WHY INDIVIDUAL GIVING?

2009 Contributions: $303.75 Billion by Source of Contributions(all figures are rounded)Source: Giving USA Foundation/ Giving USA 2010

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227.41

14.1

38.44

23.8

Bequests$23.808%

Corporations $14.104%

Individuals$227.41 75%

Foundations$38.4413%

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Individuals$227.41

Corporations$14.10

Foundations$38.44

Bequests$23.80

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0

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Source: Giving USA Foundation

2009 Contributions: $303.75 billion by Source of Contributions ($ in billions - All figures are rounded)

Foundations$38.4413%

Individuals$227.41 75%

Corporations $14.104%

Bequests$23.808%

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12

6

12

9

29

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7

4

2

12

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Source: BGCA Local Organization Annual Reports, 2009(preliminary data as of 6-29-10)

Government: Federal Govt Income, Federal Govt Income-BGCA Pass-Through, State Government, Local and Tribal GovernmentMember Dues: includes Membership Dues onlyMember Fees: includes Program Activity Fees, Day Care Fees, Camp FeesOther: includes Other Income, Rental Income, Concessions, and Non-Government Pass-Through Grants from BGCA

Percentage

2009: Sources of Revenue for Local Clubs

Government29%

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Sources of RevenuePercentage

Bequests1

Individual Contributions12

Corporate Contributions6

Foundation & Trust Contributions12

Special Events9

Government29

Investment Income1

United Way7

Value of Contributed Services4

Member Dues2

Member Fees12

Other Income5

100

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Source: BGCA Local Organization Annual Reports, 2009(preliminary data as of 6-29-10)

Government: Federal Govt Income, Federal Govt Income-BGCA Pass-Through, State Government, Local and Tribal GovernmentMember Dues: includes Membership Dues onlyMember Fees: includes Program Activity Fees, Day Care Fees, Camp FeesOther: includes Other Income, Rental Income, Concessions, and Non-Government Pass-Through Grants from BGCA

Percentage

2009: Sources of Revenue for Local Clubs

Government29%

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COST OF FUNDRAISING

According to Fund-Raising: Evaluating and Managing the Fund Development Process (1999)

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Tactic$ GoalAmount RaisedBudgetActual Costs# of VolunteersVol/participant Evaluation# of Donors# of New Donors# of Repeat DonorsLasped DonorsOther Factors

Steak-n-Steak Dinner

Annual Campaign

Car Raffle

TOTAL ALL$150,000$167,000

ANALYSIS WORKSHEET

Year 1Year 2Year 3

Dollars Raised

Number of Donors

Average Gift=Dollars raised divided by number of donors

Number of New Donors

Number of Lasped Donors

Top Gift

Top Gift as % of Total

Total of Top 10 Gifts

Top 10 as % of Total

# of Face-to-face solicitations

Total Costs

Costs as % of funds raised=total costs divided by Dollars raised.'

WORKSHEET

METHODNATIONAL COST

Capital Campaigns/Major Gifts5-10% of dollars raised

Grant Writing20% of dollars raised

Direct Mail RENEWAL20% of dollars raised

Planned Giving25% of dollars raised

Special Events/Raffles50% of dollars raised

Direct Mail Acquisition100% - 125% of dollars raised

National Average of Total Program20% of dollars raised

Average costs of fund raising, according to Fund-Raising: Evaluating and Managing the Fund Development Process (1999)

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SOLICITATION STAIRCASEFace to FacePhoneHandwritten LetterTyped LetterE-MailMass-produced LetterVideoNewsletterNews ItemAdvertisement$Small GroupE-Mail

WHAT MATTERS TO DONORS

20% said performance mattered the most, 15% said image mattered the most, 65% said Exposure, Interaction, Face Time mattered the most

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0.15

0.65

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performance0.2

image0.15

interaction0.65

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RELATIONSHIPS% I can no longer afford to donate54 I feel other causes are more deserving36.2 Death/Relocation16.0 No Memory of ever supporting18.4 Did not acknowledge my support13.2 Did not inform me how my money was used 8.1Survey of 4000 lapsed donors in USA 2000/2001

Survey of 4000 lapsed donors in USA 2000/2001No longer needed my support5.6Quality of support by X was poor5.1Was asked for inappropriate sum4.3Communication by X was inappropriate3.8Did not take account of my wishes2.6Staff were not helpful2.1continued

WHY PEOPLE GIVEResearch covering the last 20 years suggests the number one reason to give cited by donors who give:

I believe in your mission Source: Chronicle of Philanthropy

OTHER REASONS PEOPLE GIVE Care about their community Fiscal stability of the organization Trust and like the Leadership Respect for and/or experience with organization Engaged with the organizations work Asked in the right way by the right person

PHILOSOPHY

Old to New Giving not Asking

Donor Old to Investor

Outsider to Insider

BIG GIFTS

$5 million Kimmel Center for the Performing Arts in Philadelphia Sidney Kimmel.$1 million to Old Dartmouth Historical Society from Anonymous $2.5 million to help build a new full-service YMCA at Fort Mill's Baxter Village subdivision in North Carolina Anonymous

$15 million to Mercy Foundation from Alex G. Spanos$1 million to Maddies Fund from David and Cheryl Duffield$4.75 million to CARE and Save$1 million to University of Kentucky from an employee, Richard Barbella.

continued

$1.7 million to the University of Georgia's College of Education Eileen Russell, a former professor at the school.$6.2 million to the CDC Foundation from Zell Kravinsky.$5.1 million gift in trust to East Carolina University Charles and Hazel Freeze.

continued

$3 million to High Point University from La-Z-Boy Chairman Patrick Norton.

the Children Bill and Melinda Gates continued

THE DONOR PYRAMIDPlanned GiftsCapital GiftsSpecial GiftsRenewed DonorNewly Acquired DonorThe UniverseAmount of GiftPersonal Contact & Involvement

FUTURE GIFTS 79% of bequest donors have some affiliation with the charitable beneficiary. Membership and being a past recipient of charitys service are the most frequently cited types of affiliation (31% and 24% respectively). The average length of affiliation with the charitable beneficiary is 23 years.

Source: National Council on Planned Giving

WHAT YOU CAN EXPECT!

FEEDBACK FROM PILOTS SITES

It Just Takes One is already showing the potential to be one of best things to happen in terms of moving us toward a best practices annual campaign, energizing our board leadership, thinking long termand following advice of BGCA & outside gurus to do what we know we should have been doing for a long time anyway, especially in driving home "the most effective andefficient fundraising is one volunteer face to face with a peer!"Club CPO

QUESTIONS

Besides knowing where our best opportunities to raise money lie, we also have facts that point to how best to spend limited resources when raising money. In determining your ROI (return on investment) you need to factor in the equation the above statistics.

Take a look at the methods of fundraising on the chart above. Ask the audience how money is raised in a Capital Campaign or when soliciting Major (large) Gifts? The answer is, of course, with a volunteer led face-to-face personal ask - INDIVIDUAL GIVING. Individual giving has been proven to be the most cost effective way to raise money and is the major component of BGCAs It Just Takes One.

FYI:As it relates to the statistics, staff time is usually NOT included in these numbers unless staff is hired to ONLY do these tasks.

Not only do we know that more money comes from individuals than any other source, we also know the most cost efficient way to raise money is based on a personally led face to face solicitation. Now lets look at the most effective way to raise money.

If you doubt that a face to face solicitation is the most effective way to raise dollars, think about the largest philanthropic gift you gave. How was it solicited? If not through a face to face solicitation, how much more would you have given if a person took the time from their busy schedule to make an appointment with you to talk about why you were being asked for a gift, shared with you the impact your gift would make and then asked you to consider a specific amount. Oh, and add to that scenario the person was not a paid professional but a volunteer you respected that also gave a gift. Do you think your gift may have been larger and you would have felt better in giving a gift than opposed to solicitation through an impersonal letter or phone call?

Also consider these statistics from a survey of national non-profits: 2% of mail solicitations result in a YES,25% of phone solicitations get a YES, 75% of face-to-face solicitations result in a YES.

You may have heard the phase Fundraising is all about Relationships. Yet much of the time we forget about what the donor wants and needs. Being mission driven in providing services to children is our mission, yet we cannot forget our donors. Take a look at this statistic. If we are looking to build long term relationships with our donors visiting with them, sharing our results with them and listening to them is critical for their needs and the potential of future gifts.

So why are relationships important. If we want donors to give larger gifts we know that it only happens over time through the building of a relationship and trust with your Club.

From a pure business perspective consider this - It costs five times as much to do business with a new customer in the for profit world recent studies say non profits are very similar.

These recent statistics underscore the importance of all of our resource development activities.

Based on the statistics above if we cannot:Keep our donors informed and connected to our Club during tough financial times when their circumstances do change they will not give again.Show a compelling reason to give they will not give againShow the need for continued and future support (planned gifts) they will not give againMake a person feel the impact of their gift (no memory of ever supporting) - they will not give againThank a person correctly they will not give againProvide impact and results they will not give again

Make a strong case for support i.e. why a person should give to our Clubs - they will not give again.Provide good stewardship they will not give againTake the time to make an educated solicitation (classify our donors) they will not give againProvide meaningful communication on a regular basis they will not give againListen and take care of our donors wishes they will not give againTrain all of our staff to support our resource development efforts they will not give again

You may think the reason a person gives a philanthropic gift is for a tax deduction or even guilt. Yet the number one reason a person gives is because of your mission. The best way to convey with passion, what you do and why you do it is in a face to face visit to an individual.

The rest of the survey points to how important it is to have a well run organization led by respected leadership who encourage people to get involved and have strong relationships with prospects and donors.

For most people raising money is not a fun thing to do but rather uncomfortable. Have you ever heard someone say I will do anything you want me to do but just dont ask me to ask for money! Before you are asked the next time to make a solicitation consider the following:

A person who is successful at raising funds understands people who give a philanthropic gift choose to do so. By Old to New we mean a shift of thinking - i.e As a solicitor or person making the ask you are not Robin Hood taking from the rich to give to the poor but allowing people who have chosen your organization the opportunity to do something they want to do and makes them feel good such as provide a safe place for a child to go everyday after school.

It is time to stop begging people for money or twisting someones arm this type of fundraising may work once or twice but it will not be on going and will be a token/ small gift. Strong arming someone to give certainly doesnt feel good for the donor and really feels bad for the person making the ask why would anyone want to ask for a gift? Consider a new way to look at raising funds you are Giving donors the opportunity to help achieve their desires as well as support your mission.

Ultimately you want your donors to think of themselves as investors in your mission. They will provide you with resources if you invest them wisely and then let them know how their support really made a difference. Annual Campaigns allow you the opportunity to build relationships with individuals that will make them feel like insiders in your organization, feeling good about what they and you are doing for children.

So how important is getting people involved or engaged with your organization. Do you notice anything significant about the people who made these gifts? (Show this and next 3 slides) Few if any of them are well-known individuals. In fact, other than Bill Gates and Alex Spanos (owner of the San Diego Chargers) most of these people are not what we would call house-hold names.

Does this tell you anything? One thing it suggests is that it is not just celebrities and CEOs who want to make a difference in this world. Do you notice anything about the gifts made to University of Kentucky and the University of Georgia?

Thats right, former employees made both of these gifts. This is an important point to keep in mind because it shows the importance of building relationships and involvement to really big gifts. Sometimes ordinary people make extraordinary gifts to organizations they have been very involved with and see as a major priority in their lives. So, keep in mind that big dreams can inspire big acts on the part of ordinary people who love your mission and have had your Club as a part of their lives. And, often times these people are right in front of you!

And yes building relationships with people does take commitment from the board and staff at your Club. But over time the relationships you build with individuals will result in larger and more significant gifts such as planned gifts that will support the future of your organization. To our knowledge there are not too many corporations that make planned gifts!

So why is an annual campaign so important? The annual campaign allows you to get your message, successes, challenges and opportunities in front of donors every year, you build their commitment to you and what you are doing. A fundamental goal of an annual campaign is to get people to start giving and then build the relationship to increase their giving over time.

Every organization is looking for that mega gift that seemingly will fall from the sky! This study supports your efforts in spending the majority of your time with individuals who have the potential to make a significant gift to your Club.

Keep in mind that most planned gifts, 80-85 %, come from bequests and most bequests come from donors who have given average gifts of $50-$100 for many years

Over time your best return on investment will be through your individual giving program. An Annual Campaign such as BGCAs It Just Takes One will:Increase board member and solicitor effectiveness,Identify major and planned giving prospects,Strengthen your entire Resource Development Plan. And most importantly allow you to serve more children.

Early feedback from one of our pilot programs.