Achieving excellence in fundraising 4th edition pdf free

Stewardship Recognition Strategy And A Marketing Strategy.

Your non-profit organization should be Red Cross Society of China, and all your strategy should be based on Red Cross Society of China.

The recognition and stewardship strategy (1/2 page, single spaced) for a major gift donor should describe the donor’s gift and the written and other thank-you’s and immediate and planned recognition that will be given, and the near and ongoing stewardship that will be conducted for this immediate and likely or hoped future major gift donor.

The marketing plan (1/2 page, single spaced) should describe the actions that will be taken to present, promote and have reaction, such as comments, questions and gifts, to the fundraising case and request for support. The plan should include actions taken inside the organization as well as those external to the organization.

“Anyone interested in what Hank Rosso calls ‘the joy of giving’ will find value in this carefully edited book. Its comprehensive coverage and thought- provoking content provides numerous opportunities for reflection on what is required and what it means to be an effective and ethical fundraiser. In this fourth edition of a now classic text, the authors continue to advance the profession of fundraising. We are treated to updated information, findings from recent scholarship, and an instructor's guide to further enhance learning.”

Mary Tschirhart, Professor, The Ohio State University; co-author of Managing Nonprofit Organizations

“Achieving excellence in fundraising is an important goal for CASE members worldwide who have chosen a career in the field. There is much debate as to the extent to which fundraising is an art or a science. The reality is that to be excellent, it has to be a combination of both, delivered with commitment, passion and integrity. New ideas and innovation continue to develop in the rapidly changing world of community and connectivity. Valuable, therefore, to have this fourth edition of Achieving Excellence in Fundraising which not only reminds us of the essentials of fundraising principles, but also covers new ground. The chapter on the opportunities availed in the 21st century through fast evolving social media is timely. As is the chapter on the joys imbued in philanthropic support including evidence both of the contagiousness of giving and its life enhancing and extending qualities! For those coming fresh to a career in fundraising there is much to discover here. For those who have made a career in this life transforming profession, this book provides helpful reminders and considerable food for thought.”

Sue Cunningham, President, Council for Advancement and Support of Education

“Achieving excellence in fundraising is a major goal of the best nonprofit CEOs and development professionals. This fully updated and comprehensive volume covers everything from developing the right philosophical approach to fundraising to understanding how to establish and execute both old and new fundraising strategies, as well as how to create and manage a development office. This book will be invaluable to both emerging and seasoned fund development professionals.”

Emmett D. Carson, Ph.D., Chief Executive Officer, Silicon Valley Community Foundation

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“Philanthropy is uniquely invaluable to the well-being of culture and community, and Achieving Excellence in Fundraising remains uniquely invaluable to the advancement of philanthropy. The Fund Raising School has relied on all previous editions of this knowledge-filled book to deliver highly impactful training to fundraising professionals around the world. This 4th edition combines timeless wisdom with the latest research-based strategies that are essential for fundraising success in the 21st Century economy.”

Bill Stanczykiewicz, Director, The Fund Raising School and Senior Lecturer, Philanthropic Studies, Indiana University Lilly Family School of Philanthropy

“It is fitting that this fourth edition of Achieving Excellence in Fundraising marks the transition from what was once a center on philanthropy to now the Indiana University Lilly Family School of Philanthropy. Yet, more importantly, this edition reaffirms the principles of the former center's visionary, Henry A. ‘Hank’ Rosso, whose voice and ideas reverberate and are woven within each essay, particularly, Gene Tempel's introduction who further inscribes, etches and connects Rosso's legacy to the IU Lilly Family School's present and future.”

Brian Johnson, Ph.D., President, Tuskegee University

“It's hard to imagine a more useful addition to the bookshelves of nonprofit professionals. But this book won't just sit on the shelf-fundraisers, board members and nonprofit executives will find it to be a handy and astute reference guide to building a comprehensive giving program. I've kept this book close at hand in every nonprofit job I've had. The new edition is based on many decades of research and professional experience from some of the top experts in the field, and is a useful reference guide for building stronger relationships between grantmakers and fundraisers.”

Caroline Altman Smith, Senior Program Officer, The Kresge Foundation

“This book is an indispensable resource for both the fundraising novice and the seasoned professional. It is a current and comprehensive collection of essays written by highly respected professionals and touches every dimension of philanthropy. I strongly recommend it for everyone working in the philanthropic sector.”

Rodney P. Kirsch, Senior Vice President for Development and Alumni Relations, The Pennsylvania State University

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Essential Texts for Nonprofit and Public Leadership and Management

The Handbook of Nonprofit Governance, by BoardSource

Strategic Planning for Public and Nonprofit Organizations, 3rd edition, by John M. Bryson

The Effective Public Manager, 4th edition, by Steven Cohen et al.

Handbook of Human Resources Management in Government, 3rd edition, by Stephen E. Condrey (Ed.)

The Responsible Administrator, 5th edition, by Terry L. Cooper

Conducting a Successful Capital Campaign, revised and expanded edition, by Kent E. Dove

The Public Relations Handbook for Nonprofits, by Arthur Feinglass

The Jossey-Bass Handbook of Nonprofit Leadership and Management, 3rd edition, by David O. Renz, Robert D. Herman, & Associates (Eds.)

Benchmarking in the Public and Nonprofit Sectors, 2nd edition, by Patricia Keehley et al.

Museum Marketing and Strategy, 2nd edition, by Neil Kotler et al.

The Ethics Challenge in Public Service, 2nd edition, by Carol W. Lewis et al.

Leading Across Boundaries, by Russell M. Linden

Designing and Planning Programs for Nonprofit and Government Organizations, by Edward J. Pawlak

Measuring Performance in Public and Nonprofit Organizations, by Theodore H. Poister

Human Resources Management for Public and Nonprofit Organizations: A Strategic Approach, 3rd edition, by Joan E. Pynes

Understanding and Managing Public Organizations, 4th edition, by Hal G. Rainey

Designing and Conducting Survey Research, 3rd edition, by Louis M. Rea et al.

Fundraising Principles and Practice, by Adrian Sargeant, Jen Shang, & Associates

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Making Critical Decisions, by Roberta M. Snow et al.

Handbook of Practical Program Evaluation, 3rd edition, by Joseph S. Wholey, Harry P. Hatry, & Kathryn E. Newcomer (Eds.)

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The Instructor's Guide for the fourth edition of Achieving Excellence in Fundraising includes syllabi and supporting materials for semester-long undergraduate and semester-long graduate versions of the course. The Instructor's Guide is available free online. If you would like to download and print a copy of the guide, please visit:

www.wiley.com/college/tempel

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http://www.wiley.com/college/tempel
The Indiana University Lilly Family School of Philanthropy is the world's first school dedicated solely to education and research about philanthropy. Established in 2012, the school was inaugurated in 2013 and named for one of America's great philanthropic families in honor of their generations of generosity and leadership.

Indiana University has been at the vanguard of philanthropy education since the Center on Philanthropy at Indiana University was founded at Indiana University —Purdue University Indianapolis (IUPUI) in 1987. Led by the center, Indiana University (IU) established the field of philanthropic studies; established the nation's first bachelor's, master's, and Ph.D. degrees in the field; and created the nation's first endowed chair in philanthropy.

The Lilly Family School of Philanthropy prepares students, philanthropy professionals, donors and volunteers to be thoughtful innovators and leaders who create positive and lasting change. Alumni of its programs lead national nonprofits and foundations, serve international relief organizations, and lead hands-on neighborhood human services centers.

As the pioneer of the unique, liberal arts-based field of philanthropic studies, the school and its world-class faculty offer unparalleled academic degree programs and rigorous, objective research that sets the standard for the field and provides a crucial resource for philanthropy and nonprofits. Through global partnerships, teaching and learning experiences on six continents, and an international student body, the school increases understanding of philanthropy within and across cultures.

The Lilly Family School of Philanthropy integrates innovative academic, research, international and training programs with groundbreaking resources such as The Fund Raising School, the Women's Philanthropy Institute, and Lake Institute on Faith & Giving.

The Fund Raising School, which Hank Rosso moved to Indiana University in 1987 to form the centerpiece for the founding of the Center on Philanthropy,

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continues today as the premier international, university, and curriculum-based fundraising education program. For the more than 40 years since its founding in 1974, The Fund Raising School has taught successful, ethical, systematic, mission-focused fundraising, volunteer board leadership, and nonprofit management practices to more than 43,000 people in more than 40 countries. Experienced fundraising professionals comprise The Fund Raising School's faculty, offering multiple online and in-person sessions of 15 different regularly scheduled courses in Indianapolis and in cities around the nation as well as sponsored, customized courses in locations around the globe.

As a hub for philanthropic thought and research, the Lilly Family School of Philanthropy regularly convenes innovators, scholars, philanthropists, fundraisers, nonprofit and foundation professionals, and researchers to share their diverse perspectives, exchange ideas, and develop insights that anticipate trends, address pressing issues, and shape the future of philanthropy.

For more information, please visit: philanthropy.iupui.edu.

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ACHIEVING EXCELLENCE IN FUNDRAISING

FOURTH EDITION

Eugene R. Tempel, Timothy L. Seiler, and Dwight F. Burlingame, Editors

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Cover image: © iStock.com/fotohunter Cover design: Wiley

Copyright © 2016 by John Wiley & Sons. All rights reserved

Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada

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Library of Congress Cataloging-in-Publication Data:

Names: Tempel, Eugene R., editor. | Seiler, Timothy L., editor. | Burlingame, Dwight, editor.

Title: Achieving excellence in fundraising / Eugene R. Tempel, Timothy L. Seiler, and Dwight F. Burlingame, editors.

Description: 4th edition. | Hoboken, New Jersey : John Wiley & Sons, Inc., [2016] Includes bibliographical references and index.

Identifiers: LCCN 2015038322 | ISBN 9781118853825 (cloth) Subjects: LCSH: Fund raising. Classification: LCC HG177 .R67 2016 | DDC 658.15/224–dc23 LC record available at http://lccn.loc.gov/2015038322

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http://www.wiley.com
http://lccn.loc.gov/2015038322
This book is dedicated to the Trustees of Indiana University, University and campus leadership, donors and funders, faculty

and staff who believed in the potential of, and took the bold steps to create, the Indiana University Lilly Family School of

Philanthropy.

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kindle:embed:0003?mime=image/jpg
CONTENTS Foreword Preface

Organization of the Fourth Edition Reflections on the Fourth Edition

Acknowledgements The Editors Author Bios Part One: A Philanthropic Context for Fundraising

Chapter 1: A Philosophy of Fundraising Introduction by Eugene R. Tempel A Philosophy of Fundraising Organizations and Their Reasons for Existing To Govern or Not to Govern Institutionalizing Fundraising Gift Making as Voluntary Exchange Substituting Pride for Apology Fundraising as a Servant to Philanthropy

Chapter 2: The Joy of Giving Fundraisers are Givers, Not Takers Psychological Benefits of Giving Social Benefits of Giving Physical Benefits of Giving The Importance of Motives Conclusion: A Recipe for Giving Discussion Questions Key References/Further Reading

Chapter 3: Plan to Succeed Conclusion Discussion Questions

Chapter 4: Developing and Articulating a Case for Support

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Where to Start with Case Resources? Internal Case and External Case and the Difference Between Them Putting the Case to Work: Creating Case Expressions Conclusion Discussion Questions

Chapter 5: Individuals as a Constituency for Fundraisng Identifying the Individual Constituent A Constituency Model Identifying and Attracting Likely Donors Roles and Responsibilities that Influence Giving Conclusion Discussion Questions

Part Two: Constituents: What Donors Value Chapter 6: Contemporary Dynamics of Philanthropy

Roles of Philanthropy Size and Scope Fundraising and The Economic Climate Opportunities for Philanthropy Conclusion Discussion Questions

Chapter 7: Prospective Donor and Donor Research and Database Management

Database 101 The Basics Prospective Donor Research 101 Tools for Prospective Donor Research Ethics in Prospective Donor Research Conclusion Discussion Questions

Chapter 8: Corporate Giving and Fundraising History Models of Corporate Giving

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Case Study Marketing, Sponsorships, and Partnerships Conclusion Discussion Questions

Chapter 9: Foundation Fundraising Size and Scope Trends in Foundation Support Types of Support Conclusion Discussion Questions

Chapter 10: Gender and Philanthropy Context Organizational Culture and Leadership Today's Female Donors Women's Giving Across the Generations Conclusion Discussion Questions

Chapter 11: Inclusive Philanthropy: Giving in the LGBT Community An Overview of LGBT Giving Giving and The LGBT Movement Donor Characteristics Motivations to Give Awareness and Sensitivity in LGBT Donor Stewardship Recommendations for Inclusive Fundraising Discussion Questions

Chapter 12: Faith and Giving Making Sense of the Religious Giving Sector Expanding the Definition of Religious Giving Making Sense of Religious Motivations Conclusion Discussion Questions

Chapter 13: Ethnic Diversity and Giving

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Defining Diversity Census Data on U.S. Ethnic Diversity Research on Ethnic Diversity and Giving The Role of Immigration Embracing Diversity in Fundraising Conclusion Discussion Questions

Chapter 14: Generational Differences in Giving Generations and Giving Patterns Giving Profiles by Generation Engaging the Next Generation of Donors Conclusion Discussion Questions

Chapter 15: Understanding High Net Worth Donors Patterns of Giving Where High Net Worth Donors Give Donor Motivations and Constraints Policy Issues Implications for Fundraisers Discussion Questions

Chapter 16: Global and Cross-Cultural Fundraising Global Perspectives on Philanthropy and Fundraising Global Development of Fundraising Cultural Influences and Fundraising in the United States Implementing Fundraising Principles Across Cultures Conclusion Discussion Questions

Part Three: Structuring Your Fundraising Chapter 17: The Total Development Plan Built on the Annual Giving Program

The Total Development Plan: Planning, Communication, and Fundraising

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Fundraising Programs Conclusion Discussion Questions

Chapter 18: Major Gifts Defining Major Gifts What Works in Major Gift Fundraising Managing the Major Gift Process The Philanthropic Road Ahead Conclusion Discussion Questions

Chapter 19: Capital Campaigns Defining Today's Campaign Fundamental Structure of a Campaign Campaign Case Study Discussion Questions

Chapter 20: Establishing a Planned Giving Program Institutional Readiness The Planned Giving Professional Policies and Guidelines Print Materials Identification of Prospective Donors Conclusion Discussion Questions

Part Four: Managing the Fundraising Process Chapter 21: Management and Leadership in Fundraising

Fundraising Managers and Their Responsibilities Fundraising Staffing Leadership Principles for Fundraisers Leading by Example Conclusion Discussion Questions

Chapter 22: Organizational Development for Fundraising

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Essential Foundations for Philanthropy Conclusion Discussion Questions

Chapter 23: Budgeting for and Evaluating Fundraising Performance The Budget is a Plan Gain/Loss Report Gift Size Analysis Growth in Giving Return on Investment Conclusion

Chapter 24: Marketing and Communications for Fundraising Toward an Understanding of Marketing The Role of Market Research in Fundraising Communication: Building Awareness and Motivating Action Trust and Responsibility: An Ethical Framework Conclusion Discussion Questions

Chapter 25: Selecting and Working with Fundraising Consultants Institutional Readiness Contracts as a Relationship-Building Tool Conclusion Discussion Questions

Part Five: The Art of Solicitation Chapter 26: Personal Solicitation

Knowing Yourself: The Psychology of Asking for Money and the Professionalism of Fundraising Knowing Your Donor: Strategic Cultivation Knowing When and What to Ask: The Invitation to Make a Gift Beyond Solicitation: The Fundraiser as Professional Conclusion Discussion Questions

Chapter 27: Direct Response

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Applying Direct Mail Principles to Other Direct Response Fundraising Direct Mail as a Template for Other Direct Response Fundraising Donor Retention, Renewal, and Upgrade Strategies Measuring Success State Charitable Registration and Reporting Requirements Case Study: Combining Direct Response Vehicles for Maximum Effectiveness Conclusion Discussion Questions

Chapter 28: Telephone Solicitation and Stewardship Planning Anatomy of the Call Campaign Management Stewardship Conclusion Discussion Questions

Chapter 29: Digital Fundraising Permission Three Goals Web Sites Blogging E-mail Crowdfunding Regulations Responding to Critics Policies Conclusion Discussion Questions

Chapter 30: Special Events Cultivation Events Solicitation Events Stewardship Events

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Engagement of Staff Integrated Events Critical Factors for Event Success Conclusion Discussion Questions

Part Six: Involving Volunteers Chapter 31: Stewardship and Accountability

Gift Clubs Reporting Conclusion Discussion Questions

Chapter 32: Engaging the Board in Fundraising The Roles and Responsibilities of Board Members Engaging in Fundraising What Board Members Bring to Fundraising Recruiting Board Members Organization Name The Board shall have the following collective responsibilities: Individual Responsibilities of Directors Conclusion Discussion Questions

Chapter 33: Volunteer Management Volunteer Rates and Activities International Contexts of Volunteering Steps for Successful Volunteer Involvement Volunteer Policies and Procedures Volunteer Retention Conclusion Discussion Questions

Part Seven: Ethics and Accountability Chapter 34: Ethics and Accountability

AFP members, both individual and business, aspire to:

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Ethical Standards Issues of Trust Ethics and Professionalism Approaches to Ethics Ethical Dilemmas Applying Ethics in Fundraising Conclusion Discussion Questions

Chapter 35: The Law and Fundraising Prudent Decision Making State Law Considerations Federal Law Considerations Conclusion Discussion Questions

Part Eight: Your Career in Fundraising Chapter 36: Fundraising as a Profession

Milestones in the Professionalization of Fundraising Issues of Fundraising as an Emerging Profession The Future of Fundraising as a Profession Conclusion Discussion Questions

Chapter 37: Resources for Strengthening Fundraising Association Resources Options for Formal Education Published Resources Conclusion Questions for Discussion Organizations and Resources Referenced Indexing Sources Academic and Trade Journals A Sample of Books that Advance Research and Practice

References

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Index EULA

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List of Tables

Chapter 4

TABLE 4.1

TABLE 4.2

Chapter 7

TABLE 7.1

TABLE 7.2

Chapter 13

TABLE 13.1

TABLE 13.2

TABLE 13.3

TABLE 13.4

TABLE 13.5

TABLE 13.6

Chapter 14

TABLE 14.1

TABLE 14.2

TABLE 14.3

TABLE 14.4

Chapter 19

TABLE 19.1

Chapter 20

TABLE 20.1

Table 20.2

Chapter 21

TABLE 21.1

Chapter 23

Table 23.1

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Chapter 29

Table 29.1

Chapter 36

TABLE 36.1

TABLE 36.2

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List of Illustrations

Chapter 3

FIGURE 3.1 THE FUNDRAISING CYCLE.

Chapter 4

FIGURE 4.1 STAFF AND CONSTITUENCY PARTICIPATION IN CASE DEVELOPMENT.

Chapter 5

FIGURE 5.1 THE CONSTITUENCY MODEL.

FIGURE 5.2 THE WHEEL OF ROLES AND RESPONSIBILITIES.

Chapter 7

EXHIBIT 7.1 PEER SCREENING FORM.

EXHIBIT 7.2 DONOR RESEARCH PROFILE.

Chapter 12

FIGURE 12.1 DISTRIBUTION OF GIVING TO CONGREGATIONS, RIOs, AND NRIOs.

FIGURE 12.2 PERCENTAGE OF AMERICANS WHO GIVE TO ALL TYPES OF ORGANIZATIONS BY RELIGIOUS TRADITION.

Chapter 15

FIGURE 15.1 PERCENTAGE OF HIGH NET WORTH HOUSEHOLDS WHO GAVE TO CHARITY IN 2009, 2011, AND 2013, COMPARED TO THE U.S. GENERAL POPULATION (%).

FIGURE 15.2 PERCENTAGE OF ESTATES WITH A CHARITABLE BEQUEST BY TYPE OF RECIPIENT ORGANIZATION.

FIGURE 15.3 DISTRIBUTION OF HIGH NET WORTH GIVING BY SUBSECTOR, 2009 (%).

Figure 15.4 PERCENTAGE OF HIGH NET WORTH HOUSEHOLDS WHO GAVE TO DIFFERENT CHARITABLE SUBSECTORS, 2007, 2009, 2011, 2013 (%).

FIGURE 15.5 CHANGE IN GIVING IF INCOME TAX DEDUCTIONS FOR DONATIONS WERE ELIMINATED, 2005, 2007 AND 2009 (%).

FIGURE 15.6 CHANGE IN ESTATE PLANS IF THE ESTATE TAX WERE

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PERMANENTLY ELIMINATED, 2005, 2007 AND 2009 (%).

Chapter 17

FIGURE 17.1 THE FOUR-LEGGED STOOL OF FUNDRAISING.

FIGURE 17.2 DONOR PYRAMID OF FUNDRAISING STRATEGIES.

Chapter 18

FIGURE 18.1 VALUES OVERLAP.

FIGURE 18.2 PHILANTHROPY TO BUSINESS SPECTRUM.

EXHIBIT 18.1 STAGES OF TRANSFORMING PHILANTHROPY.

EXHIBIT 18.2 MAJOR GIFTS: THE EIGHT-STEP SOLICITATION PROCESS.

EXHIBIT 18.3 DEVELOPING A STRATEGY FOR THE MAJOR GIFT PROCESS.

EXHIBIT 18.4 THE SCOLDING AND DISCERNMENT MODELS.

Chapter 19

FIGURE 19.1 PHASES OF A CAMPAIGN.

FIGURE 19.2 CAMPAIGN GIFT CHART RANGE.

Chapter 20

EXHIBIT 20.1 CHARITABLE LEAD TRUST.

EXHIBIT 20.2 CHARITABLE GIFT ANNUITY.

EXHIBIT 20.3 CHARITABLE REMAINDER TRUST.

Chapter 23

EXHIBIT 23.1. GIFT REPORT ON SOURCES OF GIFTS RECEIVED.

EXHIBIT 23.2. GIFT REPORT ON PURPOSES OR USES OF GIFTS RECEIVED.

EXHIBIT 23.3. GIFT REPORT OF SOLICITATION ACTIVITIES AND RESULTS BY METHOD.

EXHIBIT 23.4. SUMMARY BUDGET REQUEST WITH ESTIMATED EXPENSE AND NET REVENUE.

EXHIBIT 23.5. INTERPRETING AFP'S FEP AND GIG REPORTS.

Chapter 24

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FIGURE 24.1 THE MARKETING CYCLE FOR NONPROFIT ORGANIZATIONS.

Chapter 32

FIGURE 32.1 BOARD COMPOSITION GRID.

EXHIBIT 32.1. SAMPLE BOARD AGREEMENT LETTER.

Chapter 34

EXHIBIT 34.1. ASSOCIATION OF FUNDRAISING PROFESSIONALS (AFP) CODE OF ETHICAL PRINCIPLES AND STANDARDS OF PROFESSIONAL PRACTICE.

EXHIBIT 34.2. AHP STATEMENT OF PROFESSIONAL STANDARDS AND CONDUCT.

EXHIBIT 34.3. THE DONOR BILL OF RIGHTS.

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FOREWORD

The mark of a vital institution is that it renews its traditions to stay in tune with the times. A mark of a great institution is that is spawns other institutions and traditions, celebrating their multiplicity as they thrive. Such is an institution that is being renewed in the 4th edition of Achieving Excellence in Fundraising.

The book contains new research and fresh voices that update and complement the lasting wisdom as formulated by Hank Rosso, the editor of the first edition. Hank's vision of an ethical, joy-inducing, and dignified profession has come to guide many who practice and study philanthropy. The Fund Raising School he brought to Indianapolis served as the seed of the Center on Philanthropy, now the Lilly Family School of Philanthropy at Indiana University. The four decades of instruction in the curriculum he crafted thrived on a creative tension between the research findings of academics and practical feedback from those in the field. This creative collaboration is in evidence in the current volume, which succeeds in that rare accomplishment – integrating the insights of professors and practitioners.

Just as the legacies of Hank Rosso, Robert Payton, Charles Johnson, and others of their time are seen in these pages, so is the institution building work of our current editors. Tim Seiler has been at the helm of The Fund Raising School for two decades and has inducted legions of passionate students into the ranks of the globally expanding fundraising profession. He extended the brand and impact of The Fund Raising School with a dogged focus on integrity and attention to what is actually known, and known to work.

Gene Tempel was involved in the founding of the Center, and after a quarter century of nurturing Indiana's role at the epicenter of serious philanthropic deliberations, he achieved the launch of the world's first School of Philanthropy and served as its founding Dean. A “pracademic” (a word I learned from him), in the sense of successfully straddling the divide between research and practice, Gene has stewarded this book over the years as a reflection of the work being done in Indiana.

Dwight Burlingame is the academic soul of the book and of the School that has risen in tandem with it. He has written key works on philanthropy, mentored current leaders in the field, edited seminal series of publications, and established venues for researchers to explore questions about the once much more mysterious practices of giving and asking.

Together Tim, Gene, and Dwight have constituted a singularly important node

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for multiple networks of practitioners, institution builders, and academics in the philanthropic sector worldwide. Ask anyone you respect in the world of philanthropy, be they donors, fundraisers, or academics, and ask them to examine the tapestry of their professional relationships. It won't take too long for them to identify the threads that lead back to our editors and the work they have pioneered in Indiana.

If you do not yet have your own thread to connect you to Indiana, you are about to have one.

As with the original edition, this volume “has integrity as a holistic work.” However, there are different pathways you can take through the volume. It can be used as a textbook or a reference source when particular issues arise, or even as an aid when some inspiration is needed in the midst of an operational or moral conundrum.

Novices will find essential concepts explained clearly and located within a context that gives them meaning and relevance. The experienced professional can delve into contemporary research such as work on empathy that informs the joy of giving, while also brushing up on fundamentals of relationship building that have withstood the test of time. Those who lead organizations will find descriptions of proven operational structures and guidelines for managing the variety of processes that make up a comprehensive fundraising effort. Trustees and volunteers can understand how they can be most useful to their organization, and how they can allow themselves to be most usefully managed by staff leadership. All of us will benefit from wrestling with the difficult issues when we need be sure that we stand on solid ethical ground. In addition, readers from inside and outside professional philanthropy will be keen to read about the changing professional identities and career paths of fundraisers.

Finally, the book is a collaborative effort of faculty and practitioners who have poured their knowledge and dedication to philanthropy into its pages. By reading Achieving Excellence in Fundraising you join an institution that flourishes by enabling others to succeed in their passion to improve the world.

Amir Pasic Dean Indiana University Lilly Family School of Philanthropy May 2015

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PREFACE

The fourth edition of Achieving Excellence in Fundraising has its foundation in the lifetime of work by Henry A. “Hank” Rosso. He had a dream that colleges and universities would provide research education and training to help build the foundation for professionalizing fundraising. He published Achieving Excellence in Fund Raising in 1991, bringing scholars and practitioners together to help fundraisers better understand and do their work. In the foreword to the first edition, Bob Payton projected that the book would become a classic. The fourth edition being published 15 years later is evidence that it has. It is also a reflection of how farsighted Hank was in his work. Many of the principles that he espoused have been confirmed or modified by research. The longevity of The Fund Raising School, the continuing validity of many of the principles taught originally in The Fund Raising School, and the modification of others through time are further evidence.

The first three editions of Achieving Excellence in Fund Raising were supported by the Indiana University Center on Philanthropy that housed The Fund Raising School founded by Hank in 1974. In 2012 the programs and the institutes of the Center, including The Fund Raising School, became part of the Indiana University Lilly Family School of Philanthropy. The publication of the fourth edition marks the transition from the Center on Philanthropy to the Lilly Family School of Philanthropy. One of the milestones in that transition is the School's continued commitment to do research and offer education and training related to Hank's work in the founding of The Fund Raising School.

The first challenge of a nonprofit organization is to survive its founder. The Fund Raising School has survived its founder. The Fund Raising School has now existed as an integral part of the Lilly Family School of Philanthropy longer than it existed as a separate independent organization. Hank and his wife Dottie founded The School in 1974 and it celebrated its 40th anniversary in 2014. It became part of the Center on Philanthropy in 1987. Hank served as an advisor and mentor to all of us until his death in 1999. Tim Seiler has been the Director of The Fund Raising School for 20 years, from 1996 to 2015. The current Director, Bill Stanczykiewicz, began serving as Director on June 29, 2015.

The fourth edition reflects a commitment to the original principles and philosophy that are the hallmark of achieving excellence. It also reflects the changing environment for philanthropy and fundraising, new developments in the way fundraising work is done, and the increasing understanding and knowledge about philanthropy and fundraising developed by the Lilly Family

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School of Philanthropy, other colleges and universities, and research organizations across the United States and around the world.

The editors of this volume knew Hank Rosso personally. They interacted with Hank, served on panels with Hank at conferences and symposia, and they understood Hank's philosophy. The fourth edition is transitional in another sense. If Achieving Excellence in Fundraising is to continue to be the classic that Bob Payton predicted, it must not only reflect the growing body of knowledge about fundraising and philanthropy but it must also be embraced by a new generation of scholars and practitioners. The fourth edition is a step in that direction. All the authors in the fourth edition are philanthropic studies faculty members at the Lilly Family School of Philanthropy, alumni of the School, or current faculty members of The Fund Raising School. Most of them did not know Hank.

The first edition was promoted primarily as a way to help provide knowledge for a rapidly growing fundraising corps. The number of members of the Association of Fundraising Professionals (then NSFRE) grew significantly from 1980 to 1990. The third edition is being used as a textbook by faculty members teaching fundraising, philanthropy, and nonprofit management courses in colleges and universities today, so the fourth edition was written and edited with its being used as a textbook in mind.

The work of philanthropy is about the work of public purposes and causes – the public good. Philanthropy rests on the power of the case for support. It also reflects the interest and desires of donors to accomplish something beyond themselves. The work of fundraising is about substituting pride for apology. The fourth edition focuses on respect for the process of fundraising, respect for the donor, and respect for the individuals being served by the nonprofit organizations that fundraisers represent. It focuses on the importance of language in conveying that respect. We do not “get” gifts. Hank taught us that fundraising is the work of teaching people the joy of giving. Sara Konrath's research, as she writes in Chapter 2, substantiates this concept. Fundraisers do not make “the ask,” which implies a confrontational situation between volunteers and fundraisers and the donors from whom they seek gifts. They solicit gifts by inviting donors to join them in supporting worthy causes. Although demographics and psychodemographics are important in understanding donors and engaging them with organizations based on their own interests, fundraisers do not “target” donors, and they do not “move” them toward desired ends. It is important for us to understand these concepts today with the sophistication of donors, with the interest of donors following up on

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their gifts at smaller levels, and with the new generation of philanthropists committed to making things happen today.

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Organization of the Fourth Edition

The fourth edition of Achieving Excellence in Fundraising has been reorganized to bring more chapters more closely together around key fundraising execution. Some chapters from the third edition have been combined. Chapters have been updated and edited. New chapters have been added to reflect important new areas of knowledge and changing dynamics in philanthropy.

The fourth edition has been developed as a textbook for academic courses in fundraising, philanthropy, and nonprofit management. An instructor's guide is available from the publisher at www.wiley.com/college/tempel. It can also be used by practitioners as a reference in their own work and to help them prepare for the CFRE exam.

The 37 chapters of the fourth edition are grouped into eight parts. Part One consists of five chapters that form the essential context for understanding and engaging in philanthropic fundraising.

Part Two consists of eleven chapters that prepare fundraisers to understand philanthropy from various perspectives of donors, not only individual donors but also foundations and corporations as donors.

Part Three includes four chapters that focus on the structural aspects of a total development program. The total development program ranges from the annual fund program to the planned giving program. This section helps fundraisers understand how the various programs support one another and how they interconnect.

Part Four consists of five chapters dedicated to the management of the total development program. This includes organizational readiness for fundraising and using consultants for special purposes.

Part Five includes five chapters that discuss the different ways fundraisers and their organizations can engage donors and invite them to make gifts at different levels. It outlines how different approaches are appropriate for different levels of gifts and gifts for different purposes.

The three chapters in Part Six focus on the external nature of fundraising and philanthropy and include the current call for greater transparency and accountability by an organization's various constituents.

The two chapters of Part Seven deal with the ethical and legal framework for fundraising.

Finally, Part Eight is about professionalism, with one chapter on building a

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career and the other on the resources available to assist in that development.

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Reflections on the Fourth Edition

As mentioned in the Acknowledgments, we have transitioned from administrative roles to faculty positions and look forward to how the fourth edition is embraced by university faculty as well as by fundraising practitioners. In dispatching our contribution to the academic study and the practice of fundraising, we look forward to the fourth edition adding to and enriching the discourse surrounding philanthropic studies and philanthropic fundraising.

We note that our work was previously supported by the Indiana University Center on Philanthropy. We are grateful to have the continued support of the Indiana University Lilly Family School of Philanthropy.

We fervently hope that the addition of more research-based chapters, others supported by research, along with the chapters that reprise time-tested, nearly universal principles of effective fundraising practice, if successful, will serve not only as an overview of current philanthropic fundraising but will also prepare the upcoming generation of scholars and practitioners to produce in its time the fifth edition of Achieving Excellence in Fundraising.

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ACKNOWLEDGEMENTS

The fourth edition of Achieving Excellence in Fundraising would not have been possible without the first three volumes. We are again acknowledging Hank Rosso who founded The Fund Raising School in 1974, and in 1991 accepted the challenge to share his knowledge and experience with a larger audience by editing the first edition of this book. We also acknowledge The Fund Raising School which has grown and developed from the day when Hank Rosso transferred it to Indiana University to help establish the Center of Philanthropy in 1987 to its current status as a key part of the Lilly Family School of Philanthropy. This book also owes deep gratitude to the Lilly Family School of Philanthropy for its sponsorship and for the role it has played in the development of Philanthropic Studies as a field, for its research dedicated to philanthropy and fundraising through the years, and for the contributions it has made to the development of The Fund Raising School, the Women's Philanthropy Institute, the Lake Institute on Faith and Giving, the development of baccalaureate-, master's-, and doctoral-level programs at Indiana University. These assets all help shape the fourth edition of Achieving Excellence in Fundraising.

A word of thanks to Hank's wife, Dottie Rosso, one of the founders of The Fund Raising School. Her encouragement for the continuation of Hank's legacy and her affirmation that the programs of The Fund Raising School and the Lilly Family School of Philanthropy fulfill Hank's vision for the study of philanthropy and fundraising have been a source of support.

Thanks to all the authors who contributed to the first three editions of Achieving Excellence in Fund Raising. Special thanks to all the authors and contributors to the fourth edition of Achieving Excellence of Fundraising as well. They include Philanthropic Studies faculty members, faculty of The Fund Raising School, staff of the Lilly Family School of Philanthropy, and alumni. All have contributed to the ongoing development of knowledge for this book and for the field. We are grateful for the research developed through the Lilly Family School of Philanthropy by the Indiana University Philanthropic Studies faculty and faculty and researchers around the globe who have contributed to the development of knowledge these past 25 years.

Thanks to Lilly Endowment for support of the fourth edition of Achieving Excellence in Fundraising as part of a transition Grant to the Lilly Family School of Philanthropy. The editors themselves have gone through transitions. Each has stepped down from long-term time service in administrative and leadership

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roles in building philanthropic studies and The Fund Raising School to become members of the Philanthropic Studies faculty at the Lilly Family School of Philanthropy, for the version of this book marks their transition as well.

The Lilly Family School of Philanthropy and Wiley have initiated many projects together. This is as true now as it was when the first three editions were published. We owe gratitude to Wiley for continuing to publish books that help strengthen the nonprofit sector especially fundraising and philanthropy. And special thanks to our editor at Wiley, Matthew Davis, who encouraged the development of this fourth edition.

Each of us has a special word of thanks to our staff and colleagues who supported our involvement in this project and covered for us in other ways from time to time. To our families we send heartfelt thanks for their unending support and sacrifice throughout our administrative careers and during the development of this book.

Thanks to Elisabeth Lesem, the Hartsook Fellow at the IU Lilly Family School of Philanthropy and Gene Tempel's graduate assistant. She did heavy lifting on this project. Not only did she help coordinate the solicitation of chapters and the application of unified standards with all the offers, but she also contributed research and co-authored several chapters as well. We all owe Elisabeth a debt of gratitude for her work on this edition until she graduated with an MA in Philanthropic Studies and became the Foundation Officer at the Indiana Repertory Theatre. We hope her work on this volume serves her well in her career.

Special thanks also to Sarah Nathan, a Lilly Family School of Philanthropy alum and faculty member at Bay Path University, who managed the production of the manuscript for the third edition of Achieving Excellence in Fundraising. We were fortunate to have her experience help us complete the fourth edition. She spent five weeks working on uniform standards, editing the text from beginning to end, and assisting the editors with their various responsibilities. We are grateful for her assistance and we hope her work on this volume contributes to continued development as a scholar and teacher in the field.

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THE EDITORS

Dwight F. Burlingame is Professor of Philanthropic Studies and holds the Glenn Family Chair in Philanthropy. Dr. Burlingame holds degrees from Moorhead State University, the University of Illinois and Florida State University. He received the Certified Fund Raising Executive (CFRE) credential in 1989. He has been active over the last 25 years in developing philanthropic education at Indiana University and for the field of civil society education globally. He also serves as an active member of the national Association of Fundraising Professionals' Research Council, the Association for Research on Nonprofit Organizations and Voluntary Action (ARNOVA) where he is currently the Treasurer, a board member of Learning to Give, and the International Society for Third-Sector Research. Burlingame is an expert in the field of philanthropy and fundraising and spent six years as editor of the Nonprofit and Voluntary Sector Quarterly, the official journal of ARNOVA. He is also the co- editor of the Philanthropic and Nonprofit Studies book series for Indiana University Press, and has written or co-written 10 books, nearly 60 articles and more than 100 book reviews. Dr. Burlingame is also the editor of Philanthropy in America: A Comprehensive Historical Encyclopedia, published in 2004. He is active in the nonprofit community as a board member and volunteer, a frequent speaker, consultant, and author on topics relating to philanthropy, corporate citizenship, nonprofit organizations, and development. In 2013 he received the Rosso Medal for lifetime achievement in fundraising.

Timothy L. Seiler is the inaugural Rosso Fellow in Philanthropic Fundraising and Clinical Professor of Philanthropic Studies at The Lilly Family School of Philanthropy. In June 2015, he transitioned from being the Director of The Fund Raising School, a position he held for 20 years. During that time The Fund Raising School expanded its service through in-person and online courses domestically and internationally. In November 2014 he was named Outstanding Professional Fundraising Executive by the Association of Fundraising Professionals Indiana Chapter, and in December 2014 he received the Henry A. Rosso Medal for Lifetime Achievement in Ethical Fundraising from the Indiana University Lilly Family School of Philanthropy. Seiler teaches core curriculum courses and customized programs for The Fund Raising School and regularly makes conference and seminar presentations locally, nationally, and internationally. He is an author and editor and was editor-in-chief of the Excellence in Fundraising Workbook Series, author of the workbook Developing Your Case for Support, and co-editor of Achieving Excellence in Fundraising, Third Edition. Formerly vice president of the Indiana University Foundation,

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Seiler was a major gifts officer for university development and coordinated the constituency development program for the schools and programs on the Indianapolis campus. Seiler serves the nonprofit sector not only as a fundraiser, author, and teacher but also as a volunteer and board member and serves as a mentor to young professional fundraisers. He earned a B.A. degree in English from Saint Joseph's College, Rensselaer, Indiana, and M.A. and Ph.D. degrees in English from Indiana University. He also holds the Certified Fund Raising Executive professional designation.

Eugene R. Tempel is Founding Dean Emeritus of The Indiana University Lilly Family School of Philanthropy and a Professor of Philanthropic Studies. He led the world's first school devoted to research and teaching about philanthropy. An internationally recognized expert on the philanthropic sector, he has four decades of leadership and fundraising experience. He helped found the School's precursor, the Center on Philanthropy, and was its executive director for 11 years, transforming it into a leading national resource. Generous donors recently established the Eugene R. Tempel Endowed Deanship – Indiana University's first named, endowed deanship – at the School. A member of several nonprofit boards, Professor Tempel is a past chair of the national Association of Fundraising Professionals' Ethics Committee. An early leader in creating the field of philanthropic studies, he was the first elected president of the Nonprofit Academic Centers Council and a member of Independent Sector's Expert Advisory Panel that helped create national guidelines for nonprofit governance and ethical behavior. The author of several works in the field, he has won numerous awards and has been named among the 50 most influential nonprofit sector leaders 13 times by The NonProfit Times, which also named him the sector's first “Influencer of the Year” in 2013. He earned a B.A. in English from St. Benedict College and an M.A. in English and an Ed.D. in Higher Education from Indiana University and is a Certified Fund Raising Executive.

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AUTHOR BIOS

Eva E. Aldrich, M.A., CFRE, is President and CEO of CFRE International, the globally acknowledged voluntary certification for fundraising professionals. Prior to joining CFRE International, Aldrich was Associate Director of Public Service and The Fund Raising School at the Indiana University Lilly Family School of Philanthropy. Before that, she was a member of the consulting team at Johnson Grossnickle & Associates, a firm committed to strengthening the field of philanthropy and to empowering nonprofit organizations to make the world a better place. Aldrich has been widely published in fundraising journals and is one of the editors of Achieving Excellence in Fundraising, 3rd Edition. She serves on the Advisory Committee of the Nonprofit Leadership Studies Program at Murray State University and is a doctoral candidate in Philanthropic Studies at Indiana University.

Lehn Benjamin is an Associate Professor of Philanthropic Studies. Her research examines how nonprofit organizations challenge and reinforce the marginalization of poor communities and the consequences for democratic citizenship. She has focused specifically on how performance and accountability requirements of funders shape the work of nonprofits. Her recent research seeks to shed light on these questions by looking at the daily work of frontline staff and the experience of the people they serve. Prior to joining the faculty at IU, she worked in South Africa during the democratic transition, on the Senate Banking Committee, Subcommittee for Housing and Urban Affairs, and for the U.S. Department of the Treasury's Community Development Financial Institutions Fund.

Melissa S. Brown helps charities turn knowledge into action. Consulting services include surveys, program evaluation, and background research. She staffs the Nonprofit Research Collaborative, which surveys charities to assess what works in fundraising. She teaches regularly for The Fund Raising School. As a volunteer, she serves the AFP Research Council, Association of Philanthropic Counsel, and Giving USA Advisory Council on Methodology. Before founding Melissa S. Brown & Associates in 2011, Melissa worked at the Indiana University Lilly Family School of Philanthropy, including 10 years as managing editor of Giving USA. She studied at Reed College and the University of Pennsylvania.

Aaron Conley is a practitioner and scholar of philanthropy, fundraising and volunteerism. He earned an Ed.D. in higher education and philanthropic studies from Indiana University. He is now a faculty member of The Fund Raising

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School, teaching the course on campaigns. Dr. Conley's professional experience extends nearly 25 years. He has served as vice chancellor for advancement at the University of Colorado where he oversaw all academic and athletic fundraising, parent giving and the CU Alumni Association. He also served as vice president for development and alumni relations at the University of Texas at Dallas where he led that institution's first comprehensive campaign. He has also held advancement roles with the University of Pittsburgh, Florida State University and Purdue University.

Elizabeth J. Dale is an assistant professor in the Master of Nonprofit Leadership Program at Seattle University and a Ph.D. candidate in Philanthropic Studies at the Indiana University Lilly Family School of Philanthropy. Her research focuses on the philanthropic practices of lesbian, gay, bisexual, and transgender (LGBT) individuals and couples, women's giving, and the intersection of gender and philanthropy. She teaches in the areas of philanthropy, governance, fundraising, and marketing and communications. A former fundraiser who achieved CFRE designation, Ms. Dale holds an M.A. in Women's Studies from The Ohio State University and a B.A. in Journalism and Women's and Gender Studies from Ohio Wesleyan University.

Pat Danahey Janin is a doctoral candidate in philanthropic studies at the Lilly Family School of Philanthropy at Indiana University. A native of Colorado, she has studied, volunteered, and worked in the United States and Europe in the cultural and educational fields, most recently for the Fulbright Commission in Paris. She continues to steward the summer Hallock awards for bicultural youth for the American Women's organization AAWE. Her current research focuses on the changing landscape and purpose of international volunteering, including government, higher education, and INGO programs. She received her MBA from ESCP Paris, her Magistère from the Sorbonne Paris IV, and her B.A. from Colorado State University.

Caitie Deranek Stewart is an Assistant Director of Development at The Indiana University School of Medicine, a nationally recognized medical education and research institution. She will complete her Masters of Arts in Philanthropic Studies from the IU Lilly Family School of Philanthropy and Masters of Public Affairs in Nonprofit Management from the School of Public and Environmental Affairs-IUPUI in 2016. Caitie joined the staff of the Lilly Family School of Philanthropy in 2011 and has experience managing fundraising events ranging from intimate major gift donor gatherings to large gala-style events in addition to an annual fund portfolio.

Roberta L. Donahue has over 25 years of experience in the nonprofit sector

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managing all areas of fundraising, as well as marketing, volunteers, and fiscal management. Currently, Ms. Donahue is Senior Development Officer for Indiana State University Foundation and serves on the faculty of The Fund Raising School of the Lilly School on Philanthropy at Indiana University. Ms. Donahue is a Certified Fund Raising Executive (CFRE), a past president of the Indiana Chapter of AFP and was selected as Outstanding Fund Raising Executive of the year in 2005. She earned a B.A. from Marian University, Indianapolis, and an M.B.A. from the State University of New York at Binghamton.

Sean Dunlavy serves as the Director of Fundraising and Institutional Advancement at the Indiana University Lilly Family School of Philanthropy. He is responsible for developing, cultivating, and soliciting support from a diversified portfolio of foundations, corporations, and individual donors to the School. Mr. Dunlavy has over 25 years of experience managing complex and comprehensive development and marketing programs including as Vice President for Development at the Indianapolis Symphony Orchestra and Executive Director for the Catholic Schools Foundation/Inner City Scholarship Fund in Boston, Massachusetts. He earned his B.S. in Business Administration at The University of Dayton and a Certificate in Fundraising Principles and Techniques from The Fund Raising School at the Indiana University Lilly Family School of Philanthropy.

Elizabeth A. Elkas, Associate Dean for Development with the Indiana University School of Medicine, has more than 30 years of development experience in the nonprofit sector. She started her career with the Indiana University Foundation and then helped grow the medical school development team from three people to over 30 professionals. Now leading a fourth capital campaign, she has presented at the Association of American Medical Colleges and the Association for Healthcare Philanthropy. She has served on the faculty of The Fund Raising School of the Lilly Family School of Philanthropy since 1991. Ms. Elkas holds a B.A. from Bucknell University and an M.F.A. from Indiana University.

Deborah Eschenbacher is president of Eschenbacher & Associates, Philanthropic Consulting, located in Columbus, Ohio. With over 30 years' experience in the nonprofit sector, she has served in lead development positions and as executive director of several state affiliates of national nonprofit organizations. Her higher education development experience includes major gifts officer at The Ohio State University and director of corporate and foundation relations at Ohio University. As a faculty member of The Fund Raising School, she began teaching courses in 1997. She was the second student

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to receive an M.A. in philanthropic studies from Indiana University and also holds a B.S. from Ohio University. Active in her community, she serves on several nonprofit boards.

Derrick Feldmann is president of Achieve, a creative research and campaigns agency, and a sought-after speaker, researcher, and advisor for cause engagement. He is a recognized thought leader in helping the cause and corporate industry understand the next generation donors, activists, and employees who are redefining causes. Derrick is the lead researcher and creator of the Millennial Impact Project, an oft-cited, multiyear study of how the next generation supports causes, and the producer of MCON, a national annual conference of more than 15,000 viewers that explores whether and how organizations are taking advantage of today's heightened interest in causes to create movements.

Tyrone McKinley Freeman, Ph.D., is Assistant Professor of Philanthropic Studies and Director of Undergraduate Programs at the Indiana University Lilly Family School of Philanthropy, where he teaches undergraduate and graduate students and directs the B.A. degree program in Philanthropic Studies. For 15 years he worked in fundraising, holding leadership positions in community development, youth and family social service, and higher education organizations, where he engaged in annual and major gift fundraising. His writings have appeared in academic and practitioner publications including Advancing Philanthropy and The International Journal for Educational Advancement. He is co-author of Race, Gender, and Leadership in Nonprofit Organizations. As a scholar, Tyrone's research focuses on the history of American philanthropy and fundraising, African American philanthropy, and philanthropy and higher education.

James M. Greenfield, ACFRE, FAHP, has served since 1962 as a national fundraising executive to three universities and five hospitals. He retired from Hoag Memorial Presbyterian Hospital in February 2001 after 14 years as Senior Vice President, Resource Development and Executive Director, Hoag Hospital Foundation, where more than $120 million was raised during his tenure. He is the author and editor of 10 books and more than 40 articles and chapters on fundraising management. Most recently, he is the author of Fundraising Responsibilities of Nonprofit Boards (2009), part of the BoardSource Governance Series.

Elena Hermanson earned a B.A. degree in Philanthropic Studies from the Indiana University Lilly Family School of Philanthropy with honors in 2015, and was recognized as the Chancellor's Scholar for her academic excellence. She has

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worked as a research and editorial assistant for Giving USA and co-authored Giving USA Spotlight: Giving Tuesday: A Planned Day of Spontaneous Giving and Giving USA Spotlight: The Next Generation of Alumni Giving. Additionally, she has researched and made an academic conference presentation about social impact bonds as innovative financing tools for social change. She is dedicated to her family and giving back to the community. Elena hopes to follow in the footsteps of her grandfather, who has dedicated his life to others as a mentor, community leader, and philanthropist.

James M. Hodge has worked with philanthropists at Bowling Green State University, Mayo Clinic, and the University of Colorado for more than 35 years. Focusing on gifts of significance, Jim has worked primarily with benefactors who have given more than one million dollars to the institutions he has served. He has been labeled a reflective practitioner, an individual who not only inspires philanthropy but also seeks to advance best practices for the profession. Jim has been a long-standing faculty member at Indiana University–Purdue University Indianapolis, an instructor for The Fund Raising School, a distinguished lecturer at the Lake Institute on Faith and Giving, and a frequent keynote speaker on the topics of value-based philanthropy, transformational philanthropy, and working with entrepreneurs as philanthropists.

Frances Huehls is Associate Librarian for the Joseph and Matthew Payton Philanthropic Studies Library at Indiana University–Purdue University Indianapolis. She holds Master's degrees in Philanthropic Studies and Library and Information Science, as well as a Ph.D. in Higher Education from Indiana University. Dr. Huehls is editor of Philanthropic Studies Index and PRO: Philanthropy Resources Online.

David P. King is the Karen Lake Buttrey Director of the Lake Institute on Faith and Giving as well as Assistant Professor of Philanthropic Studies within the Indiana University Lilly Family School of Philanthropy. He is a graduate of Samford University and Duke Divinity School. His Ph.D. in Religion is from Emory University. Having served local churches and national faith-based organizations, he is also fueled by facilitating conversations with faith leaders, donors, and fundraisers (of all generations) around the intersections of faith and giving. Trained as an American religious historian, his research interests include investigating how the religious identity of faith-based nonprofits shapes their motivations, rhetoric, and practice.

Sarah King is pursuing a Master of Arts in Philanthropic Studies at the Indiana University Lilly Family School of Philanthropy. She completed her undergraduate studies in Biology with a concentration in Neurobiology and

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Physiology at Purdue University. Sarah's background motivates her to focus on social and biological foundations of philanthropic behavior. She is also an active participant in her community, serving as a board member for several nonprofit organizations, including her leadership role as president for the nonprofit organization Project Sweet Peas.

Sara Konrath is an Assistant Professor of Philanthropic Studies at the Indiana University Lilly Family School of Philanthropy. She received her Ph.D. in Social Psychology from the University of Michigan. Konrath is the director of the Interdisciplinary Program on Empathy and Altruism Research (iPEAR), a research lab with a primary focus on motivations, traits, and behaviors relevant to philanthropic giving, volunteering, and other prosocial behaviors. Her work has been published in top scientific journals and has been featured in national media outlets. See www.iPEARlab.org for more information.

Elisabeth Lesem holds a Master's in Philanthropic Studies from the Lilly Family School of Philanthropy. She had the privilege of serving as Graduate Assistant to Founding Dean Emeritus of the Lilly Family School of Philanthropy, Gene Tempel, for two years. Now, she is the Foundations Officer at the Indiana Repertory Theatre. During her master's coursework, she had the opportunity to help the Board of Directors at a family foundation build their grantmaking program. She is honored to contribute to the 4th edition of Achieving Excellence in Fundraising.

Margaret M. Maxwell, CEO of Maxwell Associates, works with nonprofit organizations throughout the country in the areas of strategic planning, governance, marketing, and fund development planning. She also is a faculty member of The Fund Raising School, a program of the Lilly Family School of Philanthropy at Indiana University. Prior to her work as a consultant, she was Vice President for The Children's Museum of Indianapolis, one of the nation's premier cultural institutions, where she led the fundraising, marketing, strategic planning, and earned income programs. She received both a B.A. in journalism and an MBA in marketing from Indiana University.

Debra Mesch is Director of the Women's Philanthropy Institute (WPI) at the Indiana University Lilly Family School of Philanthropy. She holds the Eileen Lamb O'Gara Endowed Chair in Women's Philanthropy at the Lilly Family School, the first such endowed chair in the world. Dr. Mesch's primary responsibility at WPI is to guide the research agenda on the role of gender in philanthropy. She and her colleagues have written several reports for the Women Give series examining the effects of age, marital status, and income of gender differences in the likelihood and amount of giving to charity. In addition

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to the translational reports for the Women Give series, Dr. Mesch is author or co-author of many articles for academic journals.

Sarah K. Nathan is Assistant Professor of Nonprofit Management and Philanthropy at Bay Path University in Longmeadow, Massachusetts. She holds a Ph.D. in philanthropic studies from the Indiana University Lilly Family School of Philanthropy. She began her career in philanthropy as a 19 year old student, calling alumni at her alma mater, Concordia College in Moorhead, MN, where she later became Associate Director of the Annual Fund. Today, her research interests include the fundraising profession, membership organizations, women in the nonprofit sector, and philanthropy education.

Una Osili is Professor of Philanthropic Studies and Director of Research at the Lilly Family School of Philanthropy. Dr. Osili leads the School's extensive research program on household financial behavior and charitable giving. Dr. Osili provides guidance for the research for Giving USA and directs the School's signature research project, the Philanthropy Panel Study (PPS), the largest and most comprehensive study of giving and volunteering of American families over time. Dr. Osili is a prolific researcher with an extensive body of published research. She earned her B.A. in Economics at Harvard University and her M.A., and Ph.D. in Economics from Northwestern University.

Andrea Pactor is Associate Director of the Women's Philanthropy Institute. In this role, Andrea is responsible for program and curriculum development and implementation, marketing, social media, and operations. She has organized four national symposia on women and philanthropy, co-authored several book chapters, and co-developed the first-ever online course about women and philanthropy for The New York Times Knowledge Network and the online conference, SHEMAKESCHANGE, about the intersection of women, money, and philanthropy. Andrea has served arts, education, and faith-based organizations as a professional and volunteer. She has a BA from The American University, an MA from the University of Michigan, and an MA in Philanthropic Studies from Indiana University.

Katie Prine graduated from Hanover College and has served the nonprofit community in Indianapolis for more than a decade through her work in development. Her experiences at Noble of Indiana, the Indianapolis Symphony Orchestra, and currently at the Indiana University Lilly Family School of Philanthropy as the Associate Director of Development have offered her the opportunity to raise funds for unique and diverse organizations as well as helped her acquire skills in building the annual fund, prospect management and solicitation, database management, strategic planning, and planned giving.

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Philip M. Purcell is Vice-President for Planned Giving at Ball State University Foundation. He received his B.A. degree (magna cum laude) from Wabash College and his J.D. and M.P.A. degrees (with honors) from Indiana University. Phil currently serves as a volunteer on the Tax Exempt Organizations Advisory Council for the Internal Revenue Service. He teaches Law and Philanthropy, Nonprofit Organization Law, and Planned Giving as adjunct faculty for the Indiana University Maurer School of Law and the Lilly Family School of Philanthropy. Phil has served on the boards for the Partnership for Philanthropic Planning and Association of Fundraising Professionals (Indiana Chapter). He is a member of the Indiana and American Bar Associations.

Dean Regenovich is Assistant Vice President for Development at the University of South Florida Foundation. He previously served as the Assistant Dean for Advancement at the Indiana University Maurer School of Law, Executive Director of Development for the Office of the Vice President at Indiana University, and Director of Planned Giving for the Indiana University Foundation. Dean has 20+ years of experience in major gift and planned gift fundraising. He is a faculty member at The Fund Raising School at the Indiana University Lilly Family School of Philanthropy where he teaches planned giving and major gift fundraising. Dean has an LLM in Taxation from Georgetown University Law School, a JD from The John Marshall Law School, and a BS in Accounting from Indiana University.

Patrick Rooney is Professor of Economics and Philanthropy and the Associate Dean for Research and Academic Affairs at the IU Lilly Family School of Philanthropy. Previously, he served as the ED of the Center on Philanthropy and its Director of Research, which he built into one of the nation's premier philanthropy research organizations, leading research projects for organizations such as Giving USA Foundation, Bank of America, American Express, Google, The Aspen Institute, and United Way Worldwide. He has served on the boards and advisory committees of many nonprofits. He earned his BA, MA, and Ph.D. in Economics at Notre Dame.

Genevieve G. Shaker, Ph.D., is one of the few academicians who is also a practicing advancement officer. She is on the faculty at Indiana University– Purdue University Indianapolis where she serves as associate dean for development and external affairs in the IU School of Liberal Arts and assistant professor of philanthropic studies in the Lilly Family School of Philanthropy. Her research focuses on higher education advancement and she has a particular interest in faculty and staff philanthropic giving. In 2015, she was recognized nationally by the Association of Fundraising Professionals, which named her as

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its Emerging Scholar.

Jeff Stanger is a nonprofit consultant and a member of the faculty of The Fund Raising School at the Lilly Family School of Philanthropy at Indiana University. He has taught international fundraising professionals via the Community Solutions Program, part of IREX and the U.S. State Department. He has worked in the fundraising field for nearly 20 years, including 10 with The Salvation Army and six as the Indiana Divisional Development Director. His consulting firm is Cause Geek and specializes in digital fundraising, annual campaigns, and grants.

Amy N. Thayer is Director of Research at Achieve where she is responsible for identifying and devising appropriate methodologies and data-collection strategies for projects like the Millennial Impact Report and the Millennial Running Study. Amy's research integrates cross-disciplinary scholarship with mixed-methodological inquiry in an attempt to uncover specific mechanisms responsible for individuals' behaviors. Amy has conducted examinations of youth philanthropy, philanthropy education, and the charitable giving of high net worth donors, as well as projects devoted to the understanding and promotion of generosity. She has a vast history working in the nonprofit sector, previously leading research projects in a university setting, a major HMO, municipal government; and for organizations serving girls and at-risk youth.

Lilya Wagner is director of Philanthropic Service for Institutions and is on the faculty of The Fund Raising School and The School of Philanthropy at Indiana University as well as St. Mary's University in Minnesota. Previously Lilya was Vice President for Philanthropy at Counterpart International in Washington, D.C., an international development organization. During 14 years of association with the Center on Philanthropy at Indiana University she served as associate director of The Fund Raising School and director of the Women's Philanthropy Institute. She is a frequent speaker and workshop presenter in North America and also internationally. Her published writings include articles and book chapters on philanthropy, fundraising, and the nonprofit sector.

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PART ONE

A PHILANTHROPIC CONTEXT FOR FUNDRAISING

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CHAPTER ONE A PHILOSOPHY OF FUNDRAISING

By Henry A. Rosso

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Introduction by Eugene R. Tempel

Twenty-five years have passed since Henry “Hank” Rosso undertook the development of Achieving Excellence in Fund Raising. The original edition won the prestigious Staley Robeson Prize from the National Society of Fund Raising Executives – now the Association of Fundraising Professionals. Fundraising was still two words then. Hank was a superstar among fundraisers. Many of us are privileged to call him our mentor.

Hank founded The Fund Raising School in 1974, 40 years prior to the time we began work on the fourth edition of Achieving Excellence in Fundraising. The work Hank started has grown and prospered with The Fund Raising School as an integral part of the new Indiana University Lilly Family School of Philanthropy. However, we continue to feel his influence through the IU Lilly Family School of Philanthropy's Rosso Medal for Lifetime Achievement in Ethical Philanthropic Fundraising, through The Fund Raising School, through Achieving Excellence in Fundraising, fourth edition, and especially through this chapter.

In this chapter Hank offers his philosophy on fundraising, a philosophy developed over a lifetime of work as a fundraiser, consultant, and teacher. The principles upon which he founded The Fund Raising School in 1974 have stood the test of time and culture with adaptations and modifications rather than replacement, and so has his philosophy of fundraising. Both his principles and his philosophy have been substantiated by research on philanthropy, donor behavior, and fundraising available today. This is why we have continued to include Hank's Chapter, A Philosophy of Fundraising.

This chapter covers some of Hank's basic tenets, including:

The importance of mission in fundraising.

Why you exist is more important than what you do.

The importance of integrating fundraising into an organization.

Substituting pride for apology in fundraising.

Hank's original chapter, “A Philosophy of Fund Raising,” in subsequent additions, including this fourth edition, is included unaltered and in its entirety. The fourth edition is being published 25 years after Hank developed his original chapter. It is a tribute to all he contributed to the profession of fundraising and the development of philanthropy.

A central theme in Hank's philosophy and in the way he approached his work was “fundraising is the servant of philanthropy.” He opened and closed the first

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chapter of his book with that theme. Fundraising is not an end in itself. When it becomes that, both the organization and philanthropy are diminished and fundraising becomes a mere technical application of skills. Fundraising in Hank's view was only a means to an end that rested on organizational mission. We know today that donors are motivated to give primarily because they believe in the cause. The pillars that support Hank's central theme are as relevant today as they were in 1991. For example, research shows that high net worth donors depend on professional fundraisers and colleagues to help them make decisions about their giving (Indiana University Lilly Family School of Philanthropy, 2014).

The most significant of these pillars is “why do you exist?” This question enables an organization to articulate its mission in terms of the societal values it is fulfilling. Mission is what gives us the privilege to ask for philanthropic support. Mission is particularly important in an era where nonprofit organizations are encouraged to develop new income sources, undertake market-based activities, focus on social enterprise, form collaborations and partnerships, and approach venture philanthropists with confidence.

Hank's philosophy also rested on the role of the governing board. He saw governing boards as not only being responsible for fundraising but also for stewardship of the organization's mission and resources. The governing board today must ensure the public trust of the organization if fundraising is to be successful. Heightened calls for transparency and accountability make the role of the governing board even more important today than it was in 1991. Trust is the bedrock upon which philanthropy rests.

Fundraising as the servant of philanthropy must be part of an organization's management system. This is a pillar of Hank's philosophy of fundraising that is also critical today. Fundraising cannot be a separate, isolated, activity. Ensuring trust means conducting fundraising that is based on mission by staff and volunteers who are committed to the organization and who represent the organization with integrity. Staff and volunteers of an organization who embrace a culture of philanthropy enable fundraising by accepting philanthropy as a legitimate and important source of income to support a worthy cause.

Hank believed that philanthropy must be voluntary. Today this pillar of Hank's philosophy is more important than it was in 1991. The interest in self-expression through philanthropy calls for a more open approach by organizations. Pluralism becomes an important tenant. Another of Hank's beliefs is applicable here: “Fundraising is the gentle art of teaching people the joy of giving.” To ensure long-term donor engagement and donor satisfaction that lead to increased

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philanthropy, fundraisers must remember that giving is voluntary. As we will see in Chapter 2, contemporary research demonstrates that there is a joy in giving.

Perhaps the greatest contribution Hank made was to teach the substitution of pride for apology in fundraising. As the number of people engaged in fundraising has grown, and fundraisers have sought a more professional approach, recognizing that fundraising is a noble activity based on organizational mission has been central to professional development. Another of Hank's statements about soliciting a gift is applicable here: “Set yourself aside and let the case walk in.” The case for support as discussed in Chapter 4 gets back to the main reason why individuals give.

The last two paragraphs of this chapter carry the same subtitle as the opening line, with a slight variation: “Fundraising as Servant to Philanthropy.” Hank explained the role of fundraising in terms that foreshadow the models currently needed to assist wealth holders in determining their philanthropy. He wrote of fundraising: “It is justified when it is used as a responsible invitation guiding contributors to make the kind of gift that will meet their own special needs and add greater meaning to their lives.”

Today more than ever fundraisers need a philosophy of fundraising. The call for accountability, the need to inspire trust, the leadership of volunteers, the involvement of donors in their philanthropy, and the new approaches to philanthropy discussed in the following chapters all call for fundraisers to be reflective practitioners who can center themselves with a philosophy of fundraising. Hank's philosophy provides an excellent beginning for us to develop our own philosophy.

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A PHILOSOPHY OF FUNDRAISING

Fundraising is the servant of philanthropy and has been so since the seventeenth century, when Puritans brought the concept to the new continent. The early experience of fundraising was simple in form, obviously devoid of the multifaceted practices that characterize its nature in the contemporary United States. These practices now make fundraising more diversified and more complex than ever before.

The American spirit of giving is known and respected in other nations. American fundraising methods are equally known and admired abroad, as foreign citizens who have attended classes taught by The Fund Raising School will attest. Ironically, the practice of resource development that is so much a part of the culture, necessity, and tradition of not-for-profit organizations in the United States is not sufficiently understood, often misrepresented, and too often viewed with suspicion and apprehension by a broad section of our own population, particularly by regulatory bodies. Few still argue with the observation that fundraising has never been considered the most popular practice in this country.

Dean Schooler of Boulder, Colorado, a scholar and student of fundraising, takes the teleological view of a vitalist philosophy that phenomena are not only guided by mechanical forces but also move toward certain goals of self-realization. Indeed, fundraising is never an end in itself; it is purposive. It draws both its meaning and essence from the ends that are served: caring, helping, healing, nurturing, guiding, uplifting, teaching, creating, preventing, advancing a cause, preserving values, and so forth. Fundraising is values-based; values must guide the process. Fundraising should never be undertaken simply to raise funds; it must serve the large cause.

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Organizations and Their Reasons for Existing

Organizations of the independent sector come into existence for the purpose of responding to some facet of human or societal needs. The need or opportunity for service provides the organization with a reason for being, as well as a right to design and execute programs or strategies that respond to the need. This becomes the cause that is central to the concern of the organization. The cause provides justification for more intervention, and this provides justification for fundraising.

The organization may claim a right to raise money by asking for the tax- deductible gift. It must earn the privilege to ask for gift support by its management's responsiveness to needs, by the worthiness of its programs, and by the stewardship of its governing board. An organization may assume the right to ask. The prospective donor is under no obligation to give. The prospect reserves the right to a “yes” or a “no” response to any request. Either response is valid and must be respected.

Each organization that uses the privilege of soliciting for gifts should be prepared to respond to many questions, perhaps unasked and yet implicit in the prospect's mind. These may be characterized as such: “Why do you exist?”, “What is distinctive about you?”, “Why do you feel that you merit this support?”, “What is it that you want to accomplish and how do you intend to go about doing it?”, and “How will you hold yourself accountable?”

The response to “Who are you and why do you exist?” is couched in the words of the organization's mission statement. This statement expresses more than justification for existence and more than just a definition of goals and objectives. It defines the value system that will guide program strategies. The mission is the magnet that will attract and hold the interests of trustees, volunteers, staff, and contributors.

The answer to “What is distinctive about us?” is apparent in the array of goals, objective, and programs that have been devised to address the needs of the value system as well as serve as symbols of fidelity to it.

“How do we hold ourselves accountable?” is the primary question. It is a continuing call for allegiance to the mission. It acknowledges the sacredness of the trust that is inherent in the relationship with both the constituency and the larger community. The organization is the steward of the resources entrusted to its care.

It is axiomatic that change is a constant. Shifting forces within the environment

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quicken the pace of change, thus posing a new constant. Not-for-profit organizations must always be prepared to function in the center of whirling pressure.

Organizations cannot afford to be oblivious to the environment that surrounds, and indeed engulfs, them. Forces within the environment such as demographics, technology, economics, political and cultural values, and changing social patterns affect daily business performance, whether this performance pertains to governance, program administration, fiscal responsibility, or fundraising.

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To Govern or Not to Govern

Governance is an exercise in authority and control. Trustees, directors, or regents – the interchangeable nomenclature that identifies the actors in governance – are the primary stewards of the spirit of philanthropy. As stewards, they are the legendary “keepers of the hall.” They hold the not-for-profit organization in trust to ensure that it will continue to function according to the dictates of its mission.

The trustees must bear the responsibility to define and interpret the mission and ensure that the organization will remain faithful to its mission. Board members should accept the charge that trusteeship concerns itself with the proper deployment of resources and with the accompanying action, the securing of resources. Deploying resources is difficult if the required resources are not secured through effective fundraising practices. It stands to reason that trustees as advocates of and stewards to the mission must attend to the task of pressing the resources development program on to success.

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Institutionalizing Fundraising

Fundraising projects the values of the total organization into the community whenever it seeks gift support. All aspects of governance – administration, program, and resources development – are part of the whole. As such, these elements must be part of the representation when gifts are sought. Fundraising cannot function apart from the organization; apart from its mission, goals, objective, and programs; apart from a willingness to be held accountable for all of its actions.

Fundraising is and must always be the lengthened shadow of the not-for-profit entity, reflecting the organization's dignity, its pride of accomplishment, and its commitment to service. Fundraising by itself and apart from the institution has no substance in the eyes and heart of the potential contributor.

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Gift Making as Voluntary Exchange

Gift making is based on a voluntary exchange. Gifts secured through coercion, through any means other than persuasion, are not gifts freely given. They do not have the meaning of philanthropy. Rarely will gifts obtained under pressure or through any form of intimidation be repeated. These gifts lose their meaning.

In the process of giving, the contributor offers a value to the not-for-profit organization. This gift is made without any expectation of a material return, apart from the tax deductibility authorized by government. The reasons for making a gift are manifold.

In accepting the gift, it is incumbent upon the organization to return a value to the donor in a form other than material value. Such a value may be social recognition, the satisfaction of supporting a worthy cause, a feeling of importance, a feeling of making a difference in resolving a problem, a sense of belonging, or a sense of “ownership” in a program dedicated to serving the public good.

Trustees, administrators, or fundraising practitioners so often misconstrue the true meaning of this exchange relationship, and they violate the acknowledgement process by offering a return of substantive value. This alters the exchange, reduces the meaning of philanthropy, and diminishes the gift in its commitment to the mission. The transaction is one of a material exchange, a self-centered quid pro quo with none of the spirit of philanthropy in the exchange.

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Substituting Pride for Apology

Giving is a privilege, not a nuisance or a burden. Stewardship nourishes the belief that people draw a creative energy, a sense of self-worth, a capacity to function productively from sources beyond themselves. This is a deep personal belief or a religious conviction. Thoughtful philanthropists see themselves as responsible stewards of life's gifts to them. What they have they hold in trust, in their belief, and they accept the responsibility to share their treasures effectively through their philanthropy. Giving is an expression of thankfulness for the blessings that they have received during their lifetime.

The person seeking the gift should never demean the asking by clothing it in apology. Solicitation gives the prospect the opportunity to respond with a “yes” or a “no.” The solicitation should be so executed as to demonstrate to the prospective contributor that there can be a joy to giving, whether the gift measures up to the asking properly and in a manner that puts the potential contributor at ease.

The first task of the solicitor is to help the potential contributor understand the organization's case, especially its statement of mission. When a person commits to contribute to a cause and does so because of an acceptance of and a belief in the mission, then that person becomes a “stakeholder” in the organization and that for which it stands. This emphasizes that philanthropy is moral action, and the contributor is an integral part of that action.

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Fundraising as a Servant to Philanthropy

Philanthropy is voluntary action for the public good through voluntary action, voluntary association, and voluntary giving (Payton, 1988). Fundraising has been servant to philanthropy across the millennia. Through the procession of the centuries, the thesis has been established that people want and have a need to give. People want to give to causes that serve the entire gamut of human and societal needs. They will give when they can be assured that these causes can demonstrate their worthiness and accountability in using the gift funds that they receive.

Ethical fundraising is the prod, the enabler, the activator to gift making. It must also be the conscience to the process. Fundraising is at its best when it strives to match the needs of the not-for-profit organization with the contributor's need and desire to give. The practice of gift seeking is justified when it exalts the contributor, not the gift seeker. It is justified when it is used as a responsible invitation, guiding contributors to make the kind of gift that will meet their own special needs and add greater meaning to their lives.

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CHAPTER TWO THE JOY OF GIVING

By Sara Konrath

According to the Corporation for National & Community Service, 62.6 million Americans devoted nearly 7.7 billion hours to unpaid volunteer work in 2014, which was valued at an estimated US$173 billion. Moreover, Giving USA has found that over $358.38 billion was donated to charitable organizations in 2014. Eighty percent of this came from individuals and bequests. Fundraising professionals likely helped to bring a significant portion of individual donations into nonprofit organizations. Development staff are integral to the success of nonprofit organizations.

And yet, development staff have high turnover. A recent national study of development directors found that 50% of them planned on leaving their current job in the next 2 years, and 40% of them planned on leaving the field of fundraising altogether (Bell and Cornelius, 2013). While there are many organizational characteristics that likely feed into fundraisers' levels of job satisfaction, one factor that should not be ignored is fundraisers' perceptions of themselves. Therefore, this chapter covers:

Fundraisers' role in facilitating the joy of giving

The psychological benefits of giving

The social benefits of giving

The physical health benefits

Ways to maximize the benefits of giving.

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Fundraisers are Givers, Not Takers

Although fundraisers participate in a number of complex day-to-day activities, most of these are focused in some way on raising money for a nonprofit organization. In other words, their job is to ask people for money. Fundraisers are often seen as salespeople. But the salesperson role is not fully accurate, because salespeople are perceived as being money-oriented and driven by profits. The fundraiser-as-salesperson analogy may make fundraisers see themselves as takers—taking hard-earned money and valuable time from those who often do not have much of either. Indeed, a 2014 Gallup Poll found that salespeople are among the least trusted professions in the United States, comparable to politicians.

But in more ways, fundraisers are actually givers. Without fundraisers, nonprofits could not follow their important missions. Donors and volunteers could not be as effective in actualizing their personal values. Fundraisers are the high priests of giving. Most donors cannot directly help people in the most effective way possible. For example, someone who feels genuinely concerned about the plight of homeless people can certainly give money directly to homeless people they encounter. But this is likely to address the problem in a limited and temporary way. Giving to a long-term shelter that also has education and job-training programs may be a better investment in terms of what the donor wants to accomplish. Fundraisers help to match people's values with opportunities to give, and in doing so, they are helping to feed the hungry, take care of the sick, share musical and cultural experiences, and educate generations of students.

Besides the obvious social good this accomplishes, there has been a lot of research recently on the potential benefits that happen to givers themselves. As Hank Rosso, founder of The Fund Raising School at the Indiana University Lilly Family School of Philanthropy wrote “Fundraising is the gentle art of teaching the joy of giving.” This chapter summarizes the research on the health and well- being benefits of giving money (charitable donations) and time (volunteering). When fundraisers help givers to give, they may not realize that they are bringing these givers more happiness and better health. By being mindful of these health and well-being benefits of giving, I hope that fundraisers can see themselves as serving an important giving role, so that they can also personally experience the joy of giving.

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Psychological Benefits of Giving

Many of us believe that if we only had more time and money, we would be happier. In fact, there is much research finding that giving away our time and money makes us happier, even though after giving we have less for ourselves.

There have been many studies examining volunteering and well-being, with the vast majority of them finding that people who regularly volunteer have higher happiness, life satisfaction, and psychological well-being than those who do not volunteer. Of course, volunteers are different than non-volunteers in a number of ways that could explain why they are happier. For example, they tend to have higher incomes and have more social and psychological resources than non- volunteers. But there has been a lot of research finding that these differences do not fully explain the happiness effects of giving time. Even when scholars statistically control for these variables, the results remain similar.

In addition, a few studies have used a method that is also used to test to see if a new drug works, a randomized control trial. Researchers start with a group of people who are pretty similar at the beginning, and then ask half of these people to volunteer for a period of time, and the other half to be on a waiting list. These studies have found that volunteering actually causes people to have higher self- esteem and feel less depressed (Li and Ferraro, 2005). Other studies find that helping others does not need to be done in the context of a nonprofit organization to increase people's well-being (Tkach, 2005; Otake, et. al., 2006). Being kind to others feels pretty good.

Does giving away money also make people happier? Before answering this question, it is important to note that there is often overlap between the people who volunteer and who donate their money. Givers tend to give generously in a variety of ways, so fundraisers should be mindful that sometimes their next big donors are literally right under their nose volunteering for their events and programs. In fact, the “time-ask effect” finds that if people are first asked to give their time to an organization, and then only later asked to make a financial donation, they will give more of both (Liu and Aaker, 2008). When people are first asked to make a financial donation, they give less time and money. This is because thinking about money automatically activates concepts of individualism and self-focus (Vohs, Mead, and Goode, 2006).

There are far fewer studies on the psychological effects of giving money compared to giving time, however, the results in these studies are pretty consistent. Most of these studies find that giving money to others, including charities, is associated with more happiness than spending it on oneself. For

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example, one study asked participants to spend a small amount of money (either $5 or $20) on themselves versus another person, and then the researchers measured participants' mood at the end of the day. People who spent their money on someone else were happier than those who spent it on themselves, regardless of the amount of money spent (Dunn, Aknin, and Norton, 2008). Other research has found that simply recalling spending on others has similar mood boosting effects. These positive emotions, in turn, inspire even more giving behavior (Aknin, Dunn, and Norton, 2012). So, giving feels good, even if we are just recalling a time when we gave, and these good feelings could pay off in terms of increased donations.

Donating money in the specific context of the workplace not only makes people happier, but it has been shown to increase job satisfaction and make people work better on teams (Norton, et. al., 2010). This implies that corporate giving programs should be channeled directly through employees in addition to being handled by corporate development directors. Giving employees a chance to choose where corporate charitable dollars should be spent may have implications for employee retention and productivity.

Fundraisers need not worry that they might erase these benefits of giving by sharing the news with potential donors. Even when people are aware of the potential happiness effects of giving, this does not diminish the psychological rewards (Anik, et. al., 2009). Indeed, one study found that donors gave more when they learned of the potential happiness-building effects of giving (Benson and Catt, 1978).

Nor should fundraisers worry that these psychological rewards will necessarily be fleeting. Several studies demonstrate that giving is associated with long- lasting good feelings. For example, people who are asked to regularly and frequently do small kind acts for others feel happier up to 2 months later (Tkach, 2005). There are similar findings when it comes to giving money to others. For example, one study found that people who chose to spend more of their employment bonus on others felt happier up to 2 months later (Dunn et. al., 2008), while another study found that participants who donated more money to charity at one time point were happier up to 9 years later (Choi and Kim, 2011).

Even more incredible is that these happiness boosts seem to be noticeable by outside observers (Aknin, Fleerackers, and Hamlin, 2014). It is not just that people think they are happier after they give, but it seems as though they are genuinely experiencing more positive emotion.

These effects are pretty strong and have been found in many studies. And yet,

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when people are asked to guess which one will make them happier, spending money on themselves versus spending it on others, they have no clue about the powerful effects of giving on their own happiness. Instead, they think they will be happier when spending on themselves (Dunn et. al., 2008). This, in part, could help to explain why people so desperately chase after the latest gadgets and fashion, but it also reveals an opportunity for fundraisers to fill in a knowledge gap.

Not only can giving money make people happier, but it also makes them feel richer. A recent study gave some participants the opportunity to make a donation to a needy child, while other participants were not given this opportunity (Chance and Norton, 2015). Donating money made people feel as though they were doing better financially than average. This is despite the fact that objectively they had less money because they just gave some away.

Giving time to others can lead to similar feelings of abundance (Mogilner, Chance, and Norton, 2012). A recent paper gave some participants the opportunity to give their time to help others (e.g. write a letter to a sick child) while other participants either spent time on their own or were allowed to leave the experiment early, thus buying them time. Across four studies, the authors found that giving time to others led to more feelings of “time affluence,” the subjective feeling of having a lot of free time available. Amazingly, people feel like their schedules are less rushed after giving away time to others, despite the fact that objectively they have less time because they just gave some away.

The psychological benefits of giving and volunteering go beyond the increased experience of positive emotions among psychologically healthy populations. Giving is also associated with fewer symptoms of depression and anxiety (Hunter and Linn, 1980; Musick and Wilson, 2003), which, if untreated, could become full blown psychological disorders. Among those who have ongoing psychological problems, such as post-traumatic stress disorder or social anxiety, giving can help to manage their symptoms (Alden and Trew, 2013).

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Social Benefits of Giving

The joy of giving and volunteering can also spread to others.

First, there is research finding that giving is literally contagious. People's giving behavior spreads into their closest friendships and family members, and into their broader social networks (Tsvetkoa and Macy, 2014). This is because when people are the recipients of generosity or see someone else give, this inspires us to give as well. For example, parents can influence their children by not only giving, but by directly talking about their giving behaviors with their children (Wilhelm, Brown, Rooney and Steinberg, 2008). Parents also have an influential role in the development of giving-related traits in their children. Research has found that there are certain parenting styles that predict more empathic and giving children. Highly involved fathers and parents whose discipline focuses on others' feelings have more empathic children (Koestner, Franz and Weinberger, 1990).

On the flip side, parents also have an influence on their children's narcissistic self-focus. Narcissism is a personality trait that involves an inflated sense of self- esteem and entitlement. Just as parents can encourage their children to be more aware of others' needs, they can help to create self-centered and miserly children. All they need to do is indulge their children's every whim, reminding their children of how superior and special they are (Brummelman, et. al., 2015).

Not only is giving socially learned and spread, but it also enriches people's social relationships, both in quantity and quality. Kind people are likeable, and others want to be around them. For example, the number one trait that both men and women are looking for in a romantic partner is kindness (Sprecher and Regan, 2002). One randomized control trial asked one group of preadolescents to do 3 small kind acts for others each week for four weeks, and another group to visit 3 new places each week. The researchers found that the teens in the kindness group became more popular with their peers by the end of the study (Layous, et. al., 2012).

Volunteering and donating money to important causes can help people to meet others who share similar passions, and more deeply enmeshes people within their local communities. For example, one study found that older adults who were assigned to volunteer had more social connections over a period of 4 to 8 months, while those in the wait-list control group had a decline in their number of social connections. Volunteers also experienced a 16.7% increase that others would support them if they needed it, while people in the control group experienced a 25.3% decline in perceived social support (Fried, et. al., 2004).

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Among older adults, volunteering helps people who are dealing with shifting roles, for example, as older adults retire and their children become more independent of them (Greenfield and Marks, 2004). It can help to give people a sense that they are important and needed, which can help to buffer them from the potential stresses of aging, including losing important social relationships and experiencing declining health.

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Physical Benefits of Giving

There has been a lot of research examining the physical health implications of volunteering and giving. For example, interesting new work has been examining what happens in the brain while people make charitable donations. This research finds that when donating money, the pleasure / reward centers of the brain light up as much as when receiving money (Harbaugh, et. al., 2007; Moll, et. al., 2006). These physiological effects mirror the psychological effects discussed earlier in this chapter.

However, there is only limited research examining the immediate physiological consequences of giving. Our research has found that people who are highly empathic have lower levels of the stress hormone cortisol after stressful events (Reinhard, et. al., 2012; Ho, et. al., 2014). Other research confirms that shifting one's focus away from the self and toward others can buffer oneself from stressors (Ableson, et. al., 2014), and that giving money to others is directly associated with lower cortisol (Dunn, et. al., 2010). In addition, volunteering has been shown to be associated with better cardiovascular health in a number of studies.

Taken together, increased positive emotions and decreased stress hormones are likely to have implications for physical health. Indeed, volunteers self-report being healthier than non-volunteers (Kumar, et. al., 2012). And our research has found that volunteering is associated with good health especially for religious people (McDougle, et. al., 2013). Perhaps by volunteering, religious people are affirming their most cherished beliefs to help and serve others.

Giving can also make people physically stronger, at least temporarily. In one study researchers asked people who were waiting for a subway to hold a 5 pound weight with their arms stretched horizontally for as long as they could. They were then given a $1 payment and half of them were asked to donate it to UNICEF (they all did), while the other half just kept it. People who donated the money were able to hold the 5 pound weight for a longer period of time than those who did not donate the money. Two other studies confirmed that giving literally made people physically stronger (Gray, 2010). That feeling of “I can make a difference” is literally energizing.

The Joy of Giving Across the Lifespan

Given all of the benefits of giving described so far, it should perhaps no longer be surprising that volunteering is associated with longevity. An analysis of over a dozen studies across a 25-year period found that volunteering is associated with

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a 47% reduced risk of dying overall, and a 24% reduction in the risk of dying when statistically adjusting for demographic variables. There are no known studies on whether giving money is associated with a reduced mortality risk, or whether volunteering is associated with certain causes of mortality more than others (e.g. cancer, heart disease, injuries).

Most of the research so far on the effects of giving time and money been conducted on older adults, because they tend to have more time to volunteer for nonprofits and to be in studies. Studies have generally found that the health and well-being benefits of giving tend to be stronger as people age (Van Willigen, 2000). This might be because of different types of volunteer jobs across different age groups, or different motives for volunteering as people age. Yet, giving time and money is also associated with more psychological well-being and better health in middle-age adults, adolescents, and even children.

The joy of giving around the world

Similarly, most of the research on the effects of giving time and money have been conducted on people from North America and Western Europe. However, there is an emerging cross-cultural literature that suggests people from many cultures around the world experience the joy of giving and volunteering.

There are a number of large cross-national studies that take advantage of the Gallup World Poll, which conducts regular large surveys that represent approximately 95% of the world's population. These studies have examined between 136 to 142 countries worldwide, and confirmed that in most cultures, volunteering is associated with higher well-being (86% of cultures studied) and better health (88% of cultures studied), and donating to charity is associated with higher well-being (90% of cultures). These results are similar even in poor countries where resources are scarcer, and are not explained by the fact that volunteers and donors may differ in demographic factors such as gender, age, religiosity, and income.

Taken together, all of this research shows that even though of course giving away money and time means that there is less left for the self, it does not feel that way. The paradox of generosity is that people feel happier, richer, and healthier after giving their money and time to others. Having money in itself does not make people happier, but the way people spend it can affect their happiness.

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The Importance of Motives

So should we give in order to experience these benefits? No, there is evidence that “nobody can reap the personal rewards that generous practices tend to produce by going through the motions of generosity simply in order to reap those desired rewards” (Smith and Davidson, 2014, p. 7).

There are many different reasons to volunteer. Some of these reasons are more focused on others' needs, such as wanting to help others or joining in with loved ones on causes that are important to them. Others are more focused on how one might personally benefit from helping, such as learning new things, feeling better about oneself, escaping one's troubles, and helping to promote one's career.

One study examined whether the motives of 4,085 Australian volunteers were associated with a number of well-being indicators. The researchers found that people who volunteered for other-oriented reasons had higher self-esteem, psychological well-being, and self-efficacy, which is a sense of oneself as competent (Stukas, et. al., 2014). These other-oriented volunteers also felt more socially connected. People with the more self-oriented motives of escaping their troubles or promoting their career scored lower on these well-being indicators. One potential personal benefit of volunteering is learning new things, and in this study, having this motive was associated with better well-being.

One of our studies used the Wisconsin Longitudinal Study to examine whether motives for volunteering among a sample of 3,376 older adults predicted their risk of dying four years later. We found that older adults who volunteered for reasons related to others' needs had a lower chance of dying four years later (Konrath, et. al., 2102). Those who said that they volunteered because they could personally benefit had a slightly higher chance of dying four years later. In our study we statistically controlled for a number of different potential explanations for these results, such as their previous mental and physical health and their socioeconomic status. So we know that these results are not because other- oriented volunteers were healthier or richer than more self-oriented volunteers.

When it comes to the reasons that people choose to donate money, there is much less research. So far, scholars have identified several reasons for making donations, without examining the implications for health and well-being. Similar to volunteering, many people donate money because they are aware of the need and they care about the recipients. They also donate because they trust that organizations will use their money appropriately and productively. There are also a number of less prosocial motives for giving: to avoid being embarrassed when

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publicly asked to donate or to fit in with others, to gain power or recognition for their gifts, to enjoy tax incentives for giving, to avoid feeling guilty, or to feel good about themselves. One additional major reason that people give is simply because they are asked. Studies find that the vast majority of charitable donations (between 85-86%) come after being directly asked to give.

Based on the findings that other-oriented motives for volunteering are better for health and well-being, it is likely that other-oriented motives for charitable donations are associated with similar benefits. However, future research will provide more insight on this question.

Maximizing the joy of giving

Besides having other-focused motives, there are a number of practices that seem to maximize the joy of giving.

First, the social aspects of giving seem to contribute to their happiness. For example, when scholars examined a set of 37 studies on the relationship between volunteering and well-being, they found that volunteering was associated with double the amount of happiness when the volunteering activities involved directly interacting with others, versus a more indirect type of helping (Wheeler, Gorey and Greenblatt, 1998). There are no known studies that examine similar questions with respect to charitable donations, but I would expect that giving in person (e.g. directly to a fundraiser or at a charity event) would make people happier than giving in other ways (e.g. mail, online, automatic payroll deductions).

Next, there are specific ways to give that can maximize the joy of giving. Framing the giving instruction as more concrete (e.g. make someone smile) instead of more abstract (e.g. make someone happy) increases the happiness of giving to others (Rudd, Aaker, and Norton, 2014). So, fundraisers should consider designing their donation appeals to elicit simple concrete behaviors, rather than higher level conceptual ones.

Giving in a variety of different ways and to different types of people also makes people happier than giving the same way and to the same people over and over again (Tkach, 2005). This suggests that, just like a healthy diet of food, a healthy giving diet should involve variety to avoid the acts becoming routine. Since some of the joy of giving comes from its novelty, fundraisers should think about how to encourage a variety of giving experiences among their constituents.

At times, it is not even necessary to actually give in order to experience the joy of giving! As in the case of motives, the psychological aspects of giving and

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donating are at least as important as the behaviors themselves. For example, simply counting the number of kind acts that one performs can make people happier (Otake, et. al., 2006). People who became more aware of their kind acts by counting them ended up feeling happier and more grateful compared to control participants. Altruistic attitudes also matter, such as saying that you enjoy helping others, or that you try to help even if others can't return the favor. In fact, altruistic attitudes at one time point had a larger independent effect on positive emotions than prosocial behaviors such as volunteering for a nonprofit organization or helping friends (Kahana, et. al., 2013). It is the thought that counts – being ready to serve and help matters, even if actual opportunities for helping do not present themselves.

Why is giving good for people?

Why is giving good for people's health? The ultimate why, in terms of why as a species we should find giving so rewarding, is that we are hard-wired for face-to- face contact that includes lots of mutual touch, eye contact, and smiles. Such interactions activate a complex bonding and stress regulation system that originates in parental caregiving, but generalizes beyond infants and to any distressed person (Preston, 2013). Ultimately, I believe that giving is good for us because when giving to others we are acting in accordance with our deepest nature.

But we can also analyze specific processes that happen in the moment when someone is giving, versus over time, after repeated practices of giving.

The immediate act of giving causes people to shift their focus of attention away from themselves and toward others. Focusing on the self can be quite toxic for mental health, while shifting one's focus of attention toward others can reduce anxiety and stress. Indeed, one study found that volunteering helped people to take their mind off their work during leisure time, and create new psychosocial resources to cope with stress (Mojza, et. al., 2010). Other leisure activities did not seem to have such benefits.

When giving people also tend to make comparative judgements about the situations of the recipients versus their own situations. Giving helps people to feel more gratitude for their own situations; “It could be worse.” In one study that provides some initial support for this idea, people felt higher life satisfaction after giving to a charity that helped poor people than after giving to a charity that did not involve a downward comparison (Huang, 2014). However, this might be because giving to people directly is more pleasurable than more indirect giving.

As reviewed in this chapter, giving leads to more positive emotion in the

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moment, which helps to repair and restore one's mind and body from stressors. Positive emotion in itself predicts healthier and longer lives (Danner, Snowdon, and Friesen, 2001), so the “joy of giving” in itself may be a critical explanation for the physical health benefits of giving.

It is also worth underscoring the increases in physical activity that come with giving. For example, one study found that volunteers had a 31% increase in the distance walked each week, while control group participants declined 9% (Freid, et. al., 2004). Volunteering means getting off the couch and out of the house, and physical activity in itself is associated with better health and well-being and greater longevity.

Next, what happens after repeated giving interactions? Over time, giving makes people see that they have an important role to play in relieving others' suffering and making others happy. In other words, giving increases givers' sense of meaning and purpose in life (Musick and Wilson, 2003). Studies have found that people with a defined sense of purpose in life live longer and healthier lives than those with a less defined sense of purpose (Reker, Peacock and Wong, 1987).

Over repeated giving interactions, people start to meet like-minded others, feel more connected and less lonely, and increase their sense that others are there for them. In themselves, social connections predict healthier and longer lives. Repeated giving interactions are like deposits into a resilience bank account with compound interest. All of the potential explanations of why giving is associated with better health have something in common: they help people to deal with unanticipated negative life events and stressors. For example, studies have found that volunteering helps people to deal with changing roles and provides a sense of stability in unstable situations (Schwartz and Sendor, 1999; Meier and Stutzer, 2008). Giving to others functions as a social insurance policy, that if something bad happens, everything will be okay. Again, this is as long as the giving comes from a true spirit of generosity.

Is there such thing as giving too much?

Of course, it is possible for people to give beyond their means in terms of time and money, but I suspect that joyful givers know their limits.

When it comes to volunteering, studies have found that volunteering between 1 and 15 hours per week is associated with optimal health and well-being (Choi and Kim, 2011). Volunteering less than 1 hour per week is not beneficial, perhaps because this represents more intermittent volunteering, rather than regular weekly practices of giving.

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As for charitable donations, one recent study found that Americans who donated 10% of their money were happier than those who donated less than 10% of their money (Smith and Davidson, 2014). The authors used 10% as a cutoff point since some religions encourage this amount of giving, however, they did not explore whether there a point at which giving was no longer associated with increased happiness. This could be because it was highly unusual for people to give this much away—only 2.7% of their participants did so. Another study found that the more money people gave, the higher their psychological well-being, and the authors did not find any cutoff point after which there were fewer benefits of giving (Choi and Kim, 2011). In fact, spending money on others is associated with increased well-being even in relatively poor countries (Aknin, et. al., 2013). However, it seems reasonable to assume that at a certain point, donating to charity might be bad for well-being, especially if people give to the point that they cannot take care of their own needs. Such over-giving is rare, and the more common problem is under-giving.

In general, it seems best for people to give from their surplus resources. For example, it might be better for lower income people to give their time than their money, since researchers have found that volunteering predicts higher happiness in low income people compared to high income people (Dulin, et. al., 2012). This might have to do with available resources of lower income people, who may have more surplus time than money.

Finally, when it comes to other acts of kindness, the more people give, and the more they make giving part of the practice of their everyday life, the more joy they experience from giving. For example, performing nine acts of kindness per week leads to more happiness than performing three acts per week (Tkach, 2005).

A daily dose of “Vitamin G”

Doctors regularly recommend that their patients make healthy eating choices, get lots of physical activity, and refrain from smoking. Yet at this point in time, it is hard to imagine that doctors would recommend a daily dose of Vitamin G (giving) to their patients. However, as more research on the links between altruism and health emerges, perhaps one day giving will be included in the list of healthy lifestyle behaviors (Hirschfelder and Reilly, 2007). Until then, development professionals play an important role in disseminating this information. By helping others to give by keeping up with the latest research on the health effects of givers, fundraisers are giving as much (or even more) than the donors that they cultivate.

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Conclusion: A Recipe for Giving

It seems appropriate for a chapter title that refers to a famous cookbook to end with a recipe for giving. These measurements and ingredients are taken from previous research summarized in this chapter, but expert givers (like expert cooks), will make changes to suit their lifestyle and preferences. These are just guidelines, and there is still a lot left to know about how to optimize giving for our health and well-being.

When using this recipe givers must understand that there are many ways to be generous. Overall, I recommend creating practices of generosity since research finds that such regular practices are what seem to drive the psychological benefits of giving (Smith & Davidson, 2014). Whether you are a marathon runner, a concert pianist, or learning a new language, the best way to become an expert at a new skill is to break it down into smaller repeated pieces that can be practiced regularly, typically at least once per day. The recipe for “Giving Goulash” is as follows:

Slice and dice your schedule and budget so that you can give your time and money to nonprofit organizations. This will create regular times to practice and prioritize generosity.

Add specific concrete giving goals (e.g. make someone smile, feed a child).

Reduce your focus on the self, and increase your focus on others when giving. Let your self-focus simply evaporate as others' needs become central.

Measure your kind acts: pay attention to the ways that you give to others, whether it's opening a door for a stranger, letting a neighbor borrow a tool, listening to others, or volunteering and donating to charities.

Add a pinch of gratitude for the resources that allow you to give.

Mix with social interactions: give together with other people to maximize the benefits.

Season with a willingness to be the recipient of others' giving. Allowing others to give to you not only benefits them in all the ways described in this chapter, but helps you to avoid compassion fatigue.

Variety is the spice of giving. Give in many different ways to maximize flavor.

Simmer the different ingredients of giving in oxytocin, the bonding and stress regulation hormone.

Be ready to serve whenever needed, with a caring attitude toward others.

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Savor the pleasure of making a difference in others' lives.

Repeat often, whenever you see someone hungry for kindness.

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Discussion Questions

1. Compare and contrast the effects of giving money versus giving time on givers' health and well-being. Is there more research on one area or the other? Is giving money or time better for health and well-being?

2. Do you think that there some people or circumstances for which giving might be harmful, rather than helpful, for health or well-being?

3. If someone feels good after donating their money or time to a charitable organization, does this mean that their actions were not altruistic?

4. How can fundraisers apply these findings to their own professional practice?

a. How might this information be used to help them feel more satisfaction with their jobs?

b. How might this information be used to help them achieve their fundraising goals?

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Key References/Further Reading

Aknin, L., Barrington-Leigh, C. P., Dunn, E. W., Helliwell, J. F., Biswas-Diener, R., Kemeza, I., Norton, M. I. (2013). Prosocial Spending and Well-Being: Cross- Cultural Evidence for a Psychological Universal. Journal of Personality and Social Psychology, 104(4), 635-652.

Anderson, N. D., Damianakis, T., Kröger, E., Wagner, L. M., Dawson, D. R., Binns, M. A., Cook, S. L. (2014). The benefits associated with volunteering among seniors: A critical review and recommendations for future research. Psychological Bulletin, 140(6), 1505-1533.

Bekkers, R., Konrath, S., & Smith, D. H. (2014, in press). Conducive biological influences (genetics, physiology, neurology, and health). In D. H. Smith, R. Stebbins & J. Grotz (Eds.), The Palgrave Research Handbook of Volunteering and Nonprofit Associations.

Bekkers, R., & Wiepking, P. (2010). A literature review of empirical studies of philanthropy: Eight mechanisms that drive charitable giving. Nonprofit and Voluntary Sector Quarterly.

Calvo, R., Zheng, Y., Kumar, S., Olgiati, A., & Berkman, L. (2012). Well-being and social capital on planet earth: cross-national evidence from 142 countries. PLoS ONE, 7(8), e42793.

Dunn, E., & Norton, M. (2013). Happy money: The science of smarter spending. New York, NY: Simon and Schuster.

Fried, L., Carlson, M., Freedman, M., Frick, K., Glass, T., Hill, J., Zeger, S. (2004). A social model for health promotion for an aging population: Initial evidence on the experience corps model. Journal of Urban Health, 81(1), 64-78. doi: 10.1093/jurban/jth094

Harbaugh, W. T., Mayr, U., & Burghart, D. R. (2007). Neural responses to taxation and voluntary giving reveal motives for charitable donations. Science, 316(5831), 1622-1625.

Holt-Lunstad, J., Smith, T. B., & Layton, J. B. (2010). Social Relationships and Mortality Risk: A Meta-analytic Review. PLoS Med, 7(7), e1000316. doi: 10.1371/journal.pmed.1000316

House, J., Landis, K., & Umberson, D. (1988). Social relationships and health. Science, 241(4865), 540-545. doi: 10.1126/science.3399889

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Kumar, S., Calvo, R., Avendano, M., Sivaramakrishnan, K., & Berkman, L. F. (2012). Social support, volunteering and health around the world: Cross-national evidence from 139 countries. Social Science & Medicine, 74(5), 696-706.

Konrath, S. (2014). The power of philanthropy and volunteering. In F. Huppert & C. L. Cooper (Eds.), Wellbeing: A Complete Reference Guide. Interventions and Policies to Enhance Wellbeing (Vol. VI, pp. 387-426). West Sussex, UK: John Wiley & Sons Ltd.

Konrath, S., & Brown, S. L. (2012). The effects of giving on givers. In N. Roberts & M. Newman (Eds.), Handbook of Health and Social Relationships: American Psychological Association.

Leary, M. R. (2004). The curse of the self: Self-awareness, egotism, and the quality of human life. New York, NY: Oxford University Press.

Moll, J., Krueger, F., Zahn, R., Pardini, M., de Oliveira-Souza, R., & Grafman, J. (2006). Human fronto–mesolimbic networks guide decisions about charitable donation. Proceedings of the National Academy of Sciences, 103(42), 15623- 15628.

Okun, M. A., Yeung, E., & Brown, S. (2013). Volunteering by Older Adults and Risk of Mortality: A Meta-Analysis. Psychology and Aging 28(2), 564-577.

Schreier, H. M., Schonert-Reichl, K. A., & Chen, E. (2013). Effect of Volunteering on Risk Factors for Cardiovascular Disease in Adolescents: A Randomized Controlled Trial. JAMA pediatrics, 167(4), 327-332.

Smith, C., & Davidson, H. (2014). The Paradox of Generosity: Giving We Receive, Grasping We Lose. New York, NY: Oxford University Press.

Wheeler, J. A., Gorey, K. M., & Greenblatt, B. (1998). The beneficial effects of volunteering for older volunteers and the people they serve: a meta-analysis. International journal of aging & human development, 47(1), 69-79.

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CHAPTER THREE PLAN TO SUCCEED

By Timothy L. Seiler

After completing this chapter you will be able to:

1. Recognize the multi-step process of the fundraising cycle.

2. Assess your organization's strengths and weaknesses in fundraising planning and execution.

3. Evaluate your role as the staff person who oversees the fundraising process.

4. Instruct others, staff and volunteers, how they can be helpful in fundraising planning and in the execution of the plan.

This chapter is about the importance of planning for fundraising. Experience shows that fundraising success comes from effective planning. Organizations with a fundraising plan are likely to raise more money than organizations without a plan (Nonprofit Research Collaborative, 2014). Typically, the more effective the plan, the more effective the fundraising. Using a planning model called the fundraising cycle, this chapter describes a multi-step process that begins with an awareness of what donors seek in their gift-giving and ends with developing a relationship of repeated giving. While the fundraising cycle can be used also for evaluation, the chapter does not address evaluation because that topic is covered in subsequent chapters in this book (see Chapter 22, “Organizational Development for Fundraising,” and Chapter 23, “Budgeting for Fundraising and Evaluating Performance”).

The first thing to note about the fundraising cycle is its name: cycle. The fundraising process is continuous. The ongoing nature is illustrated by the continuing arrows inside the steps of the model. These arrows represent the loop formed by the interrelated steps of the fundraising process. The complexity of the fundraising process lies in part in the reality that various constituencies from whom gifts are sought will be at different stages in the process. The fundraising manager must coordinate the various activities necessary for moving the constituencies through the phases in the cycle.

The second thing to note about the fundraising cycle is the number of discrete steps constituting the whole. Starting with the step labeled “Planning Checkpoint: Examine the Case,” and proceeding clockwise around the cycle, there are fourteen steps. Soliciting a gift comes at step thirteen. Planning to solicit a gift involves twelve steps. Skipping or shortchanging any of the steps

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leading to the solicitation will end in less than desirable results. Soliciting the gift (step thirteen) does not stop the process; it begins it anew. Thus, the fundraising cycle is a continuous process of planning for and asking for charitable gifts, practicing good stewardship, and establishing ongoing relationships with donors (see Chapter 31, “Stewardship and Accountability”).

Prior to the first step in the fundraising cycle is the nonprofit's need to understand marketing principles and how they apply to the fundraising process. Such awareness requires the nonprofit to develop feedback systems to measure and monitor the needs, perceptions, wants, and values of prospective donors. What do prospective donors seek for their own lives that they can find through involvement with the nonprofit? The better the nonprofit understands that exchange, the better it will manage its fundraising cycle. A growing body of research demonstrates that a primary motivator of giving is the “warm glow” that comes from charitable giving (see Chapter 2, “The Joy of Giving”).

The first step in the fundraising cycle (Figure 3.1 ), a planning checkpoint, is the examination of the nonprofit's case for support. The case is the sum of all the reasons why anyone should give charitable gifts to the organization. Each nonprofit must develop its own compelling case based on how it meets clearly defined and understood community needs. The case illustrates how the nonprofit serves the community, providing benefits and adding value.

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FIGURE 3.1 THE FUNDRAISING CYCLE. Source: Adapted from Henry A. Rosso and Associates, Achieving Excellence in Fund Raising (2nd ed.), p. 24. Copyright © 2003 Jossey-Bass inc., Publisher. Reprinted by permission of Jossey-Bass inc., a subsidiary of john Wiley & Sons, inc.

The case must provide persuasive responses to these questions:

1. Why does the organization exist? The answer lies in the human/social problem or need addressed by the nonprofit. This is the organization's mission, its raison d'etre.

2. What services or programs does the nonprofit provide to meet the need or solve the problem?

3. Why should prospective donors (individuals, corporations, foundations) provide gifts and what benefits accrue to donors who make gifts?

These answers form the basis of the organization's mission. The next step is to analyze market requirements. The nonprofit must test its mission as articulated through its case against the wants and needs of the market or gift sources from which it seeks charitable gifts. Only the marketplace is a true test of the validity

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of the nonprofit's proposed solution to the human, social problems it addresses. Such market validation is critical to successful fundraising. If the organization seeks funding from several markets – individuals, corporations, and foundations, for example – it must test its mission in each market.

If the markets do not understand or accept the importance of the needs being addressed by the nonprofit, fundraising faces a serious obstacle. Worse, if the markets do not even know of the nonprofit or the needs it addresses, fundraising is not possible. Donors will give to those organizations they care about which addresses the needs they care about.

In meeting clearly identified community needs understood to be of value to the potential donors the nonprofit can formulate compelling arguments for why its work merits philanthropic gifts.

Next comes the preparation of a needs statement. This is the organization's plan for carrying out its work towards mission fulfillment. Program plans are projected for annual needs and for longer-term needs. Financial planning follows program planning and defines the resources required for carrying out programs and delivering services. This includes descriptions of sources of revenue needed to support the program plan. This is the justification for fundraising.

The preparation of this needs statement involves the volunteer leadership of the nonprofit, especially board members, selected major donors, and other volunteers who can affect the organization and its fundraising. The needs statement shapes future fundraising goals and objectives and must include not only ongoing programmatic needs but also longer-term needs for capital improvements and financial stability, such as an endowment.

The next planning checkpoint is the definition of objectives. The programs for fulfilling the mission must be translated into specific, measurable action plans for how the organization intends to provide solutions to problems it addresses. If the mission statement explains “Why,” goal statements answer “What,” and objectives provide an answer to “How.” To be credible to the market sources objectives must be realistic and achievable within the resources available to the organization.

The acrostic SMART helps clarify what objectives are:

Specific

Measurable

Achievable

Results-oriented

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Time-determined

An example of a fundraising objective might read something like this: “By expanding our social media presence combined with direct mail, we will increase by 10% the number of new donors to the annual fund within the next fiscal year.” In short, objectives are specific illustrations of how the organization will execute its fundraising plan.

Next comes the first action step in the fundraising cycle: involvement of volunteers. While earlier steps involved board members and selected other volunteers in planning, this step calls for action in developing and carrying out effective fundraising strategies. Because an effective gift solicitor is one who believes in and is committed to the cause, the earlier involvement steps prepare the volunteers to be effective solicitors of their peers. Historically, and still today, the most effective gift solicitation is that of a peer volunteer asking for gifts in a face-to-face solicitation (Schervish and Havens 1997, p. 241).

One of the most effective ways to involve volunteers is in the validation of the organization's needs statement. Philanthropic support requires constant validation not only by the board but also by other volunteers. For volunteers to give and solicit philanthropic gifts they must reaffirm the needs statement through continued involvement in analyzing the nonprofit's plans. Such involvement is critical before launching the fundraising program or campaign.

The next step in the cycle is an evaluation of gift markets to determine their ability and perceived willingness to fund the nonprofit's programs through charitable gifts. This step includes making informed judgments about which markets to approach and the gift amounts to be sought.