Fundraising and development slideshare
- 1. Megan McDowell Judy Opdahl Libr 204-14 Professor Alman
- 2. Fundraising and Development deals with the raising of monies for an expressed purpose. This generally occurs through non-profits.
- 3. An organization formed for the purpose of serving the public rather than making a profit The IRS gives a non-profit the 501(c)(3) status – as a charitable organization ◦ Non-profit is exempt from federal income tax ◦ Contributions made to non-profit are generally tax deductible Non-profits, such as libraries, use foundations to collect and distributes funds
- 4. You Make a Donation... •Monies go through a Foundation •The Foundation distributes the funds to the Library Foundations at work… •Public libraries establish them for receiving grants/private funds •All types of libraries work through foundations •Colleges/Universities – have foundations on campus IRS Qualification 501(c)(3) •Benefit to the donor is that their contributions may be tax deductible •Charitable Contributions: http://www.irs.gov/pub/ir s-pdf/p526.pdf
- 5. Academic-UCILibraries •Has established foundation •http://www.f oundation.uci .edu/about.a sp •Library Site •http://www.li b.uci.edu/par tners/ PublicLibrary–Omaha Public •Has established foundation •http://www.o mahapublicli brary.org/fou ndation/#abo ut •Library Site •http://www.o mahapublicli brary.org/ SpecialLibrary–GIA •Has established endowment •http://www.g ia.edu/about /1674/suppo rt_gia.cfm •Library Site •http://www.g ia.edu/library /1669/sectio n_main_page. cfm
- 6. Identify Funding need Create Fundraising Plan Create a clear message Find potential donors who believe in message Ask for donations/sponsorship Stewardship – Acknowledgement of gifts by showing gratitude
- 7. Communication ◦ Newsletters, Press releases, fliers, fundraising letters, special events All should communicate the value of the library to the community Acquiring Donors ◦ Start asking for support, ask for gifts Start with small amounts, even if it costs $1 to raise $1 you gain a donor base Creating a giving Pyramid ◦ Establish donors and move them up the pyramid
- 8. Establishing Gift Clubs or Memberships ◦ This is where you move a $50 donor into becoming a “Library Associate” at a donation of $1200 ◦ At this level invite them to events, recognize them by assigning special seating ◦ This is where “cultivation” happens – building the relationship between the donor and the operations and goals of the library Keep them up-to-date on happenings in library
- 9. Planned Gifts Major Gifts Membership Level Annual fund/donation Idea is to move donors up the pyramid. By cultivating you may change a member into a major donor Long term relationships become planned gifts – Endowments/Estates Takes years to develop donor Requires 3-5 years for gift
- 10. Planned gifts = 80-90% of funds raised Major Gifts Annual fund & Memberships 5-10% •Note the inverse relationship of income to donor type
- 12. Individuals Friends of Organization Family, Alumni, Staff State Funding State of California example of funding http://www.libr ary.ca.gov/gran ts/ Federal Funding Information on Grants from the Government http://www.usa .gov/Business/ Nonprofit.shtml
- 13. Lobbying of state or federal government Groups like CLA advocate http://capwiz.com/ala/ca/ home/ ALA advocates http://staging.ala.org/ala/ mgrps/divs/alta/altaadvoca cy/advocacy.cfm Public libraries need to make their needs known to the government
- 14. Colleges/Universities/Non-profits have Development Departments Team is dedicated to identifying and cultivating major gift donors, corporate donors Team members work collaboratively toward a fund raising goal and they foster relationships with donors
- 15. Some libraries have their own Development officer, often it is the library director Call on prospects, communicates vision, writes grants Solicits major gifts, manages fund raising team Closes major gifts, sets direction for fund raising University President VP of Development Development Officers Library Manager of Prospect Research Identifies potential donors, grants
- 16. “It is estimated that Research represents more than 80% of the work involved in securing a larger-than average gift” ◦ Researchers are always looking for companies, foundations, individuals who may have an interest and the potential to donate. ◦ Their research often involves accessing their internal databases, library research, and using on-line subscription tools. ◦ Their research is often compiled into reports for use by development officers – It helps them understand the prospect/potential donor.
- 17. Perception – Why should they donate to the library? All Aboard – Support from the President on-down is important in large campaigns Turn over in staff, if there are any changes it can slow the movement of donors up the pyramid Choice – There are a lot of competing places donors can give
- 18. Often they appeal to a specific audience, therefore they have a smaller potential donor base In corporations if budgets are tight, library is often on the cut list. If they are for-profit they are not eligible for grants. Competing for funds, example: a special library in a museum must compete with other efforts to fund the museum Lack of a development department for fundraising
- 19. Grants from other sources Private organizations and foundations often offer grants for a specific purpose Donations Individual donations $ or gifts-in-kind can be given right away or left in a will Corporate donations sometimes act as a form of advertising services or products are often given
- 20. Endowments Money can be raised and placed in a fund for use in the future Foundations/ trusts Created to ensure that money is used for intended purpose a board is usually created board usually will identify aims and objectives and raise money
- 21. Friends of the Library groups Often plan special events Pay membership fee to library Advocate for library May help with public relations for library
- 22. Special events Publicizes library while raising money May include book sales, black-tie dinners, game nights Selling of merchandise
- 23. Government grants State aid • Local officials and local voters approve aid for special projects Federal aid • Categorical aid is awarded for a specific purpose or project • Non-categorical aid is awarded for with little or no spending guidelines (it is also much harder to obtain)
- 24. Debate over on-line fundraising ◦ Some feel that it is unsafe and/or inappropriate ◦ Does not foster connections that lead to long-term relationships ◦ Others feel that posting links and marketing on their web pages is going to be vital in appealing to an e-commerce society ◦ Excellent example of marketing and campaigning on the web http://www.library.upenn.edu/portal/ Public libraries ◦ The fear is that private fundraising may affect public funding, due to the amounts raised ◦ Safeguarding money for public libraries
Editor's Notes
- #6: Examples of non-profits Academic UCI Libraries – Their web site http://www.lib.uci.edu/partners/index.php?page=join UCI Foundation http://www.foundation.uci.edu/about.asp Public Omaha Public Library Foundation http://www.omahapubliclibrary.org/foundation/#about Omaha Library site:http://www.omahapubliclibrary.org/ Special Library Gemological Institute of America [GIA] – library site –http://www.gia.edu/library/1669/section_main_page.cfm GIA Endowment Fund -http://www.gia.edu/about/1674/support_gia.cfm
- #10: Pyramid is further discussed in: Successful Fundraising, 2nd Ed, by Joan Flanagan Successful Fundraising Case Studies of Academic Libraries, Meredith Butler Editor
- #12: For further in depth information see: http://www.donorsforum.org/resource/grant_understanding.html Corporate Foundation Example:http://www.usbank.com/cgi_w/cfm/about/community_relations/sponsorship_event.cfm Family Foundation Example:http://www.pgafoundations.com Example of Corporate giving site http://www.toyota.com/about/our_commitment/philanthropy/guidelines/ Example of Sponsorships – US Bank Site and what they sponsor http://www.usbank.com/cgi_w/cfm/about/community_relations/sponsorship_event.cfm
- #13: Individuals – those who share your organizations common goals State Funding – in CA http://www.library.ca.gov/grants Federal funding - http://www.usa.gov/Business/Nonprofit.shtml
- #15: Components of Development involves relationship building and includes: Is designed for highest level of donors and prospects: major gifts, corporate donors (usually supports capital campaigns) It is relationship building, development officers are the guide to helping a donor to the next level of giving (the pyramid) They create ways to reach out to donors, by communicating and by building opportunities for donors to feel a part of the university. An example is inviting a donor to become a member of a steering committee, this is building involvement and a common goal. Hart, T., Greenfield, J., Johnston, M. (Ed.) (2005). Nonprofit Internet Strategies. Hoboken, New Jersey:John Wiley & Sons, Inc.
- #16: Colleges and Universities have entire departments dedicated to what they term “University Advancement or University Relations & Development” SJSU’s - http://www.sjsu.edu/advancement/giving/ What are the roles of each of these players President – Provides the leadership for overall program. VP – Integral for providing the leadership for development officers, also assists in securing major gifts Development officers – usually there is a officer for each department of the university, for example Development officer for Performing Arts, they write grants, meet with donors, etc. Prospect Research- Help identify prospects for funding – they find the individuals, corporations, foundations which could provide funds, grants or in-kind donations. Prospect research is vital to long term success of development office.
- #17: Tools used by prospect researchers: For a great overview of tools used see USC’s Research Power Tools http://www.usc.edu/dept/source/DevResTool.htm Foundation Center: http://www.foundationcenter.org/ Quote: (Hart, T., Greenfield, J. M., & Johnston, M., 2005, p. 57)
- #18: Perception – is that libraries are funded, and don’t need outside funds. Libraries need to market themselves as integral part of the University. Getting the President of the university on board, this is critical for success, as the message comes from the top down. Also President is key in the securing of gifts.
- #19: Issues: Usually special libraries If company not making money – 1st place cut is library Appeal to a very specific audience for funds –example of special library GIA (http://www.gia.edu/library/1669/section_main_page.cfm) Finding the donor – not as obvious that the library exists Smaller base for solicitation
- #25: Sources on online fundraising Hazard, B. L. (2003). Online Fundraising at ARL Libraries [Electronic version]. The Journal of Academic Librarianship, 29, 8-15. Hart, T., Greenfield, J., Johnston, M. (Ed.) (2005). Nonprofit Internet Strategies. Hoboken, New Jersey:John Wiley & Sons, Inc. University of Pennsylvania - http://www.library.upenn.edu/portal/