Hi all,
Following on from a side-discussion at the last irc board meeting,
Rand Montoya, the Foundation's Head of Community Giving, has been
writing a "Chapter Fundraising Basics" page, which he's given
permission for me to email around (see below). That same discussion
also lead to tomorrow's board meeting discussion on fundraising, so
this is aptly timed from that point of view.
Mike
==Chapter Fundraising Overview==
So you want to fundraise for your chapter? Sounds great.
This page (and related pages) are designed to be a helpful resource
for helping your chapter fundraise. It should be noted that all
chapters will fundraise differently as every country and culture is
different. Approaches that will work in one area won't work in
another. I hope to have Chapter input on different successes and
failures so that we may share knowledge.
In the end, you want to keep this theme in mind when you think about
fundraising for your chapter: "Treat the donor as they wish to be
treated." It's a variant on the Golden Rule...but one that all
chapters will need to explore and test and figure out how your donors
want to be asked and how you can invite them to join the cause so
that they give again.
This page is not for discussing whether or not your chapter *should*
fundraise. That discussion is for another page. This page is for
discussing how to chapter fundraise.
However, if your chapter is going to fundraise, there are several
requirements: a donor database, tax deductability in your country
(if applicable), and a commitment to steward your donors. If a
chapter is not ready or not willing to take do the minimum steps,
then that chapter is probably not able to fundraise and resources
should be placed into other areas.
==Fundraising Goal==
Some people thing the goal of fundraising is raising money...they are
only partially correct. The goal of professional fundraising is a
combination of 3 things: 1) selling/marketing the good work your
organization does, 2) convincing donors to give to your organization,
and 3) thanking that donor and reporting what your organization has
done so that the donor will give again (cultivation).
Fundraising is about building a relationship of trust and information
with your donors so that they feel their donation is going to a
trustworthy cause and making an impact in the world.
==Donor Database==
The donor database is a tool that allows you to track donors (and
donor information), their donations, *AND* your communications with
them. There are many different donor databases (it's quite a
lucrative industry here in the States)...the Wikimedia Foundation
Inc. uses [
http://www.civicrm.org CiviCRM] which is a [http://
en.wikipedia.org/wiki/Free_and_Open_Source_Software FOSS] solution.
Some smaller organizations will use a modified Excel (or similar) or
Access database (or similar) to track donor information.
At the minimum, a donor database captures the following information:
Donor Information:
* First Name
* Middle Name
* Last Name
* Gender/Sex
* Address Lines/Postal Codes (as appropriate to your country and any
donors you plan on courting)
* Email Address(es)
* Relational Codes (Groups, Tags, Familial relationships, Work
relationships etc.)
* Contact Codes ("No email"=donor does not want any emails, "no
mail"=do not mail this donor, "no events"=donor not interested in
events, etc.)
Donation Information:
* Gift Date
* Gift Amount
* Payment Type (cash, in-kind, stock, other)
* Payment Method (currency, check, bank transfer, paypal, EFT, etc.)
* Gift Notes
* Donation Restrictions (see Our Responsibility, below)
* Date that acknowledgment communication was sent
==Fundraising Basics==
* Suppose you just want to fundraise right now, what are the steps?
# Set up your donor database.
# Set up your payment processing into the donor database. Test
it...repeatedly.
# Have a nice thank you email/letter process for when a donation
comes in. All donors MUST be thanked!
# Begin collecting addresses (home or email) from your supporters..at
events or from donations or sign ups.
# Work on your messaging...what story, project, or event are you
going to use to show your impact to the world and the donor?
# Prepare a communication with your donors...via email or postage mail.
* Develop compelling, understandable reasons why your donors should
give.
* Be very open about what the money is to be used for and explain the
impact to the world. (Specifically to WMF fundraising, we need to be
very clear to our donors about what they are giving to: be it
Wikipedia or a WM Chapter.)
* Make it easy to give...figure out how your donors in your country
want to give, and offer those methods.
* We *CANNOT* accept donations restricted for services we do not
offer. For example, we can accept money for Wikipedia. We cannot
accept a donation to be used directly to provide internet and
Wikipedia access to hurricane survivors. If it's not something we
do (or are actively planning to do), we need to return the money or
ask the donor's permission to re-purpose the gift. If a donor offers
us a restricted gift, we must honor that intent or return the money.
* In general, do *NOT* email/mail prospective donors who have not
shown interest in your Chapter. In short, don't spam. One a donor
gives money, sure...feel free to ask them for money in the future.
If a user attends a Wikiversity workshop and signs up for the Chapter
newsletter, you can also ask those people for money.
* Always check out how other well-established non-profits in your
country fundraise? In what ways can donors make gifts? What does
their donation page look like? What is the privacy policy? Well
known world wide non-profits include:
** [
http://www.ICRC.org International Committee of the Red Cross]
** [
http://creativecommons.org/international/ Creative Commons
International]
** [
http://www.greenpeace.org/international/ Greenpeace]
==Major Gifts==
Major Gifts refer to larger gifts made by individuals. The monetary
amount differs from organization to organization (usually $1000 and
up) but the main difference between a major gift and a community gift
is that a major gift is cultivated on a personal one-on-one basis. A
major gift donor has a relationship with a staff person or volunteer,
and that donor can sometimes serve in a volunteer leadership position
within the organization.
Major gift prospects are usually uncovered by 1) scanning your
current donor lists for anyone with greater capacity, 2) referrals
from your current donors and other stakeholders, or 3) researching
potential funders utilizing purchased databases and other means.
WMF staff are happy to assist you in developing your major gift
portfolio.
==Safety/Security/Privacy==
The Wikimedia Foundation expects that every chapter that is
fundraising has policies for ensuring that donor data is safe and
secure. Any basic donor privacy agreement includes the following
concepts/protections (copied from the [
http://www.afpnet.org/ka/
ka-3.cfm?content_item_id=9988 Association of Fundraising
Professionals]):
The Donor Bill of Rights
Philanthropy is based on voluntary action for the common good. It is
a tradition of giving and sharing that is primary to the quality of
life. To ensure that philanthropy merits the respect and trust of the
general public, and that donors and prospective donors can have full
confidence in the nonprofit organizations and causes they are asked
to support, we declare that all donors have these rights:
*I. To be informed of the organization's mission, of the way the
organization intends to use donated resources, and of its capacity to
use donations effectively for their intended purposes.
*II. To be informed of the identity of those serving on the
organization's governing board, and to expect the board to exercise
prudent judgment in its stewardship responsibilities.
*III. To have access to the organization's most recent financial
statements.
*IV. To be assured their gifts will be used for the purposes for
which they were given.
*V. To receive appropriate acknowledgement and recognition.
*VI. To be assured that information about their donation is handled
with respect and with confidentiality to the extent provided by law.
*VII. To expect that all relationships with individuals representing
organizations of interest to the donor will be professional in nature.
*VIII. To be informed whether those seeking donations are volunteers,
employees of the organization or hired solicitors.
*IX. To have the opportunity for their names to be deleted from
mailing lists that an organization may intend to share.
*X. To feel free to ask questions when making a donation and to
receive prompt, truthful and forthright answers.
The donor policy should be readily visible on your Chapter donation
page and in any online appeal.
The Wikimedia Foundation will never, ever buy or sell donor names or
information...neither should you.
Samples:
*WMF:
https://secure.wikimedia.org/wikipedia/internal/wiki/
Fundraising_committee/Donor_privacy_policy (admittedly, pretty
hideous if you're a donor...we'll clean it up for the next
fundraiser, make it more specific for donors)
*WM DE: "http://wikimedia.de/index.php?id=81"
==Random Notes==
===Thank You Letter:===
It's very important to have a nice, short, clean Thank You letter/
email for your donors
# Donors should receive a thank you letter/email no longer than 48
hours after their donation.
# The thank you letter/email should include: the donation date and
amount, several and repeated "thank yous", and reporting on how your
Chapter is going to efficiently use the money.
# It's also nice to exhort the donor on how their donation is
changing the world and helping people.
# Always include a link to your Chapter page or place where the donor
can go for more information.
# As needed, include tax deductibility information.
# Provide a place/way the donor can ask questions/get help.
===Events:===
# There are two types of events: fundraising and cultivation.
Fundraising events make money for your organization, often by selling
tickets, securing sponsorship, hosting an auction, etc... Cultivation
events are usually free of charge, and the goal is to increase
awareness and future donations to the organization.
# Give your attendees both the options to support/donate to the
cause...but also *reasons* to support the cause.
# Always ask for email addresses! Collect them at every
opportunity. Be sure to explain that the addresses will be used to
share Chapter information and newsletters.
===Competition:===
Chapter are STRONGLY discouraged from fundraising outside their
country(ies)...especially in competition with another Chapter's
donors. However, in this virtual world, those lines can be difficult
to see. To avoid problems, use the following guidelines:
# Do not direct mail outside your local geographic area unless you
have specific permission from the donor.
# Make your donation appeals very clear to the donor where their
donation would go. In fact, let me stress that all Chapters (and the
Foundation) need to be clear to any potential donor where their
donation is going and what the money would be used for.
# If you have questions about an online fundraiser, please feel free
to contact [[user:Rand Montoya|Rand Montoya]] to discuss possible
conflicts.
===Finding new donors:===
The lifeblood of any non-profit is the donor pool and finding ways to
motivate potential donors into being donors. Best approaches include:
# Have a clear active presence in your community.
# Collecting email addresses and names at every opportunity: every
event, training, or gathering.
# Having a place for potential donors to sign up for newsletter online.
===Crafting a email ask:===
You'll find many articles online about how to write an appeal. It's
very likely that an approach that works for one Chapter will not be
as successful as another Chapter's. However, I believe the following
tips apply across cultures:
# Be passionate and positive in your messaging.
# Do not be afraid to ask for money or support.
# Be very clear about what you will do with the donation. Explain
clearly what the donation how the money will be used and what impact
it will have on the world/society.
# Use '''*bold*''' print to highlight key points.
# Keep it simple and as short as possible.
# Test different versions to see which works better for your group.
# Always provide ways for donors to get more information.
# Read online for better approaches! There are thousands of words
on this topic.
# The WMF fundraising staff is happy to help you with your appeal.
==Foundation and Other Resources==
*In general, the Wikimedia Foundation is open to help Chapters
fundraise. Resources include:
** [[user:Rand Montoya|Rand Montoya]] Head of Community Gifts:
General questions about fundraising, donor databases, email appeals,
and Foundation fundraising policy.
** Rebecca Handler, Head of Major Gifts: Major Gift
cultivation...anytime you have a lead on a Major Donor, feel free to
contact Rebecca for help. She can arrange meetings with Sue, Erik,
and Jimmy as needed.
** Anya Shyrokova, Development Associate: CiviCRM expert and general
fundraising knowledge.
* [
http://www.gpaumier.org/blog/229_five-fundraising-tips-for-
wikimedia-chapters/ Guillom's 5 Tips for Chapters] A most excellent
guide to Chapter fundraising.
* Need help setting up your CiviCRM database, this might help:
[[CiviCRM_Gift_Coding]]. It's how we code our gifts at the foundation.