Monday, November 2, 2009

Grassroots Fundraising

So, after all this looking at how the non-profit, foundation-grant-funded organizational model can't be truly revolutionary - what's left to keep an organization running? Funding from the grassroots, of course! Not only is that the most strategically effective, it is actually the most realistic. During session a guest presenter and longtime fundraising expert, Nisha Anand, broke down a lot of statistics that I'd love to share with you all.

Where Does Organizational Funding Come From?
75% from individuals
7.5% from bequests
12.5% from foundations
5% from corporations

So why do groups spend so much time chasing down foundations and corporations - yes, they are large sums, but that makes it even more vulnerable. One foundation can change its mind (as has happened to several groups with radical politics (supporting Palestine, etc) and pull the rug out from under a project.

Who Gives in the USA?
  • Seven out of 10 people give to non-profits
  • 85% of money from individuals comes from households with a family income less than $60,000.
  • Households that make under $10,000 give away 5.5% of their income every year.
  • Households that make over $100,000 give away 2.5% of their income every year.
So it's true, the more you make, the less you give away proportionally. Also, looking at these numbers, you have to realize that the majority of money funding projects comes from people who have very little wealth! That could be a combo of just being more generous in general and of funding causes because they have a real chance of positively impacting their lives.

Which Fundraising Tactics are most financially effective?
(looking at the time you put in versus the money you get out)
0% Special Events (such as galas, etc)
1-2% Direct Mail
10-15% Door-to-Door canvassing
10% Phone call w/written follow up
15% Personalized letter followed up with a phone call
25% Personal Phone call followed up with a letter
50% Personal Visit with a face-to-face ask

We did a lot of work around why people feel uncomfortable asking for money - that capitalism requires us keeping quiet about money (and inequities in wages, etc) so we are taught never to talk about money. We looked at different fears people have around asking for money, and different strategies to use to do fundraising. We have all been tasked with raising at least $700 for Catalyst (our program registration fees don't come anywhere close to covering Catalyst's costs). So in a bit I will be asking all of you all to contribute what you can!

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