Expert answer:Implementation and funding plans
Expert answer:Your program has been designed and is now ready to be implemented. For this week, you will be submitting an implementation plan. This should include the long-term goals you hope to achieve with your program and the specific objectives of each goal. You will also need to discuss possible ways to collect data relevant to each objective to show how the goal is progressing. In addition to the implementation plan, discuss some possible ways your program could be funded. Include specific funding sources you feel would be a good fit for your program and why. Research and include funding in your geographic area if possible. For more ideas on funding your program, refer back to Module 03 and see the Funding Development chapter in Developing Nonprofit and Human Service Leaders (Watson & Hoefer, 2014).Submit your implementation plan and funding resources in a 1-2 page paper. Cite any resource information in APA format.ReferencesWatson, L. D. & Hoefer, R. A. (2014). In C. Forrest (Ed.), Funding development. Developing nonprofit and human service leaders: Essential knowledge and skills (pp. 123-134). Los Angeles: SAGE Publications, Inc. below is what my program is focusing on Program Case managementCase management is characterized by identifying the affected elderly people, assess the available healthcare services, develop a plan for the identified participants, putting in place an action plan for care and results monitoring. This involves education, Intervention, Community Health and Intervention. ( United States. Congress. House. Select Committee on Aging. 17-19) Disease managementThis section defines the chronic disease management as a proactive, organized, multicomponent approach to delivery of healthcare to elderly people in the society; particularly those with chronic diseases. This involves weight management, diet intervention and clinical benchmarks. OutputThis section is made up of activities and events involving reach. These events are carried out by the selected staffs so as to be able to come up with the intended desire or characteristic. This activities and events of reach involves home visits, screening, patients insured, health Insurers, streamed access and care and social services. Moreover, it involves Collaboration with a system of community health, govt, funders and policy makers. Short-term, middle-term and long-term outcomes.This section highlights the results expected from the program after actions of capacity building, resource mobilization, treatment and management of chronic conditions among the elderly persons. Short-term outcomes describe those results that are immediately realized such as improved psychological outcomes, improved follow-up or provider services and initiatives to change community outcomes and factors of micro-level nature. On the other hand, middle-term outcomes are those results that are not immediately realized but again they don’t take long time to be realized. They include designing models for efficient and effective case management. This section also involves coming up with models for efficient and effective response to elderly health and replication of this models. Furthermore, long-term results are outcomes that include healthy elderly people hence objectives met, Sustainable partnerships involving the community and Realized Changes institutional and Cultural norms in the society. ( Institute of Medicine (U.S.). Committee on Living Well with Chronic Disease: Public Health Action to Reduce Disability and Improve Functioning and Quality of Life. 7-10) ReferenceInstitute of Medicine (U.S.). Committee on Living Well with Chronic Disease: Public Health Action to Reduce Disability and Improve Functioning and Quality of Life. Living well with chronic illness : a call for public health action. Washington D.C: National Academies Press, 2012. Print. United States. Congress. House. Select Committee on Aging. Trends in long-term care : adult day care and other options in Michigan : hearing before the Select Committee on Aging, House of Representatives, Ninety-eighth Congress, second session, September 22, 1984, Warren, MI. Washington: U.S. G.P.O, 1985.
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Fund Development
11
INTRODUCTION
This chapter will present the basics of fundraising, including the annual campaign, direct
mail, special events, major gifts, and planned gifts. The concept of moving donors from
annual giving to major gifts and planned gifts will be presented. This chapter will also
explore donor motivation and present a fundraising strategy based on the concept of providing donors with opportunities rather than approaching fundraising as a “begging”
activity.
Begging is not a strategy to raise funds. The alternative to begging for funds is to have a
well-developed fundraising program. Even if the organization employs a professional fundraiser, the administrator is still the chief fundraising officer and, as such, will develop professional fundraising skills or risk becoming the chief beggar for the organization. Securing
resources for the organization is ultimately the responsibility of the board of directors, but
it is the administrator’s responsibility to develop and oversee a well-developed fundraising
program.
Effective fundraisers work from a strategic fundraising plan that is long term, has specific goals, and uses a variety of fundraising methods and techniques. The organization’s
financial strength can be developed and maintained only through a fundraising strategy
that is diversified by using many different fundraising approaches appropriate for their
various categories of donors. Fundraising must be approached as any other major project
in that it requires the administrator to develop a plan. The planning process for fundraising includes the same steps as any other planning process. As the administrator, you must
set goals, allocate resources, develop action steps and timelines. and then evaluate the
process.
There are many “truisms” in fundraising, but the one most important to remember is that
“people give to people, not to organizations.” This is another way to say that fundraising is
really “friend-raising.” The people that will give money to your organization are those who
share a passion for the mission of the organization and who trust that their money will be
used wisely. It is the responsibility of the administrator to develop and nurture relationships
that will financially sustain the organization.
Another truism is that people will not give anything to meet your agency needs, but
they will give when presented with the opportunity to invest in an organization that will
make a difference in the lives of others. People will give when they think they can make
a positive difference in something they care about. At whatever level of fundraising activity, your approach should be to present opportunities that will make a positive impact in
the lives of the people your organization serves and not to present the “needs” of the
agency.
123
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LEADERSHIP SKILLS
You may need funds to hire a new counselor, but the fundraising approach should be to
secure funds to serve more clients. You must tell the potential donor why the clients need
this service and what difference it will make in their lives if the services are provided. The
approach should NOT be that your organization needs a new counselor.
Remember that people want to give to successful causes. You want to give the donor not
only the opportunity to give but also a reason to contribute to a cause that will support success. Your appeal is not that your organization has great needs, but that it is successful in
meeting the needs of your clients.
Before we explore the many levels of activities in a fundraising program, we will look at
the factors that motivate people to give.
DONOR MOTIVATION
Why do people give? Often, you will hear that most people give a donation because they will
get a tax break. It is very seldom that tax donations are the major reason for making a donation.
A new executive director was excited to learn that an elderly couple had decided to leave
their 1,000-acre ranch to the organization in their will. The executive went to visit the
couple and raised the possibility that they could use a planned giving vehicle to go ahead
and make their gift to the agency and at the same time enjoy a tremendous tax advantage, plus increase their income for the rest of their lives. In fact, through this gift, the
couple could be rich. After listening politely, the elderly woman said, “Young man, I don’t
want to be rich. I want to go to our ranch and hunt birds!” It is important to know what
motivates a donor. In this case, it was certainly not a tax break or more income.
So why do people give?
In a review of over 500 articles on charitable giving, Bekkers and Wiepking (2011) found
eight mechanisms as the most important forces that determine a person’s decision to give.
These are (1) awareness of need, (2) solicitation, (3) costs and benefits, (4) altruism, (5) reputation, (6) psychological benefits, (7) values, and (8) efficacy.
People will give only when they are interested and involved in your cause. Of course, there
are different levels of giving. The new donor, responding to a direct mail piece, will be very
different from a board member donor with years of experience with the organization. People
will respond to different kinds of appeals because they have different reasons. So, why do they
give? Giving behavior is just as complex as any other behavior.
In his book Tested Ways to Successful Fund Raising, George A. Brakeley, Jr. (as cited in
“8 Rules of Thumb,” 2012) wrote that virtually every fundraising campaign and development program depends on nine factors in motivating donors to support their organization:
1. The right person or persons ask them, at the right time, and in the right circumstances.
2. People have a sincere desire to help other people.
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Fund Development
125
3. People wish to belong or be identified with a group or organization they admire.
4. Recognition of how vital their gifts can be satisfies a need for a sense of personal power
in many people.
5. People have received benefits—often, personal enjoyment—from the services of the
organization and wish to support it.
6. They “get something” out of giving.
7. People receive income and estate tax benefits from giving.
8. People may need to give; that is, altruism might not be an option but a “love or perish”
necessity for many people.
Source: 8 rules of thumb when soliciting prospects. (2012, May 23). The NonProfit Times. Retrieved from http://www
.thenonprofittimes.com. 2012 The NonProfit Times Publishing Group, Inc.
Whatever their other motivations, people will give only when they are interested and
involved, and when they are asked. To determine how to ask for a gift, we must know where
our donors fit on the “donor pyramid.”
THE DONOR PYRAMID
Fundraising professionals often use the donor pyramid as a way to conceptualize the fundraising program (see Figure 11.1). Each level in the pyramid builds on the level beneath it. For
example, direct mail solicitation is appropriate to attract new donors to your organization, but
once they have responded with even a small gift, your goal is to move them up to the next level
of the pyramid. You want your new direct mail donors to become major givers. Of course,
some donors will always be small givers or even stop giving to your organization, but most of
your future major gift donors of tomorrow are your small gift givers today. Also, remember
that all those small gifts add up and are very important to your overall fundraising plan.
The Association of Fundraising Professionals (AFP) Fundraising Dictionary (2004)
describes the donor pyramid as:
A diagrammatic description of the hierarchy of donors by size of gifts. The diagram
reflects that: as the size of donations increases, the number of donations decreases; as
the number of years a donor is asked to renew increases, the number of donors
decreases; as campaign sophistication progresses from annual giving to planned giving,
the number of donors decreases; as donor involvement increases, the size of the donor’s
contribution increases and the response to campaign sophistication increases.
As you work through this chapter, refer back to the donor pyramid. In a sophisticated
fundraising program, donors will be treated differently depending on where they are on the
donor pyramid. Donors will move up the donor pyramid through involvement with the organization and through receiving personal attention from the board and staff of the organization. Notice that, as you move up in the pyramid, the fundraising techniques become
increasingly more personalized.
What seems to be a simple and obvious truism is, “No one gives at any level unless they
are asked!” As uncomfortable as it may be at times, eventually someone has to ask for the
gift, but, if you and your board believe in your mission and truly believe you are giving others
the opportunity to participate in your important work, then the “ask” will be less difficult.
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126
LEADERSHIP SKILLS
Planned
and
Deferred Givers
Major Givers
Annual/Recurrent Givers
Occasional Givers and
Event Participants
Figure 11.1 Sample Giving Pyramid
WHERE’S THE MONEY?
There is a lot of charitable gift money out there. American individuals, estates, foundations,
and corporations gave an estimated $298.42 billion to charitable causes in 2011, according
to Giving USA (Hoffman, 2011). Why do individuals, foundations, and corporations give so
much? What motivates a person to give?
“People are motivated to give because they value the cause, whether it is religion, education, health care, or international relief,” said Henry (Hank) Goldstein, chair of Giving USA
Foundation. “Charitable giving above 2 percent of gross domestic product is one demonstration of our nation’s renewed commitment to the good works done by charities and
congregations.”
—AAFRC Trust for Philanthropy/Giving USA, 2004 (Hoffman, 2011)
Notice in the charts below that 73% of donations come from individual donors. While
corporate, foundation, and planned giving are all important elements of a fundraising program, it is the individual donor that gives the most every years. It is critical to bring new
individual donors into your organization.
Look at Figure 11.3, which shows types of recipients. Only about 12% of the funds
donated go to human services activities. It important for you to know what other types of
organizations are competing for the charitable dollars available.
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Fund Development
127
Corporations
$14.55
5%
Bequests
$24.41
8%
Foundations
$41.67
14%
Individuals
$217.79
73%
Figure 11.2 2011 Contributions: $298.42 Billion by Source of Contributions (in billions of dollars—
all figures are rounded)
Source: 2012 Giving USA Foundation.
To individuals
$3.75
Foundations
1%
$25.83
Environment/ 9%
animals
$7.81
3%
International
affairs
$22.68
8%
Arts, culture,
and humanities
$13.12
4%
Public-society
benefit
$21.37
7%
Health
$24.75
8%
Human
services
$35.39
12%
Unallocated
$8.97
3%
Religion
$95.88
32%
Education
$38.87
13%
Figure 11.3 2011 Contributions: $298.42 Billion by Type of Recipient Organization (in billions of
dollars—all figures are rounded)
Source: 2012 Giving USA Foundation.
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128
LEADERSHIP SKILLS
THE BASICS OF FUNDRAISING
Annual Campaign
The annual campaign consists of the fundraising activities that are conducted for the purpose of supporting the organization’s annual operating budget. Even though these funds will
be used for the organization’s operating budget, your approach will focus on the services to
be provided, not on the need for things like staff raises or paying the electric bill. The operating expenses support the services your organization provides. Ask your donors to help serve
your clients. Generally, the largest number of donors will be giving to the annual campaign.
Some organizations may not think of their many and diverse fundraising activities as an
“annual campaign,” but whether it is thought of in these terms or not, it is in effect the annual
campaign for the organization. The approaches used in the annual campaign may include
direct mail, phonathons, or special events such as golf tournaments or galas.
The defining feature of annual fund activities is that they are activities intended to raise
gift income, every year. It is expected that you will approach the same donors every year and,
sometimes, several times within the same year. Funds donated to the annual campaign are
intended to support operational costs such as salaries, supplies, utilities, and client needs. The
purpose is to support any part of the organization’s operation that requires continuous and
regular support.
Most donors will come into your organization through the annual campaign. It is rare that
a person’s first gift to the organization will be a major gift. More likely, those who become
major donors are those who have been consistent annual campaign donors.
Direct Mail
You probably know about direct mail fundraising from your personal experience. Direct
bulk mail is used to ask millions of people for money, and most people receive solicitations
in their mail on a regular basis. What rate of return should you expect for your direct mail
campaign? Typically, the response is somewhere in the range of 1%. Even though the return
is small, it is an economical way to get your message before thousands of potential donors
and a key strategy in bringing new people into the bottom of your pyramid. The typical
direct mail package includes the carrier (outside), the letter, a reply device, and a return
envelope.
The carrier or outside envelope should be designed with one objective in mind: to get the
recipient to open it. If the piece goes into the trash, your chance of getting a donation is zero.
The goal is to make the pieces look as much as possible like a personal letter and to make it
look different from other solicitations in the mail box that day. Ideally, the envelope could be
hand addressed, but since direct mail is a strategy of large numbers, this is rarely possible.
Pre-cancelled bulk mail stamps give a more personal look than the standard postal indicia
used on most bulk mail. The other strategy is to use an envelope other than the standard
“number 10” business envelope that many fundraisers refer to as “the number 10 ugly.”
Choose an envelope that is smaller, larger, or a different shape. You may also want to consider
using color or a see-through window to peak your potential donor’s interest.
Once you get the potential donors to open the letter, your task is to capture their attention
long enough to consider making a gift to your cause. The task here is not to write a scholarly
piece or to impress anyone with your vocabulary. The letter should strike an informal tone
and be easy to ready and understand. Kim Klein (2000) proposes a set of principles to remember as you develop your letter:
1. People have a very short attention span. Sentences should be short and take no more
than six to fifteen seconds to read.
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Fund Development
129
2. People love to read about themselves. The letter should refer to the reader at least twice
as often and up to four times as often as it refers to the organization sending it. For example,
“You may have read . . . ” or “If you are like me, you care deeply about . . . ”
3. People must find the letter easy to look at. The page should contain a lot of white space
and wide margins, and be in a clear and simple font. Paragraphs should be short, no more
than two or three sentences. You should feel free to use contractions (won’t, you’re, can’t,
we’re) as this will add a more informal tone to your letter.
4. People read the letter in a certain order. First, they read the salutation and the opening
paragraph, but then, no matter how long the letter is, they read the closing paragraph and
then the postscript. Only a small number of people will read the entire letter.
The opening paragraph of your letter is critical. It must capture the attention of your readers and make them want to read on. Remember the truism that people will not give anything
to meet your agency needs, but they will give when they have an opportunity to invest in a
service that is of interest to them. Your letter must be about the people you serve, not the
needs of your organization. Also, people do not relate well when you talk about the thousands
of people you serve. Your letter should tell the story of one person helped by your organization and how this potential donor can make a difference in the life of someone else.
How long the letter should be is always a debate. Our natural instincts tell us that the
letter should be short and to the point, but many fundraising consultants counsel that long
letters are better and claim that a two-page letter will get a better response than a one-page
letter, and that even three- and four-page letters will often outperform a shorter letter. There
are many theories about why you shou …
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