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Fundraising and Resource Development

General Information
Fundraising Options
Guidelines for Effective Grant Writing
Do's and Don'ts of Solicitation
14 Ways to increase your planned giving
10 Tips from The Zen of Fundraising by Ken Burnett
Fundraising and Resource Development Resources and Links

General Information

A fundraising plan contains the specific strategies your organization will use to acquire funds for ongoing operations and programs. It establishes the overall dollar amount needed, lists the sources of income and details the methods you will use to reach your goals. The basis for a fundraising plan is a budget and timeline, which shows how much money you need, when you need it, and what the probable sources of income are.

Preparation lays the groundwork for successful fundraising. Investigate the potential sources of income for your organization including membership drives, grants, business donations, special events and earned income (i.e. ticket sales, T-shirts, etc.). Determine if your organization knows how, and has the human and financial resources to pursue each option of fundraising. Accurately gauging your capacity to raise funds will help you set realistic goals and avoid frustration and failure.

One indicator for successful fundraising is an involved, supportive board of directors. Their willingness to donate time and money to the organization shows other individuals, businesses and grant makers that the leadership believes in your organization and programs. It is difficult to convince others to give if you are unwilling to donate yourself.

Money does not come from strangers. People give to projects and people they know. Donations from individuals make up the largest percentage of support for nonprofits. This area of fundraising can be successful if pursued thoughtfully. People usually do not donate the first time that they are asked. The more contracts that an individual has with your organization, the greater the possibility of a donation. In designing membership campaigns, this is an important factor to keep in mind. People who have participated in your programs are more likely to donate than those who have not. The chances for donation increases with each contact, so the person who has attended several programs and receives a personal note from a board member they know may send a donation.
All types of fundraising are most successful if careful thought is given in advance.

Evaluating your organization's fundraising capacity helps the board to see the impact of fundraising on your programs and assists them in developing a suitable, well thought out fundraising plan.

Creative ways of thinking about Corporate/Business Support: It is a good practice for the arts council to act as the arts welcome wagon with the business community. Be diligent in extending personal invitations to events acquainting the new business leaders with your contribution to the quality of life. Understand that a high level of employee involvement is a foot in the corporate door. Work hard to recruit employees from the major corporations as volunteers for your events. Actively seek corporate participation on your Board of Directors.

View a partnership like a marriage. A marriage works when each partner understands the needs of the other and is willing to work toward satisfying those needs. The arts council needs financial and human resources to accomplish its goals. Corporations are looking for quality impact, high visibility and community goodwill. Working together to accomplish both of these goals results in success.

From Arts Council How-To, by Diane Peterson, The Alliance of Ohio Community Arts Agencies, 1996.

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Fundraising Options

Evaluating Internal Resources:

  • Do we know how?
  • Do staff have the needed time?
  • Do volunteers have needed time?
  • Do we have necessary space & equipment?
  • Do we have the prospects we need?
  • How much can we raise?
  • How much will it cost?
  • Should we do it?

1. Board/Key Volunteer Donations

2. Individual Donations:

a. Personal solicitations for large donations
b. Membership/Friends of Campaign:

i. Personal solicitations
ii. Personalized letters
iii. Telephone follow-up
iv. Mail campaign

3. Fundraising benefits/Special events

4. Personal solicitations

a. Local businesses
b. Local foundations

5. Cultivation and grant writing:

a. City/county governments
b. State government
c. National Endowment for the Arts

6. Cultivation and proposal writing:

a. Corporations
b. State/regional foundations

7. Other: whatever other stories you want to include...

Adapted from: The North Group, Inc.

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Guidelines for Effective Grant Writing
Gloria Woodlock, Special Initiatives, Planning and Research Officer, California Arts Council

The Ten Commandments

  1. Always know the funding source; ask questions about priorities for funding.

  2. Remember to make a compelling case for funding based on a documented need.

  3. Do not use jargon. Make it simple.

  4. Always check and recheck your figures.

  5. Ask for a reasonable amount for the project; do not "pad'' the budget or ask for less than seems reasonable.

  6. Don't try to figure out unclear guidelines or applications by yourself---call the grant program administrator to ask questions (it is their job to answer them).

  7. No question is too small or too dumb. The little things often trip up applicants
    because panelists are looking for projects NOT to fund and any flaw could be cause to dismiss the proposal.

  8. Write your proposal as if you were explaining your case to a judge---that is what grant review panelists are.

  9. Use only relevant documentation. More is not better; brief but complete is best.

  10. Find out about your successes and failures; ask the reasons for rejection and success so that you can continue to hone your skills and understand your weaknesses.

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The Elements of a Grant Proposal
The Narrative:
The narrative is the core of the proposal. It should be clear and specific and address the main points you wish to address. The nature of the proposed project, the need upon which it is based, the intended audience and the type of program, including its artistic approach and evidence of quality and particularly the expected results are all crucial to the case.

It is to your advantage to keep within the space provided for the narrative. Elaborate on the statements made in the narrative, if necessary, through the documentation that is included in the rest of the proposal. ln some cases. it may be appropriate to include statistics, evaluation results and other documentation in an addendum if it will help illustrate the wisdom of the proposal, just be careful to cite the addendum carefully in parentheses in the narrative.

Be judicious in what you include; panelists are always experiencing overload and may be annoyed at an overly long, officious, or boring presentation.

The narrative is really the best place and perhaps the only place for you to capture the attention and the imagination of the funder---so make it clear how your proposal is unique from the many others they may receive. Try to pull your proposal above the crowded field of applicants through demonstrating a unique impact it may have.

The Budget:
The project budget should be clear and specific. Include job titles and categories and rate of pay. Be sure to consult guidelines for specifics on payments which often are proscribed by specific funding sources (e.g., CAC will only pay for 50% of any salary line item).

Ask for funding for things of specific interest to the funder -- e.g arts councils like funding artists fees, other funders will not fund general operating support. Always ask for funding for things that are not readily funded by other sources.

Budgets are generally divided into salary and operating expense categories. Do not use indirect costs without explaining them---it is best not to use them at all, but simply include in the specific amounts sufficient funding to cover these costs. Any item that appears vague is an easy hit for those wishing to cut down the request. Do not leave yourself open to having the panel determine your priorities...make those very clear to begin with.

Always include a full program budget somewhere in the proposal even when you are only asking for a portion of the costs. Panelists want to see that you have planned the project well.

A distinction is usually made between administrative, artistic and outside professional salaries. Some expenses, such as artistic or programmatic ones may be more attractive to funders than others such as administrative ones. However, if you make a good case for whatever it is you need, this will outweigh the tendency to shy away from even the most mundane requests on the part of the panel. The argument is everything; the budget should be supportive of it in every way.

Check and recheck your figures.

The organizational budget is an important assessment tool for funders. Much as a doctor takes a patient's vital signs when diagnosing, the funder will look at the budget as an indicator of a great deal about the organization. It illustrates how the organization works, how it plans for its financial future, whether the community and other funders support its services through earned and contributed income, and whether the management is using its resources wisely. The organizational budget indicates the organizations past, present and future viability.

The budget is more than just a compendium of figures. It should be completed very carefully and thoughtfully, checked and rechecked to make sure it makes sense. A sloppy budget indicates sloppy management.

Qualifications:
The proposal should give adequate documentation of the qualifications of the organization's staff and board to complete the project. It should also show the organization's qualifications to do the project based on an adequate track record of accomplishments or clearly explain why past performance is not the predictor of future success.

Panelists want to see that the organization is qualified to carry out its mission and that the mission fits with the proposed project.

Explain all noticeable increases or decreases in funding, changes in staffing and direction, and try to anticipate any questions that might possibly be raised regarding the organization before they can be asked. Pretend to be a panelist who does not know your organization and include just enough (but not too much) documentation to leave the funder feeling confident that the funding has been allocated wisely by awarding it to your project. Remember there are far more requests than money to fund them.

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Everything you really wanted to know about fundraising but were afraid to ask

  • Presentation of the information makes a big and often lasting impression. Proof, edit, check and then do it again. Only the most persuasive of proposals can overcome a poor presentation.
  • Neatness may not make the difference, but sloppiness might.
  • Label everything with your organization's name in case items get mixed up.
  • Be considerate of panelists and staff who may be reading the proposal. Do not
    reduce type, have typos, less than generous margins, and other annoying blemishes. Do not interfere with a pleasant read.
  • Since panelists are looking for things not to fund, don't give them an excuse.
  • The most successful proposals are the ones that help the fundee to accomplish
    something significant for the funder; however, never, never, never develop a proposal just on that basis alone. If your goals are not met by the funder, find another funder.
  • Funders can tell when a proposal is not sincere or accomplishable and you will not do yourself a favor in the long run by running against your best interests, no matter how much you may need the money now.
  • Do not waste your precious time, or that of the funder.
  • Remember, you are one of hundreds, perhaps thousands of requests. Always search for what is distinctive about your project or request and capitalize on it. Try to make your proposal memorable in a very competitive field.
  • Never ever give up. Three times is said to be the charm.

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Dos and Don'ts of Solicitation

To be an effective solicitor takes tact, patience, knowledge, some easily acquired skills, and commitment. Knowing a few simple DOs and DON'Ts makes the job of a solicitor simpler and results in more success.

The following materials and suggestions are designed to help you become an effective solicitor. If you follow these simple ideas you will get a lot more out of your face-to-face solicitations . . . and so will the campaign.

  • DO SOLICIT YOUR OWN GIFT FIRST. Make your own commitment before you solicit others and be as sacrificial in your own giving as you expect your prospect to be. DON'T ask somebody else to make a gift to the campaign before you have made your own. You are your own most important prospect.
  • DO SEE YOUR PROSPECT FACE-TO-FACE. Use the telephone only to make appointments. Explain why you are calling and arrange for a convenient and appropriate time and place to meet. DON`T try to raise funds on the telephone. It's all too easy for the prospect to cut you off.
  • DO SET UP A REALISTIC CALENDAR. Your calendar should make it possible for you to handle assignment within the required timeline set by The Arts Council. You are the best judge of your commitments to your business, family and social life.
  • DO KNOW YOUR PROSPECT. Go to your appointment with information about your prospect well in hand. Know their giving history and community priorities. The Arts Council has provided information about each account in the call packets including giving history, number of employees and type of business. DON'T neglect learning the facts about your prospects. A solicitor can get into some pretty embarrassing situations that show he is not familiar with the prospect's background. You would not do this in business, and you should not do this in your "philanthropic business."
  • DO KNOW THE WHOLE STORY. Acquaint yourself with the latest facts on the campaign, the Case for Support, the accomplishments of the organization, etc. This information is available in the manual "Everything You Always Wanted to Know about the Arts Council." DON'T go to a solicitation without knowing the facts about this year's needs and the answers to familiar questions that come up repeatedly about the campaign. Don't take for granted that it is the same old story as in years past. This year's story, "Give them the Gift of Art," focuses on art and education. Refer to the campaign brochure for more details.
  • DO KEEP UP-TO-DATE ON THE CAMPAIGN. Keep up with what's happening m your own campaign. Read any information that is sent to you. Have information on campaign progress at your fingertips or know where you can get it. If you have to find information, assure your prospect that you will send it to him.
  • DO DRAW ON YOUR OWN EXPERIENCE. Whenever possible, relate a personal story that relates to the mission of the arts or The Arts Council. Your solicitation will be more believable and more emotional if you can link it with something that has happened to you or your family and with which your prospect can identify.
  • DON'T rely on a long recital of dry facts and abstract arguments that bore the person you're trying to motivate to commitment and responsibility.
  • DO RESPECT YOUR PROSPECT. Conduct each interview with tact and sensitivity. Treat your prospect like the intelligent, thoughtful generous person he or she is.
  • DON'T lessen your chances by patronizing your host with remarks that reflect on his understanding of the needs, past generosity, or sincerity of feelings toward giving.
  • DO LEARN TO LISTEN. Give the individual you're visiting the opportunity to discuss the situation with you, to tell personal experiences and express a point of view. Draw the other person into the conversation. This will help you build rapport and potentially provide new information.
  • DON'T lose your prospect by doing all the talking, never letting the other person get a word in edgewise. A prospect may resent a hard sell, fast-talk approach to a discussion dealing with so important a decision as his philanthropic contribution.
  • DO ASK FOR A SPECIFIC AMOUNT OF MONEY. The Arts Council has predetermined the gift amount. This is indicated on the call sheets. The amount of money is based on several factors, including giving history, benchmarking comparable companies in similar industries and researching level of support to other not-for-profits.
  • DO ASK FOR A COMMITMENT. Make your listener feel that giving is not charity, but a commitment to our quality of life and that of our community.
  • DON'T apologize when you ask for a commitment. When you ask for a pledge, you're talking about the most important needs affecting our community. You don't have to apologize. It is important that you 1) State the specified request and 2) Get their reaction.
  • DO RECOGNIZE WHEN YOUR PROSPECT IS CONVINCED. Close your solicitation when it is clear that your prospect is ready to make his gift.
  • DON'T press too hard and keep trying to convince your listener long after you have made your case. Relax. As a good solicitor, know at what point you have convinced your prospect of what is expected and of his importance in supporting this year's appeal.
  • DO COME AWAY WITH A COMMITMENT. Whenever possible, come away with a definite commitment. Sometimes it's better to settle for a smaller amount on the spot than to give the prospect a chance to think it over. As days pass, the impact of what you have said may fade in his mind. Some prospects will fill out the pledge card on the spot and give it back to you. Some prospects will indicate the need to take the request before a committee or to a higher level. Some will need time to think it over. A11 these responses are valid. It is important, however, that you get a verbal commitment or understanding regarding whether they will or will not contribute and why. Also, we need a verbal commitment for a decision date. Three weeks is the standard time frame for a decision. Indicate when The Arts Council can expect a response on the call sheet.
  • DON'T allow your prospect - if it is at all possible - to avoid making some commitment. Instinct should tell you when the prospect means it or when he is stalling by saying, "Let me think about it . . . I'll be in touch with you."

14 Ways to Increase your Planned Giving by Joan Zieger, Madison, retired senior staff for Wisconsin Public Television

  1. Increase renewal letters to 4 "hits".

  2. Add one "lapsed" letter sent six months after the last renewal letter.

  3. Mail major gift renewals between November 1 and December 10 of each year.

  4. Mail additional gift requests between November 1 and December 10 of each year.

  5. Ask for a pledge, not a cash gift.

  6. Get a challenge grant from a current donor.

  7. Phone lapsed donors to ask them to renew, and ask them why they haven't renewed -- discover problems with the organization or their financial status.

  8. Create a major gift club of $1,000+.

  9. Ask $250 donors to join the major gift club.

  10. Ask your board members to give leadership gifts of $1,000+.

  11. Add planning giving sentence to all response cards: "please send information on how to include [your organization] in my will."

  12. Accept contributions via credit card.

  13. Receive and review monthly computer donor reports, to determine your next moves (i.e., is the renewal rate dropping, are major gifts not coming in, who to solicit).

  14. Renew all grants for the second, third, fourth, etc., years; mark deadlines on caldnars; give four-month lead time to phone, confirm availability and re-submit grant application.

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