LMW Blog

Monthly Archives: March 2014

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A well run annual fun is a carefully designed and executed blueprint that creates a large group of advocates who are dedicated to the organization’s progressive development of philanthropy and volunteer services, to enhance the main objective of the annual fund. The primary objectives are as follows:

  • Solicit and secure new gifts, renewal of repeat gifts and encourage an increase gift for the new year
  • Build, develop and establish a strong prospect and investor pool
  • Ascertain habits and patterns of giving by being consistent with timely solicitations
  • Expansion of the investor base is necessary through obtaining new prospects
  • It must be clear that dollars raised are for unrestricted and restricted annual money
  • To inform, engage and bond the constituency with the organization
  • Encourage the investor base to realize they are a great source to identify new prospects
  • To promote learning more about the investor to encourage an increase in giving
  • Maintain full transparency through publications or social media

The interesting formula around annual giving is that a small number of contributors provide the larger gifts. It is known that 10% of the gifts have the potential to contribute 60% of the dollars required to reach the goal. The next 20% will raise 15% to 25% of the monies needed and 70% of the contributions will cover the last 15% to 25% to complete the goal. What makes this work among the professional fund raisers in that 3% to 5% found the organizations data base, have the ability to make a major gift. This fact coincides with the original premise 10% of gifts generated have the ability to produce 60% of the funds received through gifts.

These may be staggering figures to mull over but many organizations have seen this to be true. Remember that a gift pyramid always is a necessary tool to assist your organization to retain clarity about the number of gifts required to reach your fund raising goal.

Next week we will talk about the what supports effective fund raising.