CFRE – all Questions and answers, 100% Accurate. Graded A+. latest version

CFRE – all Questions and answers, 100% Accurate. Graded A+. latest version Philanthropy - ✔✔-voluntary action for the common good... - Robert L. Payton, as quoted in Greenfield's Fundraising Fundamentals Number o ...

CFRE – all Questions and answers, 100% Accurate. Graded A+. latest version Philanthropy - ✔✔-voluntary action for the common good... - Robert L. Payton, as quoted in Greenfield's Fundraising Fundamentals Number of nonprofits registered with IRS - ✔✔-US: 1.4 mil; 63% registered as 501c3... 161K in Canada Donors give for the following reasons - ✔✔-moral obligation to help... personal satisfaction of helping others... to remove guilt for not giving... to maintain/improve social status... peer pressure... compassion/empathy... personal identification... self-interest... religious influence... need to be needed... substitution for active participation... support for mission and purpose... personal relationship... appreciation for mission... evidence of one's success... to express anger, or love, or hope... to end fear... out of the cause's appeal... to be remembered... to gain recognition... to join group, sense of belonging ... to preserve the species... to gain immorality... for psychic self-satisfaction... desire to provide public goods... to fulfill condition for employment... in response to leadership from peers... to be agent for public good... satisfaction from seeing others satisfied... tax benefits giving nearly always implies - ✔✔-some sort of connection to the org giving may provide - ✔✔-some type of return in what the org will do for them or someone close to them effective fundraisers seek to discover... - ✔✔-what is important to any potential donor, and tap that need to encourage and support giving. This requires being able to look at the org's mission and programs through the eyes of the donor rather that from the perspective of those who run the org. key activities in fundraising - ✔✔-research, marketing, relationships, ethics & accountability Research supports fundraising by - ✔✔-identifying stakeholders and potential donors, providing info about stakeholders, ensuring appropriate resource allocation, planning, evaluation, rating stakeholders for relationship building and service priorities Roles of marketing in fundraising - ✔✔-communicate purpose and activities, promote mission and case for support, encourage participation in fundraising activities, encourage donations, communicate fundraising results, advocate the case Relationships - ✔✔-the heart of fundraising Relationships support fundraising by - ✔✔-adding prospects and developing them into active/regular donors, support other types of contributions, engage stakeholders in the organization, integrate with research and marketing, allow getting to know prospects and interests, support stewardship ethics and accountability ensure - ✔✔-stakeholder trust and confidence, assets are managed and accounted for data collected and used properly, donor privacy and rights maintained, reporting/other requirements fulfilled, programs executed as promised, donors are retained Why research? - ✔✔-ensures appropriate resource allocation, helps build staff and volunteer confidence, adds element of joy an discovery to prospecting How does Research ensure appropriate resource allocation? - ✔✔-allows staff/volunteers to focus efforts on prospects who can provide the most good.... Helps in planning how to use volunteers in the organization (number and types of volunteers needed) How does Research help build staff and volunteer confidence? - ✔✔-Backed by good information, the process of cultivation and solicitation has greater chances for success. How does good Research add an element of joy and discovery to prospecting? - ✔✔-adds confidence, which eliminates anticipation of prospecting as a chore, makes it more like solving a good mystery - with whom can we successfully connect? How can we make our case compelling? How much will they give? Marketing - a formal definition - ✔✔-the process of gathering, recording, and analyzing information pertaining to the marketing of goods and services Marketing - a simpler definition - ✔✔-the process of finding out the wants and needs of current and potential markets Rosso's Concentric Circles - outer circle - ✔✔-People with similar interests Rosso's Concentric Circles - at the core - who are these primary stakeholders? - ✔✔-Major Donors, Board, Management Staff (these people have the responsibility to bring those in the outer circles closer) Rosso's Concentric Circles - second to outer circle - ✔✔-Former Participants Rosso's Concentric Circles - closes to core - ✔✔-Clients, Members, Employees, Volunteers, General Donors Critical Factors for a Philanthropy-Friendly Environment - ✔✔-donor-focused research... targeted cases, constituents, methods... strategic communications... stewardship - the most important of all The critical balance - ✔✔-Development professionals must find a way to balance the needs of the community with the interests/needs of donors and the needs of the organization Prospecting: the definition - ✔✔-The systematic acquisition and recording of data that forms the basis for establishing, maintaining, and expanding the long-term gift relationship, with the ultimate goal of converting donors into major gift donors (looking for the fundraising gold!) 7 points of constituency development - ✔✔-Identify fundable projects (part of org's strategic plan and objectives)... match prospects to projects (use Rosso's model)... Conduct research in ways that are: thorough and realistic, cumulative and ongoing (keep current), organized, ethical and confidential... Identify opportunities to involve prospects What's the difference in a Prospect (suspect) and a Qualified Prospect? - ✔✔-Prospect/suspect is a possible source of support whose philanthropic interests appear to be a match with your organization, whose ability to give, interests, and linkages have not been qualified via research..... Whereas a Qualified Prospect is a prospect who continues to qualify as a logical source of support for the organization throughout a research, evaluation, and cultivation process the best research method depends on... - ✔✔-the org's scope, resources and objectives... and on whether prospects are individuals, business/corp's, foundations, gov agencies, or other nonprofits Research methods to consider... - ✔✔-mailed/electronic questionnaires... internet databases... in person interviews... telephone interviews Four sources of information for Research - ✔✔-1. Personal contacts (conversations, interviews, surveys)... 2. Publications/reports (journals, newspapers, directories, magazines, philanthropic directories, annual reports, corp/foundation community involvement reports... 3. Participation records (event attendees, program participants, those who inquire)... 4. Public information information to include in a useful prospect profile - ✔✔-complete contact info, biographical data, business history, giving history with your org, cultivation/solicitation contact records, publicly available giving info from other orgs, sources of info checked for prospect and most recent review dates, general and specific interests Research pitfalls - ✔✔-putting off research until you "have time", expecting interns or new volunteers to know what to gather, sending out cultivation/solicitation teams with incorrect information, trying to find out everything about everybody Prospect/donor profiles help you select the right... - ✔✔-right person... to ask the right person... at the right time... in the right way... for the right amount Inquiries to use in researching foundations... - ✔✔-is there support for similar agencies?... Does the foundation clearly state support for the type of project and/or contribution sought?... Is funding provided in the org's geographic area?... Is the request amount compatible with prior giving history? Inquiries to use in researching corporations... - ✔✔-are board members affiliated with company?... Are services used by employees and dependents?... Are current donors/volunteers employed or have affiliations?... Does the organization purchase company products?... Does corporate interest match products/services?... are donation decisions made locally or at corporate level?... are needs and priorities of two entities aligned? Using electronic data enhancement... - ✔✔-analysis of giving history and donor information... screening of prospect/donors to identify "wealth indicators"... data gathering from a variety of sources enhances the in-house database... resulting in a need to be more strategic. 3 primary types of giving campaigns - ✔✔-Annual Giving, Capital/Major Campaigns, Planned Giving What is the "workhorse" fundraising tool of every org? - ✔✔-Annual Giving - typically provides operating support for ongoing programs. Essential first stage that precedes all others. Which type of giving campaign is ideal for first-time donors to get them started, and for those you are seeking to upgrade? - ✔✔-Annual Giving What is the "special needs" fundraising campaign... generally having a specific purpose and running a specific time period? - ✔✔-Capital/Major Campaign Which type of campaign lays the groundwork for involving new volunteers and donors and sets the stage for increased giving? - ✔✔-Capital/Major Campaign What is the bedrock on which fundraising campaigns are built, and which supports and informs everything you do? - ✔✔-Research Marketing emerges from which 2 plans? - ✔✔-the Strategic Plan and the Development Plan Activities generally a part of marketing - ✔✔-Research... Segmenting markets... setting overall and program goals... planning organizational strategies... budgeting and resource allocation... communications... public relations... evaluation A key point when Marketing: It's not the money that's important, but rather... - ✔✔-what the money does! Instead of taking the marketing approach of telling people how great we are, what is the more successful approach? - ✔✔-come from the point of view of the target audience... answering for them the questions... "what's in it for me? Why should I get involved? What has the org done or will it do to affect me in my life?" successful execution of an effective marketing plan can help an organization to - ✔✔-bring awareness of the org to target audience, create a positive environment in community, get constituent buy-in, encourage involvement, challenge and inspire people, set the stage for fundraising efforts, focus on donor motivations and program/client outcomes, create link b/w org and stakeholders Why do you need to know your audience when marketing? - ✔✔-the most successful programs/products are those that are carefully targeted Goal of effective marketing? - ✔✔-Bring about a transaction that is mutually beneficial. what should be in a good marketing plan? - ✔✔-achievable goals, identified target markets, clearly articulated messages, specific strategies to achieve goals, assignment of resources, defined time frames, indicators of success, methods to monitor and evaluate progress What type of statement describes how the org is unique, generally stating niche in the community? This statement should describe in a few concise words what the org is all about so that when people read it, they will instantly "get" the org. Makes the mission of the org simple and compelling? - ✔✔-Positioning Statement What comes first? Marketing or Communication Tools? - ✔✔-Marketing research first! Must first know audience, what they want/need, how you will meet needs, how they like to receive info... etc. Effective communication requires - ✔✔-two-way interaction so both sides know a connection has been made, and perhaps acted upon. To be effective, communication has to be - ✔✔-personal! Better results if personalized as much as possible to target group What type of marketing is this? A business provides a portion of their sales to an org for the good will that accrues from helping a worthy cause. - ✔✔-Cause-Related Marketing Venture What's at the top of the Hierarchy of Effective Communication? - ✔✔-Visit What's at the bottom of the Hierarchy of Effective Communication? - ✔✔-Print/Broadcast Media What is the order of communication types of the Hierarchy of Effective Communication (from bottom to top)? - ✔✔-Print/Broadcast Media, Conferences/Events, Telephone, Visit When marketing planned giving, staff's role should be to provide information, but not... - ✔✔-advice What is the key element of capital giving not present in other forms of fundraising? - ✔✔-Urgency The role of media relations in a capital campaign - ✔✔-tell the story from the point of view of how what you are doing will benefit the audience and their community... compelling interest to viewers/listeners/readers. Which website contains a database of 1.8 million IRS-Recognized Nonprofits? - ✔✔-Guidestar (ensure your org's info on Guidestar is complete and accurate... very important tool and shouldn't be ignored.) The basis of fundraising is the... - ✔✔-organization's case for support. What is the expression of the cause and all the reasons why prospective donors might want to contribute to its advancement? - ✔✔-Case for Support The case is driven by... - ✔✔-the mission and strategic plan of the org. what describes the org's goals and objectives and covers the programs and services it provides? - ✔✔- Case for Support The case helps make it possible to match - ✔✔-the org's needs to the donor's needs. What are the 3 key elements of a Case? - ✔✔-Org's Purpose, Content, Focus The Purpose section of the case should include: - ✔✔-Orgs' aims, purposes, and mission... presents a case for current programs, shows how new programs will benefit, and dramatically show the org's impact on its community in a variety of ways, now and in the future. The Content of the case should centralize information about a variety of subjects, including: - ✔✔-org's needs, cause, mission, goals, objectives, strategies & task plans, governance, staff competence, budget, financial history, facilities Typically, the case will have a particular focus... it might be one, two, or all three of these: - ✔✔- unrestricted operating support, restricted gifts for operations, restricted gifts for special needs - capital, endowment, or other What is a written version of the case for a specific constituency or campaign, derived from the org's overall case? - ✔✔-Case Statement The Case Statement includes: - ✔✔-the org's services, programs, objectives... how the fundraising goals support the org... the ways the org will remain productive, the difference a donor's support will make, what the org must do to improve/change its activities, aims and value to society Who said this?... The case statement is the one definitive piece of the whole campaign. It tells all that needs to be told, answers all the important questions, reviews the arguments for support, explains the proposed plan for raising the money, and shows how gifts may be made, and who the people are who vouch for the project, and who will give it leadership and direction. - ✔✔-Harold J Seymour, 1935, Noted fundraising pioneer Why is it important to obtain feedback and ownership in developing the case statement? - ✔✔-allows for key groups to provide input, general agreement to emerge, identify questions that may be raised ahead of time allowing them to be addressed before they are brought up by others, enhance guy-in. Why is it important to recruit volunteer leadership in developing the case statement? - ✔✔-when prospective volunteers have questions, the case statement helps provide answers and gives them confidence in the plan and direction. why is it important to test the market with your case statement? - ✔✔-determine how potential major donors feel about the org's direction and proposed development goals. Provides a vehicle to bring prospective major donors into the planning process and allows them to react to the proposed objectives, highlighting strengths and weaknesses as well as which components appeal to which constituents. The final case statement can be the basis of content for: - ✔✔-website, proposals, campaign prospectus, newsletters, individual presentations, brochures, appeals, press releases, speeches ways to segment constituencies - ✔✔-strongest supporters, regular donors, those with greatest interest/ability to give, those most interested in campaign elements Things to consider in case statement for major donor constituents: - ✔✔-point out you are looking for a few major givers, ask for advice and participation, state needs more briefly, emphasize leadership, be candid about request, develop low-key "insider" appearance that is not too slick Things to consider in case statement for Community Audience constituents: - ✔✔-emphasize economic contributions of your org to the community Things to consider in case statement for Corporate constituents: - ✔✔-emphasize any services you provide to the corp or its employees Things to consider in case statement for Foundation constituents: - ✔✔-avoid formal printing... be prepared to fit the foundations' proposal format... address annual goals, hidden agendas, and stated areas of interest. To ensure a successful case statement: - ✔✔-know about or collect org info... talk to everyone... know the expectations/interests of the target constituency... relinquish pride of authorship... and write, rewrite, rewrite, then rewrite! The case statement should be reader-oriented, rather than - ✔✔-organization-oriented Elements of the Development Process - ✔✔-Developing the case for support... prospect research... cultivation and constituency development, solicitation strategies... ac