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The
Annual Fund
Linda Lysakowski, ACFRE
President/CEO
CAPITAL
VENTURE
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For many organizations, the annual fund is a
mystery, for others it is a routine which becomes
stale, and for some it is extremely successful
and challenging. Here are a few hints to help
your organization benefit from a successful annual
fund.
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The annual fund does not mean
that you only contact your donors once a year.
Many successful organizations solicit their
donors seven times a year or more. And the most
successful organizations contact their donors
often without soliciting them for more money.
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Consider starting a monthly
giving program, asking your donors to make their
pledges via credit card. If you can accept donations
over the Internet, this is even more successful
for many groups.
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Start giving clubs or a giving
society with different levels of giving. These
giving levels should be named after something
appropriate for your organization, the old "gold
silver, and bronze" levels are kind of
boring. One great example of tying the giving
clubs into the organization's mission is an
organization that works with babies and young
children, whose top giving level is, "Sooooo
big!"
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The annual fund, like any fundraising
program, must start with the board appeal. If
the fiscal year runs from July through June,
solicit the board through an organized appeal
program in July and August before conducting
any other appeals.
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The annual appeal needs to
have an integrated approach; direct mail does
not an annual appeal make. There should be other
methods used to solicit donors, i.e., telephone,
personal appeal for major donors. A good rule
of thumb is that the top 10% of an organization's
donors should be solicited in person, the next
20-30% by telephone and the rest by mail.
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Corporations and businesses
should not be approached by mail, but through
a special corporate or business appeal program,
using volunteers who will solicit their peers
in person for their gifts.
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Using volunteers in the annual
appeal is crucial to success. The staff cannot
do an annual appeal by themselves. (See Wiley
Press's new "Recruiting and Training Fundraising
Volunteers," authorized by CAPITAL VENTURE's
CEO/President, Linda Lysakowski, ACFRE)
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Direct mail appeals should
be personalized with the donor's name and address
and the amount of their previous gift listed.
Remember to start by thanking past donors before
asking for additional gifts. Having board members
write personal notes on the letters increases
the chance of a gift, but remember that personal
notes on the letters disqualifies you from using
the nonprofit bulk rate, However, first class
stamps and personalized letters are much more
effective, so the return is almost always well
worth the investment in a personal approach.
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The annual appeal plan must
also include stewardship acknowledgment and
recognition. Try a "Thank-a-thon"
using board or other volunteers to personally
call and thank donors for their past support,
without asking them for another gift. Thank
donors seven times before asking for the next
gift.
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If you've ever run a capital
campaign remember that may of the techniques
used in capital campaigning are easily translated
into the annual fund-there must be a compelling
case for support, the board must give first,
having a plan is essential, segmenting your
donor base is essential, always ask for a specific
amount, ask high, and use volunteers to solicit
peers.
If you need help planning your annual fund appeal,
contact the experts at CAPITAL
VENTURE
SM to talk about your needs.
Please
contact CAPITAL
VENTURE
sm
for your Capital Campaign needs!
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