The True Financial Impact of Philanthropy

We have done a study recently on the impact of fundraising on our institution.  This was done by asking the question, "How much would a department have to raise to add $10,000 net profit to their bottom line?" 

Here are the calculations:

What is your hospital’s (or other department, college, institute) margin? Our operating margin has been 1.7%.  Using 1.7%, that means that a $10,000 gift to the foundation is equivalent to the Hospital having to bill out $588,235.29 ($10,000 / .017) to achieve the $10,000 net profit.

However, there’s another twist to this equation. We don’t collect 100% on our billings. Actually, the number is more like $.41 for every $1. Therefore to realize the actual $588,235.29, we would really need to bill out $1,434,720.23 ($588,235.29/.41)!

Therefore, that $10,000 gift is equivalent to having to bill out in excess of 1.4 million dollars. What an impactful fact for the donor and the Foundation. Use this rationale all the time in solicitations.

Take away - EVERY dollar given has a huge impact on the beneficiary institution. 

Make It Rain!

First, consider this... are you as a fundraiser, also a philanthropist?  We have often been taught that we are "first to give our own gift, before we ask someone else to give."

Are we so moved by the cause for which we are fundraising that we are glad and excited to support it?  Or, do we feel obligated or under compulsion?

Please consider your cause.  Is it huge?  Does it provide beautiful solutions?  If your cause is well articulated and if it is truly worthy, I believe it will stir you to give.  Givers are unique, rare people (as shown by the fact that only 2.6% of Americans give to charity).  Be one of them.  Find or develop your cause to move you, to touch your heart.  I encourage you to give generously.

Most Important Hire

Have you ever thought what personnel you would need in an ideal shop?  Say you have 10 employee spots.  What types of job descriptions would you need?

You be the Chief Development Officer.  Next what about hiring 3 major gift fundraisers?  A good major gift program is essential for fundraising.  It is the most effective way to raise money according to most benchmarking services.  Next I would want an estate planning professional, then I would look for 2 in the annual fund area to develop and implement our annual fund and to manage a "signature" special event or two. 

What are we up to in our count?  7 in our ideal shop!  I would like to hire two executive assistants - to manage the administrative, the filing, data entry, receipts, mailings, publications, so these people would really have to be excellent quality people.  They are like having communications people as well as administrative professionals.  One BIG part of their job would be to call potential donors for appointments.  They would help our major gift officers to stay in the field where they should be!

What about grant writers, prospect researchers, web design and communications?  I would like to have the latter in our ideal shop.  The first two could be hired as vendors, consultants, etc. 

So that gives us at least something to ponder, doesn't it?

Think and act from abundance, not lack!

Making the Appointment

Keys to Appointment Success:
1. Call a lot! (schedule time in your day just for calls for appointments)
2. Make a routine for your day/week.
3. Think about what to say in order to be most appealing and compelling.
4. Use letters to predispose prospects to say yes for appointment
5. Use natural partners
6. Don’t jibber jabber! (as the Judge says on Boston Legal)
7. Build relationships – Fundraising is about relationships not just about the money.
8. Listen and pay attention for important phrases. Write them down and don’t forget them.
9. Simple measurement – How many times have you personally sat down one on one and asked for at least $1,000?

More to come about appointments...

Fundraising Basics

This is my first attempt at blogging. This blog will be my thoughts on the profession of fund raising for non-profits. I hope you will enjoy this and that you will feel free to communicate with me as to your issues and advice.

Let's get started...

Fundraising - the basics
The most effective way to raise money for your organization is to

1. Determine why someone should support your organization with their time, influence and charitable contributions. This is called "the case for support" (more on this later).
2. Figure out who your constituents are. Who benefits from your mission and who are those people that support your cause financially? List them.
   
3. Write your "case" with the aforementioned people in mind.
4. Have a formal meeting with those individuals, corporations and foundations that know and like your work, your people and/or your general cause and who have financial means in which to give. These concepts are called "affinity" and "capacity".
   
5. Build solicitation materials
6. Build a complete file on your probable donors based upon moves management.

Am I making sense? If these terms are unfamiliar then hire a consultant! :-) My email address is horne.ja@gmail.com. I would love the opportunity to visit with you about your specific questions.