Fundraising

Personal Solicitation Fundraising

The Leadership Institute

• In 2008, the average US House campaign cost $1.1 million

OR:

– 1,100 contributions of $1,000

– Three $1000 contributions every day for one full year

– 10,000 contributions of $110

SO .... • Have a balanced approach

• Know how much you need to run your project

• Budget your fundraising for it

• How much have you budgeted for personal solicitation

How much does it take to win


• Personally raising funds is one of the two functions for which the candidate is personally most effective.

– The other: asking for votes.

• The world’s best campaign plan is worthless unless it is properly funded.

• Personally asking for funds bestows a level of credibility onto the campaign.

Why Ask People for Money?


Personally soliciting funds is not begging.

Rather, you are giving people an opportunity to invest in a shared vision.

Give people the opportunity to become politically active by writing a check.

Personal Solicitation


Personal solicitation should be part of your finance plan.

Systematically identify potential donors, answer the key questions, and personally solicit the donations.

Developing a System


• Identify potential donors.

– Personal contacts

– Donors to past campaigns

– Individuals/groups with a specific stake in your election

• Determine which voters are best approached through: direct mail, events, personal solicitation.

• Key tasks before soliciting.

– How to make the pitch? (In person, phone?)

– What should the pitch be?

– When to make the pitch?

– Who should make the pitch? (Usually the leader personally)

Developing a System


• Who should make the pitch?

– The organization’s leader is usually best suited for this.

– However, if someone else (a friend, colleague, relative) of the potential donor would have better luck, use that person.

– Use sound judgment.

• How to make the pitch?

– What kind of appeal will the potential donor most likely respond to?

• When?

– Is there a particular time when the potential donor would be most likely to respond affirmatively? (PACs, etc.)

Answering Key Questions


• In person, or by telephone?

– Phone calls allow you to solicit more potential donors in a shorter period of time.

– Staff/volunteer can personally assist in lining up calls, following up, etc.

– Donors are busy people. Respect their time.

– Some donors will not give unless personally visited.

– Use good judgment in making these decisions.

Answering Key Questions


• Where are the big donors hiding?

– Networking.

– Chamber of Commerce.

– Party Fundraisers.

– Similar Causes.

• Ask the people who are going to do the asking.

• Researching the donors.

– Lists

• If you’re a candidate know your campaign finance laws and limitations!

Putting it to Work


• Develop a good understanding of a potential donor as you determine who should make the pitch, what the pitch should be, how it should be delivered, and how much to ask for.

– Understand the potential donor’s motivations.

• Why does he/she give?

• What are the motivating issues or causes?

• How do these compare against your own?

– Understand how much the donor has given to other candidates and causes.

– Understand the potential donor’s personal history.

– Use your network of contacts to gather information, along with other research methods.

Research


1. Access.

2. Ego.

3. Belief.

4. Habit.

5. Reward.

6. Peer pressure.

7. Impact public policy.

8. Party loyalty.

9. Cover their assets.

10. They were asked.

Reasons People Contribute


1. They feel exploited.

2. The appeal is too vague.

3. The appeal is unrealistic.

4. Bad messenger.

5. Donor and candidate do not share a vision.

6. Candidate’s vision is poorly communicated.

7. The plan or organization is not considered viable.

8. No one asked.

Reasons People Don’t Contribute


– Go where the donor wants to go.

– Err on the side of a private meeting, at an office - at a restaurant.

– Networking.

– Cold calling.

– Put the donor at ease.

– Give the donor “confidential” information.

Personal Appointments


• Use for medium size contributions

– High cost fundraising events

– Private dinners with the organization’s leader

• Use a comfortable space

– Have beverages and snacks

– Appropriate timing

– Same tactics as the appointments

– Call on invitations and direct mail

The leader should always have a fundraising call list for down time utilization

Donor Phone Calls


• Break the ice. Do not begin by talking about the campaign. Show interest in the potential donor, and learning more about him/her.

• Establish a rapport.

• Talk about what the potential donor wants to talk about.

• Based on your research, establish a common ground with the potential donor. Talk about either your common vision, or common interests. How is your victory, his/her victory?

• Establish credibility by describing the landscape, and how the campaign can reach its goal.

• Convey urgency, but not desperation.

• Ask for a specific amount, followed by silence.

Making the Ask


• Ask for a specific amount:

– Ask high (It takes as much energy to ask for $1,000 as it does to ask for $100).

– Identify a certain project that the money will go towards.

– Listen to the response.

– Close the sale at the meeting.

– Don’t be shy about pressing.

Using the Details


• Remember…this is not the last time you’ll contact the donor.

• You must have a continuous relationship to make sure that donors keep giving.

• Ask the donor to find and solicit other donors (misery loves company!).

• Thank you efforts.

– Invitations to high donor events.

– Private briefings on issues or polls before they are released.

After the Ask


• How are you going to succeed?

• Where will your support come from?

• How much have you raised so far?

• What will your project cost?

• How are you going to raise that money?

• Who is helping you?

• Who’s running your operation?

• How much time do you spend on the phone?

• What are you doing that’s different than others who’ve had similar plans?

• What’s your message?

Questions to Expect


Do’s and Don’ts


• Do:

Start by placing that first call.

Relax.

Conduct your research.

Be optimistic.

Be confident, but not cocky.

Be convincing.

Ask for a specific amount.

Ask high.

Convey urgency, but not desperation.

Use silence.

Say thank you.

• Don’t:

Waste a donor’s time.

Take your allies for granted.

Broach a volatile issue.

Be argumentative.

Leave empty handed.

Spend less than half your time fundraising.

Forget to thank people.

Do’s and Don’ts


• The donor closes the deal. (Best case scenario.)

“I like what you’re saying, how much do you need from me?”

Get the check right there, or follow up ASAP.

• Uncertainty.

Prompt the exchange of more information to help the potential donor reach a decision. “What would you like to know about me or the organization that would help you make up your mind about lending your support?”

Alternatively, boost your credibility by referring to a third party who is supporting you.

• “I’ll think it over.”

This closes the discussion without an answer.

Don’t force the issue. Thank the donor, and send a follow up by mail.

Typical Donor Responses


THANK YOU!


Questions?

Fundraising

Government & Nonprofit

Transcript of Fundraising