Bequests were in the news over the holidays. A well known and loved charity was concerned that over the last three years it had received less bequest income. I checked the figures to check whether this was a universal phenomena and it isn't. Bequest income has actually increased over the last three years.
However that wasn't what I wanted to comment on. It's about what you do with bequests that I think is worthy of comment. For many organisations the thought of receiving a bequest is a pipe dream yet it's probably one of the easiest fundraising tools to get started. You simply have to change your will to include a bequest then talk to your board members and supporters about why you have taken such a step. Easy, peasy.
But while you are getting that sorted out, you need to make a decision about how you will use the bequest money. There are two options. One is that you will use it to supplement your annual income. In other words spend it today. Otherwise you might establish an endowment fund which maintains its capital to generate income. Once you get to this point you are truly a sustainable organisation! Oops, Sorry, to get diverted. Back to the endowment fund! Personally I believe that an endowment fund would be attractive to your potential donors. Better that their support for you can continue to provide assistance over many years, than to be used up in one or two years. This doesn't mean that endowment funds can't ever be used. Your policy would probably determine what constitutes an emergency situation. A bequest is a legacy gift so it makes sense to keep it as a legacy.
Another issue for your bequest policy is donor recognition. I'm in the camp that says celebrate the gift while the person is around to appreciate it. You won't know for sure that someone has left you a legacy until their death but in the meantime you can presume that if they tell you they've done it, they probably have. Once you know they are making a bequest, you must do something with the information. You really only have one shot at this because if you miss the mark, the donor will go somewhere else.
Showing posts with label special events. Show all posts
Showing posts with label special events. Show all posts
Wednesday, January 4, 2012
Tuesday, January 3, 2012
Fundraising Gimmicks and new ideas
New Ideas and Fundraising Gimmicks
For the uninitiated, fundraising seems to be about gimmicks. For many there is presumption that somewhere out there is a new idea that will raise millions, preferably without the organisation itself having to spend a penny. In general the same people looking for the gimmick will also be looking for a freebie. Not only will they ask for the consultant to work on commission, but if the consultant is successful they will still complain about the size of the commission. Accept these types of job and you are on hiding to nothing.
A couple of years ago I was invited to meet with a CEO who wanted to raise a significant amount of money for a capital purchase. I explained the process of capital fundraising and suggested that the starting point was to grow the database of supporters and to communicate the need. The organisation had a clear target market so I suggested some face to face sign ups at an enormously well attended special event. The most significant costs would be securing a display stand at the event, some publicity material and the employment of one or two key people to direct the activity. Volunteers were available so it wasn't a huge human resource investment. The event was to be held six weeks into the future so it meant a quick decision was needed. And seeing as quick action was a requirement of the CEO I believed the solution was simple. Face to face asking is the preferred option.
Well we went backwards and forwards with meetings until I could stand it no longer, nor could my pocket. I'm happy to present ideas and discuss solutions with the client before charging but after meeting number three and missing the deadline for booking into the event, I realised that the job was turning into the impossible.
In exasperation I asked what was the problem with the strategy. "I want something different" he said in a plaintiff voice.It suddenly dawned on me. He didn't want to pay my fees for something that seemed so simple and mundane. At that point I said "if you want the tried and tested way of fundraising, with no guarantees, but plenty of evidence of success, then I'm the right person to help you, but if you want something different, with no proven process, then find someone else to help you!"
Nowadays, before I start work with a client who has no experience or exposure to fundraising, I fully explain the process of fundraising to the board and CEO and ensure I have their commitment to that process before I sign a contract. I explain that my role is about establishing the process rather than finding the gimmick. It doesn't mean that creativity is not important. It certainly is. But it's not the starting point for developing a sustainable fundraising plan.
And by the way, commission work is a no, no. I'll write a blog on that one another day.
For the uninitiated, fundraising seems to be about gimmicks. For many there is presumption that somewhere out there is a new idea that will raise millions, preferably without the organisation itself having to spend a penny. In general the same people looking for the gimmick will also be looking for a freebie. Not only will they ask for the consultant to work on commission, but if the consultant is successful they will still complain about the size of the commission. Accept these types of job and you are on hiding to nothing.
A couple of years ago I was invited to meet with a CEO who wanted to raise a significant amount of money for a capital purchase. I explained the process of capital fundraising and suggested that the starting point was to grow the database of supporters and to communicate the need. The organisation had a clear target market so I suggested some face to face sign ups at an enormously well attended special event. The most significant costs would be securing a display stand at the event, some publicity material and the employment of one or two key people to direct the activity. Volunteers were available so it wasn't a huge human resource investment. The event was to be held six weeks into the future so it meant a quick decision was needed. And seeing as quick action was a requirement of the CEO I believed the solution was simple. Face to face asking is the preferred option.
Well we went backwards and forwards with meetings until I could stand it no longer, nor could my pocket. I'm happy to present ideas and discuss solutions with the client before charging but after meeting number three and missing the deadline for booking into the event, I realised that the job was turning into the impossible.
In exasperation I asked what was the problem with the strategy. "I want something different" he said in a plaintiff voice.It suddenly dawned on me. He didn't want to pay my fees for something that seemed so simple and mundane. At that point I said "if you want the tried and tested way of fundraising, with no guarantees, but plenty of evidence of success, then I'm the right person to help you, but if you want something different, with no proven process, then find someone else to help you!"
Nowadays, before I start work with a client who has no experience or exposure to fundraising, I fully explain the process of fundraising to the board and CEO and ensure I have their commitment to that process before I sign a contract. I explain that my role is about establishing the process rather than finding the gimmick. It doesn't mean that creativity is not important. It certainly is. But it's not the starting point for developing a sustainable fundraising plan.
And by the way, commission work is a no, no. I'll write a blog on that one another day.
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