CHAPTER 6: Resource Development Basics

Question 1

What is Resource Development?

Answer 1

Resource development is the broad
umbrella under which a variety of nongovernment funding sources are collected and pursued.

According to the Association of Fundraising Professionals (AFP) Online Dictionary, resource development is “the practice of identifying, cultivating, and securing financial and human support for an organization”

Question 2

Philanthropy is something to be proud of, and fundraising enables philanthropy

Answer 2

Philanthropy is the gift of time, talent, and resources—a voluntary act for the public good.

Pride in Giving: Donors give because they believe in a cause and see it as a privilege to create change.

Fundraising Enables Philanthropy: Ethical fundraising connects donor interests with organizational needs.

Fundraising should be seen as an opportunity, not a burden—presented with integrity and pride.

Question 3

Pyramid of Giving

Answer 3

The donor pyramid is a model that shows how organizations build relationships with donors, encouraging them to increase their involvement and level of giving over time.

It helps nonprofits plan fundraising strategies by showing how donors move from smaller, occasional gifts to larger, long-term commitments.

While donors traditionally start at the bottom and move up, some enter at higher levels (e.g., making major gifts right away).

The pyramid illustrates how different fundraising programs connect, from small donations to major gifts and planned giving.

Key Idea: The donor pyramid helps organizations understand how to engage donors at all levels and build lasting relationships.

Question 4

Pyramid of Giving (Visual)

Answer 4

This goes from bottom to top, the middle section is usually the hardest to work with or move from.

Annual Giving (Donor Contact): Support Group Organizations, Special Events, Annual Giving Campaign, Selected Publics, All the public; everyone in the area

• This section involves Info and Identification

Major Gifts (Donor Growth): Endowment Campaigns, Capital and Special Campaigns, Major gifts from individuals, corporations, and foundations.

• This section involves Interest and Involvement

Estate Planned and Endowment Giving (Donor Committment): Bequests and Other Planned Gifts

• This section involves Investment

Question 5

Annual Giving

Answer 5

Annual giving/gift is a donation expected to be given year after year.

Many organizations lack full funding for core costs (e.g., salaries, office supplies, utilities). Fundraising through annual gifts can be used to cover these expenses.

Renewing an existing donor is cheaper than acquiring a new one
because:
* Lower Marketing Costs – Organizations spend less on outreach, advertising, and persuasion since existing donors already have a relationship with them.
* Established Trust – Donors who have given before are more likely to give again, reducing the effort needed to convince them.
* Simpler Process – Renewals often require a simple reminder, while new donors need education, engagement, and multiple touchpoints.
* Higher Retention = Higher ROI – Retaining donors increase long-term revenue without constantly investing in new donor acquisition.

Therefore, an annual giving program should include a planned renewal system to be strategic and efficient.

Question 6

Channels for Annual Giving (Multi-channel Marketing)

Answer 6

Multi-Channel Marketing: Combines mail, digital, and telephone strategies. It also builds stronger connections by reaching donors through their preferred channels. More importantly, multi-channel marketing moves beyond traditional direct mail to integrated, data-driven fundraising (Direct Response).

Direct response involves data-driven marketing to test, implement, and modify campaigns. Common channels: mail, phone, TV/radio/print, web/email, and mobile/text.

How Often Should You Ask? More than once a year. WHY?
* Frequent appeals increase renewal rates.
* Donors give when it’s convenient or when an appeal resonates.
* Multiple gifts indicate stronger donor commitment

However, be donor-conscious. This means:
* Respect donor preferences (fewer mailings, preferred times).
* Offer monthly giving programs as an alternative.

Question 7

Channels for Annual Giving (Special Events)

Answer 7

Special Events help raise funds, awareness, and connections. They are not always cost-effective but can boost the organizational profile. Also, it is often more about “raising friends” than raising money.

Common fundraising special events include: runs/walks, gala dinners/balls, and online fundraisers (e.g., Ride to Conquer Cancer).

For special events to be successful, consider the following:
* Why are you having the event?
* Who is your audience?
* Who is responsible for what in terms of staff and volunteers?
* Have you planned?
* Do you have a budget?
* Does this event align with the organization’s mission?

Question 8

Channels for Annual Giving (Third-party Events)

Answer 8

Third-party events are organized by individuals or groups to raise money for a charity , and it allows supporters to actively engage in fundraising.

Why Are They Popular?
* Millennials & younger generations want to be involved.
* Helps charities expand their reach without high costs.

Important Considerations for Charities
* Have clear policies to protect the brand.
* Ensure the event aligns with organizational mission/values.

Question 9

Channels for Annual Giving (Phone Solicitation)

Answer 9

Why Use Phone Solicitation?
* Great for renewing & upgrading donors.
* Effective for membership associations & donor clubs.
* Useful for recapturing lapsed donors.

Best Practice: Combine mail + online + phone for better results

Challenges of Phone Solicitation
* Cold calls can be expensive & inefficient.
* Privacy concerns mean people avoid calls.
* Call display & voicemail reduce effectiveness.

Despite challenges, nonprofits raise millions via phone fundraising each year.

Question 10

Channels for Annual Giving (E-Philanthropy and Social Media Fundraising)

Answer 10

E- philanthropy involves using the internet to build relationships with donors & raise funds.
Websites provide key information for donors & promote giving.
* CanadaHelps.org has facilitated over $2 billion in donations.

Social Media’s Role in Fundraising
Platforms like Facebook, Twitter & Instagram help engage donors given that they are used to raise awareness & build donor loyalty.
It is also low-cost & highly effective for spreading fundraising campaigns.

Question 11

Channels for Annual Giving (Crowd Funding)

Answer 11

Crowdfunding
Crowdfunding is raising small donations from a large number of people. It is typically done via the internet (e.g., GoFundMe, Kickstarter).

Donation and reward-based crowdfunding totalled $5.5 billion in 2015.

The key to success with crowdfunding is a strong cause that resonates with people.

Question 12

Channels for Annual Giving (Face-to-Face (F2F)/Street Fundraising)

Answer 12

F2F Fundraising is done through in-person interactions on the street or in public places. It is popular among NGOs, universities & large charities.

It is common in Europe & Asia, and is growing in Canada.

Who Does It?
Young, well-trained fundraisers who engage passersby in meaningful conversations!

Question 13

Benefits of Annual Giving

Answer 13

• Provides a reliable annual funding base.
• Lays the foundation for other fundraising efforts.
• Supports operating & program needs not covered by other funds.
• Allows for flexible, undesignated gifts to be used where needed most.
• Attracts new donors with the potential for larger future gifts.
• Boosts the organization’s visibility in the community.

Question 14

Major and Special Giving

Answer 14

Major gift fundraising focuses on strategically identifying and cultivating donors with the potential to contribute significantly greater amounts to an organization.

Characteristics of major gifts include:
* They are typically one-time gifts as opposed to gifts that an organization can reasonably expect to receive annually.
* They are almost always designated, i.e., one that the donor is making for a specific purpose and the gift the nonprofit is morally obligated to use according to the donor’s intent.
* They can be made from cash or assets (gifts of appreciated securities, real estate, art).
* They are almost always the result of face-to-face cultivation and solicitation.
* They are generally in the top 10 to 20 percent of gifts received.

Question 15

Channels For Major Giving (Major Gift Program and Major Gift Campaign)

Answer 15

Major Gift Program:
* Ongoing process – continuously identifies and cultivates donors
* Matches donor interests with nonprofit needs
* Long-term strategy for securing large donations

Major Gift Campaign:
* Time-sensitive fundraising campaign
* Used for specific projects (e.g, new programs, research, expansion)
* Similar process but with a clear start and end date

Question 16

Channels For Major Giving (Capital Campaign)

Answer 16

Capital Campaigns:
* Focus on raising funds for physical infrastructure.
* Example: New buildings, hospital wings, renovations.
* It entails having an intensive, strategic effort with a clear fundraising goal.

Steps to a Successful Capital Campaign:
* Conduct a feasibility study (tests interest & willingness)
* Set a clear goal
* Engage donors & volunteers
* Execute a structured plan

Feasibility studies are usually done by external consultants to ensure objectivity.

Question 17

Channels For Major Giving (Endowment Giving)

Answer 17

An Endowment Fund is a selfsustaining funding source for long-term financial stability.
* Gifts invested are (stocks, bonds,etc.)
* Only interest is spent – the principal remains intact indefinitely

Why Endowment Giving Matters:
* Provides financial security for the future.
* Ensures a consistent stream of funding.
* Supports nonprofit goals without relying on yearly fundraising.