August 14, 2011

Peer to Peer Fundraising: Part 5 "Two Types of Fundraisers, Two Types of Members"

There are two types of fundraisers and both are identifying two types of members. It is really that black and white. I will explain why one fund raiser gets immediate results while the other builds for continued political investment. We will also discuss the two types of members and I'm not talking about builders and associates. 
Part 5 "Two Types of Fundraisers, Two Types of Members"


"The Hunter" ~ Think about it for a moment. A hunter goes into the woods in search of his prey. Eventually the object of his quest appears....    


Ready...     Aim... Fire... Done. 
One shot, one kill, over.


The hunter in fundraising has a similar approach. The potential PAC contributor (not investor) is targeted, money was asked for and a check was written. One target, one ask, one check, over. The hunter was able to "bag his 1 for the PAC" but did not set up the potential for the future. 


The Farmer ~ The farmer tills his ground, plants the seeds for his crop. He will supply water and nutrients to aid in the growth of his crops. The farmer knows that he will have continued growth of crops by taking the time and care to nurture. 


The farmer in fundraising will "plant the seeds" of political synergy into the member's mind. He will carefully supply the member with the nutrients which I'll describe as visions of business opportunities. This will almost guarantee that the member being tended to will continue, just like crops, to invest (not contribute) to the PAC.


The differences between the hunter and the farmer, when it comes to fundraising, are very simple and they apply to what we experience within the HBA. The hunter gets one contribution while the farmer has "sown the seeds" for a continuous investment in the building industry. 


Any PAC, local, state or NAHB's, has to have our members understand the importance of the PAC. To give and not understand is pointless. To give because you want to make a difference is the strength of our Federation, our industry.


A farmer knows what ground is fertile and what ground is not even though both look the same. Which brings us to the two types of members I mentioned in the beginning. 


When we think of members within the HBA we think "builder" and we think "associate." Those are the only two classifications of members we have. What I'm talking about is to identify the two types of members that are "fertile" and who are "not so fertile." Those members are classified as DIRECT and INDIRECT.


Direct ~ A direct member is a member who is directly affected by issues affecting the home building industry. 
1. Builders and remodelers.
2. Supplier of product that goes into a new home or renovation.
3. A trade that is needed to help construct a new home or renovation.
4. Any service that solely handles the construction of a new home or renovation.


This group has one purpose when it comes to our industry and that purpose is the start and completion of a new home or remodel.


Indirect ~ is any member who can sell his or her product outside the home building and remodeling industry.
Examples:
1. Insurance companies.
2. Financial services
3. Lending institutions.
4. Law firms
5. Advertising agencies


The list is long so I'll stop with 5 examples but hopefully you will understand that the indirect member is diversified and can work with many industries, not just housing. 




How are the direct member and indirect member different when it comes to political fundraising? The direct has a need for the housing industry to be protected while the indirect member, not so much. Understanding this will help you cultivate a list of potential PAC investors (direct) who will continue to invest or hunt for contributors (indirect) who will sponsor a PAC event when times are better. Indirect members will not invest in our industry's defense on a regular basis because housing is not their primary focus.


Knowing whether or not the member is affected by positive or negative initiatives in our nation's capitol, or in your state capitol, will go along way with becoming successful with Peer to Peer fundraising by streamlining your efforts based on the potential PAC investor's need.
                                  
Next week's blog we will tie all of the Peer to Peer blogs together and develop a strategic plan for your fundraising efforts. 


Submitted by: Michael Kurpiel, CGA, CGP
2011 NAHB Associate Members Committee Chair

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NOTE: This article is based on a section from The NAHB Associates presentation "Peer to Peer Fundraising." This type of fundraising will work on all of your HBA events or fundraising initiatives you may have; you just have the supply the core reason for the fundraiser and demonstrate a value to the potential investor. 

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