Domain 2: Securing the Gift

Question 1

Securing any gift is an ongoing process and includes the creation of:

Answer 1

A development plan, a case for support, and a communications plan.

Question 2

The piece that provides the infrastructure to fundraising is the case for support. The case answers these questions:

Answer 2

Who is the organization?
What community need are they attempting to address?
Why is the organization worthy of support?
Why is this organization the best to solve this societal need?

Question 3

The case is:

Answer 3

bigger than the organization and relates to a cause being served

Question 4

A case for support is:

Answer 4

the rationale underlying fundraising.

Question 5

The essence of fundraising success is:

Answer 5

a fully developed case for support that articulates clearly and boldly the reasons the organization deserves philanthropic gifts.

Question 6

The basis of fundraising is

Answer 6

the organization’s case for support. It is the expression of the cause and all the reasons why prospective donors might want to contribute to its advancement.

Question 7

There is typically one large case for the organization as a whole

Answer 7

from it, smaller individual case statements are developed for various constituencies and programs.

Question 8

The case helps to make it possible to:

Answer 8

match the organization’s needs to the donors needs.

Question 9

The preparation of the case begins with an understanding that non-profit organizations raise money to meet larger community needs.

Answer 9

Unmet social needs lead to the creation of non-profit organizations, and the case for support is built on how well the organization meets those needs.

Question 10

If the organization has a development director on staff:

Answer 10

they should be the catalyst in the preparation and development of the case. Staff begin the preparation, development, and validation of the case!

Question 11

Getting others involved in the development of the case is important to:

Answer 11

Seeking the ideas of key constituents – board members, volunteers, donors, and potential donors – is particularly effective in enlisting volunteer leadership for articulation of the case in fundraising.

Question 12

Every well-developed case for support has three key elements:

Answer 12

Purpose = Not just the fundraising goal. Should include the organization’s aims, purpose, and mission. Presents the case for current programs, and shows how new programs will benefit and enrich people’s lives. The purpose of a case can dramatically show the organization’s impact on its community in a variety of ways, now and in the future.
Content = The content centralizes information about a variety of subjects related to the case. These include: Organization’s needs, Cause, Mission, Goals, Objectives, Strategies and task plans, Governance, Staff competence for the mission, Budget, Financial history, Facilities.
Focus = Typically the case will have a particular focus. It might be one, two, or all three of these: Unrestricted operating support, Restricted gifts for operations, Restricted gifts for special needs – capital, endowment, or other.

Question 13

The development of the case begins with compiling information that provides the background for everything a potential donor might want to know about the organization:

Answer 13

Case resources

Question 14

Case resources document the following aspects of the organization:

Answer 14

-Mission statement (why does the org exist)
-Goals (what does the org aim to do)
-Objectives (more precise than goals and explains how goals will be met)
-Programs and services
-Finances (links budgeting with objectives and program descriptions)
-Governance (often serves as a litmus test for potential contributors)
-Staffing
-Facilities and service delivery
-Planning and evaluation
-History (the heroic saga of the organization)

Question 15

Internal Case:

Answer 15

is a database of information and knowledge

Question 16

External Case:

Answer 16

tells the story to the constituencies and orders and presents the information for communication, public relations, and fundraising.

Question 17

External case statements take the form of:

Answer 17

brochures, foundation (and corporation) proposals, direct mail letters, website development, campaign prospectuses, news releases, newsletters, speeches, and face-to-face solicitations.

Question 18

Case statement definition

Answer 18

a written version of the case for a specific constituency or campaign, derived from the organization’s overall case. It selects and articulates specific points from the overall case

Question 19

The case statement is:

Answer 19

the one definitive piece of the whole campaign.

Question 20

Case statements typically includes:

Answer 20

i. The organization’s services, programs, objectives
ii. How the goals of the fundraising program support the organization, including how funds will be used, why reaching the goal is vital to both society and those served by the organization, and how success of the fundraising program will strengthen the organization.
iii. The ways the organization will remain significantly productive in the future through its own efforts and the generosity of its supporters.
iv. The difference a donor’s support will make to the cause.
v. What the organization must do to improve/change its activities, aims, and value to society.

Question 21

How a case statement is used:

Answer 21

• Obtain feedback and create ownership.
• Recruit volunteer leadership.
• Testing the market
• Forming a basis for case materials & related communications

Question 22

Adapting the Case to Constituent Groups

Answer 22

This includes determining the most critical constituencies (Major donors, community audience, corporations, foundations..)

Question 23

Ensuring a Successful Case Statement:

Answer 23

• Knowing about and/or collecting information about all aspects of the organization.
• Talking to everyone: administrators, staff, trustees, current and potential donors.
• Being aware of the expectations and interests of the target constituency.
• Relinquishing pride of authorship, and…
• Writing, rewriting, rewriting, and rewriting!

Question 24

Evaluating the Case Statement =

Answer 24

Gather reactions from each key constituency/market segment. The goal is to ensure the case statement is as effective as it can be for each constituency.

Question 25

Elements of the Development Process:

Answer 25

• Developing the case for support
• Prospect research
• Cultivation and constituency development
• Solicitation strategies
• Acknowledgement and recognition
• Gifts management
• Volunteers and staff are engaged in the process

Question 26

Development interfaces with ALL aspects of the organization.

Answer 26

• Building ownership in volunteers and staff
• Obtaining information required for development planning
• A complete budget and fundraising goal incorporated into the organizational budget process
• Outcome: a written operational plan that covers the same period as the organization’s plan

Question 27

Effective fund development depends on a number of critical elements

Answer 27

i. an understanding of your various constituencies, their needs, and how your organization meets those needs.
ii. clear institutional direction and ongoing strategic planning.
iii. shared expectations of staff and volunteers.
iv. a governance and management structure that supports the fund development process.

Question 28

The development plan serves as:

Answer 28

an operational guide for the organizations fundraising activities.

Question 29

The organization’s strategic plan is a major source of direction and information for:

Answer 29

the development plan.

Question 30

The development plan includes

Answer 30

i. Statement of purpose.
ii. Strategic/financial development goals.
iii. Strategies for achieving the goals.
iv. Operational policies related to goals.
v. Identified/targeted constituencies.
vi. Analysis of potential by constituency and strategy.
vii. Cultivation strategies.
viii. Solicitation strategies.
ix. Action plan and timetable for each strategy, with income benchmarks.
x. Assignment of responsibilities for strategies and individual solicitations to volunteers, staff, others.
xi. Marketing needs for each strategy.
xii. Budget and funding for each strategy.
xiii. Indicators of success.
xiv. Monitoring of processes/systems.

Question 31

Staff and volunteers must be involved in creating the development plan.

Answer 31

Success of a development program requires joint ownership of the process. This is particularly true with members of the board of directors.

Question 32

To create an effective development plan, each organization must look at a variety of factors and approaches based on its need. Factors that impact choices:

Answer 32

i. Operating income, capital improvement, physical plant, endowment income, and special development program income.
ii. Past history of donor support and opportunities for expansion giving.
iii. How fundraising helps advance the organization’s mission.

Question 33

A well-integrated development program includes:

Answer 33

i. Basic annual income.
ii. Capital funds needed for special programs, buildings, and other physical plant requirements.
iii. Planned gifts to provide a financial cushion for the future.

Question 34

Effective fundraising programs should evolve over time:

Answer 34

i. Establish annual fundraising structured to meet immediate operating needs.
ii. As additional needs develop, organizations may ask donors and others to help meet the organization’s capital needs (organized as restricted gift opportunities or as a separate but coordinated capital campaign).
iii. As relationships solidify further, donors become more interested in giving larger, more permanent gifts; planned giving is added.

Question 35

The organization’s needs will drive which types of giving it will emphasize:

Answer 35

i. Heavy operating costs and few capital requirements, focus in annual and planned giving.
ii. Large capital needs, e.g., hospitals, colleges, etc., focus on capital fundraising.

Question 36

Assess the organization’s readiness for fundraising success by looking at the following factors:

Answer 36

i. Organization’s reputation and credibility.
ii. Urgency of case.
iii. Availability and readiness of volunteers to solicit funds.
iv. A well-researched prospect database establishing the interest of potential donors.
v. Pre-campaign planning that has been thorough and has involved strategic planning, development planning, an internal audit, and a planning/feasibility study.
vi. Use of outside resources to assess readiness.
vii. Operational readiness of the development office.

Question 37

Gift decisions may be:

Answer 37

i. Spontaneous – dropping a coin in the Salvation Army red kettle.
ii. Responsive – making a gift in response to a direct ask from the organization.
iii. Deliberately planned – making a gift of stock the last week of December.

Question 38

Regardless of how the decision is made, donors first ask questions like:

Answer 38

i. Who is asking?
ii. For how much?
iii. Why me?
iv. For what purpose?
v. Why now?

Question 39

Individuals tend to give from three sources:

Answer 39

discretionary or disposable income, their assets, and estates.

Question 40

It is generally accepted among professional fundraisers that…

Answer 40

3 to 5 percent of contributors enrolled in an organization’s donor base have the ability to make major gifts.

Question 41

The Pyramid of Giving (from top to bottom):

Answer 41

i. Planned Giving – wills, bequests
ii. Major Giving (capital, endowment) – personal contact
iii. Special/Major Giving – personal contact, letter, phone call
iv. Repeat Annual Giving – personal contact, letter, phone call
v. First-timer Annual Giving – direct mail, online telethon, special events, media, door-to-door

Question 42

Annual Giving

Answer 42

i. Primary method used to broaden support, upgrade levels, and provide operating support for ongoing programs.
ii. Income for restricted and unrestricted programs, acquire donors, renew donor support annually, cultivate donors to increase giving levels, solicit new donors to broaden support base, identify and involve leadership and other volunteers, identify major gift prospects, build donor loyalty.

Question 43

Major Giving - Capital Campaign

Answer 43

 An intensive, organized fundraising effort to secure philanthropic gifts for specific capital needs, executed within a specific time period.
 Specifically targets buildings, e.g. funds for facilities.

Question 44

Major Giving - Endowment

Answer 44

 A pool of money invested to provide income and revenue for the organization’s operations or for a specific program; typically built by planned gifts
 Maximize benefits for donor and organization; focuses on building permanent funds to support the organization’s work not spent for current operations or capital projects

Question 45

Planned Giving

Answer 45

i. Integration of personal, financial, and estate planning concepts with an individual donor’s plan for lifetime or testamentary giving
ii. For the organization = provides higher-level gifts and increased future stability, increased donor commitment
iii. For the donor = ways to give beyond the use of current assets, often provides significant estate tax benefits

Question 46

Comprehensive Campaign

Answer 46

i. May contain annual, major, and planned, or only capital/endowment campaigns, depending on organizational need
ii. Support for the special needs of the organization: facility construction, renovations or expansion, acquisition of special equipment, strengthening of an endowment, programs and scholarship

Question 47

Why one campaign over another:

Answer 47

i. All have the potential to entice new volunteers and volunteer leaders, as well as confirm the commitments of current volunteers
ii. Annual giving uses a variety of solicitation methods; capital in generally for restricted purposes or endowment development and obtained through personal solicitation
iii. Smaller percentage of the constituent base represents major prospects for capital, endowment, and planned giving, vs. all constituents as prospects for annual giving
iv. Planned giving provides greater opportunity for donor and organization, focuses on longer term and larger gifts from accumulated assets
v. Endowment giving can be immediate and outright or deferred, depending on donor goals
vi. Annual giving is ideal for bringing in new donors and cementing their relationship to the organization; capital, endowment, and planned giving are perfect for upgrading the annual donor’s commitment over time
vii. Benefits of capital campaigns: builds familiarity with the organization and its goals; encourages donors to “think big” – pushing annual giving to new levels; increases organization’s visibility among constituents and the community; enables donor pledges over several years vs. just one in annual giving.

Question 48

Organizations are increasingly in campaign mode at all times…

Answer 48

i.e. planning stages for the next campaign begin immediately at the end of the previous campaign; cultivation of** major donors (10% who gave 90% of funds and those in top tier**) continues in preparation for the next campaign.

Question 49

Once a solid annual giving program is in place, the next step is (often):

Answer 49

the launching of a major gifts/capital campaign

Question 50

Major-gift campaigns provide value to an organization as a whole: it also builds peoples’ experience and confidence:

Answer 50

i. Builds volunteer leadership skills
ii. Hones skills of development staff
iii. Solidifies the board-administration partnership
iv. Unites constituencies in a common cause

Question 51

Major Gift Campaign Success factors – institutional readiness:

Answer 51

i. Reputation and credibility
ii. Urgency of the case
iii. Availability and readiness of the board/volunteer leadership to solicit funds
iv. A solid prospect database, fully researched and with established interest
v. Operational readiness of the office and systems
vi. Extent to which comprehensive, pre-campaign planning has occurred, including:
 Strategic plan for the organization and the development office
 An internal audit
 A planning/feasibility study

Question 52

Major Gift Campaign Success factors – constituent readiness

Answer 52

i. A stable, positive image/reputation
ii. A core of ready, accessible volunteers
iii. An adequate number of prospects capable of making substantial gifts are cultivated and ready
iv. Ongoing awareness/information/cultivation programs are in place
v. A completed external planning/feasibility study to test readiness and raise sights

Question 53

Pre-major gift campaign activities – the internal audit:

Answer 53

i. The entire organization is reviewed during the pre-campaign audit
ii. Organizational planning
iii. Board Leadership
iv. Administration and finance
v. Development operations
vi. Donor base
vii. Volunteer structure and involvement
viii. Public and donor relations

Question 54

A feasibility study tests a cross-section of leadership and major prospective donors to discover the likelihood of campaign success.

Answer 54

 It confirms or suggests changes be made to the campaign plan in areas such as the goals, strategies, campaign structure, staffing and support requirements, etc.
 Study results are reported to the board of directors, which then decides whether and how to proceed.

Question 55

The final pre-campaign activity is preparation of a gift-range table:

Answer 55

 A realistic reflection of the approximate levels of giving and the number of gifts requires at those levels to achieve a stated dollar objective.
 **A campaign is likely to reach its goal if the largest gift equals 10% or more of the goal and it, along with the next nine gifts, total one-third of the goal, **and the next 90 gifts equal one-third of the goal
 If these first two-thirds of the campaign are achieved this way, it is most likely that the final one-third of the goal can be raised from all other gifts

Question 56

Traditional “Rule of Thirds” Gift Table

Answer 56

i. Top 10 gifts account for 1/3 of the total

ii. The next 100 gifts account for another 1/3 of the total

iii. The final 1/3 come from everyone else

Question 57

While the traditional rule of thirds can be made to work, most modern campaigns are using…

Answer 57

major gift models in which far fewer gifts are responsible for much larger percentages of the total.

Question 58

Not uncommon for a lead gift to be 30% of the campaign goal – sometimes even 50%…

Answer 58

and the top 10-15 gifts often account for 60% of the total.

Question 59

A realistic campaign gift table usually results from:

Answer 59

what is learned during a feasibility study.

Question 60

As plans for the major-gifts campaign develop, part of the planning should include development of clear and agreed-upon policies and guidelines for how the campaign will be run. The policies should also cover how the funds received should be processed, counted, and reported. This helps ensure everyone, volunteers and staff, is on the same page.

Answer 60

i. Fundraising strategies
ii. Role of campaign steering committee
iii. Role(s) of other volunteers
iv. Communications plan
v. Campaign budget
vi. Campaign duration
vii. Duration of pledge period (typically 36-60 months)
viii. The procedure for recording pledges
ix. How gifts will be deposited (especially cash)
x. Establishment of rules regarding how gifts will be counted that are not directly a result of the campaign (annual fund, bequest, etc.)
xi. Guidelines for accepting non-cash gifts
xii. Establishment of authority for assignment and transfer of securities
xiii. Guidelines for accepting and crediting planned and other gifts
xiv. Establishment of recognition opportunities and their criteria
xv. The procedure for final campaign wrap-up and audit

Question 61

Phases of a Major-Gifts Campaign

Answer 61

i. Planning
 A statement of preliminary goals and an action plan are established.
ii. Cultivation
 The interest of prospective contributors of the campaign is developed through exposure. These first two phases can take 18-months to several years.
iii. Solicitation
 The phase in which volunteers and staff ask for contributions from individuals, corporations, and foundations.
 Solicitations start at the top and begin within the organization.
 These “gifts of confidence” provide credibility for the campaign and allow major-gift solicitation to begin.
 In a major-gifts campaign, gifts are solicited in sequence beginning with those with the highest giving potential, then moving to the next lowest levels.
 The solicitation phase includes:
* Quiet phase: when gifts from “family” and lead gifts are solicited, with a goal of 100% board participation and about 40-50% of the goal has been achieved.
* Active solicitation phase: a finite timeframe during which volunteers are actively seeking donations
iv. Pledge or fulfillment
 Generally a three- to five-year period planned for payments of pledges.
 May last longer, however, the trend is to shorter pledge periods so as not to confuse donors with the ongoing need for their annual contributions.
v. The Campaign Timetable
 Part of campaign planning is determining the timetable of operations, which is a very specific time-sensitive schedule that includes the four phases noted above.

Question 62

Major-Gifts Campaign Quiet Phase:

Answer 62

When gifts from “family” and lead gifts are solicited, with a goal of 100% board participation and about 40-50% of the goal has been achieved.

Question 63

In a capital campaign program the “special gift” opportunities offered to both large and small donors are commonly known as:

Answer 63

Commemorative gifts

Question 64

Major gifts usually come from:

Answer 64

individual, corporations and/or foundations that have previously given annually and have been significantly involved in the organization in some way.

Question 65

As with any other large gift (capital campaigns, planned giving or endowed giving), obtaining MGs (as part of a campaign or stand-alone gifts) is a process of cultivation and solicitation:

Answer 65

i. Prospect research (focus on donors who may be ready to from annual giving)
ii. Matching donor need(s) with giving opportunities
iii. Strong case/case statement
iv. Personal contact by a peer and a senior staff member
v. Appropriate follow-up
vi. Immediate and appropriate acknowledgement and recognition according to the donor’s needs and values

Question 66

• The organization must be worthy of this level of support. Major donors are focusing increasingly on an organization’s “critical success factors.”:

Answer 66

These include, but are not limited to, organizational strength, committed volunteers, donations from 100% of the board, whether the person requesting funds is a donor, etc.

Question 67

Duration of pledge period

Answer 67

typically 36-60 months/3-5 years

Question 68

Six Steps to a “Model” Solicitation

Answer 68

**There are six steps for a “model” solicitation when visiting a prospect to as for a major gift:
i. Build rapport
ii. State the case for support
iii. Encourage involvement (ask open ended questions, consider asking for advice, etc.)
iv. Summarize benefits/case and close/ask
v. Be quiet
vi. Respond appropriately **

Question 69

Planned Giving

Answer 69

Every donor in your database has the potential to fund a charitable gift annuity or other planned gift.

Question 70

There are (basically) two types of planned gifts:

Answer 70

i. Outright or current – a complete transfer, or realized gift, of cash or stock as part of an estate plan.
ii. **Deferred **– a testamentary giving or life income arrangement to be realized in the future, such as bequests and charitable gift annuities.

Question 71

Bequest: Direction in a will to give an asset or portion thereof to a charity. In can take the form of cash, property, real estate, insurance proceeds, RRSP/RIF proceeds, or securities. There are three types:

Answer 71

 Specific – a specific gift amount, gift of property, or piece of artwork
 Residual – one part of a specific number of equal shares of the residue of the estate after all legacies are paid.
 Contingency – takes effect only if none of the donor’s primary intentions can be met (e.g., when primary beneficiary does not survive the donor).

Question 72

Life insurance/RRSP/RIF

Answer 72

a contract between a donor and an insurance company through which the donor agrees the proceeds will be paid to a charitable organization at the time of the donor’s or insured’s death.

Question 73

Publicly traded securities:

Answer 73

donor gives appreciated marketable securities or stock options to a public charity or foundation with no capital gains tax liability.

Question 74

Charitable gift annuity:

Answer 74

an irrevocable contract between the donor and the charity under which cash or other valuable property is contributed to the charity in exchange for a specific amount paid in stated intervals for life or a set term of years.

Question 75

Charitable remainder trust:

Answer 75

a trust instrument used by donors to transfer legal title of assets to a charitable organization for use at some future time. The income beneficiaries (self and/or spouse) receive income until death, and all the remaining trust assets are distributed to the charity at the termination of the trust (the charity is the capital or residual beneficiary).

Question 76

Gift of residual interests in real property (real estate, art, rare books, collections, etc.):

Answer 76

agreement between a donor and a charity in which the donor gives ownership of real property to the charity yet retains use of the asset during his/her lifetime or for a defined period. The asset passes to the charity at the end of the agreement.

Question 77

Advantages of Planned Giving to the Organization:

Answer 77

i. Establishes a long-term relationship with the donor.
ii. Encourages donor to think about gifts of assets in addition to income.
iii. Often provides future funds to be counted on (endowment, equipment, scholarships).
iv. Enhances opportunities for charitable bequests, particularly in the case of gift annuities.

Question 78

Advantages of Planned Giving to the Donor

Answer 78

i. May provide opportunity to give with income and estate tax deduction.
ii. Some may provide opportunity to enjoy either a fixed or variable income.
iii. Some may provide opportunity to supplement retirement income (e.g., deferred charitable gift annuities and charitable remainder trusts).
iv. If highly appreciated assets are contributed, it may avoid or lessen capital-gains tax liabilities.
v. May offer opportunity for increased income compared to other investments
vi. May allow competent management of assets transferred as gifts.
vii. May allow donor to pass an asset to an heir after an established period of organizational use.

Question 79

Steps for Starting a Planned Giving Program:

Answer 79

i. Board and staff commit to the concept of Planned Giving.
ii. A committee is appointed to study the potential and make recommendations to the board.
iii. The board adopts a plan and approves guidelines.
iv. The board approves a budget for planned giving and recognizes it will be a long time before the investment is returned.
v. Training programs are established and carried out for the board and staff; continuing education and information resources are provided.
vi. Prospects are identified, beginning with the board and current major donors.
vii. A planned gifts subcommittee (and other appropriate subcommittees) is formed within the development committee.
viii. A marketing plan is prepared, including timing for production of supporting materials and schedule of special events, such as estate planning seminars.
ix. A mail-cultivation program is started.

Question 80

An annual appeal letter asks a donor to sponsor a child, even though the organization does not tie a donation to a specific child. This is an example of:

Answer 80

a direct mail appeal that appeals to a donor’s need for demonstrating impact. Connect appeal to donor’s needs!

Question 81

An underlying and very important aspect of securing gifts of any type is the understanding of prospects’ motivations and needs.

Answer 81

It’s no different with annual gifts, even though annual giving campaigns involve the largest number of prospects who are often treated as an unknown.

Question 82

AG Appeals can be customized based on:

Answer 82

demographic profiles and identified areas of interest.

Question 83

(Annual Giving) Using several methods of solicitation in tandem is most effective.

Answer 83

By coordinating several methods, individuals can be targeted at different levels of interest and involvement to encourage commitment and enthusiasm.

Question 84

(AG) Personal solicitation is still the most effective

Answer 84

16 times more effective than mail solicitation!

Question 85

Personal solicitation is most effective when:

Answer 85

a prospect’s peer conducts it.

Question 86

In planning for an annual fund, the arithmetic of fundraising concept directs the fundraising practitioner to:

Answer 86

determine the quality and number of gifts that are required to achieve the organization’s goal.

Question 87

(Arithmetic of fundraising) Decisions about the plan’s strategies should be delayed until the following determinations have been made:

Answer 87

 What quality of gifts is required, and how many are needed in each category.
 What should be the ratio of prospects to donors?
 Does the donor base have the number of prospects to support the ratio?
 Is it realistic to expect that these prospects can be identified?
 If these questions cannot be answered clearly and factually, then is the goal of the annual fund realistic?

Question 88

The arithmetic concept as it pertains to the annual fund means that:

Answer 88

that a large amount of the money to be raised will come from a small number of contributors who are encouraged to provide what will necessarily be larger gifts.

Question 89

(Arithmetic of Fundraising - AG) The Formula:

Answer 89

 The top 10 percent of the gifts received during the annual fund have the potential to produce 60 percent of the money required to meet the goal.
 The next 20 percent of gifts will account for 15 to 25 percent of the money required.
 The remaining 70 percent of gifts will cover the remaining 15 to 25 percent of funds required.

Question 90

Charitable Lead Trust

Answer 90

Established by a donor transferring assets to a trust that provides income to a nonprofit org for an individual’s life or for a period of years or combo, at the end of that peroid, the trust assets revert either to the donor (grantor) or to someone the donor designates (non-grantor)

Question 91

When evaluating a mailing to existing donors, the most important calculation is:

Answer 91

return on investment!

Question 92

Telephone solicitation (volunteer phonathon or paid callers)

Answer 92

Selectively used to acquire, renew and/or upgrade donors; most effective when used in combination with other solicitation methods.

Question 93

Mail solicitation/direct mail

Answer 93

Most impersonal and least efficient for new donors; can be effective for renewals.

Question 94

Giving clubs

Answer 94

Best used to upgrade donors at the top of the low end of annual giving; provides incentive recognition to move donors to higher levels; each level provides customized recognition.

Question 95

Electronic solicitation – “ePhilanthropy”

Answer 95

Similar solicitor experience as telephone or direct mail; best integrated with other approaches; website can be used for reference/more info; social networking media.

Question 96

EFT sustained monthly giving – a payment technique.

Answer 96

Automatic transfer of funds from donor’s bank account to organization’s; an inexpensive and efficient way to collect donations.

Question 97

Group solicitations: special events

Answer 97

Purpose: to raise public awareness, helps cultivate prospects and donors; requires specific and detailed planning; not a major fundraising initiative.

Question 98

A wisely developed plan will provide for multiple mail solicitations at carefully selected times during the course of the entire year.

Answer 98

Some of these will be donor acquisition mailings. Others will involve upgrading mailings and appeals for special-purpose gifts.

Question 99

Every well-developed case for support has three key elements:

Answer 99

Purpose, Content, Focus

Question 100

Seeking Grant Support from Organization

Answer 100

• All starts with personal relationships – make a personal connection with a program officer, board member, or employee.
• Send a letter of inquiry, containing an outline or summary of the project, whether requested or not.
• If the response is positive, write a grant proposal.

Question 101

Elements of a Grant Proposal:

Answer 101

i. A proposal summary
ii. A problem (needs) statement
iii. Project goals/objectives
iv. Methodology
v. Evaluation
vi. Budget
vii. Include any supporting materials requested by grantor
viii. Do not submit materials not requested by the grantor; adds unnecessary work

Question 102

The Roles and Responsibilities of a Volunteer Solicitor:

Answer 102

1. Speak authoritatively as a representative of the organization and participant in the campaign.
2. Articulate, in face-to-face dialogue, the case for support in an informal, enthusiastic, and compelling way.
3. Respond confidently to all basic questions, and seek answers to more complex inquiries.
4. Suggest possible benefits to the donor (recognition, tax, problem solving, community development, etc.) as a result of giving.
5. Believe in the campaign effort and annual campaign goal and convey that.
6. Be an individual who has made and/or effected a meaningful contribution to the organization.

Question 103

Suggestions for a Successful Solicitation:

Answer 103

1. Establish the appointment in advance.
2. Be patient.
3. Be persistent.
4. Be courageous – ask for the gift!
5. Be proud of your role.
6. Remember that you’re not asking for yourself.

Question 104

Preliminary Steps for Personal Solicitation:

Answer 104

1. Keep your sights high – familiarize yourself with the organization and its programs.
2. Convince yourself first.
3. Solicit those prospects you can motivate.
4. Learn about your prospective donors.
5. Plan your approach.
6. Rehearse solicitations.
7. Committee calls or team solicitations may be appropriate – rehearse as a group.
8. Use the campaign literature effectively.
9. Schedule appointments by phone – do not mention money, but if asked “Is this a solicitation?” respond with something like “I (we) want you to be involved in this venture with us.”
10. Solicit face-to-face.
11. Seek the maximum gift.

Question 105

Asking for Major Gifts:

Answer 105

ALWAYS solicit in person! Describe your project/organization and the way it helps to solve a problem; match the prospect’s needs to those of your cause; and ask for the prospect’s support.

Question 106

Asking for Major Gifts:

Answer 106

1. Pick the right prospect.
2. Solicit in person.
3. Convince yourself first.
4. Know your cause.
5. Know your job.
6. Know your prospect.
7. At the meeting:
   i. Explain your role as a volunteer/staff – talk about why you believe in the organization and mention your own gift in context of your commitment to the cause.
   ii. Talk about community issues and how the organization can help respond. Share organization’s programs.
   iii. Remind the prospect how their gift will help respond to the community problem.
   iv. Ask for a specific amount. Aim as high as you can – stretch the prospect.
   v. Get a commitment before ending the meeting.
8. Ask for a specific amount – and secure a promise.
9. What if…contingency plans!
   i. Don’t just accept a gift that is too small. If appropriate, try to negotiate.
   ii. Don’t just accept a “no”. Keep selling, if appropriate, or withdraw saying that “perhaps now is not a good time.” And ask to return in a month and meet again.
   iii. If prospect agrees to consider the appeal but wants to take some time to decide, make arrangements to follow up personally and secure the final decision.
   iv. Job is to get the answer – not just ask!
10. After the meeting – Report in!

Question 107

The following elements should be included in a good case statement:

Answer 107

• A description of the organization’s mission and the key community need(s) that it addresses
• List of the organization’s objectives.
• The proposed strategies for reaching those objectives and a timeline.
• Organizational assets (programs, facilities), staff, and budget needs.
• The target audience that will benefit.
• An explanation of the impact of supporting the mission and the implications if the community need is not met
• A review of the strengths and subject matter expertise of the organization.

Question 108

Additional case statement items may include:

Answer 108

• Service area analysis including demographics, key industries, resources and service gaps, and organizational comparisons both locally and nationally.
• Strategic plan (if one has been done).
• An organizational chart and staff bios.
• Recent and historical giving history.
• Current and long-range needs.
• Other relevant organizational history.

Question 109

Major Gift Fundraising Guidelines:

Answer 109

*** On average, the Major Gift Officer (MGO) should manage a portfolio of no more than 150 prospects.
* Time should be divided between cultivation, solicitation, and stewardship.
* On average, MGOs are expected to make 30 major gift solicitations per year resulting in 15 to 20 gifts.
* On average, MGOs are expected to qualify 15 to 25 new prospects each year to replace those who have been removed from the prospect list. **

Question 110

Key Elements of a Successful Capital Campaign:

Answer 110

• Feasibility study.
• Commitment of time & support from all key stakeholders.
• A strategic plan.
• A clearly articulated case for support.
• A donor base that is willing and able to commit to substantial lead gifts before the public phase of the campaign.
• Competent staff and/or the help of outside counsel
• An adequate budget for campaign expenses.

Question 111

Donor Motivations:

Answer 111

• Awareness of the need and a desire to help the recipients.
• Trust in the organization and its ability to use the gift effectively and responsibly.
• A sense of duty.
• Tax benefits.
• Routine giving is most impacted by a personal connection to the cause or organization (friend or family member, personally impacted).
• The top motivator for unexpected giving is a personal connection or crisis
• The number two motivator for online giving: social media influencers, celebrities, and politicians.

Question 112

Barriers to Giving:

Answer 112

• A poorly defined and/or articulated case for support.
• Trust in the organization.
• Poor stewardship.
• Lack of communication with donors.
• Lack of demonstrated impact.

Question 113

Types of Gifts:

Answer 113

• Cash from the donor’s own accounts or accounts in which the donor has an advisory role (Donor-Advised Funds, Qualified Charitable Distributions, family foundation grants, etc.)
• In-Kind
• Securities (stocks & bonds).
• Trusts.
• Real Estate: Commercial or residential.
• Assets (financial: retirement accounts, life insurance policies, etc.
• Assets (tangible): jewelry, art, cars, etc.

Question 114

Elements of a Feasibility Study:

Answer 114

The feasibility study is a tool and a process to help an organization determine its institutional readiness to
engage in a capital campaign:
* The board and leadership must agree to proceed
* The organization should engage a third-party to conduct the study.
* Background research will be conducted on the organization, it’s donor and volunteer base, and the community
* Interviews are conducted by the third-party consultant.
* Findings are reviewed, and next steps are recommended. *

Question 115

Questions a Feasibility Study Should Answer for the Organization:

Answer 115

• Is the capital campaign the correct strategy?
• Is the timing of the campaign optimal?
• Does the organization have the infrastructure to conduct a campaign?
• Who will lead the campaign? (both from a staff and volunteer standpoint)
• What is the constituent base’s capacity and willingness to give?
• Is the constituent base ready and willing to support the campaign beyond financial gifts?

Question 116

Common Fundraising Vehicles:

Answer 116

• Direct marketing
• Special events.
• Grant proposal writing
• Corporate sponsorships
• Cause-related marketing
• Major gifts.
• Gift planning
• Memorials.
• Membership and alumni program.
• Gaming & lottery programs.
• Workforce/payroll/federated campaigns.
• Peer-to-peer.

Question 117

Measuring Tools to Evaluate the Success/Effectiveness of Fundraising:

Answer 117

• ROl (Return on Investment)
• Growth Rate (the growth in number of donors and money raised).
• Retention Rate (the number of donors who give subsequent gifts).
• Average Gift (online and offline).
• Average funds raised by volunteers (board members, peer-to-peer, etc.)
• Lifetime value of a donor.
• Cost per dollar raised.

Question 118

An item or items of value given with a solicitation or promised as a result of a gift:

Answer 118

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