Fundraising Principles and Practice

ADRIAN SARGEANT is the Co-Director of the Institute for Sustainable Philanthropy in the U.K. Professor Sargeant is widely regarded as the leading academic authority on fundraising. JEN SHANG is the world’s only Philanthropic Psychologist. She is currently Co-Director at the Institute for Sustainable Philanthropy in the U.K.

• Figures and Tables xviiPreface xxiiiAcknowledgments xxviiThe Authors xxix1 Introduction to the Nonprofit Sector 1Objectives 1Introduction 1A “Third” Sector 2A Tax-Based Definition 6A Structural-Operational Definition 11Size and Economic Significance of the Nonprofit Sector 13Sources of Income 16Philanthropic Income 17Summary 20Discussion Questions 22References 222 The Development of a Profession 25Objectives 25Introduction 25Early American Fundraising 26The Great Philanthropists 29Key Historical Figures 30Toward a Profession 32Looking to the Future 40So Who Are Our Fundraisers? 44Retaining Fundraisers 45Summary 48Discussion Questions 48References 493 The Ethics of Professional Fundraising 53Ian MacQuillinObjectives 53Introduction 54Ethics 101 55Fundraising Ethics 60Applying Normative Fundraising Ethics in Practice 77Summary 82Discussion Questions 84References 854 Individual Giving Behavior 89Objectives 89Introduction 89Who Gives? 90Motivation 94Self-Interest Versus Altruism 96Emotions as Motives 98The Role of Empathy 100The Role of Values 102Modeling Donor Behavior 103Attention 103Perception 106Emotion 108Knowledge and Memory 112Attitudes 116Donor Decision Making 123Feedback 126Alternative Models 128Summary 130Discussion Questions 131References 1325 Social Influences On Giving 141Objectives 141Introduction 142A Social Giving Model 142Societal Environment 143Social Environment 144Summary 161Discussion Questions 162References 1636 Fundraising Planning: The Fundraising Audit 167Objectives 167Introduction 167A Planning Framework 168The Fundraising Audit 171Analytical Tools 185Fundraising Metrics 195Conducting an Audit in a Small Nonprofit 196The SWOT Analysis 197Summary 199Discussion Questions 199References 2007 Fundraising Planning 201Objectives 201Introduction 201Setting Fundraising Objectives 202Key Strategies 206Overall Direction 207Market Segmentation: Segmenting Individual Donor Markets 209Segmenting Business Markets 215Targeting 217Positioning Strategy 219Branding 222Case for Support 232Tactical Plans 233Budget 233Scheduling 235Monitoring and Control 235Selection of an Appropriate Planning Framework 236Summary 236Discussion Questions 238References 2388 Articulating the Case for Support 241Objectives 241Introduction 241Storytelling 255Summary 260Discussion Questions 261References 2619 Assessing Fundraising Performance 265Objectives 265Introduction 265Aggregate Fundraising Ratios 266Conducting a Fundraising ROI Analysis 273Other Performance Measures 278Benchmarking Fundraising Cost 281Sector Benchmarking Initiatives 284Taking Investment Decisions 289Accounting for Risk 300Making the Case for Investment 300Summary 301Discussion Questions 302References 30310 Direct Response Fundraising 305Objectives 305Introduction 305Cornerstones of Direct Response 307Acquisition Planning 309Setting Recruitment Objectives 310Segmentation 311Profiling 313Targeting 314Media Selection and Planning 315Two-Step Campaigns 336The Nature of the Fundraising Message 336Fulfillment 344Budgeting Control and Evaluation 344Summary 346Discussion Questions 347References 34711 Digital Fundraising 349Adrian Sargeant and Steven ShattuckObjectives 349Introduction 349Key Sources of Information 350A Digital Fundraising Mix 351Search Engine Optmization (SEO) 352Digital Public Relations 362Display Advertising 363Opt-In Email 368Viral Marketing 376Website Design and Optimization 382Giving Page Design 383Mobile 390Conclusion 395Discussion Questions 395References 39512 Social Media 397Steven Shattuck and Adrian SargeantObjectives 397Introduction 397The Major Players 399Other Social Networks 406Developing a Strategy 407Formulating a Content Strategy 410Integrating Your Approach 413Leveraging Fans, Followers, and Influencers 418Algorithms and Getting Your Content Seen 421Measuring the Effectiveness of Your Social Media Efforts 424Safeguarding Contacts 426Summary 426Discussion Questions 427References 42713 Donor Retention and Development 431Objectives 431Introduction 431What Do We Mean By Loyalty and Retention? 433Recruiting the Right People 435Building Donor Loyalty and Retention 438Planning for Retention 446Relationship Fundraising 452Calculating Donor Value 459Segmenting for Growth 467Loyalty Metrics 472Summary 474Discussion Questions 474References 47514 Major Gift Fundraising 479Robert F. Hartsook and Adrian SargeantObjectives 479Introduction 479Characteristics of Major Givers 481Motives of Major Givers 483Major Donor Recruitment 490Summary 508Discussion Questions 509References 50915 Bequest, In Memoriam, and Tribute Giving 513Claire Routley and Adrian SargeantObjectives 513Introduction 513Estate Planning 517Who Leaves Bequests? 523Why Do People Give? 524Legacy-Specific Motives 530Soliciting Bequests 534Talking the Language of Bequest 538Stewarding Bequest Donors 540Systems and Processes 541In-Memory Giving 542Summary 546Discussion Questions 546References 54716 Planned Giving 551Matt Beem and Adrian SargeantObjectives 551Introduction 551Planned Giving Vehicles 554Donor Motivation 565Soliciting Planned Gifts 567Planned Gift Donor Stewardship 570Planned Gift Donor Appreciation 571Managing the Planned Giving Function 573Summary 575Discussion Questions 575References 57617 Corporate Giving and Fundraising 579Objectives 579Introduction 579Why Do Corporations Give? 582Forms of Business Support 587Who to Ask? 598The Benefits and Pitfalls 602Fundraising Planning 603Summary 610Discussion Questions 611References 61218 Grant Fundraising 617Objectives 617Introduction 617Definitions and Categories 618Foundation Funding Trends 620Preparation and Planning 622Foundation Research 624Prioritizing Effort 626Initial Contact 626The Application/Proposal 627Theory of Change 636Building Relationships 637The Grant Cycle 638International Funding 641Summary 643Discussion Questions 644References 64519 Fundraising Events 649Karin L. Cox and Adrian SargeantObjectives 649Introduction 649Summary 674Discussion Questions 674References 67520 Managing Fundraising Volunteers 677Walter Wymer and Adrian SargeantObjectives 677Introduction 677Formal Versus Informal Volunteering 680Volunteer Recruitment 685Retention Strategies 697Program Evaluation 704Summary 705Discussion Questions 706References 70621 Great Fundraising 711Objectives 711Introduction 711What Drives Fundraising Success? 713Leadership Styles in Fundraising 717Leadership and Great Fundraising 725The Focus of Great Fundraising Leadership 727Philanthropic Culture 732A Final Word on Donor Centricity 738Discussion Questions 740References 740Name Index 745Subject Index 755