Fundraising Strategies: Session I

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Fundraising Strategies Session I

• Vernon J. Henricks
• vhenricks_at_mccks.edu 785.564.2121

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Who is Vern Henricks?

• Christian
• Husband
• Father
• Community Leader
• Philanthropist
• Coach
• Fundraising Leadership Consultant
• Businessman

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Ministry or Fundraising?
Is your work a ministry?  Or is it really
fundraising in disguise?
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Your Ministry Challenges

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The profession of fundraising is a highly ethical
profession guided by principles of honesty,
integrity, and quality.
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Definition of development
Creating opportunities to connect God's people to
God's work. 
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1 Timothy 617-19
Command those who are rich in this present world
not to be arrogant nor to put their hope in
wealth, which is so uncertain, but to put their
hope in God, who richly provides us with
everything for our enjoyment. Command them to do
good, to be rich in good deeds, and to be
generous and willing to share. In this way they
will lay up treasure for themselves as a firm
foundation for the coming age, so that they may
take hold of the life that is truly life.
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Purpose of development

• To connect the followers of Jesus who desire to
  be good stewards with the ministries and causes
  that they care about or are called to. 
• The higher purpose here is that the journey of
  the steward is more important than our
  fundraising goals.
• It is God's desire that every one of his
  followers is a wise steward with their money,
  time, intellect, relationships, position in life,
  and environment.
• To find opportunities for stewards to give to the
  Lord's work and achieve their stewardship goals.

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Giving in the U.S. - 2006

• Americans charitable giving reached record
  highs, with individual giving accounting for 83
  of the 295 billion given in 2006.
• Americans donated 2.2 of their average
  disposable, or after-tax, income.
• The amount of money transferred to ministry was
  unprecedented in history.

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U.S. Charitable giving 2007 Giving USA 2008

• Up 3.9 despite worries about gas prices,
  mortgage crisis and housing market .
• Charitable giving in the United States is
  estimated to be 306.39 billion in 2007,
  exceeding 300 billion for the first time in
  history.
• Every type of public charity receiving donations
  saw gains in 2007.

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The Bottom Line

• If we are to give our donors an opportunity to
  make a wise stewardship decision by giving to our
  ministries, we must continually communicate the
  results, impact, and needs of our ministries on a
  regular basis. We should assume nothing.

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Are You Communicating?

• Are you donors truly informed about your
  ministry? 
• Do they know what you are accomplishing with
  their giving? 
• Do you share the successes and the failures? 

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Communication Ideas

• Newsletter that communicates stewardship ROI?
• Thank you letter / receipt that communicates your
  thankfulness and accountability?
• eNewsletter that is timely and brief to keep a
  donor updated?
• Annual Report that summarizes the year of
  ministry results and financial accountability?

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CommunicateALWAYS

• YOUR Ministry of Development is based on your
  relationships with your donors. Seek to
  communicate whenever you can and you will find
  your donors are with you, no matter the
  situation, economy, or trends.

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Facts About Finance

• 10 of the people in America control 90 of the
  net worth.
• 93 of the net worth controlled by the 10 of the
  population is held in non-cash assets.
• Most ministries spend the majority of their time
  and resources going after cashchasing the 90
  who only have 10 and much less discretionary
  income from which to give.

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After all my calculations I have come to the
conclusion that its not what you know, but who
you know that counts.
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The Desires of Major Donors

• To have their time opinions valued
• To invest their heart and passion
• To give their expertise when possible
• To enjoy the thrill of making a ministries dream
  happen

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Relationships Are the Key

• The ultimate product of major donor ministry is
  the donor himself/herself. The goal is to see an
  individual thriving in Christ, happily fulfilling
  his God-given role as a giver.
• When we care more about the donor than the
  donation, donations tend to follow.
• Donations are the by-product, not the
  end-product, of the relationship.
• Friendraising connects people who have a passion
  for the ministry and a capacity to fund the work
  of the ministry.

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Its All About Relationships
Love the Lord your God with all your heart,
with all your soul, and with all your mindLove
your neighbor as yourself - Matthew
2237,39
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Craig LawrenceCo-founder of Lawrence Schiller

• People give most generously when
• A vision is compelling.
• They are provided a way to have a meaningful
  part.
• The ministry provides opportunity to impact THEIR
  community.

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What Donors Want to Know

• Do you care about me or just my money?
• Do you have a plan and is it sound?
• Can I trust youll do what you say youll do?
• If I invest, will I get a good return on my
  investment?
• Will you report back to me, good or bad?
• Will you be grateful?
• Will you give the glory to God?

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Giving Vehicles

• Cash
• Non-Cash
• Autos, boats, planes, RVs, collectibles
• Stock
• Real Estate
• Business Interests
• Estate

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Five Rs of Fundraising
- Pat McGlaughlin

• The Relational Donor Cycle
• Research (who, what, when, where, why)
• Romance (education, motivation, love)
• Request (the marriage of values-theirs yours)
• Recognition (thankssincerely)
• Recruitment (ask them to help you)

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Summary

• Get Involvement / Giving
• Identify others (5-10)
• Peer to Peer Request for support (3-5)
• Timely Follow-up

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BREAK

• Vernon J. Henricks
• vhenricks_at_mccks.edu 785.564.2121

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What is Servant LeadershipRobert Greenleaf
The servant-leader is servant first. It begins
with the natural feeling that one wants to serve,
to serve first. He or she is sharply different
from the person who is leader first, perhaps
because of the need to assuage an unusual power
drive or to acquire material possessions.
Robert Greenleaf
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Servant LeadershipKen Blanchard
"I truly believe that Servant Leadership has
never been more applicable to the world of
leadership than it is today. Not only are people
looking for a deeper purpose and meaning when
they must meet the challenges of today's changing
world they are also looking for principles and
philosophies that actually work. Servant
Leadership is about getting people to a higher
level by leading people at a higher level.
Ken Blanchard
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Fundraising Strategies Session II

• Vernon J. Henricks
• vhenricks_at_mccks.edu 785.564.2121

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Forging an Emotional Bond With Your Best Donor
Prospects
Fundraising is often a cry of need. Asking for
gifts isnt what gains support from substantial
donors. Believing in your cause is what
motivates them. People give because they care
and because they feel their gift will make a
difference. Quorum-Alliance Consultants
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Motivations for Giving
The Center on Philanthropy December 2007

• Meet critical needs
• Giving back to society
• Those with more should help others
• Bring about a desired impact
• Set an example
• Being asked
• Religious beliefs
• Identify with the cause
• Expected in social network
• Leaving a legacy

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Would give more if
The Center on Philanthropy December 2007

• Less spent on administration
• Able to determine impact of gifts
• More financially secure
• Better financial return on investment
• Knew of more organizations
• Able to volunteer skills in nonprofits
• Not already financially committed
• Understood goals of nonprofits
• Name would not be made public
• More information on giving vehicles

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Ways to Engage a Prospect

• Involve the donors family
• Honor a donors lifes work
• Respect the donors values
• Answer the donors questions
• Honor the donors name
• Showcase the donors talents and experiences
• Give a donor financial security
• Have the right person(s) ask

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• Appreciation makes people feel
• more important than
• almost anything you can give them.

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Prospect Cultivation

• Research their ability to give
• Determine their knowledge of the institution
• Learn how involved they are
• Evaluate the strength of their relationships
• Assess how motivated they are to give
• Identify potential conflicts and seek resolution
• Establish ways to engage them in your work
• On visitslearn about
• How they feel about your organization
• Their business and how they made their money
• Their family and how involved they are in
  decisions

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Elements of Cultivation

• Identify the special needs of the organization
• Discuss the problems being addressed
• Describe why your organization is deserving
• Illustrate what will be achieved by this project
• Detail how you hope to accomplish your goals
• Explain what you need (time/money/people)
• Explain how you will evaluate your success

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Success is the sum of small efforts, repeated
day in and day out. --Robert Collier
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Ways to Offend

• Misspell his/her name
• Fail to make past connection
• Fail to be appreciative
• Fail to listen
• Omit the spouse
• Mismatch the project with the donor
• Ask for the wrong amount

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Good Relationship Elements

• Be Preparedplanning is good, but action is
  better
• Be Confidentyou are working for a good cause
• Be Happysee development as a joy, not a task
• Be Passionatebelieve in your cause
• Be Sincereprospects are friends and want to help
• Be GratefulExpress appreciation for past support
• Be Complimentaryrecognize them for their efforts
• Be Carefuluse terms and words selectively
• Be QuietListen twice as much as you talk
• Be EfficientLeave with the next steps planned

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Cultivation Phrases

• I/We need your help/advice
• I/We would be grateful if
• I/We would be remiss if I/we.
• I/We want to give you first right of refusal
• I/We would like your consideration

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Follow Up of the visit

• Record everything immediately after the visit
• Send visit thank you note ASAP
• Communicate results of visit
• Discuss new information received
• Follow up on mutually agreed next steps
• Identify future opportunities with prospect

It is not the prospects responsibility to get
back with you. It is your responsibility to
follow up with the prospect.
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...the only thing that stands between a person
and what they want in life is the will to try it
and the faith to believe it possible!.
--Unknown
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Servant LeadershipStephen Covey
"The deepest part of human nature is that which
urges peopleeach one of usto rise above our
present circumstances and to transcend our
nature. If you can appeal to it, you tap into a
whole new source of human motivation.
Stephen Covey
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Thank You!
Vernon J. Henricks President, The Henricks Group
785.564.2121 Vice President, Manhattan
Christian College vhenricks_at_mccks.edu