Diversifying Your Fundraising Program CAPITAL VENTURE Linda Lysakowski, ACFRE

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Diversifying Your Fundraising Program
CAPITAL VENTURELinda Lysakowski, ACFRE
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Where the Money Is

• The Willie Sutton Theory

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The Psychology of Philanthropy

• Why People Give
• Why They Dont Give
• Why They Stop Giving

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The Reason People GiveGallup Poll Survey in
the late 1990s
1. Belief in Mission 2. Community
Responsibility 3. Fiscal Stability 4.
Institutions Respect in Community 5. Volunteer
Leadership 6. Board Member 7. Institutions
Respect in Region 8. History of Being
Involved 9. Influence of Solicitor 10. Specific
Program 24. Taxes
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Donor Pyramid
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The Annual Fund

• Grants
• Special Events
• Direct Mail
• Telephone Solicitation
• Personal Solicitation

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Fundraising MethodsCOST PER DOLLAR RAISED
Face to Face Solicitation 0.15 Special Events
( of gross) 0.50 Membership Associations 0.25
Direct Mail Renewal 0.22 Direct Mail
Acquisition 1.15 Achieving Excellence in Fund
Raising by Henry A. Rosso and Associates
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LADDER OF SOLICITATION EFFECTIVENESS
1. Person to Person - Team of 2 calling on 1 2.
Person to Person - 1 calling on 1 3. Telephone -
after a letter - personal handwritten letter 4.
Personal letter without the phone call -
handwritten 5. Telephone then send a follow-up
letter 6. Phone without letter for follow-up 7.
Special Event Benefit - selling tickets 8.
Direct Mail - Impersonal letter mass produced 9.
Door to Door (March of dimes, etc.) 10.
Impersonal telephone (citywide canvas) etc. 11.
Media Advertising Designs for Fund-Raising by
Harold J. Seymour - 1966 1988
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Moving Donors up the Donor Pyramid
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Special Gifts

• Major Gifts
• Capital Campaigns
• Planned Giving

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Major Gifts

• What is a Major Gift
• Building Your Case
• Identifying, Cultivating and Soliciting Major
  Donors
• Building Relationships

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Case for Support

• Mission/Vision
• History
• Plans
• Compelling Reason to Give

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A Case Definition

• Finally, it should be said that the Case for
  fundraising -- taking into account what has been
  said about people, causes, and giving -- should
  aim high, provide perspective, arouse a sense of
  history and continuity, convey a feeling of
  importance, relevance, and urgency, and have
  whatever stuff is needed to warm the heart and
  stir the mind.
• Source Ted B. Bayley, Fund Raisers Guide to
  Successful Campaigns

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The Strategic Process ofMajor Gift Solicitation
1. Discover Qualify 2. Plan 3. Involve 4.
Ask 5. Negotiate Close 6. Thank Plan
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Developing a Constituency
1. The Organizations Universe 2. People with
Similar Interests 3. Former Participants -
Former Board Members - Former Donors 4.
Others - Volunteers - Employees - General
Donors - Members - Clients 5. Major Donors -
Board - Management
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Identifying and Attracting Likely Donors
One of the truisms of fundraising is that the
best prospective donor is a current donor. The
most likely donors are identified by three
characteristics. Linkage - is contact -
geographical, emotional, or professional
Ability - a gauge of the gift sources financial
capacity to give a gift Interest - in the
nonprofit and its work is essential
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The L-A-I Principle

• LINKAGE
• Who knows whom makes it possible to arrange an
  appointment to discuss the potential gift
• ABILITY
• Through research, it can be determined if a
  particular prospect has the capability to make a
  major gift.
• INTEREST
• Interest dictates the size of the gift.

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Board Involvement

• Commitment to Fundraising
• 100 Giving
• Asking Others to Give

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The Three Gs of Boards

• Give, Get, Get Off
• The New Three Gs
• Gather
• Get Ready
• Grow

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Recruiting a Fundraising Board

• The Recruitment Process
• Get Rid of Your Nominating Committee

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The Dreaded F Word

• Yes, you can build a fundraising Board!
• Make it fun
• Make it mandatory
• Make it easy
• Make it challenging

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Thank You!

• Linda Lysakowski, ACFRE
• www.cvfundraising.com