Fundraising 101 4H Forum October 16, 2004 Megan K. Riebe Director of Development WSU Extension4H

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Fund-raising 1014-H ForumOctober 16,
2004Megan K. RiebeDirector of DevelopmentWSU
Extension/4-HDirector of the Washington State
4-H Foundation
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4-H Youth Development Private Fund Raising A
Natural Partnership
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Fund Raising Is More Than Raising Funds

• Fund raising is a vital part of the comprehensive
  process of development
• Development is a series of deliberate activities
  that engage and retain funders in a
  donor-investor relationship
• Development is much more than a series of
  approaches to prospects and donors (direct mail,
  telefunding, events, etc.) that yield revenues
  annually

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Philanthropy, Development, and Fundraising

• Philanthropic behavior is motivated by values
• Development is the process of uncovering shared
  values
• Fund raising is the process of enabling people to
  act on their values (Grace 1997)

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Philanthropy is

• Voluntary action for the public good, which is
  based in values (Payton 1988)
• Voluntary action includes joining, serving
  giving, and asking
• People engage in philanthropic community
  activities for organizations whose values they
  share

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Development is

• The process of uncovering shared values
• How we help potential and existing donors
  understand the impact of their investment on the
  organization and the community
• Creating donor-investors

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Fund-raising is

• The opportunities we provide donors to act on
  their philanthropic values
• The activities we do that provide those
  opportunities

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Philanthropy Based in Values
Development Uncovers Shared Values
Fund Raising Enables People to Act on Values
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Development Activity Includes

• Identifying and qualifying prospects
• Engaging prospects and donors in activities of
  the organization
• Cultivation through a planned series of
  activities and contacts to build interest
• Solicitation of gifts prospects become
  donor-investors
• Stewardship that is meaningful for the donor
• Promotion to increase visibility of the impact
  the organization is making in the community

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From This Perspective

• Organizations meet needs, organizations do not
  have needs
• The focus is on program results, not financial
  goals
• The process of asking and giving is based in
  shared values
• The goal is to engage volunteers and donors at
  all levels in a process that will convert them to
  donor-investors
• All contributions become investments in the
  communities served

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Trends in Development

• Decreased State/Federal Funding Leads to
  increased need for private sector fund-raising.
• Fund-raising Increase More 501(c)(3) special
  interest organizations increasing use of direct
  mail and phone solicitations to target all
  donors.
• This creates a challenge for WSU
• and 4-H programs
• We need to increase the awareness of our great
  programs NOW, to secure FUTURE gifts.

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Why Do People Give?
The top two reasons people make a charitable
gift are...

• BECAUSE THEY ARE ASKED!
• THEY BELIEVE IN THE PROGRAM OR INSTITUTION!

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Why Do Corporations and Businesses Give?

• TO BE GOOD CORPORATE CITIZENS (PUBLIC RELATIONS
  VALUE)
• TO IMPROVE COMMUNITIES WHERE EMPLOYEES AND
  CUSTOMERS LIVE AND WORK
• QUID PRO QUO TO RECEIVE A BENEFIT THAT AFFECTS
  THEIR BOTTOM LINE

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Development Cycle
Cultivate
Identify
Solicit
Steward
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Development as a Cycle

• Identification Looking for Linkage, Ability
  Interest
• Cultivation Increase involvement, discuss needs
  and projects, identify donor intent, match
  donors interests with needs
• Solicitation Ask for a specific amount for a
  particular need to accomplish a defined project
• Stewardship Recognition, attention, thank you
  from all levels inform where and how the money
  was used (progress reports, scholarship letters,
  annual endowment reports, etc.)
• Our best future donors are our current donors!

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Development Audience for Extension/4-H

• WSU Alumni
• Friends (farmers, ranchers, clients)
• Commodity Groups, Commissions
• 4-H Parents, Volunteers Alumni
• Special Interest Groups
• Corporations/Foundations
• Faculty/Staff

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Faculty/Staff Drive Participation

• CAHNRS 24 WSU Ave. 31
• The impact of 100 (only 4.17 per paycheck)
• Provides ONE student internet-access for an
  academic year
• Provides19 hours of work-study in the child
  development center
• Every Gift makes a Difference
• Give to the area of your choice

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Sources of Funding

• Individuals
• Corporations
• Private Foundations
• Community Organizations
• Public Funds
• Partnerships

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Development Methods

• Direct mail
• Telemarketing
• Personal solicitation
• Written proposals/grants
• Special events
• Membership campaigns
• Planned giving

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Face-to-Face Estate Planners
Planned Gifts
Face-to-Face Personalized Letters
Major Gifts
Size of Gifts
Personalized Letters Special Events Face-to-Face
Repeat/Upgrade Donors
Direct Mail Telemarketing Local/Annual Events
Participation/Annual Donors
Number of Gifts
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Major Donor/Planned Gift Identification

• When you identify a prospective donor, please
  CALL us
• The Development Office has a process to assist
  you
• With you, we will plan a strategy to bring your
  funding initiative to the donors attention

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WSU Centrally ManagedCorporations and Foundations

• Microsoft Gates Foundation
• Battelle Paul Allen Foundations
• Boeing Pemco/Safeco
• Weyerhaeuser US Bank
• Hewlett Packard Bank of America
• Keck Foundation Washington Mutual
• Kellogg Foundation M. J. Murdock Trust
• Call 509-335-2243 Before you Submit!!
• We can help you!

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Commonly Accepted Gifts

• Cash usually a personal, business, or bank check
• Securities stocks, bonds or mutual fund shares
  which have appreciated may provide tax benefits
• Real Estate real property may provide
  tax/financial benefits plus relief from property
  management burdens
• Equipment or Personal Property equipment can be
  used or liquidated into cash
• In general, any asset with real value NOT
  SERVICES

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Non-cash Gifts

• Examples include equipment, software, hardware,
  books, supplies, collections, plant material,
  seed, chemicals, etc.
• Have value without being liquidated to cash
• Special documentation of value is necessary

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Gift and Estate Planning

• Charitable Gift Annuity
• Charitable Trust
• Life Insurance
• Retirement Assets
• Testamentary Gift
• Real Property

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Gift or Grant ??

• A gift is a voluntary contribution where all of
  the following conditions must apply
• Funds are given irrevocably.
• The donor does not require goods or services in
  exchange for the gift.
• Rights to any publication, inventions and patents
  resulting from use of funds reside with WSU.

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Gift or Grant ??

• If not a GIFT, then its a GRANT
• If, according to the criteria, a contribution is
  NOT a gift, it is processed through the CAHE
  Business and Finance Office as a grant.
• Grants are charged a percentage for indirect
  costs at a pre-determined or negotiated
  percentage.

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The Importance of Stewardship

• Donors like to see assessment and accountability
  measures built into projects
• Donors expect to be THANKED
• Corporate/Foundation program officers want to
  take materials back to their board members
• Current donors are our most likely future donors!

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WSU Foundation Gift ClubsAnnual Giving

• Platinum Presidents Associates 10,000
• Crimson President's Associates 5,000 - 9,999
• Silver Presidents Associates 2,500 - 4,999
• President's Associates 1,000 - 2,499
• Presidents Associates receive special
  recognition in WSU publications and as guests of
  honor at the Presidents Convocation and WSU
  Foundation events.

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WSU Foundation Gift ClubsLifetime Cumulative
Giving

• Laureate 1 million
• Benefactor 100,000 - 999,999
• These donors are publicly recognized at the
  Foundations Fall Recognition Dinner Gala and are
  listed on a display wall in the French
  Administration building on campus.

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Long-Term Relationships

• Fund-raising is NOT a quick fix to budget cuts.
• Gifts that we work on today may not materialize
  for several years. Feed the pipeline.
• PLAN your WORK
• and
• WORK your PLAN.

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CAHNRS/Extension Alumni Development
OfficeMission

• Advance the teaching, research and extension
  endeavors of the College of Agricultural, Human,
  and Natural Resource Sciences and WSU Extension
  by generating private contributions to supplement
  and enhance state and federal revenues for
  capital, operating, program, and student
  assistance funds.

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Washington State 4-H Foundation Mission

• The Washington State 4-H Foundation was founded
  in 1961 for the purpose of serving 4-H youth
  programs in Washington State. Since it's
  beginning the foundation has actively supported
  programs on a state wide level in partnership
  with WSU Extension.

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How Can the Development Staff and the 4-H
Foundation Help?

• Gift Accounting/County Accounts
• Scheduled Audits
• Professionally Managed Investments
• Earning Power of Pooled Foundation Assets
• Gift Acknowledgement
• Donor Recognition
• Data Management
• Grant Proposal Review Submission
• Grants Management

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Programs Projects That Get Funded

• Meet a demonstrated need
• Can be replicated, but do NOT duplicate
• Model programs
• Underserved populations
• Have qualified staff to manage
• Have built in assessment and measurable
  objectives
• Leverage other funding sources
• Have strong partnerships and collaboration

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To Increase the Probability of a Gift

• Involve the donor through volunteer activity,
  advisory boards, focus groups, research
  activities, field days
• Provide information about our great teaching,
  research extension programs
• Emphasize the Land Grant Mission - To Serve the
  People and the State

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