Fundraising Principles and Practice
3. Edition April 2024
816 Pages, Hardcover
Practical Approach Book
Adopt an organized approach to fundraising planning
In it's third edition Fundraising Principles and Practice is a unique resource for students and professionals seeking to deepen their understanding of fundraising in the current nonprofit environment. Based on emerging research in economics, psychology, social psychology, and sociology, this book comprehensively analyzes the factors that impact the fundraising role in the nonprofit sector. Readers will explore donor behavior, decision making, and social influences on giving. Building upon that background, authors Adrian Sargeant and Jen Shang then describe today's fundraising methods, tools, and practices. A robust planning framework helps you set objectives, formulate strategies, create a budget, schedule, and monitor activities, with in-depth guidance on assessing and fine-tuning your approach.
With updated case studies and examples, this book helps you develop a concrete understanding of the theory and principles of fundraising. A companion website offers additional opportunity to deepen your learning and assess your knowledge. Updates to this Third Edition include the latest research and new content in rapidly changing areas of fundraising, such as digital and social media.
* Learn the common behaviors and motivations of donors
* Master the tools and practices of nonprofit fundraising
* Manage volunteers, monitor progress, evaluate events, and more
Fundraising Principles and Practice provides working nonprofit professionals, as well as postgraduate students studying fundraising, with a comprehensive guide to all aspects of the field, including in-depth coverage of today's most effective approaches.
Preface xxiii
Acknowledgments xxvii
The Authors xxix
1 Introduction to the Nonprofit Sector 1
Objectives 1
Introduction 1
A "Third" Sector 2
A Tax-Based Definition 6
A Structural-Operational Definition 11
Size and Economic Significance of the Nonprofit Sector 13
Sources of Income 16
Philanthropic Income 17
Summary 20
Discussion Questions 22
References 22
2 The Development of a Profession 25
Objectives 25
Introduction 25
Early American Fundraising 26
The Great Philanthropists 29
Key Historical Figures 30
Toward a Profession 32
Looking to the Future 40
So Who Are Our Fundraisers? 44
Retaining Fundraisers 45
Summary 48
Discussion Questions 48
References 49
3 The Ethics of Professional Fundraising 53
Ian MacQuillin
Objectives 53
Introduction 54
Ethics 101 55
Fundraising Ethics 60
Applying Normative Fundraising Ethics in Practice 77
Summary 82
Discussion Questions 84
References 85
4 Individual Giving Behavior 89
Objectives 89
Introduction 89
Who Gives? 90
Motivation 94
Self-Interest Versus Altruism 96
Emotions as Motives 98
The Role of Empathy 100
The Role of Values 102
Modeling Donor Behavior 103
Attention 103
Perception 106
Emotion 108
Knowledge and Memory 112
Attitudes 116
Donor Decision Making 123
Feedback 126
Alternative Models 128
Summary 130
Discussion Questions 131
References 132
5 Social Influences On Giving 141
Objectives 141
Introduction 142
A Social Giving Model 142
Societal Environment 143
Social Environment 144
Summary 161
Discussion Questions 162
References 163
6 Fundraising Planning: The Fundraising Audit 167
Objectives 167
Introduction 167
A Planning Framework 168
The Fundraising Audit 171
Analytical Tools 185
Fundraising Metrics 195
Conducting an Audit in a Small Nonprofit 196
The SWOT Analysis 197
Summary 199
Discussion Questions 199
References 200
7 Fundraising Planning 201
Objectives 201
Introduction 201
Setting Fundraising Objectives 202
Key Strategies 206
Overall Direction 207
Market Segmentation: Segmenting Individual Donor Markets 209
Segmenting Business Markets 215
Targeting 217
Positioning Strategy 219
Branding 222
Case for Support 232
Tactical Plans 233
Budget 233
Scheduling 235
Monitoring and Control 235
Selection of an Appropriate Planning Framework 236
Summary 236
Discussion Questions 238
References 238
8 Articulating the Case for Support 241
Objectives 241
Introduction 241
Storytelling 255
Summary 260
Discussion Questions 261
References 261
9 Assessing Fundraising Performance 265
Objectives 265
Introduction 265
Aggregate Fundraising Ratios 266
Conducting a Fundraising ROI Analysis 273
Other Performance Measures 278
Benchmarking Fundraising Cost 281
Sector Benchmarking Initiatives 284
Taking Investment Decisions 289
Accounting for Risk 300
Making the Case for Investment 300
Summary 301
Discussion Questions 302
References 303
10 Direct Response Fundraising 305
Objectives 305
Introduction 305
Cornerstones of Direct Response 307
Acquisition Planning 309
Setting Recruitment Objectives 310
Segmentation 311
Profiling 313
Targeting 314
Media Selection and Planning 315
Two-Step Campaigns 336
The Nature of the Fundraising Message 336
Fulfillment 344
Budgeting Control and Evaluation 344
Summary 346
Discussion Questions 347
References 347
11 Digital Fundraising 349
Adrian Sargeant and Steven Shattuck
Objectives 349
Introduction 349
Key Sources of Information 350
A Digital Fundraising Mix 351
Search Engine Optmization (SEO) 352
Digital Public Relations 362
Display Advertising 363
Opt-In Email 368
Viral Marketing 376
Website Design and Optimization 382
Giving Page Design 383
Mobile 390
Conclusion 395
Discussion Questions 395
References 395
12 Social Media 397
Steven Shattuck and Adrian Sargeant
Objectives 397
Introduction 397
The Major Players 399
Other Social Networks 406
Developing a Strategy 407
Formulating a Content Strategy 410
Integrating Your Approach 413
Leveraging Fans, Followers, and Influencers 418
Algorithms and Getting Your Content Seen 421
Measuring the Effectiveness of Your Social Media Efforts 424
Safeguarding Contacts 426
Summary 426
Discussion Questions 427
References 427
13 Donor Retention and Development 431
Objectives 431
Introduction 431
What Do We Mean By Loyalty and Retention? 433
Recruiting the Right People 435
Building Donor Loyalty and Retention 438
Planning for Retention 446
Relationship Fundraising 452
Calculating Donor Value 459
Segmenting for Growth 467
Loyalty Metrics 472
Summary 474
Discussion Questions 474
References 475
14 Major Gift Fundraising 479
Robert F. Hartsook and Adrian Sargeant
Objectives 479
Introduction 479
Characteristics of Major Givers 481
Motives of Major Givers 483
Major Donor Recruitment 490
Summary 508
Discussion Questions 509
References 509
15 Bequest, In Memoriam, and Tribute Giving 513
Claire Routley and Adrian Sargeant
Objectives 513
Introduction 513
Estate Planning 517
Who Leaves Bequests? 523
Why Do People Give? 524
Legacy-Specific Motives 530
Soliciting Bequests 534
Talking the Language of Bequest 538
Stewarding Bequest Donors 540
Systems and Processes 541
In-Memory Giving 542
Summary 546
Discussion Questions 546
References 547
16 Planned Giving 551
Matt Beem and Adrian Sargeant
Objectives 551
Introduction 551
Planned Giving Vehicles 554
Donor Motivation 565
Soliciting Planned Gifts 567
Planned Gift Donor Stewardship 570
Planned Gift Donor Appreciation 571
Managing the Planned Giving Function 573
Summary 575
Discussion Questions 575
References 576
17 Corporate Giving and Fundraising 579
Objectives 579
Introduction 579
Why Do Corporations Give? 582
Forms of Business Support 587
Who to Ask? 598
The Benefits and Pitfalls 602
Fundraising Planning 603
Summary 610
Discussion Questions 611
References 612
18 Grant Fundraising 617
Objectives 617
Introduction 617
Definitions and Categories 618
Foundation Funding Trends 620
Preparation and Planning 622
Foundation Research 624
Prioritizing Effort 626
Initial Contact 626
The Application/Proposal 627
Theory of Change 636
Building Relationships 637
The Grant Cycle 638
International Funding 641
Summary 643
Discussion Questions 644
References 645
19 Fundraising Events 649
Karin L. Cox and Adrian Sargeant
Objectives 649
Introduction 649
Summary 674
Discussion Questions 674
References 675
20 Managing Fundraising Volunteers 677
Walter Wymer and Adrian Sargeant
Objectives 677
Introduction 677
Formal Versus Informal Volunteering 680
Volunteer Recruitment 685
Retention Strategies 697
Program Evaluation 704
Summary 705
Discussion Questions 706
References 706
21 Great Fundraising 711
Objectives 711
Introduction 711
What Drives Fundraising Success? 713
Leadership Styles in Fundraising 717
Leadership and Great Fundraising 725
The Focus of Great Fundraising Leadership 727
Philanthropic Culture 732
A Final Word on Donor Centricity 738
Discussion Questions 740
References 740
Name Index 745
Subject Index 755
JEN SHANG is the world's only Philanthropic Psychologist. She is currently Co-Director at the Institute for Sustainable Philanthropy in the U.K.
