To all future BCUMC fundraisers,
Below is some WWW info. that I thought useful to work towards a successful fundraising campaign especially if we try to do it ourselves. I have included the WWW addresses after the headings if anyone would like to follow up. Again, please let me know of the interest out there in assisting with this effort.
Doug Pratte
Capital campaign fundraising for a nonprofit organization is a major project but should not be an overwhelming process if you take the right steps along the way.
While the board of directors may have approved a major capital fundraising campaign, is it based on need or has a feasibility study been completed? A feasibility study would help determine if the amount of funds can be raised while a planning study would assume the amount of funds can be raised and instead determine how to proceed. Often, a capital campaign fundraising study will determine both the feasibility and the process of raising funds.
A capital campaign study involves a combination of personal interviews, mailed or online surveys, and an assessment of previous and current fundraising activity for your organization and in the community. Interviews would be conducted with nonprofit organization leadership, constituents, previous donors, potential donors and community leaders. Each interview would last approximately one hour. A "case" for the capital campaign (the reason funds are needed) would be presented to respondents along with a variety of financial information and initial project plans in order to establish a general knowledge of the nonprofit organization's position and intention.
If a determination is made to proceed with a capital campaign, study results would provide names of suggested capital campaign leadership, what amounts need to be raised from various groups (nonprofit leadership, constituents, community, vendors, corporations, foundations and affiliates, etc.), the timing of a capital campaign and how funds would be raised. It is possible that a period of increased communications and marketing could be recommended for the nonprofit and for the project as a precursor to a campaign. It is also likely that before launching a capital campaign, a prospect research service would be recommended to screen donor, prospect, and constituent lists for clues that can lead to more accurate assessments of individual giving potential.
As leadership is established, gifts are requested. Before anyone should be working in a volunteer capacity for a capital campaign, each must make some type of financial commitment. The reason is that it is easy to then tell a prospect (someone who you will be asking for a financial gift) "Having made my own gift to the capital campaign, I am comfortable asking for yours." It can be very awkward to not have made a gift to the capital campaign and it need not be one of the largest. Everyone must give according to their means and commitment.
Major gift fundraising is the first step in raising the bulk of funds during a capital campaign. In a campaign for many organizations, major gifts can make-up 70% to 80% of funds raised. For a church capital campaign, major gifts may only raise 50% or less due to the large number of likely donors.
Major gifts are solicited directly and personally, but it is also possible to raise funds through small gatherings or "receptions" at the homes of prominent people associated with the nonprofit. It is vital that each prospect is asked for an amount, given a time-period in which to respond and is pursued graciously until a decision is made. Even if that decision is "no" and not "yes" to a gift, it is the "maybe" that can paralyze a capital campaign because it consumes time and effort that is better spent on pursuing new prospects. Getting a decision is critical.
After major gifts are completed for the capital campaign, general gifts can be pursued through various means including direct mail campaigns, phone solicitation and a variety of smaller fundraising projects. Always start with likely donors - those who have given before - and work your way down toward least likely donors - those who have never given at all. The cost-effectiveness of a capital campaign decreases dramatically after known donors are solicited in full.
A capital campaign can be completed in as little as 3 to 6 months at a church or can take several years at a university, medical center or other large nonprofit. Typically a year or two is average to complete the solicitation while payments on pledges can take 3 to 5 years on average.
http://nonprofit.about.com/library/bltenrules.htm
These are just some things to consider.
Outlined here are frequently asked questions about major gift fundraising. These questions can be applied to any direct solicitation of funds. The questions are also listed in chronological order as fundraising action steps for each prospect. What you put into major gift or direct solicitation efforts will translate directly into funds raised. Most people can attain a level of comfort asking for money and this type of solicitation is fundraising in its most effective form.
1. How Do I Identify Major Gift Prospects?
The first step in major gift solicitation for your nonprofit organization is to identify major gift prospects, that is, those individuals, businesses, corporations and foundations capable of making gifts of $25,000, $50,000, $100,000 and above. Some organizations use prospect research vendors to scan an existing donor base and identify wealth markers. These services are only tools that provide additional information - some very good information and some very susceptible to error. Be careful of "modeled" data that provides a best guess and not hard facts. There is a place for modeled data but it is not reliable on its own. The best way to get good information on prospects is to run your list of names in front of people with knowledge of local business, banking, and investing. While confidentiality is critical, many bankers, lawyers and business persons will be able to provide clues to the ability of the people they recognize. Often those who serve on the boards of other nonprofit organizations or have worked on previous fundraising campaigns will also gain knowledge in those roles that will help them to provide a guess at the ability of a prospect to give in your nonprofit.
2. How Do I Identify the Proper Gift Level for Each Prospect?
The second step in major gift fundraising for your organization is to establish the proper gift level for each prospect. In doubtful cases, it is far better to "overshoot" than to "undershoot." In this way, a cushion is provided if the prospect should find the initial request too high. If you don't know enough about the prospect to establish a fair estimate of a gift level, don't ask until you do. It is important to research what gifts a prospect has made to other organizations. While there may not be a connection to the work that your nonprofit does, people who have a history of giving are the most likely to give again. This is one of the most important facts to remember in fundraising. Rating major gift prospects includes matching a prospect's interests with the project you are trying to fund, assessing their wealth, reviewing their history of giving to your nonprofit or to others and how likely they will be influenced by the people who will be making the major gift solicitation.
3. How Do I Pinpoint the Major Gift Key Element of Attraction?
The third step in major gift fundraising for your organization is to pinpoint the Key Element of Attraction, that is, the reason for the prospect to make a sizable gift. It may take a little research to find this element, but it is essential that it be found and proposed. Will the prospect give:
4. How Do I Prepare a Major Gift Proposal?
The fourth step in major gift fundraising for your nonprofit organization is to prepare an individual proposal for the prospect. Prepare the individual proposal for a major gift in as unique a way as possible. The prospect must feel you have made an effort to match the merits of the project with their interests.
5. Who Should Make the Major Gift Visit?
The fifth step in major gift fundraising for your nonprofit organization is to select the right people to visit the prospect. To make this selection, ask questions including the following:
6. How Should I Schedule a Major Gift Visit?
The sixth step in major gift fundraising for your nonprofit organization is to set the major gift appointment. Call prospects for an appointment, in their home or perhaps take them to breakfast or lunch. Don't mail the proposal before seeing the prospect. If the proposal is mailed first, the prospect tends to review the proposal and delay the appointment. Having face-to-face contact to present the case is the best approach. If the appointment is set for more than a week ahead, a short note confirming the scheduled visit should be sent.
7. How Do I Ask for a Major?
The seventh step in major gift fundraising for your nonprofit organization is to ask for the gift. Ask, ask, ask for a major gift. Show the prospect prepared materials. Don't apologize for the request or water down the approach for fear of embarrassing the prospect. Make the request and let the individual react to it. It is that simple. To survive as a fundraiser, you must understand that rejection is not personal and you should never assume rejection will happen. Always believe the gift will be made and your confidence and conviction will show in your eyes, words and body language. The prospect will recognize your effort.
8. How Do I Enhance a Successful Major Gift Visit?
The eighth step in major gift fundraising for your nonprofit organization is to enhance a successful major gift visit. If the prospect does agree to make a gift, thank him/her for their generosity. Also ask them to recommend the names of one or two people who may be willing or at least able to make major gifts. If it seems appropriate, and you will know by the conversation, encourage the prospect to be present for a visit with someone they recommend, or, at least, to assist in setting up the appointment. A letter acknowledging the gift and, if no previous direction has been given, suggesting or confirming a schedule of payments for that gift should be sent.
9. What Do I Do if the Prospect Delays a Decision?
The ninth step in major gift fundraising for your nonprofit organization is to keep the prospect "hot" even if they delay a decision. If the prospect wants to delay the decision on a major gift, suggest a date, usually a few days to a week ahead, by which you would like him/her to give an answer. Create a "sense of urgency" that the project needs leadership, and it's needed now. Suggest this date at the end of the meeting. As before, send a note of thanks for the first visit and confirm the date and time of the next visit. Persistence is essential. A prospect must be sold on the value of their gift to the public good through your charitable work.
10. What Do I Do if the Prospect Says No?
The tenth step in major gift fundraising for your nonprofit organization is what to do if the prospect says no to your request. Before leaving the initial visit be certain to graciously reiterate your best pitch. If you feel as though the prospect is struggling with the amount but seems like they are very interested, you can put the ball in their court simply by asking "is there a level at which you would be comfortable in making a gift?" and then let them respond with an amount. If you had trouble scheduling the initial appointment and are concerned that a second meeting would probably be difficult to get, then try to close the deal at whatever level you can. If the prospect is still unwilling to commit but interested in the project, then try to set a date to meet again. Immediately send a letter thanking him/her for taking the time to meet and for considering a gift. Follow-up with the prospect as needed. Again, persistence is essential to success and through the conversations you have with a prospect you will sense when it is time to let the prospect go.