Fundraising 101 Fundraising Class Agenda Part I: Introductions Part - - PowerPoint PPT Presentation

Fundraising 101

Fundraising Class Agenda

Part I: Introductions Part II: Traditional Fundraising Practices Part III: Crowdfunding Basics Part IV: Grantseeking - 360 degree view Part V: Q&A

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Why Fundraise?

1) Financing your creative practice starts with earned income

Ex: money earned for purchase of art, tickets, membership, classes or workshops, etc

2) Fundraising is used to cover costs that you would otherwise not have access to from earned income or personal finances

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Arts Money

• Half of all dollars come from

earned revenue

• Organizations and artists who can figure out

a way to sell goods (e.g., a painting) & services (e.g., teaching) present a stronger case for support when asking for government

• r foundation money.

Fundraising - Who gives $?

1) Individual Giving

• -> Fundraising Campaigns

2) Foundation Giving 3) Corporate Giving

• -> Grant Writing

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Individual Giving

• Through Earned Revenue

–Best case: this is your primary source –Set aside for investments: improves your position for grants

• Through Contributed Income

–Appeal Letters –Begin with non-monetary contributions –Events come with caveats

Individual Giving

• Best Practices: Contributed revenue from

individuals come second to earned revenue

• Economics and altruism

–People with substantial assets & income are advised to give –People give to people they trust & believe in, want to make the world a better place.

Individual Giving

• Find them!

–Start with your inner circle and work out –The creative economy is a social economy –Get people involved with your art –Pursue networking opportunities –Get contact info, keep people informed

Individual Giving Circle of Influence Exercise

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Take 7 minutes: List 25 people that you know

• Friends, family, associates, co-workers

Next, circle everyone who would identify you as an artist. Finally, circle everyone who knows about your current project. The most important thing for these 25 people (and hopefully more) will be to support

• YOU. Get the people you know involved in your work. Let them know how they can

support your current project(s).

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Crowdfunding

What do the Statue of Liberty & Crowdfunding have in common?

Crowdfunding Basics

• 30 - 90 day campaigns --> creating a sense of urgency is key!
• Social media is your friend, but not the only way of reaching your patron base
• Videos lead to more successful campaigns
• Be specific about how the $ will be spent
• Set realistic fundraising goals
• Outside of FS - be careful about giving out “rewards” or “swag” - can cost you more

than you get in –FS projects have to deduct the monetary value of any rewards for giving; ex. a donor who gives $100 and gets a t-shirt, can only deduct $100 - the cost of the t- shirt

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• It takes 12 “touches” on average before

people donate – don’t be afraid remember to remind people!

• Have multiple ways of “touching”

people – diversify and conquer

• Have a strong value proposition

– why should people give? why will it matter to them?

• Tell a story!

–use your creativity (videos, images, a narrative...)

• Say “Thank You!”

–Current donors could become future sponsors & champions

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Crowdfunding Basics

Crowdfunding Sites: Kickstarter

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• No charities or causes can be

funded, only creative projects

• All or Nothing: Campaigns that

do not meet their stated goals DO NOT GET ANY FUNDS (but also don’t get charged anything)

• Fees: 5% to Kickstarter, 3-5%

for credit card processing (which means, you receive 90- 92% of the funds you raise)

• 60 day maximum campaign
• duration. Average campaign -

30 Days

Crowdfunding Sites:

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• Funds more than just projects, giving you more

flexibility, and more global

• 2 types of campaigns: All or Nothing (“Fixed

Funding”) or receive what you raise, even if you don’t meet your stated goal (“Flexible funding”)

• Fees:

*Fixed Funding: 4% to Indiegogo + 3% for credit card processing (IF YOU MAKE IT), or Nothing if you don’t *Flexible Funding: 9% to Indiegogo of what you raise (shy of your stated goal) or 4% of what you raise (if you make your goal), + 3% for credit card processing

• 60 day maximum campaign duration. Average

campaign - 47 days

Crowdfunding Sites: ArtsForce

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Asking vs Giving

(3 min) In Pairs, answer the following questions:

– Talking about money makes me feel... – Asking for money makes me feel... – Giving money makes me feel...

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Grant Writing

• Start early
• Ask questions
• -> be clear about what you are asking
• -> ask for funders’ advice on how to best

reach your goals

• Be realistic (timeline & budget)
• PAY YOURSELF
• Have a clear definition of the SCOPE of

the project

• -> location, start & end date, market

plan, defined target, partners in place

• demonstrate a history of success

* Have a clear vision of what you want to accomplish over all *

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Do’s

• Don’t ask questions that you can

easily find out yourself

• -> i.e. KNOW THE DEADLINE,

BASIC GUIDELINES! - review the information on the website and/or the application

• Don’t think that a smaller budget or

smaller amount of time looks better

• Don’t list partnerships that you

haven’t previously had conversations with about your project

• NO BASIC MATH ERRORS
• Have a project that needs a lot of

“permissions;” i.e. things that could lengthen/protract the project

• Take a “no” to mean you’ve had a

bad conversation, or that it means “never” Don’ts

Grant Writing

• WHO?

–Understand your Audience -- do the research

• who do they fund, where, why? Do you fit? Stay up

to date, as Foundations can change their funding priorities

• The saying goes, “If you’ve met one funder, you’ve

met... one funder”

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LOIs

• Letters of Inquiry or Letters of Intent
• Usually the first stage prior to submitting a

grant proposal

• not more than 2 pages long
• cover letter

– tell them the reason you’re writing the letter – with this grant, I will x,y,z – briefly explain experience, bio – who will benefit – end with thanks

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LOI’s serve multiple purposes

• working paper to help research and identify

appropriate grantmakers

• talking paper to help engage your staff, board

and other possible partners and collaborators

• letter of inquiry to potential grantmakers
• full proposal to grantmakers that only require

a minimal application

Developing an LOI

• challenges you to demonstrate your

commitment to pursuing the idea

• provides the opportunity for you to organize

your thoughts on paper

• identifies the information, commitments, and

additional research necessary to create a winning proposal

Institutional Giving

• Very competitive, decreases year-to-year
• Corporate Marketing
• Corporate Giving
• Private Foundations
• Government Agencies

Corporate Giving

• Look at Charitable giving AND marketing

departments

• Corporations are looking for ways to increase

their brand recognition for marketing (they want customers)

• ex. If you have a K-12 education event,

perhaps not a beer sponsor; look to a sponsor that has the same focus

• Doing your research - start sending out LOI
• think about asking for in-kind donations

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Charitable Giving to the Arts

• Why is it considered charitable?

“Exempt Purposes” :: IRC 501(c)(3)

The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed,

• r the underprivileged; advancement of religion;

advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.

Arts & Culture 11% Education 24% Environment & Animals 7% Health 22% Human Services 15% World Peace 3% Public Affairs 12% Science & Tech 3% Social Sciences 1% Religion 2%

Distribution of Foundation Grants

Source: Foundation Center (2010)

Blue Ocean Strategy: Applied to Grant Writing

Would your work fit with sectors outside of “arts and culture?”

– (Science) National Science Foundation --> Antarctic Artists & Writer’s Program:http://www.huffingtonpost.com/john-m- eger/art-based-learning-gets-n_b_1867277.html –(Health) Grants to artists working in nursing homes: https://www.nh.gov/nharts/grants/partners/artsinhealt hcare.htm –(Transportation) Amtrak Writer Residency: http://www.cnbc.com/id/101510471

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What Next? Site Visit

• Have the best examples of your work on display
• Have 3 strong/recent accomplishments to talk about
• Clearly articulate your vision & what you want to

accomplish with the funds

• Stay on message; don’t ramble
• Take care that the way you dress/present yourself

matches the impression you want to give

• If possible, know your site visitor --> prepare questions

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What Next? The Elevator Pitch

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Resources

• Foundation Center
• Georgia Center for Non Profits
• Idea Capital
• OCA
• Fulton County Arts & Culture Contracts for

Services -- *will* take FS projects from Fulton Co nonprofits (i.e. C4!)

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Q & A

Other questions? Contact: actionteam@c4atlanta.org