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Fundraising Principles and Practice

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Table of Contents

Figures, Tables, and Exhibits xv Preface xxiii Acknowledgments xxvii The Authors xxix Part One: Introduction to Fundraising and Donor Behavior 1 1 Introduction to the Nonprofit Sector 3 A ?Third? Sector 4 A Tax-Based Definition 7 A Structural-Operational Definition 14 Size and Economic Significance of the Nonprofit Sector 15 Sources of Income 19 Philanthropic Income 20 Summary 23 Discussion Questions 24 2 The Development of a Profession 25 Early American Fundraising 26 The Great Philanthropists 28 Key Historical Figures 29 Toward a Profession 31 Looking to the Future 39 Summary 42 Discussion Questions 42 3 Ethical Fundraising 44 Eugene R. Tempel and Sarah K. Nathan Obedience to the Unenforceable 46 The AFP Code of Ethical Principles and Standards 48 The Donor Bill of Rights 51 Common Ethical Dilemmas 53 Adopting Professional Codes 59 Summary 59 Discussion Questions 60 4 Individual Giving Behavior 61 Who Gives? 62 Motivation 66 Definitions of Donor Behavior 72 Modeling Donor Behavior 73 Donor Decision Making 90 Feedback 92 Alternative Models 93 Summary 95 Discussion Questions 96 5 Social Influences on Giving 97 A Social Giving Model 98 Societal Environment 100 Social Environment 100 Summary 111 Discussion Questions 112 Part Two: Fundraising Planning 113 6 Fundraising Planning: The Fundraising Audit 115 A Planning Framework 116 The Fundraising Audit 119 Analytical Tools 132 Fundraising Metrics 140 Conducting an Audit in a Small Nonprofit 142 The SWOT Analysis 143 Summary 144 Discussion Questions 145 7 Fundraising Planning 146 Setting Fundraising Objectives 147 Key Strategies 151 Tactical Plans 181 Budget 182 Scheduling 183 Monitoring and Control 184 Selection of an Appropriate Planning Framework 185 Summary 186 Discussion Questions 187 8 The Case for Support 188 Timothy L. Seiler and Eva E. Aldrich Preparing the Case 189 Case Expressions 194 Effective Case Expressions for Fundraising 195 Summary 198 Discussion Questions 199 9 Assessing Fundraising Performance 200 Aggregate Fundraising Ratios 201 Conducting a Fundraising ROI Analysis 207 Other Measures of Performance 213 Benchmarking Fundraising Costs 214 Sector Benchmarking Initiatives 217 Making Investment Decisions 221 Accounting for Risk 231 Making the Case for Investment 232 Summary 233 Discussion Questions 234 Part Three: Fundraising Methods 237 10 Direct Response Fundraising 239 Cornerstones of Direct Response 241 Acquisition Planning 243 Summary 275 Discussion Questions 275 11 Fundraising Online: Techniques and Tools 276 Ted Hart and Adrian Sargeant ePhilanthropy 279 Web Site Strategy 279 Fundraising Online 283 Online Communication Metrics 306 Summary 310 Discussion Questions 311 12 Donor Retention and Development 312 What Is Loyalty? 315 Recruiting the Right People 316 Building Donor Loyalty 319 Planning for Retention 328 Relationship Fundraising 334 Calculating Donor Value 336 Segmenting for Growth 345 Loyalty Metrics 349 Summary 350 Discussion Questions 350 13 Major Gift Fundraising 351 Robert F. Hartsook and Adrian Sargeant Characteristics of Major Givers 352 Motives of Major Givers 354 Major Donor Recruitment 359 Summary 375 Discussion Questions 375 14 Bequest, In Memoriam, and Tribute Giving 377 Will Making 381 Charitable Bequest Giving 384 Motives for Charitable Bequest Giving 389 Soliciting Bequests 393 Talking the Language of Bequest 398 Memorial and Tribute Fundraising 403 Summary 405 Discussion Questions 405 15 Planned Giving 407 Matthew J. Beem and Adrian Sargeant Planned Giving Vehicles 410 Donor Motivation 420 Soliciting Planned Gifts 422 Planned Gift Donor Stewardship 425 Planned Gift Donor Appreciation 426 Managing the Planned Giving Function 427 Summary 429 Discussion Questions 430 16 Corporate Giving and Fundraising 431 Dwight F. Burlingame and Adrian Sargeant History 433 Why Do Corporations Give? 434 Forms of Business Support 439 Cause-Related Marketing 443 Who to Ask? Selecting the Right Organization 447 Benefits and Pitfalls 450 Fundraising Planning 452 Summary 459 Discussion Questions 460 17 Grant Fundraising 461 Definitions and Categories 462 Foundation Funding Trends 463 Preparation and Planning 465 Foundation Research 468 Assessment and Prioritization 471 Initial Contact 471 Application and Proposal 472 Relationship Building 478 The Grant Cycle 478 Why Applications Fail 479 International Funding 482 Summary 483 Discussion Questions 484 Part Four: Fundraising and Civil Society 487 18 Managing Fundraising Volunteers 489 Walter Wymer and Adrian Sargeant Formal Versus Informal Volunteering 492 Volunteer Recruitment 497 Retention Strategies 509 Program Evaluation 515 Summary 516 Discussion Questions 517 19 Fundraising Events 519 Karin Cox A Typology of Events 521 Anatomy of an Event 531 Evaluating Fundraising Events 535 Summary 538 Discussion Questions 538 20 Women and Philanthropy 540 Debra J. Mesch and Andrea Pactor Capacity for Giving 541 Barriers to Women?s Giving 542 Gender Matters 543 Women?s Influence in Decision Making 544 Generational Differences 545 New Models of Engagement 547 Value of Donor Education 551 Women as Donors: The Fundraising Strategy 552 Measuring Impact 557 Summary 558 Discussion Questions 558 21 Public Trust and Confidence 560 Trust and Confidence 563 Building Trust in the Sector 565 Lessons from Across the Pond 570 Growing Confidence in the Nonprofit Sector 572 Building Trust in Organizations 576 Building Confidence in Organizations 577 Summary 580 Discussion Questions 581 22 The Social Role of Fundraising 582 Richard B. Gunderman The Role of Giving 583 Human Flourishing 585 The Long View 587 Priorities 588 Fundraisers? Dreams 591 Summary 593 Discussion Questions 593 References 595 Name Index 627 Subject Index 633

About the Author

Adrian Sargeant is the Robert F. Hartsook Professor ofFundraising at Indiana University; professor of nonprofit marketingand fundraising at Bristol Business School in the United Kingdom;and adjunct professor of philanthropy at the Australian Centre forPhilanthropy and Nonprofit Studies at Queensland University ofTechnology, Brisbane, Australia. The managing editor of theInternational Journal of Nonprofit and Voluntary Sector Marketing,he has authored numerous articlesand books. Jen Shang is a professor and philanthropic psychologistat the School of Public and Environmental Affairs at IndianaUniversity Bloomington. Her work has been featured in theChronicle of Philanthropy, Advancing Philanthropy, Nonprofit Times,and The New York Times.

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