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Tapping The Philanthropic Well It's common knowledge that corporations and foundations give most of the money to non-profit organizations Principal Fund-Raising Truth: You go where money you think you can get is to be found in the greatest quantities and most of the time that means you look to the individual donor  No
fund-raising campaign should ever be started until you have identified
the sources from which you will draw contributions. Sources here does
not refer to specific potential donors, but to the six categories of
donors who contribute money to non-profit organizations. They are:
Your
plan for a fund-raising campaign should target each source appropriate
for that campaign and set a goal for contributions to be achieved from
that source. Those goals are determined by rating and evaluating the
potential donors that comprise each source. All
fund-raising campaigns begin with the trustees of an organization. In
general, if you are planning a fund-raising campaign and are not
expecting important contributions from your trustees, there is something
drastically wrong with either your campaign plan or the composition of
your board. Trustee giving sets the pace for any fund-raising campaign,
and your board should have on it persons ready, willing, and able to
make their best possible gifts to the organization.A board of trustees is a
resource for an organization to draw upon in carrying out its mission,
and part of the mission of any successful non-profit organization is to
raise money. Therefore, there must be people on an organization's board
who can be counted on to give money. If your organization does not have
trustees who can give, add them, even if it means enlarging the board.
Individuals
are the main source of philanthropic contributions in America. Most
successful fund-raising campaigns receive from 70 to 80 percent of their
money from individuals. They are the most flexible and spontaneous
givers. Unlike corporations, foundations, and governmental entities,
individuals are able to make a decision on the spot, and if they want,
they can choose to put all their eggs in one basket. Joe Smith can reach
for his checkbook a lot faster than the Metropolis Community Foundation
with its rigid timetables and layers of committee meetings, and Mr.
Smith has no requirement to spread his charitable contributions among a
variety of worthwhile causes.Corporations look at requests for support from three points of view: 1.
Is it good philanthropy? A contribution made for straight
philanthropic reasons is a gift of good citizenship from which a
corporation expects little or no direct benefit.Straight philanthropic
giving is the kind non-profits usually receive from corporations for
annual fund campaigns and operational support. It is the main type of
giving, which corporations use to satisfy their commitments and
responsibilities to support community initiatives that enhance the
well-being of constituencies important to them---employees,
shareholders, and customers. Usually, an organization will receive many
contributions made for this purpose, and no single corporation expects
greater publicity and recognition than that directly attributable to the
value of its gift. Corporations rarely ever make this kind of donation
in communities where they have little or no presence. 2.
Does it enhance the corporate image? A contribution made with
image as a major consideration is made with the expectation that it will
engender positive feelings on the part of the public toward the
corporation.Giving
to build image is high-visibility giving, and a corporation expects to
receive wide public recognition for such a gift. Often the contribution
will take the form of sponsoring an event or program in expectation that
the corporation will have its name attached to it. Corporations that
have a relationship with a large segment of the public as a result of
the products or services they offer are particularly responsive to
image-related contribution requests. The greater the visibility a
non-profit can promise for an image-related contribution, the greater
the likelihood of a positive and substantial response to solicitation.
Great care should be taken by the non-profit organization not to promise
too much. Out-of-pocket expenses brought on by promoting the sponsored
event or program---everything from billboards to tote bags---can
severely diminish the proceeds from the sponsorship. 3.
Will it generate revenue for the corporation?A contribution
made based upon its potential to generate revenue is as much business
deal as charitable gift.Giving
which produces revenue is bottom-line giving for corporations. For most
non-profit organizations, this kind of support should rank a distant
third. Essentially, the non-profit organization sells, advertises, or
endorses a company's products or services and receives contributions out
of business revenues thereby generated. Unfortunately, the proceeds are
seldom in line with the effort expended, and you run the risk of
alienating similar companies to the point where you cannot go to them
for contributions of any kind. In addition, contracts for this type of
program are usually written by the corporation so that it can withdraw
its participation on short notice, leaving the non-profit organization
high and dry. Private
foundations are for the most part repositories of funds from a single
source or at most a very few---for example, an individual or family.
They often operate with greater freedom than community foundations and
act quite quickly. While many have formal guidelines, some will make
grants on the strength of a relatively informal request. Private
foundations give to all types of organizations, programs, and
fund-raising campaigns. Often they are good sources of start-up funds
and seed money. Some give to specific subjects and causes, while others
limit their grant-making geographically.Community
foundations are repositories of funds contributed by individuals and
corporations for use primarily to improve the quality of life within
their community. They can cover a single city, a region, a state, or
even an entire country. Most commonly, they make grants to non-profit
organizations from the income earned on endowment. Sometimes they make a
distribution of principal from endowment or invest endowment funds in a
community initiative. The
funds at a community foundations disposal can often be restricted,
meaning that grants have to be made within an interest area, such as
arts, or to a specific organization, such as a community's art museum.
Unrestricted funds are distributed according to the foundations best
determination of need.It
takes time for a community foundation to analyze a grant application. A
number of individuals and committees usually review a proposal---which
must be submitted following specific guidelines---before it is accepted
or rejected. Grants are made on a regular schedule, usually quarterly,
and you can expect months to pass between first contact and grant
approval.Government
at the local, state, and federal level contribute funds to non-profits.
Federal agencies such as the National Endowment for the Humanities and
the National Institutes of Health make grants in their particular areas
of interest. The states have similar area-of-interest grant-making
agencies. Sometimes an organization, such as a state arts council, isn't
actually part of state government, but exists as a semi-independent
authority to administer the distribution of state and federal funds. On
the local level, agencies ranging from park boards to the mayors office
may have a process for making contributions to non-profits. In general,
the lower the level of government, the faster the turnaround time for a
grant proposal. As is the case with foundations, governmental
grant-making agencies usually require that an organization follow a set
of predetermined guidelines when requesting funds.Elected officials are the
ultimate controllers of the funds governments make available for
grant-making, so lobbying legislators, as well as informing and
involving other key government officials, is an important tactic for any
organization that sees government as a funding source. Trustees who have
clout with elected or appointed officials can be invaluable in
presenting an organizations need for funding. Your
analysis of the best possible fund-raising sources is dependent on the
cause for which you are seeking money, and the ways in which you are
going after it. In some campaigns, all six source groups may be fair
game. In others, it is conceivable that only one or two will be
targeted. A long, hard look at your organization and its mission, your
community and its philanthropic traditions, and the number of
foundations, corporations, and governmental entities with a history of
supporting your organization or the type of programs it offers will help
you assess your chances with each category of funding sources.Every
fund-raising campaign requires you to examine the cause you are touting,
the arguments you have marshaled in support of it, and the people and
means available to present those arguments. You then determine which
sources are likely to have the most money you can access. I remember when
the American Symphony Orchestra League (ASOL) asked its then more than
1,500 members what topics they wanted to see addressed at the League's
annual regional workshops. More than 80 percent listed fund-raising.
When asked what specific fund-raising topic they wanted to focus on,
over 80 percent said corporate giving. Yet many of ASOL's orchestras,
ensembles, and bands are in small communities where there is little or
no corporate presence. Why
did they choose corporate fund-raising? Because most of us find it
easier to ask a corporation for money than a private individual, and
because as a society we have come to view corporations as the holders of
vast wealth. When a corporate contributions officer says no, it seems
less personal. However, a fund-raising campaign strategy should not be
based on anticipating the least painful turndown. Nor should
fund-raising strategy be based on an erroneous understanding of wealth.
It is the owners of a corporation, individuals who hold a corporation's
stock, who have the money to give to worthy causes. You go where money
you think you can get is to be found in the greatest quantities, and
most of the time that means you look to the individual donor. Those
are my views on the subject. What are yours? I welcome your comments and
suggestions. tony@raise-funds.comNote: Additional resources to help you determine the best funding sources for your organization are available on my website. You may access them by using .pdf and/or .html methods as follows:
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