I deliver this course is delivered at the Directory of Social Change - www.dsc.org.uk - Aims: To introduce new fundraisers to the reality of the sector and give them the basic tools to raise money through a wide range of sources. You will gain a broad overview of fundraising in practice. For: Those new to fundraising or those with little experience whether you are a full time employee, a volunteer or a trustee.

1. Effective Fundraising
Practice
Noam Kostucki

2. Human vs Genius

3. Fundraising Quiz!
How many charities are there in the UK?
A) 16,900
B) 73,000
C) 180,000
D) 647,000
How much money is raised by the charity
sector in the UK?
A) £780 million
B) £6 billion
C) £24 billion
D) £52 billion
What fundraising activity has the highest
return on investment?
A) Legacies
B) Corporate
C) Trusts & Foundations
D) Individuals

4. Fundraising Quiz!
What is the most effective strategy for
fundraising?
A) Establish priorities
B) Set up a fundraising committee
C) Diversity the range of donors
D) Identify prospective donors
How much money is £100 worth of
gift aid?
A) £105
B) £115
C) £125
D) £150
What cause do companies give to the
most?
A) Education
B) Health
C) Environment
D) Medical Research

5. Fundraising Quiz!
What are the main beneficiaries of
trusts and foundations?
A) Religion
B) Older people
C) Diseases
D) Children & young people
What cause do trusts and foundations
give to the most?
A) General charitable purpose
B) Health
C) Housing and employment
D) Arts and culture
What is the percentage of ineligible
applications to trusts?
A) 10%
B) 35%
C) 55%
D) 85%

7. Return On Investment
Committed Giving / Membership – Competitions – Corporate –
Direct Marketing Appeals - House to House – Local fundraising –
Other – Special Events – Total Voluntary Income - Trusts

8. Return On Investment

9. Challenge 1:
It cost £500 to organize a sponsored cycle
event(including staff time). As a result, £1,000 was
raised. What was the ROI in percentage terms?
Challenge 2:
Sally spend a total of 35
hours completing a
funding application
form. Her hourly rate is
£25. As a result, the
organization was
awarded a grant of
£50,000. What is the
ROI in percentage
terms?

14. Sources of Funding
Fundraising Pros & Cons Motivation
Sources

15. The Giving Pyramid
LEGACY
BIG GIFT
Regular Donor
Occasional Donors/
Subscribers
Warm Supporters
The general public

18. Case for Support

19. What is Effective Fundraising?
17

20. Effective Fundraising

21. • Heartfelt Connector
• Beneficiary Builder
• Member Motivator
• Big Bettor
• Public Provider
• Policy Innovator
• Beneficiary Broker
• Resource Recyler
• Market Maker
• Local Nationalizer

22. Why most charities fail?
Predictable
income
If you’re Need to
here, you’re track
GOOD!!! income
sources
Fixed cost
commitment
Need
good
reserve
policy PROBLEM!
!!

23. • Who gives you money?
• Why do they give?
• How do you select your
funders / donors?
• How do you who to
target?
• How do you choose your
fundraising strategy?
• What do you need to
know?

24. Effective Fundraising
for
Museums
!

25. *
:';8$"#&*/'*5$./*6#$"*0)3#./;#)/*/70.*6#$"*(055<**
Trusts & Foundations (£/millions) Individuals (£/millions)
!
Business (£/millions) 2008 total PI (£/millions)
! 51-.%#3%!6!7#8%!9:;! 51-.%#3%!9:;! 7#8%!9:;!
700
=#.>%+)1$! ?&@A! BC@D! '&@C!
600
! 500
E7F! ?D@D! &'@G! ''@G!
7+#22!%1$#$%8%1+! G?@&! &H@'! 'B@H!
400
E,#.)+#J*%!$)K)1$! ??@I! DD@D! HH@'!
300
51K%3+8%1+! &CC@C! C@C! &CC@C!
!"#$%&#'
200
!
100
L,M0$,!2%N%.!.%3OM1/%1+3!-M13)/%.%/! )1K%3+8%1+!30-,!#3!-M.OM.#+%!#.+!#
0
)1K%3+)1$!)1!+,%!#.+3Q!+,%P!N%.%!*%33!*)>%*P!+M!/%-.%#3%!+,%).!)1K%3+8%1+!+,)3
4%1(0(0$!5/2(0%22!2/667-*8267027-2+(68(09%2*:%0*!17-!*+%!#-*2!5;!-#0<(0$!#,,7-.(0$!*7!
*#3+!P%#.@!
6-(7-(*(%2=!>(*+!?!5%(0$!*+%!+($+%2*!#0.!@!5%(0$!*+%!)7>%2*A!
!
7+#22! %1$#$%8%1+Q! 3%%83! +M! J%! )1! +,%! 3,M.+! +%.8Q! +,%! #-+)K)+P! 8M3+! *)>%*P
-0+3!+,)3!P%#.!-M8O#.%/!+M!*#3+@!
B#0<!C*%:!
! B#0<! D9%-#))!E! F($+%2*!6-(7-(*;!70);!E!
4,,5-.(0$!*5!4-*2!6!7/2(0%228!*+%!*5*#)!#95/0*!51!"-(:#*%!;0:%2*9%0*!<";=!(0!,/)*/-%!+#2!>%%0!
!
GHB! ?! IJA?! IKA@!
%?@%-(%0,(0$! +%#)*+A! $-5B*+! 2(0,%! CDDEF! 7/2(0%22! (0:%2*9%0*! +#2! /0.%-$50%! :#-(5/2!
1)/,*/#*(502! *+-5/$+5/*! *+%! A%#-28! B+(,+! #-%! 120 9#0A! ,#2%2! #**-(>/*%.! *5! *+%! /0@-%.(,*#>)%!
L#-<%*(0$! (0! I! IJAM! KNAO!
0#*/-%!51!G#@(*#)!"-5H%,*2F!! 100
H*#11!%0$#$%:%0*!! K! IIAR! IMA&!
;0! IJJC! 50B#-.2! 467! (0,)/.%.! (0.(:(./#)2! #0.! *-/2*2! #0.! 15/0.#*(502! #2! K%A! 25/-,%2! 51!
P(0,)/.(0$!*-#(0(0$!#0.!.%9%)76:%0*Q! 80
@-(:#*%! (0:%2*9%0*! *5! >%! *-#,%.! 15-! *+%! ,/)*/-#)! 2%,*5-F! L+%2%! *+-%%! ,#*%$5-(%2! #-%! *+%-%15-%!
60
G+#-(*#5)%!S(9(0$! J! ?NAN!
05B!/2%.!15-!*+%!,#),/)#*(50!51!*5*#)!";!(0!*+%!2%,*5-F!L+(2!2+5B2!*+%!(0,-%#2(0$!(9@5-*#0,%!51! ??AN!
40 Incr
(0.(:(./#)! $(:(0$! #2! *+%! @-(9#-A! 25/-,%! 51! (0:%2*9%0*! 15-! #-*2! 5-$#0(2#*(5028! B+(,+! (2! (*2%)1!
C09%2*:%0*!%A$A!,7-67-#*%!#-*! @! ?MAK! KA&! Sam
-(2(0$!2/>2*#0*(#))AF! 20
Dec
0
!
T+%2%! 1($/-%2! (.%0*(1;! G7-67-#*%! H7,(#)! B%26702(5()(*;! PGHBQ! #0.! L#-<%*(0$! #2! *+%! <%;!
:7*(9#*(702!17-!5/2(0%22!(09%2*:%0*!(0!*+%!#-*2A!

26. Individual Giving
(Arts & Culture)
In 2007/08 individual giving reached a record total of £382 million in the UK. This is a staggering £236 million
increase over just eight years.
Low-level giving is up to £100 but normally between £5-£10;
Mid-level giving is up to £1,000, but normally it is below £500;
Around 90% of donations received by cultural organisations are low- and mid-level donations (most frequently low-
level);
These donations tend to happen at the point of sale when attendees decide to round up a ticket price;
Donors who give several times throughout a year tend to give a larger overall financial donation than those who
give once – the message is to get people to keep giving small amounts regularly.
Reasons around local pride and a personal connection were the most commonly cited reasons for giving to a
particular organisation;
90% of donors come from the most committed art attendees – having attended the venue/organisation three or
more times in the past two years;
75% of donors were engaged with the organisation in some manner from members/visitors, a friend, patron, on a
mailing list, volunteers through to trustees. Low-level givers tended to be involved through things like volunteering,
while mid-level donors tended to be trustees and ambassadors;
So what motivated their first ever donation? The answer is simple – being asked! Direct approaches activated 40%
of first-ever donations
Many of the donors interviewed were part of the organisationʼs Friends scheme, of them 47% said being Friend
encouraged them to give and 43% said it made no difference;

27. Main reason for attending at least one museum or gallery during the past
12 months by different frequencies of attendance (2005-06) Main factor that would encourage those who already visit
At least Less often but at 1-2 museums or galleries 1-2 times a year to go more often
(2005-06)
once a least 3-4 times a times a
month year year Overall More for
children Other
(%) (%) (%) (%) 4% 12%
To see an exhibition/display 42.9 36.5 26.3 30.8 Better public
General interest in the subject of the
30.1 28.2
Users 29.3
29.8
transport
6%
More free time
45%
museum/collection
More variety
Something to interest the children 9.2 13.9 16.7 15.2 6%
Been before and wanted to go again
Museum visitors (2004-05) 4.0
3.9 3.4 3.6 Cheaper
For an event, activity or workshop 3.2 1.2 1.3 1.4 admission
As part of a group orMale * 46%4.3 6% Exhibition of
tour 2.1 6.5 5.5 interest
Other reasons Female * 8.5 54%4.6 3.5 4.0 More
13%
information
To meet people <0.05 2.6 4.7 3.7 8%
Adult "
Reference to sightseeing/being on 70% Source: DCMS, 2006b
<0.05 2.4 4.6 3.7
holiday/a day out etc DCMS museums # 78%
Any references to
<0.05
spontaneous decision Child " 30%2.3 3.3 2.8
Source: DCMS, 2006b
Museum visitors age profile (2005)
DCMS museums # 22% Digest 2006 • Digest 2006 • Digest 2006 • 21 • Digest 2006 •
Outer ring:
Main reason for non-attendance at museums23%
Overseas and England
galleries during the past museums (2005-06)
DCMS 12 months # ! 25%
population 16-24
Source: * Ipsos MORI, 2006;
No need Other Library visits (000) 65+
6% 11% VisitBritain, 2006b; really
"
15%
2004-05 2003-04 Not
# From DCMS
2002-03 2001-02 2000-01 20%
Public libraries
Lack of ! 288,360 285,397 interested
273,993 270,775 275,643
Excludes overseas visitors 34% to 12% 11%
Academic libraries the Geffrye Museum and Royal
transport 99,739 100,734 96,551 95,762 97,124
Other reasons include: 25-34
National 7% 394
Armouries. 398 408 • it 432 too much 456
costs 16% 17% 16%
Source: Public – CIPFAc; Academic – SCONUL; National – British Library • have been in past/no need
Never to go again 14%
occurred to • I wouldn’t enjoy it
55-64 19%
me
Library visits – frequency (2005-06) 25%
7%
Percentage of adults attending at leastenough
Not one library during the past 12 months 48.3% 19%
time 16%
Frequency of visits of those attending at least one library during the past
Poor health 27% 35-44
12 months: 8%
45-54 Inner ring:
At least once per week 7.8%
Source: DCMS, 2006b at least once per month
Less often, but 16.7% museum
Less often, but at least 3-4 times a year 13.4% visitors
1-2 times a year 10.3%
Not visited in past year Source: Ipsos MORI, 2006; ONS
51.8%

28. “To avoid the hassle of paperwork”
£50K+, 60-64,
“Just for cash flow reasons” £50K+, 75-79,
“Can make it an equivalent to a larger donation”
£15K-£20K, 35-39,
45$%2"601.*-%07%,0/01)%8/$"19-%:;<=%>$1$%90>?9$3$9%,0/01)%>5.9)*%"/0*5$1%7.7*5%8@"A%
2.,?9$3$9%1"/#$A%%45.)%2$"/)%*5"*%*5$%3")*%2"601.*-%07%,0/01)%8/$"19-%C;<=%"1$%./%*5
“At that level once a year is easier, just one lump sum”
9$3$9%#.3./#%1"/#$)A%%%D/9-%"%)2"99%E$1@$/*"#$%8&;<=%07%1$)E0/,$/*)%./%*5$%)"2E9$%>
£10K-£15K, 65-69,
,0/01)F%>5.@5%@0/@+1)%>.*5%*5$%7./,./#)%07%0*5$1%@5"1.*"G9$%#.3./#%9.*$1"*+1$%*5"*%"%)
9"1#$%,0/"*.0/)%"@@0+/*)%701%"%9"1#$%E10E01*.0/%07%*5$%*0*"9%#.3$/AH%%%
“I think it seemed more practical and we thought that from the organisationʼs point of view it was better to have
that lump sum and to get all the interest from it over the years”
I"1#$%,0/"*.0/)%"1$F%07%@0+1)$F%!"#$%&'(&)*+!,)-$.)/'()01&)&21"3)'(4)1,,!/!1(&)!()&1%
Undisclosed, 75-79,
",2./.)*1"*.0/J%G+*%*5$%/0*.0/%07%)2"99%01#"/.)"*.0/)%)+@@$))7+99-%"@@$))./#%>5"*%.
5.#59-%)0+#5*%"7*$1F%E009%07%>$"9*5-%,0/01)%.)%E$15"E)%+/1$"9.)*.@A%%K/%*5$%"1*)%$@0/0
“I would forget if it was spread out; Iʼd rather just pay it. It gives you a chance to reconsider at the end of the year”
2"601.*-%07%01#"/.)"*.0/)%"1$%2.@10%"/,%)2"99?).L$,F%0E$1"*./#%"*%"%90@"9%9$3$9%*0%)$1
£10-£15K, 55-59,
1$#.0/"9%"+,.$/@$)%"/,%.*%@0+9,%G$%"1#+$,%*5"*%1$3$/+$%7102%"%>$99%1+/%)2"99%,0/"*
@0+9,%2$$*%7./"/@."9%/$$,)%./%"%E10E01*.0/"*$%-$*%$77$@*.3$%>"-A%%%
For those who preferred to contribute more often, convenience was also a theme, but also allowing for unplanned
giving/requests and perhaps as a (conscious) tactic to inflate the total amount contributed.
“Money raised from the trips goes to the gallery” £25K-£30K, 30-34,
8.295"461&7&1'4./3,"./+:'#"7"/#'0%&;$&/<='3/4'5&,>.4'
“Mainly because I was asked by [fundraiser] – [...] depending on what it is for I sometimes say yes [...] I am very
45$%)+13$-%07%,0/01)%"990>$,%701%"%201$%,$*".9$,%900M%"*%,0/"*.0/%3"9+$)%"/,%50>%
encouraged by what I see [at the theatre] so I am very happy to give”
#.3./#%2$*50,)%"/,%71$N+$/@-A%%D/$%.))+$%./%.,$/*.7-./#%./,.3.,+"9%#.3./#%E"**$1/)%
Undisclosed, 75-79,
.)%*5"*%2"/-%"1*)%01#"/.)"*.0/)%5"3$%"%E01*709.0%07%7+/,1".)./#%E10,+@*)A%%(1*%,0/01)
*510+#5%,.3$1)$%E10,+@*)%"/,%>5.9$%*5$)$%"1$%07*$/%)*1+@*+1$,%8701%$O"2E9$F%"%20/*
*5$-%@"/%"9)0%G$%)E0/*"/$0+)%01%1$)E0/).3$F%*5$%1$)+9*%07%"%E102E*%01%"/%",%50@%1$N

29. What about the crisis?

30. What about the crisis?

31. What about the crisis?

32. “Predication is very difficult,
especially about the future”
Neils Bor
When written in Chinese, the word “crisis” is composed of
two characters. One represents dange, and the other
represents opportunity.
“Maybe as time gets worse, we get better” Tanya Steele,
Director of Fundraising for Save the Children
“Problems with the Christmas appeal? So many charities
never had such a successful one!” Stephen Pidgeon,
Chairman at Tangible Response

33. Your fundraising strategy
looks like this…

34. …or like this?

35. Keep your
eyes on the
prize!
Increase exposure to:
1. Support your cause and services
2. Create new interest and opportunities
3. Reach more potential donors and volunteers
4. Reinforce your credibility and retain supporters
5. Create buzz for events and campaigns
6. Improve your visibility on search engines
Expand the reach to:
8. Create strategic partnerships
9. Identify and recruit influencers to spread your message
10. Gain competitive intelligence across diverse audiences
11. Be the sector’s leader – not a follower
12. Get your message out to many – fast and cheap

36. Learn to use the tools

37. Learn to use the tools

40. Donors Motivation

41. Effective Networking
How to meet the right people

42. When did someone help you?

43. Power of Listening

44. How do they feel?

45. How do they feel?

46. How do they feel?

47. Corporate Fundraising

48. Why do companies want to
give you money?

49. “Side Products”
• Individual giving
• Employee
fundraising
• Charity of the year
• Pro bono work
• Board of trustees
• Expertise
• In-kind donations
• Network of
contacts
• Major donors
• Trading partners

50. A world of opportunities

51. Crisis ‘Send a
Singer’
Christmas
online
fundraising
campaign hits
its £1m target
Find the full case study on:
www.sofii.org
www.givinginadigitalworld.org

52. Overview
• £1,006,000 raised
• 25% increase on 2006 total.
• 97 companies participated.
• 70% of 2006 participants took part in 2007.
• 20% of 2007 participants were new, accounting
for £108,000 of income from new business.
• Average donation was £10,371 (46% increase).
ROI
• £12.12 was raised for every £1 spent
Micro-site and digital
• 47,139 absolute unique visitors to the site.
• The site was viewed in 117 different countries.
• Video MPU achieved a click through rate of
0.56% after serving 116,283 impressions.
PR
• Opportunities to see = 13,356,486 (255%
increase).
• Advertising value equivalent = £32,639 (920%
increase).

53. Filling in the jigsaw

54. Creative Thinking

55. You have received the
following letter
“My mother died recently. She has asked me
to give £10,000 from her will to a charity
where it will make a real difference.
I am asking a small group of charities, like
yours, to give me a ring and suggest what
you could achieve with a gift like this.”
------------------------------------------------
In each group, prepare and practice:
• One of your charities
• A caller
And plan your call in response to this.
You can be as imaginative as you like.

57. Are you also confused?

58. What is social media?

59. What is social media?
A complex, organic conversation

60. What is social media?
A complex, organic conversation

62. How large is your network?

63. How many people could
you reach?
General: business, music, blogging, videos 263,000,000
Friends and family 300,000,000
Live updates: general 45,000,000
3rd most visited
Sharing videos: 6,300,000,000 videos
website in world
Free calls, video calls and audio
11,000,000
conferences
Professional social network 43,000,000
Sharing photos: 4,000,000,000 pictures 32,000,000

64. How many people could
you reach?
General: business, music, blogging, videos 263,000,000
Friends and family 300,000,000
Live updates: general 45,000,000
3rd most visited
Sharing videos: 6,300,000,000 videos
website in world
Free calls, video calls and audio
11,000,000
conferences
Professional social network 43,000,000
Sharing photos: 4,000,000,000 pictures 32,000,000

65. Why are SNS eating my
marketing budget?

66. The UK Internet in
• Online posts are only 2nd to word of mouth as a reason to buy
(Small World Labs)
• 20,000,000 Facebook users in the UK… and still growing!
(ReadWriteWeb)
• 76% of internet usage is social networking (Marketing Charts)
• 54% social networking users over 35 (Universial Maccan)
• Social networking users
– visit 9x more often your website (Small Lab World)
– spend 6.5 minutes on your website versus 38 seconds for non
social networking users (Small Lab World)
– spend 54% more (Ebay)
– remain customers for 50% longer (AT&T)

67. No, but yes but…
So, why should I listen to “the conversation”?

68. Do you recognize this painting?

69. Do you recognize this painting?
The Family of Sir William Young
talking about you on Facebook.

70. Do you recognize this painting?
The Family of Sir William Young
talking about you on Facebook.

71. Do you recognize this painting?
The Family of Sir William Young
talking about you on Facebook.

72. You don’t believe me?

73. You don’t believe me?

74. • Who talks about you?
• Who has discussions in
your field?
• Who do you want to gain
… from?
• Where do they have these
conversations?
• How can you help them
and build trust?
• How can you engage them
in your conversation?

75. Get involved in SNS

76. Get involved in SNS

77. Keeping in touch

78. Noam Kostucki
www.linkedin.com/in/noamkos
Connect on
Text
Old school...
nkostucki@dsc.org.uk
020 7391 4861