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A Fund Raiser's Newsyletter - June 2000
June 5, 2000

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Funding Tips & Trends 

People are ready to give -- so ask! Individuals gave 7.2% more in 1999; foundations gave 16.5% more, and companies gave 14.3% more. Total giving increased to $190.1 billion, up 9.1%.

Why are people giving? The economy is booming, and donations to charity are rising. Also, donors say they trust not-for-profit groups -- especially human-services organizations, colleges and universities, religious groups, and youth-development organizations. Charities are increasingly seen as effective, valued in the community, and frugal with their funds.

Experts expect the trends to continue. And fund raisers say they are highly optimistic about the current giving climate.

For more information, see "Giving USA 2000," published by the American Association of Fund-Raising Counsel, available for $65 plus $6 in print or on computer disk for $135 plus $6 shipping by calling 888-5-GIVING, or order online. Also, see the "Philanthropic Giving Index," published by the Indiana University Center on Philanthropy, 550 West North St., Suite 301, Indianapolis, IN 46202-3272. And, the 1999 Independent Sector study, "Giving and Volunteering in the United States."

Use the Internet to discover what's unique about every donor. Then use the information to tailor your fund-raising campaigns.

Web sites contain information about individual donors, corporate executives, alumni, foundations, family trusts, corporations. Check sites that include reports on companies and stocks; they have individual as well as corporate information.

The CorporateInformation site searches 300 sources of such information. And the 10-K Wizard site has information from Securities and Exchange Commission filings.

Other useful research sites include:

[Source: "Researching and Identifying Potential Donors Online," Foundation & Corporate Grants Alert, April 2000. Capitol Publishing Group, P.O. Box 1453, Alexandria, VA 22313-2053; 800-655-5597.]

Trade snail-mail for e-mail. Postal rate hikes make Internet communication an even more attractive alternative to mail communication. Online fund raising saves postage costs, reaches younger donors. E-mail can also be used to stay in touch with supporters.

To reach donors, consider setting up a web site that can accept credit-card donations. Charity portal sites also can steer donors to your group -- for a fee. "Shop and give" sites provide a slow but steady flow of funds. And not-for-profit groups can team up to create regional giving sites.

[Source: "E-fundraising: Why now is the time to go online for donors and dollars," The Nonprofit Board Report, March 2000. Progressive Business Publications, 370 Technology Drive, Malvern, PA 19355; 800-220-5000.]

Follow the rules of Netiquette when sending e-mail to donors:

  • Keep you message brief. Include a link to a short web page to provide more information. Provide readers who want to explore further an easy way to access your whole site.
  • Only send to known donors. Unsolicited e-mail, known as "spam," is roundly despised on the Internet.
  • Don't send your message as a file attachment. Many people can't open them. And your message may be mistaken for a virus.
  • Use large, readable text.
  • Get to the point: Briefly explain how donations will be used, the need for support, and how the reader can help.
[Source: "Brief, To-the-Point Messages Attract Prospective Donors," Substance Abuse Funding News, March 31, 2000. CD Publications, 8204 Fenton St., Silver Spring, MD 20910; 301-588-6380.]

Educate your online donors. "Click and give" web sites can be good fund-raisers. They can drive donors from around the world to your cause. And they're cost-effective.

But to retain donors, you need to provide information on your mission, and other ways visitors can get involved.

Another way to raise money online: get companies to pay to advertise on your site.

[Source: "Changing the World with Your Web Clicks: Part II," Susan Muldoon, Observations in Philanthropy electronic newsletter, April 2000. To subscribe, go to www.changingourworld.com]

Make your web site reporter-friendly. Posting breaking news stories online is most valuable to journalists. But they appreciate background information, too.

Information on your site should be useful, relevant, accurate, reliable, timely. Speed is critical: put important news and contact information where reporters can find it quickly and easily.

Many reporters want to be able to download photos, graphics from your site. And most reporters prefer to communicate by e-mail -- but only if you respond promptly to electronic inquiries. So don't forget to put your address and phone number on your site as well as your e-mail address.

[Source: Tom Ahern, Ahern Communications, Ink. 401-397-8104.]

What's your online privacy policy? Federal agencies advise Internet sites to tell visitors what personal information is being gathered, how it is used, how it is being shared, and how users can block their information from being shared. These policies should be posted prominently on your web site.

Online privacy disclosures are not mandatory, and few not-for-profits have them. But further regulations are expected. And donors say that privacy is one of their biggest concerns online.

[Source: "Few Charities Meet Federal Guidelines for Online Privacy Policies," The Chronicle of Philanthropy, March 23, 2000. P.O. Box 1989, Marion, OH 43305; 800-728-2819; e-mail: subscriptions@philanthropy.com]

Make a few words count. Most Americans are overwhelmed by information. Office workers spend 60% of their time processing documents. Business managers read a million words weekly. And U.S. workers get an average of 190 messages a day via phone, memos and e-mail.

But 93% of all such information never gets used. Plus, information overload can lead to health problems and loss of productivity.

Analyze the cost and benefit of your communications. Action-oriented communications have the most value. Make your materials less complex and tighter -- not just shorter. Do less, but do it better.

Avoid filler in publications. Don't add a new publication without eliminating one.

Remember, nobody wants more information. People want better information.

[Source: "Simplify, simplify, simplify," Ann Wylie, The Editor's Worksheet, May 1999. To subscribe, send an e-mail to awylie@unicom.net with the message "Subscribe me!"]

Gone, but not forgotten. Former board members don't lose their skills, connections, other resources, so stay in touch. Let departing members know you want to continue the relationship. Thank them for their service. Hold a retirement ceremony and inform the media.

Call retired board members for their advice. Keep them on your mailing lists. Invite them to events. Ask valued ex-members if they would like to serve again in the future.

[Source: "Tapping a potential gold mine: Your 'retired' board members," Board & Administrator, January 2000. Aspen Publishers, Inc., 7201 McKinley Circle, Frederick, MD 21705; 800-638-8437.

Do you know your future donors? By 2050, the black population in the U.S. will have grown 19%; the Hispanic population, a whopping 119%, and the Asian population, 118%. But there will be 9% fewer white people.

Donors will be older, too: people ages 60 or over made up 16% of the population in 1999; by 2050, they will represent 25% of Americans.

[Source: "USA: The Way We'll Live Then," Bret Begun, Newsweek, January 1, 2000.]

Don't believe what you see ... The face of America is changing. Hispanics, for instance, make up 8.6% of TV viewers, but are featured in only 1% of TV news stories. And magazines like Elle, Cosmo, Glamour and Vogue still have few African-Americans on their covers.

... But do believe the hype: Use of the Internet is expanding rapidly. Americans spent $2.8 billion to access the Internet in 1996; by 1998, spending had jumped to $6.2 billion. And the percentage of U.S. students who visited online shopping sites doubled between 1998 and 1999.

[Source: Brill's Content, December 1999/January 2000 issue.]

Training can spell the difference between mediocrity and excellence -- so don't skimp! Leading-edge companies spend 4.4% of their payroll on training; above-average firms spend 2.3%. Average firms spend just 1.8% of the payroll to train employees.

[Source: "1999 State of the Industry" report, American Society for Training and Development, 1640 King St., Box 1443, Alexandria, VA 22313-2043; 703.683.8100.]

Hate to delegate? Avoid these common excuses:

  • "I can do it better": Yes, but others can learn. Accept less-than-perfect work until they do.
  • "It's force of habit": Break the habit by training someone else.
  • "My people are too busy": Reevaluate employee workloads. Eliminate time-wasters. Give them better work to do.
  • "My boss told me to do it": Your boss wants the job done right; it doesn't matter who does it.
  • "I don't want to dump work on others": You're delegating, not dumping. Just be fair.
[Source: "Why We fail to Delegate," Team Management Briefings, preview issue. 1101 King St., Suite 110, Alexandria, VA 22314; 800-722-9221.]

What are your intentions?Foundations often want a letter of intent from not-for-profits before they apply for a grant. These letters help funders decide who to invite to submit a full proposal.

A letter of intent should include:

  • a brief description of the problem your group plans to address
  • who will be served, and what the long-term impact of your project will be
  • a short summary of your organization, its history, form of governance and accomplishments
  • terse profiles of your key staff
  • information on collaboration with other groups
  • general project budget, including information on other funding sources
  • project contact person's name, address, phone, fax, e-mail
Write in letter format, not as a checklist. Avoid glowing adjectives. Write no more than three, single-spaced pages. Observe all deadlines. Remember: preparation and good writing count most.

[Source: Funding Q&A, Laurel Drake-Major, Foundation & Corporate Grants Alert, February 2000. Capitol Publishing Group, P.O. Box 1453, Alexandria, VA 22313-2053; 800-655-5597.]

Looking for federal funding? Tap your Congressperson for help. Their local office can match your needs to existing grant programs, contact agencies on your behalf, suggest private funders.

[Source: "Elected Officials Can Be Grant-Winning Resources for Your Organization," Children and Youth Funding Report, February 2, 2000. CD Publications, 8204 Fenton St., Silver Spring, MD 20910; 301-588-6380.]

World Wide Web Addresses ...

WealthKnowledge.com provides customized market research on wealthy Americans, including giving patterns and motivation. Access to the company's database is $200 per year, $175 for National Society of Fund Raising Executives (NSFRE) members.

Refdesk.com contains links to about 20,000 online reference sites, including dictionaries, encyclopedias, more.

Online charitable-giving and shop-for-charity sites:

Charitable Way

Charity Mall

Charity Web

www.4charity.com

Greater Good

iBelong.com

iGive

Mycause.com

Schoolpop.com

Shop2Give.com

ShopforChange.com

WebstoreAmerica.com

[Source: The Grantsmanship Center Magazine, Winter 2000.]

Consultant Allison Schwein's web site includes links to shop-for-charity sites along with ratings by a panel of 29 volunteers. Each shopping site is judged on ease of use, privacy policies, appearance and selection of goods.


Other Resources ...

Educational Funding Strategies, Ltd., is providing distance-learning courses for NSFRE-approved CEUs. The 12-week, six-lesson course is conducted via e-mail and costs $295. A total of 2.1 CEU credits will be awarded upon completion. For information, contact instructor Marilyn Gross at mlgross@aol.com

The Grantseeker's Handbook of Essential Internet Sites -- 1999-2000 Edition. Includes addresses and descriptions of grant makers' sites, research resources, more. Plus advice on how to avoid wasting time online. Available in print or online version for $95 from Aspen Publishers, P.O. Box 990, Frederick, MD 21705-9782; 1-800-638-8437.

The Foundation Directory -- 2000 Edition. Features key facts about more than 10,000 foundations awarding more than $3 million annually. Available in print ($215), on CD-ROM ($295), or online ($19.95 per month or $195 per year). The Foundation Directory Part 2 has information on 8,700 smaller foundations; available in print version only ($185; save $40 when ordering both volumes). Order from the Foundation Center, 79 Fifth Avenue, Dept. GN, New York, NY 10003-3076; 800-424-9836.

Major Gifts Report. Monthly newsletter provides strategies for generating large gifts to support your organization. $139 annually from Stevenson Consultants, P.O. Box 4528, Sioux City, IA 51104; 712-239-3010.

***

Published by Simone P. Joyaux, ACFRE, 10 Johnson Road, Foster, RI 02825; 401-397-2534.