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Library of Congress Cataloging-in-Publication Data Ciconte, Barbara L. Fundraising basics : a complete guide / by Barbara L. Ciconte and Jeanne G. Jacob. p. cm. Includes bibliographical references and index. ISBN 978-0-7637-4666-7 (pbk.) 1. Fund raising. I. Jacob, Jeanne Gerda. II. Title. HG177.C53 2009 658.15′224—dc22 2008022736

6048 Printed in the United States of America 12 11 10 09 08 10 9 8 7 6 5 4 3 2 1

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To my parents, Barbara and Lou Buschlinger, who throughout my life have been a constant source of love and support, and to my husband, Tony Ciconte, without whose support, love, and understanding this book could not have been written.

Barbara L. Ciconte, CFRE

In memory of my mother, Clara Cypreansen Jacob, who always told me I could do anything. Her indomitable Norwegian strength and spirit instilled in me the desire to try all things and to do them all with the best of my ability. To my husband, Gerry Frank, without whose love, support, and patience, I would not have been able to write this book.

Jeanne G. Jacob, CAE, CFRE

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Contents

Foreword

Preface

Acknowledgments

About the Authors

Chapter 1 Ensuring the Future of Philanthropy—An American Tradition—ThroughAccountability and Ethical Fundraising

The Nonprofit Sector

Definition of Philanthropy

History of Philanthropy in America

A Tradition of Volunteerism

The Relationship Between Volunteering and Charitable Contributions

How Generous We Are as a Nation

Profile of the Changing Donor

Indicators That Affect Giving and Volunteering

How to Create a Philanthropic Environment

The Accountable Nonprofit Organization

Assess Your Organization’s Accountability

Ethical Standards and Practices

Appendix 1–A: A Donor Bill of Rights

Appendix 1–B: A Checklist: Selected Legal Precautions to Protect Your Organization and Distinguish It as aPotential Recipient of Gifts and Grants

Chapter 2 The Many Roles of Board, Staff, and Volunteers in Fundraising

Selection of Volunteers

Volunteer Job Descriptions

Knowing Who You Need on Your Board

What to Look for When Recruiting Board Members

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Job Descriptions for Board Members

Setting Clear Goals and Expectations for the Board

Working with an Existing Board

Techniques to Motivate the Board into Action

Board Training and Development

Advisory Committees to Boards for Fundraising

Evaluating Board Members’ Effectiveness

How to Retire a Board Member

Role of Staff in Fundraising

Communications Between Board and Staff

Staff Expectations for Board Members

Board Members’ Expectations for Staff

Appendix 2–A: Points of Light Foundation—Directory of Volunteer Centers

Appendix 2–B: State Volunteer Service Commissions

Appendix 2–C: Samples of Board Job Descriptions

Appendix 2–D: An Excellent Resource on Board Governance

Appendix 2–E: Sample of a Board of Directors Governing Mission

Appendix 2–F: Developing an Effective Fundraising Board

Appendix 2–G: Nonprofit Board of Directors Evaluation Instrument

Appendix 2–H: A New Way to Conduct Meetings

Chapter 3 Building a Professional Development Operation

The Need for a Development Office

Major Functions of the Development Office and Staff and Resources Needed

Development Policies and Procedures

The Basic Requirements for Setting Up a Development Office

The Development Office Budget

Various Models for a Development Office

Knowing When to Move from the One-Person Shop to a Larger Operation

Expectations for the Development Office

Appendix 3–A: Sample Gift Acknowledgment Letter

Appendix 3–B: Sample Sponsor Acknowledgment Letter

Appendix 3–C: Organizations That Help Provide Used Computers to Charities

Chapter 4 Your Fundraising Database—A Tool for Success

Need for Data Management

The Need for a Technology Plan

Assessing Your Needs

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A Comprehensive Fundraising Data Management System

Evaluating Fundraising Software

Using an Application Service Provider

The True Costs of Implementing a New System

An Investment, Not an Expense, for Your Organization

Working with a Technology Consultant

Tips for Building Your Database

Appendix 4–A: Ten Common Mistakes in Selecting Donor Databases (and How to Avoid Them)

Appendix 4–B: A Sampling of Companies That Provide Software for Fundraising

Chapter 5 Developing and Evaluating Your Fundraising Plan

The Critical Need for Planning

Role of Strategic Planning in Fundraising

The Development Audit

Setting Realistic Goals for Your Fundraising Program

Involving Board Members and Volunteers

Preparing a Budget

Stages of a Development Program

Steps to Develop Your Fundraising Plan

How Your Return on Investment Is Important to Planning

The Evaluation Process

Appendix 5–A: Sample Action Plan Calendar

Appendix 5–B: Fund Development Plan: Fiscal Year 2007 Goals

Appendix 5–C: Sample Fundraising Plan Template

Chapter 6 Building Relationships for Your Organization Through Annual Giving

The Role of Annual Giving

The Need for Donor-Centered Fundraising

Defining the Case for Support—Your Competitive Edge

Solicitation Methods Used in Annual Giving

Recruiting Volunteer Leaders

Working with the Steering Committee

Training and Managing Volunteers

Using Gift Clubs to Motivate Increased Giving

Recognizing Annual Donors

The Annual Campaign Calendar

Effective Techniques to Increase Your Annual Campaign

Evaluating the Campaign

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Annual Giving and Capital Campaigns

Annual Giving for Associations

Chapter 7 Using Direct Mail, Telemarketing, and the Internet to Build a Donor Base

Using Direct Mail

The Donor Acquisition Program—An Investment for the Future

Testing and Analyzing Direct Mail Packages

Types of Direct Mail Donors

Donor Renewal Programs

Upgrading Donors

Reinstating Lapsed Donors

Saying Thank You

Trends in Direct Mail Fundraising

Using Telemarketing in Fundraising

Direct Mail and Telemarketing—A Winning Combination

Using the Internet for Fundraising

Ways to Build Your Donor Base

Tips for Writing E-mail Solicitations

Working with Consultants and Vendors

Appendix 7–A: Case Study: Direct Mail Acquisition: Community Council for the Homeless

Appendix 7–B: Case Study: Telemarketing Campaign

Appendix 7–C: Care2 Case Study: Online Recruitment of Donors

Chapter 8 Prospect Research

Why Research Is Important

How to Identify Prospects

The Prospect Profile

Staffing and Organization of the Research Effort

Working with Research Consultants

Sources of Information

Using Volunteer Screening Committees

Public Information

Using the Internet

Wealth Identification Through Electronic Screening

The Role of the Development Officer

Other Benefits of Prospect Research for an Organization

Ethical Issues and Confidentiality

Appendix 8–A: A Case Study: Partnership in Philanthropy

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Appendix 8–B: The Foundation Center’s Regional Library/Learning Centers

Appendix 8–C: Researching Government Grants

Appendix 8–D: A Case Study: The Cleveland Clinic

Appendix 8–E: Statement of Ethics

Chapter 9 The Use of Personal Solicitation in Major Gift Fundraising

What Is a Major Gift?

The Importance of a Major Gifts Program

Elements of a Major Gifts Program

Evaluation of Prospects

How to Get Started

Managing the Solicitation Process

Why Major Donors Give

Getting Involved—What Motivates Today’s New Philanthropists

An Investment Model of Giving

An Update on Venture Philanthropy

Ways to Involve and Cultivate Relationships with Prospects

The Successful Solicitation—Overcoming the Fear of Asking

The Successful Solicitation Visit

How to Say Thank You

Ways to Recognize Major Donors

Stewardship—The Practice That Ensures Future Major Gifts

Appendix 9–A: The Donor’s Turn: People Who Make a Difference Through Generous Giving

Appendix 9–B: Sample Gift Proposal—Formal, Illustrative, and Personal

Appendix 9–C: Sample Gift Proposal—By Letter—Conversational, Covering All the Details

Chapter 10 Corporate Fundraising

The History of Corporate Philanthropy

How and Why Corporations Give

Corporate Volunteers

Corporate–Private Foundation Partnerships

Research—Selecting the Right Corporation for Support

Resources for Corporate Grant Information

Writing the Corporate Proposal

Submitting the Proposal

Requests to International Corporations

Waiting for the Decision

Building Coalitions

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Thanking the Corporate Donor

Evaluating the Project

Reporting to Corporations on Use of Funds

Corporate Matching Gifts

Cause-Related Marketing—Doing Well by Doing Good

Joint Venture Marketing/Passion Branding

Advancing the Corporate Image

Corporate Sponsorships

Noncash Assistance from Corporations

Other Forms of Corporate Support

Declining Corporate Support Because of Mergers, Acquisitions, and Scandals

The Future of Corporate Giving

Appendix 10–A: Sample of a Coalition That Successfully Raised Corporate Funds

Appendix 10–B: Resources for Researching Prospective Corporate Donors

Appendix 10–C: Sample Notice of Matching Gift Program

Appendix 10–D: IRS Issues Final Corporate Sponsorship Regulations

Appendix 10–E: Massachusetts Bar Association Policy for Member Benefit Programs

Appendix 10–F: Resources for Nonprofit Groups Seeking Donated Products

Appendix 10–G: A Case Study: Raising Corporate Dollars

Appendix 10–H: Case Study: Raising Corporate Dollars for the First Time

Chapter 11 Raising Money from Foundations

Definition of a Foundation

Types of Foundations

Planning an Effective Foundation Relations Program

The Solicitation Process

The Proposal Process

The Proposal Is Accepted

The Proposal Is Rejected

Trends in Foundation Fundraising

Appendix 11–A: Sample Letter of Inquiry to a Foundation

Appendix 11–B: Donors Forum of Wisconsin Common Grant Application

Appendix 11–C: Sample Proposal

Appendix 11–D: Brief Proposal Letter

Chapter 12 Special Events—The Fun in Fundraising

The Fun in Fundraising

The Role of Special Events in Fundraising

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Cost Versus Time of Special Events

The Role of Volunteers

The Role of Staff

Donated Services and Goods

How to Select the Best Location

How to Budget for a Special Event and Then Manage It

Planning the Perfect Event

What Must Be Done After the Event Is Over

Contracting with Outside Vendors

Using an Event Management Group

IRS Regulations Regarding Special Events

Appendix 12–A: Case Study: How to Involve the Younger Generation in Special Events: Reaching the NewKids on the (Philanthropic) Block

Appendix 12–B: Sample Save the Date Card

Appendix 12–C: Example of an Event Planned Around a Holiday Theme

Appendix 12–D: Samples of Materials Used with Event Invitations

Appendix 12–E: Checklists for an Event or Meeting

Appendix 12–F: Sample of a Postcard Used as an Event Invitation

Appendix 12–G: Five Tips for Making Fundraising Event Registration More Productive

Appendix 12–H: Internal Revenue Service (IRS) Information—Charitable Contributions—Substantiation andDisclosure Requirements

Chapter 13 Fundraising Communications—Electronic and Print

Communication Methods Have Changed

Communications in Development

Electronic Communications

The Need for Printed Publications

Publications Represent the Organization

How to Produce Low-Cost, High-Quality Pieces

Use of Consultants in Writing Publications

Coordinated Look for Electronic and Print Materials

Appendix 13–A: 50 Ways to Win Web Traffic

Appendix 13–B: Example of an Organization’s Home Page with a Link to a Donation Page

Appendix 13–C: Example of a Short Article Placed in an E-Newsletter to Encourage Planned Gifts

Appendix 13–D: Sample Case Statement Developed into a Fundraising Brochure

Appendix 13–E: Sample Question and Answer Brochure for a Capital Campaign

Appendix 13–F: Sample of a Foundation Annual Report in Print Format

Appendix 13–G: Example of an Article Placed in a Newsletter to Announce Endowment Giving

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Appendix 13–H: Sample Pledge Forms

Appendix 13–I: Sample Reply Cards

Appendix 13–J: Sample of a Brochure Developed to Encourage Memorial Gifts

Appendix 13–K: Sample of a Special Event Save the Date Notice Printed in a Magazine

Appendix 13–L: Example of a Special Information Card Included with a Special Event Invitation

Appendix 13–M: Case Study—The Philanthropic Brand: Lessons for Aging Service Providers

Chapter 14 Capital Campaigns

What Is a Capital Campaign?

Rules for Capital Campaigns

The Relationship Between Capital Campaigns and Annual Campaigns

Campaign Readiness

The Feasibility Study

Developing a Case Statement

Campaign Structure and Timetable

Methods of Giving to a Campaign

Using Commemorative Opportunities to Encourage Gifts and Recognize Donors

Campaign Materials

Setting Up Internal Systems

Maintaining Relationships with Leadership Donors

What to Do When Campaign Momentum Wanes

Campaign Evaluation

Appendix 14–A: Three Keys to a Successful Capital Campaign

Appendix 14–B: Case Study: Getting Ready When You Are Not Ready

Appendix 14–C: Campaign Planning: Sample Letter of Invitation for Feasibility Study Interview

Appendix 14–D: Example of a Feasibility Study Interview Questionnaire

Appendix 14–E: Capital Campaign Phases

Appendix 14–F: Campaign Activities Timetable

Appendix 14–G: Donor Gift Recognition Opportunities Guide

Appendix 14–H: Example of an Ask Letter for a Leadership Gift

Appendix 14–I: Letter Requesting a Meeting to Seek a Major Gift for a Campaign—But Not a LeadershipGift

Appendix 14–J: Letter to Campaign Chairs to Update Progress of Campaign After a Major NationalCatastrophe

Chapter 15 The Basics of Planned Giving

Definition of Planned Giving

The Steps to Establish a Successful Planned Giving Program

Identifying the Best Prospects

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Marketing Your Planned Giving Program

The Role of Volunteers

The Bequest Society: The Simplest Way to Begin

How Planned Giving Fits into a Major Gifts Program

Appendix 15–A: Case Study: The Development of a Planned Giving Program

Appendix 15–B: Sample Gift Acceptance Policies and Procedures

Appendix 15–C: Thirty-Four Planned Giving Do’s and Don’ts

Appendix 15–D: Sample of a Brochure That Combines a Request for Planned Gifts with Outright Direct Gifts

Appendix 15–E: Samples of Generic Planned Giving Brochures

Appendix 15–F: Sample of a Customized Planned Giving Brochure

Appendix 15–G: Planned Giving Newsletters

Appendix 15–H: Example of How to Market Planned Giving Programs Through the Web

Appendix 15–I: National Companies Providing Planned Giving Materials and Services

Appendix 15–J: Glossary of Planned Giving Terms

Chapter 16 Association Foundation Fundraising

Overview of Association and Foundation Structures

The Foundation’s Relationship with Its “Parent” Association

Trends in Accountability

Board Integration

Foundation Staffing

Core Funding for the Foundation

Overview of Financial Resources

Fundraising Integration with the Association

Types of Fundraising Available to Association Foundations

Promotion and Marketing

Forging a Future Together

Appendix 16–A: Association Foundation Group 2003 Issues Survey

Appendix 16–B: Case Study: Should an Association’s Dues Increase Take Precedence over the Foundation’sAnnual Appeal?

Appendix 16–C: Sample of an Association’s Dues Notice with a Voluntary Contribution Checkoff to Supportthe Association’s Foundation

Appendix 16–D: Sample Association Foundation Annual Appeal Brochure

Appendix 16–E: Memorandum of Understanding

Appendix 16–F: Sponsorship Opportunities Summary: 2007 ASCE Civil Engineering Conference andExposition

Appendix 16–G: Seven Habits of Highly Successful Foundations

Appendix 16–H: Model Affiliation Agreement Between an Association and Related Foundation

Appendix 16–I: Association Foundation Fundraising Questions

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Appendix 16–J: Example of Letter Received by a Type 3 Supporting Foundation as a Result of PensionProtection Act of 2006

Chapter 17 Fundraising with Affiliates or Chapters

What Are Affiliates and Chapters?

Relationships with Affiliates or Chapters

Who Does the Fundraising?

Advertising, Branding, Communication, and Marketing

Training

Helping Affiliates Identify and Recruit Talent

Resolving Conflicts

Appendix 17–A: A History of Flexibility and Support—The Relationship Between the American LibraryAssociation and Its Chapters

Appendix 17–B: Example of an Association Dues Renewal Notice with Chapter Dues Included

Appendix 17–C: Sixty Fundraising Ideas for Local Chapters or Affiliates

Appendix 17–D: Example of a National Organization Assisting Local Affiliates with Personnel Recruitment

Appendix 17–E: Model Chapter Affiliate Agreement Between an Association and Its Chapters

Chapter 18 Working with Consultants: Hiring and Using Consultants in Your FundraisingPrograms

Determining the Need for a Consultant

What Consultants Can Offer to a Development Operation

How to Convince Your Board and Staff to Use a Consultant

What to Expect from a Consultant

How to Find a Consultant Who Can Work with You

How to Hire a Consultant

How to Develop Trust with a Consultant

Determining the Amount to Pay Consultants

The Contract

Fees and Expenses

Evaluating the Work of a Consultant

Employee or Consultant According to the IRS

Appendix 18–A: Twelve Reasons to Use a Consultant

Appendix 18–B: Criteria for Retaining Fundraising Counsel

Appendix 18–C: Eighteen Advantages of a Professional Consultant

Appendix 18–D: Sample Request for Proposals (RFPs)

Appendix 18–E: Sample Contract Between a Consultant and an Association

Chapter 19 Fundraising as a Career

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The Characteristics of a Successful Fundraiser

Career Mapping

Career Questions for All Disciplines

Salaries

Ethics in Fundraising

The Fundraiser as a Donor Steward

Growing Career Opportunities

Conducting a Job Search

The Importance of Networking

Certification

Education

Turning Fundraisers into CEOs

Appendix 19–A: Seven Ethical “Dilemmas” in Philanthropic Fundraising

Appendix 19–B: Becoming a CFRE

Appendix 19–C: Advanced Certified Fund Raising Executive (ACFRE)

Appendix 19–D: College and University Centers Specializing in the Study of Philanthropy

Appendix A Compliance with Fundraising Laws and Regulations

Bibliography

Glossary

Index

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Foreword

Unprecedented growth of philanthropy during the last years of the 20th century caused some to say that the beginning of the 21st century would be the golden age of philanthropy. But a cooling off of the stock market, the attacks of September 11, 2001, and other global conflicts slowed the growth of philanthropy. Only in 2005 did the rate of growth show a significant increase, growing from $245.22 billion to $260.28 billion (Giving USA Foundation, 2006). This growth continued through 2006 with a record- breaking $295.02 billion in giving, a 4.2 percent increase from 2005. Even then, half of the growth in 2005, according to Giving USA, was due to the unprecedented outpouring of support for the Asian tsunami and Gulf Coast hurricanes. Approximately one-third of the growth in philanthropy in 2006 was also attributable to disaster relief giving. However, incomes continue to grow, the stock market has built wealth, and individuals are still forming new private foundations. Giving is now, and has been, above the long- term trend line since 1999.

The potential for philanthropy is great, but the environment for philanthropy is also challenged. There is the potential to repeal permanently the estate tax, with potential impact on philanthropy, especially planned giving. There is heightened interest in Congress to increase regulation of nonprofit organizations. New donors and funders are calling for higher levels of accountability, assessment, and impact analysis. The so- called new donors challenge many nonprofit organizations to do things differently. Their approaches are often unique, with many new donors doing things as differently from one another as from the previous generation of donors. New and unique models of giving are being practiced by an increasing number of philanthropists.

Institutional philanthropy has changed as well. The number of foundations has tripled since 1975 (Foundation Center, 2006). Bill Gates alone has established what is now the largest U.S. foundation, and Warren Buffett’s pledge of more than $30 billion to be distributed through the Gates Foundation has effectively doubled the size of the foundation. Thanks to the new foundations and increases in the equities market, foundations displaced bequests as the second largest source of philanthropic support in 1992 and this gap widens each year (American Association of Fundraising Counsel,

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1993). New forms of philanthropy are evolving, including giving circles, women’s funds, social investing, social entrepreneurship, and micro loans, among others.

Those beginning careers in fundraising today are entering a philanthropic environment much more complex than it was even seven years ago when the Second Edition of this text was published. Understanding the fundamental ethical and technical standards for success in fundraising is essential. Passion for a good cause is an excellent basis for doing fundraising work. But, it is no longer sufficient for achieving success. Applying good practice and maintaining high ethical standards are necessary complements to belief in the cause. In Fundraising Basics: A Complete Guide, Barbara Ciconte and Jeanne Jacob have provided an excellent introduction to the ethical and technical standards for those getting started in fundraising.

They open with an introduction that provides the tradition and context for American philanthropy. This is important grounding for every fundraiser. All of us have the responsibility not only to raise money for our organizations, but also to understand and enhance the tradition of volunteerism and philanthropy as well. The authors then take us through the elements of a total development program and the strategies and techniques for reaching success.

Following are two basic truths about ethical philanthropic fundraising:

• Fundraising is a privilege based on organizational mission. • Successful fundraising begins with the board.

In Chapter 1, the authors stress the importance of developing mission-driven fundraising programs that articulate a clear and compelling case for support. While they return to the case for support in various aspects of fundraising, such as the role of annual giving, direct mail usage, major gifts, and corporate and foundation fundraising, they introduce the reader to the importance of the case for support early in the text. An organization must seek philanthropic support based on the values it expresses in fulfillment of community or public needs. The case for support elevates fundraising activity to a rational discussion of fulfilling community needs. In this edition, the authors provide expanded information on the case for support.

They also stress the importance of boards and volunteers. Chapter 2, “The Many Roles of Board, Staff, and Volunteers in Fundraising,” explores the work of fundraising. In an era when there is increased pressure for staff members to conduct more fundraising activity, including gift solicitation on their own, it is refreshing to find the authors’ discussion of the important role of boards and volunteers in fundraising before they introduce fundraising strategies and techniques. They add a new section here on board assessment.

In this text, these two respected fundraisers, authors, and teachers provide a comprehensive overview of the total development program, the sources of philanthropy, and the strategies for achieving success. There are separate chapters on annual giving,

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major gifts, capital campaigns, and planned giving. They introduce the reader to such strategies as direct mail and telemarketing, prospect research, personal solicitation, and special events. This Third Edition also includes updated information on e-philanthropy and its impact on raising funds plus the use of technology in communication. They help us think of technology as integrated to all we do in fundraising from prospect research to communications for gift solicitation to database management. And, they focus on individuals separately (prospect research), corporations, and foundations as sources of support. With separate chapters on each of the elements, the reader can return easily to find answers to specific questions.

The authors open this text with a context piece focused on the tradition of American philanthropy, and they end with a context piece on fundraising as a career. As we take up our work as fundraisers, it is helpful to know about our colleagues, and what their motivations and expectations are, and the dynamics and tensions in making a career in fundraising. The expanded section on ethics and accountability provides guidance on an essential element of building a successful career in fundraising. Each of us working in fundraising has a responsibility to all fundraising colleagues. In our study of fundraisers, Peg Duronio and I (Duronio and Tempel, 1997) asked this question about fundraising: “Why do the actions of so few have such a large impact on so many?” Those of us who work in the nonprofit sector are stewards of the public trust. As such we must hold ourselves to a higher standard, to what Independent Sector calls “Obedience to the Unenforceable” (Independent Sector, 2002). In the nonprofit sector, especially in fundraising, the bad act of one is easily transferred by the public to all others. This continues to be true today. According to several recent studies, public trust in nonprofit is increasing but we still have much work to do in building the level of trust that will ensure philanthropic support. As we take up our work in fundraising, we must be committed to the notion that ethical philanthropic fundraising inspires trust in the nonprofit sector. We must be committed to high standards of technical practice and ethical behavior to help ensure this trust. Ciconte and Jacob give us directions for developing both.

Eugene R. Tempel, EdD, CFRE President, Indiana University Foundation Former Executive Director The Center on Philanthropy, Indiana University

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REFERENCES American Association of Fundraising Counsel (AAFRC) Trust for Philanthropy. 1993. Giving USA. Indianapolis, IN:

AAFRC Trust for Philanthropy. AAFRC Trust for Philanthropy. 1999. Giving USA. Indianapolis, IN: AAFRC Trust for Philanthropy. AAFRC Trust for Philanthropy. 2000. Giving USA. Indianapolis, IN: AAFRC Trust for Philanthropy. Duronio, M. A., and E. R. Tempel. 1997. Fund raisers: Their careers, stories, concerns, and accomplishments. San

Francisco: Jossey-Bass Nonprofit Sector Series. Foundation Center. 2006. Foundations today series, foundation yearbook: Facts and figures on private and

community foundations. New York: Foundation Center, 28, 33. Giving USA Foundation. 2006. Overview of giving in 2005, Key findings. Glenview, IL: Giving USA Foundation, 11. Giving USA Foundation. 2007. Glenview, IL: Giving USA Foundation. Independent Sector. 2002. Ethics and the nation’s voluntary and philanthropic community: Obedience to the

unenforceable. Washington, DC: Independent Sector.

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Preface

We are delighted with the overwhelmingly positive feedback we have received since Fundraising Basics: A Complete Guide was first published in 1997. During the past 11 years we have heard from fundraising professionals around the world who told us that our book was a tremendous help to them in developing successful fundraising programs for their organizations. Many professionals also let us know that our book was a terrific resource to use when reviewing for the Certified Fund Raising Executive examination. Fundraising consultants shared with us that they not only recommended our book to their clients but also found it useful themselves in serving their nonprofit clients. Workshop leaders and trainers thanked us for writing a book that is so easily put to use for their seminars and workshops. They especially liked the sample forms used throughout the chapters that are readily adaptable to nearly every organization’s needs or circumstances. In this Third Edition, these forms also are included on a CD-ROM for even easier use. Our thanks to all who shared their thoughts and comments with us.

The idea for Fundraising Basics, more commonly known as the “purple” book (published by Jones and Bartlett Publishers), first arose from our need for a text that we could use with our students at The George Washington University’s Center for Continuing Education in Washington, DC, and at other fundraising trainings and workshops. However, we know now that this book can also be used by all who wish to learn more about fundraising—those seeking to become development professionals, those raising money for or sitting on the boards of nonprofit organizations, and those who simply want to know how to raise money in a professional manner.

With more than 60 years of fundraising experience between us, this book is a collection of our own and our colleagues’ personal experiences in capital campaigns, special events, annual campaigns, planned giving, sponsorship solicitation, board development, major gift solicitation, and managing the fundraising for supporting foundations. This book attempts to address all aspects of the development field to provide an overview for its readers. The extensive research undertaken provides insight into many successful fundraising programs, and the varied opportunities available to those wishing for a career in the development field. In this updated and expanded Third

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Edition, we include new areas such as ethics and accountability and national-affiliate relations as they relate to fundraising, as well as update the reader on the major impact technology has made in this field. The reader will find more case studies and examples that allow them to learn from the experiences of others—one of the best ways for fundraisers to gain knowledge of successful development opportunities.

The chapters remain purposely short, as the text is intended as an overview. For those wishing to read more extensively on a subject, additional resources are suggested in the bibliography. Since we believe a key trait of most development officers is a good sense of humor, we also continue to highlight the chapters with cartoons provided by Mark Litzler, Joseph Brown, and Carole Cable. Fundraising is not all work; it can be, should be, and most often is fun!

We welcome readers to the professional world of fundraising, a world we thoroughly enjoy. We hope we have again provided a useful guide to successful fundraising that you will want to add to your professional library and continue to use in your professional work.

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Acknowledgments

We wish to acknowledge the many organizations we have served during our careers and continue to serve as staff, consultants, and volunteers for providing us with opportunities to grow and develop as fundraising professionals and to share our skills and talents to advance their varied missions.

In this updated and expanded Third Edition of Fundraising Basics: A Complete Guide, we wish to recognize a special group of colleagues who made significant contributions of their own knowledge, expertise, and experience to assist with some of the chapters. A very special thank you to the following fundraising experts:

• Tony Ciconte, Senior Vice President, Technical Services, Donor Strategies, Inc., Chevy Chase, Maryland

• Gerry Frank, President, INNdependent Management Group (IMG), Alexandria, Virginia

• James P. Gelatt, PhD, President, Prentice Associates, Lake Monticello, Virginia • Tara L. Hoke, Esq., Assistant General Counsel, American Society of Civil

Engineers, Reston, Virginia • Kathleen E. Pavelka, CFRE, Founder and President, Telecomp, Inc., Rochester, New

York • Maria Semple, Principal, The Prospect Finder, Bridgewater, New Jersey • Barbara Waldorf, CAE, PRC, Director of Customer Insight and Development,

United States Bowling Congress, Greendale, Wisconsin • Sandra Walter-Steinberg, Chief Strategist, Sandra M. Walter & Associates

Consulting, Rockville, Maryland • Peter C. Wolk, Esq., Founder and Executive Director, National Center for Nonprofit

Law, Washington, DC • M. Sue Woodward, CFRE, President, Woodward Associates, Potomac, Maryland

We also wish to acknowledge the many colleagues who submitted helpful

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information and resources to this new edition. You will find their names noted throughout the book in source lines.

Other important people to recognize are the students who participated in our training classes throughout the years, many of whom chose to pursue careers in development. Their eagerness to learn about fundraising and to become professional fundraisers inspires us to share with future students our knowledge and enthusiasm for our work. We are proud of the work they are undertaking as development professionals for various nonprofit organizations in the United States, Canada, and around the world.

We are indebted to others for their assistance with this project, especially the team at Jones and Bartlett Publishers. Our very special thanks to the staff of AFP, especially Jan Alfieri and the Resource Center staff who so willingly researched topics for us and were always cheerful in their assistance and to Ann Kashnikow for the hours of research she undertook to verify details for information available from the Internet.

Thanks also to Mark Litzler who provided so many of the cartoons in this book. Litzler’s cartoons have appeared in numerous publications including The Harvard Business Review, Barrons, The Wall Street Journal, The Chronicle of Higher Education, and The Chronicle of Philanthropy. He is the Executive Director for the Saint Luke’s Hospital Foundation in Kansas City, Missouri.

Also, our thanks once again to our husbands, Tony Ciconte and Gerry Frank, and to our many friends and family for their continued support, encouragement, patience, and understanding during our work on the book. We greatly appreciate the lasting friendships of the women in the Ladies of the Club (Carolyn Boyer, Janice Callahan Eisert, Ricki Green Harvey, Judith Hunter, Terry Kees, Carol Fenske Orenstein, Anne McGregor, Suzie Alexander Gauthier, Barbara Valentino, and Carolyn Zollar), and thank them for listening to us talk about writing each edition of the book and for understanding why we had to miss so many events during these times. Special thanks to all of the others who have lived through this Third Edition with us: the Baeders (Janet, Bill, Amanda, and Anna), the Chadbournes (Kathleen, MayBelle, and Tom), the Cicontes (Robert, Eun Ha, and Pamela), Alice Collier Cochran, Mary Fran Coffey, Karen Gardner, Susan Gaumont, Ricki and Ralph Harvey, Jean and Chuck McDanal, Melanie Miller, Helen Ross, Bobbie and Mark Ruschman, Marcia Saumweber, Barbara Valentino, and Barbara Waldorf.

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About the Authors

BARBARA L. CICONTE, CFRE

Barbara L. Ciconte, CFRE, is Senior Vice President, Consulting Services, for Donor Strategies, Inc. (DSI), a professional and technical services firm providing consulting services in nonprofit management, fundraising, development planning, board and staff training, and information systems to the nonprofit sector. DSI also offers MissionAssist, a highly affordable, comprehensive fundraising database system for nonprofits. Ms. Ciconte works with local, regional, and national organizations in strategic planning and assists them in building more effective resource development programs in annual, capital, and endowment giving; major gifts; planned giving; corporate and foundation relations; special events; as well as training board members, volunteers and staff. Her clients include associations, healthcare institutions, educational organizations, human services agencies, and public policy organizations. A sampling of clients served include the National Association for the Education of Young Children (NAEYC), Association of Small Foundations (ASF), Inova Health System Foundation, Sibley Memorial Hospital, Foundation for National Institutes of Health (FNIH), Falls Church Education Foundation, The Washington Center for Internships and Academic Seminars, New Neighbors Education Center of Northern Virginia, Community Ministries of Rockville, Reston Interfaith, Northern Virginia Family Service, The Campagna Center, Joint Center for Political and Economic Studies, National Academy of Social Insurance, and the Pacific Council on International Policy.

Prior to becoming a consultant, she was the Associate Dean for Development and Alumni Relations at the Washington College of Law at American University (AU) where she was responsible for the overall development, alumni relations, and publication programs for the college. As the law school’s Director of Development, she managed the college’s successful $20 million capital campaign for a new facility and programs. Other positions held at AU during her 13-year tenure included Director of Major Gifts and Director of the Annual Fund. Before joining the staff of AU in 1986, she was Fundraising Projects Manager for a national advocacy organization, where she

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established the organization’s first major gifts program. Ms. Ciconte is a former member of the Board of the Association of Fundraising

Professionals (AFP) and served for two years as Vice Chair for Professional Advancement, which is responsible for the overall AFP educational program. She has been involved over the years revising AFP’s First Course in Fundraising and Survey Course, assisting in developing curricula for new AFP trainings and workshops, and serving on a variety of committees and task forces. A certified fundraising executive (CFRE) since 1988, she is a past president of the Greater Washington, DC, AFP Chapter, and in 1997, received the DC Chapter’s Outstanding Fund-raising Executive of the Year Award for her leadership and service to the profession. In 1999, she co-chaired with fellow author, Jeanne Jacob, the record-setting AFP/DC Fundraising Days Conference, a two-day educational conference held annually. As a graduate of the Center for Philanthropy at Indiana University/Association of Fundraising Professionals Faculty Training Academy, Ms. Ciconte holds the Master Teacher credential.

A leading national educator on fundraising and board development, Ms. Ciconte has served as an adjunct faculty member at George Mason University and American University and has published articles in The Nonprofit Times and The Development Director’s Letter. She is a frequent speaker at international and national conferences and meetings and has led many fundraising training sessions for the: Association of Fundraising Professionals (AFP) and its chapters; American Society of Association Executives (ASAE); Association Foundation Group (AFG); Council of Engineering and Scientific Society Executives (CESSE); Destination Marketing Association International (DMAI) as well as such groups as the U.S. Golf Association, Child Welfare League of America, the Enterprise Foundation, and the National Trust for Historic Preservation. Ms. Ciconte was a guest presenter at the Fundraising Institute-Australia’s 2003 International Conference in Canberra, Australia. She volunteers her time regularly as a trainer and instructor for nonprofit management assistance organizations such as Maryland Nonprofits, Cultural Alliance of Greater Washington, Center for Nonprofit Advancement, and the Institute of Policy Studies.

As a volunteer, Ms. Ciconte is President of the Board of Directors for Take Heart Association Project (THAP), an organization that helps disadvantaged Kenyan children with heart problems receive life-saving medical treatment by working with Kenyan hospitals to help build their capacity to provide excellent medical care through partnerships with U.S. medical personnel and other nonprofit organizations. In the past, she served on the boards of the YWCA of the National Capital Area, New York State Association of YWCAs, and the Binghamton, New York, YWCA.

Prior to her career in development, she taught for 11 years as an elementary school teacher in Whitney Point, New York, and a junior high school remedial reading and writing teacher in Owego, New York. She received her Bachelor of Arts degree in Education from the State University of New York (SUNY) at Oneonta and her Master of Arts degree in Education from SUNY Cortland.

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JEANNE G. JACOB, CAE, CFRE

Jeanne G. Jacob is both a Certified Association Executive (CAE) and a Certified Fund Raising Executive (CFRE). A nationally recognized association foundation executive and not-for-profit fundraiser, she currently serves as Executive Director of the Goodwin House Foundation in Alexandria, Virginia. The Foundation’s mission is to support Goodwin House Incorporated, a continuing care retirement community, with two campuses housing 850 residents. The mission of Goodwin House is to support, honor, and uplift the lives of older adults and the people who care for them through a faith- based, nonprofit organization affiliated with the Episcopal Church. As a supporting foundation, the Goodwin House Foundation generates resources for Goodwin House Incorporated through various fundraising programs, holds and manages endowment funds, and manages the following programs: Fellowship, Community Matching Gift, and Clinical and Pastoral education. Additionally, the Foundation produces a widely distributed yearly calendar that features resident art. Since joining the Goodwin House Foundation in 2007, Ms. Jacob has served on the Foundation Board and on Goodwin House Incorporated’s Executive Leadership Team.