Deck 15: Generating Funds

Question 1

Why might some sources of revenue be undesirable for a nonprofit organization?

Answer 1

.Mission distortion could be caused by factors external to the organization such as when the donor attaches conditions (strings) forcing it in a direction it would not want
.Mission distortion would be caused by factors internal to the organization; such as chasing grant money in order to keep staff would deflect attention from its core mission.
. The revenue source costs more than it brings in due to factors external to the organization such as when a fundraising celebrity concert costs so much that it was not worth the effort
.The revenue source costs more than is brought in due to factors internal to the organization, such as in the case of selling products unrelated to the core function that lose money.

Question 2

Why should fundraisers adopt the strategic perspective of managing an exchange?

Answer 2

. Organizations mistakenly try to motivate donors by outlining the organization's needs rather than understanding that people give to meet their own needs
.Individuals have a variety of motivations for giving which determines what they want in return. The BCOS model suggests that fundraising should aim at meeting potential donor's needs and wants by conveying what they will receive in return, minimizing the costs involved, showing who other contributors are, giving clear instructions about paying, etc.
.Once a gift is received, the organization should respond with information and communications that convey the values the donor wants to receive such as gratitude, evidence the funds were well used, recognition for their altruism, etc.

Question 3

Describe the elements of an effective annual fundraising campaign

Answer 3

. Strong volunteer leadership and staff support
. Clear organization structure
. Ambitious, but realistic, objectives
. Careful segmentation of donors and prospects
. Extensive prior research
. Thorough training of volunteers and staff
. A detailed timetable of activities and clear deadlines
. Extensive reports and accountability
. Donor and volunteer recognition
. An online giving component
. Modeling a building of lifetime donors approach

Question 4

The attitude in a customer oriented strategy for fundraising is:

A) We have a good cause and people will support us
B) There is lots of money out there and we just need to show doors why they should give
C) We must understand people's motivations and find those whose interests match our own
D) We must target all potential revenue sources even if some need a hard sell approach
E) We have to adopt a retail goods component to our nonprofit in order to have balance

Question 5

When identifying which foundations to target, the strategic emphasis should be on

A) Pitching the budget at an appropriate level
B) Selling a worthwhile cause
C) writing a persuasive proposal
D) matching interests
E) figuring out which ones have the most money

Question 6

Nothing can tarnish the reputation of a nonprofit as fast as

A) not meeting fundraising goals
B) poor management of financial trusts
C) deriving revenues from sources unrelated to their core mission
D) using a "hard sell" in working with donors
E) asking volunteers to do too much

Question 7

According to Robert Sharpe, individual donors can be segmented according to

A) life cycle stage and giving patterns
B) income and education levels
C) occupation and lifestyle level
D) geographical region
E) age and occupation

Question 8

Motives vary by age, income and gender. Which motive is the strongest for wealthy individuals?

A) Tax benefit
B) Religion or spiritual belief in tithing
C) Feel strongly about the cause
D) Previous personal experience with the organization
E) Received a specific request

Question 9

A major gifts campaign should be based on

A) a direct mail solicitation sent to all members of the community
B) a telephone campaign segmented according to zip code
C) a telethon held on an annual basis, using trained volunteer solicitor
D) a list of major donors to other campaigns in the community
E) the benefits and costs that each prospect sees in giving

Question 10

The best prospects for corporate fundraising will be when

A) the corporation wants to use philanthropy as a competitive weapon
B) the nonprofit can easily show the corporation that it will get strategic payoffs
C) the endeavor will provide the corporation with tax deductions or reductions
D) the corporation has a formal donations policy
E) the nonprofit has representative from that corporation on its board

Question 11

Planned giving refers to

A) having a plan and making a pledge to the annual fundraising campaign
B) having a plan to give a major gift to a nonprofit
C) having a plan built around identifying good prospects for donations
D) making a donation in a planned series of payments
E) prearranged gifts made at the time of the donor's death

Question 12

One of the most important initial tasks of any fundraising campaign committee is to

A) Set goals
B) meet or exceed the previous year's fundraising
C) support the staff with recognition and proper remuneration
D) ensure the right personal contacts are made with potential major gift donors
E) creating the list of prospects

Question 13

Strategic Philanthropy can meet the following corporate goals

A) increasing profits and decreasing costs
B) providing employees with jobs
C) improving employees' sense of job satisfaction
D) reengineering company systems and operations
E) reducing the amount of money the corporation has to give in the community