Fundraising for Dummies PDF: Continuous Fundraising During Economic Fluctuations

IN THIS CHAPTER »» Keeping your eyes on the pulse of the economy »» Discovering your opportunities during an economic downtu...

IN THIS CHAPTER »» Keeping your eyes on the pulse of the economy »» Discovering your opportunities during an economic downturn »» Finding success by building lasting relationships »» Taking advantage of an upcoming economic recovery Chapter 1 Fundraising Continuously During Economic Fluctuations C hances are you love eliminating obstacles and taking on new challenges. You probably also enjoy people, have a passion for your cause, have skills that help you communicate easily, are personable, and know how to focus on details while keeping the big picture in mind. In your heart of hearts, you also may have a never-say-die belief that good causes need good people to raise the funds that keep them going. Congratulations! Raising funds resonates in your heart. Fundraising may not be the easiest job you ever do in your life, but as you gain understanding and experience, you discover that it offers great intrinsic and last- ing rewards. These rewards may be relationships with passionate and dedicated people; the achievement of goals for a cause you believe in; or the excitement of knowing your efforts are contributing to the common good by way of putting food on the table for those who are hungry, opening doors for those who need them, or cleaning up the environment for the next generation. All along the way, you have CHAPTER 1 Fundraising Continuously During Economic Fluctuations 7  the chance to be a matchmaker of good works and good people — bringing together people who have a desire to help with an organization that needs them. Even with all these inherent benefits, however, now isn’t an easy time to be a fundraiser. If you’ve been in the role for any length of time, you’ve probably spent hours watching with a wary eye as the economy pitches and sways. You wonder whether donors will have anything left to give, watch your endowment drop, and cringe at the economic forecasts. After all, in almost every industry today — education, healthcare, social services, environmental protection, public service — you find giving numbers down, corporations tightening their purse strings, foundations offering fewer grants, and government dollars slowing to a trickle. Although it’s important to have your eyes open, to know what’s happening in the world, and to discern how the current economic situation is impacting your orga- nization, not everything is doom and gloom. As you see in the world around you, times of disequilibrium find their way back to balance. As the economy shifts and topples, you get the opportunity to look more closely at your foundation, your approach, your programs, your messaging, and your people. You now have the time to give a closer look to the areas you took for granted when times were good. How has your organization changed? What are your opportunities today? How can you work together with your staff and board more effectively — while improving your efficiency and cutting costs at the same time — so that when the numbers begin to rise again (and they will), you’re ready to move even more effectively into the abundance? This chapter offers practical in-the-trenches ideas for navigating through rough patches, capitalizing on your successes, and planting seeds now for some major blossoming in the months and years ahead. Looking Ahead and Planning for Revenue Ups and Downs Beginning in 2020, the world’s economy was showing signs of record-breaking decline from the deadening grips of the COVID-19 pandemic. Unprepared non- profit organizations had no choice but to lay off staff and close their doors to those in need of their services. A darkening cloud of economic doom became the demise of thousands of nonprofits. However, the Giving USA Foundation, a public service initiative of The Giving Institute, released a report stating that even in a year of unprecedented events and challenges, charitable giving exceeded $470 billion. How can this be explained? Why are donors even more charitable when the econ- omy is strangling their savings and investments? 8 PART 1 Getting Started with Fundraising Early on, Giving USA predicted a bullish 2022. Individual giving was predicted to be strong because of the growing trends in the stock market. The temperature of philanthropy is highly correlated to the strength of the stock market. Flash back to 2021, when Giving Tuesday raised $2.7 billion — a 6 percent increase over 2020. Donors increased during the pandemic. So why did so many small- to mid- size nonprofits close their doors? A lack of preparedness on the part of their gov- erning body. When times are hard, giving doesn’t necessarily decrease, as previously perceived. Giving levels in 2021 proved this to be true. While the struggle is real for nonprof- its that depend on donations to keep their doors open, some donors have yet to be cultivated and asked to give for their charitable causes. It’s important to balance the dismal facts and figures that accompany economic downturns with a larger sense of the ebb and flow of philanthropic work. Money may be tight right now, but the number of people who care about your cause isn’t in short supply. Being able to tell your story in a positive way that clearly shows others how they can help is an important first step toward fulfilling your mission in any economy. With a little creativity, vision, collaboration, and passion, you may find that you can easily do more with less — while serving a greater number of people than you’d previously thought possible. In the following sections, I outline some of the difficulties your organization may be facing and point you in the right direction for coping with them. Creating a contingency plan for the continuation of services Looking ahead and planning for revenue ups and downs is your primary role as a fundraiser. During the COVID-19 pandemic, nonprofit organizations that shut- tered their doors didn’t have a plan for continuing operations during unexpected and precarious times. Every time you start a job with a new nonprofit, it’s critical to assess operational strengths and weaknesses. Why? Because the weaknesses must be brought to the governing board’s attention so that they can be addressed expeditiously. Here are some leading questions to ask of the senior management staff and the board members: »» If our building is uninhabitable because of weather, fire, or building code violations that result in it being condemned, where will we provide our services? CHAPTER 1 Fundraising Continuously During Economic Fluctuations 9  »» If we can’t meet with our clients in person due to national or state lockdown, natural disasters, a pandemic, or escalating violence, what plan is in place to move all services to virtual via the internet? »» What past and current donors will step up and support us for the continua- tion of services? »» Who are our untapped work and social connections that have the financial means to contribute to our organization? The best time to plan for continuation services and sustainability is when times are good: There’s no crisis, money is flowing in as expected, and the economy looks stable. Frantically looking for funding amid an economic crisis is unforgiv- able hindsight. Think ahead, and plan ahead! Preparing your board and staff for organizational survival Nothing about the fundraising climate is ever business as usual. Giving happens in ups and downs. This basic fact reveals three stark revenue stream–planning realities that every fundraiser needs to recognize in times of economic challenge: »» Reality 1: When giving is down, you want to be prepared. »» Reality 2: When personal income is down, clients are most in need of services. »» Reality 3: When government expenditures are down, private sector funding increases. As a fundraiser, these three realities add up to the realization that unless your organization hits it big with a major event, gets a huge grant you’ve been working on for a while, or suddenly discovers a sleigh full of major donors who are intact financially and ready and willing to give, your donations are likely to be lower than forecasted during an economic slump if you’ve been negligent in studying giving motivations and patterns. To top it all off, if you’re an organization that relies less on people for donations and more on government support for your pro- grams and services, you may find that your program has been reduced, under- funded, or even cut off from your source of state or federal funding. To help you navigate these choppy waters, I’ve included information in Chapter 8 on how to connect with your donors in a variety of low-cost, high-impact ways. Chapter 11 helps you think through your approach for writing engaging, inspiring grant proposals, and all chapters in Part 4 focus on specific campaigns you can use to approach your donors in different ways. 10 PART 1 Getting Started with Fundraising READY FOR THE GOOD NEWS? Are you ready for some good news? In his book Democracy in America, Alexis de Tocqueville wrote that people generally rise to the occasion they’re presented. Most people have seen evidence of this phenomenon in their lives, whether it’s a neighbor- hood rallying for a sick child, a community raising funds for an after-school program, or dramatic and personal humanitarian efforts like all those who came together to help the citizens of Ukraine. On the one hand, you must face the facts and figures and deal with the dire predictions and circumstances that accompany down economies. But on the other hand, you have the history and culture of what countless people have done in the United States to com- bat bad times in the past. Somehow or other, when times are tough, individuals and organizations alike develop more compassion for those in need and for those causes that are important for society. Your organization can do the same today as you figure out how to do a better job of working with what you have — doing more with less. All the hardship you’re dealing with now offers you countless lessons to learn, and it may even result in a more efficient, focused, and streamlined organization. As you make your way over the many hurdles, you gather lots of wisdom from the experience. Plus — and this is icing on the cake — when things begin to get better, you have one heck of a good story to tell. Coping with staff reductions and shrinking budgets Watching contributions slip and investment values fall inevitably strikes a cold fear in the heart of every nonprofit leader and fundraising team. Sure, the idea of reducing programs and services is a difficult one. But the toughest calls of all for organizations founded on the idea of people helping people are the ones that impact the lives of the people you serve and the friends and colleagues you work with. Does a decision you feel you have to make to cope with the current economic state mean that staff won’t get a raise this year? That some open positions will go unfilled? That layoffs are on the horizon? In Chapter 5, I show you how to help your board tackle the tough decisions so you know what to plan for and what to expect. You may be surprised to find a little breathing room and discover that you can chart a course that’s open and honest and that builds trust throughout the entire organization, even — and perhaps especially — in the midst of trying times. CHAPTER 1 Fundraising Continuously During Economic Fluctuations 11  You may not be able to give staff a raise this year, but you can offer other benefits to offset that loss. Depending on the way your organization is structured, you may be able to offer flex time, give an extra personal day, or change other perks that don’t relate to an increase in the bottom line. Finding partner organizations and revenue sources Fundraising executives must be at the forefront of forging partnerships with agencies that are financially rock-solid, have been in operation for decades, and know the movers and shakers who can write a large contribution check with just a phone call. The world will always be in some type of recovery, whether it’s a plethora of financial disasters, natural disasters, or war. Finding and maintaining positive relationships with economically stable partner organizations like banks, long-time municipal government agencies, stock brokerage firms, and more can turn out to be your organization’s saving grace when revenues are down. Another term for these types of revenue sources is old money. In Chapter 3, I offer a number of resources to help you steer your organization effectively using ethical principles in fundraising. In that chapter, you discover a number of organizations that are designed to uphold the best ideals in fundraising and are made up of people who work to guarantee that, troubled times or not, fundraising remains a noble endeavor. Making Revenue-Producing Changes Even though at times the challenges you face as a fundraiser may feel more like mountains than molehills, you cross all challenges the same way: one step at a time. Wherever your organization finds itself — in financial peril, in economic uncertainty, or with lower-than-expected donations and few prospects for grant funding — you can locate a path to more solid ground. Use the measures pre- sented in the following sections to begin to restore a sense of stability. Whittling down your mission Your current situation presents opportunities to look more closely at the programs and services you offer and to get clear about your priorities and positions. You can fine-tune your case statement, revisit your mission and consider reducing a long- winded paragraph to a mere one sentence, engage your board to approve the 12 PART 1 Getting Started with Fundraising slimmed-down mission statement, retool programs and services, and maybe bring in some great new volunteers who can provide valuable stakeholder insight. Let’s revisit why you should whittle down your mission. At the beginning of a nonprofit’s formation, passion and commitment from the founder(s) and the governing board are at their highest level. Often, the mission becomes a never- ending statement of what the nonprofit hopes to accomplish in the here and now. However, the here and now changes from minute to minute, day to day, and year to year. When something unexpected crushes every plan, it’s time to retool the mission. A shortened mission statement can and should reduce the number of programs and services shaving away at scarce revenues, fine-tune your most-in- need target service population, and keep the doors open when others are closing. In Chapters 4 through 6, I show you how to shine a light on your programs and services and reprioritize so that the programs that meet the biggest need in your community right now are the ones that gain your attention. By getting clear on your mission and exploring creative and innovative ways to deliver the programs and services that meet your goals, you streamline your efforts, which helps you do more of what works — and less of what doesn’t. Paring your services (or pairing up to provide them!) By definition, focusing on some services means giving less attention and effort to others. How can you help your organization decide what to keep and what to drop? Chapter 5 offers an exercise to help you evaluate your options. In some cases, you may be able to fulfill your mission by keeping all your programs and services alive through a creative partnership or merger. Today organizations are teaming up like never before to share costs, reduce overhead, and get more done. Find out more about teaming up with other organizations in Chapter 6. Collaboration isn’t a new idea in nonprofit work, but many organizations still like to run their own shows when it comes to delivering programs and services. If you can team up with another organization to meet the needs of a greater number of people at a reduced cost, go for it. Besides helping you serve more people, working together with other organizations improves your overall image in the eyes of grantors (the organizations or foundations who offer grants to organizations like you), which can significantly boost your bottom line. After all, foundations like to see cooperative efforts on the grant proposals you submit. (Find out more about grants in Chapter 11.) CHAPTER 1 Fundraising Continuously During Economic Fluctuations 13  Nurturing the donor-organization relationship In down economic times, it’s more important than ever to know your donors. Research the giving patterns of your constituents, find out what life is like for your regular donors, stay in touch with your major givers, and use your messaging to reassure, inform, and invite donors to stay engaged with you. Check out ­Chapters 7 through 10 to discover everything you need to know about researching and cultivating your relationships with your donors. Make sure that your messaging is empathetic and honest, but stay away from crying wolf too often. However, when the need is real, dramatizing a community crisis can be an effective way to gather new donors and encourage those who have given in the past to give again. For example, a food pantry discovered it was going to come up short in supply of its needs, so the board enlisted the support of the local mayor. This added support resulted in lots of free media and an uptake in giving. Crying wolf may work once in a while (especially when someone in your commu- nity is truly in dire need), but overusing dramatic urgency can leave your donors unimpressed. It’s better to be straightforward, present the opportunities, and invite your donors to be part of your cause. You can reduce the anxiety your staff and donors may be feeling for any number of reasons simply by being candid (although being candid does take a little cour- age). When you use candor with kindness to address the situation directly, people feel relief to know the straight story — even if it’s not good news — and they usually feel they can trust what you’re telling them. Turning to cost-effective processes In the middle of a thriving economic time, people tend to build on programs and services, layer new ideas over the tried-and-true, and take on expenses in a gen- erally optimistic frame of mind. When money gets tight, people constrict that expansiveness and begin to look more closely at what they spend and why. This kind of close evaluation is really a good thing for your organization to do period- ically, whether or not it accompanies financial hardship. By scrutinizing the giving patterns and donation flow in your organization, you can get a sense of which campaigns during the year have worked in the past and make some estimation of what may work again. You can also find out more about the who, what, when, where, and how of special events and explore areas in your organization where you tend to spend a lot of your money (in four-color print 14 PART 1 Getting Started with Fundraising  pieces, for example). After you identify what processes you’ve been using to fulfill your organization’s mission, you can look for ways to make those processes more cost-effective. In Chapters 14 through 17, I show you how to build community, get your message out, increase the visibility of your brand, and build your online presence by using free or low-cost tools that reach an ever-widening audience for a fraction of the cost you’re paying for print pieces. In Chapter 19, I show you how to use another low-cost tool — webinars — to share your organization with potential donors. Webinars provide a great opportu- nity to reduce heavy travel expenses for everyone in your organization while mak- ing meetings more flexible and time-effective. For a low cost, you can host an online session with presentations, a whiteboard, video, and other programs, while your organization’s leaders talk by phone. Touting Your Successes and Building Supportive Relationships It’s been said that it’s human nature to create — we create with our ideas, our thoughts, our words, and our actions. When you talk up your recent successes, no matter how small they might be, you inspire the people listening to think posi- tively about your organization. When you’re the voice of stability in a time of great change, you paint the possibility of better times in your listeners’ minds. When you make a real effort to build relationships with your donors — simply to build the relationship, whether they choose to donate or not — your donors realize that you value more than their financial contribution, which makes a huge difference in the goodwill they feel for your organization and perhaps for you personally. One day that goodwill may convert to a dollar amount — or it may lead other potential donors to your door. The following sections discuss some key points to keep in mind as you promote your organization. Telling your story well Especially when daily news is filled with negativity, people love to hear a good story. Lucky for you, your organization likely gives you lots of positive stories to tell — people who have been helped by what you do, volunteers who love their work, improvements you’ve made, lives you’ve changed. Although these good things may happen against a backdrop of short-fall funding and delayed grants, share your successes out loud with your donors, your staff, and your public. CHAPTER 1 Fundraising Continuously During Economic Fluctuations 15  In Chapters 12 and 13, I show you how to tell the stories of the good things that are going on in your organization. I explain how to make a splash in print (through your annual report), take your stories online, and even post them in videos. Whether you’re a lone fundraiser in your organization or you work with a team or committee, prepare a weekly dashboard that shows what donations came in, what expenses went out, and what kind of progress you’re making. This simple data serves as a quick-look guide to show your progress week by week; plus, it gets your whole team engaged in the effort of recognizing and talking about your orga- nization’s successes — big or small. Engaging people who care People who cared about your organization before the economic downturn still care about it today — they just may be less certain about their own abilities to give. You can help your donors recognize the many ways that they can give to your cause by staying in touch with them through email, phone calls, and the web — even dur- ing economic downturns. Stick with your normal pattern of communication, whatever that may be. Consistency is important in building donor relationships, and your donors will be paying careful attention to the way you navigate through this rocky time. You can be creative about the ways in which you invite your donors to participate in your cause by increasing the number of giving options, spotlighting volunteer- ing, offering matched-giving opportunities, or hosting low-cost, service-related events that enable donors to socialize and find out more about your organization. Chapter 8 shows you how to get to know your donors in a way that makes helping out your organization a natural next step. Developing relationships with key businesses and funders Corporate philanthropy takes a hit just like everything else in tumultuous eco- nomic times, but the corporate citizen also has a vested interest in doing good — both for tax reasons and for the general goodwill and morale of employees. Continuing to develop positive relationships with businesses in your area or industry is important, and continuing to talk with potential major givers is a given. Chapter 22 takes a closer look at corporate philanthropy, and Chapters 9 and 21 show you what you need to do to cultivate those important major givers and secure their gifts. 16 PART 1 Getting Started with Fundraising  Meet as usual with your potential business sponsors and constituents — communicate, communicate, communicate. If you can find that perfect match — just the right fit for a particular corporate-giving program, for example — you may be surprised to discover how many people truly want to give, even though they feel limited in how much they can give right now. Over time, a $15-a-month donation may increase to five or ten times that amount. Doing Your Best to Bring In the Dollars Just because the numbers are down and people are forecasting difficult days doesn’t mean you can’t keep trying. During economically tough times, it’s more important than ever to ramp up your fundraising energy, double your efforts, and stay in a positive frame of mind. Spending just as much time and energy as you always have in cultivating relationships, telling your story, looking for good fits, and managing your expenses effectively will pay off in the long run. Here are just a few of the ways you can make your hard work pay off in tough times: »» Reduce costs on your annual fund drive by replacing most or all of your print appeals with email. »» Improve your website and make it possible for donors to give online. »» Participate in community events to help keep your organization in the public eye. »» Be willing to partner with other organizations who have similar or comple- mentary missions. »» Say thank you graciously — even if you’re getting only a portion of what you’d hoped for. »» Come up with creative, low-cost special events that help people socialize while doing something good for your organization. »» Be willing to share your challenges with others and enlist their help in reaching your goals. Chapters 14 through 17 show you how to reduce your print costs by moving many of your fundraising efforts online. These chapters also explain how to get listed in charity portals and work with online affinity groups. Chapter 19 is all about creat- ing attention-getting special events (while keeping an eye on your budget). CHAPTER 1 Fundraising Continuously During Economic Fluctuations 17 Preparing Now for When Things Start Looking Up As you can see, many of the challenges fundraisers face right now are really opportunities in disguise. A chance to streamline programs and processes. An opportunity to focus on what really matters. An invitation to take a look at the mission statement, goals, and objectives of your organization to see whether you need to update them, renovate them, or throw them out and rewrite them completely. You can position your organization to be prepared for the good times that will return (sooner or later) by completing some of the tasks I present in the following sections. If you’re still unsure about how your organization will face the chal- lenges ahead, this section may provide the encouragement you need to forge ahead. Laying the groundwork to take advantage of an economic recovery What can you do now to get your organization ready to make the most of the good times when they return? Here are just a few ideas: »» Get your case statement in sterling shape (see Chapter 4). »» Take a look at your organizational chart and make sure your organization is set up to run efficiently. »» Build your donor relationships day by day (see Part 2). »» Make sure that your communications are clear, honest, and mission-driven (see Part 3). »» Figure out how to use social networking technologies to build community and goodwill (see Chapter 14). »» Consider partnering with another organization to share costs and increase visibility. »» Consider adding a contingency fund in next year’s budget. »» Replace much of your print expenses by using email for letters and newslet- ters (see Chapter 15). »» Expand what you offer on your website, and provide more information for donors and readers (see Chapter 16). 18 PART 1 Getting Started with Fundraising  »» Build your brand and use it everywhere (see Chapter 17). »» Invite donor feedback to welcome your donors’ engagement with your organization (and be sure to acknowledge and use the feedback you get). In Chapter 5, I invite you to plot the history of your organization. What you likely discover as you create your organization’s timeline is that you or your predeces- sors have survived downturns before like the one you’re in now. Your organization has indeed risen to difficult times in the past and overcome them, and ultimately, things did improve. What’s more, the difficult times in the past and those you experience today give your organization the chance to witness the creativity, compassion, and collaboration that shows up when people face challenges together. Moving forward with hope Before I jump headfirst into the many fundraising approaches available to you, I take a look at two stories that offer slightly different approaches to fundraising in tough times. Consider what these two organizations did to survive the chal- lenging trials that faced them, and then read the rest of this book to find out what you can do to help your own organization make the most of fundraising in both good times and bad. Giving from a belief in abundance A local church decided that churches aren’t the only ones doing good work; lots of nonprofit organizations are, too. Even though the church was barely making it and living hand-to-mouth, after careful consideration and the belief that society is abundant, it decided to donate 10 percent of the collections it received each Sunday to a local nonprofit. To this day, this church has never missed a payroll and continues to donate 10 percent of its weekly donations to local nonprofit organizations. No matter what your mission may be or which constituency you serve, taking a good look at where your principles align — as individuals and as an organization — gives you the opportunity to see whether your actions align with your beliefs. Do you believe that your good work will ultimately be funded? Are you generous to other organizations with missions similar to your own, in terms of sharing community interest, expressing goodwill, and being willing to collaborate when possible? Examine your own attitudes about nonprofit work, and consider what kinds of belief statements your organization makes through its daily operating practices. CHAPTER 1 Fundraising Continuously During Economic Fluctuations 19  Creativity and the power of collaboration In 1980, the United States was deep in an economic downturn. Everything was in double digits: inflation, unemployment, and interest rates. As the new state administration in Indiana sought creative ways to respond to the widespread challenges, it realized that helping communities develop their economic potential was a powerful way to plant good seeds during a time of struggle. In communities all over the state, the lieutenant governor and his staff gathered the nonprofit community (including faith-based organizations), the business community, and government representatives and presented a plan for a local economic develop- ment initiative that helped communities (1) identify the community’s assets; (2) identify the people in the community who could be enlisted to help (volunteer leaders who get things done); and (3) identify funders who could contribute to the initiative. More than 165 local economic development corporations (LEDCs) were born during that difficult time. The inspired idea helped these communities to stop wringing their hands and begin to move forward by recognizing their assets, mobilizing their talent, and beginning to build for the future. When dire times call for creative measures, you can trust the fact that people rise to the creative challenge. In your organization, you may be fretting about many things, but one thing is certain: If you’re inviting and listening to the input of people who care about your cause and are dedicated to your mission, new ideas will arise. And you’ll know you have a winning idea when it includes the creative and collaborative effort of many people and brings the best to the table for both your organization and the people you serve. Weathering the storm As you know well, the fundraising landscape today is full of sand traps and snake pits and unseen twists and turns. Eventually, the way will feel easier and the path will look clearer, but when you encounter moments of challenge, you find the internal and external resources you need to accomplish your mission. People mobilize to help you. Opportunities pop up unexpectedly. New programs bring new donors. And the good work continues. It’s your job as your organization’s fundraiser to put all the ideas you get from your donors, your board, your volunteers, your staff, and yourself to work through fundraising approaches that honor your mission, respect your donors, tell your story, and invite dedication and commitment to your cause. 20 PART 1 Getting Started with Fundraising  IN THIS CHAPTER »» Finding the spark that brought you to nonprofit work »» Building service with passion »» Plugging in with social media platforms Chapter 2 Embracing Fundraising with a Passion F undraising folks have an old saying: “People don’t give to causes. People give to people with causes.” This saying means you’re one of the most important parts of the fundraising process. Your inspiration, your perspiration, your passion. So now comes the hard part: What are you passionate about? Chances are good that passion for a particular cause led you to the field of fund- raising in the first place. Oh, sure, you find professional fundraisers who are interested first and foremost in turning a fast buck and changing jobs as often as they change their clothes. But those people are few and far between in my experi- ence. The majority of people are drawn to organizations because they see a need — up close and personal — and because they feel compelled to do what they can to make a difference. When you’re part of a mission that’s close to your heart, the potential for creative effort and action increases, and others are inspired and attracted to what you’re doing. Not only is that spark of passion the driving force behind your desire to help, but it’s also one of the best tools you can use as you fan the embers of possibility into a full fundraising flame. When you’re trying to fundraise in uncertain economic times, plugging into your own passion — why you do what you do — is a vital piece of telling your organization’s story with the energy that captures people’s attention. CHAPTER 2 Embracing Fundraising with a Passion 21  In this chapter, I take a look at having and staying in touch with that initial spark that brought about the birth of your nonprofit organization, that keeps it going, and that you caught and are helping to flame. I also show you how to fan the flame to ignite others for your cause, give you the rundown on some basic fundraising lingo, and reveal just how many nonprofits you’re competing against to raise funds so you know just how vast the industry is. For those of you who are just breaking into the nonprofit world, I give you some advice on maintaining the buzz. Finally, I give you a taste of how to use social media to build excitement about your organization. Sparking Fundraising Action As anyone who’s ever tried to raise money can attest, fundraising isn’t a pretty word. In fact, it’s a tough term to confront, a kind of oh-no-here-comes-the- pitch word. Some people say that fundraising is really friend-raising, but saying that is like putting a bit of polish on an otherwise often slippery surface. Nonetheless, fundraising is a necessary part of any nonprofit organization — the part that puts the hinges on the doors so people can open them and the part that keeps the blankets on the beds and the food in the pantry. It pays the salary of the midwife, helps the senior citizen find affordable medication, and provides day- camp scholarships for inner-city kids. But fundraising isn’t the main objective of a nonprofit organization, although you may sometimes feel like it gets the bulk of the focus. Fundraising is the means to an end, the way to fulfill your mission, whether that mission is reaching people who are economically disadvantaged, homeless, or in need of mental health services, or promoting the cultural areas that you’re passionate about. Taking the time to think through beliefs about money in general, and fundraising in particular, is important because your unexplored ideas may, for better or worse, affect your overall success in your role. If you consider the biases, apologies, and reactions that you battle against (both within yourself and from the general population) when you set out to raise funds, you’ll be better informed and have a deeper understanding of donors and why they chose one charity over another. Most importantly, all your experiences will contribute to being phenomenally successful in your role as a fundraiser. In this section, I touch on what you need to do to spread your initial spark and passion for your cause to your potential donors. (Chapter 3, which deals with the ethics of fundraising, covers how you think about what you do.) I also introduce 22 PART 1 Getting Started with Fundraising you to the nuts and bolts of fundraising language so that you can talk the fund- raising talk to the donors you’re trying to attract. Remembering why you signed on You may be involved with fundraising today, or you may be considering a request for involvement, but either way, the initial spark that got you interested in your cause is what I’m talking about here. Like the Olympic flame, your spark is carried from person to person and warms the very lifeblood of your organization, whether you’re a volunteer, a staff member, or a board member. Knowing your spark story is important for several reasons: »» When you share it, it inspires others. »» When you remember it, it inspires you. »» When you recognize its importance, it helps you remember your priorities. »» When you keep it in mind, it provides a common ground where you can meet and enlist help from others whom you bring into your organization’s cause. RECLAIMING YOUR SPARK If you feel that you’ve lost your initial spark or haven’t really analyzed what brings you to the cause you’re helping to promote, ask yourself the following questions and see whether that spark reignites (and if it doesn’t, you probably need to find a different cause to get involved with): When did I first become involved with this organization? What brought me here? What did I think was important about this cause? Why did I decide to help? What was going on in my life at the time that this cause appealed to me? What’s my favorite success with this organization? A client’s happiness? A problem solved? A new connection made? What do I need to reconnect with my passion for this cause? How can I help others see what I see? CHAPTER 2 Embracing Fundraising with a Passion 23  Helping your donors catch the spark I talk in this chapter about the importance of knowing what brought you to non- profit work in the first place. That initial spark shows in your eyes and your smile. It carries in your voice and makes your story ring true. It shows in the manner in which you promote your organization and in the personal pride you take in your relationship to your work and your cause. This section presents a few key fund- raising philosophies and tools that can help your donors catch the same spark that inspires you. For more specifics about working with donors, visit Part 2. The best thing you can do for your donors is to believe in the mission you’re rep- resenting. When you’re gung ho for your cause, others see the importance of it and are encouraged to join. They start to imagine themselves working for a solid cause, a good effort, a positive change. Today’s philanthropy realizes that you can’t always see or touch the person who needs the help. Nonprofit organizations arose to help you help others, whether they live down the block or on the other side of the world. These organized bodies provide the channels for your help to get to families living in poverty in ­Guatemala, AIDS orphans in sub-Saharan Africa, or families experiencing homelessness in your own town, which, in turn, enables you to do something concrete to help change the world for the better. As a fundraiser, you’re the all-important link that helps a caring donor give to others. When you view what you do in this way, you recognize the importance of your role as a service provider. You also see how your initial spark can pass from one person to another. And suddenly, the conversation is no longer about simply raising funds. Talking the fundraising talk At first glance, fundraising may not seem like a fashionable profession that peo- ple oooh and aaah about at social gatherings. (In fact, until people know you, they may avoid your gaze to avoid being asked for a contribution!) But when you come from a point of passion, your efforts take on the nobility of working for the greater good. Like any industry, fundraising has its own language, and to spread your spark effectively, you need to understand and use the terminology naturally. You no doubt see and hear the following terms again and again as you raise money for the causes you believe in, so try to familiarize yourself with their meanings: 24 PART 1 Getting Started with Fundraising VOLUNTEER TRENDS IN THE UNITED STATES Do you think volunteering is only for those few people who don’t have other commit- ments? Well, think again. According to Volunteering in America, a research brief that AmeriCorps published in 2021: More than 32 million male volunteers contributed roughly 3 billion of hours of services. More women than men (33.8 percent of women versus 26.5 percent of men) volunteered. Volunteers donated 6.9 billion hours of service to nonprofit organizations. Volunteer service for women was estimated to be worth $94.5 billion compared to $72.4 billion for men. Millennial volunteers exceeded 19.9 million with a contribution of 1.5 billion hours of service worth an estimated $36.7 billion. Volunteers are donors, too! 54.7 percent of women donated $25 or more to charity in comparison to 49.4 percent of men. »» Philanthropy: Actions and giving that attempt to improve life for people. In the fundraising field, one standard definition of philanthropy is “voluntary action for the public good,” meaning any action you take, with or without a financial component, to make life better for someone else. When you tithe at church, you’re taking part in philanthropy. When you drop coins in the container on the counter at the local convenience store, you’re being a philanthropist. When you include your local Boys and Girls Club chapter or your alma mater in your will, you’re practicing philanthropy. »» Annual fund: A yearly fundraising effort. Most organizations run a yearly fundraising campaign in addition to any program-specific efforts. This annual fund is often earmarked for ongoing operational expenses. See Chapter 18 for more about annual funds. »» Endowment: A substantial fund that generates ongoing income from its investment. An endowment is usually a large sum of money that’s invested. The apprecia- tion from its investments and the interest the money generates support an organization. See Chapter 23 for more about how endowments work. »» Restricted funds: Funds that the donor designates to be used for a specific purpose, such as for a particular program or fundraising drive. CHAPTER 2 Embracing Fundraising with a Passion 25  PHILANTHROPY AS A RIGHT Although philanthropy isn’t a new concept, U.S. residents get a perk when they give to worthy causes that residents of other countries don’t: The United States is the first country in the world to include a fundamental philosophy that encourages charitable giving. When you give, you get a tax break. This break isn’t some loophole that someone figured out how to wriggle through. It’s intentional. Lawmakers highly regard the prac- tice of philanthropy — it’s part of your heritage, part of your right, and, some say, part of your obligation. One of the reasons philanthropy is so important in the United States has to do with the diversity of the country’s population and the foundational principles at the heart of the American ideal. Nonprofit organizations help lift and address needs that can go unrec- ognized and unmet in groups focused on the majority; through nonprofit organizations and the programs they develop, minorities can be heard and helped. I’ve always had a passion for helping others. To fuel my passion, I started a private oper- ating foundation funded in its entirety by my intellectual property royalties and custom- ized training programs. I noticed that most small nonprofits falter in finding start-up and seed grants, yet their missions resonated in my heart. Remember, compassion fuels individual philanthropy, and need directs it. Over two dozen financially struggling nonprofit organizations have received checks and online contributions from the Grant Writing Training Foundation. Every incoming dollar makes a difference for small start-up nonprofit organizations. Thus, you can see a major potential benefit that philanthropy offers society at large: Philanthropy gives individuals and causes a voice, no matter where they fit on the spec- trum of humanity. »» Nonrestricted funds: Funds that the donor hasn’t designated for a particular purpose and can be applied as the nonprofit organization sees fit. Building on Passion in the Nonprofit World The nonprofit organizations (NPOs) you care about were born from passion — a response to an identified need in the local, national, or international community. The very frame of philanthropy rests on the idea that “when people work together, they’re stronger” — when you share your resources, whether those resources are your wealth, time, effort, or ideas, others benefit. When people provide help, comfort, education, and more to people in need, society as a whole benefits. But 26 PART 1 Getting Started with Fundraising putting together solutions is hard work — and passion and hard work are essen- tial ingredients to carrying the idea from that initial spark of a recognized need to the realization of a program that achieves its mission. THREE NONPROFITS BUILT FROM PASSION Looking at examples of how passion has been at the core of fundraising efforts can be enlightening and inspiring. Here are just a few examples: When charity: water founder Scott Harrison signed up for volunteer service as a photojournalist with an organization called Mercy Ships, he had no idea what lay in store for him. Mercy Ships is a humanitarian organization that brings — via floating hospitals — free medical care to some of the poorest nations in the world. During his service, Harrison met courageous and compassionate people whose lives were shaped by heartbreaking poverty, illness, violence, and more. Out of Harrison’s desire to be part of the effort to improve quality of life through simple service, char- ity: water was born. The organization works to raise awareness and provide clean, safe drinking water to developing nations. The charity: water website shares the statistic that one in six people in the world don’t have safe water to drink — a basic life necessity many people take for granted. You can find out more about charity: water at www.charitywater.org. MADD (Mothers Against Drunk Driving) was created when mom Candy Lightner lost her 13-year-old daughter Cari in an accident caused by a repeat-offender drunk driver. Though the organization benefited from a few large corporate gifts at its inception, it continues to be a grassroots organization calling for heightened aware- ness and tougher punishments for alcohol- or drug-impaired drivers. MADD has more than 400 affiliates worldwide because of Candy’s original passion, her per- ceived need for an organized effort to combat drunk driving, and the initial spark that spread to others. MADD illustrates perfectly what passion applied to a cause can do: Beyond simply growing in numbers, MADD grew in voice, becoming instru- mental in changing the values and perspectives with which people view drinking and driving in today’s culture. You can visit the MADD website at www.madd.org for more information. Habitat for Humanity grew out of a passion sparked in the mid-1960s when founders Millard and Linda Fuller visited Koinonia Farm, a small, cooperative farm- ing community in Georgia. There they began discussions with farmer and scholar Clarence Jordan about the possibility of partnership housing, in which those in need of homes would work together with volunteers to build solid, affordable homes. Since Habitat’s founding in 1976, the organization has helped more than 4 million people construct, rehabilitate, or preserve homes. Check out the Habitat for Humanity website at www.habitat.org for more information. CHAPTER 2 Embracing Fundraising with a Passion 27  And of course, you’re not alone out there — your organization is competing for funding with many others. In this section, I explain how that competition makes drawing on your passionate sense of mission even more important for the overall success of your organization. Competing for dollars Even though changing economic times bring adjustments in the giving world, fundraising totals haven’t dropped as much as you may think. Giving USA 2021: The Annual Report on Philanthropy for the Year 2020 reported that in a year of unprec- edented events and challenges, charitable giving reached a record $471.44 billion in 2020. In fact, 2020 was the highest year of charitable giving on record, accord- ing to the Giving USA Foundation. Whether your organization’s numbers were up or down last year, you may be wondering about your competition. How many people are doing what you do — raising funds for various NPOs? How many of these organizations exist today, and how does that compare to a decade ago? In other words, what does your compe- tition for fundraising dollars look like? According to the National Center for Charitable Statistics (NCCS), the number of nonprofit organizations registered with the Internal Revenue Service (IRS) increased by 4.5 percent between 2006 and 2016 to a record number of approxi- mately 1.54 million. While there is a plethora of fundraising opportunities, it’s also important to recognize that many nonprofit organizations are feeling a greater demand for their services with a seemingly ever-decreasing pool of avail- able resources. Missions overlap. Different organizations seek to serve the same populations. Donors are pulled in different directions, recognizing that a number of similar organizations addressing similar needs may covet their dollars. The sad fact is that a nonprofit mortality rate does exist. Each year, nonprofits fold up their 501(c)(3) umbrellas and disappear. The level of competition for today’s fundraising dollars means survival of the fittest. To survive, you need to stay on your toes and be ready for anything. Sometimes you may even ask your- self, “Is this service worthwhile? Are there other organizations repeating our services?” Keeping your organization going What does this competition mean to you? For starters, if you want to keep your organization active and growing, you need to 28 PART 1 Getting Started with Fundraising A MIXED BAG OF CONTRIBUTIONS Many nonprofits receive funds from a variety of contributors. An arts organization, for example, raises a percentage of its funds by selling tickets to its exhibits, applies for grant monies from selected foundations, solicits charitable contributions and in-kind gifts from corporations, and develops a planned giving program to help longtime donors work out bequests that continue to fund the organization after the death of the donor. (See Chapter 21 for more on planned giving.) In some agencies, especially those involved in health and human services, government funding is also part of the package. Other nonprofits sell a product and thereby are responsible for some taxable income in addition to their charitable contributions. Whatever the funding patterns for your organization may be, get to know your income sources. Evaluate them, assess them, and know where your strengths and challenges lie. Strengthening this part of your program can help you discover major funding possi- bilities that you may be missing now. »» Know your mission statement inside and out — and make sure it’s relevant. A crystal-clear “Why are we here?” mission statement (also called a case statement) helps keep everyone focused on the organization’s vision. See Chapter 4 to find out about crafting a case statement that speaks to today’s needs and touches people’s hearts. »» Be different. Know what you offer that’s unique to your organization. Be active in local fundraising groups, and know who else serves the population you serve. When possible, work with, as opposed to against, other agencies so that you can complement and not duplicate each other. »» Know what’s out there. Make it a part of your regular research to know who’s funding similar organizations, where leaders in the nonprofit world are migrating, which topics are in the public mainstream right now, and how your mission connects with what’s happening in the world. Stay engaged through social media, email, discussion boards, and every opportunity for a good conversation. (See Part 3 for more on using these resources.) You never know where or when great connections will arise. The Chronicle of Philanthropy is one publication that should be in any fundraiser’s toolkit. Check it out at www.philanthropy.com/. »» Be responsive to those you serve. The ever-changing world presents you with opportunities for refocusing and retooling at every turn. If the social ill you battle is no longer viable, step back and reconsider your clients’ needs and your organization’s options. CHAPTER 2 Embracing Fundraising with a Passion 29  »» Consider partnerships and new initiatives. Today traditional nonprofits with a long history and good backing are expanding their missions in ways you may not think of — sometimes partnering with other groups and sometimes adding to or revising their missions. For example, Goodwill Industries was originally designed to help physically and emotionally chal- lenged adults learn job skills and contribute to society through meaningful work. Their successful program grew, and in the process, the organization discovered that there was a market for the “gently used items” they offer. Today Goodwill Industries is a nationwide organization, and all their activities spring from the heart of its mission. When you’re considering the next steps, keep in mind that keeping the doors open or shut aren’t your only two options. Through creative partnerships and mission extensions, you may be able to add new energy — and attract new donors — in the midst of a challenging time. »» Ask the tough questions. Does your organization meet today’s needs? For instance, 50 years ago, an agency created to provide lodging to unmarried pregnant women was much needed. Today programs exist in many places to help young single mothers, and single pregnancy no longer carries the same social stigma it once did. An organization that asks itself the tough questions, such as whether what it’s doing is really necessary, and then changes based on the answers won’t be left in the dust when the world around it continues to grow. »» Be willing to change. Yep. You read that right. After you answer those tough questions about your organization, you have to be willing to make necessary changes. Especially in large organizations with vested power structures and bureaucratic bends, change is often resisted at the board table. But popula- tions, needs, and services change, so you must be willing to change with them. Doing so can protect your organization’s existence. »» Set deadlines. Especially when tough decisions are in the air, people may prefer to talk and talk — and talk — about what to do but never really get anywhere. You can set a deadline to establish the expectation that all this discussion will lead to action at a specific time. A deadline brings you to a conclusion and positions you to take the next step, which may be just what your organization needs. »» Put your best foot forward. People generally dislike crisis appeals. If you always cry wolf to bring in funding from various donors, sooner or later people are going to tire of the continual pleas. Instead, if you can show your donors that you’re part of a winning organization, a force that works for good in the world, you may not only keep their interest but inspire them to join you in your winning campaign. (See Chapter 8 for ways to show and tell your cause to donors.) 30 PART 1 Getting Started with Fundraising Maximizing Social Media Visibility Today a different kind of conversation is going on in the nonprofit world and around the globe. And it’s happening in real time, via short sentences, status updates, and tweets as people participate via laptops and smartphones. Social media — as these communication outlets are called — is a staple of everyday communication for people of all ages, providing organizations, funders, volun- teers, staff, and clients a way to connect easily and quickly all over the world. Social media is a broad term that describes the various technologies used to con- nect people who are like-minded across the globe. Facebook remains a major player on the social media platform stage, with more than 2.9 billion active users — half of whom log on every day. Another social networking site is LinkedIn (which has a more professional look and feel and is intended for business-to- business networking), and there are various industry- and organization-specific social networking options that service providers can customize for your personal use. Although the younger generations adopted social media right off the bat, today social media is a staple for all ages. In fact, Nielsen reports the fastest grow- ing Facebook demographic is women between the ages of 18 and 24 years (Gen- eration Z), while male users are between the ages of 25 and 34 years old (Millennials). Remember, Millennials volunteer and give in line with Gen X and Baby Boomers. Twitter is another voice in the conversation, offering organizations and individu- als a way to provide continuous updates to those who subscribe to their feeds. Participants trade small amounts of information as well as links to web pages for more details. What can your organization do with social networking technologies to share your passion and build your fan base? Here are just a few ideas, but for more detailed ideas and techniques, see Chapter 14: »» Create a Facebook page to post photos, events, announcements, and more to grow your online constituency in hopes of gaining more volunteers and potential donors. »» Use YouTube to share video clips, public service announcements, program pieces, and more with a large, public audience. »» Use Twitter to keep in quick contact and share updates with donors, staff, board members, and the public. »» Add a blog to your organization’s website to talk about issues your organiza- tion cares about. For example, an education organization can post links to CHAPTER 2 Embracing Fundraising with a Passion 31  stories about academic leadership, budget cuts, new education programs, or other opportunities donors care about. »» Social media giving statistics show that 30 percent of nonprofits use Instagram to raise money and awareness for their organizations. You can create a fundraiser for a nonprofit organization from an Instagram post. The fund- raiser will be visible in the post, and you can find a link to the fundraiser in your bio. The fundraising is active for only 30 days. However, you can extend the fundraiser duration or end it at any time. »» Don’t forget about TikTok. This social media site allows your nonprofit to get intimate with your followers because it offers a look into your organization. Videos of people are often the most engaging type of social media content. No matter which social media tool you use, the underlying message is all about connection. Social media enables you to stay in touch with all the people who care about your mission. Like an ongoing conversation, you can use your social net- working tools to share fun, interesting, or compelling stories with those who care. This connection helps others see the work you’re doing in the world, and if your message is successful, they’ll care more about becoming part of your effort. 32 PART 1 Getting Started with Fundraising  IN THIS CHAPTER »» Taking a look at the great fundraising debate »» Getting oriented to the ethics of fundraising »» Replacing fundraising myths with realities Chapter 3 All About Attitude: Fundraising Issues and Ethics T he happiest and most successful fundraisers love what they do. They believe in their causes, and an air of invincibility surrounds them. They may not be the biggest moneymakers on the block right now, but something inside of them recognizes that one day they may be. They have the power of belief, pride in their profession, and the inner conviction that what they do makes a difference. This chapter explores the issues that you may face when you first begin fundrais- ing. Not only do you have to combat the understandable dread of asking someone for money, but you have to battle against a kind of built-in stigma — deep in the unspoken attitudes that people in today’s society have about money — that comes with the territory. Fundraisers are reluctant to refer to themselves as salespeople, but that is exactly what they do. They’re selling the idea of supporting a nonprofit organization or its event to people with money. Have you heard this: “A person and their money are hard to separate.” People just don’t open their wallets or get out their checkbooks for every fundraising event. Even the most compassionate appeal can result in a lot of noes. CHAPTER 3 All About Attitude: Fundraising Issues and Ethics 33  Here you find out how to face some of those demons head-on and recognize that, for the most part, they’re simply misguided impressions that you may have about fundraising. Money isn’t the root of all evil; rather, the love of money at the exclu- sion of all else is the real problem. When you shine the light on the reservations that you have based on the myths, your hesitancies disappear like the illusions they are, and the positives of this profession illuminate your fundraising career. Inspiring or Selling: The Fundraising Debate Continues Part of the stigma of fundraising is a social issue. Even though many puritanical values are fading in today’s world, most people are still shy when it comes to talk- ing about religion and money. Taboos keep the reins on too much familiarity, preventing you from asking prying questions about another person’s finances and barring you from being so bold as to glance at another person’s checkbook or platinum credit card while you’re standing in the checkout line at the grocery store. The person who breaks past these outdated cultural norms can achieve phe- nomenal success as a fundraiser. In business, you don’t blanch when you read books that exalt the salesperson. A sale, after all, provides the lifeblood of a business. In sales, you may argue, you have an exchange of goods or services. In fundraising, on the other hand, you have an opportunity for people to walk the talk of their beliefs. In the following sec- tions, I explain how to balance your responsibility of asking for money with the negative public perceptions you may encounter and show you how sales skills and ideals really do fit together. Living with the stigma If fundraising is such a noble profession, where does the fundraiser’s black eye come from? Unfortunately, for some people, the word fundraising means “I’ll try anything to get your money.” This mentality taints the fundraising process for all fundraisers who then have to get past that stigma when approaching possible donors. For ethical fundraisers, doing whatever it takes to get money couldn’t be further from the truth. Instead, as an ethical fundraiser, you offer potential donors not the sale of a product or a palpable “warm fuzzy,” but rather the opportunity to join a group of people working in an area that you — and hopefully the donor — care about. You offer a chance to make a difference, an opportunity to “start where you are, use what you have, and do what you can,” as the saying goes. 34 PART 1 Getting Started with Fundraising  An ethical fundraiser doesn’t sell a lemon of an organization to a donor. So, to be an ethical fundraiser, you need to remember that »» The match needs to be right between the donor and the organization. »» The donor needs to have the means to give. (If the electric bill was a problem last month, major philanthropic giving is out of the question this month.) »» The value exchange that takes place has to be a good one for both parties because it’s the beginning of a long-term relationship, not a hit-and-run experience in which the fundraiser pockets the check and heads on down the road, grinning that gold-toothed smile. Combining sales and ideals Parts of fundraising are similar to and informed by being a good salesperson. For example, to be a good salesperson, you need to develop certain sales skills that enable you to connect with your potential customers and understand their needs. Fundraising builds on those skills and adds the sense of contributing toward a bigger purpose. Take a look at Table 3-1 to see how some basic sales skills relate to key activities in fundraising. TABLE 3-1 From Sales to Fundraising Sales Skills...... Applied to Fundraising Communicating with your customer Communicating your mission and passion to the donor Being a good listener Listening to your donor’s concerns and interests Helping a customer find the right fit Helping your donor find the right giving level and program Closing the deal Receiving the donation so it can start doing good right away Use tools of research to help you find the people who will care about your cause. (Find out more about these tools in Chapter 7.) If you identify people who have a real interest in your cause, approaching them isn’t selling them something they don’t want; it’s providing a connection they crave. Do some people work for organizations they don’t believe in? Sure. But if you’re reading this book and want to grow in your professional or volunteer ability to fundraise, I assume that you’re willing to make the investment of time and effort that you need to master the art of fundraising. Even if you’re not crazy about what you do right now, you can benefit by acquiring the skills you need for the day when you’re working for a cause that really ignites your passion. CHAPTER 3 All About Attitude: Fundraising Issues and Ethics 35 Adhering to the Ethics of Fundraising As a noble endeavor, fundraising has standards to help you determine the “right” ways to fundraise. If you’re new to the area of fundraising, perhaps involved for the first time through volunteer efforts, board membership, or a new develop- ment job, you may be starting to soak up some of the major ideas present in the nonprofit sector, which include ethics and accountability. Ethics is basically the study of what’s right and wrong and the development of a moral code that you can live by. Everybody in every walk of life at some time or another has to measure what they do for a living with what they feel is right and wrong. Some organizations focus on the ethics of fundraising. In the following sections, I introduce you to a few of these groups and explain how their work can help you better understand the ethics of what you do as a fundraiser. PAID BY COMMISSION: A HOT ETHICAL TOPIC One issue that professional fundraisers — those working in development for an organi- zation and those serving as consultants — continually argue about is whether a grant writer should be paid by commission. Industry ethics say no. In fact, the 501(c)(3) provi- sion says, “no part of the net earnings of which inures to the benefit of any private shareholder or individual.” In at least one interpretation, this phrase means that fund- raisers’ income should not be directly tied to the funds they raise. The argument for paying grant writers a percentage comes from the situations in which a small organization needs a good grant writer to secure major funds to keep the doors open. (Other things should be in place here, but I’ll stick with the percentages discus- sion.) If grant writers are paid a percentage after their grants are made, the organiza- tions can defer payment until they secure the funds and the grant writers are paid their “worth.” Although this argument continues and many consultants — especially for small organizations — do agree to work for percentages, professional fundraising organiza- tions consider this position unethical. In addition, this type of agreement negates the importance of the grant writer’s role, education, experience, and expertise. The Grant Professionals Association and the Association of Fundraising Professionals view both commission and percentage payments as unethical. 36 PART 1 Getting Started with Fundraising  Finding organizations with ethical standards So, who sets the ethical standards for fundraising, and how are they governed? A number of professional organizations have formed to help set the standards that guide ethics in fundraising. Table 3-2 offers a select group of organizations that you can contact to find out about membership and meetings in your area. TABLE 3-2 Ethical Standards Organizations Name Description Contact Information Association for AHP is an international association in 2550 South Clark Street, Suite 810 Healthcare healthcare philanthropy, developing Philanthropy (AHP) competency, professionalism, and Arlington, VA 22202 productivity of its members. 703-532-6243 www.ahp.org Association of With more than 240 chapters and 30,000 4200 Wilson Blvd., Suite 480 Fundraising members, AFP is a professional association Professionals (AFP) for fundraisers. Arlington, VA 22203-4416 703-684-0410 https://afpglobal.org/ Certified Fund CFRE International offers certification for 225 Reinekers Lane, Suite 625 Raising Executive fundraisers who demonstrate high standards (CFRE) of ethics, skills, and knowledge. Alexandria, VA 22314 International 703-820-5555 www.cfre.org Council for CASE is an international professional 1201 Eye Street NW, Suite 300 Advancement and organization that offers resources and Support of training opportunities to its members. Washington, DC 20005 Education (CASE) 202-328-2273 www.case.org Council on Council on Foundations is a member 1255 23rd Street NW, Suite 200 Foundations organization serving grantmakers and supporting high standards of ethical Washington, DC 20037 behavior. 202-991-2225 www.cof.org/ (continued) CHAPTER 3 All About Attitude: Fundraising Issues and Ethics 37 TABLE 3-2 (continued) Name Description Contact Information The Giving The Giving Institute (formerly the American 7918 Jones Branch Dr., #300 Institute Association of Fundraising Counsel) works for ethical principles in not-for-profit McLean, VA 22102 consulting agencies. Member firms are 312-981-6794 carefully screened to ensure their practices meet The Giving Institute standards. www.givinginstitute.org Independent Independent Sector has been a leading voice 1602 L Street NW, Suite 900 Sector in bringing together the leaders of more than 700 organizations and representing the Washington, DC 20036 nonprofit view to the U.S. Congress and 202-467-6100 the IRS. https://independentsector. org/ Philanthropy Philanthropy Roundtable brings together 1120 20th Street NW, Suite 550 South Roundtable donors, corporate giving officers, foundation trustees, and staff and offers meetings, Washington, DC 20036 guidebooks, and networking to members. 202-822-8333 www.philanthropyroundtable. org YOUR TRANSPARENCY INSPIRES DONOR TRUST Your donors have virtually infinite causes and organizations that they can choose to support, so what factors will influence them to donate to your organization? The ethics with which you operate are important — perhaps even more so as donors think care- fully about the charities they continue to support when economic stresses are high. As your donors decide whose name to write on the “Payable To” line, your transparency also helps build trust. In the United States, two organizations offer information to help donors explore the health of the organizations that they’re considering supporting. Visit these sites yourself to get a feel for the type of information provided, and add links from your website to these sites as a donor service to those who visit you: Charity Navigator (www.charitynavigator.org) is an independent evaluator that reports on the financial health of America’s largest charities. Even if you don’t qual- ify as one of the big organizations that donors may be looking for, you can use the 38 PART 1 Getting Started with Fundraising  information on Charity Navigator to find out how large, successful organizations are running their agencies. (You can learn a lot from other organizations’ success stories.) Candid GuideStar (www.guidestar.org) gathers extensive data on nonprofit orga- nizations in a large, comprehensive database that donors can use to guide their gift decisions. They can find information on missions, programs, goals, success stories, leadership, and more — all for free. Check your own listing on GuideStar regularly to see how your organization looks in the public eye. Familiarizing yourself with the fundraiser’s credo As you continue thinking about ethical and responsible approaches to fundrais- ing, you may want to familiarize yourself with the following industry standards: »» “A Donor Bill of Rights”: Developed by a number of professional organiza- tions (including The Giving Institute, AHP, CASE, and AFP), this document gives you an idea of the type of exchange valued in an ethical relationship between donor and organization. You’ll find the document at https://afpglobal. org/donor-bill-rights. Notice how many of the items have to do with clear, honest communication between parties. »» “Model Standards of Practice for the Charitable Gift Planner”: Established by the National Committee on Planned Giving (NCPG), this document details the practices that ethical and charitable gift planners should follow. Find a copy of this document at https://charitablegiftplanners.org/ standards/model-standards-practice-charitable-gift-planner. WHAT ABOUT ETHICS IN CYBERSPACE? The reality of fundraising online brings with it new challenges in the ethical domain. Using social media, web pages, blogs, and more to increase visibility with your constitu- ents may be a good thing, but you may need to take extra pains to make sure you’re as transparent and forthcoming as possible. Individuals who overstate results, create new personas, or otherwise use the relative anonymity of the web to veil real identities and intentions have no place in ethical fundraising. As an organization seeking to serve the (continued) CHAPTER 3 All About Attitude: Fundraising Issues and Ethics 39 (continued) public good, you need to insist on ethical practices for your online connections. Here are a few suggestions for how to do so: Be transparent about your mission, methods, funding, and allocations. Provide site visitors with the information they need about you, your organization, your staff, and your plans. Only use secure, vetted sites if you choose to fundraise online. Provide donors with regular status reports to demonstrate your commitment to accountability. Moderate any open forums or discussion boards available on your site. Respond quickly to any donor or potential constituent’s concern regarding your online practices. Breaking Down Fundraising Myths This section exposes a few myths of fundraising that may be holding you back from top-dollar fundraising. Building on the ideas that fundraising is a noble profession and that your passion for the cause is guided by professional ethics, you need to get rid of some of the attitudes that may get in your way. The atti- tudes reflected in the following anecdotes aren’t unethical; rather, they’re close calls you have to make that depend on how you view what you do and how clearly you understand your priorities. Following each myth, I propose some ethical guidelines that can help you maneuver smoothly and ethically through each type of situation. Myth 1: It’s all about the money Some people say fundraisers care only about money, while others think fundrais- ers care about helping others. Which is true? Making money is the whole point You have a lunch appointment with Dr. M. You’ve spoken on the phone with the doctor twice in preparation for this face-to-face meeting, and both times Dr. M. sounded pleasant but cautious. You review your notes from your donor files as you drive to the doctor’s house. As you pull into the landscaped drive, you return the donor file to your briefcase — there’s no need for the doctor to see your resource materials as the two of you drive to the restaurant. 40 PART 1 Getting Started with Fundraising At the door, Dr. M. smiles and extends a hand. You introduce yourself and then mention that you like the doctor’s pantsuit. You’re met with a wry gaze. Perhaps the clothing comment was too much, you think. Oh, come on, the doctor’s glance tells you. We both know this is all about money. What can you do to show Dr. M. otherwise? Sharing concerns and a willingness to help is the main goal Instead of being all about money — seeing the donor as a dollar amount — fundraising is really about the relationship you create with another person. It’s a hand extended, saying, “Come join our cause.” Not everyone shares your concerns about recycling, music, or the college of your choice. Some people care more about political activism, fighting cancer, finding homes for the marginalized, or getting runaway teens home. When you find someone who shares your heart and welcomes your cause, you have a potential ally. With some good communication from you and the right conditions for the giver (including a link to your cause, interest in what you’re doing, and the ability and willingness to give), helping is a natural next step. Find the right connection with Dr. M. — one that benefits the doctor as well as your cause — and you can easily demonstrate that this relationship is about much more than money. Myth 2: You lie to get what you want Sometimes you may be tempted to exaggerate to try to get to your goal. In fund- raising, insincere tactics don’t get you far in the long run. Is a short-term leap in honesty worth a long-term donor relationship? See what you think as you read this anecdote. A white lie for a good cause is okay You’re with a fellow board member at their house, sitting in on a personal call with a major donor. The conversation isn’t going as well as you’d hoped. The potential donor is firing questions at you left and right about specific uses of their gift and about guarantees that it will be used the way they want it to be. The board was specific about where lead gifts would go, but this donor has a particular interest in mind and wants a personal guarantee that the money will go there. You glance at the board member, who says nothing. You decide to fudge a little, hoping you can figure out what to do later. “Okay,” you say, finally. “If you’re willing to agree to this lead gift today, we’ll let you choose the designation.” CHAPTER 3 All About Attitude: Fundraising Issues and Ethics 41  What will you say to the board member when you get back out to the car? How will you handle the situation when the donor realizes the truth about the fund allocation? Slick may sell, but authenticity wins the day The truth is that fundraising is actually a long-term activity. A firm hold on your ethics and priorities, along with a clear statement from your board about what to accept and what to resist, helps you fight the temptation to give in when a gift that you’ve been pursuing is right in front of you and is yours for the taking — if you just bend a little. The right thing to do with Mr. Major Donor in the preceding situation is to be honest about what you can and can’t do; if you think the board would make an exception, offer to ask, and get back to the donor the next day. Myth 3: Your donor owes the world something Do you go after donations with the attitude that people with money owe you something? Or do you try to build a mutually beneficial relationship where you and the donor help each other? It’s about time the rich started giving to the poor Ms. E. has been the richest person in town since inheriting the family’s fortune and has a reputation for being miserly. Other fundraisers who have approached Ms. E. have come back with their tails between their legs. When you arrive at this potential donor’s office, an assistant informs you that Ms. E. is tied up in meetings all afternoon and won’t be able to meet with you after all. You tell the assistant that you’ll wait. You sit there, stewing about Ms. E.’s miserly ways. It’s about time this rich penny-pincher gives something back, you think. It’s not right to sit on all that money and do nothing with it. What do you say when Ms. E. opens the door after the current meeting adjourns? Does the look on your face show your feeling of entitlement? How much respect have you shown for Ms. E. by not rescheduling your appointment? 42 PART 1 Getting Started with Fundraising The best donations benefit both the giver and the organization People give money for all kinds of reasons. Maybe they want to be part of your organization because of a good experience they once had with the same type of organization. Maybe your cause is good for their business. Maybe they want the recognition a named donation presents. Maybe they’re trying to prove something to their parents. It’s not your job to question motives. It’s your job to give donors the chance to find out what your organization does. Respect Ms. E.’s right to choose whether your organization is a mutual match. If it’s not, say thank you, anyway. A rejection now could mean a match in the future. Thank any potential donors for their time. CHAPTER 3 All About Attitude: Fundraising Issues and Ethics 43  IN THIS CHAPTER »» Getting familiar with the case statement and its main purpose »» Writing a compelling case statement step by step »» Beefing up an outdated case statement »» Sharing your case statement in print and electronic format Chapter 4 Winning with Words: Your Case Statement I f you’re new to fundraising, chances are that you’re also new to the case state- ment. Your organization’s case statement is an all-important vision document that spells out the major aspects of your organization’s story, from your mis- sion to your program goals and objectives, to board members, staff, and key vol- unteer leaders. Think of your case statement as the fabric you use to create all your other messages — promotional pieces, letters to donors, grant proposals, and more. You may not be — or have any intention of becoming — an attorney, but there’s something to be said for being able to make your case. And when the economy is pitching and swaying around you and you’re trying to stay afloat (or, in better financial times, trying to navigate the squalls of abund