Cover Story: Faith-based Fundraising

INTRODUCTION: Running on Faith

Nonprofits with missions based on religious foundations face special challenges, and the fact that they answer to the Higher Power can work both for an against them.

Faith is a powerful thing.It can heal and build, protect, empower, and carry on, no matter how dire the circumstances.

But perhaps the thing that faith does best, the thing it does as a precursor to all of the above, is motivate. It motivates people to do the things that lead to healing and to building, to protection, empowerment and perseverance, even when all seems lost. Faith doesn’t move mountains, but the faithful do.

And that is a very important distinction for faith-based organizations — nonprofits whose missions hinge on a belief in the Higher Power and the need for people to do good works in his/her/its name. If faith alone could build a house, feed a family, save a child or pay the electric bill at a parish church, there would be no need for organizations such as Habitat for Humanity, Food for the Poor, God’s Love We Deliver, YMCA and YMHA to devote any time or effort to development. My pastor wouldn’t have to pass the basket on Sunday mornings. The White House wouldn’t have an Office of Faith-based and Community Initiatives, and some of the folks who’ve written articles for this special section wouldn’t have jobs.

Certain factors — scandals that shook the sector to its core; a “separation of church and state” mentality that choked important funding sources; a clarion call for accountability, for example — might have led some organizations to downplay their “God connection” in the past. But the success of films such as The Passion of the Christ and books such as The Purpose-Driven Life and even those ubiquitous “What Would Jesus Do” bracelets are evidence that America is ready to embrace its spirituality again. We rediscovered our faith on Sept. 11, 2001, and it looks like we’re holding on to it.

The consensus seems to be that while it’s imperative for faith-based organizations to practice the best, most aggressive development techniques used by their more secular colleagues, it’s equally important for them to play to their unique strengths, which are rooted in the fact that many people see giving as a matter of faith, a matter of goodliness, a matter of godliness.

And these people can be reached and motivated on a much deeper level than less spiritually oriented donors.

Just as it takes little blue-haired ladies to run bake sales at my church to fund a new floor for the narthex, it takes donors of all levels to fund missions of all bents and campaigns of all sizes. It’s not often you see a major-gift check signed by God. But with the right mission, impeccable stewardship and an abiding respect for your donors’ beliefs, you might find that faith can, indeed, move mountains.

SECTION I: A Religious Ethic Perspective
By Michael O’Hurley-Pitts and M. Ansley Tucker

Faith communities, like any charitable organization, have both operational and capital funding needs. With the decline of worship attendance and diminished offerings, many faith communities have looked to secular fundraising practices to make ends meet. They have done so, however, without recognizing that amongst themselves there is a unique and powerful ethos that animates charitable giving.

Donors who have been steeped in a religious tradition give out of a sense of generous gratitude for what they themselves have, and because redistributing the blessings they have received is one way to bring about the will of God for the world. Judaism expresses this in the ethictikkun olam, which literally translated means to “repair a broken world.” Catechized donors give for two reasons: to express their gratitude and to make a difference.

This is not just pious rhetoric: We’re talking about fundamental attitudes which, if taken seriously, will turn conventional fundraising on its head. In brief, the religious fundraiser will focus less on how to get people to give (usually under the rubric of “motivating” donors) and more on why to give. They generally will have the advantage of working with lifelong givers — people for whom regular and generous giving already is a habit. Religious givers don’t need to be convinced that giving is a good thing. Nor do they need a crisis or a major project to open their wallets.

The focus on ways to give
Set this alongside the strong emphasis of many fundraisers on modes of giving. The assumption is that you have to make giving exciting, practical, enjoyable or just plain easy. To be sure, there is some truth to this. Consider how presidential hopeful Howard Dean’s use of the Internet to raise money transformed political fundraising in the 2004 election cycle.

One of the main reasons people turn to fundraisers is the expectation that they will develop and implement “better” modes of giving. Engaging new donors, although often a stated goal, receives secondary attention as long as more money is raised.

Inevitably, at the root of the quest to make fundraising as easy or painless as possible, one finds cynicism. The assumption is that people are either too lazy, too busy or too uncommitted to follow through. Similarly, the widespread practice of “indirect” giving — the golf tournament, the book of coupons, the raffle for a car — all proceed on the assumption that people are not naturally generous and will give only if there’s something in it for them.

It hardly needs to be said that, whether articulated or not, this view creates tensions between fundraisers and donors. It also has the unintended consequence of leaving the poor fundraiser to outdo last year’s gala or be considered a failure. Our fundraising practices have become so over-focused on fanfare that we risk alienating people if we can’t deliver bigger and better modes of fundraising each and every year.

Given what research indicates about the connection between generosity and personal involvement, it is profoundly counterintuitive to go about fundraising in a way that fails to actually engage the donor with the cause or organization. Studies show that those who give of their time and talent are more likely to give of their treasure as well. This only makes sense: A donor’s personal knowledge of the organization, and the people it serves, deepens the commitment and desire to help.

In this regard, one of the most troubling trends in the charitable sector is the loss of volunteer hours (according to Independent Sector, more than 26 million hours between 1995 and 2001, at a projected cost of $15.40 per volunteer hour.)1 Far from trying to make it easy for people to “get in and get out” with their donation, we should be trying to cultivate givers of time and talent as well.

More dollars, fewer donors
The perversity of focusing on modes of giving is exemplified in the philanthropic sector’s emphasis on major-gift campaigns.

While America has seen a steady increase in the number of charitable dollars raised each year, analysts finally have become alarmed at the sharp decline in the actual number of people who give those dollars. We should not expect that people who have not been called upon, for lack of apparent affluence, to make even a small gift will magically emerge in our moment of need as fully formed philanthropists.

There is wisdom in the Talmudic teaching that each gift we make prepares us for the next, more generous gift. Without a new generation of well-formed donors, the charitable sector faces an insurmountable challenge in fulfilling its mission. Sadly, we are inadvertently contributing to the decline of a charitable society.

Motivation vs. recognition
One strategy that comes into special focus in the context of many fundraising efforts is donor recognition. Gratitude is at the core of the religious life. Worship is thanksgiving. So is the offering of money that takes place in the context of weekly worship, for it is out of a posture of gratitude that one gives and gives “back” to God.

Within faith communities it is only right that we should find appropriate ways of expressing our appreciation to those who support the community’s mission. But when donor recognition ceases to be an expression of gratitude and becomes instead something that is “purchased” with one’s gift, an important line has been crossed.

A well-formed religious donor gives out of gratitude, not for gratitude. When large gifts are routinely made upon the execution of a “donor contract,” the gift ceases to be about the charitable cause and diverts attention to the donor. This kind of appeal to self-interest is antithetical to the religious impulse.

Donors of faith
A well-catechized and spiritually mature religious donor is fundamentally oriented toward the other. Such a person need not be enticed to give with self-addressed stamped envelopes, trinkets or honors. People of faith give in gratitude to God by sharing what God has entrusted to their care.

Such altruistic giving brings its own rewards, to be sure, but that does not mean it needs to be easy or painless. Giving is, by definition, costly.

Faith-based givers are not apologetic about this. Their sense of generosity is rooted in the belief that human beings are created in God’s image, and God, whom they see as the supreme donor, is thus to be emulated. Therefore, to give of oneself generously, joyously and sacrificially is, for the believer, theosis — a matter of living united with God. Generosity is “godly,” and godliness is the goal of human life. We give not just because someone else needs what we have, but because we need to be generous in order to be fully human.

Lest those involved in raising money for secular causes think that the values and motivation of religious donors is an interesting, but irrelevant, sidebar, it is worth remembering that statistics show that the vast majority of charitable dollars comes from people who attend worship services regularly. It can only help to understand the heart and values of one’s donors.

An ethic of generosity
Successful fundraising must be outwardly focused, especially in communities of faith. Here are some tips to consider:

1. Take personal involvement seriously, and cultivate it.

2. Write a fundraising plan that involves as many people as possible.

3. Encourage giving by everyone, each according to his or her ability.

4. Be sure the case statement indicates what difference the plan will make in the lives of others.

5. Focus on how the gift of time, talent or treasure will show gratitude for what one has, as opposed to serving the ego, tax bracket or other personal interests of the donor.

6. Ask donors to consider what their faith and core values call them to give, and not just how much they might give.

7. Be inclusive: Thank donors in a way that celebrates generosity over affluence. Fifty dollars from a struggling single mother deserves every bit the recognition as half a million from a business magnate.

8. Ensure that donor thanks and recognition serve to strengthen all donors in their common resolve and sense of ownership of a project, no matter what each donor gave. (Not only must communities outlive their donor programs; it is important to inculcate a widespread sense of commitment to any project that will have ongoing needs.)

9. Keep donors informed as to how their gifts are making a tangible difference in the lives of others. Regular updates, with pictures wherever possible, should accompany pledge reminders and donation receipt letters.

1 Cited by Michael O’Hurley-Pitts, The Passionate Steward: Recovering Christian Stewardship from Secular Fundraising (Toronto: St. Brigid Press, 2002), pp. 28-29.

The Reverend Canon M. Ansley Tucker is the associate academic dean of the Institute for Christian Studies in Toronto, Canada, and is the rector-designate of Christ [Episcopal] Church, Calgary. Michael O’Hurley-Pitts, Ph.D., is the senior consultant of Faith Matters Inc. and author of The Passionate Steward: Recovering Christian Stewardship from Secular Fundraising (St. Brigid Press, 2002).

SECTION II: Lighten Up on List Loyalty

Try a new tact: Political givers, magazine subscribers, etc., might be receptive to you faith-based appeal.
By Scott Faircloth

List selection remains the linchpin of any direct-mail campaign. You can have a great organization, an award-winning mail piece and top-notch marketing copy, but poor list selection will sink your efforts quicker than any other single factor.

Not surprisingly, this principle holds true for faith-based organizations, as well. But it’s important to note that these nonprofits have a unique set of circumstances that can greatly affect list selection. It doesn’t take a marketing genius to figure out that the gold-standard list for donor acquisition is other active donor files to faith-based organizations.

However, access to these files can be limited by a number of factors, including availability, mail-date issues, mandatory reciprocity and list-owner rejections. Any one of these factors can affect whether or not an organization can utilize a particular list.

A good list broker will help an organization navigate these often treacherous waters and locate some top-notch lists with relative ease. But most significant campaigns find it necessary to find some less obvious lists. While doing so requires some serious “outside the box” thinking, the effort is well worth it and often can be a blessing in disguise for the mailer. Often, carefully chosen lists can yield solid results. As with any direct-response acquisition, it is imperative that the organization test the lists before considering rollouts.

Political donor files
Often overlooked by faith-based organizations are lists of political donors. But these lists can be extremely beneficial if chosen correctly. For example, evangelical-oriented organizations have seen strong results for many years from conservative political files focusing on “family and moral” values. One only needs to look at the presidential election of 2004 to see the profound overlap between individuals motivated by (albeit nebulously defined) “moral values” and their subsequent political persuasion.

Faith-based subscriber files
Some of the best fundraising files for faith-based organizations can be magazine files. However, in lieu of pulling lifestyle data from large publications and similarly compiled files, look for publications targeted at specific demographic groups within the faith-based community. For example, if you’re looking for Christian women, expedience might dictate that you pull a gender select off of a large, all-encompassing donor file. Unfortunately, this often will lead to less than stellar results. Instead, locate a uniquely positioned magazine that will fulfill your needs. In this case, a magazine such as SpiritLed Woman could be a top performer, depending on the thrust of your appeal, of course.

Secular magazine files
From time to time, the target your organization is trying to reach will not be readily fulfilled from either a donor file or a targeted faith-based subscriber file. In this situation, it is advisable to choose a lifestyle select (such as “religious donor” or “Bible/devotional reader”) from a major subscriber file. Say, for example, that a Christian organization is seeking to reach sports fans. In this case, find a sports magazine that has a Bible/devotional or religious overlay. Often, initial results will be marginal, but the lifetime value of such donors can be eye opening.

Inactive donor files
Recency often is overrated when it comes to fundraising for faith-based organizations. Typically, in the list-rental world, recency is king and only the most recent records on a file should be utilized. However, when it comes to faith-based organizations, recency isn’t necessarily the main factor. The principle behind recency is that American consumers are notoriously finicky and their interests change — so utilizing the most recent donor data is a must.

While this is true when dealing with fashion or movies, etc., there is something more prescient about the faith-based donor. The donor that responded two years ago to the direct-mail piece of a Christian famine-relief organization is still a strong prospect for similar appeals today. And more often than not, the costs of such lists will be on the low end of your projections.

Product buyer lists
The past decade has seen an explosion in the sales of faith-based merchandise including books, music, DVDs and other similar products. A quick perusal of the New York Times best-seller list shows numerous faith-based books outselling their more mainstream counterparts. Likewise, Christian and other faith-based musicians have outsold their peers by millions of records. And keep in mind that it was by and large the faith-based community that fueled the success of The Passion of the Christ, helping it gross more than $300 million dollars at the box office in the United States alone.

As a result, traditionally secular companies have taken notice and been quick to capitalize on this popularity of faith-based products. Book clubs, DVD clubs and CD/music clubs have popped up in recent years — all specifically targeting the faith-based community. In the process of selling hundreds of millions of dollars worth of this merchandise, these companies also have compiled exceptional files of Christians and other spiritually oriented consumers. These files can provide some of the most current data available on this key market — and this is essential for any faith-based organization.

‘Hidden’ lists
A list not readily known to be “on the market” isn’t necessarily unavailable. While industry resources such as SRDS, Nextmark and mIn are quite good, they’re not exhaustive by any means. For any number of reasons, there will be organizations that resist making it known publicly that their lists are available. But some of those lists are available and often will be the star performers in acquisition campaigns. A good list broker can help you in locating some of these gems.

Scott Faircloth is vice president of Response Unlimited Inc. He can be reached at scott@responseunlimited.com.

SECTION III: The Real World of Church Money

The Presbyterian Church of the United States recognizes the need for a systematic approach to development — and builds a ministry around it.
By Bob Sheldon

This might not be a popular thing to mention, but Jesus, it seems, talked about money all the time. So much so that, in the Bible, money is second only to the Kingdom of God as his topic of choice. A full half of the parables mention money.

Why is it then that church leaders — on national and parish levels alike — are so reluctant to talk about money? Whatever the reason, they need to get over it. When it comes to raising funds for faith-based groups — especially churches — there are some hardcore realities with which to contend.

1. Many faithful and generous supporters are going away. Older members are moving or dying and are being replaced by younger folks, who tend to be overextended financially and undereducated about authentic stewardship. They prefer to be “investors” rather than “givers,” wanting to know exactly where their money is going and how it’s going to be spent. The church isn’t used to these kinds of questions, so it rarely addresses them.

2. Most given by a few. We’ve all heard of the “80-20 principle,” that 80 percent of the work is done by 20 percent of the members. This principle also applies to giving and can be broken down another step: 10 percent of the members give at least half of the support. On the other end, at least a third of the members give nothing.

3. Get off your assets! The church talks about giving in terms of income, i.e., tithing or other proportional giving. But factors — an aging population, an expanding economy and more money to share — allow more people to give from their assets. Personal contact is the most effective way to help these “asset donors,” but we have few leaders who are willing to make the call.

4. The church isn’t ready. Many members are asking, “How can I be a better steward with what God has given me?” Yet the church remains silent. The usual order of events: People want to support the mission of the church; the church is uneasy talking about money; they give their money to someone else!

A special ministry
About eight years ago, the Presbyterian Church (USA) initiated a development program in four synods (regional governing bodies) to address these realities and experiment with new ways of helping members support their church. In essence, “A Ministry for People With Money” translates sound major-gifts principles from a theological perspective of generosity and gratitude. Translating was easy. The challenge was introducing them — and practicing them consistently.

Among the principles the program addresses:

• Stewardship is about more than money — but money is a good place to start. If we don’t teach our members about meaningful stewardship, society will fill the vacuum. We begin with grace, God’s unconditional love and care, given to all people in all times. The natural response is usually gratitude. Grace and gratitude can shape our understanding of everything — including money. Giving, like everything else, is a spiritual issue.

• Mission interpretation: We have something to support. Church members support a variety of charities, most with sophisticated fundraising strategies. So why give to the church? This is a question the church isn’t used to answering, but it is imperative to help our members remember how God’s assets are being used — and why it’s important.

• Financial development: the fertilizer and fruit of the spirit. In Romans 12:4-8, giving is named as a spiritual gift — between “exhortation” and “leadership.” One responsibility of the church’s leadership is to help its members make informed decisions about their giving, to be honest about money with its members and itself. By empowering individuals to support those ministries they value, we emphasize their freedom under God to decide and commit.

Rich people deserve special treatment. Actually, this is a trick question — because everyone deserves special treatment. It might be fairer to say that those with more capacity to give need more guidance in how to give it. Giving is a pastoral issue, and it is the church’s responsibility to encourage and empower its members to make informed decisions about their giving.

Four types of gifts
While most folks in the church only talk about the funds needed to support their annual budget, there actually are four types of gifts, and members need to be reminded about annual gifts; campaign gifts; special gifts; and deferred gifts.

Some people may ask, “If you give people so many options, won’t that hurt the annual fund campaign?” The truth is that it will — unless you’re honest with your members and clear about priorities: “The annual fund comes first; this is the foundation of everything we do. If you can make only one gift, give it here. Then, after you’ve given generously to the annual fund, we will provide countless options for your consideration. You should only support those that excite you. We will also work with you to tailor options to your particular situation. We are here to help you.”

Other considerations
Personal touch. This is a new concept for many in the church: to treat each person as an individual with unique abilities, interests and resources. Yet extending basic pastoral care to the area of giving can become normal and natural.

1. Identify people who would benefit from this ministry.
2. Nurture an honest relationship with them.
3. Understand their interests and values.
4. Research mission projects/programs that are consistent with their interests and values.
5. Invite support.
6. Say “thank you.”
7. Continue nurturing this relationship; this is a long-term ministry.

“Thank you” — the first step to the next gift. Almost ironically, the church is not good at saying “thank you.” As in many human relationships, it’s easy to forget to be grateful to those closest to us. Churches can and should use all of the usual thank-you techniques, including formal and informal notes, phone calls, visits, etc., so long as the program is systematic and intentional.

Leaders must lead. The primary factor in determining this ministry’s success is its leadership. Good leaders will create an atmosphere of openness and integrity, in which members are willing to risk honesty with themselves and each other. Likewise, don’t ask others to do what you won’t do yourself. The church goes the direction — and distance — of its leaders, so get them on board as donors and supporters early and often.

Enjoy your ministry!
As with any new ministry, we expected some initial resistance to “A Ministry for People With Money.” And we expected that some congregations would not be open or ready to enter into this type of ministry. Conflict within a congregation makes trust tough and raising money even tougher. It’s not perfect. Volunteers still make mistakes. Leaders sometimes forget to lead. Some people don’t want to do it because they haven’t envisioned its value. Others just refuse to talk about money.

What we didn’t expect was how much we would enjoy it. It’s fun to help people — especially with their money. In our culture, money is a private affair, so to talk about it with another person creates a new level of intimacy. Lives are being changed; people — and money — are making a difference in many exciting ways. Congregations are finding a new energy and depth as they share together and give together. And money is being raised to fund valuable ministry.

Bob Sheldon is the director of funds development, Synod of the Rocky Mountains, Presbyterian Church (USA). He can be reached at bob.sheldon@pcusa.org.

SECTION IV: The Special Challenges of Faith-based Fundraising
By Margaret Guellich

1. Accountability
Accountability is a serious challenge for all nonprofit organizations — but particularly for faith-based groups. While the government doesn’t necessarily require as much disclosure from faith-based organizations as donors do, these groups must self-disclose as they become more donor centered to meet the needs of 21st-century supporters.

All faith-based organizations pay the price for scandals arising from any of their peers. Events related to improper grantmaking, manipulative accounting and full-out misrepresentation can be tracked to the 1970s and earlier. Recent events involving the use of funds by faith-based organizations for legal costs have left the donor community with questions — particularly where major gifts are involved.

Even the smallest organizations — ministries that operate independently of their church affiliation but are supported by members of the church, for example — are under a more powerful microscope these days. Many of these groups have extremely small budgets that fall well below the legal limit for reporting. But because the organization is faith based, donors still require the same level of disclosure as from larger nonprofits.

2. Donor Trust
Donor trust in nonprofit organizations as a whole is lower than in 2001, an unfortunate situation that stems from recent scandals involving both secular and religious groups. Donor comments include skepticism about the use of funds and even the need for funds. When distrust for one faith-based organization means distrust for all, what is a reputable nonprofit to do?

Embrace the high road! Use self-disclosure and speak frankly with donors about the challenges faith-based organizations face. The outpouring of financial assistance after the Dec. 26 tsunami in South Asia was a turning point for donor trust and remains an inspiration to all fundraisers.

3. Competition
Many faith-based organizations, even those within the same denomination, compete with each other. Donors often confuse groups with similar names and might not understand that a gift to their local church might not be a gift to a church ministry. Parent churches frequently will not allow local ministries to borrow their mailing lists, and vice versa.

People give to a variety of causes that fulfill their need to do good. As faith-based organizations become less threatened by sharing their names within the same affiliation, competition will decrease and effectiveness will increase.

4. Donor Intent
Donors need assurance — and proof — that their gifts go where they intend them to go, and it’s not unheard of for donors to withdraw gifts if they don’t feel their needs have been met. More and more faith-based organizations will be challenged by donor intent and be required to fiscally demonstrate that intent was followed.

Organizations such as Doctors Without Borders, which stopped asking for donations for the tsunami crisis and instead communicated its other worldwide needs, are helping donors take a second look at organizational integrity.

5. Stewardship
The bottom line for faith-based organizations remains impeccable stewardship. These principles are built on love, care and trust. But it’s not enough for an organization to say it upholds them. Nonprofits of all types — but especially those that are faith based — must diligently provide donors with evidence that their money is being used appropriately. It’s not a matter of tooting your own horn, but rather a matter of transparency and accountability.

Margaret Guellich is the senior directorof development at the Virginia-based American Life League. She can be reached at mguellich@all.org.