Fundraising

Building a Database for Fundraising One of the most important tasks in the beginning of a campaign is gathering potential donor lists and building a donor database for fundraising and communications. Building a Database for Fundraising

One of the most important tasks in the beginning of a campaign is gathering potential donor lists and building a donor database for fundraising and communications. It is a time consuming task that campaigns usually piece together as they go along. Doing solid research on which lists to gather and then gathering biographical information on the individuals in the lists are very important steps. This should be one of the campaign’s first goals. Once the lists are gathered, they should be database for future editing and for use in fundraising and communications.

I will offer some advice on building a donor database, using a federal election campaign as an example.

Potential donor lists are the foundation of the fundraising effort, period. These lists can mean the success or failure of your entire effort. Gathering the lists and putting them into usable formats at one time saves time and money.

The so-called “circle of friends” is the most important list to put together. Start here, because this is a time consuming effort. The candidate must sit down and write all the names of his or her family, friends and colleagues who could potentially contribute. Then the candidate or staff gets the info into an Excel file.

If you’re new to this, be sure to include these key fields in your file: first and last name, title, organization, employer, occupation, address, state, postcode, phone, e-mail and fax number. Also, include fields for other notes and biographical info. And be sure to add fields for donor history information and the ask amount to contribute or rise.

A second source of donor lists is from previous state-wide and local campaigns. Lists can be gathered by simply asking elected officials and previous candidates for them. In some cases, state and local candidates have lists that are public.

Once the campaign has gathered all the lists, it should try to determine whether it is complete. By complete, our firm likes to feel confident that our lists include roughly 80 percent to 90 percent of potential donors.

The third source of donor lists can come from fundraising firms themselves. Asia Pacific Political Resources, for example, has more than tens of thousands of high-dollar, low-dollar and “netizen” donors available from all states and terrorities.

Purchasing software to manage the newly built donor database is a very important decision.

The software let us easily make updated call sheets, mail information, track contributions, prepare and file FEC reports, and target potential donors with e-communications.

The next step is to gather as much biographical information about a potential donor as possible. When the candidate knows the audience, it helps build a relationship faster and makes the candidate a better seller. Biographical donor research is a time consuming process but it pays off in the end.

Also, having a professional donor call sheet is very important. All professional fundraising firms have a donor call sheet ready for candidate calling.

Have your database firm print all the donors onto call sheets in order of priorities. Before the donor call sheets are printed, the potential donors are targeted in order. Since the donor history information is available, print that onto the call sheet as well. Why is targeting and having the contribution history of a donor important? The answer is easy. First, the campaign can target the “circle of friends,” followed by wealthy donors, individual donors who have given multiple high-dollar contributions, and so on.

Now that the potential donor database has been built, researched and targeted, the campaign and candidate can start communicating with potential donors through phone calls, direct mail, e-mails and text messages. And the candidate will start calling potential donors with the confidence of knowing his or her potential donors are the most likely donors for the campaign.

A political candidate’s fundraising message to a potential contributor is crucial. It will determine whether the contributor will or will not donate to the campaign.

There is the usual five-minute fundraising call pitch: “Hi my name is…and I am calling you today about my campaign for North Sydney. I am running for Parliament because… My background is…. I believe in issues x, y and z. Can I count on a contribution of $500 for my campaign for North Sydney?”

A political candidate’s fundraising message to a potential contributor is crucial. It will determine whether the contributor will or will not donate to the campaign.

Then the candidate answers any questions the potential contributor might have.

This is the normal pitch of any candidate, basically focusing on why he or she is running and asking for a specific amount of money. The problem is regular contributors have heard every pitch possible from other candidates. The way to separate your candidacy from the pack is with a compelling personal story.

“Why did the candidate get involved in politics in the first place?” “What drives the candidate to serve?” Combining the candidate’s personal story with the normal pitch is absolutely more effective then with the normal pitch alone.

Obviously, the use of issues can also motivate a potential contributor to donate. For example, when the candidate is speaking with a solicitor he or she would likely add, “I’m for law reform!” But after that, what could get potential contributor to get even more motivated? This involves the candidate’s own story. Every candidate has one and it should be worked on and refined so it can be told in an interesting and appealing way.

Political fundraising online is hot!! Statistics show that online constituents are 4 times more likely to be politically motivated than the general public and contribute online 3 times higher. Online contributors to political campaigns are predominately male, highly educated and earn a high income.

Online political fundraising is enjoying success and rapid growth. That’s why you need to be sure that your campaign takes advantage of this great tool. But, be sure that you do it right. Here’s what you should look for.

There is no shortage of vendors that provide electronic payment transaction services. Most charge set-up fees to initiate your account, monthly banking charges, a fee for each transaction, merchant account charges and even security fees. Plus, most all vendors supply only a payment transaction service.

The campaign should look for a service that eliminates the set-up fees, security fees or merchant account fees. A basic check list for a campaign should include: simple application, ease in receiving merchant account number and the ability to accept all major credit cards purchases. The campaign should find out the transaction fee applied to all donations.

Bells and Whistles Customized For Political Campaigns.

There are many additional features that a campaign should check out. Does the package enable you to provide real-time receipts to donors; provide you with the ability to inventory and sell items at various price points; and most importantly, enable you to set campaign donor limits in accordance with local and state election laws? Plus, the campaign should check if they have access to complete donor records that can be downloadable.

Look for a vendor that offers event registration. This will allow you to sell tickets to dinners, dances and other important events and fundraising activities. You can even manage various price points, inventory premium items like bumper stickers or caps, and manage messaging to contributors.

Most importantly, political campaigns, in most cases, are not permanent organizations, so the easy-to-use, usage-based transaction services are the most suitable.

Don’t Overlook Security – Online donations and online financial transactions are becoming commonplace around the world. Consumer confidence in doing business online is rapidly growing. However, don’t take security lightly. There are still identity thefts and other serious considerations to protect against. Click and Pledge offers the highest level of security: full system redundancy, high encryption, advanced virus protection and controlled access to credit card information. The Company is also in compliance with strict security standards enforced by VISA and MasterCard.

Remember, small staffs and limited resources that typically reflect political campaign organizations, limit you from affording and implementing the necessary online security standards. Don’t run into trouble. Use an on-demand.

As the population of Internet users continues to swell, it’s imperative that you have an online presence with the ability to accept campaign donations and manage events. Internet users tend to be more interested in news and politics than Australians in general. They enjoy taking a much deeper dive into a candidate’s policies, beliefs and plans; the type of depth than can be provided on your website…and they enjoy doing it in the privacy of their own home or office. This group of involved citizens uses the Internet to donate money, donate time, forward e-mail and contribute to online discussion groups and Web logs.

Be sure to get them involved and contributing online to your campaign.

Once you have decided to run for office, one of the first questions you should ask is, can I raise enough money to win? In an ideal world, the best person would win whether or not he or she can raise sufficient funds. However, in reality, if you are not independently wealthy and can’t ask for money, you should reconsider running for elective office.

As a candidate, you need to raise money early and raise money often. This advice holds true for the incumbent as well as the challenger. The best contributors are those who have already contributed to your campaign. Having made a contribution, your donors already have a vested interest in your success. Don’t be afraid to ask them again. A professional should help you plan how much you will need to run a successful campaign and to develop a fundraising strategy. Some basic tips to consider:

First you must examine your own reserves. If you are not willing to make a contribution toward your own campaign, you can’t realistically ask others to contribute.

Next you should ask your family and friends. While this may seem awkward, your family and friends are your early seed money, to get you started. Your close family and friends should be approached in person. But – do not sit down with your family and friends until you have a good reason as to why you are running and an explanation as to how you will use their money. You should have the written outline of a plan of action. If you can’t ask this close-knit circle for donations, you should reconsider running for office.

Next you should compile a list of your acquaintances, your business associates, your high school and college friends, etc. They should be called or sent a personal letter from you. What you say and how you say it is important. Consider having a professional write this letter for you. Once you have a commitment from your friend, get this person to spread the word for you. They can write letters on your behalf, call their friends, hold fundraising parties, etc.

Next try to get hold of member lists of your life’s activities: any civic or professional or religious association you are member of. If you are active in any group, this should be on the top of your list. People who know you or have heard of you are more likely to give to your campaign than strangers.

Next, if you not in a primary, you should approach your party organization. They won’t make any lists available if your election is contested, but, if you are the party’s candidate, you should press them to share their lists or do a mailing for you.

If you are an incumbent, you should contact every person who contributed to you in your past campaigns. People often feel insulted or neglected if they supported you in the past and they are not contacted again.

Next, contact former candidates or officeholders. If they share your political beliefs, they may allow you to use their lists. At minimum, they may suggest some prominent individuals to contact or they can share their own fundraising experiences.

If you are the challenger, your opponent may have made some enemies. You should contact these groups or individuals and let them know that you are running and can offer an alternative.

Candidate A has a vision, a popular message, a great press staff and would make a terrific member of Congress but thinks that fundraising is secondary. Candidate B has his own self-interest in mind, flip-flops on issues and does not comprehend the problems facing our country, but raises lots of money. What happens? Candidate A cannot afford television. Candidate B steals Candidate A’s message and blows him away with television ads that he produced with his mammoth war chest. Be smart and avoid this scenario.

By setting up a proper fundraising system first and early, your campaign will set the foundation to raise money and meet its financial goals. Other than gathering the proper signatures to insure that you are on the ballot, nothing is more important than having your fundraising team in place. By raising money early, you will be able to have the proper resources to ensure you can afford all the additional aspects of a campaign apparatus.

There is limited time in campaigns. The candidate should spend four to five hours six days a week fundraising. Just as those who invest early in retirement have more money later, those campaigns that start fundraising early and dedicate the time are able to resolicit donors and amass a war-chest. A candidate who is serious about winning will do this. Creating a sense of urgency with your fundraising is critical. One successful way of doing this is by setting up a separate media account at the beginning of the campaign. If the campaign budget determines that 80 percent of the budget will be spent on media, then eight out of every ten dollars that comes in goes directly to the media account. By doing this, the campaign will be under constant pressure to meet its obligations. By doing this, you will position yourself to reach your paid media goals. While it is more fun to talk strategy, the bottom line is, you have to have to have money in order to get our your message.

Why spend weeks or months trying to figure out how to raise money? By hiring a fundraising consultant, you can turn your campaign into a fundraising machine. This may be your first, second or even third campaign. Consultants have worked dozens, even hundreds of campaigns. They know the unexpected pitfalls in fundraising and they know what works. More importantly, the right fundraising consultant will actually save you money. I am still amazed when I walk into a campaign and they are spending 50 cents to raise a dollar. Would you try to make your own commercials? Then why try to go it alone on your fundraising. The investment in a qualified consultant is like a capital investment in a business. You need to spend money to make money.

The number-one fundraiser in your campaign is the candidate. The most cost effective and successful way to raise money in open seat and challenger races is through candidate calling. Period. The candidate is the product and will reap profit if willing to fundraise. You will never receive if you do not ask, and a solicitation from the candidate is the strongest and most cost effective method of fundraising. Staff also needs to dedicate substantial blocks of time for fundraising.

There are hundreds of ways to raise money. Your campaign should focus on approximately six or seven fundraising systems with maximum and minimum goals to achieve your overall revenue stream. Focus on systems that are the most cost effective and least staff intensive. Nine times out of ten, I know a campaign is in trouble when they tell me they are large event driven.

If you are serious about raising money — particularly big money — you have to invest in the proper fundraising staff and systems in order to achieve it. Just as you wouldn’t start a small business without a budget and revenue stream, the same should apply to your campaign. If you do not, then you are kidding yourself! Avoid the pitfalls of fundraising and hire a professional, qualified fundraising firm early. They will put together your fundraising apparatus right from the beginning of your campaign so that in minimal time the kinks are worked out and you are well on your way to raising the money necessary to cover your budget. Go ahead and do it. Looking for magical shortcuts to raising big dollars is wasting precious fundraising time. Remember, bumper stickers and signs are fun, but it is money that wins elections. A solid fundraising system makes the difference between being a candidate…and being a winner.

Mobile processing is seemingly everywhere you look these days. From the vendor at your local farmer’s market, to the new frozen yogurt shop that uses a tablet and card reader instead of a cash register. And, it’s no wonder they are so popular – the majority of people use their debit and credit cards for nearly everything. If I arrive at a restaurant or shop that doesn’t accept credit cards, I am more likely to turn around and leave rather than look for an ATM.

Most normal credit card readers need to be connected to a special phone line and require “closing out” at the end of the day. And have you ever tried to read someone else’s handwriting on a credit card contribution form days after an event? You’ll start to wonder why they stopped teaching penmanship in school.

Here is the perfect solution to this problem – it’s called AMP. With our mobile app and card reader, you’ll be able to process credit card contributions anywhere, using your smart phone or tablet. And the best part is that AMP will sync seamlessly with your database. Once you’ve swiped a credit card, AMP will search your database for the contributor, and pull up all of the legally necessary information – address, employer, occupation and email. You’ll be able to make changes if you need to (or even add a new record!), and once the transaction is processed, all of your changes – and the record of the receipt – will be recorded automatically in the database.

To get your message to your potential voters, you, as Candidate, will have to raise money. It has been said that money is the fuel that makes the campaign engine run smoothly. The telephone is a vital medium in your quest for sufficient funds to run a successful campaign. It is personal and the response is immediate. Calls are made by the Candidate, Campaign volunteers and by a Professionals Organizations.

I. THE CANDIDATE CALLS TIP: If you, the candidate, cannot make fundraising calls, you should reconsider running for office. The Candidate will be the most successful fundraiser.

One of the first jobs a candidate must tackle is to assess his/her financial strength. A list of potential donors should be compiled immediately.

Who should be included? Family Friends Business Associates Known political givers Clubs, Churches, Associations

TIP: Make sure that any name on a list includes full name, address, home and business phone. Notes on each person are helpful. Nicknames should be included so that thank you notes are more personalized.

TIP: The names should be categorized as to who can be called and who must be visited personally. The candidate should indicate how much he will ask for and how much he can expect to raise.

TIP: Always ask for more than you think you will get. It is always easier to reduce the amount than to raise it. A wealthy person expects to be asked for a large sum.

The candidate should have at least a 25% success ratio.

There should be a specific time set aside each day for telephone fundraising calls. It is often recommended that a volunteer or a staff person sit with the candidate so that he/she does not procrastinate. No one likes to ask for money. It is difficult work. It often feels degrading, but if you have confidence in your candidacy that will come across in your calls. Unless the candidate is financing the campaign him or herself, making fundraising calls is essential.

A first time candidate will have a harder time raising large sums of money from outside of his close circle of friends and associates.

Money should be asked for early. This is usually referred to as “seed” money. As a Candidate, you will need to have “X” amount available to demonstrate the seriousness of your candidacy. The ability of the candidate to raise money is often an indication of how successful you will be as a candidate. When someone makes a contribution to you, they are demonstrating their confidence in you, as a Candidate.

The candidate can make fundraising calls; the campaign can do some event follow up phoning and the finance committee can extend the fundraising outreach. However, larger campaigns with bigger budget requirements should use a professional telemarketing organization to make fundraising calls.

If you decide to use a professional telemarketing organization, be certain to ask the hard questions

1.     Be certain to ascertain exactly how the organization will be paid. Are they paid as a percentage of the money raised? Or as a flat fee?

2.     Be certain there aren’t any hidden costs. How are you charged? for phone calls made, phone calls completed?

3.     Do the callers have a regional accent?

4.     Who develops the script?

5.     Who is responsible for the lists that are called?

6.     Can they meet your time framework?

7.     What type of liaison to your staff will the telemarketing firm provide? What access will the campaign have to their staff?

8.     Make sure you have a written contract

Raising money for a campaign is not a guarantee of victory, but it can go a long way toward that end. Frequently local and legislative candidates assume that it is more difficult for them to raise money than it is for an incumbent. That’s not always the case.

Whether you are a challenger or incumbent, every candidate needs “seed” money to pay for literature, yard signs and phone bills. The best place to get the beginning money that will “leverage” all the later money is from the candidates’ friends, family and acquaintances.

Compiling a list is not difficult, but a candidate must be bold. Many candidates are self-conscious about asking those closest to them to contribute. Keep in mind however, that these people will be offended if you don’t include them and if your closest friends won’t contribute, then how can you expect complete strangers to give.

After a list is compiled, a fundraising piece needs to be developed. This should consist of

1) a well written fundraising letter,

2) a hand-addressed outside envelope,

3) a return envelope tucked inside the first envelope and

4) a reply piece for givers to provide you vital information, (like how much money they intend to send).

Writing an effective fundraising piece is almost an artform; so if you don’t have someone who is experienced at this type of work, follow these rules: First the letter should answer some basic questions like what are you running for? Why are you running? Hew much money do you need in total? How much money do you need specifically from the person reading the letter? What is the money needed for? What is your deadline for paying your bills? What benefit is there for your reader in seeing that you are elected.

By answering these questions in a cohesive and compelling letter, you will get beyond the reasons your reader may think have not to contribute.

Personalize the letter as much as possible. If you have a laser printer and a simple mail merge program, then you can create a personal salutation and even have personal references throughout your letter. In fact, you should assess which of your letter recipients are in the high donor category and which are in the low donor category.

See that the letter is not visually threatening to your reader. By this I mean that the letter should have short paragraphs, with underlining of important passages and spaces between paragraphs. In addition, forget the conventional wisdom and don’t be afraid to send a two, three or even four page letter.

Finally, I suggest that you pull aside some of the direct mail that comes into your mailbox and study their techniques You may learn some tips and writing styles from the professionals that sent it to you.