IMHM Board Presentation

I.) Intro
a. Me
i. Name
ii. Senior at IUPUI majoring in Philanthropic Studies
iii. Career in fundraising; excited to share with you what Ive learned
the last few years
II.) What do you think of when you think of fundraising?
a. Asking for money
i. Not about that
1. About relationship building
III.) Why do you think donors give?
a. Moved to give by urgency of current community need
b. Respect an organizations commitment to carry out programs that are
responsive to a community issue
c. Know and respect someone who works for an organization
d. Believe there will be a substantial return on their investment for
themselves and/or community
e. Drawn to the social aspects of being involved with the cause
f. Religious or spiritual beliefs harmonize with a cause
g. Want to give something back to an organization, community, friend
IV.) Where do we start with fundraising?
a. 4-legged stool
i. Annual Fund
1. Primary function: establish a base of donors whose financial
and volunteer support ensure fulfillment of the
organizations mission
2. Here, were focusing on our relationships with donors:
fostering and nurturing that relationship
a. Work to grow their interest and commitment to make
larger gifts
b. Only happens through cultivation of the relationship-
making the donor feel engaged through knowledge
and understanding of the organizations mission and
programs
c. Benefits
i. Bond constituents to organization
ii. Establish habits of giving
iii. Provide annual operational support
iv. From this group, major donors are identified
ii. Major Gifts
1. Self-explanatory: large gifts
a. Can be cash
b. Stock
c. In-kind gifts
d. Pledges
 2. These donors should be treated differently- looked at as
financial partners, investors
a. Relationship
i. Donors whove made step gifts over time
ii. Feel trust and confidence in the organization
1. Engage the donors motives with the
mission
iii. Long, long cultivation process
iii. Capital Campaign
1. Something were all familiar with
2. Bricks & mortar fundraising on a specific timeline
iv. Planned Giving
1. 3 types
a. Outright gifts that use appreciated assets as a
substitute for cash
i. Stocks
ii. Real estate
iii. Life insurance policies
iv. Retirement accounts
v. Helps donor avoid capital gains tax
vi. If gift is larger than 50% of their adjusted gross
income, they can carry the remainder deduction
over into future years, for up to 5 years
b. Gifts that return income or other financial benefits to
the donor in return for the contribution
i. Charitable Remainder Trust
ii. Charitable Lead Trust
iii. Smaller organizations dont usually accept these
gifts because of the complications and costs to
maintain. If they do, usually they contract a
community foundation to manage the trust,
which still results in an expense
c. Gifts payable upon the donors death.
i. Bequest
1. A provision in a will, trust, or estate plan
2. Why is Planned Giving important?
a. Our donor base have these assets to give and may not
realize the tax benefits of giving them or that theyre
able to give them
b. Our donor base is comprised of mostly retirees,
meaning talking about adding us as a beneficiary is
important for us and gives them the opportunity to
leave a legacy with the museum
c. Significant, relationship
v. Where do you, as a board, come into this?
1. Donor identification
 a. Simple as telling Sarah you know someone who may
be interested in learning more about the museum
2. Donor cultivation
a. Once you introduce a donor to the museum, foster
that relationship. Talk to them about the museum,
update them on whats happening here. Its subtle, its
quiet, but most of all, its you acting as a link between
that donor and the museum
3. Donor solicitation
a. Once a relationship is established with a prospective
donor, ask for a gift
b. May be intimidating, but well address this later
4. Acknowledgement and Stewardship
i. Saying thank you; the easy part!
ii. Offering to call donors and thank them
iii. Especially important if you were involved in the
previous steps
b. Constituency Model: Stone ripple effect
i. Inner circle
1. Provide energy for organization and influence direction
ii. Next circle
1. Provide broad base of support and potential for greater
future involvement
iii. Third circle
1. Represents a drop in energy, as they are further from the
core
2. Holds potential for reactivation and renewed involvement
iv. Fourth circle
1. Distant from energy center
2. They know little about the organization, we know little about
them
3. Where organizations attempt to cast net out to new donors,
not always successful
v. Last circle
1. We know little about giving potential
2. Minimal involvement, very modest gifts (if any)
vi. Bond is strongest at the center
1. Fundraising begins with the center constituency circles and
taken to the outer circles by board, staff, and major donors
vii. Most likely donors identified through: linkage, ability, interest
1. Linkage=contact
a. Can be geographic, emotional, professional
b. Mainly is person to person, peer of prospect
c. Most powerful is network: who knows who, and who
can arrange meetings for successful gift solicitation
2. Ability=financial capacity
a. Research by the organization
 b. Peer evaluation
3. Interest=alignment in values
a. Essential
b. Linkage and ability can be there, but a relationship
does not happen if there is no interest
4. LAI can be used across all constituency groups, but most
likely to be the most successful in the first two or three
circles
c. Activity
i. Turn to your neighbor and tell them the story of your first
experience walking into the museum.
1. Did anyone or anyones partner have a compelling story?
a. Share
2. This is fundraising; its just telling a story
d. Marketing Principle Exchange of Values
i. Warm glow
ii. Organization receives gift, but donor receives the feeling of doing
good, creating an impact, making a difference, being part of
something bigger than themselves, etc.