Fundraising 101 Fundraising Class Agenda Part I: Introductions Part - PowerPoint PPT Presentation

Fundraising 101

Fundraising Class Agenda Part I: Introductions Part II: Traditional Fundraising Practices Part III: Crowdfunding Basics Part IV: Grantseeking - 360 degree view Part V: Q&A 2

Why Fundraise? 1) Financing your creative practice starts with earned income Ex: money earned for purchase of art, tickets, membership, classes or workshops, etc 2) Fundraising is used to cover costs that you would otherwise not have access to from earned income or personal finances 3

Arts Money • Half of all dollars come from earned revenue • Organizations and artists who can figure out a way to sell goods (e.g., a painting) & services (e.g., teaching) present a stronger case for support when asking for government or foundation money.

Fundraising - Who gives $? 1) Individual Giving --> Fundraising Campaigns 2) Foundation Giving 3) Corporate Giving --> Grant Writing 5

Individual Giving • Through Earned Revenue –Best case: this is your primary source –Set aside for investments: improves your position for grants • Through Contributed Income –Appeal Letters –Begin with non-monetary contributions –Events come with caveats

Individual Giving • Best Practices: Contributed revenue from individuals come second to earned revenue • Economics and altruism –People with substantial assets & income are advised to give –People give to people they trust & believe in, want to make the world a better place.

Individual Giving • Find them! –Start with your inner circle and work out –The creative economy is a social economy –Get people involved with your art –Pursue networking opportunities –Get contact info, keep people informed

Individual Giving Circle of Influence Exercise Take 7 minutes: List 25 people that you know - Friends, family, associates, co-workers Next, circle everyone who would identify you as an artist. Finally, circle everyone who knows about your current project. The most important thing for these 25 people (and hopefully more) will be to support YOU. Get the people you know involved in your work. Let them know how they can support your current project(s). 9

Crowdfunding What do the Statue of Liberty & Crowdfunding have in common? 10

Crowdfunding Basics • 30 - 90 day campaigns --> creating a sense of urgency is key! • Social media is your friend, but not the only way of reaching your patron base • Videos lead to more successful campaigns • Be specific about how the $ will be spent • Set realistic fundraising goals • Outside of FS - be careful about giving out “rewards” or “swag” - can cost you more than you get in –FS projects have to deduct the monetary value of any rewards for giving; ex. a donor who gives $100 and gets a t-shirt, can only deduct $100 - the cost of the t- shirt 11

Crowdfunding Basics • It takes 12 “touches” on average before people donate – don’t be afraid remember to remind people! • Have multiple ways of “touching” people – diversify and conquer • Have a strong value proposition – why should people give? why will it matter to them? • Tell a story! –use your creativity (videos, images, a narrative...) • Say “Thank You!” –Current donors could become future sponsors & champions 12

Crowdfunding Sites: Kickstarter - No charities or causes can be funded, only creative projects - All or Nothing: Campaigns that do not meet their stated goals DO NOT GET ANY FUNDS (but also don’t get charged anything) - Fees: 5% to Kickstarter, 3-5% for credit card processing (which means, you receive 90- 92% of the funds you raise) - 60 day maximum campaign duration. Average campaign - 30 Days 13

Crowdfunding Sites: - Funds more than just projects, giving you more flexibility, and more global - 2 types of campaigns: All or Nothing (“Fixed Funding”) or receive what you raise, even if you don’t meet your stated goal (“Flexible funding”) - Fees: *Fixed Funding: 4% to Indiegogo + 3% for credit card processing (IF YOU MAKE IT), or Nothing if you don’t *Flexible Funding: 9% to Indiegogo of what you raise (shy of your stated goal) or 4% of what you raise (if you make your goal), + 3% for credit card processing - 60 day maximum campaign duration. Average campaign - 47 days 14

Crowdfunding Sites: ArtsForce 15

Asking vs Giving (3 min) In Pairs, answer the following questions: – Talking about money makes me feel... – Asking for money makes me feel... – Giving money makes me feel... 16

Grant Writing Do’s Don’ts - Don’t ask questions that you can - Start early easily find out yourself - Ask questions --> i.e. KNOW THE DEADLINE, --> be clear about what you are asking BASIC GUIDELINES! - review the --> ask for funders’ advice on how to best information on the website and/or the reach your goals application - Be realistic (timeline & budget) - Don’t think that a smaller budget or smaller amount of time looks better - PAY YOURSELF - Don’t list partnerships that you - Have a clear definition of the SCOPE of haven’t previously had conversations the project with about your project --> location, start & end date, market - NO BASIC MATH ERRORS plan, defined target, partners in place - Have a project that needs a lot of - demonstrate a history of success “permissions;” i.e. things that could * Have a clear vision of what you want to lengthen/protract the project accomplish over all * - Take a “no” to mean you’ve had a bad conversation, or that it means “never” 17

Grant Writing • WHO? –Understand your Audience -- do the research • who do they fund, where, why? Do you fit? Stay up to date, as Foundations can change their funding priorities • The saying goes, “If you’ve met one funder, you’ve met... one funder” 18

LOIs • Letters of Inquiry or Letters of Intent • Usually the first stage prior to submitting a grant proposal • not more than 2 pages long • cover letter – tell them the reason you’re writing the letter – with this grant, I will x,y,z – briefly explain experience, bio – who will benefit 19 – end with thanks

LOI’s serve multiple purposes • working paper to help research and identify appropriate grantmakers • talking paper to help engage your staff, board and other possible partners and collaborators • letter of inquiry to potential grantmakers • full proposal to grantmakers that only require a minimal application

Developing an LOI • challenges you to demonstrate your commitment to pursuing the idea • provides the opportunity for you to organize your thoughts on paper • identifies the information, commitments, and additional research necessary to create a winning proposal

Institutional Giving • Very competitive, decreases year-to-year • Corporate Marketing • Corporate Giving • Private Foundations • Government Agencies

Corporate Giving • Look at Charitable giving AND marketing departments • Corporations are looking for ways to increase their brand recognition for marketing (they want customers) • ex. If you have a K-12 education event, perhaps not a beer sponsor; look to a sponsor that has the same focus • Doing your research - start sending out LOI • think about asking for in-kind donations 23

Charitable Giving to the Arts • Why is it considered charitable?

“Exempt Purposes” :: IRC 501(c)(3) The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.

Distribution of Foundation Grants Arts & Culture 11% Religion Social Sciences Science & Tech 2% 1% 3% Public Affairs 12% World Peace 3% Education 24% Human Services 15% Health Environment & Animals 22% 7% Source: Foundation Center (2010)

Blue Ocean Strategy: Applied to Grant Writing Would your work fit with sectors outside of “arts and culture?” – (Science) National Science Foundation --> Antarctic Artists & Writer’s Program:http://www.huffingtonpost.com/john-m- eger/art-based-learning-gets-n_b_1867277.html –(Health) Grants to artists working in nursing homes: https://www.nh.gov/nharts/grants/partners/artsinhealt hcare.htm –(Transportation) Amtrak Writer Residency: http://www.cnbc.com/id/101510471 27

What Next? Site Visit • Have the best examples of your work on display • Have 3 strong/recent accomplishments to talk about • Clearly articulate your vision & what you want to accomplish with the funds • Stay on message; don’t ramble • Take care that the way you dress/present yourself matches the impression you want to give • If possible, know your site visitor --> prepare questions 28

What Next? The Elevator Pitch 29