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Philanthropy. “a generosity of spirit that can be practiced anywhere and everywhere, at any time, it can accomplish any charitable purpose, and often will be accompanied by public recognition” James M. Greenfield Fundraising Fundamentals. Definitions. Philanthropy

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  1. Philanthropy • “a generosity of spirit that can be practiced anywhere and everywhere, at any time, it can accomplish any charitable purpose, and often will be accompanied by public recognition” James M. Greenfield Fundraising Fundamentals Paul McKay CAE

  2. Definitions • Philanthropy From Greek “Philos” means “Loving” or “Caring for” and “Anthropos” meaning “other people” • Original Expression From the myth “Prometheus ” in which a basic and enabling gift is shared with humanity. Paul McKay CAE

  3. From myth to reason • Prometheus, a ‘titan’ who believed in the essential good of people (mortals) • Zeus, greatest of the “gods”, kept people ‘in the dark’, and without fire • Stealing “fire” from the gods, Prometheus gives people not only a fundamental technology, but also, the gift of optimism, or ‘hope’. Paul McKay CAE

  4. Key elements of the myth • Means: A resource which enables, supports and sustains • Motive: A perception of need and a compassion to help and equip others • Opportunity: A chance to take advantage of important factors presenting themselves at the right time and in the appropriate situation. Paul McKay CAE

  5. Concepts • Altruism • Term coined by Auguste Comte • Contrasted with “egoism” or “selfishness” • Pure empathy: desire to help others regardless of self • Social exchange: calculated assessment of benefits and costs of helping others Paul McKay CAE

  6. Philanthropy: dynamics of ideas • The ‘Dark Ages’ • The Renaissance • The Industrial Age • The Modern - Post Modern World Paul McKay CAE

  7. Generosity • “Generosity is essential to human life. It expresses an inner commitment that guides how we understand and value others, as well as ourselves… • “It Leads to relationships that reflect and engage us in commitments beyond ourselves.” Robert E. Fogal Paul McKay CAE

  8. Why Generosity? • ..“to live generously is to behave in ways that exceed what is required, customary, or expected in light of one’s environment and circumstances” • Robert E. Fogal expands on Martin’s definition of ‘giving generously’ Paul McKay CAE

  9. What is a Charitable Act? • “A social exchange that occurs each time a gift is made.” James M. Greenfield Fundraising Fundamentals Paul McKay CAE

  10. Preparation builds confidence • “How we prepare our volunteers and how we prepare our organizations to raise the money, and to receive, and to steward the gifts – is critically important to instilling the confidence we want our fundraising teams to have. Andrea McManus, CFRE Paul McKay CAE

  11. Fundraising • Nonprofit organization fundraising remains an immense, diversified, sophisticated and ‘bullish’ business. Although certainly not recession-proof, it’s an enterprise that continues to grow…despite economic swings or the Dow Jones average.” L. Peter Edles Fundraising: Hands-On Tactics for Nonprofits Paul McKay CAE

  12. Canada Survey of Giving • 84% of the population, aged 15 +, made a donation to a charitable or not-for-profit organization • 47%, volunteered their time • Average donation was $446 per donor • Those who gave the most tended to be older, have higher household income, formal education, and attend meetings or services regularly. Paul McKay CAE

  13. Charitable Sector in Canada • Major source of jobs and stimulus • 85,000 registered charities • 1.2 million paid staff • 6.5 million volunteers • $190 billion in annual revenue Andrea McManus, Chair, AFP May 2012, Submission - Presentation Paul McKay CAE

  14. The Case • The combination of reasons advanced by an institution or agency in justifying its appeals for support, with emphasis on its past, present and potential services. AFP CFRE Review Glossary of Terms Paul McKay CAE

  15. Know the Customer • “The purpose of a business is to create and keep a customer” • “The aim of marketing is to know and understand the customer so well the product sells itself” • “Unless commitment is made, there are only promises and hopes, but no plans” Peter Drucker Paul McKay CAE

  16. Know the Prospect • “The more personal and sincere you are with people you are cultivating, the quicker you will be able to make the ask.” Laura Fredericks The A$K: How to Ask Anyone for Any Amount for Any Purpose Paul McKay CAE

  17. Giving • Nearly always implies a connection to the organization • Satisfies one or more personal needs • May provide some type of return in what the organization will do for them or for someone close to them • Effective fundraisers seek to discover what is important to a donor Paul McKay CAE

  18. In your opinion • Why do people give? • Why do people give to your organization, specifically? Paul McKay CAE

  19. Key Fundraising Activities • Research • Marketing • Relationships • Ethics and Accountability Paul McKay CAE

  20. In your opinion • Why is research important • What research methods are available? • What research do you do in your organization? Paul McKay CAE

  21. Research supports Fundraising by: • Finding out what people want • Identifying potential donors • Providing information about them • Ensuring proper resource allocation • Supporting planning and evaluation • Rating relationship-building priorities Paul McKay CAE

  22. In your opinion • Why is marketing important? • What forms does marketing take? • How does your organization use marketing to support fundraising? Paul McKay CAE

  23. Marketing supports Fundraising by: • Communicating purpose and actions • Promoting mission and case • Encouraging participation • Developing donations • Informing about results • Advocating fundraising purposes Paul McKay CAE

  24. In your opinion • Why are relationships important? • How do relationships support fundraising? • What particular things does your organization do to create or improve relationships? Paul McKay CAE

  25. Relationships support Fundraising by • Adding prospects to donor base • Supporting other contributions • Engaging stakeholder participation • Integrating research and marketing • Enhancing insight into interests • Supporting stewardship of funds Paul McKay CAE

  26. In your opinion • Why are ethics and accountability important to fundraising? • What examples are there that demonstrate their importance? • What does your organization do to ensure ethical conduct? Paul McKay CAE

  27. Ethics support Fundraising by ensuring • Trust and confidence • Asset management and accounting • Proper data collection and use • Donor privacy rights • Reporting requirements fulfilled • Programs executed as promised • Donor loyalty Paul McKay CAE

  28. Possible Question • The first step in developing a strategy for approaching prospective donors is to: • A) research current donors • B) evaluate previous campaigns • C) use direct mail to attract donors • D) establish goals, strategies and priorities Source: Q18 Sample Questions & Answers Paul McKay CAE

  29. Answer to Question 18 • A) Research Characteristics of Donors • By researching donors, an organization develops a profile and identifies those most likely to give. Research provides insight into motivations for giving, identifies interests, and reveals characteristics that can lead to developing strategies. Paul McKay CAE

  30. Possible Question • Before beginning to write the case for support for a campaign, it is most important to: • A) Understand donor target markets • B) Create a budget for design & writing • C) Outline your organization’s objectives • D) Draft the design and layout Paul McKay CAE

  31. Answer to Question 8 • A) Understand donor target markets • Preparation logically begins with the acquisition of a better understanding of what the interests, predispositions and motivations, within these markets might be when it comes to making a gift to your cause. Paul McKay CAE

  32. Show me the Money • “Money is the language of commerce. It lubricates utilitarian transactions between people. Money is also a symbol. With it, we express many of the intangibles that define our species. The values that we express with our money may be constructive or destructive…” • Robert E. Fogel, Why Generosity? Paul McKay CAE

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