Philanthropy

“a generosity of spirit that can be practiced anywhere and everywhere, at any time, it can accomplish any charitable purpose, and often will be accompanied by public recognition”

James M. GreenfieldFundraising Fundamentals

Paul McKay CAE

Definitions Philanthropy

From Greek “Philos” means “Loving” or “Caring for” and “Anthropos” meaning “other people”

Original Expression

From the myth “Prometheus ” in which a basic and enabling gift is shared with humanity.

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From myth to reason

Prometheus, a ‘titan’ who believed in the essential good of people (mortals)

Zeus, greatest of the “gods”, kept people ‘in the dark’, and without fire

Stealing “fire” from the gods, Prometheus gives people not only a fundamental technology, but also, the gift of optimism, or ‘hope’.

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Key elements of the myth

Means: A resource which enables, supports and sustains

Motive: A perception of need and a compassion to help and equip others

Opportunity: A chance to take advantage of important factors presenting themselves at the right time and in the appropriate situation.

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Concepts

Altruism

Term coined by Auguste Comte Contrasted with “egoism” or

“selfishness” Pure empathy: desire to help others

regardless of self Social exchange: calculated assessment of

benefits and costs of helping others

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Philanthropy: dynamics of ideas

The ‘Dark Ages’

The Renaissance

The Industrial Age

The Modern - Post Modern World

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Generosity

“Generosity is essential to human life. It expresses an inner commitment that guides how we understand and value others, as well as ourselves…

“It Leads to relationships that reflect and engage us in commitments beyond ourselves.”

Robert E. FogalPaul McKay CAE

Why Generosity?

..“to live generously is to behave in ways that exceed what is required, customary, or expected in light of one’s environment and circumstances”

Robert E. Fogal expands on Martin’s definition of ‘giving generously’

Paul McKay CAE

What is a Charitable Act?

“A social exchange that occurs each time a gift is made.”

James M. GreenfieldFundraising Fundamentals

Paul McKay CAE

Preparation builds confidence “How we prepare our volunteers and how

we prepare our organizations to raise the money, and to receive, and to steward the gifts – is critically important to instilling the confidence we want our fundraising teams to have.

Andrea McManus, CFRE

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Fundraising Nonprofit organization fundraising remains

an immense, diversified, sophisticated and ‘bullish’ business. Although certainly not recession-proof, it’s an enterprise that continues to grow…despite economic swings or the Dow Jones average.”

L. Peter EdlesFundraising: Hands-On Tactics for Nonprofits

Paul McKay CAE

Canada Survey of Giving

84% of the population, aged 15 +, made a donation to a charitable or not-for-profit organization

47%, volunteered their time Average donation was $446 per donor Those who gave the most tended to be

older, have higher household income, formal education, and attend meetings or services regularly.

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Charitable Sector in Canada

Major source of jobs and stimulus 85,000 registered charities 1.2 million paid staff 6.5 million volunteers $190 billion in annual revenue

Andrea McManus, Chair, AFPMay 2012, Submission - Presentation

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The Case

The combination of reasons advanced by an institution or agency in justifying its appeals for support, with emphasis on its past, present and potential services.

AFP CFRE Review Glossary of Terms

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Know the Customer

“The purpose of a business is to create and keep a customer”

“The aim of marketing is to know and understand the customer so well the product sells itself”

“Unless commitment is made, there are only promises and hopes, but no plans”

Peter Drucker

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Know the Prospect

“The more personal and sincere you are with people you are cultivating, the quicker you will be able to make the ask.”

Laura Fredericks

The A$K: How to Ask Anyone for Any Amount for Any Purpose

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Giving

Nearly always implies a connection to the organization

Satisfies one or more personal needs May provide some type of return in

what the organization will do for them or for someone close to them Effective fundraisers seek to discover

what is important to a donor

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In your opinion

Why do people give?

Why do people give to your organization, specifically?

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Key Fundraising Activities

Research Marketing Relationships Ethics and Accountability

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In your opinion

Why is research important

What research methods are available?

What research do you do in your organization?

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Research supports Fundraising

by: Finding out what people want Identifying potential donors Providing information about them Ensuring proper resource allocation Supporting planning and evaluation Rating relationship-building priorities

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In your opinion

Why is marketing important?

What forms does marketing take?

How does your organization use marketing to support fundraising?

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Marketing supports Fundraising

by: Communicating purpose and actions Promoting mission and case Encouraging participation Developing donations Informing about results Advocating fundraising purposes

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In your opinion

Why are relationships important?

How do relationships support fundraising?

What particular things does your organization do to create or improve relationships?

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Relationships support Fundraising

by Adding prospects to donor base Supporting other contributions Engaging stakeholder participation Integrating research and marketing Enhancing insight into interests Supporting stewardship of funds

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In your opinion

Why are ethics and accountability important to fundraising?

What examples are there that demonstrate their importance?

What does your organization do to ensure ethical conduct?

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Ethics support Fundraising

by ensuring Trust and confidence Asset management and accounting Proper data collection and use Donor privacy rights Reporting requirements fulfilled Programs executed as promised Donor loyalty

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Possible Question

The first step in developing a strategy for approaching prospective donors is to:

A) research current donors B) evaluate previous campaigns C) use direct mail to attract donors D) establish goals, strategies and priorities

Source: Q18 Sample Questions & AnswersPaul McKay CAE

Answer to Question 18

A) Research Characteristics of Donors

By researching donors, an organization develops a profile and identifies those most likely to give. Research provides insight into motivations for giving, identifies interests, and reveals characteristics that can lead to developing strategies.

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Possible Question

Before beginning to write the case for support for a campaign, it is most important to: A) Understand donor target markets B) Create a budget for design & writing C) Outline your organization’s objectives D) Draft the design and layout

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Answer to Question 8

A) Understand donor target markets

Preparation logically begins with the acquisition of a better understanding of what the interests, predispositions and motivations, within these markets might be when it comes to making a gift to your cause.

Paul McKay CAE

Show me the Money

“Money is the language of commerce. It lubricates utilitarian transactions between people. Money is also a symbol. With it, we express many of the intangibles that define our species. The values that we express with our money may be constructive or destructive…” Robert E. Fogel, Why Generosity?

Paul McKay CAE