HOW TO ARTICLES

EFFECTIVELY USING YOUR COMPUTER TO HELP RAISE FUNDS
FOR YOUR NONPROFIT ORGANIZATION
By: Berwyn J. Kemp

Raising funds for your nonprofit organization is a very time consuming
activity, and anything that can help you do more in less time is
indeed something that deserves your careful consideration and
utilization. The effective use of your computer to help you raise
funds, or better run your organization in general, involves the use of
effective marketing techniques. In this case you are selling donors
and donor prospects on the idea that they should provide funding for
your organization. Here are some steps to help you more effectively
integrate your computer into more effective fundraising:

1. Identify a group of donors and donor prospects who could provide
funding to your nonprofit organization. And carefully analyze just
what these donor prospects will get out of doing what it is that you
want. Which could be more spirituality, a better safer community, a
feeling of joining together with others for a worthy cause, and a host
of other benefits that are truly important to this group.

2. Develop the marketing plan that you will use to persuade these
donors and donor prospects that they can get exactly what they want by
helping you get what you want, in this case more funding for your
organizations. Then be prepared to work your marketing plan until
these prospects do what it is that you want them to do. Or until it is
perfectly clear that they will never do what you want.

3. Think through all of the likely responses that these prospects
could possibly make to your offer. For example, some will say yes,
some will say maybe, some will say perhaps later, and etc. Each and
every possible response that they can make to your offer must be very
carefully thought through from a marketing perspective.

4. Prepare all of the various documents that you will need to
effectively market to this group based on what you will need in
response to their particular responses. Which will include such items
as development proposals, case statements, solicitation letters, and a
host of follow up letters to each situation that you will encounter
marketing to this group. Then save these documents on your computer as
form letters. So that when a particular situation arises you can
respond faster. Rather than looking at each situation as unique, when
in fact most of what you do each day is routine, so plan accordingly.

5. Keep marketing to your first group of prospects effectively using
your computer and your form letters with that understanding that over
time many of them will do what it is that you want them to do. While
at the same time locating other new prospects that you would like to
persuade to fund your organization as well. And integrating these new
prospects into your marketing plans. Thus, you’ll be getting funding
from all those prospects who are responding to your current
fundraising efforts, those who are responding to your previous
efforts, and from those who will respond to your future marketing
efforts for a regular and ongoing source of funding for your
organization.

6. Add new form letters and documents to your stock as slightly
varying situations arise. Yet, there will be very little need to
create any new documents form scratch, since much of what you’ve
already prepared will be the basis for the new documents you prepare.
And can be incorporated into most of the new documents you produce
making creating them a snap.

Yes, the effective use of good marketing methods, your computer, and
your all ready prepared form letters will help you to handle all those
routine situations in a proactive rather than a reactive fashion, as
you work to persuade those who can fund your organization to do so.
The other alternative is to waste far too much of your valuable time
doing everyday things.

What foolishness, doing the same everyday things as if they where
unique situations, and like you have never done them before, and like
you will never do them again. What a very terrible waste of time, time
that you could be putting to much better use I’m sure, but only if you
think like a marketer and effectively utilize your computer system to
help you.

Berwyn J. Kemp is a fundraising consultant who helps nonprofit
organizations obtain funding. For full details on his funding
products, or to read more of his re-printable articles you can visit:
http://www.berwynkemp55.tripod.com

WHY YOUR NONPROFIT NEEDS A FIVE YEAR FUNDING PLAN
AND HOW TO PREPARE ONE
By: Berwyn J. Kemp

Today many institutional funding particularly foundations and
corporations are requesting five year funding plans from organizations
like yours. Because at any one point in time as much as 70% to 80% of
these grantor’s monies are committed elsewhere, and while you need
funds now you’ll also need funds in the future as well.

While there may many funding sources that may wish to make you a grant
today, with their monies currently being committed other places, they
may be currently unable to do so. Thus your five-year plan allows you
to enter into a meaningful and constructive relationship with these
funders, as far as them making your organization a grant at some
future date.

Yes, you do need funding now but you will also need funds in the
future, thus your five-year plan helps your organization avoid merely
short-term thinking. And wouldn’t it be good to have a list of
prospective grantors that you know will provide your organization with
grant funds at some future date? Of course it would, therefore the
need to prepare a five-year plan for your organization can not be
overstated.

Preparing Your Five Year Plan

Your five-year plan should start with your current operating budget in
which will be its longest section, and then a synopsis of the
following kinds of information and questions being answered:

* Is the name of each program (project)?
* Who was served by each program last year?
* What is the cost of delivering these programs?
* What's the projections for programs’ growth, stability or decline?
* What are your program and project plans for next year with costs?
* How much revenue are you certain you’ll receive?
* What are your anticipated surpluses or deficits?

Like all documents produced for institutional funding purposes your
five year plan must be a relatively short clear concise and lively
upbeat document, Since all overly long documents are looked upon by
these funding sources as an unnecessary time consuming burden, and
very much unappreciated.

Thus with the exception of your current operating budget which will
probably be the longest section of your five year plan, you should try
to detail the remainder of your five year plan on two sides of one 8½
x 11 inch sheet of paper. Or if your organization is rather small you
may be able to do it one side of an 8½ 11-inch sheet of paper, if you
can you should.

Last Advice

While your five year plan my be drafted by your executive director or
some other designated staff person. The content and final plan is the
responsibility of your board of directors. So once the first draft of
this plan is completed it should then be submitted to your board for
any revisions it deems needed. Doing this forces your organization
leadership to look very carefully at all programs and projects as it
relates the growth, consolidation, or liquidation of each

Moreover, the review and revision of your five year plan by your
organizational leadership helps to insure full board participation and
support in the fundraising process. Which is so very necessary to the
success of the development process for any nonprofit organization. So
by bringing your board into the full planning process you’ll find it
much easier to get their full support and commitment in all your
fundraising efforts,

PREPARING DIRECT MAIL APPEAL LETTERS TO OBTAIN
FUNDING FOR YOUR NONPROFIT
By: Berwyn J. Kemp

Does your organization currently use direct mail to raise funds for
your organization? If not, would you like to explore the use of these
fundraising methods? In either case, one of the secrets to effectively
using direct mail, whether you’re currently using it or not, is
preparing effective appeal letters to help you get the funds you need.

What is an appeal letter? Well, it is a cover letter you send with
your direct mail package to get a donation for your organization by
mail. The rest of your direct mail package, in addition to your appeal
letter, is composed of an outer envelope, a response form or pledge
card, and a reply envelope.

There are three basic kinds of appeal letters and marketing approaches
that you might be able to use to solicit gifts for your organization
using the mail. They are: The users of your services appeal letter,
the electric cause appeal letter, and the essential services appeal
letter. Let’s take a look at each of this appeal letters.

The Users Of Your Services Appeal Letter

The first group you should try to solicit by mail is those who have
used, and benefited from the services you provide. Now in some cases
the users of your services may not be able to support your
organization financially, as in the case of organizations that
provides services to children for example, in this situation you
should ask the users of your services family members and friends to
support the work you do.

The kind of appeal letter you send to users of your services or their
family and friends should:

* remind them that they or someone they benefited from your services
* suggest what might have happed if your organization didn’t exist
* indicate that for your good work to continue funding is needed, and
* indicate clearly how this funding will be used.

Once you have successfully obtain funding from your user group of
prospects you need to decide if you should approach other new prospect
groups or not. To help you decide this ask two questions about your
organization which are: Can your organizations work get a strong
emotional response from people who will provide funding to see that it
continues?

Or, are you clearly seen as providing essential services in your
market area, which others can be made to understand are also important
to them or their loved ones? If you can answer yes to one or both of
these questions you probably should consider approaching new
prospects. Using the "Electric Cause’ or "Essential Services" appeal
letter approach.

The Electric Cause Appeal Letter

The "Electric Cause" appeal letter approach is used when you want your
prospects to have a strong emotional response to your cause. This
letter often has an "us vs them" theme, or in essence says, "support
us or you may lose this or that." The letter you’ll use for this group
should:

* address their worst fears clearly and directly
* show you can keep their fears from being realized
* show you share their greatest hopes and want it to happen
* detail specifically just how these funds will be used.

The Essential Services Appeal Letter

The "Essential Services" appeal letter approach is the other direct
mail strategy you can use. For this approach to be most successful
your organization must be clearly seen as providing essential services
by the people within your marketing area. For example, the YMCA would
be one such organization. The appeal letter you prepare for them
should:

* describe clearly how these funds will be used
* stress who will benefit and how many from their gift
* use mini case studies to more clearly make your points
* indicate what may happen to them without your organization.

Yes, direct mail appeal letters to prospective donors can be a very
effective way for your nonprofit organization to raise the funds that
you seek. If you’re currently using direct mail appeal letters to do
this you can always find ways to do it much better. And if you’re not
using direct mail currently and want to then start with your users.
Then prepare effective direct mail appeal letters that speak to your
donors, in language they clearly understand.

FINDING SOURCES OF FUNDING FOR THE NEEDS OF YOUR
NONPROFIT ORGANIZATION
By: Berwyn J. Kemp

Without the funds your nonprofit organization needs you can not
fulfill your mission nor effectively serve those who need your
services. Which may cause you to have to endure such problems as a
facility in need of repair or replacement, cutting back on critical
services, staff layoffs, and even having to face the prospect of
having to close your doors for good. Yes, these are serious problems
that stem from not having the money you need. Therefore, the
importance of finding sources of funding for your nonprofit can not be
overstated.

But with some careful planning and research your organization can find
those all-important funding sources to help insure that the work of
your organization can and will continue. There are three main source
of funding that you should be exploring for the needs of your
organization, they are:

* The Donor Files Of Your Organization
* The Network Connections Of Your Organization
* Printed Sources Of Data And Information

The Donor Files Of Your Organization

First, you need to very carefully research the donor files of your
organization for both institutional and significant individual
contributors who have already provided support to your organization.
Those who have previously contributed to your nonprofit are the most
likely to continue to do so.

Thus, it goes without saying that you must maintain full and complete
records on these institutions and individuals, and regularly cultivate
and expand your relationships with them. Both as a source of funds
themselves, and the access they can provide you to other sources of
funding known to them but not known to you.

The Network Connections Of Your Organization

Second, you need to explore all of the possible network connection of
your organization for possible sources of funding. It is much easier
and more productive to contact a funding source where someone in your
organization knows someone in the funding sources organization, or the
significant individual directly or indirectly. This is, of course call
networking, which can be an important tool for your organization in
finding funding.

Your nonprofit organization, like most, may have far more possible
network connections to funding sources than you realize. Thus, you
could prepare a questionnaire that your board members, past board
members, key staff members, and key volunteer leaders can fill out.
And that obtains information on their spouses, foundations,
corporations, banks, insurance companies, and other businesses where
they know someone directly or indirectly. As well as their doctors,
dentists, lawyers, accountants, and the social, civic, religious, and
fraternal they belong to. All of this information can prove very
valuable in obtaining funding using the principals of networking.

Printed Sources Of Data And Information

Lastly, source of printed data and information can be an invaluable
help in finding sources of funding for your organization. One good
source of such information is the Foundation Center, 79 Fifth Ave, New
York, NY 10003, (212) 620-4230 who published a wealth of funding
directories and data, that you can purchase directly from them. Be
sure to request a copy of their current catalog when you contact them.

Also, you could use your local phone book to find the names of
foundations, corporations, insurance companies, local banks, and other
businesses. Moreover, you could use property tax information to locate
well to do individuals who can be cultivated over time to support your
organization. And, you should read your local society columns local
movers and shakers, and other kinds of local publications for
published information on grants and gifts made to other organizations.
Since these organizations and individuals may very well fund your
organization too.

By using these three sources, your donor files, network connections,
and printed sources of information you should be able to put together
a very impressive list of prospective funding sources for the needs of
your organization. But to make less than a full effort to explore,
research and find the funding sources your organization needs to
effectively operate will have serious consequences. Not only for your
organization but more importantly for those your organization serves.

USING COMMITTEES TO SUCCESSFULLY RAISE THE FUNDS
YOUR NONPROFIT NEEDS
By: Berwyn J. Kemp

All nonprofit fundraising at its best is a very people intensive
endeavor. Because without all the people you need to effectively raise
funds for your nonprofit organization the people you do have will be
over extended. And be asked to do far too much more than their fair
share. Which in turn will cause resentment, lack of cooperation, and
could cause resignations of talented people your agency could use.

The effective use of committees is a key part of successfully raising
funds for most kinds of nonprofit organizations here are some steps
you can take to help you effectively use committees:

1. Set up a Central Coordinating Committee to oversee all your other
committee’s activities, this coordinating committee should be a tight
group of individuals made up of: your board chairman: your executive
director; a staff administrative assistant, and other board members as
needed This committee should be composed of no more than 7 or 8
people. This committee should meet regularly and during these meetings
task action minutes of these meeting should be kept, of what was done
and what needs to be done.

2. Decide how many other committees your organization will need, which
depends upon your constituents. If your organization offers services
that are of obvious benefit to your whole community, you will have
more committees than if your services are more specialized. Depending
on the needs of your organization you could have some of the following
committees or more: A Board Committee; Past Board Members Committee;
Friends Of Board Committee; User Committee; People Connected To User
Committee; Professional Persons Committee; Corporate Committee;
Foundation Committee, and etc.

3. Appoint your various committee chairman, and it’s your boards
responsibility to take a lead role not only in contributing funds but
in soliciting them as well. Therefore each board member should either
chair one of your committees or at least be a member of one. It’s your
board chairman’s responsibility to appoint or assign each committee
chairman’s slot. Once board members have been assigned to their
respective committee chairman positions, any unfilled positions may be
filled by the board chairman bringing in his own friends and
associates to chair them.

4. Staff all your other committees, and it’s each committee
chairman’s responsibility to find committee members for their
respective committees. Thus, your various committee chairmen should be
encouraged to solicit their family, friends, and associates as
possible committee members. It’s also your Coordinating Committees
responsibility to help and assist them do this. By nominating current
and former board members as committee members, providing them lists of
past committee members, and reviewing donor data bases for possible
committee member.

5. Set your committee fundraising goals and objectives with your board
taking the lead role. In fact, 20% of the overall amount you seek
should be contributed and solicited by your board. Then set each of
your committee objectives of about 7% to 10% of the overall goal, with
your committees contributing a large percentage of their 7% to 10%
goal. If your board can not contribute and solicit 20% of the overall
funding goal then your fundraising objectives are probably too high.

6. Train your committee chairman in basic solicitation methods. This
could be a short 4 hour seminar on the subject done perhaps in the
evening or on a weekend. Or you could simply circulate a training
manual on the subject of basic solicitation methods. Once your
committee chairmen are trained in basic fundraising solicitation
techniques, they should then instruct their various committee members
on the solicitation methods they will need to function effectively.

7. Locate prospects for your various committees to solicit starting
with lead gift prospects for each committee. This can be done using
your own donor data bases, referrals from board, staff, and volunteer
leaders. You can also use local business and professional directories
and other sources of printed and published information to do this.
Depending on the kind committee, each committee will have it’s own
list of most probable prospects to solicit.

Truly, people working effectively together can achieve many great
things whereas a few handful of people working by themselves can
really achieve very little. Because you will be asking those who do
support you to do far too much, which can cause much internal
resentment among the people who currently support you. Thus, your
organization can’t really accomplished very much, nor reach its full
fundraising potential without a core of committed donors and
volunteers helping you.

WORKING EFFECTIVELY WITH FOUNDATIONS & CORPORATIONS TO
GET FUNDING FOR YOUR NONPROFIT
By: Berwyn J. Kemp

Foundations and corporations can and will provide your nonprofit
organization many thousands of dollars in funding. That’s is providing
that you use these institutional funding sources in the right way for
your needs. But if you don’t use foundations and corporations in the
right way you will lose many thousands of dollars in grant funding
which you may have received.

What is the best way to work with foundations and corporations? The
best way to work with these funders is to market to them high quality,
innovative projects and programs rather than approaching them for
operating funds. And use effective committee work and annual giving
programs to bring in most if not all of your operating fund needs

To work effectively with foundations and corporations you must first
know something about them, there are two basic kinds of foundations
they are Traditional Foundations, and Corporate Foundations, in
addition there are many corporations that provide nonprofit funding
that don’t have any kind of formation foundation set up.

Traditional Foundations

Traditional foundations make grants for almost every purpose under the
sun. The kinds
of traditional foundations you should be approaching are: Independent
foundations; operating foundations; community foundations, and family
foundations.

Independent foundations are by far the largest, with the most combined
capital available for funding; the Ford Foundation is an example of an
independent foundation. Operating foundations occasionally make grants
outside their funding statements but usually they don’t, most state
and local government agency foundations are operating foundations.

Community foundation is operated for the benefit of the community or
area they’re located in. Whereas, family foundations only fund
projects, programs and purposes that their family members or primary
donors are interested in.

Corporate Foundations

Corporate foundations fund projects and programs that enhances their
company’s image in some way, or that benefits their employees in some
way, such as, social programs, art exhibits, theater productions,
public television and etc. Corporate foundation giving isn’t as large
in scope as the other kinds of foundation giving, but still they can
be a good potential source of grant funding your organization.
Moreover, there are many corporations without formal foundation
structures that you can work with as well.

Meeting With Foundation Staff

Before you meet with any foundation or corporation officer or staff
member you should have a fairly good idea about what this source will
fund, and the range of gifts they provide so you’ll know how to much
to ask for, which will require some research on your part. Also, make
sure that the person your meeting with has all the materials they
need, such as, a case statement, development proposals, and include a
cover letter to them confirming the appointment which will be followed
up with a phone call.

During, the first 5 to 20 minutes of your meeting with a foundation or
corporation donor should be used to establish rapport with who you’re
meeting with, and be sure to smile and be very cordial. And let them
make the first move, then once their interest is confirmed sell your
proposal and show passion for your ideas. And before you leave always
find out what program or project they find most attractive. As well as
what other documents they might need, and when you can expect to hear
from them concerning your proposal.

After your meeting with a foundation or corporation funding source,
within 24 hours, you should send the person you met with a thank you
letter for meeting with you, and should stress any other details of
your proposals you forgot to discuss with them, and indicate your
continued interest in them as a source of funds. You should also write
up a 200 word synopsis of your meeting with any personal information
on your contact you may have discovered, what you promised to do and
when, and what they promised and by when, for you own files.

Yes, corporation and foundation can provide your nonprofit
organization with a many thousands of dollars in funding each year.
And a good understanding of how to best use them, which is mainly for
capital and project needs, will help you on your quest for funding. In
addition to your ability to hold effective meetings with them will all
help you to get the funding that you can use to make this world a much
better place.