A FUND RAISER'S NEWSYLETTER FROM JOYAUX ASSOCIATES
A periodic bulletin featuring fund raising, management, and board information.
February 2000

Useful Tips

Tap those local funders! Community foundations give money in specific geographic areas -- like your town, city or county. And they're giving more money than ever.

Community foundation grants totaled $1.5 billion nationally in 1998, up 23%. The trend seems sure to continue, with donors giving $2.8 billion to community foundations, and community foundation assets totaling $25 billion in 1998.

For more information, see the annual survey of community foundations on the Columbus Foundation's web site.

[Source: "Community Foundations See Sharp Growth in Assets," Debra E. Blum, The Chronicle of Philanthropy, November 18, 1999. P.O. Box 1989, Marion, OH 43305; 800-728-2819; e-mail: subscriptions@philanthropy.com.]

Learn what matters to regional and local givers. A narrow focus gives them a sense of belonging in the community, and a vested interest in its growth. Many employ program officers who go into the field to meet with leaders and examine programs. Welcome them, show them your facilities, discuss local issues. Ask for money only after a relationship is established.

Givers that can't afford to hire field staff rely on local experts to shape their giving -- become one! Share your research, experience, advice. Help funders create benchmarks so they can measure their impact on the community.

For more information, see "Changing World of Foundation Fundraising: New Challenges and Opportunities," Sandra Glass, editor. Published by Jossey-Bass, Inc., 350 Sansome St., San Francisco, CA 94104; 800-956-7739.

[Source: "Regional Givers: Knowing What Makes Them Tick Can Help You Land Support," Foundation & Corporate Funding Advantage, November 1999. Progressive Business Publications, 370 Technology Drive, Malvern, PA 19355; 800-220-5000; fax 610-647-8089.]

What's your Internet fund-raising strategy? Not-for-profit groups can use web sites, e-mail and other Internet tools to:

  • conduct cost-effective marketing to donors and other constituents

  • save print publication costs

  • provide timely information, such as action alerts to supporters

  • cultivate relationships by sending newsletters and e-mail to supporters

  • establish chat rooms for supporters to discuss the interests they share with your group

  • link to corporate sponsors' web sites to demonstrate social responsibility

  • partner with individual and business supporters; sell their products via your site; recruit supporters from theirs

  • prospect for new donors

    For more information, visit the web site of Diana Hodiak, co-author of "Fund Raising & Marketing in the One-Person Shop."

    [Source: "Eight Reasons Why Nonprofits Should Go Online," Diane Hodiak, The Fund Raiser Cyberzine, December 1999.]

    Why the Web? Consider these trends:

  • In January 1996, 18.2 million U.S. households had access to the Internet. In January 1999, 37.7 million households had access. Imagine seaching people through the 'Net.

  • In 1996, just 18 percent of Internet users were female; by 1999, half were. And remember, women often make the giving decisions in U.S. households.

    [Source: Fast Company magazine, October 1999.]

    Get results with well-worded questions:

  • Open or direct questions encourage others to share opinions, take ownership of a problem: "How can we complete this project on time?"

  • Planted-answer questions direct the response, build buy-in: "Don't you think this outline needs work?"

  • Off-the-hook questions allow the answerer to say no without losing face: "I know you've been working a lot of overtime, but would it be possible for you to stay late tonight?"

    Poorly-worded questions, however, can block communications, kill enthusiasm, and foster resentment:

  • Disagreeable questions sound like a challenge: "None of your other ideas have worked. Why should this one?"

  • No-way-out questions lead to defensive responses: "I think this is the only solution. How can you disagree?"

  • Trick questions trap others into agreeing with you: "Should we follow my plan or put in long hours to alter it?"

    For more information, see Common Sense Leadership, Robert Fulton, Ten Speed Press, 1-800-841-BOOK.

    [Source: "Put 'Question Power' to Work for You," Communication Solutions, 1999. Progressive Business Publications, 370 Technology Drive, Malvern, PA 19355; 800-220-8600.]

    It's time to review your disclosure policy. New IRS rules say not-for-profit groups must provide the public with copies of their tax documents (IRS Form 990). Noncompliance penalties are $20 per day, and can add up to $10,000 or more.

    The good news: Groups can fulfill their disclosure obligation by posting this information on a public World Wide Web site where users can view, print and download copies free of charge. Documents in Adobe Acrobat pdf (Portable Document Format) are acceptable.

    If print copies are required, groups can charge reproduction costs of up to $1 for the first page and 15 cents for each additional page.

    [Source: "New Rules for Nonprofits," Client Line, September 1999. Lucier & Company CPAs, 1308 Atwood Ave., Johnston, RI 02919; 401-946-1900.]

    Develop good relations with females executives. Women in executive positions, and those who own companies, give more than their male counterparts. Female executives volunteer more, too -- even more than other women.

    For more information, see the report, "Philanthropy Among Business Women of Achievement," available for $50 from the National Foundation for Women Business Owners, 1100 Wayne Ave., Suite 830, Silver Spring, MD 20910-5603; 301-495-4975.

    [Source: "Women Executives Said to Give More," The Chronicle of Philanthropy, November 18, 1999. P.O. Box 1989, Marion, OH 43305; 800-728-2819; e-mail: subscriptions@philanthropy.com.]

    Show me the non-cash gifts! Today's corporate giving is less about money, more about in-kind donations. To improve your chances of getting support from companies, don't just ask for cash. In 1997, 24% of all corporate giving was in non-cash gifts.

    The trend toward non-cash giving helped drop the ratio of corporate giving to earnings from 2.4% in 1986 to 1.1% in 1997, even as total contributions rose to a record $7.25 billion in 1995. For more information, see "Corporate Contributions: The View from 50 Years," available for $180 ($45 for members, and $20 for researchers) from the Conference Board. To order, call 212-339-0345, or e-mail: orders@conference-board.org. Reference publication #1249-99-RR.

    [Source: Share of Company Profits Given to Charity Drops from 2.4% to 1.1% in 11 Years," Debra Blum, The Chronicle of Philanthropy, December 16, 1999. P.O. Box 1989, Marion, OH 43305; 800-728-2819; e-mail: subscriptions@philanthropy.com]

    Does age come before duty? Apparently not. Half of Americans ages 50 to 75 say it's important to volunteer or provide community service during retirement. Helping not-for-profits is second only to traveling on their list of priorities. Older Americans said volunteering makes them feel active, valued and needed, and maintains social connections.

    Charities need to find new ways to recruit seniors, however. Relatively few older Americans actually volunteer. Obstacles include:

  • lack of time
  • too much commitment required
  • difficulty finding activities suited to their skills and interests, and
  • never being asked to help.

    Most seniors said they could give 15 hours a week in community service in exchange for stipends, educational benefits, or reduced prices on prescription drugs.

    For more information, see the report, "The New Face of Retirement: Older Americans, Civic Engagement, and the Longevity Revolution," free from Civic Ventures, 425 Second St., Suite 601, San Francisco, CA 94107; 415-430-0141.

    [Source: "Volunteering is a Priority, Older Americans Say," Grant Williams, The Chronicle of Philanthropy, September 9, 1999. P.O. Box 1989, Marion, OH 43305; 800-728-2819;e-mail: subscriptions@philanthropy.com]

    Don't overlook the value of volunteers. Volunteerism is worth a lot to not-for-profits: Americans volunteered a total of 19.9 billion hours last year -- time valued at about $255 billion. Plus, volunteers tend to donate more to charity.

    Who volunteers? Women more than men -- but the men who volunteered gave slightly more time. And more seniors and minorities are volunteering.

    More than 90% of people asked to volunteer did so. Being asked by a friend or religious leader improves the odds of getting a "yes."

    For more information, see the executive summary of the "Giving and Volunteering in the United States" report, available for $20 ($14 for members) plus $4.50 shipping and handling from Independent Sector, 1200 Eighteenth Street, N.W., Suite 200, Washington, DC 20036; 888-860-8118.

    [Source: "Volunteering Efforts Valued at $255 Billion -- And Rising," Foundation & Corporate Grants Alert, November 1999. Aspen Publishers, P.O. Box 1453, Alexandria, VA 22313-2053; 800-655-5597; fax 301-417-7658; e-mail: customer@aspenpubl.com.]

    Giving: It's our patriotic duty! Americans give far more time, money to charity than residents of nations like Germany, France, others. 75% of Americans say individuals should give to charity; only 49% of Britons feel the same way.

    [Source: "A Christmas Story," The Wall Street Journal, December 17, 1999.]

    Can't get a grant? Ask for a loan, instead. Many foundations make program-related investments (PRIs) to support not-for-profits. PRIs can include loans at below-market rates or other types of investments where the foundation expects to get a return.

    Applying for a PRI is similar to applying for a grant: Find a foundation whose mission complements yours. Ask if they will make a PRI. Then write a proposal outlining your project's purpose, how it supports the foundation's goals, a plan of action, how much money you need, and what you hope to accomplish.

    Remember: PRIs are not grants -- the foundation won't give you the money and then go away. You'll have to sign a contract, and expect the foundation to keep tabs on how the PRI funds are spent.

    [Source: "Help a Charity, Help your Firm," Jennie Phipps, Bankrate.com, August 26, 1999.]

    In fund raising, there's no time like the present. Prospects who say "call me later" are less likely to give. To get potential donors to make a decision now, try these approaches.

  • Determine the reason for the delay. Use this information to figure out how best to follow up.
  • Regroup and ask again. The donor may just need more convincing.
  • Set up a follow-up appointment now.
  • Offer benefits for acting today -- such as inclusion in a published contributor's guide, or donor-appreciation gifts.
  • Explain why it's urgent to give immediately -- such as the opportunity for your group to get matching funds from a big donor.
  • Create a sense of inclusion. Tell about the success of the campaign, and express hope that the donor won't be left out.

    [Source: "Dealing with 'Try Me Again Later' Responses," Successful Fund Raising, sample issue, 1999. Stevenson Consultants, Inc., P.O. Box 4528, Sioux City, IA 51104; 712-239-3010.]

    Funders want you to prove your results. Local grad students can help. Many not-for-profits are daunted by complex program evaluations. But universities in your community may be willing to do your research in order to give students hands-on experience.

    Working with schools can cost less, provide more comprehensive evaluations, and give you more opportunities for interaction and feedback. Students can visit the project site, attend meetings, give timely advice. And their work is monitored by experienced professors.

    Humboldt State University, for example, has conducted outcome studies for schools, the sheriff's department, local agencies and not-for-profits. For more information, contact Jerry Krause, director of the school's Center for Applied Social Analysis through Education: 707-822-6678.

    [Source: "Universities Can Be a Great Resource for Conducting Program Evaluations," Substance Abuse Funding News, October 26, 1999. CD Publications, 8204 Fenton St., Silver Spring, MD 20910; 301-588-6380.]

    Applying for federal grants is similar to other grant seeking. To be successful:

  • Make contacts inside the agency administering the grant. Ask questions. Visit a field office if possible.
  • Don't duplicate existing projects.
  • Demonstrate community support. Get local agencies, public officials to write letters backing your project.
  • Clearly state the problem. Conduct formal and informal needs assessments.
  • Follow federal application guidelines. Include a summary, introduction of your organization, problem statement, project objectives, project design, evaluation plan, future funding strategy, budget.
  • Write a brief, strong summary for your proposal. Cover all key points in a page or less.
  • Get constructive criticism. Ask a third-party to review your draft proposal before you submit it.

    For more information, request OMB circulars A-87, A-102, A-110, A-133, and Executive Order 12732 from the Publications Office, Office of Administration, 725 17th St., N.W., Room 2200, Washington, DC 20503; and the United States Government Manual from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

    World Wide Web Addresses

    Helping.org, a new website established by the AOL Foundation, links donors to charities. The site includes a database of 625,000 charities, a volunteer-matching service, and a one-click donation feature.

    Fax4Free.com allows not-for-profits to send free faxes to members in the U.S., Canada and Australia. Broadcast faxing is available, too.

    The Nonprofit Toolkit offers technology news, reviews, tutorials of interest to not-for-profit organizations.

    Board Cafe is a free, monthly electronic newsletter designed for members of not-for-profit boards, published by CompassPoint Nonprofit Resources and the National Center for Nonprofit Boards. To subscribe, go to the Board Cafe web site.

    Other Resources

    The Foundation Directory -- 2000 Edition. Comprehensive information on the nation's 10,000 largest foundations. Available in print ($215), CD-ROM ($295) and online ($195/year) versions. The Foundation Directory -- Part 2 ($185 for print version) contains information on mid-sized foundations. To order contact the Foundation Center, 79 Fifth Ave., Dept. DN, New York, NY 10003-3076; 1-800-424-9836 or 212-807-3690 (in New York); fax 212-807-3691; or order online.

    Published by Joyaux Associates, 10 Johnson Road, Foster, RI 02825; 401-397-2534.

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