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CAPITAL FUND-RAISING By John D. (“Jack”) Telfer, Executive Director, Marion County Historical Society Local History Notebook, January / February 1992 Fund-raising is serious business but it can be fun. Successful fund-raising efforts often turn out to be enjoyable for everyone who participates: the institution that benefits, the solicitor who achieves a goal, the giver who makes a worthwhile contribution. On the other hand, well meant efforts often fail due to problems which could have been avoided, problems such as lack of preparation or the setting of unrealistic goals. Then, it is not so much fun. So, how do we have fun fund-raising? First, please note that the observations herein relate primarily to fund-raising for capital improvements. They are based on the author's own experience with a number of campaigns. Particular reference is made to the Marion County Historical Society's capital fund drive for its recently acquired museum headquarters. Fund-raising for capital improvements differs in some ways from fund-raising for support of day to day operations or fund-raising for major acquisitions or fund-raising for the development of new exhibits and programs. Different approaches are taken in background research; writing of text; development of the package of graphic materials; enlistment of support from the news media; personal contact with potential donors by officers, staff, and volunteers; and follow through. Nonetheless, some of the principles discussed here with reference to capital fundraising can also be applied to fund-raising in general.The Goal or Goals Every fund-raising effort should have a clearly defined goal or set of goals. The effort should be placed in context with the present condition of the organization and with the organization's history. This will help to involve your traditional support group. You will need a name, or label, for the fund-raising effort. If you were going to raise money for an organ, you might logically call it "The Organ Fund." If you were going to raise funds for several purposes, you might give labels to each of them. The drive to raise money for the Marion County Historical Society's purchase and adaptive reuse of the historic former U.S. Post Office in Marion included soliciting funds to buy the building (the "Purchase Fund") and funds to convert it into usable museum space (the "Transformation Fund"). You may also need names for key elements in your fund-raising program. After consultation with members of the Society, the Marion County Historical Society's board of trustees chose the name "Heritage Hall" for the former post office building. Immediately, the Society registered the name with the Ohio Secretary of State as a trademark to protect the Society's future investments in signage and publications.These names are all relatively short and simple, mindful of the acronym KISS ("Keep it simple, stupid!") and readily understood by potential donors. Setting the financial goal is probably the single most important part of the goals process. Obviously, the funds raised need to be sufficient to cover anticipated expenditures, but the funding goals also need to be realistic in terms of other announced or current drives in the community (including the annual United Way campaign) and in terms of the amounts of "old" money (money from established family fortunes) and "new" money (corporate funding) that may be available to support the kinds of programs you have in mind. Summary reports of recent fund drives, showing percentages of various goals achieved and breakdowns of sizes of gifts, may be helpful in this effort. Capital projects may require planning inputs of architects, engineers, and other professionals so that you can develop realistic budget goals. Thus, costs may be accrued up front even before the first dollar is received. Donated services may also be available in your community that can support your fund-raising effort. The year the Marion County Historical Society purchased Heritage Hall, the Marion Sales Ad Club chose the Society for its non-paying client of the year. The Sales Ad Club made several suggestions which were incorporated into the program and the club assembled the text and graphics for the Society's fund-raising documents. Goal setting, like all of the stages in the development of the program, should have the approval of the organization's board of trustees.Organizing for Fund Raising A major fund-raising campaign is often best mounted employing a multi-faceted approach, with one type of campaign utilized to reach the small number of potentially large donors and another to reach the large number of persons who might have an interest in making a relatively small donation. The Marion County Historical Society used this two-track approach for its "Transformation Fund" effort. We offered a few potentially large donors the opportunity to underwrite the refurbishing of a specific section of Heritage Hall with a plaque to be placed in the location naming them as benefactor. We made appointments for personal calls to reach these people in their offices or homes. To the large number of people who might be willing to make a small donation we offered personalized bricks at $50. We used mass mailings and mass distribution of information sheets and publicity through the local media for this part of the campaign.The Campaign for Large Donations In preparation for our appointments with potential large donors (mostly corporations), we put together a four-page 8 1/2" x 11" leaflet describing the Society's plans for Heritage Hall and outlining the mechanics of the "Transformation Fund" major donation program. The text asked the prospect to sponsor an area of Heritage Hall, with one half of the donation to be used to complete the project selected and the other half to be used by the Transformation Fund for improvements to the building including utilities, air conditioning, interior painting, furnishings, and a security system. Floor plans for the two levels of the museum illustrated the planned use of space and each of the major areas was described in detail. A brief history of the Marion County Historical Society was included or the last page. We printed on the same paper stock, and using the same typestyle and graphics, twelve insert sheets for use in conjunction with the leaflet. One or two projects, together with a cost figure, were described on each sheet. Altogether, twenty projects were outlined. When an appointment was made with a prospective major donor we inserted two or three project sheets in the leaflet we would give to our prospect. We selected the projects to propose to each prospect based on our knowledge of the organization's or individual's interests and our estimate of the likely giving range. For example, we might approach one prospect with sheets for the $30,000 Library/Reading Room project and the $45,000 Main Lobby project. In several instances, the donor chose the higher cost project or indicated an interest in taking on an even higher cost project than the ones proposed.We offered the donor permanent recognition of his gift by means of a bronze plaque to be mounted in the project area being underwritten and immediate recognition through publicity in local newspapers and on radio stations in the area. Major pledges could be paid over three years, if desired, and contributions were tax deductible as the Society is a nonprofit organization under the Internal Revenue Code, Section 501(c)(3). Selecting a Fund Drive Committee to Contact Major Givers The organizing process should include choosing a fund drive committee that will contact major donors. This committee should include some of the members of the board of trustees and some other members of the organization who possess two important qualifications. One, they need to be comfortable talking with people in positions of power and well off financially, and, two, they should enjoy doing it. It is also helpful to have as members of the committee individuals who can help the committee identify potential major gift prospects in the community. A committee chairman should be selected to spearhead the campaign. Ideally this person will possess the above qualifications in the highest degree and will be able to devote considerable time to contacting prospects and assisting other members of the committee with their contacts. He or she should also work very closely with the organization's board president, treasurer, and executive director, communicating the progress of the effort and enlisting whatever support might be needed in talking with prospects. Eight persons were named to the fund drive committee for the Marion County Historical Society Transformation Fund major gift campaign. The committee drew up a list of prospects, made estimates of each prospect's potential level of giving, assigned an individual committee member or members to make the initial contact with each prospect, made the contacts, reported the results, and assisted in coordinating further contacts.Solicitation and Follow-Up In taking on the task of contacting specific prospects, committee members also commit themselves to undertaking research on the financial resources, personal interests, and prior philanthropic record of each prospect. With as much of this kind of information as can be obtained in hand, the committee member is ready to initiate contact. At the major gift level, the attempt should be made to arrange an appointment for a personal visit with the prospect by the committee member or members handling the solicitation. The purpose of the visit should be described briefly with details left to be discussed during the meeting. At the meeting, in addition to describing the program and presenting the leaflet and insert sheets described above, the Marion County campaign solicitors extended to each prospect an invitation to visit the museum site for a personally conducted tour. Whenever agreeable to the prospect, a specific time was arranged for the tour. The leaflet and inserts were left with the prospect. Follow-up varied according to each prospect's response to the initial personal solicitation. In one or two instances, owing principally to the rapport which already existed between solicitor and prospect, the deal was closed favorably at the first meeting. Most of the prospects who agreed to tour the facility ended up making a contribution. Generally, the number of contacts necessary to reach a favorable conclusion ranged between two and five. As the Heritage Hall major gift campaign progressed, one of the members of the committee, a distinguished, enthusiastic, longtime member of the community, who possessed considerable fund-raising experience in the community, emerged as a very important part of the process, making, together with the executive director, a majority of the calls and arrangements with major donors. He knew many of his prospects well, had raised funds from some of them before in other campaigns, was a major contributor himself, and was highly motivated to see the campaign through to success because the new facility would house a permanent exhibit in which he had a personal interest. He enjoyed the challenge. He had fun doing the job. Twenty months into the campaign, corporations and individuals have pledged more than 65% of the $800,000 goal for major gifts.The Campaign for Small Donations A key element of our entire fund-raising plan was to grant permanent recognition to our donors. The concept of having donors purchase individual bricks that would be imprinted with their names and laid in the walls of the corridors on the lower level of the museum seemed to meet this requirement very well. It fit in with the name we had given the building, Heritage Hall. The bricks could be made right in Marion County of Marion County shale by the Glen-Gery Brick Company. At $50 for each brick, $40 could be allocated to the Transformation Fund and $10 to the production of the bricks and construction of the walls. Together with the Ad Sales Club we developed a two page flyer. The first page, headlined "Your Name Forever" and illustrated by a photograph of a brick with 'Your Name Forever" inscribed on it, described how benefactors could purchase bricks to memorialize family names, ancestors, organizations, or service clubs. The copy mentioned that a permanent alphabetized record would be maintained so that anyone could easily find the location of a particular brick at anytime in the future. The second page was an application form with mock-ups of double-line and single-line bricks on which donors could write the legends they wished inscribed (twelve characters to a line including spaces). A large number of these flyers were printed and distributed at Society meetings, meetings of other organizations, through business outlets of companies that supported the campaign, at community events, and at the museum. More than 1,200 bricks have been sold, producing income of $60,000, with $48,000 going into the Transformation Fund. This will be an ongoing project.Publicity Nearly every fund-raising campaign needs an effective publicity program. A press conference launching the campaign, news releases announcing major gifts and reporting campaign progress, will bring the first word of the fund-raising effort to many people and will confirm in their own minds the good judgment of contributors. For its Heritage Hall program, the Marion County Historical Society held an introductory press conference at the museum site. We invited representatives from all the local and nearby newspapers and radio and television stations to attend. The president of the board of trustees made introductory remarks, the chairman of the fund drive committee made a slide presentation outlining the Society's plans for refurbishing the building and the manner in which major contributors might underwrite the work in specific areas, and the executive director described the personalized brick program. All of the material presented was covered in news releases given to the media representatives at the press conference. Whenever possible when sending news releases to the media reporting on major contributions, we included photographs of the donors presenting checks or standing in the areas they were underwriting. As a result of the strong introductory and continuing publicity effort, we were able to count more than forty-five substantive newsprint articles or broadcast media mentions during the first three months of the campaign.Administrative Support Forms should be developed for recording pledges of major gifts, with a duplicate copy for the giver. Records need to be kept of the payment schedule for each major donation and reminder notices sent to the contributor in advance of each payment due date. Computers can be helpful in accomplishing these tasks. Additional Observations and Summary Planning thoroughly every facet of the campaign well in advance of the start date will make it possible for those involved in the drive to concentrate on the task at hand once the campaign is under way. It is important to be able to keep the ball rolling so that prospective donors and those already committed can see real progress. In all likelihood, the numerous contacts made with major givers and with the general public in the course of the campaign will bring increased numbers of donations of artifacts and documents for collections. The Marion County Historical Society received more donations of items for its collections during a few months of its fund-raising campaign than it had obtained in all of the ten years prior to the campaign. A positive attitude, good friends in the right places, and a little bit of luck will all help, but the key ingredients for success in capital fund-raising for historical societies and museums are good causes, good communications, and recognizable donor benefits.Additional Reading Jeffrey E. Smith. "Fund Raising for Beginners." Local History Notebook #13, The Local Historian, vol. 3, no. 1, March/April 1987. The Local History Notebook is edited and published by the Ohio Historical Society's Local History Office in order to bring useful information to people working in the local history field. The selections of subjects and authors is based on the OAHSM Editorial Board's and the Local History Office's determination of issues which are timely in nature and lasting in scope. The reference inserts are copyrighted 1992 by the Ohio Historical Society. Reprints are available; please specify volume and number. For further information, contact: Local History OfficeOhio Historical Society 1982 Velma Avenue Columbus, Ohio 43211 Phone: (614) 297-2340 Toll-free: (800) 858-6878 Fax: (614) 297-2318 oahsm@ohiohistory.org 
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