Fundraising Principles and Practice

Figures and Tables xvii Preface xxiii Acknowledgments xxvii The Authors xxix 1 Introduction to the Nonprofit Sector 1 Objectives 1 Introduction 1 A “Third” Sector 2 A Tax-Based Definition 6 A Structural-Operational Definition 11 Size and Economic Significance of the Nonprofit Sector 13 Sources of Income 16 Philanthropic Income 17 Summary 20 Discussion Questions 22 References 22 2 The Development of a Profession 25 Objectives 25 Introduction 25 Early American Fundraising 26 The Great Philanthropists 29 Key Historical Figures 30 Toward a Profession 32 Looking to the Future 40 So Who Are Our Fundraisers? 44 Retaining Fundraisers 45 Summary 48 Discussion Questions 48 References 49 3 The Ethics of Professional Fundraising 53 Ian MacQuillin Objectives 53 Introduction 54 Ethics 101 55 Fundraising Ethics 60 Applying Normative Fundraising Ethics in Practice 77 Summary 82 Discussion Questions 84 References 85 4 Individual Giving Behavior 89 Objectives 89 Introduction 89 Who Gives? 90 Motivation 94 Self-Interest Versus Altruism 96 Emotions as Motives 98 The Role of Empathy 100 The Role of Values 102 Modeling Donor Behavior 103 Attention 103 Perception 106 Emotion 108 Knowledge and Memory 112 Attitudes 116 Donor Decision Making 123 Feedback 126 Alternative Models 128 Summary 130 Discussion Questions 131 References 132 5 Social Influences On Giving 141 Objectives 141 Introduction 142 A Social Giving Model 142 Societal Environment 143 Social Environment 144 Summary 161 Discussion Questions 162 References 163 6 Fundraising Planning: The Fundraising Audit 167 Objectives 167 Introduction 167 A Planning Framework 168 The Fundraising Audit 171 Analytical Tools 185 Fundraising Metrics 195 Conducting an Audit in a Small Nonprofit 196 The SWOT Analysis 197 Summary 199 Discussion Questions 199 References 200 7 Fundraising Planning 201 Objectives 201 Introduction 201 Setting Fundraising Objectives 202 Key Strategies 206 Overall Direction 207 Market Segmentation: Segmenting Individual Donor Markets 209 Segmenting Business Markets 215 Targeting 217 Positioning Strategy 219 Branding 222 Case for Support 232 Tactical Plans 233 Budget 233 Scheduling 235 Monitoring and Control 235 Selection of an Appropriate Planning Framework 236 Summary 236 Discussion Questions 238 References 238 8 Articulating the Case for Support 241 Objectives 241 Introduction 241 Storytelling 255 Summary 260 Discussion Questions 261 References 261 9 Assessing Fundraising Performance 265 Objectives 265 Introduction 265 Aggregate Fundraising Ratios 266 Conducting a Fundraising ROI Analysis 273 Other Performance Measures 278 Benchmarking Fundraising Cost 281 Sector Benchmarking Initiatives 284 Taking Investment Decisions 289 Accounting for Risk 300 Making the Case for Investment 300 Summary 301 Discussion Questions 302 References 303 10 Direct Response Fundraising 305 Objectives 305 Introduction 305 Cornerstones of Direct Response 307 Acquisition Planning 309 Setting Recruitment Objectives 310 Segmentation 311 Profiling 313 Targeting 314 Media Selection and Planning 315 Two-Step Campaigns 336 The Nature of the Fundraising Message 336 Fulfillment 344 Budgeting Control and Evaluation 344 Summary 346 Discussion Questions 347 References 347 11 Digital Fundraising 349 Adrian Sargeant and Steven Shattuck Objectives 349 Introduction 349 Key Sources of Information 350 A Digital Fundraising Mix 351 Search Engine Optmization (SEO) 352 Digital Public Relations 362 Display Advertising 363 Opt-In Email 368 Viral Marketing 376 Website Design and Optimization 382 Giving Page Design 383 Mobile 390 Conclusion 395 Discussion Questions 395 References 395 12 Social Media 397 Steven Shattuck and Adrian Sargeant Objectives 397 Introduction 397 The Major Players 399 Other Social Networks 406 Developing a Strategy 407 Formulating a Content Strategy 410 Integrating Your Approach 413 Leveraging Fans, Followers, and Influencers 418 Algorithms and Getting Your Content Seen 421 Measuring the Effectiveness of Your Social Media Efforts 424 Safeguarding Contacts 426 Summary 426 Discussion Questions 427 References 427 13 Donor Retention and Development 431 Objectives 431 Introduction 431 What Do We Mean By Loyalty and Retention? 433 Recruiting the Right People 435 Building Donor Loyalty and Retention 438 Planning for Retention 446 Relationship Fundraising 452 Calculating Donor Value 459 Segmenting for Growth 467 Loyalty Metrics 472 Summary 474 Discussion Questions 474 References 475 14 Major Gift Fundraising 479 Robert F. Hartsook and Adrian Sargeant Objectives 479 Introduction 479 Characteristics of Major Givers 481 Motives of Major Givers 483 Major Donor Recruitment 490 Summary 508 Discussion Questions 509 References 509 15 Bequest, In Memoriam, and Tribute Giving 513 Claire Routley and Adrian Sargeant Objectives 513 Introduction 513 Estate Planning 517 Who Leaves Bequests? 523 Why Do People Give? 524 Legacy-Specific Motives 530 Soliciting Bequests 534 Talking the Language of Bequest 538 Stewarding Bequest Donors 540 Systems and Processes 541 In-Memory Giving 542 Summary 546 Discussion Questions 546 References 547 16 Planned Giving 551 Matt Beem and Adrian Sargeant Objectives 551 Introduction 551 Planned Giving Vehicles 554 Donor Motivation 565 Soliciting Planned Gifts 567 Planned Gift Donor Stewardship 570 Planned Gift Donor Appreciation 571 Managing the Planned Giving Function 573 Summary 575 Discussion Questions 575 References 576 17 Corporate Giving and Fundraising 579 Objectives 579 Introduction 579 Why Do Corporations Give? 582 Forms of Business Support 587 Who to Ask? 598 The Benefits and Pitfalls 602 Fundraising Planning 603 Summary 610 Discussion Questions 611 References 612 18 Grant Fundraising 617 Objectives 617 Introduction 617 Definitions and Categories 618 Foundation Funding Trends 620 Preparation and Planning 622 Foundation Research 624 Prioritizing Effort 626 Initial Contact 626 The Application/Proposal 627 Theory of Change 636 Building Relationships 637 The Grant Cycle 638 International Funding 641 Summary 643 Discussion Questions 644 References 645 19 Fundraising Events 649 Karin L. Cox and Adrian Sargeant Objectives 649 Introduction 649 Summary 674 Discussion Questions 674 References 675 20 Managing Fundraising Volunteers 677 Walter Wymer and Adrian Sargeant Objectives 677 Introduction 677 Formal Versus Informal Volunteering 680 Volunteer Recruitment 685 Retention Strategies 697 Program Evaluation 704 Summary 705 Discussion Questions 706 References 706 21 Great Fundraising 711 Objectives 711 Introduction 711 What Drives Fundraising Success? 713 Leadership Styles in Fundraising 717 Leadership and Great Fundraising 725 The Focus of Great Fundraising Leadership 727 Philanthropic Culture 732 A Final Word on Donor Centricity 738 Discussion Questions 740 References 740 Name Index 745 Subject Index 755