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Fundraising Principles and Practice. 2nd Edition

  • ID: 3734877
  • Book
  • 744 Pages
  • John Wiley and Sons Ltd
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THE DEFINITIVE RESOURCE ON FUNDRAISING FOR NONPROFITS

Fundraising Principles and Practice, Second Edition, is the perfect solution for everyone looking to make a name for themselves in fundraising for nonprofit organizations. Under the direction of two leading academic authorities in their fields, this one–of–a–kind resource brings together an all–star group of contributors from academia and the fundraising world. The result is an endlessly useful guidebook to the entire nonprofit sector based on the latest best practices and emerging research from economics, psychology, social psychology, and sociology.

Raising the level of funds needed for a nonprofit to fulfill its mission statement is harder than ever before. Personality and charisma aren′t enough anymore you need facts, frameworks, and theories to depend on to get the most out of such realities as Web 2.0, database fundraising, sophisticated planned–giving vehicles, and more. This updated new edition features a powerful framework to simplify setting goals, choosing strategies, nailing down a budget, creating a schedule, and monitoring activities. All of today′s cutting–edge methods, tools, and best practices enable you to make the most informed decisions by putting your finger on the pulse of donor behavior, social influences, and the most effective models. This single resource distinguishes you from the competition by showing you how to:

  • Organize your fundraising approach into a proven, streamlined system
  • Get inside the heads of donors to understand their behaviors and motivations
  • Immediately benefit from turnkey techniques for managing volunteers, monitoring progress, evaluating events, and more

Develop one of the most sought after skillsets in the industry with Fundraising Principles and Practice, Second Edition.

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Figures and Tables xiii

Preface xxi

Acknowledgments xxv

The Authors xxvii

1 Introduction to the Nonprofit Sector 1

Objectives 1

Introduction 2

A Third Sector 2

A Tax–Based Definition 6

A Structural–Operational Definition 14

Size and Economic Significance of the Nonprofit Sector 17

Sources of Income 20

Philanthropic Income 21

Summary 24

Discussion Questions 25

References 25

2 The Development of a Profession 27

Objectives 27

Introduction 28

Early American Fundraising 28

The Great Philanthropists 31

Key Historical Figures 32

Toward a Profession 34

Looking to the Future 42

Summary 45

Discussion Questions 45

References 46

3 Fundraising Ethics 48Ian MacQuillin

Objectives 48

Introduction 48

What Is Ethics? 49

Pressure in Fundraising: An Ethical Case 61

Normative Fundraising Ethics 63

Summary 73

Discussion Questions 74

References 75

4 Individual Giving Behavior 78

Objectives 78

Introduction 79

Who Gives? 79

Motivation 84

Self–Interest Versus Altruism 85

Definition of Donor Behavior 91

Modeling Donor Behavior 92

Attention 94

Perception 95

Emotion 97

Knowledge 100

Attitudes 104

Donor Decision Making 109

Feedback 111

Alternative Models 113

Summary 115

Discussion Questions 115

References 116

5 Social Influences on Giving 121

Objectives 121

Introduction 121

A Social Giving Model 122

Societal Environment 123

Social Environment 124

Summary 135

Discussion Questions 136

References 137

6 Fundraising Planning: The Fundraising Audit 139

Objectives 139

Introduction 139

A Planning Framework 140

The Fundraising Audit 144

Analytical Tools 156

Fundraising Metrics 165

Conducting an Audit in a Small Nonprofit 167

The SWOT Analysis 168

Summary 169

Discussion Questions 170

References 171

7 Fundraising Planning 172

Objectives 172

Introduction 172

Setting Fundraising Objectives 173

Key Strategies 177

Case for Support 209

Tactical Plans 209

Selection of an Appropriate Planning Framework 212

Summary 213

Discussion Questions 214

References 215

8 Case for Support 218

Objectives 218

Introduction 218

Summary 233

Discussion Questions 234

References 234

9 Assessing Fundraising Performance 236

Objectives 236

Introduction 236

Aggregate Fundraising Ratios 237

Conducting a Fundraising ROI Analysis 244

Other Measures of Performance 250

Benchmarking Fundraising Cost 252

Sector Benchmarking Initiatives 255

Making Investment Decisions 259

Accounting for Risk 271

Making the Case for Investment 272

Summary 272

Discussion Questions 273

References 274

10 Direct Response Fundraising 276

Objectives 276

Introduction 276

Cornerstones of Direct Response 278

Acquisition Planning 280

Setting Recruitment Objectives 281

Segmentation 282

Profiling 284

Targeting 285

Media Selection and Planning 286

Two–Step Campaigns 306

The Nature of the Fundraising Message 307

Fulfillment 313

Budgeting Control and Evaluation 314

Summary 316

Discussion Questions 316

References 317

11 Digital Fundraising 318Adrian Sargeant and Steven Shattuck

Objectives 318

Introduction 318

The Digital Giving Index 319

A Digital Communications Mix 321

Search Engine Optimization 322

Viral Marketing 343

Website Design 350

Mobile Technology 353

Donation Processing 357

Summary 358

Discussion Questions 358

References 359

12 Social Media 360Steven Shattuck and Adrian Sargeant

Objectives 360

Introduction 360

The Major Players 362

Other Social Networks 368

Developing a Strategy 369

Formulating a Content Strategy 373

Integrating Your Approach 375

Leveraging Fans, Followers, and Influencers 381

Algorithms and Getting Your Content Seen 384

Measuring the Effectiveness of Your Social Media Efforts 387

Safeguarding Contacts 388

Summary 389

Discussion Questions 389

References 390

13 Donor Retention and Development 392

Objectives 392

Introduction 392

What Is Loyalty? 395

Recruiting the Right People 397

Building Donor Loyalty 400

Planning for Retention 410

Relationship Fundraising 414

Relationship Fundraising 2.0 417

Calculating Donor Value 418

Segmenting for Growth 427

Loyalty Metrics 430

Summary 431

Discussion Questions 432

References 432

14 Major Gift Fundraising 435Robert F. Hartsook and Adrian Sargeant

Objectives 435

Introduction 435

Characteristics of Major Givers 437

Motives of Major Givers 438

Major Donor Recruitment 444

Qualification 447

Summary 460

Discussion Questions 460

References 461

15 Bequest, In Memoriam, and Tribute Giving 463Claire Routley and Adrian Sargeant

Objectives 463

Estate Planning 467

Who Leaves Bequests? 470

Why Do People Give? 473

Legacy–Specific Motives 477

Soliciting Bequests 481

Talking the Language of Bequest 486

Stewarding Bequest Donors 491

Systems and Processes 493

In–Memory Giving 493

Summary 496

Discussion Questions 496

References 497

16 Planned Giving 501Matthew J. Beem and Adrian Sargeant

Objectives 501

Introduction 501

Planned Giving Vehicles 504

Donor Motivation 515

Soliciting Planned Gifts 516

Planned Gift Donor Stewardship 519

Planned Gift Donor Appreciation 521

Managing the Planned Giving Function 522

Summary 524

Discussion Questions 525

References 525

17 Corporate Giving and Fundraising 526

Objectives 526

Introduction 526

History 528

Why Do Corporations Give? 529

Forms of Business Support 534

Whom to Ask? 544

The Benefits and Pitfalls 548

Fundraising Planning 549

Summary 557

Discussion Questions 557

References 558

18 Grant Fundraising 562

Objectives 562

Introduction 562

Definitions and Categories 563

Foundation Funding Trends 565

Preparation and Planning 567

Foundation Research 569

Prioritizing Effort 572

Initial Contact 573

The Application/Proposal 573

Building Relationships 579

The Grant Cycle 580

International Funding 584

Summary 585

Discussion Questions 586

References 587

19 Fundraising Events 589Karin L. Cox

Objectives 589

Introduction 589

A Typology of Events 591

Anatomy of an Event 602

Evaluating Fundraising Events 607

Summary 610

Discussion Questions 611

References 611

20 Managing Fundraising Volunteers 612Walter Wymer and Adrian Sargeant

Objectives 612

Introduction 612

Formal versus Informal Volunteering 615

Volunteer Recruitment 620

Retention Strategies 632

Program Evaluation 639

Summary 640

Discussion Questions 641

References 641

21 Leading Fundraising Teams 644

Objectives 644

Introduction 644

Trait Theory 645

Behavioral Theories 648

Contingency Theory 650

Contemporary Leadership Theories 657

Summary 666

Discussion Questions 667

References 667

22 Managing Public Trust and Confidence 670

Objectives 670

Introduction 670

Public Trust and Confidence 673

Building Trust in the Sector 675

Growing Confidence in the Nonprofit Sector 679

Building Trust in Organizations 684

Building Confidence in the Organization 685

Summary 688

Discussion Questions 688

References 689

Name Index 691

Subject Index 694

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Adrian Sargeant
Jen Shang
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