Reading Praise for Nonprofit Fundraising 101 “Good stuff! A great, incredibly helpful tool for any cause looking to raise money, online or off.” —Steve

Reading Praise for Nonprofit Fundraising 101

“Good stuff! A great, incredibly helpful tool for any cause looking to raise
money, online or off.”

—Steve

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Praise for Nonprofit Fundraising 101

“Good stuff! A great, incredibly helpful tool for any cause looking to raise
money, online or off.”

—Steve Wozniak, co-founder, Apple

“It’s not often you find such a distinctive twist on the world of fundraising.
Professionals—and lead volunteers—will find this to be a practical, global,
source of reference.”

—Andrew Watt, CEO, Association of Fundraising Professionals (AFP)

“This must-have book provides a comprehensive breakdown of the strategies
and tactics necessary to raise the financial resources essential to bring about the
changes we seek.”

—Jody Williams, Nobel Peace Prize Laureate (1997); chair, Nobel
Women’s Initiative

“Nonprofits and charities around the world struggle to secure the support
needed to maximize impact, but that just got a bit easier thanks to the very
practical lessons in Nonprofit Fundraising 101.”

—Dan Kammen, professor of energy, University of California,
Berkeley; contributing lead author for the Intergovernmental Panel on
Climate Change, which shared the 2007 Nobel Peace Prize Laureate

“Nonprofit fundraising is really, really hard, and almost every nonprofit can
use a lot of help with it. This book makes it easier by getting together a lot of
useful, effective how-to information.”

—Craig Newmark, founder, craigslist and craigconnects

“This book is a gift to nonprofit leaders and fundraisers around the world!”

—Carolyn Miles, President and CEO, Save the Children USA

“Billions of dollars of support flow to nonprofits around the world every year, and
this book will help ensure your cause secures the resources it needs to thrive.”

—Bill Strathmann, CEO, Network for Good

“Nonprofits are fueled by two things: passion and money. Nonprofit Fundraising
101 helps show how the two come together and offers a quick intro for the
beginner, or a deep dive for the experienced fundraiser.”

—Jacob Harold, president and CEO, GuideStar USA

“By providing a step-by-step framework for fundraising success across all
disciplines, this book makes a much-needed contribution to those dedicating
their lives to social change.”

—Charles Best, founder, DonorsChoose.org

“Whether you are a volunteer, board member, or executive director, Nonprofit
Fundraising 101 is a complete guide to the do’s and don’ts of effective
fundraising. I don’t just recommend it—I’m using it.”

—Greg Baldwin, president, VolunteerMatch.org

“This is an impressive collection of experts and practitioners, all with ideas
and strategies proven by real experience. I’m thrilled to see this compendium
of resources available to the nonprofit sector and know every fundraiser and
executive director will soon have it on his or her desk!”

—Amy Sample Ward, CEO, NTEN

“When nonprofits consider launching social enterprises to supplement charitable
income with earned revenue, Nonprofit Fundraising 101 provides an expert overview
of the key factors for leaders and boards to think through at the outset.”

—Jim Schorr, CEO, Social Enterprise Alliance

“Nonprofit Fundraising 101 is a wonderful new tool as to ignite your
Changemaker™ skills into action!”

—Nancy Welsh, executive director and CEO, Ashoka’s Youth Venture

“Social entrepreneurs at all levels of experience can benefit from this
thorough text, which unlocks the secrets to earning more income and raising
more capital for your cause.”

—Cheryl Dorsey, president, Echoing Green

“If you want to be a force for good in the world, fundraising is essential to
furthering your cause. Nonprofit Fundraising 101 is an extraordinary resource,
full of practical advice and wisdom gleaned from numerous sector experts. It
has everything you need to succeed, all in one place.”

—Heather McLeod Grant, co-author, Forces for Good

“Beyond covering the traditional fundraising basics, Nonprofit Fundraising
101 does a great job clearly breaking down the secrets to success for groups
interested moving into the digital age.”

—Wendy Harman, director, Information Management and
Situational Awareness, Red Cross of America

“This book provides nonprofits and social entrepreneurs around the world with
a new, powerful tool.”

—Will Kennedy, senior programme officer, United Nations Office for
Partnerships

“An absolute must-read for anyone who is any way involved in fundraising.”

—Peter Brinckerhoff, author, Smart Stewardship for Nonprofits:
Making the Right Decision in Good Times and Bad

“It’s not easy changing the world, but this book gives nonprofits and fundraisers
a huge edge in the quest for impact.”

—Aaron Hurst, founder, Taproot Foundation; author, The Purpose
Economy: How Your Desire for Impact, Personal Growth and
Community Is Changing the World

“If you’re looking to build the fundraising capacity of your organization, this
book is a great starting point and offers a single point of entry for success.”

—Jeanne Bell, CEO, CompassPoint Nonprofit Services

“This book provides a helpful set of easy to understand and implement
fundraising tips and tools. It is the perfect follow-up to Nonprofit Management
101.”

—Emmett D. Carson, CEO, Silicon Valley Community Foundation

“This book holds the key to catapult your mission forward. After working with
social entrepreneurs in more than 100 countries, rarely have I come across a
resource so useful and robust.”

—Ernesto Sirolli, founder, Sirolli Institute; TED Speakers

“Heyman offers a comprehensive approach to fundraising that is practical,
helpful, and relevant to current issues. With many helpful tips, excellent
examples, and relevant case studies, any reader will find this to be a valuable
fundraising resource.”

—Nathan Medina, GPC, VP of the Board of Directors, Grant
Professionals Association

N o N p r o f i t
f u N d r a i s i N g
1 0 1

N o N p r o f i t
f u N d r a i s i N g
1 0 1
a practical guide with easy to
implemeNt ideas & tips from
iNdustry experts

d a r i a N r o d r i g u e z h e y m a N
w i t h l a i l a B r e N N e r

Cover design: Wiley

This book is printed on acid-free paper.

Copyright © 2016 by Darian Rodriguez Heyman. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey
Published simultaneously in Canada

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Library of Congress Cataloging-in-Publication Data:
Heyman, Darian Rodriguez
Nonprofit Fundraising 101 / Darian Rodriguez Heyman.
pages cm
Includes bibliographical references and index.
ISBN 978-1-119-10046-1 (paperback); ISBN
978-1-119-10050-8 (pdf ); ISBN 978-1-119-10056-0 (epub)
1. Nonprofit organizations. 2. Fund raising. I. Title. II. Title: Nonprofit fundraising one
hundred one. III. Title: Nonprofit fundraising one hundred and one.
HD2769.15.H49 2016
658.15’224—dc23

978-1-119-10050-8 (ePDF) 978-1-119-10056-0 (ePub)

2015036883

ISBN: 978-1-119-10046-1 (pbk)

Printed in the United States of America

10 9 8 7 6 5 4 3 2 1

Darian’s Dedication

I dedicate this book to my beloved
grandmother, Martha Heyman.
I love you, and I thank you for a

lifetime of service to our family and
to the community. You taught us
all the value of family, the love of

travel, and the joy of serving others.

Laila’s Dedication

To my mother, Lori Steele, for teaching me to believe in myself, and that I
could do anything I put my mind to. I love you.

xi

Contents

About the Book xvii

Acknowledgments xxv

Foreword: Discovering What It Means to Be a Fundraiser xxvii
Lynne Twist, author of The Soul of Money: Reclaiming the
Wealth of Our Inner Resources

Part 1: Planning for Success and Preparing Your team 1

Chapter 1
Creating a Fundraising Plan 3
Interviewee: Andrea McManus, president of The Development Group
Insets: Dispelling the Overhead Myth; Sample Fundraising Plan

Chapter 2
Hiring and Training Development Staff 13
Interviewee: Missy Sherburne, cheif partnerships officer at
DonorsChoose.org
Inset: Get Your Executive Director to Love Fundraising with
Brian Gougherty, director of major gifts at Worldreader

Chapter 3
Engaging Your Board 25
Interviewee: Lisa Hoffman, fundraising and board development
consultant

Chapter 4
Volunteer Fundraising 37
Interviewee: Simon Tam, director of marketing at Oregon
Environmental Council
Case Study: APANO

x i i C o n t e n t S

Part 2: Building Your toolkit and tracking Progress 45

Chapter 5
Prospecting and Donor Research 47
Interviewee: Helen Brown, co-author of Prospect Research for
Fundraisers: The Essential Handbook and president of the
Helen Brown Group

Chapter 6
Donor Databases and CRM 57
Interviewees: Suzanne DiBianca, president and co-founder of
Salesforce.com Foundation, and Peggy Duvette, director
of social impact at NetSuite

Chapter 7
Measuring Impact: Data, Stories, and Organizational
Dashboards 65
Interviewee: Stever MacLaughlin, director of analytics at Blackbaud
Inset: Outputs Versus Outcomes
Case Study: charity: water with Kaitlyn Jankowski, supporter
experience manager at charity: water

Part 3: Individual Donors 77

Chapter 8
Grassroots Fundraising: Building Your Donor Pyramid 79
Interviewee: Kim Klein, author of Fundraising for Social Change
and principal of Klein & Roth Consulting
Inset: Don’t Be Afraid to Dream Big

Chapter 9
Major Donors: Building Relationships, Making the Ask,
and Stewardship 87
Interviewee: Kay Sprinkel Grace, author of Beyond Fundraising
and fundraising consultant
Inset: Tracking Major Donors in Databases

C o n t e n t s x i i i

Chapter 10
Direct Mail: The Ins and Outs 99
Interviewee: Mal Warwick, author of Revolution in the Mailbox
and founder and chairman of Mal Warwick | Donordigital

Chapter 11
Year-End, Annual Appeals, and Membership Campaigns 107
Interviewee: Farra Trompeter, vice president at Big Duck and
vice chair of the board at NTEN
Inset: Sample Year-End Campaign Calendar

Chapter 12
Event-Based Fundraising 117
Interviewees: Tracy Kosolcharoen, marketing manager at
Eventbrite, Daniel Lurie, CEO and founder of Tipping Point
Community, and Jen Pitts, managing director of communications,
events, and development at Tipping Point Community
Inset: Van Jones’ Live Ask Recipe with Van Jones, CNN
correspondent and president and co-founder of Dream Corps

Chapter 13
Runs, Walks, and Rides: Community-Based Fundraising 133
Interviewee: Jeff Shuck, founder and CEO of Plenty
Case Study: Kyra Millich, volunteer fundraiser

Chapter 14
Fundraising Across the Generations: Millennials, Baby
Boomers, and More 143
Interviewees: Alia McKee, principal of Sea Change Strategies,
and Derrick Feldmann, president and founder of Achieve
Inset: The Generations: What Fundraisers Need to Know

x i v C o n t e n t S

Part 4: online Fundraising 153

Chapter 15
Maximizing Website Donations 155
Interviewee: Caryn Stein, vice president of communications and
content at Network for Good, and editor of The Nonprofit
Marketing blog
Case Study: Mercy House, by CommitChange

Chapter 16
Fundraising with Email 165
Interviewee: Kivi Leroux Miller, author of The Nonprofit Marketing
Guide: High-Impact, Low-Cost Ways to Build Support for Your Good
Cause and president of NonprofitMarketingGuide.com
Inset: Email Cheat Sheet, by CommitChange

Chapter 17
Social Media and Crowdfunding for Your Cause 175
Interviewees: Beth Kanter, author of The Networked Nonprofit and
blogger, and John Haydon, author of Facebook Marketing for
Dummies and founder of Inbound Zombie
Inset: P.O.S.T. to Social Media
Social Media Case Study: The ALS Ice Bucket Challenge with
Lance Slaughter, chief chapter relations and development officer
at the ALS Association

appendix
Practical Tips for Key Social Media Platforms 189
Crowdfunding Case Study: RE-volv, with Andreas Karelas,
founder and executive director at REV-volv

Chapter 18
Mobile Fundraising 195
Interviewees: Heather Mansfield, author of Mobile for Good: A How-To
Fundraising Guide for Nonprofits and principal blogger at Nonprofit
Tech for Good, and Tanya Urschel, nonprofit vertical manager at PayPal
Insets: Planning for Success: The Mobile Matrix™ by Sparrow: Mobile
for All; Text-to-Give

C o n t e n t s x v

Part 5: Foundations 205

Chapter 19
Research, Getting in the Door, and Securing
an Invitation to Apply 207
Interviewees: Tori O’Neal McElrath, author of Winning Grants
Step by Step and founder of O’Neal Consulting Services, and
Leeanne G-Bowley, manager of capacity and leadership
development at Foundation Center and artistic and executive
director at In-Sight Dance Company
Insets: The Different Kinds of Foundations; Types of Grants

Chapter 20
Government Grants 221
Interviewee: Joshua Sheridan Fouts, executive director at Bioneers
Inset: Where to Find Government Grants

Chapter 21
Writing a Winning LOI and Proposal 227
Interviewees: Susan Fox, co-author of Grant Proposal Makeover:
Transform Your Request From No to Yes and fundraising consultant,
and Jane C. Geever, author of The Foundation Center’s Guide to
Proposal Writing and founder of J.C. Geever

Chapter 22
Tracking Progress and Reporting Back 235
Interviewee: Beverly Browning, author of Grant Writing for
Dummies and vice president of grant writing services at eCivis
Inset: Logic Models

Part 6: Corporate Support 243

Chapter 23
Sponsorships 245
Interviewee: Maureen Carlson, president of GoodScout
Inset: Sponsorship Proposal Template

x v i C o n t e n t S

Chapter 24
Cause Marketing Partnerships 255
Interviewees: David Hessekiel, co-author of Good Works and
president of Cause Marketing Forum, and Joe Waters, author
of Cause Marketing for Dummies and founder of Selfish Giving
Inset: Cause Marketing Proposal Tips

Chapter 25
In-Kind Fundraising and Media Sponsorship 265
Interviewee: Gayle Samuelson Carpentier, chief business
development officer at TechSoup Global

Part 7: Unlocking Social enterprise 273

Chapter 26
Earned Income Strategies 275
Guest Contributor: Rick Aubry, professor of social enterprise at
Tulane University and founder of Rubicon Programs
Social Enterprise Case Study: Grow Dat

Afterword: Finding Your Path 287
Premal Shah, president and co-founder of Kiva.org

Closing Thoughts 291
Book Partners 295
About the Authors 317
Index 319

xvii

About the Book

“You don’t have to know all the answers, you just need to know
where to find them.”

—Albert Einstein

There’s a story I like to tell whenever I address an audience of nonprofit
fundraisers. It speaks to what I think of as the single greatest obstacle
standing in our way as a community, and especially as a sector—the
mistaken notion that when we raise money for an important cause,
somehow we’re begging for alms, holding out our tin cup.

The story is about a young college student in a philosophy class. One day,
the professor greeted his audience of 100 master’s and doctoral students
with a question. “Is this glass half full, or half empty?” he asked.

The students spent the entire 90-minute class debating and discussing, but
as you might imagine, they never solved the age-old riddle. This especially
frustrated one of the students, whose family had made great sacrifices to put
him through school, even after he finished his undergraduate studies.

He huffed and puffed on his way home, where his grandmother, Gertrude,
was there waiting for him.

“How was class today?” she asked as soon as he walked in the door, but
the student was upset and didn’t want to talk about it. She pressed him, as
grandmas are prone to do, and finally he told her about his experience.

“Well, if you really want to know, it was incredibly frustrating. We had a
hundred master’s and doctoral students sitting around for an hour and a
half, and all we did is debate if the glass were half full, or half empty.”

His grandmother, with only a second-grade education, didn’t miss a beat.

x v i i i A B o u t t h e B o o k

“Well son, it depends on whether you’re pouring or drinking.”

Pouring . . . or drinking. Brilliant. And the reason I share this story with
fundraisers every chance I get is that I believe the tin cup approach to
fundraising is based on a failure of perception. We mistakenly think of
ourselves as the drinkers, relying on the charitable contributions of others
to conduct our work. And although it may feel like that at times, nothing is
further from the truth.

We are the pourers. What we do as a sector, as a Movement with a capital
“M,” is connect people with resources to the change they want to see
in the world. Fundraising is holy work in my mind, and we’re privileged
and honored to do it for causes we believe in. The world needs us—we are
a conduit, a channel. And through us, the world finds the resources and
support it needs to thrive, or at least to improve in some small way, one
dollar, peso, or pound at a time.

Book Overview and Purpose

Our goal when writing this book was to offer a useful, unique resource to
you, the reader. Laila and I may not know you, but we’ve been where you
are. You’re passionate, creative, and committed to your cause. Maybe you
have resources, expertise, and contacts at your disposal, as we have these past
years, or maybe you’re like us years ago, starting nonprofits with no budget,
no plan, and no experience. Either way, this book will serve you. After more
than a decade in the sector, we’ve seen lots of fundraising books, but there’s
nothing like what we’ve pulled together in these pages. This book is the first
comprehensive, practical guide to all aspects of nonprofit fundraising
around the globe.

Ultimately, this is a reference manual, and not every fundraiser needs to know
about every tactic or strategy. It’s unlikely that you’ll read this book straight
through, and that’s OK; Nonprofit Fundraising 101 is intended to be your yellow
pages for social change. Apply it as needed. Keep it on your desk and when you
decide to pursue your first government grant, or your executive director charges
you with creating a fundraising plan for your nonprofit, it’ll be there. Break
it out when you get ready to launch a new crowdfunding campaign or finally
commit to taking your cause mobile. Or simply refer to the various Resource
Reviews and the Book Partners if you’ve already mastered the basics and are
looking for resources to advance your professional development.

A b o u t t h e B o o k x i x

Use the book as you see fit and, please, share it with colleagues and peers.
All of us can learn a lesson from Chapter 9 interviewee, Kay Sprinkel Grace,
who once quipped, “We need to tilt our silos on their sides, and turn them
into pipelines.”

Book Structure and Style

To make the book as readable as possible, we’ve crafted a consistent framework
for all of the chapters, which is in line with the one used in Nonprofit
Management 101:

• Introduction: Each entry starts with a short overview of why a
busy nonprofit leader like you should take 20 to 30 minutes out
of his or her schedule to learn more about this topic. Which kinds
of nonprofits can benefit from this strategy, and what does this
approach have to offer your cause?

• Critical Skills and Competencies: This portion typically contains
70 to 80 percent of the content for each chapter, and is where you’ll
find the step-by-step framework for success in each respective arena.
We’ve done our best to distill each interviewee’s comments and
insights into a how-to formula for success, presented in a logical
progression with several main headlines, each of which is followed
by a few paragraphs to fill in the specifics.

• Conclusion: A paragraph at the end of each chapter helps to
underscore key points and takeaways, reminding you of some of the
highlights and crucial components of the formula for success.

• Do’s and Don’ts: These are bullet point lists of concrete,
actionable tips from within the chapter and beyond, each of
which is distilled down to a sentence or two to make it as easy as
possible to digest.

• About the Experts: Brief bios for each chapter’s interviewees are
included at the end of their respective chapters.

• Resource Review: The final component of each chapter is where
you’ll find additional resources to learn more about that particular
discipline. Many of these also offer helpful templates, resources,
and reports to keep you updated as trends and technologies evolve.
These resources are a treasure trove, so be sure to subscribe to the
newsletters and blogs, read the annual reports and books, and rely

x x A B o u t t h e B o o k

on the links outlined here to keep abreast of industry trends and
developments.

• Case Studies and Insets: Sprinkled throughout the chapters are a
variety of case studies that showcase specific nonprofits’ experiences,
with a focus on best practices and pitfalls to avoid. In addition,
you’ll also find a range of insets that dive a bit deeper into a specific
component mentioned in the chapter, or that provide templates,
checklists, and more.

All the chapters are short and incredibly practical, and our goal with this
book is not simply to leave you inspired, but inspired to action. Short
and to the point, we share concrete, real-world insights, tips, and tools from
globally recognized experts, and leave you with clear takeaways that you can
put to work immediately, making you both more effective and efficient at
serving your cause. As recovering executive directors and current fundraisers,
we know you’re busy, and the last thing you need are pie-in-the-sky ideas
and concepts that may make you think, but that fail to immediately help,
and even transform, the way you go about your everyday work.

From a style standpoint, we strived to make the book easy to read and
digest. Paragraphs are kept short to facilitate ideas sinking in, and we’ve
used a conversational tone, since ultimately, we are talking directly to you.
We’ve also formatted things in a way that aims to help you retain the most
important ideas without you feeling like you have to bend every other page
or break out that old, faded highlighter. To this end, important points and
comments are italicized, while concrete takeaways and best practices are
bolded and italicized throughout the book. You’ll see a wealth of the latter
in each and every chapter, because for us, that’s what this publication is all
about.

Admittedly, many of the interviewees and statistics are from the United
States, but this book is intended for a global audience of experienced
practitioners and emerging leaders, including university students and
volunteers. To this end, we’ve done our best to ensure Nonprofit Fundraising
101 speaks to nonprofits, charities, and causes all around the world. So
don’t worry if you’re just getting started, or if you’ve been in the sector for a
decade. Similarly, there’s great content in here for organizations of all sizes.
The tips and tools shared herein are relevant to organizations ranging
from small, grassroots efforts with no paid staff, to well-established
nonprofits with big budgets and a large team of paid professionals.

A b o u t t h e B o o k x x i

Common Themes

This book covers a wide range of fundraising topics; in fact, our goal was
to address a truly comprehensive range of disciplines, offering readers one
single book that provides at least a basic sense of everything you need
to know. As such, there are a huge diversity of perspectives and topics
represented in these pages, but three important common themes and ideas
appear throughout:

Plan for Success: Many of the frameworks and formulas for success shared
in the chapters start with—or even revolve entirely around—creating a
solid plan. Planning is the lynchpin of any nonprofit’s success, and in
fact you’ll often hear us share one of the questions we find most helpful
when driving this process, “What does success look like?” Ask this question at
every meeting, every strategy session, and reverse engineer how to achieve
your ideal outcome. Take a moment to step back and envision your path
before you dive into any activity or project to ensure you’re as impactful
as possible. As Peter Drucker once noted: “Efficiency is about doing things
right; effectiveness is about doing the right things.” Good planning helps
you be both efficient, and effective.

Meet People Where They’re at: Several chapters speak to the notion that you
cannot expect donors to come to you; you need to court and steward them
where—and how—they’re most comfortable. Whether we’re talking about
the importance of ensuring your website is mobile-compatible, talking about
Facebook and Twitter, or underscoring the huge, continued role of more proven
approaches like direct mail, the point is that, to be successful, you must take
a dispassionate look at which channels and media are most appropriate for
achieving your goals. Along those lines, this book contains some surprises. For
example, did you know that 2013 was the first year in U.S. history that Baby
Boomers were just as likely to give online versus by direct mail? Or did you
realize that odds are, at least 40 percent of your nonprofit’s website traffic today
comes from people on mobile devices? Keep an open mind and be willing to
experiment with some of the ideas and tactics shared in this book, always with
an eye toward the old mantra, “fail fast, fail forward.”

It’s Not About You: As we shared in the story at the beginning of this section,
nonprofits are a channel, a conduit, between donors and impact. The most
successful nonprofits and fundraisers communicate not about their work,
needs, or impact, but rather about the impact the donor or prospect makes

x x i i A B o u t t h e B o o k

possible. Talk with people about what drives them to act and contribute—
about what their past support has enabled or their future contribution will
make possible—and revenue will follow. Several chapters build on this idea by
speaking to the power of peer testimonials and creating a movement instead
of a campaign. And remember, people want to be part of a winning team, so
framing your work as powerfully as possible is critical. Always the inspiring
and inspired communicator, Kay Sprinkel Grace shares two great sound bites
that bring both of these key points home in Chapter 9 when talking about
major donors:

“People don’t give to you; they give through you.”

and

“People don’t give to you because you …

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