0 Go Fish: How to Catch (and Keep) Contributors Go Fish: How to Catch (and Keep) Contributors 1 Go Fish How to Catch Contributors And keep Nancy Bocskor 1 Go Fish: How to Catch (and Keep) Contributors Table of Contents 1 Fundraising 3 Three Basic Methods of Raising Money 3 Guidelines for Successful Fundraisers 5 The Finance Chair and Finance Committee 6 Set Goals for the Finance Committee Members 8 Quick Start Guide for Finance Committee Members 8 Personal Solicitation: How Much Time Should a Candidate Spend Raising Money? 9 Why Do People Donate To Campaigns? 13 What Does “Segmenting The Donor Universe” Mean? 15 2 Developing a Finance Plan 17 Winning Campaigns Follow This Three-Step Process: 17 Why Should I Have A Written Plan? 17 How Can I Project Fundraising Goals for My Campaign? 18 The Integral Components of a Finance Plan 19 Who Writes the Finance Plan and How? 21 3 Political Action Committees & Political Parties 22 How Can I Determine Which PACs Might Donate To My Campaign? 22 Information to Gather About Each PAC 22 Put Together A PAC Kit 23 Follow Up With Targeted PACs 25 How to Raise Political Party Money 26 4 Events 27 Advantages of Holding Fundraising Events 27 What Kinds of Events Should I Consider Hosting? 28 Use “Tiered” Events to Raise Even More Money 28 Should I Have A Speaker? 29 Recruiting Ticket Sellers – The Key to Successful Fundraising Events 29 What Advice Can I Give To Supporters Who Want To Host a Fundraising Event in Their Homes? 30 How Can I Build Attendance At My Event? 33 Generating Media Coverage 33 What to Do After the Event 34 5 Direct Mail Fundraising 35 The Three Types of Direct Mail 35 How Do I Reach Each Group? 36 Mix the Right Ingredients to Make a Successful Direct Mail Piece 37 What Are The Components of A Direct Mail Package? 38 What Kind of Postage Should I Use? 41 Who Should Sign My Fundraising Letters? 41 How Should I Track My Direct Mail? 41 2 Go Fish: How to Catch (and Keep) Contributors Test Your Fundraising Package 42 Evaluate Your Direct Mail Program. 43 6 Telemarketing 44 7 Digital Fundraising 45 Emails 45 Social Media 48 Mobile 50 Internet Advertising 51 Donation Pages 55 A Note about Non-Profits 56 Final Suggestions 57 Appendix A: 2015-2016 FEC Contribution Limits 60 Appendix B: Sample Campaign Income Worksheet 61 Appendix C: Sample Direct Mail Tracking Sheet 64 Appendix D: Sample Direct Mail Income Code List 65 Go Fish: How to Catch (and Keep) Contributors 3 1 Fundraising Money is usually the most critical resource of any campaign. Like it or not, campaigns can’t be successful unless sufficient attention is paid to fundraising. Enough money can help make up for lost time and/or lack of volunteers. As long as there are campaigns for public office, money must be raised to pay for them. What is the secret to successful fundraising? You have to ask people to contribute! In fact, studies show that the number one people don’t contribute to campaigns is that they aren’t asked. The number two reason? Potential contributors don’t know how much to give. So you must suggest a range of specific amounts, always remembering to “aim high and negotiate.” This book includes sections on the following topics: General Finance Personal Fundraising Committees Solicitation Guidelines Finance Plan, Political Action Budget, And Committees and Events Timeline Political Parties Development Digital Direct Mail Telemarketing Fundraising Three Basic Methods of Raising Money 1. Person-To-Person Includes personal solicitation of major donors and Political Action Committees (PACs). Person-to-person solicitation, by you and the members of your finance committee, is the most appropriate and best approach to use with major donors or high-dollar givers who comprise the “top” of your donor pyramid. This is the most cost-effective type of fundraising (refer to section on segmenting the donor universe). 2. Events Includes breakfasts, luncheons, dinners, receptions, silent auctions, birthday parties, barbecues, home parties, etc. This type of fundraising is the best method for reaching the mid-level donor. These contributors tend to want some value for their contribution. To be successful, events must be well 4 Go Fish: How to Catch (and Keep) Contributors organized to be sure that more money is raised than is spent. Always keep in mind that the reason you’re having an event is to produce net dollars. The goal is fundraising, not “fun-raising.” The difference between the two is the “d,” and that stands for dollars. 3. Direct Response (Mail and Phones) Includes reaching the broad base foundation of the potential donor population. Because of the time and expense involved, these low-donor contributors are best reached through direct mail and telemarketing techniques. These programs to cultivate the bottom of your donor pyramid take the most time to produce significant results. A contributor file and/or access to good lists are critical to having a profitable program. It’s important to have a plan to repeatedly send mail or make calls asking for money. Without such a file, direct response fundraising can be a very costly way to raise money. Direct mail and telemarketing programs can work, but they must be started early and implemented according to an ongoing structured schedule. You may be asking: how does my digital strategy fit into my overall finance plan? Keep in mind, although it’s growing, only about 10% of all funds are raised from digital fundraising – and it’s only that high because of high profile Presidential and U.S. Senate races. So I recommend that you use digital to enhance your other fundraising techniques: as a follow up to a direct mail piece (did you receive my letter?); to remind people about an upcoming event (will I see you on March 16th?); to communicate with major donors/donor clubs (special newsletter); and of course, personal email requests sent from your organization/campaign to your organically grown list. Go Fish: How to Catch (and Keep) Contributors 5 Guidelines for Successful Fundraisers Here are best practices to embrace: Ask • The best approach is the direct approach. Remember, the best way to get money is to ask For it, and the more people you ask, the more money you’re going to raise. Plan • Take time to develop a winning plan with goals and deadlines. Put it in writing. Be speciNic regarding amount • Tell potential contributors exactly how much you expect them to give. IF not, a potential donor may decline to give because he is aFraid he’ll give too much or too little. It’s better to ask for $50 and receive $25 than to ask for $25 when the donor might have been willing to give $50. Make repeated appeals • Give everyone every opportunity to contribute. And, once they have given, as them to contribute again and again. Do this until they can no longer afFord to give or they have reached the legal contribution limit. Create a sense of urgency • Express a critical need for a potential contributor’s inancial support and suggest time constrains. Be convincing and express how their contribution can make the diFFerence in your campaign and in their Future. Diversify fundraising techniques • Design your Fundraising eFForts to complement your political, organizational, and communication eFForts. Develop a broad Ninancial base and avoid depending solely on one method to raise all the money. A combination oF approaches works best. 6 Go Fish: How to Catch (and Keep) Contributors Research • The more inFormation you know about a potential donor, the more successFul your Fundraising eFForts will be. Did you go to the same university? The same church? The same community service club? Are you “Friends” on Facebook? Contacts on LinkedIn? InFormation is power, so you need to Google your potential major donors. Do your homework. Stick to proven methods • Design a Fundraising program by using methods that have worked in your district in the past. Be willing to introduce new ideas to the “tried and true” approaches, but don’t depend solely on unproven methods For your results. Get advice • Ask people Familiar with Fundraising, perhaps your state party Fundraiser or the best Fundraisers in your district, to help you develop a comprehensive Fundraising plan For your campaign. Conduct basic research and design a plan based on the needs oF your political plan and overall budget. Know the law • Read and understand the requirements oF your state and local election laws as they pertain to campaign Ninances. Above all else, obey these laws. Always say “thank you!” • Regardless oF the amount, always thank your contributors and make sure they Feel appreciated. Prompt acknowledgement in the Form oF personalized letters will help develop a habit oF regular giving among your contributors. When asked “why” they no longer give, the number one reason given - “I was never thanked.” Make your own contribution irst • A candidate’s contribution to the campaign shows potential contributors and others that the candidate seriously believes the race is winnable. Don’t expect people to make the Ninancial sacriNice and give iF you haven’t. You can loan your campaign money, but know your Ninancial limits - and stick to them. Use lattery • Potential donors tend to be busy, successFul and important people who like to be recognized. The Finance Chair and Finance Committee A strong fundraising team begins with a good finance chair. This person must be an aggressive, dynamic person who “likes” to ask for money and has the time to devote to the campaign.