dataIdeal Non-Profit Fund Raising Tips

Did you ever consider using your computer and the internet connection that you already have and that you are probably already paying a monthly fee for, to phone friends, family and relatives abroad? Normal telephone rates for long distance calls can be very expensive and especially if you are calling countries that are one of the major industrialized ones.

If you would like your phone bill to much smaller or maybe even totally disappear then you really need to learn about the VoIP technology that already exists and are becoming more and more common due to the low cost (or even zero costs) and the high quality it provides. But first I will cover some basics with you about the technology with which you are able to phone using your computer and internet connection.

The 4 letter term 'VoIP? stands for Voice over Internet Protocol. It is a technology that has become public within the last 5-10 years and what it does is that it converts audio signals into small data fragments called packets. These packets are then sent to the person in the other end using the internet highway. When it arrives at its destination it is reassembled and transformed back into audio that the person in the other end can hear. It might sound a little bit strange but the process in not that different from sending emails to friends and relatives. An email is also transmitted through small packets sent over the internet at the speed of light. The great about this form of communication is that it is fast, reliable and very economic.

Why not switch to VoIP?

The most obvious reason for using VoIP is that it is definitely the way of the future. There are no standard telephone providers that are able to compete with the VoIP providers low prices if they are to use their old copper based systems. Even if they reduced their earnings and profit margins, their systems are just costly and ineffective to run, compared to the new VoIP technology. Using the internet protocols to send sound packages using the internet is an extremely cost effective way for the companies to provide the ability to make a phone call (long distance and short distance). The bottom line for you as the costumer will be that you are able to realize huge savings over your phone bills and especially if you are making many long distance phone calls.

A nice little feature that you might not have thought of is that with this technology you will now be able to receive local phone calls no matter where in the world you are located. You will even be able to have local phone numbers in places like New York, Moscow, Toronto, London and any place else in the world (where there is a supplier for this product). Now that would look cool on a business card.

So when you are on vacation in sunny Italy you can still receive a local call from e.g. US. Friends and family will be surprised when you tell them that you are not hope an that you are on the other side of the planet.

So many additional free options

As you would now be using a computer you have all the advantages of that. Most VoIP companies delivers standard packages that include: answering machines, show caller ID, voice mail option, video conferencing and many more.

Skype ? The Favorite Tool

If you haven't heard of Skype you haven't been reading enough newspapers. Skype is a small piece of software that was developed by two young Scandinavian men. Not to long ago it was bought by Ebay and they both made fortunes.

Skype provides a piece of software that you download to your computer. To be able to call someone else for free, the other person has to have the Skype installed as well prior to be receiving the call. Skype is 100% free to download and you are only charged if you would like to take advantage of some of the extra options that are available (voice mail, video conferencing etc.).

A few years ago they also developed the concept of 'Skype Out?, which offers you the possibility to contact any telephone line, without needing the end user to have the basic program installed. All they would need is a phone and a phone number.

A few of the other companies that you could benefit from knowing are Vontage, Packet 8 and Sun Rocket. You can probably find many other great companies but be sure to do your research if you are not using one of the larger providers. Talk to people that have already used the smaller providers? services to see whether they are happy with it.

Some non-profit organizations should not use direct mail as a way to attract new donors. Is your organization one of them? Take this simple test and find out.

Test #1: Are you well known to many people?
The average response rate for a direct mail donor acquisition mailing is 1%. Which means you must mail 100 letters to acquire 1 donor. And mail 10,000 letters to acquire 100 donors. And mail 100,000 letters to acquire 1,000 donors. This is the unavoidable math of direct mail fundraising.

So direct mail is not the best donor acquisition tool for you if you are located in a small town that has a small pool of potential donors, or if your organization is unknown. To succeed at direct mail donor acquisition, your organization needs to have broad name recognition, or, if you are new, have a founder with broad name recognition.

Test #2: Do you meet a pressing need?
To attract new donors with fundraising letters, your organization needs to have a compelling case for support. Many non-profit organizations serve a constituency that is either too small or too obscure to appeal to many donors.

The Moose Jaw Amateur Radio Club, for example, is a fine organization, I'm sure. But they do not meet a pressing need. Heart disease is a pressing need. Global warming is a pressing need. And drunk driving. And diabetes. To succeed at direct mail donor acquisition, your organization must meet a basic, urgent, human need.

Test #3: Will you pass a search on Google?
If you have no track record, no annual report, no audited statements and no way of proving that you are financially responsible, ethical and trustworthy, now is not the right time to try acquiring donors through direct mail. To succeed at direct mail donor acquisition, your organization needs public proof that you are credible, preferably going back many years.

Test #4: Are potential donors easy to find cost- effectively?
On occasion I have helped a small, evangelical adoption agency raise funds. They do terrific work finding loving homes for babies that would otherwise be aborted. My wife and I adopted two boys through this agency. As you can imagine, the majority of their donors have been touched by adoption in one way or another. Most Canadians have not. Which is why this organization does not use direct mail as a way to acquire new donors. They don't have a pool of potential donors that's easy to find.

So they rely instead on word of mouth, special events and relationship-building. To succeed at direct mail donor acquisition, your organization needs what Lautman & Company calls 'a natural constituency.?

The terms fundraising and fund development are bantered about almost interchangeably. But, there is a difference. Here's my attempt at an explanation.

Fundraising is probably the easiest of the two terms to define. It is activity that is conducted with the intention of raising money for a nonprofit organization or charity. It usually involves asking people for donations, using a variety of communication methods, asking people to purchase a product or service that supports the charity, or having people participate in an event of some sort. Some extend the definition of fundraising to include activities like sponsorship sales, which is essentially a form of advertising, gaming and gambling activities that benefit charity, and application for funds from government programs.

Fund development is a bit less straight-forward and a bit more of an abstract concept. The way I think of fund development is the process by which organizations use fundraising to build capacity and sustainability. Fund development is a part of the strategic marketing of a nonprofit organization. It is the concerned not only with raising money, but doing so in a way that develops reliable sources of income that will sustain the organization through the realization of its long term mission and vision. Fund development usually involves building relationships with people and other organizations that will support the charity. It requires a strategic plan that relates funding to the purpose and programs of the organization. A part of the strategic plan will be a fund development plan that coordinates various forms of fundraising, marketing, communications, and volunteer management.

There are various ways of categorizing nonprofit organizations and charities. When it comes to determining which require fund development strategies, as opposed to fundraising, I tend to think in terms of three categories. There are organizations that do not concern themselves with development because the membership keeps changing, the goal for fundraising is almost always to meet the immediate needs of the members, and the infrastructure costs are supplied by a larger, affiliated organization. Church youth groups, bands, cheerleading squads, and sports teams, and so on, fit into this category. Participants in these groups are usually involved for a few years, so typically no long term relationships with people outside the group are established, their is no incentive for members to fundraise beyond their immediate needs and they are usually affiliated with larger groups, like schools or churches, which supply needs like meeting space and leadership. These types of groups typically engage in fundraising activities that require minimal organization, leverage volunteer participation and require simple communication strategies.

A second type of organization is primarily member based. Funds are raised from among the members themselves for the purpose of sustaining the organization's needs, which are usually a building or meeting space of some sort and staff. The money required may be in the form of fees paid to belong to the organization, as in the case of a professional association, or in the form of donations, as in the case of a church. These organizations have a built-in fund development strategy. The supporters of the organization are the recipients of the organization's programs and services. So the strategy for sustaining the organization and building its capacity usually revolves around the members themselves organizing in a way that provides trust of the leadership to spend funds wisely, communication about how funds are being used, involvement of the membership in budgeting and other decision making processes, and a strategy to build and rejuvenate the membership.

The third type of organization potentially describes the rest of the nonprofit and charitable world. This is the organization that serves the entire community or society in some way. It has a long term vision and strategic plan and requires funding to maintain its service to the community year after year. Sometimes organizations like this have a base of government support, but often must raise funds from a variety of sources to maintain their budgets. This type of organization must have a fund development strategy in place to ensure its long term viability and build its capacity over time. The methods of fundraising it uses may be similar to the other organizations described above, the difference being that underlying its choice of fundraising methods will be the desire to build sustainable relationships with all funding sources.

A key decision an organization must make is what type of fundraising or fund development strategy it should use based on the type of organization it is and if it has long-term needs. Many organizations start with meeting their needs through short-term fundraising strategies and at some point must make the transition to fund development strategies. Otherwise, they will flounder, moving from one fundraiser to another without developing sustainable relationships.