A FUND RAISER'S NEWSYLETTER FROM JOYAUX ASSOCIATES
A periodic bulletin featuring fund raising, management, and board information.
July 1997
Make individual donors your bread-and-butter. Total charitable giving continues to grow -- to $150.7 billion in 1996. Foundations and companies are giving more. But individuals still make 86.5% of all charitable donations, including bequests. Foundations account for 7.8% of total giving; corporations, 5.6%.

Giving by individuals totaled $119.9 billion in 1996, up 6.9% from 1995. Reasons: increased personal income and a booming stock market. Foundation giving rose 12%; corporate giving rose 7.6%.

Health organizations and arts groups are more popular with today's donors. But donations to environmental groups and international-aid organizations declined last year.

The 1996 edition of Giving USA will be available in August. Send $49.95 plus $4.95 shipping and handling to the American Association of Fund-Raising Counsel Trust for Philanthropy, 25 West 43rd St., Suite 820, New York, NY 10036; 800-544-8464.

[Source: "American Gifts Top $150 Billion," The Chronicle of Philanthropy, June 21, 1997; (800) 347-6969.]

Are you enabling your volunteers to do what you want? You must empower your volunteers. Give them the where-withal, opportunity and power to take action, ask questions, and voice opinions. To enable your volunteers: [For more information and a self-assessment, see Strategic Fund Development: Building Profitable Relationships That Last by Simone P. Joyaux, ACFRE, Aspen Publishers, Frederick, MD, 1997; (800) 638-8437.]

Ask your volunteers and their families for gifts. Volunteers give more than non-volunteers. And households where a volunteer lives gives more than households without volunteers. People who are members of any organization are also more likely to give.

[Source: "Overview and Executive Summary: Trends Emerging from the Biennial Surveys on Giving and Volunteering," Independent Sector, 1996; 1828 L Street, N.W., Washington DC 20036; (202) 223-8100.]

Thank all of your donors -- not just the major ones. A simple phone call builds loyalty; it tells the donor he or she is important to you. Send cards at holiday time. Mail a note with a key-ring or a small keepsake that includes your program"s name. Hand-write a thank-you note and enclose it with your newsletter.

Recognize a donor at each board meeting; ask them to talk about why they give. Invite donors to lunch or breakfast. Host donor recognition events. Visit donors at their home or offices.

[Sources: Simone P. Joyaux, ACFRE, Joyaux Associates, Foster, RI; (401) 397-2534; and "Recognize Donors for Their Support," Board Fund Raising Strategies, February 1997; (712) 568-2418.]

Getting creative with your fund-raising? Make sure you follow state and federal regulations. Regulatory agencies have responded to new types of fund raising with increased regulation. Some states regulate specific types of fund raisers, such as duck races. States also scrutinize fund-raising events that incur high expenses, such as telephone campaigns and direct mail.

[Source: "Trends Toward Litigation," William E. Raney, Esq., Board Fund Raising Strategies, February 1997. (712) 458-2418.]

Direct-mail techniques work face-to-face, too! When soliciting any donation, remember this advice from direct-mail guru Art Cone: [Source: "Thoughts from the Copy Corner," Con Squires, Fund Raising Management, February 1997; Hoke Communications, Garden City, N.J.]

What makes a millionaire? Break your own stereotypes! The average millionaire has an annual household income of $131,000. Most are self-employed, work between 45 and 55 hours a week, and are first-generation affluent. Many own practical businesses, such as pest control, paving, or farming.

[Source: The American Benefactor, Spring 1997; 575 Lexington Ave., New York, NY 10022; (800) 856-8659.]

Look for the donor next door. Home based professionals make an average of $34,500 per year, 28% more than the average American worker. Most are women (58%) and ages 36-59. Typical businesses include management consulting, accounting/finance, computer technology, sales, and desktop publishing.

[Source: "Facts on Home-Based Businesses and Electronic Office Equipment," 1996, Russell Marchette, Canon USA, One Canon Plaza, Lake Success, NY 11042; 516-328-5145. Reported in Philanthropy Trends That Count, February 1997.]

Cultivate your future donors. Get them involved as volunteers now. "Baby boomlets" -- children born between 1978 and 1994 -- may not be able to give. But they can volunteer.

The children of baby boomers make up one-third of the U.S. population. Many have been born to dual-income parents under age 30. Surveys find them racially tolerant, interested in the environment, and concerned about drugs, crime and AIDS.

[Source: "Trend Watch," Judith E. Nichols, Contributions, March-April 1997; P.O. Box 336, Medfield, MA 02052-0336; (508) 359-0019.]

Se Habla Espanol? Look to the Hispanic community for support. Too many not-for-profits ignore the Hispanic community. Yet Hispanics will be the nation's largest minority by the year 2000.

Hispanics are increasingly affluent. Nationally, there are 80 Hispanic individuals and families with a net worth of $25 million or more. The number of Hispanic-owned businesses in the U.S. doubled between 1987 and 1992. Businesses owned by Hispanic women represent the fastest-growing business segment in the nation.

[Source: Philanthropy Trends That Count, June 1997; P.O. Box 1453, Alexandria, VA 22313-2053; (800) 655-5597.]

Make it your business to solicit support from small companies. Most small businesses view their community involvement as an important responsibility. One-third say charity is a key role for their business. Just 12% said they have no role to play in supporting their local community. Among small businesses: [Source: KeyCorp Survey of Small Business Sentiment, April 1997. Published by Key Corp Bank, Cleveland, Ohio: (216) 689-4489 or 3647; web address: http://www.keybank.com.]

Get to know your local community foundation -- and make sure they know you. Most areas are served by community foundations. They usually make grants only to local not-for-profits. Community foundations awarded $861.1 million in grants in 1995, up 31.1% over 1994.

For a copy of the Columbus Foundation's "1995 Community Foundation Survey," which includes information on 520 U.S. community foundations, contact the foundation at 1234 E. Broad St., Columbus, OH 43205; 614-251-4000.

[Source: "Community Foundation Growth Suggests Funding Opportunities," Health Grants Funding Alert, April 1997; Health Resources Publishing, 3100 Highway 138, Wall Township, NJ 07719-1442; 908-681-1133.]

Do you have a conflict-of-interest policy? Even the appearance of a conflict can damage your not-for-profit organization

To prevent trouble, adopt a resolution calling on board members to disclose possible conflicts before they arise. Ask board members and staff to sign an annual conflict-of interest statement. Require board members to excuse themselves from discussions where they have a conflict.

Get samples of policies from other community organizations and adapt them to your needs. Make discussion of conflict-of- interest policies a priority at board meetings.

[Source: Board & Administrator, Aspen Publishers, Inc., 7201 McKinney Circle, Frederick, MD 21704; (800) 638-8437.]

Start planning now for the 21st Century. More not-for- profits will be vying for support. Survivors will be those who best identify the needs of their customers and clients, and adapt their services accordingly.

Successful 21st Century not-for-profits will:

Copies of Organizations Serving the Public: Transformation to the 21st Century are free; contact Michele Lowe at KPMG Peat Marwick, 2001 M St., N.W., Washington, DC 20036; (202) 530-6768. Or, send e-mail to lowe@kpmg.com, or visit the company's web site at http://www.kpmg.com.

[Source: "Non-Profit Groups Are Urged to Retool for 21st Century," The Chronicle of Philanthropy, March 20, 1997; (800) 347-6969]

Should you have a home page on the Web? Only if you commit to keeping it fresh, lively and dynamic. If you just build it, they won't come. Don't simply reproduce your newsletter or brochures. Update your web content weekly, even daily. Give visitors a reason to come back time and again.

Use your web page to promote volunteerism and educate donors and the public. The typical web page is not a place to raise money.

[Source: Robert Curley, Principal, Expert Editorial; 275 Beacon Drive, North Kingstown, RI 02852; 401-294-0848]

Internet/World Wide Web Addresses...

Looking for volunteers? Managing volunteers? Here's a selection of volunteerism resources available online:

[Source: "Volunteering: A Compilation of On-Line Resources," The Chronicle of Philanthropy, April 17, 1997; (800) 347-6969.]

More Information...

Healthy Nonprofits: Conserving Scarce Resources Through Effective Internal Controls.
Book shows not-for-profits how to develop effective internal management and financial controls to maximize resources, prevent fraud and waste, and continue their mission. Available for $25 prepaid plus shipping and handling (bulk discounts available) from the Nonprofit Risk Management Center, 1001 Connecticut Ave., N.W., Suite 900, Washington, DC 20036; (202) 785-3891; fax (202) 833-5747; e-mail: info@nonprofitrisk.org

Creating and Using Investment Policies: A Guide for Nonprofit Boards.
Explains the basics of investment, the legal basis for investment theory, the unique nature of nonprofit investment, how to hire an investment manager, and the boards role in investment. Available for $16 prepaid plus $4 shipping and handling from the National Center for Nonprofit Boards, P.O. Box 92294, Washington, DC 20090-2294; (800) 883-6262; (202) 452-6262; fax (202) 452-6299; e-mail: ncnb@ncnb.org. Reference publication #145.

Speaking of Money: A Guide to Fund Raising for Nonprofit Board Members.
Video hosted by ABC News' Hugh Downs explains to board members their role in fund raising; how to work with staff; making a case for support; asking for gifts; and the importance of board members making personal donations to the not-for-profit organization. The 30-minute video and two-page user's guide are $62 prepaid plus $9 shipping and handling form the National Center for Non-profit Boards, P.O. Box 92294, Washington, DC 20090-2294; (800) 883-6262; (202) 452-6262; fax (202) 452-6299; e-mail: ncnb@ncnb.org. Reference publication #125.

The Grassroots Fundraising Series.
Seven-part video series that addresses the specific fundraising needs of grassroots organizations. Includes segments on basic information; the role of the board; how to ask for money; major gifts; direct mail; special events; and cultivating donor loyalty. Price is based on the not-for-profit's ability to pay; loaner sets are also available in some cases. For more information, contact the Headwaters Fund, 122 W. Franklin Ave., Suite 518, Minneapolis, MN 55404; (612) 879-0602; fax (612) 879-0613.

The 1997 Cone/Roper Report on Cause-Related Marketing
Report on strategies for building win-win marketing alliances between for-profit businesses and not-for-profit organizations. Includes statistics on public attitudes toward cause-related marketing efforts. Available for $100 from Cone Communications, 90 Canal St., Boston, MA 02114.

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