Strategic planning for public and nonprofit organizations 4th edition pdf

“Stewardship Recognition Strategy And A Marketing Strategy.

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

2

“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

3

4

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

5

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.)

6

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

7

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,

8

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.

9

10

ACHIEVING EXCELLENCE IN FUNDRAISING

FOURTH EDITION

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

11

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

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748- 6008, or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty. While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with the respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor the author shall be liable for damages arising therefrom.

For general information about our other products and services, please contact our Customer Care Department within the United States at (800) 762-2974 and outside the United States at (317) 572-3993 or fax (317) 572-4002.

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

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

12

http://www.wiley.com/go/permissions
http://booksupport.wiley.com
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.

13

14

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

15

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

16

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

17

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

18

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

19

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

20

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

21

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:

22

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

23

Index EULA

24

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

25

Chapter 29

Table 29.1

Chapter 36

TABLE 36.1

TABLE 36.2

26

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

27

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

28

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.

29

30

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

31

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

32

33

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

34

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

35

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

36

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

37

http://www.wiley.com/college/tempel
career and the other on the resources available to assist in that development.

38

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.

39

40

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.