Category: Finance

I received an email the other day, from a fellow who identified himself as someone with a sales and marketing background whose company was recently sold. He indicated that he had been approached about taking a development position at a local educational institution, and asked if there is a primer for the development/fundraising arena.

Since I didn’t know him, his knowledge base or his abilities, I had to respond to his request generically.

I indicated that would be unfair to any nonprofit organization (especially one that may not know what “development” is all about) if anyone new to the field pursues/takes any position in development other than at entry level.

For some reason(s), many people seem to think that fundraising and development are something that anyone can do. Most people have no idea what’s involved. All they see are the candy sales, special events or fundraisers, and they think, “Anyone can do that!”

Development, beyond entry level, is not a field you can or should jump into without sufficient training/experience.

And there are already too many nonprofits that have development officers that don’t know the difference between “fundraising” and “development.” (See: Development Is Not A Synonym For Fundraising)

And, yes, some of the experience and skills from marketing and sales (and other fields) are transferable, but the processes are not the same.

There is no such thing as a primer for “development,” just as there’s no primer for “marketing.” There is a definite body of knowledge required to be effective as a development officer … and the ability to apply that knowledge effectively.

Having said that, there are lots of books/courses out there that can get you started … can help you begin to develop the mind-set that is necessary to be an optimally effective development officer.

Check with your local associations of development professionals, your local libraries and www.cfre.org.

And, at the risk of sounding like I’m tooting my own horn, I suggest that you read through the postings on my blog — from the first post (March 2010) — that’d be a good beginning☺

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Have a comment or a question about starting or expanding your basic fundraising program, your major gifts fundraising program or a capital campaign? Email me at AskHank@Major-Capital-Giving.com With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll likely be able to answer your questions.

Keeping in mind that only about 5% of all non-governmental giving to nonprofits comes from corporations, you’ll want to use your time and resources cost-effectively. That means not trying to get funding from every corporation that comes to mind. So, first, make a (wish) list of all those corporations, and then gather the material you need to begin your research.

Some Corporate Annual Reports list the amount(s) they’ve given to nonprofit organizations, and often list those NPOs. Check to see if they give to organizations that do what you do. Look to see if there’s a statement of policy as to the types/locations of NPOs they support. Some corps give only to NPOs that their employees support – check that out. Go to your public library or a branch of the foundation library and check the reports of corporate giving.

Check to see if the corporation has an office/department/division of charitable giving … or whatever they may call it. Call them, ask for a copy of the corporation’s giving guidelines. Talk with a corporate giving officer, if they have such, and (come right out and) ask what you have to do to get the corp to add you to their list of nonprofits they support. FYI, corporate giving officers are there to work with you to see if there’s a match – and sometimes work with you to create a match — between what you can do for them and what they can do for you.

Make a list of the officers and directors of the corporations and circulate that list to your board members, volunteers and major donors to see if anyone you know has a personal connection with a corporate board member or officer who can help you get corporate money.

That means that you must cultivate – build a relationship with – those corporate officers and directors … the same as you would with a prospective major donor.

See my recent three-part series on Asking for the Major Gift — the links to the three articles are at the right, under “Recent Blog Posts.”

Most corporations have been asked before. Don’t be bashful.

Sometimes the ask can be as simple as a conversation with the right person, and sometimes as formal as a grant proposal to a foundation. You’ll find out which when you do your research.

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Have a comment or a question about starting or expanding your fundraising program, your corporate solicitation program, major gifts fundraising program or a capital campaign? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll be happy to answer your question.

In considering the creation of a corporate solicitation program (a CSP), the first questions I’d ask of a nonprofit is whether they realize that only five-percent of all “charitable” giving to nonprofits comes from corporations, and (considering “return-on-investment”) how much of their time, energy and assets do they want to dedicate to this effort?

Whether the NPO does or does not deal with that basic concept, the major issue in creating a CSP is evaluating whether the NPO can do it successfully.

The planning process begins with the questions: How do corporations view your NPO? Do they see a history of good service to the community and good fiscal management? Do they see a history of other corporations supporting your NPO and getting the “quid pro quo” that they want? How do they know they’ll get what they want if they support you? Do you have a mission/program/service that dovetails with a corporation’s mission and/or product/service line?

Corporate fundraising is about the needs of the corporation; and a corporation’s needs are pretty much about their bottom line – they have stockholders they must satisfy.

If supporting an NPO gives them good visibility and good credibility, that would likely result in increased sales of their products/services. A corporation might give to be a good member of the community, or just to appear to be a good member of the community. But a corporation would certainly not give, if giving would hurt their bottom line.

Corporate fundraising is also about the needs of the corporate officers and board members – what will they (personally) get out of having their corporation support you!! That becomes more of an issue of individual cultivation – getting one or more of those people to see how supporting you will benefit them, and getting them, therefore, to become your (?) advocate within the corporation.

So, the first step in the process is determining if a CSP can/would work for your NPO. Once you’ve done the study to determine that, you’ll have a better idea of the kind of help you might need to implement/expand your CSP.

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Have a comment or a question about starting or expanding your fundraising program, your corporate solicitation program, major gifts fundraising program or a capital campaign? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll be happy to answer your question.

A thread in a listserve in which I participate addressed the question(s) of Creating-and-Implementing and Finding-and-Compensating a Consultant to help with a Corporation Solicitation Programs.

Interestingly, the latter issue stimulated most of the responses/comments, with little attention being paid to the former.

So, I’ll address the “more popular” issue first – compensating the “consultant” … and you’ll soon see why I use quotation marks around the term.

In my 30+ years as a fundraising consultant, I’ve seen corporate fundraising done by staff and/or volunteers, with a consultant advising/teaching/guiding; and, I’ve seen a “consultant” doing the fundraising from the corporations on behalf of the NPO. In both cases, it always created a conflict of interest if the consultant was to be compensated on a commission/percentage basis.

In the first circumstance, the relationship is between the NPO and the corporation. The consultant may make the initial contact with the corp, but the discussions are between the NPO family and the corporate people. In this case, the consultant actually consults. S/he is paid for her/his time/effort/expertise, with no consideration as to how much money the NPO may or may not raise.

In the second scenario, the “consultant” does little or no consulting. The relationships are between the “consultant” and the corporations. The “consultant’s” role is to “show” the corporation how their support of the NPO will benefit that corporation. Again, the “consultant” should be compensated on the basis of the time/effort/expertise that goes into making “it” happen, not on a percentage/commission basis.

Many corporations (especially those who are frequently asked to support NPOs) are aware of the “rule” prohibiting commission/percentage compensation for those raising money for a non-profit organization. Many of those corporations agree with and accept that concept. Some don’t!! Some don’t care!! The question is whether you want to risk appearing ignorant of “accepted practice” and/or seeming not to care??

(Conflict-of-Interest issues tend to become public information, and have hurt many nonprofits and their ability to raise money. It is, therefore, with good reason, that all of the major associations of nonprofit organizations and those of charitable-fundraising professionals accept and endorse this “rule.”)
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Have a comment or a question about starting or expanding your basic fundraising program, a corporate giving program, your major gifts fundraising program or a capital campaign? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll be happy to answer your question.

There is a simple, but not simplistic, description of what major gift fundraising is all about: It’s having the right person, ask the right person, for the right amount, at the right time, under the right circumstances.

The two right people are the cultivator/solicitor and the prospective donor. They’ve developed a common interest, a relationship with and/or a feeling for one or more of the NPO’s programs. They’ve talked about the history of the organization, how effective it’s been, all the people whose lives have been changed because of that NPO, and what the NPO’s plans are for providing more service and/or serving more people. They are definitely the two right people !!

The right amount is not just a figure determined by the Development Committee, but is the dollar amount the prospective donor knows will accomplish what s/he wants to see accomplished. [Whether it’s feeding hungry children or getting his/her name on the side of a building, it’s the donor’s need that’s being satisfied.]

The right time is when both the solicitor and the donor know it’s the right time. It’s when they’ve had the conversations (possibly over many, many months), when they know each other well enough to know it’s time. When they both know that the donor is ready to say, “Yes.” That’s the right time.

The right circumstances depend on the two people. It can be in the office, at the home of either person, over a meal, with or without spouses, on the golf course or in a taxi. With all the time that these two right people have spent together, they’ll know….

There’s no script – it’s not needed. They know each other well enough to know when, where and how.

As I’ve said, many times before, “Major Gifts fundraising is about the needs of the donor;” and, learning about those needs is the first step toward planning the Ask.

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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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Have you seen The Fundraising Series of ebooks ??
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If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

Raising money from wealthy people is not the same as asking buddies at work to kick in a few bucks or selling cookies. The size of the gifts expected in those cases is rather small and not a lot of cultivation goes into the process.

People who are major gifts prospects have (more than likely) been Asked before. They know what the process entails and they are expecting to be asked. If they didn’t want to be part of the process, they would likely have made that clear at some point.

So, we come back to the question of how to ask for the gift.

Let me first give an example of phrasing that SHOULD NEVER be part of the Ask: “Anything/any amount you can give would really help!!”

The Ask must be for a specific dollar figure. It must be for an amount that (both solicitor and donor will know) will make possible one-or-more specific activities or programs that are essential to the mission of the NPO and will provide specific types of help to a particular constituency. It must also be a gift amount that will have an end result desired by the donor – helping a specific group of people and/or having his/her name prominently displayed.

It’s usually a question of credibility. When it becomes time for the Ask, the cultivator/solicitor and the prospective donor (should) have had a number of conversations about the NPO’s plans/programs/financial needs and/or the donor’s needs as relates to the NPO.

The prospect has been evaluated, the total amount of money to be raised (the goal) for the current fiscal year (or for a specific project) has been determined by a development planning process that “relies on” receipt of a specific number of gifts at specific dollar amounts.

In addition, and just as important, the prospect already knows (as a result of those conversations, noted above) what it will take to make “it” happen. The Ask is not just for a dollar amount; it is for a specific dollar amount that is needed to ensure creation/enhancement of a program/activity/service and/or the naming of a program or a (part of a) building.

To ask for any amount less than what will do the job is to say that all the preceding conversations have been nothing but hot air, that there’s not really an important need to be satisfied and people to be helped, that the NPO and the cultivator/solicitor aren’t to be taken seriously !!
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Watch for Part 3 of this topic – This Friday

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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you seen The Fundraising Series of ebooks ??
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If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

One of the things I find most frustrating about teaching classes in fundraising is the frequency in which people cry about not knowing the best/easiest way to ask for the gift and/or ask when/where will be the next class in “How to Ask.”

O.K. I understand. A significant percentage of volunteers/leaders who are involved in fundraising for their NPOs are afraid/ashamed/embarrassed to ask others for money, even when it’s to help people who really need the help!!

My approach to Asking for The Gift is simple: Don’t ask until the donor is ready to say, “Yes.” If the Ask is done at that point, the cultivator/solicitor knows the dollar figure for which s/he is going to ask … and the donor should have that same figure in mind.

Wow !! Sounds like magic, but it isn’t….

In my postings on Prospect Cultivation (see: https://staging.management.org/blogs/fundraising-for-nonprofits/2010/08/31/what-is-major-donorprospect-cultivation/) and Prospect Evaluation (see: https://staging.management.org/blogs/ fundraising-for-nonprofits/2010/09/07/ evaluating-your-major-gifts-prospects/) I indicated that the person who does the cultivation is the person who will eventually do the Ask. And, since this person was close to (or became close to) the prospect, s/he also needed to be involved in that prospect’s evaluation.

Since the cultivator has (ideally) transferred to the prospect the same feelings for and commitment to the NPO’s mission/programs and the interest in being recognized for his/her gift, when the time comes to Ask, both the cultivator and prospect should be at the same place intellectually and emotionally.

As part of the cultivation process, the cultivator has talked about his/her support of the NPO, how it’s made a difference and how good s/he feels about having given and having been recognized for his/her gift(s).

There has been discussion about the NPO’s programs (current and planned) and what funding will be needed to provide for all the people who are being and will be served.

This process is not intended to be sneaky. If the prospect isn’t aware that s/he is being cultivated and that an Ask is in the future, then s/he is probably in a coma.
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Watch for Parts 2 & 3 of this topic – Next Tuesday and Friday

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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you seen The Fundraising Series of ebooks ??
=-=-=-=-=-=-=-=-=-=-=-=-=-=
If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

(Writing a “Wow” Needs Statement)

So, how do you capture and hold the attention of the funder reading your proposal?

The first section of each proposal, after an introduction or executive summary, is the Needs Statement. That is where the proposal writer presents and justifies the request for funding.

The funder, of course, will be interested only if the applicant’s research had determined, and can demonstrate, that the project being presented is central to the funder’s agenda. Assuming that to be the case, the Needs Statement is the foundation upon which the entire proposal rests.

The need can be conceptualized as the gap between a situation as it exists and some ideal state.

For example, an animal rights group documents the abuse of animals and proposes a project of public education to reduce such abuse by a projected percentage. The need always must be presented from the point of view of the population to be assisted (animals, in this case).

Inexperienced proposal writers often, mistakenly, substitute the needs of the applicant organization for the needs of those being served.

Strong proposals offer compelling solutions to be carried out by competent, solvent applicants. Funders will not be moved by “needs” that talk about how much the applicant’s endowment has shrunk. [That gets us back to the “readiness” issue of an earlier blog. (See: Grant Readiness)] Only organizations that can present strong credentials will be in a position to address the needs they document.

The Need Statement must be well structured and supported by research to make the case. The need should elicit a, “Wow! I never realized that!” response.

Depending on the subject, citations and data can be used as long as they don’t disrupt the narrative flow. Go back to the newspaper article to see how a skilled reporter builds a case and draws in the reader. Then apply that structure to your proposal need and compare it to the ample number of examples available on the web.

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Watch for future (Grants) blogs in this series discussing the other elements of a grant proposal.
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Have a comment or a question about starting or expanding your grants program? Email me at Andrew@GrantServices.com..

Too many people (NPO board members, volunteers and staff) believe that “Evaluation” means determining what a potential donor should give!! That couldn’t be more wrong.

A formal evaluation process has two objectives: to identify a dollar amount that the prospective donor would be likely to be able to afford; and, to identify a (realistic) dollar figure that the donor will be asked to give – a figure that a donor might give if s/he were so motivated.

Though they may sound alike, they’re not the same thing !! And, they are not identified in the same timeframe.

The need to “evaluate” a potential donor ties into two circumstances:
(1) The Prioritization Figure: Since the members of a Major Gifts Committee (staff, board members and volunteers) don’t have an unlimited amount of time to chase every lead for potential major gifts, the list of those individuals must be prioritized, and those individuals with the highest dollar evaluations are placed at the top of the list … and get the most attention.

The focus, initially, is on determining if an individual should be on the Major Gifts Prospects List. Once you’ve determined that the other criteria have been met — see (https://staging.management.org/ blogs/fundraising-for-nonprofits/2010/06/15/who-is-a-major-gift-prospect/), you must come up with your first “evaluation:” Is this person capable of giving an amount equal to 1% or more of your fundraising goal … and where is s/he likely to fall on the “Gift Table” ?? — see (https://staging.management.org/blogs/fundraising-for-nonprofits/2010/09/07/constructing- the-gift-table/)

So, how do you come up with the number you use to prioritize your list of major gifts prospects? …by asking the person who suggested the name in the first place, by asking someone who knows the person fairly well, by getting a feel for the value of that person’s car/home/yacht/toys, by researching what that person has given/committed to other NPOs (just look at their annual reports, plaques in their lobby, stories in newspapers). In essence, the initial evaluation can be based on specific (publicly available) information or on “common knowledge.”

(2) The “Ask” Amount: When actually soliciting the gift/commitment, it is important that the prospect be asked for a specific dollar figure.* That figure must be consistent with the prospect’s ability to give, his/her business and family circumstances, the extent to which s/he may have become involved with the NPO and its mission/programs, the extent to which his/her “need” will be satisfied by making a gift of that amount, and the likelihood that s/he will say, “Yes,” to that amount.

The determination of that figure, therefore, must be part of a serious process. This figure must be based on solid information obtained from reliable sources … with the best source being the person who had been selected to “cultivate” and eventually solicit an individual. The actual determination of the “Ask” will be based on all the information available close-and-prior-to the actual solicitation.

*Oh, yes !! In case you were wondering why it is essential that a prospect be asked for a specific dollar figure, watch for my posting on “Asking For The Gift.”

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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you seen The Fundraising Series of ebooks ??
=-=-=-=-=-=-=-=-=-=-=-=-=-=
If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

So, you’ve completed your research and are ready to start writing!! The question, now, is how do you go about structuring your grant proposal?

For those circumstances where the funder provides specific guidelines, there’s only one rule worth remembering: “Follow those guidelines to-the-letter.”

But what about those many occasions when there are no guidelines for preparing the proposal? There are many examples on the web — just search for grant proposals, and hundreds, if not thousands, of hits will result.

Grant consultant web sites offer free information on formatting a proposal. My favorite is the Foundation Center’s Proposal Short Course at, http://fdncenter.org.

One of the best ways of learning how to structure a grant proposal, however, is by reading any lead article on the front page of the New York Times … or other daily newspaper. Grant proposals follow the journalistic model of who, what, when and how.

I once taught a proposal writing workshop for junior development professionals who were in their positions for less than six months. Their class assignment was to start writing so we, the faculty, could offer a critique. One participant turned in a near perfect first draft. When we questioned her as to why she was attending the class, she said she’d only been a development writer for three months. So we asked what she had done before? She had been a reporter !!

Structuring a proposal requires clear, concise writing. As in a NY Times article, the proposal writer needs to engage the reader by presenting a compelling case outline in the first paragraph or two. That introduction should include a statement of the issue to be addressed, why the applicant has the capacity to address it, how it will be addressed, who will be affected and how much it will cost.

The rest of the proposal then expands on each of those elements. Like the newspaper article, the lead tells all there is to tell and then entices the reader to learn more.
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Watch for future (Grants) blogs in this series, discussing each of those elements. Part Two, next Tuesday.
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Have a comment or a question about starting or expanding your grants program? Email me at Andrew@GrantServices.com..