Assessing the characteristics of four principal fundraising methods

Abstract

Fundraising is an important part of program management, and it doesn't end at the inception of a program. This effective practice, excerpted from materials developed by Campaign Consultation, Inc., and shared at the National Senior Service Corps Atlantic Cluster Conference, held July 25-27, 2001 in Philadelphia, Pennsylvania, describes four principle fundraising methods and their characteristics. Assessing these different methods will aid program directors in choosing fundraising strategies according to their needs within a program's lifetime.

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Issue

Evaluating program needs with respect to appropriate fundraising techniques.

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Action

According to Campaign Consultation, Inc., four principle fundraising methods and their characteristics are:

Renewal Campaign

• Low cost to dollar raised ratio
• Need volunteers to succeed
• A mail/telephone method
• Cost to dollars raised is usually $0.25 to every $1.00 raised for a maturing program
• People who give usually increase their support because giving is based on understanding of the cause

Fundraising Event

• Method to attract new supporters
• Need many volunteers to succeed
• People who participate initially may not be interested in the mission of the organization
• Without in-kind support, the cost to dollar raised is often about $0.50 to every $1.00 for a maturing program
• A method to gain corporate underwriting support
• In 3-5 years, theme should be changed

Direct Mail (acquisition)

• Method to attract new supporters
• Costly...lucky to break even in cost to dollar raised...$1.00 — $1.25
• Diminished buy-in opportunity
• A mail/telephone method
• People who give usually increase their support because giving is based on understanding of the case

Proposal Writing

• Provides opportunity to think through new program from beginning to end
• Low cost to dollar raised ratio: $0.08 - $0.10
• Reporting requirements
• Diminished buy-in opportunity
• People who give usually increase their support because giving is based on understanding of the cause

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Context

Founded in 1988, Campaign Consultation, Inc. works with individuals and organizations at local, state, national and international levels to achieve community development, fund raising, diversity utilization, issue advocacy, media and marketing, public policy as well as organizational and business development success.

The Atlantic Cluster Conference in Philadelphia concluded the 2001 conference season with more than 500 participants including 233 project directors and 120 sponsor executives and representatives. Through the 2001 Senior Corps Cluster Conferences, a total of nearly 1,400 project directors and 600 sponsor executives joined together to discuss the future of senior service and explore creative ways to maximize senior volunteerism.

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Outcome

Choosing appropriate fundraising techniques can add dollars and donors to programs engaged in service.

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Posted On

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For More Information

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Source Documents

Related Practices

• Assessing fundraising methods to increase program sustainability
• Understanding key fundraising principles to ensure program sustainability

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