Debt-Elimination Campaigns

Raising money to retire or reduce a nonprofit organization’s debt is a special campaign and can be a hard sell, especially if that organization does not have a community of committed supporters. However there are times when what is owed creditors or lenders infringes on an organization’s ability to carry out its mission so strongly that it must be done.

A heavy debt burden weakens an organization’s balance sheet and that can make it harder to solicit larger gifts from individual donors and any support from grant-making entities. Of course, it is best not to get into debt, but when an organization does, a debt-elimination Campaign may be the only way out.

Articles about Debt-Elimination Campaigns

Debt-Elimination Fund-Raising Campaigns

How can your organization raise the money it needs to pay off: Money borrowed from a lending institution? Unpaid invoices from vendors, suppliers, and contractors for the purchase of a capital asset? Money allocated from other of the organization’s resources/assets? Accentuate the Positive Surveys tell us that people give to charitable organizations as an “investment” of their resources, expecting to see results that are tangible and good. They can do that when a building is erected with their support, and when they fund a special program or service which is directly provided to those who benefit from the organization. They feel that way as well when they have invested their money to help an organization meet its general annual operating costs, since those donors know that paying salaries, utilities, etc. makes it possible for the organization to carry out its mission fully on an ongoing basis. Developing a case for support of each of those endeavors is a relatively easy thing to do. The arguments can be clearly delineated and convincingly presented, and the results can even be quantified. But, how much success do you think any organization would have with the following approach to its donors? “Would you please consider making a contribution of $ _______ to help us pay off our organization’s debt?” A request for a contribution made in this way by a solicitor to a prospect would have the former hardly feeling eager to make the ask. With almost certainty, the solicitor herself or himself would not be a true believer in the project. As for the prospect, she or he would be asked to... read more