A FUND RAISER'S NEWSYLETTER FROM JOYAUX ASSOCIATES
A periodic bulletin featuring fund raising, management, and board information.
April 1996
Net new donors and volunteers: Get online. Computer users say they would give and volunteer more if they could find information about not-for-profits on the Internet. Internet users also want to be able to register electronically for fund-raising events. More than half of computer users said they would be more inclined to give to groups with information available online than to groups with no online presence.

For more information, contact Cindy Shove, Co-Executive Director, Impact Online, 715 Colorado Ave., Suite 4, Palo Alto, CA 94303, 415-327-1389; e-mail: cindy@impactonline.org. Impact Online's World Wide Web address is http://www.impactonline.org.

[Source: The Chronicle of Philanthropy, December 14, 1995; 212-758-1400.]

The Internet is a great source of donor information. Use your personal computer to search online databases of information. Numeric databases include those maintained by Knight-Ridder Information, which include a foundation directory and information on wealthy individuals. Dow Jones News/Retrieval Services Inc. offers full-text searches of major newspapers, business journals and more.

Online service providers like CompuServe also have searchable databases; CompuServe includes information on businesses and the full text of the federal government's Commerce Business Daily.

[Source: "Using Online Databases for Prospect Research", Miranda D. Scott, Fund Raising Management, October 1995. Contact Miranda Scott via e-mail at 75123.1352@compuserve.com or mscott5210@aol.com.]

Make personal contact the cornerstone of your fund-raising efforts. More than 80% of donors say they give money to not-for-profit groups because they are asked by someone they know. Workplace campaigns also are effective: 43% of donors say they give money because they are asked at work.

Don't undervalue the benefit of good media coverage, either: 48% of donors say they contribute to groups they read about or hear about in a news story. But remember, even when media coverage supports your cause, you still have to contact people and ask for the gift.

What does not work for donors? Reading a magazine or newspaper ad asking for money -- only 17% liked this method. Only 16% respond favorably to a television commercial asking for money. 17% said they respond to telephone calls. And just 13% said they might respond if a celebrity asked.

[Source: Independent Sector, Giving and Volunteering in the United States 1994. For a copy of the report, contact John Thomas at 202-223-8100.]

Don't try to sell to donors. Build a relationship instead. Let donors refuse your mailings. Offer them their money back if you don't spend the money the way you said you would. Be available when your donors need to contact you. Be open and honest when things go wrong. Allow donors to share their feelings about your work. Make your thinking donor-based, not organization-based. Keys to world-class donor service include commitment, proper budgeting, consistency, quick response time, personal contact, program promotion and attention to detail.

[Source: "The Future of Relationship Fundraising", Ken Burnett, The Grantsmanship Center Magazine, Spring 1996; 213-482-9860.]

Keep donors loyal by letting them sound off. 33% of donors say their relationship with not-for-profits would improve greatly if they were given the chance to express their views, ideas and concerns to the organization's executives. Donors also want a personal reply to their concerns. Less effective relationship-builders include: sending donors personal letters written by staff members; sending donors confidential information about the not-for-profit; and referring to donors as members or partners rather than friends or supporters.

[Source: "Communications and Special Events: How Donors React", Barna Research Group and the Russ Reid Company. Reported by the Chronicle of Philanthropy, February 9, 1995. 212-758-1400.]

Typical donors differs from the average American. Donors are more likely to be married, women, white, college graduates, and older (the median age of donors is 48 years). People aged 30 to 49 represent 47% of all donors. Donors have a median household income of $39,100, compared to $31,200 for the average American family.

[Source: Russ Reid Company, 2 North Lake Avenue, Pasadena, CA 91101, 818-449-6100. Reported in Philanthropy Trends That Count, December 1995, Vol. 3, Issue #4; 800-655-5597.]

Improve the power of your communications. Keep your writing simple. Make your publication look easy to read. Tell the whole story in your headline and/or captions. Make the article interesting. Use fewer, more powerful words. Start by answering the question, What's in it for me? And remember, me refers to the person reading the communication.

[Source: Ahern to Bousquet, Marketing & Employee Communications, 95 Sockanosset Crossroad, Cranston, RI 02920; 401-464-4222.]

Help yourself. Encourage employers to support community service. Your volunteers can encourage their employers to reward employee volunteerism. Levi Strauss Co. donates up to $1,500 per year to not-for-profits where employees volunteer. Atlantic Richfield Company (ARCO) provides a two-for-one match for contributions made by employees or retirees.

New York ad agency D.D.B. Needham gives employees time off to perform community service, and Baltimore spice maker McCormick & Company, Inc., encourages employees to work one Saturday per year as Charity Day: Employees donate their day's pay, and the company matches the donations. Such programs reflect positively upon both the individual and the organization.

[Source: 1001 Ways to Reward Employees, Bob Nelson, Workman Publishing, New York; 1994.]

Consider high school students as volunteers. Two-thirds of students in grades 9 through 12 said they endorse mandatory community service as a condition of receiving a diploma. Students also believe that young people and adults devote only an average or poor amount of time to volunteer work.

[Source: "The Prudential Spirit of Community Youth Survey: A Survey of High School Students on Community Involvement". For a free copy, contact Scott Peterson, Director of Issues Management, The Prudential, 751 Broad St., 16th Floor, Newark, NJ 07102, 201-802-6916.]

Don t just satisfy donors; delight them! Give supporters something they didn't even know they wanted until they saw it. Anticipate donor needs, and fulfill them in a timely fashion.

[Source: "Innovate! Straight Path to Quality, Customer Delight, and Competitive Advantage", Paul Schumann, et. al., McGraw-Hill, New York, 1994. Reported in Philanthropy Trends That Count, June 1995, Volume 3, Issue #2; 800-655-5597.]

Are gambling events popular for generating revenues for not-for-profits? You bet. Groups raised an estimated $1 billion through gambling events in 1994, representing 12% of total gambling revenues. Gambling events included bingo, raffles, casino nights and pull-tab games. Prizes paid to winners account for 70% to 80% of revenues, however, and taxes, licensing and overhead also take a bite.

Free copies of the "1994 Report on Charity Gaming in North America" are available from the National Association of Fundraising Ticket Manufacturers, P.O. Box 2385, Bismarck, ND 58502, 701-223-1660. [Source: "Charities Get 12% of Money From Gambling Events", John Murawski, The Chronicle of Philanthropy, September 21, 1995; 212-758-1400.]

Planning a merger with another agency? Tackle the hard issues early. Discuss composition of the new board and appointment of an executive director. Set specific time limits for what needs to be accomplished. Moving too quickly can strain staff, but moving too slowly can hinder fund raising and prolong a state of anxiety. Strike a balance.

Test alliances in advance. Stay above petty squabbles and remain focused on mission. Elements of both groups should remain intact to preserve workplace culture and history. Commemorate the end of the old organizations in addition to celebrating the beginning of the new alliance.

[Source: "Some Tips to Keep in Mind for Charities Planning a Merger", Jennifer Moore, The Chronicle of Philanthropy, January 26, 1996; 212-758-1400.]

Learn the differences between your young and older donors. Young donors demand more information from not-for-profits. Donors under age 30 want access to your financial reports and strategic plans before deciding whether to get involved. Baby busters also are more likely to be plugged into the Internet. Nearly half say they would feel more connected to not-for-profit groups that have an online presence. Videocassettes, birthday cards and newsletters also appeal to younger donors as ways for not-for-profits to keep in touch.

Younger donors give less to charities than older donors, and are less likely to support health-care or medical research organizations. Like older donors, however, most baby busters give to places of worship.

The report, "The Heart of the Donor: A Lifestage Analysis" is available by contacting Fabian Robinson, Marketing Coordinator, Direct Marketing Association Non-Profit Council, 1120 Avenue of the Americas, New York, NY 10036-6700, 212-768-7277, ext. 1611. The report is free to DMA Non-Profit Council members, $10 for other DMA members, and $20 for all others.

[Source: "Baby Busters Demand More From Charities, Study Finds", Vince Stehle, The Chronicle of Philanthropy, February 8, 1995; 212-758-1400.]

For big-dollar, long-term income, consider Charitable Remainder Trusts (CRTs). Donors provide a life income gift to a not-for-profit group, typically backed by stock worth $100,000 or more. CRTs make up 19% of all life income gifts, but account for two-thirds of annual gift dollars. Most CRTs are written in the fourth quarter of the year for the lifetime of one or two beneficiaries.

[Source: Charitable Remainder Trusts: Characteristics of Selected CRTs Established in 1992, National Committee on Planned Giving, 1994. Report available for $10 from NCPG, 310 N. Alabama, Suite 210, Indianapolis, IN 46204. Reported in Philanthropy Trends That Count, June 1995, Volume 3, Issue #2; 800-655-5597.]

Can you give companies the return they want? Companies want a return on their charitable investments. Firms are replacing traditional corporate philanthropy with strategic investments. Donations to not-for-profits are being integrated with business goals. The aim: maximize benefits to the firm in terms of corporate image, employee morale and customer loyalty.

Corporate donors link philanthropy with their marketing, public relations and government relations departments. Firms focus gifts on themes and categories aligned with business goals and measure the impact of donations on the firm s bottom line. Corporations promote non-cash support and recycle money by making no-interest loans to charities rather than grants.

[Source: Corporate Giving Strategies That Add Business Value, The Conference Board, 845 Third Ave., New York, NY 10022-6601, 212-339-0345. Copies of the report are $100 ($25 for members) plus $5.50 for shipping and handling.]

Test yourself against these standards: Are you accountable? Not-for-profit organizations hold a public trust to improve the quality of life. State your mission and goals clearly. Share information about your governance, finances and operations.

Accountable organizations are responsible for:

[Adapted from The Accountable Not-for-Profit Organization, developed by participants at Accountability and Nonprofit Organizations, a think-tank program co-sponsored by the National Assembly of Voluntary Health and Social Welfare Organizations and the National Health Council, June 24-25 at the Mandel Center for Nonprofit Organizations, Case Western Reserve University.]

Donors are giving less to social service agencies. Overall donations to social service groups fell 6.1% in 1994, while donations to international aid organizations increased 18.1% over 1993. Giving to arts and cultural organizations increased only 1.2% between 1993 and 1994.

Overall charitable giving increased 3.6% in 1994, to a total of nearly $130 billion.

[Source: Giving USA 1995, The American Association of Fund-Raising Counsel, 25 W. 43rd St., New York, NY 10036, 800-462-2372.]

More Information

Planned Giving Today. Monthly newsletter featuring how-to-articles, reports, marketing ideas, case studies, and more for gift-planning professionals. Annual subscriptions are $155; contact Planned Giving Today, 2315 NW 198th St., Seattle, WA 98177, 800-KALL-PGT or 206-546-8505.

Nonprofit Software Plus. Bimonthly newsletter features information on technology resources and materials for not-for-profit organizations. Includes software reviews, consumer information, online funding resources and informtaion technology products. Special half-off price of $60 for introductory subscribers. Contact Kathleen Neidlinger, Ph.D., Nonprofit Software Plus, P. O. Box 8710, San Jose, CA 95155-8710, 408-275-9012; fax 408-275-6362; e-mail: kathylou2@aol.com.

Assessment of the Chief Executive: A Tool for Boards and Chief Executives of Nonprofit Organizations. Instructs not-for-proft organizations on conducting humane, constructive evaluations of their chief executive officer. Includes a questionnaire, self-evaluation form and information on diskette as well as in print. Available for $49 plus $6 shipping and handling from the National Center of Nonprofit Boards, Publications Department, 2000 L St., N.W., Suite 510-F, Washington, D.C. 20036-4907, 202-452-6262; fax 202-452-6299.

Games for Fundraising. Book by William Czuckrey offers a wide selection of entertaining fund-raising ideas, including information on carnival games, auctions, and raffles. Step-by-step instructions on building, setting up and operating each game are included. Available for $24.95 prepaid by calling 800-746-3275.

National Guide to African-American Funding. Directory lists more than 60 private and community foundations, 30 corporate foundtions, and 35 religious funders with a major interest in funding African-American projects. Includes important information about foundation goals, contacts, and restrictions. Appendix list additional 50 foundations that do not consider African-American programs a priority, but nonetheless make grants in this area. Available for $35 from Ecumenical Resource Consultants, P. O. Box 21385, Washington, D.C. 20009-0885, 202-328-9517.

Professional Literature Available from Joyaux Associates:

What is Fund Development? Descriptions of tasks ... skills and knowledge needed ... salaries ... failures ... and hints for success. Excerpted from "Giving RI : 1992 Charitable Giving in RI". $10 prepaid. Joyaux Associates, 10 Johnson Road, Foster, RI 02825; (401) 397-2534; fax (401) 397-6793.

Gift Management Systems and Information Needs for Fund Development. Manual with sample fund-raising reports, donor gift histories, and a description of information necessary to make your fund-raising decisions. $25 prepaid. Joyaux Associates, 10 Johnson Road, Foster, RI 02825; (401) 397-2534; fax (401) 397-6793.

How You Can Enable Your Volunteers. Description of functions and skills to help your volunteers fund raise and govern. $10 prepaid. Joyaux Associates, 10 Johnson Road, Foster, RI 02825; (401) 397-2534; fax (401) 397-6793.

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