The Everything Guide to Fundraising Book: From grassroots campaigns to corporate sponsorships -- All you need to support your cause; Capital campagins/ Online fundraising / Cause marketing / Special Events
By Adina Genn
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The Everything Guide to Fundraising Book - Adina Genn
THE
EVERYTHING®
Guide to
FUNDRAISING
Dear Reader,
In the twenty-first century, fundraising has maintained its important role in American culture. In these uncertain times of economic woes and a seemingly unparalleled stream of natural disasters, people have taken stock of what really matters in their lives. They want to act on opportunities to assist others in their community and in the world around them. This is true at all levels, from communit y groups to public schools to corporations.
The Everything® Guide to Fundraising examines the world of fundraising as it affects us today, shedding light on the challenge of generating funds to support the causes that are important to you. From a school gift wrap sale to a golf tournament to e-fundraising efforts, there are many ways to raise money. This book explores the goal of reaching out and soliciting funds from donors, as well as various aspects of the fundraising process such as bookkeeping, accounting, taxes, communications, efundraising, and software.
While there are many facets to fundraising, perhaps the most important one is FUNdraising. Your enthusiasm is contagious, whether you are collaborating with colleagues, vendors, or donors. That element is bound to make a difference in supporting your cause, and it will serve as a great source of joy and pride in your fundraising efforts.
Sincerely,
9781598698237_0002_002Welcome to the EVERYTHING® Series!
These handy, accessible books give you all you need to tackle a difficult project, gain a new hobby, comprehend a fascinating topic, prepare for an exam, or even brush up on something you learned back in school but have since forgotten.
You can choose to read an Everything® book from cover to cover or just pick out the information you want from our four useful boxes: e-questions, e-facts, e-alerts, and e-ssentials. We give you everything you need to know on the subject, but throw in a lot of fun stuff along the way, too.
We now have more than 400 Everything® books in print, spanning such wide-ranging categories as weddings, pregnancy, cooking, music instruction, foreign language, crafts, pets, New Age, and so much more. When you’re done reading them all, you can finally say you know Everything®!
9781598698237_0003_003Answers to
common questions
9781598698237_0003_004Important snippets
of information
9781598698237_0003_005Urgent
warnings
9781598698237_0003_006Quick
handy tips
PUBLISHER Karen Cooper
DIRECTOR OF ACQUISITIONS AND INNOVATION Paula Munier
MANAGING EDITOR, EVERYTHING SERIES Lisa Laing
COPY CHIEF Casey Ebert
ACQUISITIONS EDITOR Lisa Laing
DEVELOPMENT EDITOR Elizabeth Kassab
EDITORIAL ASSISTANT Hillary Thompson
Visit the entire Everything® series at www.everything.com
THE
EVERYTHING®
GUIDE TO
FUNDRAISING
From grassroots campaigns to corporate
sponsorships—all you need to support your cause
Adina Genn
9781598698237_0004_001Avon, Massachusetts
Copyright © 2009 Simon and Schuster All rights reserved.
This book, or parts thereof, may not be reproduced in any form without permission from the publisher; exceptions are made for brief excerpts used in published reviews.
An Everything® Series Book.
Everything® and everything.com® are registered trademarks of F+W Media, Inc.
Published by Adams Media, an imprint of Simon & Schuster, Inc.
57 Littlefield Street, Avon, MA 02322 U.S.A.
www.adamsmedia.com
ISBN 10: 1-59869-823-0
ISBN 13: 978-1-59869-823-7
eISBN: 978-1-59869-823-7
Printed in the United States of America.
J I H G F E D C B A
Library of Congress Cataloging-in-Publication Data
is available from the publisher.
This publication is designed to provide accurate and authoritative information with regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.
—From a Declaration of Principles jointly adopted by a Committee of the
American Bar Association and a Committee of Publishers and Associations
This book is available at quantity discounts for bulk purchases.
For information, please call 1-800-289-0963.
I dedicate this book to my husband and partner, Michael, and to mychildren Alyssa and Ethan, who are unwavering in their support.
Contents
Top Ten Fundraising Tips You Will Learn from This Book
Introduction
1 Fundraising Basics
Why Have a Fundraiser?
Setting a Goal
Targeting an Audience
Rallying Some Troops
Formulating a Plan
Honing and Presenting Your Plan
2 Selecting the Fundraiser for You
Group Dynamics
Establishing a Time Frame
Costs to Consider
Resources
Quality and Customer Service
Fundraising Options
3 Getting Started
Selecting or Electing a Leader
Who Is On Board?
Evaluating Your Personnel
The Board Members
The First Meetings
Motivation
Fundraising Consultants
4 Where and When? The Details of Your Fundraiser
Location Selection
The Right
Date
Organizing and Record Keeping
Setting up a Schedule
Tracking Your Progress
Contingency Plans
Inviting Special Guests
Staging Repeat Performances
5 Organizing the Troops
Setting Guidelines
Finding Volunteers
Training Tips
Creating Schedules
Working by Committee
Showing Appreciation to Volunteers
Hiring Professionals
6 The Big Bucks
Assessing Your Costs
Budgeting Expenses
Finding Sources of Funding
Individual Contributors
Alternative Ways of Fundraising
Foundations
Corporations
Other Major Donors
Tapping Your Sources
Giving Something Back
7 Honing Your Skills for Effective Fundraising
Fancy Phone Techniques
Direct Mail Campaigns
Fundraising Letters
Test Marketing
Building Your Web Presence
Public Speaking
Annual Campaigns
A Public Relations Primer
8 A Lesson in Ethics
Establishing a Code of Conduct
Taking Gifts
Conflicts of Interest
Selling Mailing Lists
Credibility
Activities to Avoid
9 Communication Tools and Practices
Your Communication Infrastructure
Knowing Who to Contact
An Intranet Site
Information Storage
Using a Website for Your Fundraiser
E-Fundraising
10 Spreading the Word
Internal Publicity
Defining Your Advertising Needs
Radio
The Internet and E-Mail
Online Newsletters
The Print Media
Signs, Flyers, and Posters
Promotional Activities
Cause Marketing
Printing
Visual Effects
11 Corporate Fundraising
The Role of Corporations in Fundraising
Approaching Corporations
Developing Partnerships
Employee Donations
The United Way
12 Community Fundraising
Involving the Whole Community
Establishing a Nucleus
Making Things Happen
Working with Your Community Board
Finding Local Sponsors
Laws and Ordinances
Promoting Locally
Becoming Established in the Community
Social Networking
Giving Circles
13 Grassroots Fundraising
Small-Scale Efforts, Big Results
Brainstorming
Dividing Responsibilities
How Much Should You Do?
Maintaining Focus
Credibility
Your Secret Weapon: The Warm Fuzzies
14 Fundraising with Kids and Teens
Getting Kids Started
Teaching Kids the Ropes
Kid-Friendly Possibilities
School Fundraisers
Selecting a Fundraising Company
Rewarding a Job Well Done
15 Political Fundraising
The Campaign Fundraising Plan
The Donor List
Legal Issues
The Internet
The Fundraising Letter
The House Party
Personal Appearances
16 Odds and Ends
The Art of Collecting Money
Ordering from Vendors
Shipping
Utilizing all Available Resources
Mergers and Partnerships
Babysitting and Child Care
Security Concerns
17 All about Grants
Finding Grants
The Application Process
Timing and Follow Up
Corporate Grants
Federal Grants
18 Grant Writing 101
Overview of a Proposal
The Project Summary
About Your Organization
The Problem Statement
Goals and Objectives
Your Plan of Action
Evaluating the Program
Your Budget
In the End
Sample Grant Application
19 Taxes and Accounting
Your Tax Status
Donor Contributions
Filing with the IRS
Bookkeeping Practices
Reviewing Your Financial Picture
Financial Accountability
20 Measuring Success
Evaluating Your Efforts
Evaluation Standards
Common Evaluation Errors
Making Improvements
Lasting Effects
Wrapping Up and Moving On
Saying Thank You
Appendix A: Fundraising Resources
Appendix B: PBS: Forty Years of Successful Fundraising
Acknowledgments
A very special thank you to those who work so hard in fundraising and who provided me with valuable information for this book: Jan McNamara in corporate communications at PBS; Natalie Canavor, a New York Metro–area consultant who helps nonprofits communicate more effectively; David Strom, a St. Louis–based technology expert, writer and fundraiser who cohosts The Accidental Fundraiser,
a podcast available at www.accidentalfundraiser.com; Ken Cerini, managing partner of Cerini & Associates, a Long Island-based accounting firm whose specialty includes the nonprofit industry; and Susan Hoffman, site director of JCCs Stiffel Senior Center in Philadelphia.
I would also like to thank my agent, Bob Diforio, who helps make opportunities possible, as well as Lisa M. Laing, managing editor of the Everything® series at Adams Media, for her guidance and support. And finally, I would like to thank my family for their enthusiasm and encouragement.
Top Ten Fundraising Tips You Will
Learn from This Book
1. Networking is critical to your efforts. Have everyone in your group consider who they know that can donate goods and services to your fundraising activity.
2. Choose a locale for your fundraising event that reflects the members of the organization as well as the organization’s mission and values.
3. Budget wisely. Some fundraisers, unfortunately, wind up spending nearly half of the income from an event simply to cover expenses. The better you budget, the better you can support your cause.
4. Join forces with organizations that have similar values and complementary missions. You may be able to accomplish more and share expenses.
5. Provide proper lead time when trying to garner media coverage. Magazines may need as much as three months or more, while newspapers and websites require less lead time.
6. Use technology to your advantage. Software programs can maximize efficiencies, and e-mail blasts are an inexpensive way to send fundraising appeals, invitations, information on upcoming events, and thank-you notes.
7. Participate in online social networking opportunities, which provide great tools for raising awareness—and ultimately funds—for your cause.
8. Solicit corporations. Studies show that corporate employees feel pride and loyalty when their company participates in philanthropic endeavors.
9. Build relationships. People are more likely to contribute to people they know who are dedicated to a cause.
10. Use Who’s Who in America or the Standard & Poor Directory to find information on potential high-profile donors.
Introduction
a FROM THEIR LIVING ROOM televisions, viewers around the world watched the importance of giving in real time, with Wal-Mart emerging as the impressive and organized leader, distributing much-needed cases of water to American storm victims in the aftermath of Hurricane Katrina. Wal-Mart demonstrated that the spirit of giving is not only alive and well, but also patriotic and necessary. Inspiring as the spirit is, however, one fundraising challenge remains: competition for donor dollars is fierce.
Money is fundamental to researching serious illnesses, fighting drug abuse and domestic violence, finding ways to stop global warming, supplying urban schools with necessary programs and equipment, sheltering the homeless, and helping those affected by violent crime and acts of terrorism. No matter what your cause, you will likely need to raise money at some point.
This book focuses not only on how the modern fundraiser goes about procuring money in a highly competitive world, but also on how to reach out and touch individuals in a manner that will provoke them to think, feel, and give.
Fundraising has become an art, and it can be very complex, involving software, advanced communications systems, marketing strategy, and corporate grant proposals. At the root of it all is the same basic need—to raise money for your cause, whatever that may be. Keep in mind that the most comprehensive fundraising software program or websites still have not matched the success of ninety-plus years of Girl Scout cookie sales.
It is important, therefore, to take a simplified approach to raising funds, no matter how creative or complex your upcoming fundraising plan may be. This book takes a practical, hands-on approach that can meet the needs of both the multimillion-dollar nonprofit organization and the local twenty-two member PTO. When everyone is playing by the same set of rules, there is no right or wrong means of fundraising, only the means of being successful in reaching your goals.
The key to successful fundraising is not whether you sell wrapping paper or scented candles; it’s your inner desire to make a difference. If you have a passion and can convince others that you are working for a worthwhile cause—be it finding a cure for asthma or supporting orphaned children—you will inspire others to step forward and pitch in with goods, supplies, volunteer hours, or money.
This book highlights examples of many small-scale fundraising efforts and builds on the theme that fundraising is doable at any level. The focus is at the local level, because fundraising really begins when a child asks his mom to buy candy or wrapping paper to help raise money for school, or when the Key Club offers to wash cars for the local community. Perhaps that’s what is meant by the expression, Charity begins at home.
CHAPTER 1
Fundraising Basics
Whether it’s to fix a leaky roof on an old church or help keep the homeless warm this winter, you have identified a need. But what next? How do you go about raising money to do the good deeds you want to do? This chapter introduces you to the world of fundraising.
Why Have a Fundraiser?
Fundraising can encompass a wide range of possibilities, from raising several million dollars for a new hospital wing to raising a few hundred dollars for new costumes for a high school performance. The idea of fundraising, however, offers a community, school, or organization more than just a means of raising money. It can also help your team develop cohesiveness, provide a place for individuals to use skills and talents they may not use in their everyday lives, and create a sense of community.
Your fundraiser may be the starting point for members of your neighborhood to meet other likeminded individuals and start discussing various community issues. It may also be a way of generating support for a cause you believe in.
Today, it is common to find schools encouraging students from grade school through college to engage in fundraising activities. While the parents could raise substantial amounts of money without the help of their children, these activities provide young people with a sense of teamwork and civic responsibility. Of course, there is also the personal satisfaction you get from involvement with a cause that you want to help.
Support and Involvement
When a group or organization, whether fraternal, charitable, or political, holds a fundraiser, they take some of the burden of financial support off of their membership and gain the support of a wider audience. This can help spur public involvement and promote public awareness.
For example, when individuals pledge money to PBS, they are becoming involved, in a small way, in the work of that organization. At the same time, they demonstrate their support by donating money to help the organization. Not unlike showing up at a stockholders meeting, they can become a small part of something larger, something they find meaningful. Many people are involved in fundraising for the dual purposes of helping others and socializing. Helping to organize and run the annual book fair at your son’s middle school not only raises money to help the school, it’s also a great way to meet other parents and get to know more people in the community.
Good Public Relations
While raising money for a specific goal is the primary objective, fundraising objectives also highlight and promote the work of your group or organization. Often, while promoting a specific fundraising effort, you will also distribute literature and tell others by word of mouth about the goals and mission of your group and the cause behind your fundraiser.
For example, representatives from the American Lung Association collecting money at a street fair will probably distribute fliers and data so the public can learn more about what they do, as well as provide health-related news and information. Fundraising often provides a means of educating the public by providing pertinent information gathered by your organization.
9781598698237_0016_001To run a successful fundraising drive or event, you need to introduce your members, volunteers, and everyone involved in the activities to one another. You want to establish a cohesive team for a successful fundraising effort.
Setting a Goal
Before you can start the process, it is important that you, and everyone involved in the fundraising efforts, are clear regarding what the money will be used for. Determining your primary goal can often be the cause for great debate in groups or organizations. You must establish priorities for your organization—does the school need new textbooks more than it needs a new gymnasium?
Establishing priorities requires careful examination of the available data. For example, the purpose of your organization may be to fight the HIV/AIDS epidemic. There are many ways to support this cause—you must look at the data and determine what will allow you to be most effective. Is there a greater need in your community to raise funds to help HIV/AIDS patients or to support researchers at a medical facility who are seeking a cure for this disease?
Preliminary research, polls, and analysis of existing programs can help you determine which needs to prioritize and establish and fine-tune your goals. Studies in your community may show money has been pouring in to support HIV/AIDS research, while little money has been donated to local housing for patients.
9781598698237_0017_001Even when the purpose seems obvious, such as raising money after a natural disaster, make sure you are clear regarding how you envision the use of the funds. After Hurricane Katrina devastated the Gulf Coast, many groups specifically raised funds for victims and their families, while other groups sent money to help the relief workers.
Having a clear goal keeps your organization on track and inspires confidence. The more clearly you have stated your goal, the more easily you will be able to convince others to spend their hard-earned money to help your cause. Do your homework. The best way to convince others to give money toward achieving a specific goal is to have the data to support your need for funding.
Setting a specific goal will help your organization structure its fundraising plans. A larger-scale goal, such as building a new auditorium, will require a more detailed, larger-scale plan of action. Conversely, the goal of buying new volleyball uniforms will require less involved planning. Nonetheless, the goal should be clearly communicated to everyone involved, directly and indirectly, in the fundraising effort.
Targeting an Audience
It is important to establish your target audience even before you plan the details of your fundraising events or activities. Your goal is to raise money, but someone needs to be on the other end of that equation, writing out checks or handing over cash. Can you profile potential donors? Do you know who will be interested in helping you meet your goal? Can you reach these people?
It is in your best interest to establish who will be donating money. This way, your fundraising project is more likely to be successful. It will help you establish the magnitude of the project and determine whether your goal is feasible. If, for example, you are going to try to collect funds from students at the local high school, it is highly unlikely that you are going to raise the cash needed to build a new gymnasium. You will need to either establish a fundraising plan that attracts the corporate leaders in your community or scale down your goal to converting the old auditorium into a part-time gymnasium, rather than having a new structure built from the ground up.
9781598698237_0018_001One of the biggest downfalls of local fundraisers is not knowing the target community. Lofty goals and inappropriate fundraisers are a bad combination. Determine who comprises your target audience, what will attract it to your cause, and whom you may realistically tap for funding.
It is also presumptuous to expect everyone on campus or in the neighborhood to get involved and donate money. A large, high-profile organization such as the Red Cross has arms that extend nationwide and even worldwide. It can expect a large return based on calculating percentages and maintaining a database to track the number of people that donate money annually. The majority of local fundraising efforts have neither such a database nor such a far-reaching network. Therefore, you need to do some preliminary research and look into the potential donor base for your project.
If, for example, you are raising money for a sports program for underprivileged kids, you might want to tap into the local athletes and sports enthusiasts in your area. Studies show that women will more readily donate to a school-based, education-related fundraiser than men. College students have a greater passion for environmental and ecological concerns. Minorities have a greater concern for social and human rights issues.
Rallying Some Troops
I wish I could, but I’m just too busy.
That’s a phrase you will hear all too often when trying to rally troops to work on your fundraising efforts. But there are many people out there who will be ready to give some time and effort to support a good cause—you just have to find them.
Reasonable Goals
Set attainable goals. This may seem obvious, but it is important to consider how much work can reasonably be accomplished by the number of volunteers you have. Trying to do too much will only frustrate everyone and may even drive away some volunteers.
It is also very important that you rally people behind the idea in a positive, but not pushy, manner. You need to gather prospective team members and promote the reasons behind the need for funding. In addition, you want to emphasize the idea of FUNdraising, or having a good time.
Getting others involved in a fundraiser can be very easy if the cause, or need, is obvious and touches the members, students, or community personally. The less informed your audience is about an issue, the more you need to be prepared. Gathering facts and figures isn’t very difficult if you utilize the library, town records, and the Internet. Your enthusiasm for a cause may very well spread among your circle.
Show Them!
A simple example of winning over an audience with research and presentation comes from a father of two young children, who went before a local town board in his New England community to propose a fundraiser for new and better playground facilities. Many of the people sitting before him were elderly and had no idea what was wrong with the current playground. His idea didn’t get off the drawing board.
At the next town meeting, the father brought documented proof of several injuries that had resulted directly from the old equipment. In addition to a polished proposal with facts and figures, he also brought a few of the local kids, including one who was injured on the playground. He got the town behind him and they offered their assistance for his fundraising efforts.
You should prepare appropriate literature that supports your fundraising goal or goals. Such literature should clearly illustrate your mission to potential contributors and volunteers. It should also address the urgency behind your goal and the history or background of your group, association, organization, school, or other affiliation. Remember that the people collecting the money, which includes you and your volunteers, also need to present themselves in a credible manner in your presentation.
9781598698237_0020_001It is estimated that more than 75 percent of people involved in fundraising activities are in some manner touched personally by the cause. A person who has a sister with breast cancer might participate in the Avon Walk for Breast Cancer; another might simply enjoy the programming on PBS. The point is the same: Most people donate their time or money to a cause they have a personal connection to.
Formulating a Plan
Many different elements factor into how you choose a fundraising event. Your fundraiser will become a project, and, not unlike starting a business, it will need to grow and incorporate the skills of various people whom you believe can help you reach the goal. New technologies can help improve your efficiency by monitoring goals and tracking progress.
9781598698237_0020_002Individuals give more than $222 billion per year, or about 75 percent, of all contributions to charitable organizations, according to Giving USA, the publication for the American Association of Fundraising Counsel. Foundations, bequests, and corporations combined give the other 25 percent.
You will need to create a time frame; an open-ended project is not really a project at all, but a process. While established fundraising organizations will always accept donations, a specific fundraiser is just that—specific—with a time frame indicating when sales or services end and totals are added up. Part of your goal will be to raise money to complete such a project by a desired date. The date may be selected for you by the nature of the project. For example, a fundraising drive to buy