Monday 26 May 2008

Strategic Fundraising For A Not-For-Profit

In any given community there are a number of organizations that are known as not-for-profits. These not-for-profits go through a number of legal hoops to gain a status of being a 501(c) (3). One of the ways that a not-for-profit structure is different from their for-profit counterpart is the governing boards. The governing board of a not-for-profit receives no remuneration, but still provides governance and fiscal oversight to the operation.

In addition, a not-for-profit functions, in any given community, to serve the needy population. Often these services are provided to the individuals in the community at no cost or based on a sliding fee. Therefore, not-for-profits are an integral part of any community.

However, as of late, there has been a tremendous increase in the number of not-for-profits. Although, there are many advantages to having an increased number of not-for-profits in the community, there is a significant disadvantage. This major disadvantage is the fact that funds are generally limited in any community and the not-for-profit must compete for the same limited charitable dollar.

Therefore, it is important that strategic fundraising be accomplished by not-for-profits to ensure survivability and to meet the needs of their clients. Three specific steps to strategic fundraising include the formation of a development committee, development training and a comprehensive development plan.

Formation Of A Development Committee

A development committee is a group of individuals that are recruited from the community that is served by the not-for-profit. This development committee can be comprised of both board members as well as non-board members.

To attain strategic fundraising the development committee should be comprised of a cross-section of individuals who bring different talents and resources to the mix. Therefore, the development committee should be made up of individuals who know people of wealth or who are people of wealth.

Also, marketing and public relations is an important part of delivering the not-for-profit message to the community to enhance their financial support. Therefore, individuals with marketing or media experience could serve on the development committee or work with the development committee by serving on a marketing committee.

Development Training

In order to be successful at any assigned task, it is important that individuals have the proper training and tools to be successful. Therefore, development staff and volunteers should be adequately trained in development procedures to accomplish strategic fundraising.

This development training can be accomplished by taking advantages of many seminars that are offered to not-for-profit to enhance their fundraising capabilities. Or, if there is no money set aside in the budget, then a possible suggestion of development training is to request training from a non-competing, but successful fundraising not-for-profit.

Comprehensive Strategic Fundraising Plan

Finally, for a not-for-profit to be involved in successful strategic fundraising it is important that the fundraising plan be comprehensive. This simply means that every stream of revenue be explored so that the optimum amounts of money can be raised to fulfill the not-for-profit's mission statement.

There are basically seven streams of revenue that feed into a successful strategic fundraising plan. Those streams of revenue include major gifts, grants, participation in United Way, corporate gifts, special events, gifts-in-kind and mail appeal.

For more information on fundraising do visit http://www.fundraisingideas.com.cn a website that specializes in providing fundraising ideas

How to Run a Fundraising Campaign

What is Your Fundraising Goal?

Many organizations depend on fundraising to get the things they need. People fundraise to get a new swimming pool for their town, or to get special facilities for their school. Sometimes people fundraise to get money for people who need special health care or to help disabled or disadvantaged people. Fundraising is always for a good cause and helps people or organizations in their hour of need.

Once you take on the role of fundraiser, the first thing to do is set a specific goal. Whether it's a large goal or a small one, it needs to be phrased in a way that people can relate to before they will get involved. Naturally the fundraising is to raise money, but what is the money actually for? Does the school need 10 new computers? How would this change the lives of the children attending that school?

The children won't just learn how to play games on these computers, but they will learn skills that they will need all through their working lives. It will benefit them because they will be more employable if they are computer literate. They will learn to do things on their school computers that they would never learn just by having one at home.

Once people can see exactly how they - or their children - would benefit from these computers, they will get behind the project and offer help wherever possible. This goal will benefit teachers by making their work more interesting and easier. It will motivate the children to learn since most children love using a computer.

The next goal - or the sub-goal - will be to find out the amount of money that is needed to achieve our goal. To do this, we need to know how many computers are needed and what sort they will be. Will there be printers and scanners to go with them? Should they be networked? Who will install them and see that they are running properly? There may even need to be blinds installed to reduce the screen glare. The money raised will need to cover all costs, not just the purchase price of the computers. Each sub-goal should be itemized with an approximate cost.

Other questions that need to be addressed for your fundraising campaign are what specific activities you will use to will accomplish your goal, and when they will take place. A timeframe needs to be established, too. If there is no time frame, the fundraising could drag on until everyone is sick and tired of hearing about it. To have specific goal of raising a certain amount of money by a certain date gives people something to work towards and a sense of satisfaction when it is accomplished. Does Your Issue or Organization Look Worthy?

To fundraise successfully, your organization needs to look worthy. How many times have you heard people say they bought something they didn't really want simply because it was for a worthy cause? If your organization looks worthy, then people will support it; if it doesn't they won't. It's that simple.

To get your organization to look worthy in people's eyes, you need firstly to appeal to their emotions. This is done by the correct marketing campaign and by the right communication. You can see this by taking note of campaigns for breast cancer awareness and others that are similar.

Firstly, you need to believe in it yourself. If you are only half convinced in the worthiness of your organization, then that will most certainly show in your manner and your communication. Most people can spot lack of sincerity a mile away and if you are not sincere or convinced of worthiness, you won't be able to convince anyone else.

If you can get the support of someone who has the trust of your community and who also has a high profile, then that will help in the quest for a worthy 'look'. It may be a doctor, a businessman, the town mayor or a politician. It could be the dean of the local college or a well-respected figure with a wider, national profile such as a politician.

It need not be just an individual who will lend worthiness to your cause, but an organization. If you can claim that the local tennis club or Rotary or Lions Club supports you, then that will give you needed 'worthy' status as well.

If your organization does not look worthy, then prospective donors will not be likely to donate. You must be professional at all times by making sure the paperwork is up-to-date and available should any ask to see it. You need to have a person available to talk to anyone who should want information. If all they can get is an answering machine -though these have their place - then they will be put off.

If your fundraising is ongoing, then you need to publish an annual report and have it readily available. Donors need to know that their money is being used wisely, so communications with them is of prime importance. This doesn't mean that they want to be pestered on a daily basis, but they do need to know what their money was used for, and that you are really appreciative of their support. If they can be made to look good through their support, then you will have a happy donor who is willing to lend their status to your organization.

What Tools or Skills do You Have Available?

To complete a fundraiser successfully you need to have access to various tools and skills. Tools you will need could be a computer and the skills to use it. With a computer, you can send email to those who are supporting your cause and to those who are helping you with the job. This will save you a great deal of time and energy - can you imagine phoning 20 or so helpers to alert them to the next meeting? Sure, you can advertise it in the paper, but maybe they don't all subscribe to the paper.

Besides, with a computer, all the information is written down and readily available and it didn't cost you anything more than the time it took to prepare it. A phone is certainly handy for that personal touch and for setting up other appointments, so be sure you have access to one. If you also have an answering machine, you'll find it beneficial for taking those calls while you are out.

Communication skills are important in fundraising; if you don't have them, get hold of someone who does. Look for someone with a bubbly personality, a ready smile and the gift of the gab. Some people say all you need is the mouth, but you also need someone who is tactful and polite. If they are also well liked in the community, then you have a winning combination.

Logical thinking is also a skill much needed in fundraising activities. For a person to get the support of a business or organization they need to be able to verbalize the details in a logical manner. If they jump from the end to the beginning and then explain the middle, the person listening is likely to be confused and consider the proposal unprofessional. Their next step is a refusal!

Another skill that someone on your committee will need is the ability to keep meticulous records. You will need to keep minutes of meetings with a legible record of all the goals and decisions made. Whether this is done on a laptop or by hand in a notebook is up to the person doing it.

Bookkeeping skills are also essential. Since the goal is to raise money, there will naturally be money involved and you'll certainly need a record of who gave what. Even the smallest raffle needs to be carefully recorded so that everyone can see where the money came from and where it went. This will ensure that everything is open and above board. Financial records are a must.

...More to come tomorrow...

Copyright (c) 2008 Justin Alan

If you'd like to get this article in MP3 audio format: Please visit: http://bigimpactaudio.com/fundraising

9 Ways To Convince Donors Your Organization Has Changed (For The Better)

If you work in a school that relies on significant financial contributions to meet your yearly budgetary goals, it is possible that at some point there will be or has been a breakdown in confidence within the organization. As a result, donations have dropped, enrollment has likely declined, and school spirit is in serious jeopardy.In essence, the overall health of the organization is very poor and the prognosis isn't very good.

At these times, if the board of directors wishes to save the school, drastic measures must be taken to both "stop the bleeding" and set a new course to the future.

Below, I have suggested ten ways for schools to regain the trust and confidence once shown to it by parents, alumni, and donors.

1. New Leadership

The quality of leadership is vital to the overall success of any organization, especially a school. If your school is in dire straits, I would look at the person in charge of the day to day operations, whether he or she is called the principal, administrator, or superintendent. What has this leader done to either help or harm the community? What has he or she done to foster alumni development and what is the current status of donor relations? Has enrollment increased or decreased? All these factors are important when judging the leader. These questions can be summed up, however, when gaging the predominant "mood" of the school. If the teachers and students aren't energized and happy to be in the school everyday, I would submit that the leader is not doing a good job.

If this is the case, either something has to be done for the leader to improve dramatically in short order or a change must be made. Without the absolute commitment of the administrator, the school will continue its downward decent.

2. Apologize Without Excuses

Once new leadership (or at least a new leadership attitude) is in place, the repair work must begin. The incoming leader must quickly acclimate him or herself and find out who has been or who feels wronged by the organization. Then, the leader must reach out and do whatever it takes to bring these people back into the fold.

The leader must make this apology, even though he or she had nothing to do with the perceived injustice. The best way to do this is with a sympathetic ear and understanding words. Phrases like, "I can totally understand that would make you feel hurt," or "It makes sense that you felt we weren't being good stewards of the money" are honest and sincere expressions that will resonate with the people, without damaging the personal standing of the new leader.

Make sure not to get bogged down in excuses or details from the past. Accept that the person feels wronged and your job is to make him feel better. That's it.

Once you've got a few people back on board, word will spread, and your job of mending fences will become a little easier with momentum.

3. Make Easy Physical Changes within the Organization

I feel that easy physical changes should always precede difficult policy shifts. If your school is going to go through serious transformations in staff, procedures, and expectations, that will be difficult for some people to accept.

I have always found that if I undertake some simple physical projects, like painting, landscaping, re-arranging furniture, changing the purpose of a supply closet or classroom, or anything else that does not affect people's sense of security, but actually improves the physical appearance of the school, you will start to win them over before the tough stuff comes.

4. Honor History in New Ways

If the leader is new to the school, he or she can earn much respect and loyalty by finding a way to honor the school's past, but doing it in a way that has never been done before. This way, the leader will be both showing a respect for what came before, but also demonstrating that he or she has an eye on the future.

One example might be to create an annual award based on service to the school. This award could be named after a school founder or an important donor. This covers the "past" part, while the actual honor of the award, along with a new plaque that hangs in a prominent location is the "new" part. I did something very similar to this in the school I worked at and got great results.

5. Listen to Alumni and Donors

Another important task for new leadership in the school is to listen to alumni and donors. The leader should seek these people out and ask them a lot of open-ended questions. Let the alumni and the donors give you their unedited opinions about the school at large. Listen to them as long as they want to speak. Pay close attention and take good notes. Let them know that while you may not be able to make all the changes at once, you really appreciate their insight and will do your best to enact sensible change. This act of just opening yourself up will go a long way toward building trust and loyalty.

6. Study Successful Programs and Emulate Them

While every school has its own special circumstances, there are plenty of commonalities between educational institutions where you can find a success story to model. Do some research and talk to other leaders of similar schools. Share your story with them and find out what they did to pull themselves out of the tailspin they were in. While you may not use every suggestion, I would wager you will still find many pieces of useful advice in their experience.

7. Set Realistic Short Term Goals

Donors want to see verifiable proof of success. This is another reason why making physical changes is beneficial. Even though painting a few walls or cleaning something up won't make long-lasting improvements in enrollment or fund raising, they will show donors that "stuff is getting done." And that is good.

The leader must find a handful of areas that he or she can point to for easy success. Perhaps one goal is to improve communications. A regular newsletter, frequent email blasts, an improved website, and frequently updated bulletin boards are all ways to show that the leader is making quality communications more of a priority than it was in the past. Donors like this.

If the leader chooses to set and focus only on more long-term goals, like raising enrollment 10% for example, he will miss all of the building blocs in front of him. After the slow decline into the depths, donors and alumni, as well as parents of currently enrolled students are going to want to see more immediate signs of life. It's the reverse of the cliché, "Can't see the forest for the trees". Just remember that without individual trees, there is no forest.

8. Repair a Key Relationship(s) in the Community at Large

When I worked for the Christian school, I encountered a situation in which the relationship between the school and the local church community was dormant or in some cases, non-existent. I was shocked that there wasn't an active and dynamic support system between these seemingly cooperative groups.

One of the first things I did was to schedule private meetings with many of the key pastors involved to introduce myself and to invite them to become involved in our mission. Not everyone accepted my invitation, but some did, and we developed some very good friends from this effort.

I would guess that there are many rather obvious "missing links" in schools and non-profits out there. A new leader has the chance to, without any history, right some wrongs. If you find a person or a group that your school should be friendly with, but you aren't, I urge you to make this happen.

If you are successful in making this important connection, it will be another example to your board and donors that you are out there, changing the culture that existed before.

9. Be Appreciative

Sadly, one of the most common mistake non-profits in general and schools in particular, make is not to be appreciative of the gifts they receive. A gesture as simple as a thank you note is often forgotten.

This omission is often the reason why many donors break off their relationship with a school. I actually heard one donor once say he felt like a horse, ridden hard and then put away.

Even if a gift is many years old, if you are new to the school's leadership, you have the opportunity to say thank you again. With the "thank you" should also come the admission that you know this was (very) late in coming and you should give them your word that such omissions will not occur again. (And make sure they don't!)

Conclusion

Taking over a school in trouble is a very difficult task. The issues that put the school in jeopardy can be very serious and almost impossible to reverse. However, there are several ways that can help set your school back on a path to success.

About the Author: James Berigan is a former school principal who enjoys guiding schools with their fund raising efforts. He writes for the Top School Fund raisers blog at http://TopSchoolFundraisers.com/news which includes a variety of fund raising options like fundraising events and school carnivals

Fundraising Can Be Sweet In Tough Times

Contrary to popular belief - giving can often times increase greatly in tougher economic times! If you have been holding off on planning a major fund raising activity because you are scared that people may not give as much you would be sadly mistaken.

People often are much more sensitive to the needs of others when they themselves feel a bit of a crunch financially. With ever raising gas prices and other cost seemly soaring out of control many people are in the giving mood.

The key to being successful with raising funds in tough economic times is to recognize that people are looking for ways to feel better. They want to make sure that they have some identity to the needs and will gladly give in anticipation of finding some joy in their gift.

People also love to feed themselves in tough times and a candy bar fund raiser will do very well meeting this need. It is not much to spend a buck or two on a candy bar and they can feed themselves and help a cause at the same time. This creates a win-win situation for all involved.

So, think FOOD, and this will help you succeed in these times when prices are going through the roof. Keep the items low in cost. Try a price point of $1 to $3 dollars - this should be your limit for an item. Anything chocolate or sweet will be your best bet. Combine this with a worthy cause and you will be off to a successful fundraising event.

For more information on fundraising events and projects for your organization try visiting http://good-fundraising-ideas.com, a website that specializes in providing helpful tips, advice and fundraising resources to include Fund Raising and more.

Fund Raising the Creative Way

Every parent has experienced the dread that comes with their child announcing a school or sports team fund raiser. Parents find themselves helping their child hawk containers of high-caloric cookie dough... or skimpy rolls of wrapping paper... or calendars they'll never use... or magazine subscriptions to Bee Keeper Gazette. How about suggesting the school or team try a few innovative fund raising ideas? The following ideas are creative ways to raise money for your specific program.

Teachers Lip Sync Extravaganza: Teachers are often hesitant to perform in traditional talent shows. Performing in a lip sync act requires only exaggerated, outlandish stage presence, not talent. Charge admission for families to come watch teachers and staff as they display their talents playing air guitars and prancing around in swimsuits, carrying surfboards and lip syncing to songs such as California Girls.

Many cities have businesses pay to decorate life size cows or pigs, which are then displayed throughout the community. Why settle for decorating a traditional animal statue? Encourage businesses to pay to be corporate sponsors for the chance to get a toilet destined for the dump. Each business receives a clean, yet used toilet,(available from most recycling centers) which they decorate. On a designated day, collect the artistically decorated toilets and set up makeshift bowling lanes. Community members pay to view the toilets and pay extra to roll a bowling ball down the lane and smash the toilets. Just think. Your organization gets money when businesses buy a toilet and then additional money as people pay to destroy the toilet with a bowling ball!

300 million children around the world are without a pair of shoes. Teach your children how to help others while also raising money for your organization. Soles4Souls, a non-profit agency, has distribute over 3 million pairs of shoes around the world. Students simply take orders for clogs or flip flops, which Soles4Souls distributes free of charge to people in need. For every $5.00 flip flops or $10.00 clogs students sell, your organization receives 40% of the proceeds. More important, your student's efforts help put a pair of shoes on the feet of someone in an impoverished or disaster-stricken area of the world.

Contact www.soles4souls.org or 615-391-5723

Americans are spending billions of dollars on jeweled collars and personalized raincoats for their pets. Sponsor a pet fashion show where pet owners pay you to participate. For added interest get the mayor of your community or a local celebrity to "model" along with their pet. Any pet store would be glad for the publicity that comes with paying to be a "corporate sponsor" and promote their products. Planning is simple: Pet stores pay to be a sponsor, people pay to walk the runway with their adorable dog, cat, ferret, miniature horse, etc, and people pay admission to attend the event. All you need is a gym with a runway and a few pooper scoopers on hand!

Silvana Clark is a professional speaker and the author of eleven books. She presents keynotes and workshops on Humor in the Workplace as well as workshops on innovative marketing ideas. She's trained her dog for TV commercials, traveled full time in an RV for a year, and appeared on the Fox reality show, Trading Spouses! http://www.silvanaclark.com - http://www.panicbuttons.com

Angel Investor Funding

Many individuals and companies have found themselves lost as to how to go about getting angel funding let alone what is expected or required to be successful in the venture.

Angel investors should be pursued after you have gone through the bootstrapping phase and have exhausted all small funding options such as personal, family and friends.

When Angel Investors decide to take on a project one can look to see Angels inject anywhere between $150,000 to $5,000,000. If you are looking to acquire more you would now be in the realm of venture capital funding which is another ball game all together.

Angel Investors look at companies that have ten distinct features before they invest their capital and their time. They are:

1. The company must be able to show a clear path to profitability.

2. The management team that is in place should be a solid competent team that shows the ability to chart a company through to a profitable destination.

3. The business model must be scalable and show potential for extraordinary growth.

4. The Business concept must be realistic and based on realistic markets.

5. Every venture that is to be taken seriously must show a competitive edge or capitalization on a niche market combined with technical superiority that sets it apart.

6. The product or service must reflect the anticipated acceptance by the consumer market along with a clear market need.

7. The financial projections must be realistic not hyper inflated or underestimated.

8. The company valuations should be realistic.

9. The concept or business model must be clear and well articulated in essence a clear picture of your business has to be painted.

10. Most important is the Exit Strategy which should be clearly defined and show a clear path for financial return.

Angel Investor funding can be a difficult process at best but it is attainable. The pursuit of funding is something to be pursued after your business model has shown the ability to garner traction (make money).

In the midst of pursuing capital you must not just sit on your laurels and wait for the right investor, but continue to build your business model and concept. And if you don't quit you will succeed.

DH Roberts teaches a powerful, highly advanced system of making money and getting and using millions in business funding online and offline. Learn his scientific way of making money and how to get Millions of Dollars in Angel Investor & Venture Capital Business Funding for all stages of Funding from a real Financier. Download his brand new free guide here: http://www.globalfinancier.com/sq