How to Get Money

Where We’ve Been…Where We’re Going  So far this semester we have spent a lot of time discussing strategy  How to fundraise  What to think about  How to get people to donate  Today, we move to the actual tactics  This discussion will be more like what we have discussed with direct mail and appeal letters

Special Events  Examples  Average: Bring in $1 for ever $1.33 spent  Generate 15% of total individual contributions  NOT all about money though  Raise visibility, improve relationship with public, mobilize, celebrate, thank, kickoff larger campaign

Types of Special Events  Lunches, dinners, food  Banquet fatigue  Ad books  Combo-platter events?  Auctions  Silent v. live  25 people—2 people per item—need value of items to be double your fundraising goal  Create packages?  Fairs and festivals  Concerts and lectures

More Types of Special Events  Walkathons, tournaments, contests  Can get boring  Home and garden tours  Garage sales, bake sales, used book sales  Pricing czar

Things to Think About  Use your assets!  Multiply time estimate by 3!  Keep it green?

Special Event Budgets and Calendars  Be realistic!  Add 20% for unanticipated costs  Do NOT be cheap in the wrong places  Income should exceed expenses by a healthy margin  Run different scenarios  Start early…but not too early with volunteers  Calendars must have start AND end dates

Last Thoughts  Deal with risks and liabilities  Delegate shamelessly if you are in charge!  MUST send thank yous to EVERYONE  Compare final budget to original budget…this will help so much in future years!

Switching Gears…Business and Sales  Over 50% of nonprofits are taking plunge into commercial enterprises  No clear rules here regarding likelihood for success  Advantage is that the money comes in with NO strings  IRS involvement:  501(c)3 status is important  Activities within your mission, activities not part of an ongoing business, many exceptions as well (p. 299)  Will pay tax otherwise (even if all proceeds go back to charitable activities)  No way to tell clearly when IRS will tank your 501(c)3

Two Main Options  Client-bases business  Low worker efficiency and high turnover  Difficulty in finding good managers  Conflicts in goals  Risk that business failure will harm client lives  Sales of goods and services  Outside expertise of staff  Conflict in goals

Development  What goods and services you can offer  What customers want or need  Gaps?  Different source?  Brainstorm with others  Measure our ideas with reality  Talk to owners of similar businesses  Observe customers  Survey likely customers  Research demographics  Closed businesses that are similar  Check on price and competition  Three year business plan  Best, break-even, worst

Printed Communications  Brochures  What do we want to include?  Why make them fairly general?  Newsletters  What to include?  Do we have to do this?  Annual reports  What to include?  Do we have to do this?  When to start?

Websites!  Checklist on p. 407 is the key!  What do we want a website to do?  Contact info  Personality  Freshness  This can hurt you!!!  Content  Your agency v. more general stuff  Donation info and ease is a key!  Tell them how, how you have protected them, that it’s confidential, and that they don’t have to give online!

Media  What makes a good story  Must present a hook  People or animals = advantage  Presentation of stories  Breaking news, features, arts/other events  Who to approach  Print, Radio, TV

More Media  Know those around you  Give them stories that you know fit  Background research  Have experts available  How to pitch  Press release Know where, when, and how to send  Publicity for special events  Stunts  Phone calls  Op-eds

Other Thoughts  Protect yourself!!!  Lots of time for little reward?  What if the piece is unflattering?  You won’t get a copy  May be surprised by side the journalist is on  May get stuck defending your organization

Social Media  Fastest growing Facebook demographics  Say goodbye to control  Do not be less than genuine with social media  This will NOT be a replacement!  Mobile text message donations