Assessing fundraising methods to increase program sustainability

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Abstract

Fundraising and resource development are important responsibilities of nonprofit organizations. By determining which development method an organization employs, program directors and managers may decide to implement others that might prove beneficial. This effective practice is from the Toolkit for Program Sustainability, Capacity Building, and Volunteer Recruitment/Management (2004) developed from material provided by Campaign Consultation, Inc., with assistance from Aguirre International for AmeriCorps program applicants.

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Issue

Nonprofit fundraising and resource development are program management areas that need to be explored fully to ensure sustainability of programs.

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Action

According to Campaign Consultation, Inc., common fundraising methods are as follows:
  • Stakeholder Giving refers to gifts from individuals who have a special interest in the activities of an organization, such as board members, staff, volunteers and constituents.

  • Direct Mail Fundraising is solicitation of funds by mass-mailings directly to individual donor prospects. Contributors may be members of the organization, individuals in the community, and individuals sharing the organization's vision.

  • Annual Giving is a fundraising program that generates gift support to help sustain yearly budgets or general operations. Contributors are members of the organization, individuals in the community, and individuals sharing the organization's vision.

  • Major Gifts/Grants are significant donations to a not-for-profit organization. Contributors are individuals, corporations and foundations.

  • Capital Campaigns are intensive fundraising efforts to meet a certain financial goal within a specified period of time for one or more major projects, such as the construction of a building. Contributors are wealthy individuals who share the organization's vision, other stakeholders, members of the organization, and individuals in the community.

  • Endowment Campaigns are campaigns to allocate funds specifically to create or supplement a permanently restricted net asset, the principal of which is protected and the income from which may be spent for an organization's operating expenses. Contributors are wealthy individuals who share the organization's vision, other stakeholders, members of the organization, and individuals in the community.

  • Planned Giving is a pre-arranged gift, such as a bequest, life insurance policy, charitable remainder trust, or gift annuity. Contributors are members of the organization, individuals in the community, individuals sharing the organization's vision, and those needing annuity income.

  • Resource Donations are donations of time, talent, equipment, supplies, free or discounted services, and free or discounted products. Contributors are businesses and professionals in the community.

  • Fees for Services are charges for services an organization already provides (or can provide) to clients and other community members. Contributors are beneficiaries of services provided.

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Context

There are four key types of strategies to consider when building the capacity, and ultimately, the sustainability of an organization. These are:

  • Recruitment and management of volunteers
  • Partnerships with community members and organizations
  • Marketing and promotion
  • Increase and diversification of resources

Though there is great diversity in fundraising methods, the following steps are critical to most or all of them:

  • Develop a vision, mission statement, and case for support
  • Identify all potential stakeholders
  • Research prospective donors
  • Communicate and cultivate relationships with stakeholders and prospective donors
  • Work to develop stakeholder and donor "buy-in" for the program and activities
  • Prepare and make the request for support ("the Ask")
  • Carry out follow-up to "Asks" made
  • Demonstrate accountability and results to stakeholders and donors

 

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Citation

Toolkit for Program Sustainability, Capacity Building, and Volunteer Recruitment/Management. Developed from material provided by Campaign Consultation, Inc., with assistance from Aguirre International. (2004)

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Outcome

Utilizing as many development/fundraising methods as is appropriate, helps ensure sustainability of programs.

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Posted On

April 21, 2004

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For More Information

Campaign Consultation, Inc.
2819 Saint Paul Street
Baltimore, MD 21218-4312
Phone: (410) 243-7979
Fax: (410) 243-1024

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Resources

Campaign Consultation, Inc. works with individuals and organizations at local, state, national and international levels to achieve community development, fund raising, diversity utilization, issue advocacy, media and marketing, public policy as well as organizational and business development success.

Source Documents

Related Practices

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Related sites

The Foundation Center: RFP Directory

Grassroots Fundraising Journal

Topic Areas

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