The Fundraising Reader

Cover
Endorsement
Half Title
Title Page
Copyright Page
Table of Contents
Editors’ Introduction: Thinking About Fundraising
I: The Need for a Fundraising Reader
Fundraising Is Essential Yet Largely Invisible
There Are Limited Formal Ways for Fundraisers to Acquire Knowledge
Fundraising Is Often Misunderstood and Viewed Negatively
II: What this Reader Covers
What We Mean By Fundraising
Aims of this Reader
Our Audience
Our Motivation for Creating this Reader
Sources and Further Resources
Note On the International Scope of this Reader
Note On Embracing Debate and Dissent
Note On Responsiveness to the Needs and Concerns of Students and Practitioners
Section Summaries
Section Summaries
Choosing and Editing the Selections
III: Notes On Creating the Reader
Acknowledgements
Note
Section 1 What Is Fundraising?
Editors’ Introduction
Overview
1.1 What Is Fundraising?
1.2 Historical Perspectives On Fundraising
1.3 Misunderstandings of Fundraising
Discussion Questions
1.1 What Is Fundraising?
What Is Fundraising and Why Does It Matter?
Why Charities Fundraise
The Essential Yet Invisible Role of Fundraisers
Research On the Efficacy of Fundraising
The Need to Shift Research Attention to Askers
A Philosophy of Fundraising
Organizations and Their Reasons for Existing
To Govern Or Not to Govern
Institutionalizing Fundraising
Gift Making as Voluntary Exchange
Substituting Pride for Apology
Fundraising as a Servant to Philanthropy
What Is Fundraising? A USA Perspective
Is Professional Fundraising a Job Or a Vocation?
1.2 Historical Perspectives On Fundraising
Two Thousand Years of Disreputable History
Fundraising in Late Antiquity
Fundraising in the Middle Ages
Fundraising After the Reformation
Modern Fundraising
The Deep Roots of Fundraising
1.3 Misunderstandings of Fundraising
I Am Not a Beggar
Fundraising Is Not Sales
Fundraising Is Communication Not Marketing
Why Fundraising Is Fun
In Defense of Fundraising
Section 2 Foundations Of Fundraising Success
Editors’ Introduction
Overview
1.1 Some Fundraising Basics
2.2 Engaging the Whole Organisation in Fundraising
2.3 Developing a Constituency of Support
2.4 Vital Ingredients for Success
Discussion Questions
2.1 Some Fundraising Basics
People Give to People
Introducing Programmes, Methods, and Process
Annual Giving
Major Gifts
Planned Giving
Corporate and Foundation Support
Matching Programs to Needs
Solicitation Methods
The Fundraising Pyramid
The Fundraising Process
The Laws of Raising Money
The Nine Cardinal Principles of Fundraising
Cardinal Principle I: Institutional Or Organizational Objectives Must Be Established First
Cardinal Principle II: Development Objectives Must Be Established to Meet Institutional Goals
Cardinal Principle III: the Kinds of Support Needed Determine the Kinds of Fund-Raising Programs
Cardinal Principle IV: the Institution Must Start With Natural Prospects
Cardinal Principle V: the Case for the Program Must reflect the Importance of the Institution
Cardinal Principle VI: Involvement Is the Key to Leadership and Support
Cardinal Principle VII: Prospect Research Must Be Thorough and Realistic
Cardinal Principle VIII: Cultivation Is the Key to Successful Solicitation
Cardinal Principle IX: Solicitation Is Successful Only If Cardinal Principles I Through VIII Have Been Followed
First Steps in Fundraising – a Russian Perspective
Irina Menshenina, 2020
First Tip: Find a Foothold in the Chaos
Second Tip: Gather People Who Have Ever Helped Your Organization in Some Way
Third Tip: If You Have No Previous Experience in Fundraising, Organize a Trial, Or Pilot, Project
2.2 Engaging the Whole Organisation in Fundraising
The Evolution of Fundraising Practice
Appeal Phase: Stage One — The Passionate Appeal
Appeal Phase: Stage Two — We Need More Money
Fundraising Phase: Stage Three — We Need Some Help
Fundraising Phase: Stage Four — Leave It to Us
Stage 5: Let’s All Work On this Together
Movement From Stage to Stage
Implications for Fundraising Practitioners
Involving Your Board Members in Fund Development
Role of the Board
Role of the Individual Board Member
Board Member Role in Philanthropy and Fund Development
In Conclusion
The Fundraising Cycle: the Shortest Book On Fundraising, Ever
The Fundraising Cycle
4. Install Efficient Systems for Records, Monitoring and Future Consolidation.
Targets
Fundraisers
2.3 Developing a Constituency of Support
Developing a Constituency: Where the Fundraising Begins
Constituents Are People, People Are Prospects
The Concept of Ever-Widening Circles
Characteristics of a Constituency
Building a Constituency
Conclusion
Grassroots Fundraising: You Already Know All the People You Need to Know to Raise All the Money You Want to Raise
Why Aren’t People Being Asked to Give?
Reversing the Trend
Starting With Who You Know
Expanding the Fundraising Committee
Fundraising in Your Own Back Yard: Inviting Clients to Be Donors
Five Things You Can Do to Raise Money From Your Clients
1. Don’t Assume That People Won’t Or Can’t Donate.
2. Call It What You Will … It’s Still Fundraising!
3. Educate Everyone in the Organization About How Much It Costs to Do the Work.
4. Be Respectful Of, and Value, Each Person’s Giving Capacity.
5. Make Fundraising a Part of Everyone’s Job.
Rediscovering and Climbing the Donor Pyramid
2.4 Vital Ingredients for Success
Relationship Fundraising
A Total Philosophy
What Relationship Fundraising Can Do for You
Welcome as a Letter From a Friend
The Nine Keys to Building a Relationship
Articulating a Case for Support
Defining “Case for Support” and “Case Statement”
Preparing the Case for Support
Key Information Components of a Case for Support
Mission Statement
Planning and Evaluation
Goals
Objectives
Governance
Staffing
Finances
Programs and Services
Service Delivery
History
Case Statements
Tailored to the Audience and Supporting the Mission
Conclusion
Cultivating Diversity in Fundraising
Section 3 Understanding Fundraising Practice
Editors’ Introduction
Overview
3.1 Fundraising Planning, Strategy, and Campaigns
3.2 Working With Major Gifts
3.3 Working With Many Gifts
3.4 Working With Corporate Donors and Partners
Discussion Questions
3.1 Fundraising Planning, Strategy and Campaigns
Creating and Implementing a Fundraising Strategy
The Five Strategies for Fundraising Success
Getting Acquainted With the Five Strategies
Going for Growth
Enhancing Involvement
Increasing Visibility
Fine-tuning for Efficiency
Ensuring Stability
The Fundraising Audit
The Fundraising Audit
Macro Factors
Analysis of Competitors
Potential Collaborators
Market Factors
The Internal Environment
Conducting an Audit in a Small Charity
The SWOT Analysis
Understanding Fundraising Campaigns
Evolving Purpose
Underlying Motivations
Campaign Phases
Effectiveness
CASE Campaign Standards
Replacing the Campaign
3.2 Working With Major Gifts
The “Stop and Think” Major Gift
The “Stop and Think” Gift
Getting Something in Return
Get Real
Don’t Talk – Listen
Don’t Worry About the Annual Ask
Dispelling the Myths About Major Donor Fundraising
Five Common Weaknesses
1. Organisations Really Want Money for Existing Work; Major Donors Want to Fund New Work
2. Organisations Do Not Really Want Donors to Have the Involvement They’d Like
3. Organisations Do Not Ask Prospects Closest to Them to Make Stretch Gifts. So These Prospects Do Not Become True Leaders, Able to Leverage Further Gifts
4. There Are Few Really Experienced Major Donor Fundraisers and Even Fewer Really Experienced Organisations
5. Too Often Boards and Senior Teams Think Major Donor Fundraising Is a Quick Fix and Then Lose Faith
Myth 1: Major Donor Fundraising Is for the Biggest and Best-Known Charities
Myth 2: Major Donor Fundraising Is Only as Good as Your Prospect Research
Myth 3: Your Supporter Base Is the Right Place to Look for Prospects
Myth 4: Asking Is the Job of the Volunteer
Myth 5: It Takes a Long Time to Get a Major Gift
Myth 6: Successful Capital Campaigns Are About Securing the Right Lead Gift Early and Working Top Down
Myth 7: Capital Campaigns Have a Sequential Private and Public Phase
Myth 8: You Only Have One Chance to Get the Major Gift
Myth 9: ‘The Rich Are Different From You and Me, Yes They Have More Money’ – F Scott Fitzgerald
Legacy Fundraising: Let’s Not Talk of Death
Deceased Bequest Donor Stories
Living Bequest Donor Stories
Results
Discussion
Implications for Professional Practice
What Is a Philanthropic Foundation?
Hallmarks of a Great Grant Application
Hallmark 1: Understanding the Particular Grant-Making Trust and Tailoring Applications
Hallmark 2: A Strong Idea
Hallmark 3: Competent People
Hallmark 4: Clear and Succinct Language
Hallmark 5: Finances in Order
3.3 Working With Many Gifts
Relationship Marketing and Branding Analyzed
Unprofitable Donors
Branding of Nonprofit Organisations
Nonprofit Brand Personality and Image
Community Fundraising, a Jewel in the Crown
What Is Community Fundraising?
Why Invest in Community Fundraising?
Types of Community Fundraising
1. Mass Participation Appeals
2. DIY Activities
3. Fundraising Groups
Developing a Community Fundraising Strategy
Objectives and Targets
Volunteer-led Versus Staff-Led Fundraising
Types of Volunteer
Event Organisers
Event Volunteers
Office Volunteers
Professional Volunteers
Specialist Volunteers
Celebrities and Influencers
Deciding What Volunteers Can Do
Stewardship of Volunteers
Understanding the Pros and Cons of Special Events
What Are Special Events?
Reviewing Your Existing Strategy
Key Questions to Consider
Identifying the Primary Goal Or Aspiration
Setting Specific Objectives and Targets
Some Tools for Strategic Analysis
PEST Analysis
Boston Matrix
Cash Cows
Rising Stars
Problem Children
Dogs
The Product Life-Cycle
How to Make Your Writing Interesting
How to Interest People: a Checklist
Secret to Response: the Offer Is King
Don’t Bury Your Offer
What’s in an Offer?
Heifer’s Four-Footed Offers: Making the Intangible Real
Anecdotes Bring Your Success Vividly to Life
The Champion Effect in Peer-To-Peer Fundraising
3.4 Working With Corporate Donors and Partners
What, Why and How Do Companies Give?
Why Do Corporations Give?
1. Corporate Productivity Or Neoclassical Model
2. Ethical Or Altruistic Model
3. Political Model
4. Stakeholder Model
Forms of Business Support
Corporate Partnerships: No Cash Cow
From Philanthropic Support to Strategic Partnerships
Focus On Value, Not Cash
Put the Customer First
Adopt an Organisational Approach
Corporate Partnerships as a Platform
Seven Tips for Securing Corporate Sponsorship
Introduction
1. Dedicate Personnel
2. Price Yourself Right
3. Create a Killer Deck
4. Fill the Pipeline
5. Be Flexible
6. Have a Conversation
7. Keep Your Sponsors Happy
Section 4 Fundraising Theory And Ethics
Editors’ Introduction
Overview
4.1 Theories in Fundraising
4.2 Ethics in Fundraising
4.3 Donor, Fundraiser, and Beneficiary Rights
Discussion Questions
4.1 Theories in Fundraising
Theory in Fundraising
Theoretical Approaches
The Big Picture: Systems Theory, Boundary Spanning, and Resource Dependence
Social Exchanges: Gift Theory and Reciprocity
Positive Identification: the Identification Theory of Care and Social Identity Theory
Conclusion
Testing Fundraising Practices and Techniques
Understanding Individual Donors
Resources for Giving
How Socio-Demographic Characteristics Relate to Giving
The Complex Dynamics of Individual Giving Behavior
The Opportunity to Give
Values
Costs and Benefits
Efficacy
Implications for Practice: Assessing Donor Motivations
Are Overhead Costs a Good Guide for Charitable Giving?
Do Donors Care About Overhead Costs?
Should Donors Care About Overhead Costs?
What Effects Does the Focus On Overhead Costs Have?
Potential Alternatives to Overhead Cost Ratios
Limitations and Gaps
Summary and Policy Advice
Conflicts and Strategies of Eliciting Emotions for Fundraisers
Emotions and the Practice of Fundraisers
Findings
Ethics and Effectiveness
Conflict at the Level of the Voluntary Sector
Conflict at the Level of the Voluntary Organisation
Conflict at the Level of the Individual Fundraiser
Conclusions
A Critical Fundraising Perspective: Understanding the Beneficiary Experience
Who Benefits
Who Decides?
The Experience of Beneficiaries
An Alternative Approach to Fundraising
4.2 Ethics in Fundraising
Rights-Balancing Fundraising Ethics
Ethical Theory 101
Trustism
Donor Centrism
Service of Philanthropy
Fundraising as an Ethical Act
Fundraisers Can Serve as Moral Trainers
Fundamental Relationship Between Fundraising and Moral Development
Charitable Giving and the Maxim of Altruism
Fundraisers Can Bring Great Good to Great Numbers of People
Fundraisers Can Redistribute Power
Fundraisers Can Enable Humans to Feel Responsible for One Another
Fundraisers Can Break Down Our Natural Selfishness
The Color of Ethics
1 Organizational Mission
2 Relationships
3 Integrity
Using the Ethical Decision-Making Chart
Decision Making in Ethics
Everyday Application of Values
Decision-making Process
A Fundraiser’s Guide to Ethical Decision-Making
Codes of Ethics
Decision-making Models
Conclusion
Tainted Money and Tainted Donors
4.3 Donor, Fundraiser, and Beneficiary Rights
A Donor Bill of Rights
I. To Be Informed of the Organization’s Mission, of the Way the Organization Intends to Use Donated Resources, and of Its Capacity to Use Donations Effectively for Their Intended Purposes.
II. To Be Informed of the Identity of Those Serving On the Organization’s Governing Board, and to Expect the Board to Exercise Prudent Judgement in Its Stewardship Responsibilities.
III. To Have Access to the Organization’s Most Recent Financial Statements.
IV. To Be Assured Their Gifts Will Be Used for the Purposes for Which They Are Given.
V. To Receive Appropriate Acknowledgment and Recognition.
VI. To Be Assured That Information About Their Donation Is Handled With Respect and With Confidentiality to the Extent Provided By Law.
VII. To Expect That All Relationships With Individuals Representing Organizations of Interest to the Donor Will Be Professional in Nature.
VIII. To Be Informed Whether Those Seeking Donations Are Volunteers, Employees of the Organization Or Hired Solicitors [fundraising Consultants].
IX. To Have the Opportunity for Their Names to Be Deleted From Mailing Lists That an Organization May Intend to Share.
X. To Feel Free to Ask Questions When Making a Donation and to Receive Prompt, Truthful and Forthright Answers.
Conclusion
The Fundraiser Bill of Rights
I. Fundraisers Have the Right to a Decision-Making Role in Determining If a Donation Should Be Declined If the Gift Has Conditions That Contradict the Organization’s Mission And/or the Clients the Organization Serves.
II. Fundraisers Have a Right to a Respectful, Equitable and Transparent Professional Relationship With the Organization They Serve and With the Donors of the Organization.
III. Fundraisers Have a Right to Be Included in the Continuous Audit of an Organization’s Policies and Practices to Ensure Equity and Protection.
IV. Fundraisers Have a Right to Develop a “Response” Plan That the Institution Will Support.
V. Fundraisers Have the Right to Stop Working With a Donor Based On the Donor’s Behavior Toward Their Gender, Sexual Orientation, Race, Ability Or Any Identity Based Cause for Discrimination.
Moving Forward in Shifting the Fundraising Rights Narrative
Ethical Fundraising and Beneficiary Rights
A Foundation of Trust
Professional Ethics
Ethical Behavior
Applying Ethics
Ethics and Social Justice
Conclusion
Section 5 Being A Fundraiser
Editors’ Introduction
Overview
5.1 Who Raises Funds for a Living?
5.2 What Do Fundraisers Do?
5.3 The Ideal Fundraiser
5.4 The Challenges of Being a Fundraiser
Discussion Questions
5.1 Who Raises Funds for a Living?
Why More People Should Choose a Career in Fundraising
Why Fundraising Is Cool
Becoming a Fundraiser
Join the Front Lines
Why Is Fundraising Seen as Women’s Work?
Looking Through a Gender Lens at Fundraisers’ Daily Work
Looking Through a Gender Lens at Fundraising Management
Looking Through a Gender Lens at For-Profit “Professionalization”
Are Fundraisers Philanthropic?
Researching Fundraisers
Fundraisers’ Charitable Behavior
Giving Before Asking
5.2 What Do Fundraisers Do?
Fundraising as Emotional Labour and Gratitude Work
The Three ‘Fs’: a New Framework to Explain What Fundraisers Do
Fundraising as a Form of Emotional Labour
Fundraising as Gratitude Work
Getting to ‘Yes’ and Dealing With ‘No’
1. Introduction of Solicitation Meeting
2. Dialogue During Solicitation Meeting
3. Description of the Needs to Be Met and Donor Benefits
4. Conclusion of Meeting: Requesting the Gift
Defusing Objections
Living For, Or Off, Philanthropy?
5.3 The Ideal Fundraiser
What Are the Best Fundraisers Like?
What Fund Raisers See as Their Best
Personal Characteristics
Skills
Professional Knowledge
What Makes an Ideal Fundraiser?
A Major Donor’s View On Good Communication for All Donors
5.4 The Challenges of Being a Fundraiser
Fundraising’s Identity Crisis
Fundraisers’ Experiences of Sexual Harassment
Sexual Harassment, Gender, and Power
Findings
1. The Sexual Nature of Fundraising
2. Donors Wielding Power
3. Employer Pressure Or Complicity
4. An Impossible Situation With No Way Out
Conclusion
My Love for Philanthropy as a Black Fundraiser
Finding New Fundraising Ideas
Internal Sources of New Fundraising Ideas
External Sources of New Fundraising Ideas
External Sources
Neglected Fundraisers in the Charitable Triad
Section 6 Trends And Debates About Making Fundraising Better
Editors’ Introduction
Overview
6.1 Moving to a Mission-Aligned Fundraising Culture
6.2 Donor-Centric Or Community-Centric Fundraising?
6.3 Continuity and Change in Fundraising Approaches
6.4 The Impact of Science and Technology
6.5 Trends and Predictions
Discussion Questions
6.1 Moving to a Mission-Aligned Fundraising Culture
Culture Eats Strategy for Breakfast
We Must Invest in Fundraising to Make It Inclusive
Unlocking My Authentic Voice
Answers On Grant Proposals If Nonprofits Were Brutally Honest With Funders
6.2 Donor-Centric Or Community-Centric Fundraising?
The Donor Is the Hero of the Story
We Have a Story Problem
The Wrong Story
The Wrong Story in Metrics
The Right Story
Plot Means Change
The Secret to Donor Retention: Finish the Story
Finish the Story: Experimental Evidence
The Secret to Major Gift Success: Finish the Story
Conclusion
How Donor-Centrism Perpetuates Inequity
6.3 Continuity and Change in Fundraising Approaches
Direct Mail: Dead, Or More Alive Than Ever?
Modern Grantmaking for Grant Seekers
What’s the Connection Between a Funder’s Service Quality and Discrimination?
OK, So What Does a Modern Grantmaking Customer Experience Look Like?
Donor Advised Funds: an Important New Player in the Fundraising Sector
Grantmaking
Opening a DAF Account
Making Grant Recommendations
Fundraising Approaches for DAF Donors
Cultivation
Solicitation
Acknowledgement and Stewardship
Critiques of DAFs
Speed of Grantmaking
Transparency
Trust and Conflicts of Interest
Conclusion
6.4 The Impact of Science and Technology
Using Behaviour Science to Nudge Donors: Does It Work and Is It Ethical?
The Ethics of Using Behavioral Science in Fundraising
How to RAISE More Money
Make It Relevant
Make It Appealing
Offer a Gift to Receive a Gift
Create a Sense of Achievement
Increase Perceived Value
Make It Intuitive
Create Mental Reference Points
Make It Social
Create Shared Social Identities
Use Contextually Relevant Messages
Make It Easy
Put Important Information Upfront
Repeat Your Request
Conclusion
What Is the Potential of Crowdfunding?
Key Characteristics
Project-based, Specific and Transparent
Social Information
Developments in Crowdfunding Worldwide
Philanthropic Crowdfunding Deserves More (Academic) Attention
How Artificial Intelligence Can Help Unlock Human Generosity
What Is Artificial Intelligence?
Why Artificial Intelligence Will Be a Disruptive Technology for Giving
Using YouTube for Disaster Fundraising Appeals
Volunteering in the Post-Humanitarian World
Grassroots Appeals On YouTube
The Emotional Engagement
Agency of the Viewer
Authenticity and Trust-Building
Viewer-comments On the Amateur Fundraising Videos
Conclusion
6.5 Trends and Predictions
Seven Trends to watch
Trend 1: There Is a Continuing Growth of Great Wealth and Some of It Is Being Diverted to Philanthropy
Trend 2: Nonprofit Innovations, in Fundraising and Elsewhere, Are No Longer Coming Just From the United States Or Europe
Trend 3: Indigenous NGOs/NPOs Continue to Grow in Number Throughout the World, But There Are Some Leviathans Emerging
Trend 4: There Is Considerable Debate Worldwide About the Role of Philanthropy and the Role of the State
Trend 5: Fundraising Is Becoming More Professional and Professionalized
Trend 6: Everyone Agrees That New and Social Technologies Are Important, But They Disagree On How
Trend 7: Philanthropy Thrives Best When There Are Codified Civil Society Structures and Regulations for Nonprofit Agencies
Surviving the Next Financial Crisis
What Will Fundraising Look Like in 2045?
Demographic Shifts: Impacts On Local Services and Volunteers
Technological Change: Global Reach and Local Efficiencies
Resources: Funding From Government and Corporates
Resources: Support From Volunteers
Future Scenarios for the Charity Sector in 2045
Government-funded Elite
Corporate Cooperation
Home Grown
Crowd-sourced
Discussion and Conclusions
Sources and Copyright Information
Index