A FUND RAISER'S NEWSYLETTER FROM JOYAUX ASSOCIATES
A periodic bulletin featuring fund raising, management, and board information.
Spring 1998
Always meet with potential funders before submitting a proposal. Simply reading the foundation’s application guidelines is not enough. Guidelines sacrifice nuance and depth for brevity.

First, research the foundation’s grant-making history and funding priorities. Read the funder’s application guidelines and annual report carefully. Then meet personally with foundation officers. If you can’t arrange a personal meeting, call. Put a human face or voice on your group.

During the meting, ask questions about the foundation that aren’t answered in their prepared materials. Then test the waters: ask foundation officers if a proposal from your organization would be appropriate. Only submit a proposal if the answer is yes.

For a free handout on proposals, contact Simone P. Joyaux, ACFRE, Joyaux Associates, 10 Johnson Road, Foster, RI 02825, 401-397-2534; fax 401-397-6793; e-mail spjoyaux@aol.com.

Lions and Kiwanis and Elks, oh my --- Get them on your side! Civic and community groups can support your not-for-profit organization with grants and volunteers. They also provide access to the local business community and all-important individual donors -- the source of 88% of all charitable donations.

Best approach: give a presentation at the group’s weekly or monthly meeting. Civic groups are always looking for good speakers.

Source: Children & Youth Funding Report, November 13, 1997; CD Publications, 8204 Fenton Street, Silver Spring, MD 20910; 800-666-6380; fax: 301-588-6385; e-mail: cdpubs@clark.net

Instead of Muzak, give callers the perfect pitch while they hold. On-hold messaging gives your not-for-profit another way to connect with prospects. Messages provide information and generate support while callers wait to be connected. This low-cost marketing tool also keeps impatient callers from hanging up.

About 450 companies now use on-hold messaging. An estimated seven of 10 callers are put on hold when they make a phone call.

Source: U.S. Airways Attache, October 1997.

Use every opportunity to communicate with the public. Another idea: Customize your fax cover sheets to include a few facts about those you serve. Or, list your core services.

Offer your donors a catalog full of giving options. Not-for-profits can use catalogs to generate income and provide services to clients. Catalogs also provide a fresh way for donors to give.

One mission-related catalog offers a chance to give the gift of prenatal care to a woman in Bangladesh. Another allows gift-givers to send a llama to a poor family in Bolivia. The catalogs list the cost of each gift and explain its significance. Catalogs provide unique gift ideas-and the solution to shopping for the person who has everything.

Source: "Charities Adopt Savvy Tactics of Catalogs," The Wall Street Journal, December 23, 1997.

Habla Espanol? By the year 2030, nearly 20% of the U.S. population will be Hispanic. Is your group ready for this change? Not-for-profits will need more Spanish-speaking staff. Organizations will need to make sure that their charitable appeals are culturally appropriate.

Groups that focus solely on white America may see their support fall in the future. Whites make up 73% of the U.S. population today, but will be only 61% of the population by 2030. Demographic shifts will affect urban charities first. Already New York City’s population is 39% Hispanic, 26% black, and 35% white.

Source: U.S. Airways Attache, October 1997.

Here’s a fine way to raise money. Police in Castle Rock, Colorado give speeding motorists the option of having their fine donated to the Salvation Army. Or, the driver can donate a gift to the charity of equal value to the fine. Ask your police department to do the same.

Other entities that charge punitive fees-like banks and utility companies-might also be interested in a program that puts a happier face on an unpopular policy.

Source: "Colorado Cops Collar Cash for a Cause," The Chronicle of Philanthropy, Nov. 13, 1997; 800-347-6969.

Check out donation coupons! Ask stores in your community if they would sponsor a donation coupon display for you.

Supermarkets and drugstores use displays with bar-coded coupons to encourage shoppers to donate to anti-hunger groups. Customers’ shopping bill. The program makes giving simple.

For more information, contact Michael Martin, manager of public relations and marketing, Food Industry Crusade Against Hunger, 800 Connecticut Ave., N.W., Washington, DC 20006; 800-307-3237.

Source: "Charities Cash in With Small Donations From Shoppers," The Chronicle of Philanthropy, November 13, 1997; 800-347-6969.)

Engage your donors with a gift registry. Like prospective brides and mothers-to-be, not-for-profits can make gift-giving easier by registering with a local retailer. Groups can register their “wish list,” then let supporters know what’s needed.

A gift registry gives donors a change to go shopping and give directly. Donors appreciate knowing exactly where their money is going. And giving clothing, furniture, supplies and other necessities may help donors feel more involved in the group-leading to continued support in the future.

Source: Substance Abuse Funding News, November 24, 1997; CD Publications, 8204 Fenton St., Silver Spring, MD 20910, 800-666-6380.

Watch those fund-raising costs-and make sure your accountant does, too. New rules from the American Institute of CPAs mean a greater percentage of your fund-raising expenditures may be reported as costs. And high fund-raising costs could hurt your group’s image with the press, and bar your group from taking part in United Way campaigns and the Combined Federal Campaign.

Your accountant needs to be up-to-date with the new rules on fund-raising cost accounting. You and your CPA should review your fund-raising costs.

Contact the AICPA for its Statement of Position on "Accounting for Costs of Activities of Not-for-Profit Organizations and State and Local Governmental Entities that Include Fund Raising," 1211 Avenue of the Americas, New York, NY 10036, call 800-862-4272, or go to the web site at http://www.aicpa.org.

Source: Perspectives on Not-for-Profit Organizations, Fall 1997; published by Monti CPA, 387 Charles St., Providence, RI 02904, 401-521-1080.

Keep salaries competitive if you want to retain key staff. Review your local market to make sure your salaries are in line with industry trends.

The average salary of not-for-profit executive directors is now more than $60,000. Fringe benefits added another $10,799 to administrators’ compensation. But average salaries vary widely by region: in New England, the average is $62,472, while in states like Kentucky, Tennessee, Alabama and Mississippi, administrators average less than $55,000 per year.

Other factors affecting salaries include the size of the not-for-profit, budget, applicant experience and gender, type of organization (arts, education, health, human services, etc.) And community size.

For more information, see the 1998 Report on Executive Director Compensation by Aspen’s Board & Administrator newsletter, Aspen Publishers, Inc., 100 North Third St., Box 226, Akron, OH 51001, 712-568-2418; fax 712-568-3427.

A new law protects your volunteers. But it doesn’t mean your group is safe from lawsuits. The federal Volunteer Protection Act can keep volunteers from being sued for helping not-for-profit organizations. But Board members can be sued if they commit crimes, are negligent or reckless, or disregard public or personal safety. Not-for-profit organizations still need to insure themselves against such lawsuits.

For a copy of the new law, send a self-addressed, stamped envelope to "Volunteer Protection Act", B&A, Box 226, Akron, OH 51001.

Source: Aspen’s Board & Administrator, November 1997. Aspen Publishers, Inc., 7201 McKinney Circle, Frederick, MD 21704, 800-638-8437.

Have you developed a relationship with your local community foundation? Community foundations have more money than ever to donate: assets grew 28% in 1996 alone. Community foundations give to support local groups and many different kinds of programs and projects.

Want a grant? Find out how your local community foundation perceives the needs of your community. Or, educate the foundation about a need they may not have identified. Then show the foundation how your group addresses these needs.

Besides making grants, community foundations can also link your organization with other local not-for-profits and donors. The foundation can provide invaluable advice on other grant seeking and proposal writing.

Total assets of community foundations topped $2 billion in 1996. For more information, see the annual survey of community foundations conducted by the Columbus Foundation, available online at http://www.columbusfoundation.com.

Source: "Community Funds See Assets Grow by 28%; More than $2 Billion Raised in 1996", The Chronicle of Philanthropy, October 16, 1997; 800-347-6969.

Editing or writing a letter, brochure or newsletter? Tips you want to keep posted nearby:
  • be brief: cut all superfluous words.
  • write clearly. Use specifics, not vague adjectives.
  • avoid formality: write person-to-person; beware of stilted language.
  • don’t repeat yourself: try not to start every sentence the same way.
  • get to the point: put the important information at the beginning of the article.
  • make reading easy: each paragraph should address only one subject.

    Source: Communications Briefings, Vol. XVI, no. IV. Capitol Publications, Inc., 1101 King St., Suite 101, Alexandria, VA 22314, 703-548-3800.

    Board members don’t need to be rich to raise money -- just creative. Your board members can donate the proceeds from:
  • holding a fund-raising party at a local bar or restaurant.
  • renting out a vacation home or room (if they own a home).
  • selling frequent-flyer miles or donating them to be raffled off.
  • seeking in-kind donations from local merchants.
  • soliciting gifts from small civic organizations, churches, etc.

    Source: "When Board Members Aren’t Rich," The Chronicle of Philanthropy, October 2, 1997; 8--347-6969.

    Looking for money from corporations? Tailor your appeal to match the company’s business goals. More companies are tying philanthropy to their bottom-line objectives. Many want grant making to be financially justifiable, not just socially responsible. Before you apply, find out what the corporation’s goals are. The company’s annual report is a good place to start. Craft your appeal accordingly.

    For more information, see "The Corporate Contributions Plan: From Strategy to Budget," available from The Conference Board, 845 Third Ave., New York, NY 10022, 212-339-0345, or on the Web at http://www.conference-board.org. The report is $30 for members, $120 for non-members, $10 for colleges and universities.

    Source: The Chronicle of Philanthropy, October 16, 1997; 800-347-6969.

    Internet/World Wide Web Addresses...

    If you just build it, they won’t come. Don’t forget to market your web site!

    Other Web stuff...

  • EyeGive: Company has free program to generate funding for not-for-profit organizations: http://www.eyegive.com

  • List of firms that will create free online "banner" ads for hot-for-profit groups: http://www.linkmedia.com/network/helpers.htm.

    Source: Eric Ward, The Ward Group.)

    More information...

    Changing Experiences of Youth. An exploration of the lives, experiences, attitudes of today’s Youth. Includes essays on racism, violence, incest, anorexia and more. $19.95 prepaid for paperback or $55 prepaid for hard-cover, plus $2 handling charge, from Sage Publications, Inc., 2455 Teller Road, Thousand Oaks, CA 91320-2218, 805-499-9774; fax 805-499-0871; e-mail order@sagepub.com.

    Coping with Cutbacks: The Nonprofit Guide to Success When Times are Tight. Guide to raising funds and stretching budgets during long-and short-term crises. Includes sections on staff modifications, increasing revenues, managing money, improving productivity, more. $25 prepaid plus $4 shipping and handling from the Amherst W. Wilder Foundation, Publishing Center, 919 Lafond Ave., St. Paul, MN 55104 800-659-6024 or 612-659-6024; fax 612-642-2061.

    My world lately...

  • Strategic Fund Development: Building profitable Relationships that Last is already into its second printing, less than a year after publication. To order, call 1-800-638-8437.

  • Recent speaking engagements include Alberta (Canada), Alaska twice, North Carolina and the 1998 NSFRE International Conference in Philadelphia. For the International Conference, developed a special 3-hour forum for advanced executives on building an effective board.

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