The complete guide to fundraising planning, tools, methods, and more Fundraising Principles and Practice provides a unique resource for students and professionals seeking to deepen their understanding of fundraising in the current nonprofit environment. Based on emerging research drawn from economics, psychology, social psychology, and sociology, this book provides comprehensive analysis of the nonprofit sector. The discussion delves into donor behavior, decision making, social influences, and models, then uses that context to describe today's fundraising methods, tools, and practices. A robust planning framework helps you set objectives, formulate strategies, create a budget, schedule, and monitor activities, with in-depth guidance toward assessing and fine-tuning your approach. Coverage includes online fundraising, major gifts, planned giving, direct response, grants, corporate fundraising, and donor retention, with an integrated pedagogical approach that facilitates active learning. Case studies and examples illustrate the theory and principles presented, and the companion website offers additional opportunity to deepen your learning and assess your knowledge.
Fundraising has become a career specialty, and those who are successful at it are among the most in-demand in the nonprofit world. Great fundraisers make an organization's mission possible, and this book covers the essential information you need to help your organization succeed.
- Adopt an organized approach to fundraising planning
- Learn the common behaviors and motivations of donors
- Master the tools and practices of nonprofit fundraising
- Manage volunteers, monitor progress, evaluate events, and more
Fundraising is the the nonprofit's powerhouse. It's the critical component that supports and maintains all activities, and forms the foundation of the organization itself. Steady management, clear organization, effective methods, and the most up-to-date tools are vital to the role, and familiarity with donor psychology is essential for using these tools to their utmost capability. Fundraising Principles and Practice provides a comprehensive guide to all aspects of the field, with in-depth coverage of today's most effective approaches.
Table of Contents:
Figures and Tables xiii
Preface xxi
Acknowledgments xxv
The Authors xxvii
1 Introduction to the Nonprofit Sector 1
Objectives 1
Introduction 2
A “Third” Sector 2
A Tax-Based Definition 6
A Structural-Operational Definition 14
Size and Economic Significance of the Nonprofit Sector 17
Sources of Income 20
Philanthropic Income 21
Summary 24
Discussion Questions 25
References 25
2 The Development of a Profession 27
Objectives 27
Introduction 28
Early American Fundraising 28
The Great Philanthropists 31
Key Historical Figures 32
Toward a Profession 34
Looking to the Future 42
Summary 45
Discussion Questions 45
References 46
3 Fundraising Ethics 48
Ian MacQuillin
Objectives 48
Introduction 48
What is Ethics? 49
Pressure in Fundraising: An Ethical Case 61
Normative Fundraising Ethics 63
Summary 73
Discussion Questions 74
References 75
4 Individual Giving Behavior 78
Objectives 78
Introduction 79
Who Gives? 79
Motivation 84
Self-Interest Versus Altruism 85
Definition of Donor Behavior 91
Modeling Donor Behavior 92
Attention 94
Perception 95
Emotion 97
Knowledge 100
Attitudes 104
Donor Decision Making 109
Feedback 111
Alternative Models 113
Summary 115
Discussion Questions 115
References 116
5 Social Influences on Giving 121
Objectives 121
Introduction 121
A Social Giving Model 122
Societal Environment 123
Social Environment 124
Summary 135
Discussion Questions 136
References 137
6 Fundraising Planning: The Fundraising Audit 139
Objectives 139
Introduction 139
A Planning Framework 140
The Fundraising Audit 144
Analytical Tools 156
Fundraising Metrics 165
Conducting an Audit in a Small Nonprofit 167
The SWOT Analysis 168
Summary 169
Discussion Questions 170
References 171
7 Fundraising Planning 172
Objectives 172
Introduction 172
Setting Fundraising Objectives 173
Key Strategies 177
Case for Support 209
Tactical Plans 209
Selection of an Appropriate Planning Framework 212
Summary 213
Discussion Questions 214
References 215
8 Case for Support 218
Objectives 218
Introduction 218
Summary 233
Discussion Questions 234
References 234
9 Assessing Fundraising Performance 236
Objectives 236
Introduction 236
Aggregate Fundraising Ratios 237
Conducting a Fundraising ROI Analysis 244
Other Measures of Performance 250
Benchmarking Fundraising Cost 252
Sector Benchmarking Initiatives 255
Making Investment Decisions 259
Accounting for Risk 271
Making the Case for Investment 272
Summary 272
Discussion Questions 273
References 274
10 Direct Response Fundraising 276
Objectives 276
Introduction 276
Cornerstones of Direct Response 278
Acquisition Planning 280
Setting Recruitment Objectives 281
Segmentation 282
Profiling 284
Targeting 285
Media Selection and Planning 286
Two-Step Campaigns 306
The Nature of the Fundraising Message 307
Fulfillment 313
Budgeting Control and Evaluation 314
Summary 316
Discussion Questions 316
References 317
11 Digital Fundraising 318
Adrian Sargeant and Steven Shattuck
Objectives 318
Introduction 318
The Digital Giving Index 319
A Digital Communications Mix 321
Search Engine Optimization 322
Viral Marketing 343
Website Design 350
Mobile Technology 353
Donation Processing 357
Summary 358
Discussion Questions 358
References 359
12 Social Media 360
Steven Shattuck and Adrian Sargeant
Objectives 360
Introduction 360
The Major Players 362
Other Social Networks 368
Developing a Strategy 369
Formulating a Content Strategy 373
Integrating Your Approach 375
Leveraging Fans, Followers, and Influencers 381
Algorithms and Getting Your Content Seen 384
Measuring the Effectiveness of Your Social Media Efforts 387
Safeguarding Contacts 388
Summary 389
Discussion Questions 389
References 390
13 Donor Retention and Development 392
Objectives 392
Introduction 392
What is Loyalty? 395
Recruiting the Right People 397
Building Donor Loyalty 400
Planning for Retention 410
Relationship Fundraising 414
Relationship Fundraising 2.0 417
Calculating Donor Value 418
Segmenting for Growth 427
Loyalty Metrics 430
Summary 431
Discussion Questions 432
References 432
14 Major Gift Fundraising 435
Robert F. Hartsook and Adrian Sargeant
Objectives 435
Introduction 435
Characteristics of Major Givers 437
Motives of Major Givers 438
Major Donor Recruitment 444
Qualification 447
Summary 460
Discussion Questions 460
References 461
15 Bequest, In Memoriam, and Tribute Giving 463
Claire Routley and Adrian Sargeant
Objectives 463
Estate Planning 467
Who Leaves Bequests? 470
Why Do People Give? 473
Legacy-Specific Motives 477
Soliciting Bequests 481
Talking the Language of Bequest 486
Stewarding Bequest Donors 491
Systems and Processes 493
In-Memory Giving 493
Summary 496
Discussion Questions 496
References 497
16 Planned Giving 501
Matthew J. Beem and Adrian Sargeant
Objectives 501
Introduction 501
Planned Giving Vehicles 504
Donor Motivation 515
Soliciting Planned Gifts 516
Planned Gift Donor Stewardship 519
Planned Gift Donor Appreciation 521
Managing the Planned Giving Function 522
Summary 524
Discussion Questions 525
References 525
17 Corporate Giving and Fundraising 526
Objectives 526
Introduction 526
History 528
Why Do Corporations Give? 529
Forms of Business Support 534
Whom to Ask? 544
The Benefits and Pitfalls 548
Fundraising Planning 549
Summary 557
Discussion Questions 557
References 558
18 Grant Fundraising 562
Objectives 562
Introduction 562
Definitions and Categories 563
Foundation Funding Trends 565
Preparation and Planning 567
Foundation Research 569
Prioritizing Effort 572
Initial Contact 573
The Application/Proposal 573
Building Relationships 579
The Grant Cycle 580
International Funding 584
Summary 585
Discussion Questions 586
References 587
19 Fundraising Events 589
Karin L. Cox
Objectives 589
Introduction 589
A Typology of Events 591
Anatomy of an Event 602
Evaluating Fundraising Events 607
Summary 610
Discussion Questions 611
References 611
20 Managing Fundraising Volunteers 612
Walter Wymer and Adrian Sargeant
Objectives 612
Introduction 612
Formal versus Informal Volunteering 615
Volunteer Recruitment 620
Retention Strategies 632
Program Evaluation 639
Summary 640
Discussion Questions 641
References 641
21 Leading Fundraising Teams 644
Objectives 644
Introduction 644
Trait Theory 645
Behavioral Theories 648
Contingency Theory 650
Contemporary Leadership Theories 657
Summary 666
Discussion Questions 667
References 667
22 Managing Public Trust and Confidence 670
Objectives 670
Introduction 670
Public Trust and Confidence 673
Building Trust in the Sector 675
Growing Confidence in the Nonprofit Sector 679
Building Trust in Organizations 684
Building Confidence in the Organization 685
Summary 688
Discussion Questions 688
References 689
Name Index 691
Subject Index 694
About the Author :
ADRIAN SARGEANT is the director of the Hartsook Centre for Sustainable Philanthropy at Plymouth University in the UK. He is the author and coauthor of several books, including Fundraising Management, Building Donor Loyalty, and Marketing Management for Nonprofit Organizations.
JEN SHANG is director of Research at the Hartsook Centre for Sustainable Philanthropy at Plymouth University and professor of Philanthropic Psychology. The world's only philanthropic psychologist, her work has been featured in The New York Times, The Chronicle of Philanthropy and on National Public Radio.
