern Africa. A MUST in a development office.

www.forbes.com - FREE lists of people by gender, wealth, age, etc.... just need to sign up

http://business.timesonline.co.uk/section/0,,20589,00.html - UK Rich list 2006 broken down into newcomers, new and old money, the full list etc... nice little profiles on ppl

www.busrep.co.za/index.php?fSetId=261&fSectionId=2509 - SA Director's Dealings - updated weekly with new articles. Good way of starting to assessing individual's wealth.

www.fin24.com latest director's dealings from the JSE - additional list

Top Women in Business & Government 2005/6 - published by Top 300 Publishing & Events

Keep eyes open for lists that hit the newspapers, for instance, the Sunday Times Top 500 Wealthiest South Africans; the M&G Yellow Book of Prominent South African Women; Sunday Times Top 10 Most Powerful Black Directors & Top 10 Most Influential Black Directors; Sunday Times Top Brands; Financial Mail 2004 Annual CEO Packages; Sunday Times 2006 Companies of the Future; Sunday Times Top 100 Companies.

Ideal Prospect Data• Organisational details• International funders• Capacity to give• Giving guidelines• Previous giving• Relationship with institution• Deadlines• Submission process

Matching Prospects• Using proposal and prospect research

to link the needs of the donor to the needs of the project

• Matching prospects will lead to stronger relationship

• Give the donor an opportunity to give to something they are passionate about

Cultivation• It is rare for a new contact to become

a donor.• Relationship building is key to long-

term sustainable support• On average it takes nine meaningful

interactions for a donation

Cultivation – Why?

The more donor/investors are involved in the activities of the organisation,

the greater their financial commitments

Cultivation Process

Awareness

Interest

Trust

Commitment

Cultivation Activities• Events

• Open day, invite to open even

• Personal Interaction • Discussion with staff and volunteers

• Meetings• AGM, round table discussions

• Lunches/dinner (e.g end of year)• Invitation to join advisory board or

trustees

Solicitation

THE ASK

Once you have established the relationship the asking is the easy part!

Stewardship

• Is the new relationship that follows an investment

• Is about making the investor’s experience as pleasant as

possible

StewardshipCourtesy:

• Good manners • It is the right thing to do• A donation requires a response – people do

not buy a response

THANKS

• Develop a culture of thanking

• Install thanking systems

• Thankathon

Why a Stewardship Plan?• To increase donor investment in your

organisation• To increase the number of repeat

donors• To increase the amounts given by

existing donors • To maintain long-term support• Donors bring other donors

Stewardship of the gift

Stewardship is also about stewardship of the gift

• Ensure good financial reporting• Ensure narrative reporting• Ensure funds are used as indicated in

the proposal.

Why Report back?

Part of stewardship is reporting

• Essential part of maintaining good relationships.

• Contractual condition.

What donors want to know?• Project success/problems• Personnel changes• Awards for your work• Evaluations of your work• Other funders in the project• New funding requirements

Gilchrist, Karen, Looking After Your Donors,Directory of Social Change, London, 2000

Practical Stewardship• Quick turnaround time for

• Thank you letters• Receipting

• Personalised thank you letter from VC.• Donor recognition for large contributions, long-term

donors• Events

• Programme launches• Publications – newspaper reports• Meetings with beneficiaries• Email progress reports• Invitations to general events• Follow up on pledges politely

Building loyalty through Recognition

Donors like to be recognised by:• Thank you letters• Plaques• Mention in annual report• Special events• Naming• Certificates

Common Mistakes• Expectations of immediate results• Focus on marginal projects• Public criticism of the university• Avoiding prospect clearance• Accepting funds that are not in line

with priorities• Wild-cat fundraising

ConclusionOur donor base can be grown with long-term

vision and commitment.Raising funds involves the following principles :• Relationship building• Confidence in vision, mission and leadership• Attracted to successKey functionality required is:• Good prospect research• Prospect clearance system• Cultivation plan• Stewardship plan• Underpinned by data base and communications and

marketing

Questions for discussion & way forward

Thank you