[Key Knowledge Area] Motivations, practices, and policies of various funding sources

WHO |Funding Source

WHY | Motivations

WHAT | Practices

HOW | Policies

HIGH NET WORTH INDIVIDUALS

Motivations

Want to “give back” and “make a difference”
Interested in projects that align with their values and interests
Financially Secure
Tax benefits
Religion
Creating a family tradition of Philanthropy
Peer Influence
Demonstration of social standing

Practices

Charitable donations tend to increase with income
Net-Worth alone is ot a good predictor of lifetime giving
Contribute less than 10% of their income
Source of wealth has an impact on contributions with inheritance or family wealth being the highest

Policies

Largest contributions come through bequests
Use other vehicles rather than giving directly using Trusts or Private Foundations
More likely to give from wealth rather than annual income

CORPORATIONS

Motivations

Building healthy communities
Retain and recruit customers and employees
Align themselves with nonprofits because it is good for business and viewed as the right thing to do.

Practices

Fastest growing area of nonprofit support: cause-related marketing, sponsorships and other partnerships

Models of Corporate Giving: How Companies Approach Their Fiving And Volunteering To Nonprofits

1. Productivity
Corporate giving will increase profits and return more value to stakeholders
> Create a link between how their support will contribute to the bottom line

2. Ethical or Altruistic
Businesses and their leaders have a responsibility to good corporate citizens
>Show how their gifts will benefit the community through engagement of employees and leadership

3. Political
Externally, corporations use giving to build relationships that protect corporate power and influence those limits that government have over companies. Liaison to community allies.
Internally, corporate giving officers are agents with the larger corporation and needs to build internal allies show the benefit of giving.
>Build the case for support and engage with all units of the company

4. Stakeholder
Are complex entities that must respond to the needs and pressures of various key stakeholders including shareholders, employees, suppliers, customers, community groups, and government officials.
>Demonstrate for the nonprofit is a stakeholder

Policies

Collaborative, Strategic and Productive
Impacted by slow economy
Directly linked to profits
Third of gifts come from corporate foundations
Workplace charitable campaign

FOUNDATIONS

Sending unsolicited proposals to foundations without the benefit of prior conversations is one of the most unproductive activities of fundraising professional can perform.

Independent
Corporate
Community
Operating

9 Key Steps In Securing Grants From Charitable Foundations

Identify potential funders by geography, similar mission and programs and current supporters
Match programs and needs between the foundation an organization
Find a connection
Schedule a meeting
Prepare a presentation
Ask questions and listen
Prepare and submit proposal
Received a gift
Follow up

Motivations

Improving civic or public good

Practices

Value collaborations
Effective governance and management
Emphasis on Diversity
Capacity Building
Require extensive evaluation

Policies

Donor-Advised Funds
Distribution minimums
Support operations, program, capital projects, pilot programs, and challenge or matching gifts

	Created by Helena Banks over 4 years ago

	Copied by Helena Banks over 4 years ago

	Copied by Helena Banks over 4 years ago

CFRE Fundraising (Current and Prospective Donor Research) Note on TASK 1, created by Helena Banks on 18/06/2020.