A FUND RAISER'S NEWSYLETTER FROM JOYAUX ASSOCIATES
A periodic bulletin featuring fund raising, management, and board information.
Summer 1998
"Young friends" groups can raise cash and visibility. Many not-for-profits have set up self-governing friends' groups. Young professionals are targeted. Socializing and networking are benefits for members. And the groups increase awareness of the charity's goals and objectives, build a base for future support, and raise money. Groups also provide a pool of volunteers.

Development personnel act as a liaison with friends' groups. One typical group, affiliated with the Smithsonian Institution, has 1,500 dues-paying members. Ages range from 25 to 45. Most are single. They raised $135,000 in 1997 and also operate a Web site. For more information, visit the site at http://www.si.edu/tsa/yb.htm.

(Source: "Cultivating Future Supporters Raises Cash and Creates Pool of Volunteers," Fundraising Ideas That What Work, April 1998. CD Publications, 8204 Fenton St., Silver Spring, MD 20910, 301-588-6380).

The IRS is watching insider transactions---you should, too. New tax law punishes not-for-profits when compensation and benefits paid to insiders are not "reasonable." Groups can face added taxes if transactions are not:
  • approved by the board;
  • backed by independent, comparable data or valuations; and/or
  • fully documented.

    To avoid trouble, not-for-profits need to:

  • include a conflict-of-interest policy in their bylaws;
  • craft a formal process for identifying and dealing with insider transactions and conflicts of interest; and
  • fully document all transactions with board members, staff and other insiders.

    (For more information, contact Monti, CPA, 387 Charles St., Providence, RI 02904-2249, 401-521-1080; Internet: http://www.monticpa.com) .

    Tell prospective board members what you expect from them---in advance. If candidates don't agree, don't nominate them to the board. Find another place---a committee, for example---for people who want to help, but cannot commit to board-level expectations.

    Board members' responsibilities should include:

  • being an advocate for the organization;
  • regularly attending board meetings and participating in discussions;
  • serving on committees;
  • staying informed about the organization's activities;
  • taking part in activities such as programs and fund raisers;
  • cultivating community support;
  • using their personal and professional skills to benefit the organization;
  • making a personal monetary contribution annually;
  • helping with fund development; and
  • disclosing any potential conflicts of interest.

    P.S. Remember to evaluate board member performance annually.

    (For more information, 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)

    Your nominating committee's work shouldn't begin and end with finding board candidates. The committee needs to:
  • draft board and committee job descriptions;
  • lead and guide the candidate search and nominating process; and
  • encourage board understanding and participation in the process.

    The committee needs to work with the board, staff, and other committees to identify organizational needs and find the best candidates to fill them.

    Other tasks include:

  • developing a process for periodic assessment of board operations and individual board members;
  • recommending committee chairs; and
  • providing orientation for new board members.

    The nominating committee should have about 5 members, including at least 2 members who are not board members.

    (For more information, 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)

    Help is available---if you ask. A majority of people say they would likely volunteer if asked. Professional commitments and family obligations are the leading obstacles to volunteering. But volunteerism rates are up from five years ago.

    50% of Americans say they volunteer. Most say they do charity work because they enjoy it or because it gives them satisfaction. 33% of Americans volunteer 10 hours or more weekly.

    Worldwide, volunteers' top social or health concerns were feeding the hungry, homelessness, AIDS, cancer and child abuse.

    (For more information, request a summary of the Lions Clubs' Global Study on Community Service by contacting Jahn Marie Parise at Ketchum Public Relations: 312-228-6846. Source: Lions Clubs International.)

    Use e-mail to communicate with your supporters. Up to 130 million people are using e-mail. Not-for-profit groups can use e-mail to:
  • send out newsletters;
  • reply to inquiries;
  • circulate action alerts;
  • survey members;
  • invite supporters to special events;
  • build Web site readership;
  • process address changes, requests for materials, and other 'housekeeping' chores; and
  • solicit donations.

    E-mail is quicker and cheaper than traditional mail. And it can increase response rates when used in conjunction with regular mail and phone contacts.

    One major not-for-profit found that 18% of its donors used e-mail daily.

    But be careful. E-mail is not the right tool for everyone. Not all donors have e-mail or computers. And many Internet users find junk e-mail especially offensive.

    (Source: Fundraising On-line [http://www.fundraisingonline.com]; reprinted from Successful Direct Mail & Telephone Fundraising, 800-217-7377; e-mail: mwosi@strathmoor.com)

    Is your accounting department ready for EFT? Starting January 1, 1999 (delayed from July 1, 1998) many small- and mid-sized not-for-profits will be required to pay their taxes to the IRS via electronic funds transfer (EFT). Groups that paid more than $50,000 in payroll and federal income taxes in 1995 or 1996 are affected. Those that don't use EFT after July 1 face a 10% IRS penalty.

    To make EFT payments, not-for-profits need to enroll in the IRS' Electronic Federal Tax Payment System (EFTPS). For more information, you can download IRS Publication 966, EFTPS: Answers to the Most Frequently Asked Questions, from the IRS Web site: http://www.irs.ustreas.gov, or call 800-945-8400. To speak to a Treasury Department financial agent, call 800-555-4477.

    (Source: "Electronic Tax Deposit Deadline Looms for Small- and Mid-Sized Nonprofits," Nonprofit Executive Tax Letter, April 2, 1998. Harcourt Brace Professional Publishing, 6277 Sea Harbor Drive, Orlando, FL 32821, 800-831-7799; Internet: http://www.hbpp.com)

    We've said it before, but we'll say it again: Make individuals the primary focus of your fund-raising efforts. In 1977---like every other year---individuals made the vast majority of charitable donations. 76.2% of donations came from individuals---plus the 8.8% that came from bequests. Foundations gave 9.3%, while corporations gave 5.7%. Companies are giving a smaller percentage of their income than a decade ago.

    Americans gave a total of $143.6 billion to charity last year, up 7.5% from 1996. Why? A strong economy, plus a number of high-profile gifts that spurred others to give.

    Favorite causes were religious groups and congregations, education, health, civil rights and environmental issues: all saw increases in donations last year. Donations to arts and cultural groups fell 1.8%, however.

    Note: Changes in study methodology have lowered giving estimates for 1997 and 1996. Estimated total donations for 1996, originally reported as $150.7 billion, has been adjusted to $133.5 billion.

    For more information, see Giving USA 1998, available for $49.94 plus $6 shipping and handling ($54.95) for the print version, or $135 plus $6 shipping and handling ($141) for the CD-ROM version, from the American Association of Fund-Raising Counsel's Trust for Philanthropy. To order, call 888-5-GIVING, write to 25 West 43rd St., Suite 820, New York, NY 10036, or complete an order form on the group's Web site: http://www.aafrc.org

    (Source: The Associated Press, May 27, 1998.)

    Looking for funding for overseas projects? European foundations give 31% of their grants for medical-related programs. Medical research is another top priority. Also popular: grants for education and training, arts and culture, social sciences, and housing and community development.

    34% of grants supported capital projects. Only 3% went for general operating support. About two-thirds of grants by European foundations were made in the nation where the foundation was located.

    For more information, see the European Grants Index, available for $55 prepaid from the European Foundation Centre, 51 rue de la Concorde, B-1050 Brussels, Belgium; 011-32-2-5128938; fax 011-32-2-512-3265; e-mail: info-pubs@efc.be; Internet: http://www.efc.be

    (Source: "Health Care and Medical Research Top Issues for European Foundations, Stephen G. Greene, The Chronicle of Philanthropy, February 12, 1998. P.O. Box 1989, Marion, OH 43305; 800-728-2819; fax 202-223-6292.)

    Help donors help themselves. Make donor service a benefit of giving to your group. For example, many donors don't know how to deduct the value of gifts of property on their taxes. Send them information. Then direct them to their financial advisor for more guidance.

    The IRS says donors may deduct the fair market value of gifts like cars, clothing, and household goods. To calculate an item's value, donors must consider its original cost, the sale of comparable items, the item's replacement cost, and expert opinions.

    Tell your donors about the IRS' "bible" on property donations: Publication 561, Determining the Value of Donated Property. The book is available free by calling 800-829-3676, and also can be downloaded from the IRS' Web site: http://www.irs.ustreas.gov

    (Source: "What the IRS Says About How Taxpayers Should Vale Gifts of Property," The Chronicle of Philanthropy, March 26, 1998. P.O. Box 1989, Marion, OH 43305; 800-728-2819; fax 202-223-6292.)

    Don't stereotype gay donors. Apart from AIDS-related giving, homosexuals give equally to so-called "gay" and "non-gay" causes. Gays, lesbians, bisexuals and transgender individuals gave an average of 2.5% of their household income to charity---higher than the national average.

    Average gifts were $503 to gay causes; $524 to non-gay causes, and $166 to AIDS charities.

    For more information, see Creating Communities: Giving and Volunteering by Gay, Lesbian, Bisexual, and Transgender People. The report is free from the Working Group on Funding Lesbian and Gay Issues, 116 East 16th St., New York, NY 10003; 212-475-2030.

    (Source: "New Survey Details the Giving Patterns of Homosexuals," Marilyn Dickey, The Chronicle of Philanthropy, March 26, 1998. P.O. Box 1989, Marion, OH 43305; 800-728-2819; fax 202-223-6292.)

    May we help you?

    Build a focused and productive board? Re-engineer, re-mission, re-purpose your organization? Crash test the feasibility of a capital campaign? Raise more money through the mail? Establish an endowment? Increase planned giving? Woo hearts and minds using public relations? Build your organization's image and reputation locally, regionally, nationally? Attract new donors? Increase the average gift? Upgrade from an annual appeal to a multi-ask, year-round solicitation program? Make your events irresistible to corporate sponsors and crowds? Get the press to notice your existence? Professionalize your fund raising or marketing staff?

    Expert help is just a phone-call away.

    Joyaux Associates offers not-for-profit of any size expert assistance in many key areas such as strategic planning, board development, and fund development. Through its affiliated (and award-winning) marketing communications firm, Ahern to Bousquet, Joyaux delivers outstanding results in direct mail creative and program planning, public relations, event planning and implementation, marketing, advertising, writing and design of printed materials (newsletters, brochures, etc.)

    NEW: hands-on, personalized, professional training for you, your staff, or your board.

    In just a few hours of intensive training, you'll learn the techniques and secrets that guarantee improved board and staff effectiveness, better donor relations, increased media coverage, and more dollars raised. We actually help you develop the product---whether it's a fund development plan, board orientation, evaluation tools...whatever.

    Topics include: creating the best fund development plan...evaluating board performance...cultivating relationships with donors...creating the perfect newsletter...writing the perfect direct mail letter...building good press and public relations...event marketing...writing an effective marketing plan...and more...ALL custom-tailored to your organization's special needs and situation!

    Who we are...

  • Simone P. Joyaux, ACFRE, is one of the country's top-ranked fund-raising professionals. She has 23 years experience working with not-for-profits of every size and stripe. Now celebrating its 10th year, Joyaux Associates has helped hundreds of clients. In 1997, Aspen published her book Strategic Fund Development: Building Profitable Relationships that Last. An inspiring presenter, she travels frequently to speak about fund development, planning, and organizational development.

  • In 1998, IABC, the world's largest association of professional communicators, honored Ahern to Bousquet, Inc., with its top international award for not-for-profit media relations: the Gold Quill of Excellence, recognizing the firm's extraordinarily successful work promoting Roger Williams Park Zoo. A2B's fund-raising clients have included the Lifespan hospitals, Bryant College, the National Association of EMTs, Children's Aid & Family Services (NJ), etc. Principals are Lisa Bousquet, APR, and Tom Ahern, ABC. You can contact Joyaux Associates by:

    Phone: 401-397-2534
    Fax: 401-397-6793
    E-mail: spjoyaux@aol.com

    Pointers
  • Back to More Selections of A Fund Raiser's Newsyletter
  • Back to Current Awareness Tools (Public Access)
  • Back to Grants and Related Resources Home Page
  • Back to Jon Harrison's Home Page
  • Back to MSU Libraries Home Page
    		•

    Assistance Requested
  • Thanks for visiting The Grants and Related Resources Home Page. This site is continuously updated and expanded, so check back soon for the latest changes.

  • If you have any comments, notice any glaring inaccuracies, or would like to forward any relevant information concerning this Home Page, please send e-mail to: Jon Harrison

    • Standard Disclaimers
  • The "links" found in this web page are provided as a courtesy for grants information seekers, but we cannot vouch for or take responsibility for information contained in any beyond those maintained by the Michigan State University Libraries.
  • MSU is an Affirmative Action/Equal Opportunity Institution.

    • Ownership Statement
    Jon Harrison : Page Editor
    Funding Center Supervisor
    Social Sciences Collections Coordinator
    Michigan State University Libraries
    100 Library
    E. Lansing, MI 48824-1048
    Voice mail: (517) 432-6123, ext. 123
    Fax: (517) 432-8050
    Last revised 01/22/99

    This page has been visited times since June 1, 1996.