[Wikimediauk-l] Chapter Fundraising Basics

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.