Recently a small ministry
asked me to help them raise $250,000 over the next three years for
operational and capital needs.
At this time, the organization's total gift income from
individuals didn't exceed $25,000 per year.
The $250,000 in new money over the next three years seemed
like a monumental task.
The director assembled a small
group of skeptical, but curious, board members and selected donors
to listen to some suggestions we could offer.
I started by asking if anyone thought that $250,000 could be
raised from one donor. No
one seemed to get enthused about the idea, so I moved to the next
question, "Do you believe there are 250 families in the
association who could commit $1000 to this project over the next
three years." There
was agreement in the room that this could be accomplished.
The interesting part about
this exercise was that prior to the meeting few people were
confident $250,000 could be raised.
The volunteers were average folks who knew average folks.
A quarter of a million dollars wasn't part of their
vocabulary. When the task was broken into bit-sized chunks, they became
enthused and quickly launched into the initial stages of the
strategy.
Following are some general
principles that will help small ministries reach financial goals
that have seemed unobtainable.
If you are involved with a
larger ministry, please also read on.
The principles also apply to your situation.
Your potential total dollar amount may be many times that of
the smaller ministry, but the steps required will be similar.
For our purpose here, I am
defining a small ministry as one whose annual budge is under
$150,000 per year.
I once did some phone consultation with a ministry whose
annual budget was $11,000 per year.
That is small!
Your budget may be $250,000
per year, and you still feel you are a small ministry.
NO problem. The
principles still apply.
A second definition has to do
with large gifts. In
fundraising circles a small gift is defined as any amount under $200
given annually to an organization from an individual.
A large gift is between $200-$1000 annually, and a major gift
is $1000 or more.
A gift in the range of
$300-$600 per year from an individual is a large gift.
There are hundreds of small ministries who can secure
hundreds of these kinds of gifts from families if the right approach
is used.
Finally, we must define the
average family. In most
areas, family incomes of $25,000-$45,000 per year typify this
classification of potential donor.
Our firm is convinced that this group is the bread and butter
future for your organization. They
are the people who will give you time and talent in addition to
money. There will be a
few future big donors in this group.
If their loyalties are garnered for your organization at this
time, it will pay rich rewards over the next 20 years.
These families can commit
$25-$50 a month to your organization for a three to five year period
and provide the solid financial base you need for growth.
In addition, each of these families knows10 to 15 other
families who are in similar circumstances who would also listen to
your story. The volume
of donors available from this income range of Christian families is
unbelievably large.
It isn't customary for most
para-church ministries to seek these families for large gifts. Most organizations
head for the town’s list of the 40 best known Christian business
and professional leaders. These
people were overworked long ago.
I want to encourage you to go
to a layer of the Christian community that is rarely talked to face
to face for giving to any cause other than their church.
The following 12 ingredients
are necessary for small ministries to raise large gifts from
families of average income.
1.
An attitude that fundraising is the ministry of developing a
stewardship in the lives of God's people is paramount to your
success. If you are a
person of integrity, you aren't likely to challenge a person to
generous giving unless you feel it is in their best interest. This
understanding on your part comes from adequate knowledge of the
Bible's perspective on fundraising.
2.
Determination is 90 percent of success.
I have seen Christian leaders with no fundraising skills
become very successful in raising money because they had
determination coupled with a strong sense of ministry about the
task.
3.
Discipline is required to implement any plan.
For many of us, the job of asking others to give generously
is at first somewhat difficult.
Discipline is the element that helps us do what is difficult
because we have determined it is important.
The more we talk with people about giving and see their
enthusiastic response, the easier it becomes.
4.
A key element in a family deciding to give generously is the
person who is doing the asking.
Your friends will listen to your story because they care
about you. Their
friends will listen to their story about your ministry because there
is mutual respect and love in that relationship.
The key to raising large gifts from average families is to
continually rely on relationships to open the door for the
presentation.
5.
The person-to-person approach is what it takes to stimulate
generous giving from individuals.
Writing letters or holding group meetings won't encourage the
same level of giving as will a personal conversation around the
dining room table with a husband and wife.
This setting provides for dialogue, answers to questions, and
the ability to tailor the presentation to the interests and needs of
the potential donor. There
are no short cuts to raising large and major gifts. For the most part, it must be done person to person.
6.
The need to which your organization is responding must be
clearly articulated. Remember,
the need isn't for a new horse barn, tents for a teepee village, or
canoes for the waterfront. The
need is a reflection of the needs of the people to whom you
minister.
7.
By sharing real life stories and the dreams you have for
touching many more lives in the future,
you are setting the stage for an emotional response from the
prospective donor. This is necessary if they are to make a significant financial
commitment.
8.
This isn't to suggest that we manipulate people by using
their emotions. But few
people make decisions of real value without their emotions becoming
involved. This is the
way God has made all of us. Learn
to tell stories about the real needs of people to whom you minister.
Make sure the stories are representative and not isolated
incidents. We must have
integrity above all else.
9.
Provide solutions that will address the needs you have
outlined above. Even
putting in a new sewer line can be creatively linked to the number
of people you hope to minister to in the years ahead.
Don't get trapped into selling a foot of sewer line.
Sell people's lives, and then say, "By the way, we won't
be able to provide this type of ministry unless we meet the state
requirements for our new sewer system."
Donors have good minds.
They can make the connection between the practical needs of
your organization and the emotional side of the ministry if you
creatively link the two to your story.
10.
Outline the total cost of the projects required for the next
three to five years. Explain
that it will take a certain number of families giving $1000 over a
three year period, a smaller group at $2000, a smaller group yet at
$3000 and so on. The
top gift you request should be at least 10 percent of the total
amount needed over three years.
11.
Families of average income should be able to give in the area
of 2 percent of their annual income to the project.
They may do less, or they may do more.
This is in the range of what many families can handle.
This means that a family with an income of $25,000 per year
could make a $30 per month pledge if they are firmly committed to
your cause. Over a
three year period this will be a gift in excess of $1000.
This is a large gift for almost any ministry, and the
multi-year commitment makes it a cost effective gift for you to
raise even with the personal approach that is required.
Many families of average income will be able to commit
$50-$75 per month for a three to five year period, and your
fundraising costs will be even lower.
12.
Learn to ask. In
order to receive these gifts, a thorough presentation of the
organization's ministry and your future goals is needed.
But one thing must not be left out.
Asking. You have probably had the experience of having a conversation
with someone about your organization's needs, and you sense that
they might be open to help, but you need to ask.
In fact, it is now two years later, and they still haven't
made a commitment. You
still haven't asked. That
is what happens when we don't ask.
After presenting your case to a prospective donor say,
"Now that you have heard our story would you be open to sharing
financially in our organization's ministry?" Wait for
"yes" or "no."
Many times the donor will offer a list of other times that
are absorbing financial resources at the time.
That isn't a no. That
is the prospective donor telling you to give him or her some space.
When he has finished with these disclaimers simply say,
"I appreciate the other financial obligations you have.
I'm just wondering if you could do something toward this
project. Usually the
person will say, "well, I'm sure I can do something.
What did you have in mind?"
At this time, point to the range of gifts you have outlined
and encourage the person to consider an amount that would be
appropriate. It is
usually a good idea to state, "I'm not sure what you can do,
but I was hoping you would consider a gift in the range of $2000
over the next three years. This
will be approximately $55 per month if you choose to give monthly.
Is that an amount you could consider?" Often the prospective donor will require some time to discuss
this and think about it. It
is advisable to set a time, usually within two days, when you can
get back with the person to receive the final decision.
Several years ago, my wife and
I sent our two children to a Christian camp in the northwest.
The cost of the week for each child was $75.
I had learned that this represented approximately half the
cost to the camp for a full week of ministry to our children.
My wife and I made it a practice to send an extra $75 per
child in the form of a gift to the camp to cover that extra cost.
There are many parents who are
willing to contribute above the camp fees if they know the real cost
of providing the ministry to their children.
This is an educational process; it must be done tactfully and
in a motivational manner.
Most of these people won't give simply because you need the
money. They need to understand something of the ministry and then
see that the costs are justified on that basis.
In addition to the gifts we
sent to supplement the camper fees, we also made a $2000 per year
pledge to the camp. Why? Because we believed in the ministry and the direction it was
taking. Were we a
well-to-do family at the time?
No way! We fit
into the category of families just described.
You
have many families who feel the same way about your ministry.
Follow the above steps outlined here, and you will receive some
excellent results.
Source: Article from the Journal
of Christian Camping. Adapted for a book by Brian Kluth,
"Out of the Woods: Funding Christian Camps and Conference
Centers"
.
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ABOUT THE AUTHOR: Brian Kluth is a national and international speaker and writer
on Biblical generosity and financial matters.
He is also a church pastor and the founder of MAXIMUM Generosity, a public ministry dedicated to advancing Biblical generosity through inspirational preaching, leadership training seminars, writing, resources and the media. Brian’s written materials have been distributed to more than 350,000 Christian leaders in more than 100 countries .For additional materials or to contact Brian, email:
bk@kluth.org or visit:
www.kluth.org
