The Law of Fundraising. Bruce R. Hopkins

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      7 Annual Giving Campaign Committees. Campaign committees are volunteer committees of peers using in-person solicitation methods to recruit the largest and most important annual gifts. The performance of such a committee will be the most lucrative of all the aforementioned annual giving methods. The committee is structured as a true campaign, with a general chairperson and division leaders for individual, business, and corporate prospects. After making their own contributions, each volunteer may be assigned from three to five prospects to visit and with whom to discuss an annual gift decision. Donors are receptive because someone they respect has taken the time to call on them on behalf of an organization. The volunteers also can report that they have made their own personal contributions.

      8 Other Annual Giving Methods. Several other methods can also develop gift support on an annual basis:Commemorative Giving. A commemorative gift to a charity has the dual effect of honoring the recipient and aiding the donor's favorite charity at the same time. Most often, these gifts are memorials following the death of a family member, friend, or business colleague, and are directed by the family to their favorite organization. Commemorative gifts can also be given to mark a birthday, anniversary, promotion, graduation, or other important occasion, or to honor a friend, physician, or teacher.Gifts in Kind. Instead of cash, donors can make gifts of goods and services that can be used by the recipient organizations (such as Goodwill Industries, Salvation Army, St. Vincent de Paul Society) in their program activities. Businesses often donate products or excess merchandise, either for direct use (food or equipment) or for use as a benefit door prize or auction or raffle item.Advertisements in Newspapers/Magazines. Advertising, while the least likely solicitation method to stimulate a response, can promote an organization, a special campaign, a form of giving, or other purpose. Usually, direct mail or telephone follow-up is required to maximize the gift response from such multimedia techniques.Door-to-Door and On-Street Solicitation. While on-street solicitation is less common today because of limited volunteer time, some organizations benefit from “cold calls” during neighborhood drives because the public recognizes the organization's name (e.g., the American Cancer Society's “Women's Walk”) or has come to trust the organization's purposes (e.g., the Salvation Army's bell-ringers, chimney box, and red pot for collections at Christmastime). The difficulty in recent years has been abuse of public trust by a few organizations or individuals who “hustle” the public too hard or who run afoul of local regulations restricting solicitation, such as in airports and other public areas.Sweepstakes and Lotteries. Where legal, charities can benefit from such forms of public solicitation as sweepstakes and lotteries. Most charities, however, prefer to avoid areas of questionable practice, which too often are viewed by the public as forms of gambling. Bingo remains the exception, but it too is carefully regulated and supervised.Las Vegas and Monte Carlo Nights. Again, where legal, Las Vegas and Monte Carlo nights can develop gift revenues for a charity. State and local regulations for conduct of these events are strict, and may include a 5 to 10 percent fee taken from net proceeds. Like other special and benefit events, “casino” nights are hard to manage profitably because of high direct costs and overhead expenses.⁵¹Mailings of Unsolicited Merchandise. The theory behind the practice of mailing unsolicited merchandise is that it engenders guilt in the recipients—presumably, recipients would feel guilty keeping something of value sent to them and thus would be more likely to respond with gift support. This type of method is less popular today because postage and material costs, along with public resistance (lack of response), are rising.In-Plant Solicitations. Public solicitation in the workplace is usually controlled by the employer. Where in-plant solicitations are permitted, some employees resist being “cornered” and “pressured” to give. Usually, only United Way or other federated campaigns have been allowed into the workplace for this type of solicitation.Federated Campaigns. Federated campaigns are communitywide solicitations organized to support a large number of civic, social, and welfare organizations in the community with a single, once-a-year fund drive. Public acceptance is high, management and fundraising costs are low (under 20 percent), and a “campaign period” is observed. Federated campaigns, such as those of the United Way and the Combined Federal Campaign, are usually directed to local corporations for annual gifts and to their employees (or to government employees), who are allowed to use payroll deduction. These campaigns require cooperation from those charitable organizations being supported, who must refrain from their own solicitations during the campaign period.

(b) Special-Purpose Programs

      A successful base of annual giving support permits the charitable organization to conduct more selective programs of fundraising that will secure major gifts, grants, and capital campaigns toward larger and more significant projects. A request for large gifts differs from annual gift solicitation because the request is for a “one-time” gift, allows a multiyear pledge, and is directed toward one specific project or urgent need. Likely donors are skillful “investors” who will respond to a major gift request only after researching the organization and determining whether the project justifies their commitment. If the request fails their examination, it is likely to receive only token (or no) support.

      Following is a brief explanation of how the three forms of special-purpose fundraising are employed.

      1 Major Gifts from Individuals. It takes courage to ask someone for $1 million. Current and committed donors are the best prospects. Before the request is made, careful research should ascertain the prospect's financial capability, enthusiasm for the organization, preparedness to accept this special project, and likely response to the team assembled to make the call. Also important is an early resolution of the donor recognition to be offered (election to the board, name on a building, or both). The project must be a “big idea,” worthy of the level of investment required, perceived as absolutely essential, and a unique opportunity offered only once. In short, major gift solicitations should be performed as though they are a request for the largest and most significant gift decisions from these donors at this point in their lives.

      2 Grants from Government Agencies, Foundations, and Corporations. Separate skills and tools are required to succeed at grant-seeking. Grants are institutional decisions to provide support based on published policy and guidelines that demand careful observance of application procedures and deadlines. The decision is made by a group of people and, because of limited dollars, only one grant may be given for every 25 to 50 requests received. Usually, for a grant proposal to be accepted, the organization and its project must perfectly match the goals of the grantor.

      3 Capital Campaigns. A capital campaign is clearly the most successful, cost-effective, and enjoyable method of fundraising yet invented. Why? Because everyone is working together toward the same goal, the objective is significant to the future of the organization, major gifts are required (all through personal solicitation), start and end dates are goal markers, activities and excitement exist, and more. A capital campaign is the culmination of years of effort, both in design and consensus surrounding the organization's master plan for its future, which depends on experienced volunteers and enthusiastic donors. When everything comes together in a capital campaign, the result is success.

(c) Estate Planning Programs

      An increasingly active area of fundraising involves gifts made by a donor now, to be realized by the charitable organization in the future. The term gift planning best describes this concept. These gifts either transfer assets to the charity now, in exchange for the donor's retaining an income for life, or transfer the remaining assets at the donor's death. This planning allows donors to remember their favorite charities in their estate and to plan gifts of their assets, now or at death. These gift decisions are usually made by donors who have some history of involvement and participation with the charities named in their estate and speak loudly of the donors' trust and confidence in the organizations and their future.

The four broad areas of planned СКАЧАТЬ