A FUND RAISER'S NEWSYLETTER FROM JOYAUX ASSOCIATES
A periodic bulletin featuring fund raising, management, and board information.
May 1995
Use premiums to boost the impact of solicitation letters, says fund-raising guru Jerry Huntsinger. The South African Federation for Mental Health includes a small piece of artwork made by a mental health patient. Impossible to discard thoughtlessly, this premium demands donors attention, particularly donors who have sent money before. Premiums also can make a short fund-raising letter effective.

[Source: The Huntsinger Workshop, Jerry Huntsinger, Successful Direct Mail & Telephone Fundraising, September, 1994; 510-843-8888.]

Do you ask small businesses for gifts? Small businesses give a greater proportion of their income to charity than bigger companies. Businesses with less than 100 employees donate 3 percent or more of their net revenues to charity, compared to about 2.5 percent for medium-sized and large corporations.

[Source: Indiana Business Contributions to Community Service, The Chronicle of Philanthropy, October, 1994; 212-757-8800.]

Try using handwritten notes to win support from former donors. Planned Parenthood of Chapel Hill, N.C., holds six or seven letter-writing parties per year at the homes of board or staff members. 163 two-page letters were sent last year. 102 generated gifts.

For more information, contact Mercer Tyson, Director of Development, Planned Parenthood of Orange and Durham Counties, 93 South Elliott Road, Chapel Hill, NC 27514; 919-929-5402.

[Source: The Chronicle of Philanthropy; 212-757-8800.]

Grab your reader's attention. Think visually when you write. Be descriptive. Paint a picture. Be brief. Tell a story that has a clever beginning, an absorbing middle and an unforgettable ending. Use plain, junior-high-school level language.

[Source: Allen Stahl, NCM International, Inc., 3000 Malmo Drive, Arlington Heights, IL 60005. Reported in Communication Briefings, Vol. XII, No. IV; 703-548-3800.]

Pick an accountant who understands not-for-profit organizations. Your accountant is an advisor, not just an auditor. A good accountant helps you present your financial information positively to donors, funding sources and government agencies, as well as to the IRS. Your accountant should show you how to use your financial statements to raise funds and demonstrate your credibility and viability.

A good accountant also keeps you up to date on tax laws and regulations affecting not-for-profit organizations. Ask yourself: Did your accountant give you information on the 1994 laws regarding gift acknowledgement and quid-pro-quo contributions? And did s/he tell you about the new Financial Accounting Standards Board (FASB) standards, #116 and #117, which your organization must follow?

[Source: Simone P. Joyaux, ACFRE, 10 Johnson Road, Foster, RI 02925; 401-397-2534; fax: 401-397-6793.]

The new toll-free IRS tax help hot-line number is 800-829-1040.

Junk mail gets a bad rap, but most people read the direct-mail solicitations they receive. A majority say they always open every piece of mail they get. Only about 20 percent screen out direct mail without opening it.

[Source: Does Anyone Read Direct Mail?, James Bannister, Successful Direct Mail & Telephone Fundraising, September, 1994; 510-843-8888.]

People receive an average of more than eight appeals for charitable contributions every month. This includes an average of 4.5 appeals by mail, 2.6 by telephone and 1.3 in person.

[Source: NPT/BAMA Research Phone Survey, July, 1994. Reported in Philanthropy Trends That Count; 800-655-5597.]

Make corporate prospects aware of the advantages of becoming donors. Consumers frequently make buying decisions based on companies charitable activities, says a recent survey. Three out of four Americans consider a firm s philanthropic track record before making a purchase. Seventy-four percent of those polled say they sometimes choose not to buy from a company thought to be neglectful of community problems.

Measurement of Consumer Attraction to Socially Responsible Companies is available from the Center for Corporate Community Relations, 36 College Road, Chestnut Hill, MA 02167-3835; 617-552-8045. Single copies are free to Center members; $25 for non-members.

[Source: The Chronicle of Philanthropy, January 12, 1995; 212-757-8800.]

Smart fund raisers examine the differences between male and female donors and tailor their campaigns accordingly. Women, who often control the household purse-strings, have seen their financial clout expand. Still, women remain a hidden constituency to many not-for-profit groups.

One major difference between men and women is communication style. For women, conversation is a means to further understanding of others and being understood themselves. Men believe that conversation should have a definite purpose - to solve a problem. Fund raisers need to take these differences into account.

For more information, contact the National Network on Women as Philanthropists, 1300 Linden Drive, Madison, IL 53706; 608-262-1962.

[Source: From the Editor: Gender Matters, Judith E. Nichols, Ph.D., CFRE, Philanthropy Trends That Count; 800-655-5597.]

The biggest flaw of charity boards is an inability to raise money, says a recent survey. Just 60 percent of board members make a personal contribution, the survey found. Lack of involvement and commitment was cited as a major board weakness by 20 percent of charity organizations.

One solution: Require board members to be donors. Forty percent of not-for-profit groups surveyed require board members to make an average $150 donation per year.

A Snapshot of America s Nonprofit Boards: Results of a National Survey is available for $14 from the National Center for Nonprofit Boards, Suite 510, 2000 L St., N.W., Washington, DC 20036-4907; 202-452-6262.

[Source: The Chronicle of Philanthropy, December 13, 1994; 212-757-8800.]

Make your board responsible for risk management. Risk takes many forms, from lawsuits arising out of workplace issues and accidents, to computer failures and bad publicity.

Prevention is the key to managing risk. Start by consulting with your insurer, attorney and accountant to evaluate your risk.

Consider changing operating procedures and implementing staff training on risk management. Set up a separate corporation to hold title to buildings you have purchased. Avert computer disasters by frequently backing up files. Diversify your funding base to reduce financial risks. Prevention is preferable to relying on insurance to compensate for a loss.

[Source: Risk Management, Perspectives on Not-for-Profit Organizations, Summer, 1994. Monti, CPA, 387 Charles St., Providence, RI 02904; 401-521-1080.]

More than 89 million Americans - 48 percent of the adult population - volunteered in 1993. Volunteers contributed an average of 4.2 hours per week, for an annual total of 19.5 billion hours. Volunteer time was valued at $182 billion.

[Source: Fact sheet, The Independent Sector; 202-223-8100.]

Do you know who your typical donor is? According to a recent study, she is a married, white, college-educated woman living in an urban area. She has no children under age 18 living at home, and resides in a household with a pre-tax income of $25,000 or more. She also is affiliated with a major political party.

The Mind of the Donor is available for $129 from Barna Research Group, Ltd., 647 Broadway, Glendale, CA 91204, 818-241-9300.

[Source: Philanthropy Trends That Count; 800-655-5597.]

Your program contributes more than services to the local community. Let the public know that not-for-profit organizations like yours are an important part of the national economy. The 1.4 million non-profit organizations in the U.S. earn $255 billion, or 6.2 percent of national income. Their 8.7 million paid employees represent 10.4 percent of total employment.

[Source: Nonprofit Almanac 1992-93, published by Independent Sector. Reported in NSFRE News, January, 1995; 703-684-0410.]

Donations to women s programs, while still paltry, are on the increase. Funding for programs for women and girls has increased from $37 million to $184 million in the past decade. Four to five percent of all corporate and foundation grants are now made to women s organizations. For the first time, some companies explicitly earmark funds for such causes.

[Source: Women Make Gains, Craig Smith and Susan Elnicki Wade, Corporate Philanthropy Report, May, 1994; 800-655-5597.]

Evaluate your fund-raising costs. Factors to consider: [Source: The National Society of Fund Raising Executives (NSFRE) Evaluation of Fund-Raising Costs Task Force, October, 1994. Reported in NSFRE News, January, 1995; 703-684-0410.]

Are you seeking funds from large companies? Minority education is the biggest concern of corporate philanthropists. Causes that primarily benefit racial and ethnic minority groups received 17 percent of charity funding from the top 25 for-profit corporations.

[Source: The National Committee for Responsive Philanthropy, Washington, D.C., research published in Hispanic Business, November, 1994. Reported in Philanthropy Trends That Count; 800-655-5597.]

Target your fund raising at people in their 30s, 40s and 50s. People in these age groups give at least twice as much to charity as those who are younger or older.

[Source: America s Best Donors: There s No Predicting To Whom They ll Give, Paul Clolery, The NonProfit Times, Special Report - Giving 95, April, 1995; 609-921-1251.]

Launch a planned-giving campaign, even if you are a one-person shop. Planned Giving for the One Person Development Office is a manual that can help you add planned giving to your development mix. Available for $42 for a three-ring bound version or $94 for the electronic version. Contact Deferred Giving Services, 614 S. Hale St., Wheaton, IL 60187; 708-682-4301.

Do you have questions about fund raising? The Resource Center of the National Society of Fund-Raising Executives (NSFRE) gives you information from more than 3,000 fund-raising reference books and periodicals. The ORCA Database of Foundations, a searchable database of 13,000-plus U.S. foundations, also is available.

Staff are available from 9 a.m. to 5 p.m., Eastern time, to answer your questions. For a minimal fee, staff will prepare information packages in response to more complex inquiries.

NSFRE members receive information packages for no charge and a 50 percent discount on use of the ORCA database. For information on joining the NSFRE chapter in your state, call the NSFRE National Office at 800-688-FIND or 703-684-0410.

More information ...

Giving and Volunteering in the United States: Volume II: Trends in Giving and Volunteering by Type of Charity. Profiles volunteerism between 1988 and 1994. Available from Independent Sector for $35 prepaid ($24.50 for IS members). Contact IS Publications, P.O. Box 451, Annapolis Junction, MD 20701; 301-490-3229.

Organizational Development Tools. Features practical, how-to information and worksheets for groups at all stages of development. Send $25 plus $4 shipping and handling prepaid to ResourceWomen, 4527 South Dakota Ave., N.E., Washington, DC 20017; 202-832-8071.

Managing Volunteers Within the Law and Legal Barriers to Volunteer Service. These two booklets examine legal issues related to volunteerism. Available for $1 each from the Nonprofit Risk Management Center, 1001 Connecticut Ave., N.W., Suite 900, Washington, DC 20036; 202-785-3891; fax: 202-833-5747.

Women and Philanthropy: Three Strategies in an Historical Perspective. Explores the methods that women have used to organize their philanthropy: separatism, assimilation and individualism. Booklet is $5. Contact Kathleen McCarthy, Center for the Study of Philanthropy, Graduate School and University Center, City University of New York, 33 West 42nd St., New York, NY 10036; 212-642-2130.

Planned Giving Today ($155 per year) is a monthly newsletter featuring how-to articles, reports, marketing ideas and case studies for development officers. Contact Planned Giving Today, 2315 NW 198th St., Seattle, WA 98177; 800-KALL-PGT or 206-546-8505; fax: 206-546-6268.

Communication Briefings ($69 per year; 12 issues per year). Provides communication ideas and techniques useful for motivating clients, influencing your peers and winning public support. Contact Capitol Publications, 1101 King St., Suite 110, Alexandria, VA 22314; 703-548-3800; fax: 703-684-2136.

LEAD! How Public and Nonprofit Managers Can Bring Out the Best in Themselves and Their Organizations. Shows managers how to become leaders, enhance their personal influence and create a positive organizational atmosphere. $24.95 prepaid plus $4.95 shipping and handling. Order publication #36 from Volunteer Readership, P.O. Box 221586, Chantilly, VA 22022-1586; 800-272-8306.

Available from Joyaux Associates:

  • What is Fund Development? Description of tasks ... skills and knowledge needed ... salaries ... failures ... and hints for success. Excerpted from Giving RI: 1992 Charitable Giving in RI. $10 prepaid.

  • Fund-raising Guidelines for the New Tax Laws. $10 prepaid.

  • Gift Management Systems and Information Needs for Fund Development. $20 prepaid.

    To order, contact Joyaux Associates, 10 Johnson Road, Foster, RI 02825; 401-397-2535.

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