3) Everyone in an organization is involved in the fundraising process. Describe, in detail, five key principles and practices of effective fund development for arts organizations.

This is from the class:)

6: FUNDRAISING

Definition: The process of soliciting and gathering contributions as money (or other resources) by requesting donations from individuals, businesses, private foundations and public agencies

• All members of an organization are responsible for fundraising in some capacity
  • Development department/Board/Volunteers are some more key players, but ALL involved are important
• Need a Case for Support: tells potential donors what the campaign is about, how funds will be used, and why organization should be supported
  • Case statement: basis for brochures and grant applications, keeps members on the same page

7 SOURCES OF FUNDRAISING

1. Individual Contributions
   1. Largest percentage of donations
   2. Many methods: annual fund drives, membership programs, special events
   3. Can spread good word about organization, small gifts are unrestricted
2. Corporate Contributions
   1. Less moved by emotional goals
   2. Can give grants, in kind gifts, or sponsorships (give sum in exchange for community exposure/other benefits)
3. Private Foundations

1. Non-profit charitable entity which is generally created by a single benefactor, usually an individual or business.
2. Will start with an initial donation and make an investment to generate income,and disperse the income based on the charity's needs.
3. Often makes use of grants to individuals and other charitable organizations as opposed to direct funding to their own program.

4. Corporate Foundations

1. Formed with funds from corporate profits
2. Some support issues associated with the needs of their industries while others support projects that will bring them visibility in the communities they serve.

5. Public Funding
   1. Grants from:
      1. National Endowment for the Arts & National Endowment for the Humanities
      2. State and local agencies
   2. Indirect funding: tax exemptions
   3. Gov. supports some art venues: Smithsonian, Kennedy Center, historic sites, etc.
6. Special Events
   1. Can take a year to plan
   2. But allow for major earnings
7. Capital/Comprehensive Campaign
   1. LONG term
   2. Extensive research
   3. Largest amount of money
   4. Used for large scale projects/capacity building

4 STEPS FOR MAKING THE ASK

1. Assessment
   1. Identify potential donors
   2. Who is the audience?
   3. Get help from the board
2. Cultivation
   1. Building relationships
   2. Make the donor feel like they are part of something bigger than themselves
   3. Finding the connections
3. Solicitation
   1. The actual ask
   2. Process varies depending on who you are asking
   3. Make it personal
4. Stewardship (THE MOST IMPORTANT!)
   1. Respond to donations/Giving thank yous
   2. Foster the relationship and keep it going

• Find the links between values of the organization and interests of the donors
• Seth Godin on fundraising:
  • Rather than saying give us money and we will solve that problem over there, say we see that problem, do not avert your eyes, people like us look at this problem, and then people like us enroll to go down a pathway to solving it
  • Do not set yourself up to fail by making unrealistic promises
  • Tell the donor the TRUTH about where you are going next
  • Connecting the disconnected

USEFUL CHARTS (textbook)

10 Principles of Fundraising (pg. 155)

• The DOs and DONTs
• Exemplifies the basic fundamentals described in the 4 steps to making the ask

Fundraising Expenses (chart on pg.157)

• Goes in detail on what each facet of fundraising pays for

Fundraising Roles (chart on pg.160)

• Breaks down the staff, board, and volunteer roles for 4 activities
  • Grant proposals
  • Direct mail solicitation
  • Major donors
  • Special event fundraisers