Smart ideas from Hartsook Companies, Inc.

September 22, 2009

Which Came First: Philanthropy or Fundraising?

My clients and I volley this question back and forth each month.

Some donors are self-motivated. They support organizations in which they believe. They give to their PTA to enrich their children's education. They spring for their alma mater to ensure their name's listed in the alumni magazine.

If you're such a philanthropist, thanks. You make my job easier.

The challenge for fundraising is not that some in our society give of their own volition. It's that most in the profession are satisfied with such giving - lulling themselves into believing they were essential facilitators of the over-the-transom support that constitutes the majority of many institutions' philanthropy.

There is a better way . . . and one client has figured it out.

Client XYZ is raising $6.6 million to buy land, construct a building and expand its endowment. Its campaign has secured $5 million in gifts and pledges; $1.5 million in open asks remain on the table.

The magnitude of XYZ's campaign becomes clear when you evaluate it alongside the organization's non-campaign fundraising. Excluding campaign gifts, XYZ raises about $120,000 a year through its annual fund and special events. Not bad for a low-overhead, grassroots organization dedicated to improving the lives of adults with special needs. On the other hand, if staff and volunteer leaders had waited for that volume of gifts to reach the $6.6 million mark, their 55-year-long campaign would just be starting.

You get my point. So do XYZ's top-notch staff, whose committed and capable campaign cabinet did four specific things to blaze their 36-month trail of fundraising success:

• First, they identified those in their community with the capacity to give significantly to their campaign. Then they created and carried out tailored strategies to educate and encourage them to give more than they would otherwise.

• Next, they asked for specific gifts. For many, this is the most difficult part of fundraising. But in successful campaigns, it's essential to success.

• Third, XYZ's campaign workers developed and executed concrete follow-up strategies that maintained the control of open asks. They refused to leave blank pledge cards with donors or follow-up solicitations via voicemail or email; instead, they retained the right to follow up personally.

• Finally, they closed gifts. It's the toughest part of major gift fundraising and the reason many campaigns fail. Asking is only the first step; closing completes the cycle.

So which came first? Philanthropy or fundraising?

Though I have my opinion, we'll never know the answer. What is certain is that philanthropy expands when good fundraising occurs.

- Matthew J. Beem, CFRE, President and COO (Kansas City, Mo.)

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Watch for upcoming news about Hartsook's 2010 National Fundraising Seminar in Kansas City. Ring in the New Year with nationally-recognized speakers and learn about issues impacting the fundraising field. This is a seminar you won't want to miss! To sign up to be the first to receive a Sneak Peek Invitation, please send an e-mail Tammy Weinman at tammy@hartsookcompanies.com.

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To better accomodate international clients and prospects, Hartsook Companies' website can now be translated into 40 lanuages via the Google Translate button on our home page.

Another Smart Idea...From the Hartsook Best Practices Collection^SM

"Endowment funds-meeting one on one with families who have directly benefited and encouraged them to create a family legacy that will allow future generations to benefit from the same programs." - Gary Sim, CFRE, Reena Foundation, Thornhill, Ontario, Can.

If you are interested in Best Practices and smart ideas, see these additional resources from Hartsook Companies:

• Bob Hartsook's first book, "Closing That Gift!" is now in its fourth printing. Reviewers have said "impressive...an important hands-on guide...serious fundraisers won't just read this book, they'll use it every day." Available for $15 (plus $5 S&H) through the Hartsook store.

• "Fundraising Magic - 33.5 Strategies for Turning Board Members into Money Makers" by Robert G. Swanson (2007, ASR Philanthropic Publishing). This book shares proven strategies you can implement immediately to give Board members the confidence and tools needed to cultivate donors, solicit gifts and strengthen your organization's position in the community. To order this book, visit the Hartsook store.

• "Best Practices Coast to Coast^SM," a compilation of best practices from every state in the union.

• "Hartsook Best Practices Collection^SM," our original collection of 250 best practices and great ideas.

For a free copy of "Best Practices Coast to Coast" or the "Hartsook Best Practices Collection", please email Cathy Rutz, cathy@hartsookcompanies.com, or visit our web site. We also invite you to contribute your own best practice by emailing Annette Lough, annette@hartsookcompanies.com.

Visit the Hartsook Companies web site for:

• Educational opportunities
• Books/reference articles
• Conference/workshop speakers

Strategies for Success explores smart ideas, connecting with more than 2,000 fundraising professionals bi-weekly. We welcome your contributions or comments. Send to Strategies for Success editor Annette Lough, annette@hartsookcompanies.com. If you'd like a free subscription to Strategies for Success - or its monthly companion, eHartsook on Philanthropy - contact Cathy Rutz, cathy@hartsookcompanies.com. You also can reach her at 316.630.9992.

Our web site is located at http://www.hartsookcompanies.com.