A FUND RAISER'S NEWSYLETTER FROM JOYAUX ASSOCIATES
A periodic bulletin featuring fund raising, management, and board information.
Fall 1998
Hot off the press: the new Philanthropy stamp. It took 30 years of lobbying, but the US Postal Service has finally released a philanthropy stamp. And it's a beauty! Use these stamps on your thank you letters and fund-raising appeals. Frame a sheet of philanthropy stamps as donor and volunteer recognition. Tell people about the stamp in your newsletter. Give the stamps as gifts.
Is your group registered with the state? Many states require not-for-profits to register. Only registered groups can solicit contributions. But many organizations don't know they have to register---or forget.
Fines can be imposed if you fail to register. To learn about your state's registration requirements, check with the department of business regulation, secretary of state's office, or attorney general's office.
(Source: Simone P. Joyaux, ACFRE, Joyaux Associates, 10 Johnson Road, Foster, RI 02825, 401-397-2534: fax 401-397-6793; e-mail: spjoyaux@aol.com)
It's legal to lobby---if you do it right. Some tax laws are unclear about how much lobbying your group can do. But a 1976 federal law gives not-for-profits clear guidelines. Groups must file a form with the IRS (Form 5768) to be covered by the 1976 guidelines.
For more information on the 1976 Lobbying by Public Charities Act and other IRS lobbying laws, see Lobbying, Advocacy and Nonprofit Boards , available for $16 ($12 for members) from the National Center for Nonprofit Boards, 2000 L St., N.W., Suite 510, Washington, DC 20036; 202-452-6262; e-mail ncnb@ncnb.org. Independent Sector also produces materials on lobbying: write to 1828 L St., N.W., Washington, DC 20036; call 202-223-8100; or e-mail: info@indepsec.org.
(Source: Board & Administrator Special Report, Aspen Publishers, Inc., 7201 McKinney Circle, Frederick, MD 21704, 800-638-8437.)
Invest wisely in your organization's future. Establish an investment policy to generate added revenues for your programs. Direct your board's finance committee to determine:
how much money you have
how you want to invest it
Tap experienced board members and experts for investment advice. Once established, your investment portfolio should be reviewed regularly by the finance committee.
For more information, see The Nonprofit Board's Guide to Establishing Financial Policies , available for $16 ($12 for members) from the National Center for Nonprofit Boards, 2000 L St., S.W., Suite 510, Washington, DC 20036; 202-452-6262; fax 202-452-6299. Refer to item #130 when ordering.
(Source: Board & Administrator Special Report, Aspen Publishers, Inc., 7201 McKinney Circle, Frederick, MD 21704, 800-638-8437).
Partner board veterans with new board members. Board membership involves learning the group's culture and history, understanding key issues, adapting to a new ways of doing things. Mentors---committee chairs or other experienced board members who provide guidance and advice---can help new members fulfill commitments and contribute productively.
(Source: "Board Members 'Nuture' Newest Members," Board & Administrator, July 1998. $131 per year plus $8.75 shipping and handling from Aspen Publishers, Inc., 7201 McKinney Circle, Frederick, MD 21704, 800-638-8437.)
Tell your donors what they want to know. Donors want information on the services your not-for-profit performs---it motivates them to give more. Also important: how donations are spent.
Donors also are motivated by information on your group's finances; financial accountability is almost as important to donors as the group's purpose.
Many donors say they don't get enough information on finances. Some solutions:
distribute a simple spending pie chart
advertise that you are audited by a major CPA firm
provide financial statements upon request
(Source: "Donors Want to Know Where the $$ Goes!," Fund Raising Mangement, July 1998. Hoke Communications, Inc., 800-229-6700.)
A site visit can seal a major gift---or sink it. Plan carefully before bringing foundation officers, corporate executives, media, donors to your program. Highlight a community problem, then show how you solve it. Invite clients to speak. Bring in outside experts to bolster your case.
To ensure success for your site visit:
Send out invitations well in advance and secure confirmations by phone.
Schedule visits when your site is busy with clients.
If holding an Open House, invite everyone you can think of who might have an interest in attending.
Stress the importance of the event to media representatives; keep them updated about prominent attendees.
Prepare and distribute a one-page fact sheet on your program.
Set an agenda for the visit, including speakers and subject matter.
Make sure your facility is clean.
Use staff, volunteers and clients as guides.
Ensure parking and other amenities are available.
Provide time for one-to-one socialization and refreshments.
Distribute agency materials during the visit. Show a video if you have one.
Have visitors sign your guest book. Follow up with a thank-you note.
(Source: "Don't Wait for Them to Call You: Bring the Funders to Your Door," Development Director's Letter, July 1998. $175 annually from CD Publications, 8204 Fenton St., Silver Spring, MD 20910; 800-666-6380; fax 301-588-6385.)
Big companies support not-for-profits in many ways. Almost all run charity drives involving employees. 80% match employee gifts. And 72% facilitate employee volunteerism.
Three-quarters of Fortune 250 firms give cash grants to not-for-profits where employees volunteer. Many also give in-kind donations. Companies often give matching gifts to groups supported by the company's board members and retirees, as well.
Most (67%) firms give matching gifts to educational programs. Some companies, also will match donations to arts and cultural programs (40%), health and human services projects (20%), and civic and community groups (14%).
99% of one-the-job charity drives include the United Way. 30% of companies also include other funds. Environmental, health and arts charities are especially popular.
More than half of the biggest companies allow employees to volunteer on company time. 70% allow workers to take a paid day off to do charity work.
For more information, send $100 for a copy of the report, "Valuing Employee Involvement" from the Consulting Network, 8608 McHenry St., Suite 1000, Vienna, VA 22180; 703-641-0533; fax 703-641-0534; e-mail: tcncoy@msn.com
(Source: "Companies Make a Big Push to Get Employees to Donate and Volunteer," The Chronicle of Philanthropy, July 16, 1998. P.O. Box 1989, Marion, OH 43305; 800-728-2819; fax 202-223-6292.)
Help the press help you. Positive media coverage can be invaluable. But reporters often are unfamiliar with the not-for-profit community, and unsure how to cover it.
Covering Nonprofit Organizations and Their People: A Journalist's Guide provides examples of stories you can pitch to the press. Use it to explain your work to reporters. The guide is $15 from Independent Sector Publications Center: 888-860-8118.
(Source: "How to Spread the News About Nonprofit Activities," Development Director's Letter, July 1998. $175 annually from CD Publications, 8204 Fenton St., Silver Spring, MD 10910; 800-666-6380; fax 301-588-6385.)
Increase public support: Educate easily by using prepackaged articles. Most people know little about the not-for-profit community. Prepackaged press releases, speeches and oped articles are available free to not-for-profit groups. Take the basic concepts and adapt them to your own area and issues.
Materials are available from the Giving Voice to Your Heart program, sponsored by Independent Sector to increase understanding of not-for-profit issues. For more information, contact Independent Sector at 202-223-8100, or e-mail:
givingvoice@indepsec.org.
(Source: "Media Assistance Available to Nonprofits," Join Together Online, April 7, 1998. Internet:
http://www.jointogether.org)
Are you connecting with all potential partners in your community? Trade and professional groups can help you raise money and donate supplies. They also can lend pro-bono assistance to your organization.
The Wisconsin Automobile & Truct Dealers Association, for instance, helps the Rawhide Boys Rance run a donated-vehicle program. The project raised $40,000 last year. The National Association of Home Builders partners with Habitat for Humanity to build houses. The American Pulpwood Associations, a loggers' group, raised $2.4 million last year for the Children's Miracle Network.
Not-for-profits considering partnerships with trade and professional groups should:
Consider alliances with all kinds of groups, not just those with a natural affinity for your type of work.
Work through donors to build relationships with professional groups they belong to.
Seek partnerships with groups that have adequate financial and staff resources to support your program.
Share project ownership and workload fairly with the partner organization.
Use newsletters (your own and your partner's), postcards and other means to stay in touch with members of partner groups.
Ask partner groups to introduce you to other associations.
Seek in-kind donations.
(Source: "Raising Money by Association," The Chronicle of Philanthropy, July 16, 1998. P.O. Box 1989, Marion, OH 43305; 800-728-2819; fax 202-223-6292.)
Running a bingo or casino night? Don't gamble with your tax liabilities. IRS Publication 3079, "Gaming Publication for Tax-Exempt Organizations," includes information on rules governing gambling income, employment and bookkeeping. Legal ways to avoid paying income tax are explained.
Publication 3079 can be downloaded from the IRS web page http://www.fedworld.gov/taxsear.htm, or is available by calling 800-829-3676.
(Source: Perspectives on Not-for-Profit Organizations, Summer 1998. Published by Monti, CPA, 387 Charles St., Providence, RI 02904-2249; 401-521-1080.)
Don't overlook the 'alternatives' if you're planning a workplace campaign. Employees donate billions to charity through the office each year. Most workplace giving goes to the United Way---donations to the United Way rose 4% to 5% last year. But so-called "alternative" workplace funds are growing faster. Giving to non-United Way charities rose 26.9% between 1991 and 1996.
For more information, see Charities in the Workplace 1997 , available for $25 from the National Committee for Responsive Philanthropy, 2001 S. St., N.W., Washington, DC 20009; 202-387-9177.
(Source: "Alternative Funds' Grow Faster than United Way," The Chronicle of Philanthropy, March 12, 1998. P.O. Box 1989, Marion, OH 43305; 800-728-2819; fax 202-223-6292.)
Internet/World Wide Web Addresses...
Use the Internet to enhance your advocacy efforts. Online fund raising gets more attention. But online advocacy is more effective. Not-for-profits use the Internet to send action alerts to thousands of people. Electronic newsletters keep supporters in touch with organizational activities. Protests, campaigns and lobbying are coordinated via e-mail. And high-quality images of banners, flyers and publications can be downloaded from the World Wide Web.
Biggest beneficiary: small groups on a limited budget. They can contact more people and provide more services, at lower cost, than ever before.
Web sites about online advocacy and lobbying include:
The Benton Foundation: Advocacy on the Net:
http://www.benton.org/Practice/Best/advoc.html
Congress.org: http://congress.org
NetAction: http://www.netaction.org
ONE/Northeast: Activist Toolkit: http://www.onenw.org/toolkit
The Nonviolence Web: How to Use the Internet for Organizing: http://www.nonviolence.org/support
(Source: "Acting Up Online," Paul Demko, The Chronicle of Philanthropy, April 9, 1998. P.O. Box 1989, Marlon, OH 43305; 800-728-2819; fax 202-223-6292.)
Tap into AOL's virtual communities. America Online (http://www.aol.com) includes a number of resources for non-for-profit groups. AOL's HEAVEN (Helping Educate, Activate, Volunteer & Empower via the Net) forum gives visitors information about charities and provides sign-up information for volunteers. Volunteers also can share experiences and chat. Use the keyboard HEAVEN.
AOL's America's Promise forum (keyword: AMERICA'S PROMISE) links youth with mentors, activities, skills training and community-service opportunities. AOL also is providing interactive sites for the Special Olympics and the Kids Patrol missing-children's initiative. Also, the new AOL Foundation is expected to soon begin making awards for education and volunteerism projects.
Interested in online fund raising? Check out Fundraising Online (
http://www.fundraisingonline.com) for news and information on using the Internet to raise money. The site includes an events calendar, links to related sites, and a free e-mail newsletter.
More information...
The Public Interest in Conversion of Non-profit Health Charities. Examines grant making and other issues surrounding foundations created through conversion of not-for-profit hospitals to for-profit corporations. Free from the Milbank Memorial Fund, 645 Madison Ave., 15th Floor, New York, NY 10022; 212-355-8400; fax 212-355-8599.
Nonprofit Governance: The Executive's Guide. Details not-for-profit CEO's roles as manager, caretaker and provider. Includes sample documents and checklists. $79.95 plus $5.95 shipping and handling from the American Bar Association, Publication Orders, P.O. Box 10892, Chicago, IL 60610-0892; 800-285-2221; fax 312-988-6030.
The New England Nonprofit Quarterly. Journal with in-depth articles on entrepreneurship, strategic partnerships, quality improvement, technology, more/ $39 annually from the Massachusetts Health Research Institute, New England Nonprofit Quarterly, Suite 207, 7 Park St., Attleboro. MA 02703; 508-226-0222; fax 508-226-1528; e-mail: nenpq@aol.com.
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Last revised 12/03/98
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