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FundraisingFORDUMmIES2ND‰EDITIONby John Mutz and Katherine Murray

FundraisingFORDUMmIES2ND‰EDITIONby John Mutz and Katherine Murray

Fundraising For Dummies , 2nd EditionPublished byWiley Publishing, Inc.111 River St.Hoboken, NJ 07030-5774www.wiley.comCopyright 2006 by Wiley Publishing, Inc., Indianapolis, IndianaPublished simultaneously in CanadaNo part of this publication may be reproduced, stored in a retrieval system, or transmitted in any formor by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except aspermitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the priorwritten permission of the Publisher, or authorization through payment of the appropriate per-copyfee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax978-646-8600. Requests to the Publisher for permission should be addressed to the Legal Department,Wiley Publishing, Inc., 10475 Crosspoint Blvd., Indianapolis, IN 46256, 317-572-3447, fax 317-572-4355, oronline at http://www.wiley.com/go/permissions.Trademarks: Wiley, the Wiley Publishing logo, For Dummies, the Dummies Man logo, A Reference for theRest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies.com and related tradedress are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates in the UnitedStates and other countries, and may not be used without written permission. All other trademarks are theproperty of their respective owners. Wiley Publishing, Inc., is not associated with any product or vendormentioned in this book.LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: THE PUBLISHER AND THE AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITHOUTLIMITATION WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CREATEDOR EXTENDED BY SALES OR PROMOTIONAL MATERIALS. THE ADVICE AND STRATEGIES CONTAINEDHEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION. THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHERPROFESSIONAL SERVICES. IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT. NEITHER THE PUBLISHER NOR THE AUTHORSHALL BE LIABLE FOR DAMAGES ARISING HEREFROM. THE FACT THAT AN ORGANIZATION ORWEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHERINFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFORMATION THE ORGANIZATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE.FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVECHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ.For general information on our other products and services, please contact our Customer CareDepartment within the U.S. at 800-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002.For technical support, please visit www.wiley.com/techsupport.Wiley also publishes its books in a variety of electronic formats. Some content that appears in print maynot be available in electronic books.Library of Congress Control Number: 2005932588ISBN-13: 978-0-7645-9847-0ISBN-10: 0-7645-9847-3Manufactured in the United States of America10 9 8 7 6 5 4 3 2 12O/RQ/RQ/QV/IN

About the AuthorsJohn Mutz: John Mutz is a fundraising expert and speaker who has an extensive array of fundraising credits. He was named 1997 Volunteer Fundraiser ofthe Year by the Indiana Chapter of National Association of FundraisingExecutives. In 1999, John served as Chairman of the United Way of CentralIndiana, which raised more than 36.5 million. From 1996 to 1998, John servedas Chairman of the Indianapolis Zoo, where he chaired a 14.5 million fundraising campaign for White River State Park Gardens. From 1989 through 1994,John was the president of the Lilly Endowment, one of the nation’s five largestprivate foundations, which supports the causes of religion, education, andcommunity development. The Endowment included in its grant-making activityspecial grants intended to improve the financial viability of nonprofit organizations. It was also during his time there that the Lilly Endowment made thegrant that brought the Fundraising School to the Center on Philanthropy atIndiana University Purdue University at Indianapolis (IUPUI).In 1988, John was the Republican Candidate for Governor of Indiana, duringwhich time he raised 4 million for the campaign. He is also co-founder of theIndiana Donor’s Alliance, a statewide organization of Community Foundations.In addition to his board positions, John serves as a regular speaker for theExecutive Leadership Institute (National Society of Fundraising Executives),the National Council of Foundations, and The Center on Philanthropy. He hasalso been a speaker for the Rocky Mountain Council of Foundations andHillsdale College and has given dozens of speeches to community foundations.John served as Indiana’s Lieutenant Governor from 1980 to 1988 and recentlyretired as president of the state’s largest electric utility.Katherine Murray: Katherine Murray has written dozens of books on a varietyof topics, ranging from computers to parenting. From her early Introduction toPersonal Computers (1988, Que Corporation) to Discovering PCs (1997, IDGBooks) to The Working Parents’ Handbook (1996, Park Avenue Productions),Katherine has specialized in writing how-to books for general audiences. Anumber of years ago, Katherine’s “how-to” writing led her into the nonprofitworld, when she volunteered her research and writing skills to help selectednonprofit organizations with missions close to her heart. Since that time,Katherine has completed a certification in Fundraising Management from theIU Center on Philanthropy and become a kind of “fundraising coach” for smalland struggling nonprofits.Today, Katherine continues her work as a nonprofit consultant — often working as a volunteer — helping organizations return to their missions, composeattention-getting case statements, develop fundraising plans, create publishing and media strategies, and research and write grant proposals. In additionto her nonprofit work, Katherine is the Publisher of KIDSRIGHTS, a companyin Indianapolis, Indiana, that publishes and distributes materials for childrenand families in crisis. KIDSRIGHTS materials are often used by nonprofit professionals who serve families facing the difficult issues of domestic violence,child abuse, rape recovery, teen parenting, and drug and alcohol addictions.It is Katherine’s hope that Fundraising For Dummies, 2nd Edition, will givethose organizations what they need to make their fundraising more effectiveand serve a greater number of families than they ever have before.

DedicationTo the thousands of volunteers who give of their time, effort, and wealth tosupport nonprofit causes throughout the world. These people truly are theindividuals who possess the “habit of the heart” that Alexis de Tocquevillewrote about in his great book Democracy in America.Authors’ AcknowledgmentsWe would like to thank a number of people who have helped us by volunteering their anecdotes, fundraising tips, editorial prowess, and technical expertise during the writing of this book. First thanks go to Burton Weisbrod, BettyBeene, Robert Payton, Ken Gladish, Peter Goldberg, Jeff Bonner, and KenBode, for their professional expertise and insights. Thanks also to the folks atWiley, in particular Tracy Boggier and Jennifer Connolly, for helping to shapethis book’s first edition into a magnificent updated second edition. Specialthanks go to our families, for encouraging and supporting us in the midst oflate nights, long hours, and looming deadlines.Lastly, heart-felt thanks go to all the volunteers, staff members, and leadersin the many nonprofit organizations we have served throughout the years.We’ve been touched and inspired by your dedication and persistent work tomake this world a better place, and we hope that this book makes your goalsseem more reachable than ever. Special thanks goes to Carolyn Mutz for getting us together to write this book.

Publisher’s AcknowledgmentsWe’re proud of this book; please send us your comments through our Dummies online registrationform located at www.dummies.com/register/.Some of the people who helped bring this book to market include the following:Acquisitions, Editorial, andMedia DevelopmentDevelopment Editor: Nancy StevensonProject Editors: Jennifer Connolly,Kristin DeMintAcquisitions Editor: Tracy BoggierCopy Editors: Jennifer Connolly,Carrie A. BurchfieldComposition ServicesProject Coordinator: Maridee EnnisLayout and Graphics: Carl Byers,Joyce Haughey, Barry Offringa, Erin ZeltnerProofreaders: Leeann Harney,Stephanie D. Jumper, Jessica Kramer,TECHBOOKS Production ServicesIndexer: TECHBOOKS Production ServicesTechnical Editor: Matt EldridgeEditorial Manager: Michelle HackerEditorial Supervisor: Carmen KrikorianEditorial Assistant: Hanna ScottCover Photos: Wiley Publishing, Inc.Cartoons: Rich Tennant(www.the5thwave.com)Publishing and Editorial for Consumer DummiesDiane Graves Steele, Vice President and Publisher, Consumer DummiesJoyce Pepple, Acquisitions Director, Consumer DummiesKristin A. Cocks, Product Development Director, Consumer DummiesMichael Spring, Vice President and Publisher, TravelKelly Regan, Editorial Director, TravelPublishing for Technology DummiesAndy Cummings, Vice President and Publisher, Dummies Technology/General UserComposition ServicesGerry Fahey, Vice President of Production ServicesDebbie Stailey, Director of Composition Services

Contents at a GlanceIntroduction .1Part I: Putting Your Fundraising Ducks in a Row .7Chapter 1: Identifying the Fruits of Your Fundraising Passion .9Chapter 2: Finding the Right Perspective: Fundraising Issues and Ethics .21Chapter 3: Making Your Case Statement: Your Agency’s Reason to Be .33Chapter 4: Organizing Your Team: Board Members and Volunteers .55Chapter 5: Creating a Winning Fundraising Plan .75Part II: Finding — and Winning Over — Donors .95Chapter 6: Getting the Lowdown on Your Donors .97Chapter 7: Meeting Your Donor .115Chapter 8: Cultivating Major Givers .125Chapter 9: Asking for a Major Gift .137Part III: Assembling Your Fundraising Toolkit .153Chapter 10: Printing for Profits: Direct Mail, Annual Reports, and More .155Chapter 11: Writing Winning Grant Proposals .173Chapter 12: Projecting Your Image by Using the Media .197Chapter 13: Working the Phones (You Don’t Have to Be Hated) .213Chapter 14: Charging Ahead with Tchotchkes: Giveaways, Gifts, and Sales .229Part IV: Leveraging the Internet .239Chapter 15: Creating and Using a Web Site .241Chapter 16: Getting the Most from E-mail and E-Newsletters .251Chapter 17: Extending Your Branding Online .263Part V: On the (Fundraising) Campaign Trail .273Chapter 18: Organizing, Implementing, and Celebrating Your Annual Fund .275Chapter 19: Planning a Special Event .287Chapter 20: Building Buildings, Nonbuildings, and Futures:The Capital Campaign .297Chapter 21: Securing Major Gifts, Planned Gifts, and the Challenge Grant .307Chapter 22: Approaching the Corporate Giver .323Chapter 23: Building and Growing Endowments .331

Part VI: The Part of Tens .339Chapter 24: Ten Predictions about Fundraising .341Chapter 25: Ten Great Opening Lines .347Index .351