Presentation for South Shore Grants on March 4, 2011. Topics including managing fundraising information, processing gifts, and regulatory requirements.

1. Organizing the Fundraising Back Office March 4, 2011 Tim Mills-Groninger South Shore Grants

2. Goals and outcomes Who you are and Why you came Ground rules: Interrupt, there are no silly questions Difficult problem: I have a friend who… Introductions

3. Fundraising Soliciting support Advancement Services Back office functionality Managing donor and prospect information Receiving, Recording, and Receipting gifts Analysis: explaining the past and predicting the future Insuring compliance Mapping the Universe

4. Why Individual Giving is Important Money Creates a deep pool for major gifts Proof of community support

5. Gifts by Source Scale = billions

6. Gifts by Destination http://www.givingusa2010.org/

7. Donors People who have made a gift Prospects All carbon-based life forms except for above Types of Individuals – Part One

8. Connection Who they are and how they relate to your organization Capacity How much they can give Commitment If not you, who? How they relate to the cause Types of Individuals – Part Two

9. Warning: Desire ≠ ability Cost of research Cost of data entry Your ability to utilize information Demographic information

10. Name – easy Address(s) – kinda easy Age – depends Phone, email – depends Family/Social relationships – surprisingly hard Demographics

11. Ask the donor Ask their friends – peer screenings Participation data List appends Demographic Resources

12. Will we really use this? Is it legal? (probably) Ethical? (depends) What is the ROI? Demographic Questions

13. Prolific Greek writer Known to you, but not disclosed Most common process Importance of non-disclosure and confidentiality Unknown to you Small gifts – not a problem Larger gifts – get your lawyer involved Anonymous

14. Irrevocable transfer of an asset without reciprocal consideration to the donor Keyword: Quid Pro Quo Benefits broad population Defining the Gift

15. Last entity to control the resource Name on the account Soft credit of related parties Third party processors United Way Network for good, etc For profit v. nonprofit Defining the Donor

16. Publications 526 and 1771 Amount received Disclosure of Fair Market Value (FMV) of benefits received Optional: Date of Control Avoid tax advice Key IRS Issues

17. Sample Receipt

18. A legal and enforceable promise (contract) Hard to enforce DAF problems Write down/off Pledges

19. Date of control Cash – in hand Check – deposit Credit card – transaction clears Fees Processing and related are your cost of business Will confuse some credit card donors Cash Gifts

20. Describe the property received Decline to assign value If pressed, say “which you assigned a value of $...” Partial interest issues Stock and Other In-Kind

21. Legal, accounting, etc Not a gift Worth a thank you Work around – pay them, and let them write a check Gifts of Service

22. Support for Annie to go to X Use of vacation house for silent auction Decline of an honorarium Gifts to a club on your org’s behalf Silent auction item with no published value A company’s name and URL in printed program Let’s Play Gift or Not a Gift

23. Three day deadline Threshold? Try 1₵ Include appropriate thank you Processing and Receipting

24. Memorials/In honor of Conversion to annual giver opportunity Soft credit Spouse, employer, influencer Matching Mainly opportunistic Appends are available, but consider ROI Other Record Keeping

25. Online Direct Mail Individual solicitation Special Events/Auctions Raffles Contracts, trusts, etc. Gift Vehicles

26. What you’ll take What you’ll refuse Who decides Gift Acceptance Policy

27. Gift accounting v. financial accounting Reconciliation at deposit level No need for individual detail But many accountants insist Shared credit for net change of non-gift contributions Accounting

28. Who will use? ROI? Selecting Fundraising Software

29. Buy Build Rent/SaaS Software Options

30. Local installation Tendency to over-buy Worthless without training Licensing (Buy)

31. Cheaper long-term Mature off-the-rack market User groups and other support options Pros of Purchasing

32. Underestimation of upfront costs Lack of custom fit Overestimation of product sophistication Cons of Buying

33. Raiser’s Edge/Donor2 DonorPerfect/ResultsPlus Giftworks/eTapestry Popular Products

34. Exactly what you need Tendency to under-plan Development is training Build – Custom Development

35. Custom fit Cheapest solution per feature Forces complete process analysis Pros of Building

36. What you said, not what you meant Feature creep = most expensive solution Frankenstein-like monster kept alive by moody contractors or staff Cons of Building

37. In house: FileMaker/Microsoft Access Consultant: Using above products But what do you care? Build Options

38. Software as a Service or “The Cloud” Lowest up-front investment Same buy/build issues SaaS

39. Low monthly rate Backup and technical issues outsourced Use anywhere Pros of the Cloud

40. Most expensive option over long-term Provider-driven upgrade schedule Beneath the hype is just software Cons of SaaS

41. Saleforce.com DonorPerfect eTapestry SaaS Options

42. Constituent Relationship Management – CRM Social networking and engagement Beyond Fundraising

43. Promote laziness: dupe check early Address correction request Adhere to standards Eschew secret lists Data Hygiene

44. Celebrating uniqueness Too much overlap Idiosyncratic history Constituency and Other Coding

45. Donor/solicit Board Connection Capacity Commitment Good Codes

46. Former Board Event interest Too narrow of a connection Bad Codes

47. Confidentiality Statement Physical – desktop and files Network Application Security

48. IRS HIPPA FERPA PCI State Registration Compliance

49. Ibid: Gift Acceptance Policy Gift processing guidelines Data governance standards Cross training The Advancement Services Plan

50. Indentify gaps – quality and standards Commit realistic staff and financial resources Involve the development committee Check your work/come up for air Homework

51. Thank You