Fundraiser Ideas and Events » Non-Profit, PTO, PTA

Landing Corporate Sponsors

FundraisingIP.com — Tue, 06 Jul 2010 15:27:59 +0000

Getting corporate sponsors may be a tall order, but it is certainly not impossible. It may take some time, and if you’re willing to follow a company’s rules (there may be lots of paperwork and wait time), and stick to your plan you may just succeed in the end!

When applying with a corporate sponsor, consider the following:

Start small

Everyone would like to be sponsored by a large company, but that’s not always possible. In fact, large corporations usually have bylaws that specify in great detail who they can give to, when they can give, how much they can give, and so on. These additional restrictions make it highly unlikely that an organization holding its first fundraiser will be able to be considered. They want to see a proven track record of successful fundraisers, because they are looking at the bottom line for the company. What will sponsorship get them? How much exposure will they receive? Sure, it’s always worth a shot; but don’t get discouraged if there’s no bite on the other end of the line. Instead, start by looking within your community and see what other companies might be interested in being a part of your event.

Plan ahead

If your fundraiser is next week, it’s too late for this suggestion for this year, but it’s just in time for next year. The more you plan ahead, the better your chances of getting some quality corporate sponsors. It takes time for the corporate board to review and accept your sponsorship proposal. Besides that, the more you plan ahead, the more people will be impressed with your leadership and organization skills, and the more they will want to help you. And if all those reasons weren’t enough, here’s one more: it’s just plain courtesy to give people more than a few days’ notice when you’re asking for their money.

Start with a letter

If you took basic economics, you’ll remember this rule: TANSTAAFL. There Ain’t No Such Thing As A Free Lunch. Instead of a charity consider your project a business transaction: it’s wise to consider what the company will get out of sponsoring you and your event or organization. Their name in the newsletter? A giant banner at your event? Make your letter no more than one page; use the sandwich method (good news—bad news—good news); and be sure to include all information about your event and how to contact you. A good way to begin is by thanking them for their time.

Follow up with a phone call

A week after you’ve mailed your letters, start calling your potential sponsors. Begin by asking if they got your letter, and just ask if they had any further questions you might be able to clarify. Don’t wait more than two weeks to call them, and definitely don’t wait for them to call you (at least, not yet). If they say they’re not interested, cross them off the list and try the next one.

Finally, don’t be intimidated by dealing with a large corporation. Remember that behind that seemingly impersonal entity there are people running it. Treat them the way you’d like to be treated – even if the sponsorship won’t work out this year – and you’ll create a professional and positive basis for potential future projects.

Fundraising Books

FundraisingIP.com — Wed, 08 Oct 2008 18:33:57 +0000

Over the years we’ve come upon lots of useful fundraising information that we’ve been sharing with you through our website. We’ve also come across some great books on different aspects of raising funds and have decided to start compiling a list of our favorite fundraising books and share it with you! You’ll find books with in-depth information on writing fundraising letters, running your non-profit and of course a fundraising book from the popular “Dummies” series.

Do you know of a great fundraising book that has been of immense help to you? Please tell us! If we publish your recommendation we’ll add your name and your organization’s URL to our site which will help you get more visitors to your site.

The books that made it onto our list are some of the most popular fundraising books and also have the highest customer reviews on Amazon.com:

Excerpt from this book:

"It’s downright unnatural. Your fundraising letter must persuade the recipient to take an action that much of humanity thinks peculiar: to give money away.

…Forget your organization’s needs. Instead focus on the needs, the desires, and the concerns of the people you’re writing to. Your job is to motivate them."

Includes: "Sixty Successful Outer Envelope Teasers, Fifty-four Strong Leads For Fundraising Letters…" and many more tips for writing a perfect fundraising letter.

* * * * * * *

Excerpt from this book:

" ‘But I don’t have time to read a book on fundraising!’ If that phrase could have come from your lips, you’re not alone. I’ve worked in some of the hardest-to-fund nonprofits around, and fully appreciate that you may be reading this while simultaneously gulping down lunch and photocopying a grant proposal. But you probably know in your heart…"

Includes: "Developing Your Fundraising Plan, Attracting Individual Supporters, How to Keep the Givers Giving…" and much more to make your fundraising efforts a success!

* * * * * * *

Excerpt from this book:

"The mission of your organization isn’t merely important – it’s everything. It describes your noble objectives and the way you touch lives of those you serve – in a way unlike any other organization.

Your mission fuels motivation and ignites the passion. It provides the why that inspires every how. It is the roadmap, the signpost of your organizatio’s direction and destination."

Includes: "It Starts with Integrity, Mission is everything, Why People Give, Wear Your Business Hat…" to make your board as effective as it can be.

* * * * * * *

Excerpt from this book:

"Fundraising folks have an old saying: "People don’t give to causes. People give to people with causes." This saying means that, in essence, you’re the important part. Your inspiration, your perspiration, your passion. So that brings us to the Big Question…

What are you passionate about?"

Includes: "Finding – and Winning Over – Donors, Assembling Your Fundraising Toolkit, Leveraging The Internet, On the Fundraising Campaign Trail, Ten Great Opening Lines…" Another great guide by the publisher of the ‘Dummies’ series!

* * * * * * *

Excerpt from this book:

"Which would you rather have, if you could only choose from these two options:Someone who reads your stuff but never responds? Or someone who doesn’t read your stuff but sends you a gift? Obviously you’d choose the latter, as would anyone with a dollar goal to make. It’s not ideal, but it pays the bills. I bring up the distinction between reading and acting for an important reason having to do with your workload: to release you from the burden of worrying so much about writing newsletter articles, white papers, and other longer prose pieces."

Includes: "Why your fundraising communications fail to get the results you want; On the delicate subject of committee &board approvals…" This guide gets into the nitty gritty about anything communications related. Not just great for fundraising letters, but also for refining your group’s mission.

* * * * * * *

Excerpt from this book:

"The word philantrophy comes from two Greek words meaning "love of people." In modern times this goodwill, or humanitarianism, is often expressed in donations of property, money, or volunteer time to worthy causes. Similarily, the word charity comes from a Latin word meaning "love" in the sense of uncoditional loving, kindness, compassion, and seeking to do good. The roots of these words remind us of the fundamental reasons for the work of most nonprofit organizations."

Includes: "Matching Fundraising Strategies With Financial Needs, When Everyone is a Volunteer, Launching Major Gift Campaigns…" This is a comprehensive guide that covers all aspects fundraising. Worth every penny!

* * * * * * *

Excerpt from this book:

"Many organizations are finding it more difficult than ever to get excellent board members…

Therefore, a board should establish a Board Development Committee as a standing board committee. This committee would assume all the roles played by the Nominating Committee. It would have as its responsibility not only obtaining quality board members, but also keeping them."

Includes: "Writing Grants and Getting them Funded, Managing Grants Once You Get Them, Establishing an Outstanging Volunteer Program…" All the basics you need to know about keeping your nonprofit running smoothly.

* * * * * * *

Excerpt from this book:

"Designing and producing an event – whether it be a meeting, corporate event, fund-raising gala, conference, convention, incentive or other special event – has been compared to directing a movie but is actually more like a live stage production. It is a high-wire act without the safety nects. Once your event starts there are no second chances. it’s done in one take and there are no dress rehearsals. You can’t yell "cut" and reshoot the scene. You are simply not able to predict the putcome – as you can from a movie script – of how your guests and suppliers will interact and react…"

Includes: "The First Steps: Initial Planning & Budgeting, Organization and Timing, Location Location Location…" Excellent advice on every aspect of planning and running an event.

* * * * * * *

Excerpt from this book:

"Grant writing is one of those topics that seems very technical and esoteric, yet you probably already know more about it than you think you do. But before I go any further, let’s be clear about just what grant writing is and isn’t. Grant writing is the skill or practice of asking for money in the form of a grant from a foundation, corporation, or government agency by crafting a well-considered document (the proposal) that outlines how the money will be used, what receiving the money will accomplish and…"

Includes: "The Practice of Grant Writing, ABCs of Grants, Foundation Primer, Corporation Primer, Government Primer, Individual Donor Primer…" The ins and outs of what a grant is and how to write one to get it funded.

For the most up to date list, click over to our highest rated fundraising books page.

Steps To Starting A Successful Non-Profit

FundraisingIP.com — Wed, 24 Sep 2008 17:31:13 +0000

If you’ve decided that your group is ready to start a non-profit, consider the following steps involved in the successful and legal creation of a new non-profit organization and to obtain 501(c)(3) status. Be aware that requirements can vary from state to state and from organization to organization. This list is best used as an overview, a basic to-do list to get you started and as a reference when consulting legal help and professionals.

Basic Steps For Starting A New Non-Profit Organization:

1. Formulate your goals and mission statement
You will need this mission statement later as you file various documents. Your mission statement and goals also have the purpose to focus the work and attention of everything your group does. Take your time with this task, because every action your non-profit takes in the future, or fundraising campaign it runs should be aligned with your defined goals and mission statement.

2. Form a formal Board of Directors and plan the first meeting
Your group’s first Board should be chosen with care as this is the team that will carry the group through the process of starting your non-profit, and the group that will make critical decisions regarding bylaws, mission, goals, etc. This very much needs to be a motivated group who is willing to put in some targeted effort.

3. Decide on a name for your non-profit
This gives your group an identity and it is a legal requirement. Be sure your name is unique. Search the internet and government websites (incl. your county’s recorder website) to see if your desired name is being used in any way. While you’re online, you may also want to make sure the website domain, or URL, is available. Consider buying at least the .com .net and .org versions, so no one else can use them. You can shop for URLs at sites like aPlus.net or GoDaddy.com.

4. Determine the legal type of non-profit your group should be
There are basically three possible legal distinctions for a non-profit – a corporation, charitable trust, or an unincorporated association.

5. Identify a lawyer who will act in a consultant capacity and/or hire one for further work as needed

6. Write Articles of Incorporation and/or bylaws
This document will name your non-profit and designate your location and purpose. Some states require non-profits to draft bylaws as part of the Articles of Incorporation and some do not.

7. File legal documents to incorporate as a non-profit
Legal incorporation minimizes risk and liability to the group, officers, and members.

8. Write a business plan and a budget
A plan and a budget give definite direction to a new non-profit. Just like a new business, a non-profit needs a solid business plan. The main difference between a non-profit and a business is that a non-profit benefits others or other non-profits, whereas a business benefits its owners or shareholders.

9. Apply for Federal Identification Number, or EIN
This gives you a legal identification for purposes of taxes, banking, and accounting.

10. Apply for Federal Tax Exempt status
Usually, this will be the 501(c)(3) status; 501(c)(3) status not only grants federal recognition, but also serves as recognition for grant funding, donors, and other organizations.

11. As applicable, file for state recognition and/or (sales and property) tax exemption.

These basic steps will set you and your organization on its way to becoming a successful non-profit organization. Upon completion of these steps, you will be ready for the business of achieving your new non-profit group’s mission and goals!

Online non-profit resources:

About.com
CraigslistFoundation
Nolo.com
Wikipedia.org

Should Our PTO File For Non-Profit Status?

FundraisingIP.com — Tue, 23 Sep 2008 00:20:22 +0000

Most parent-teacher groups operating in the U.S. today are not affiliated with the national PTA. In large part, these groups have decided to remain independent of the national PTA in order to avoid membership fees and dues.

The downside to being independent of the national PTA, however, is that administrative tasks, such as authoring bylaws and filing tax forms, incorporation, and exemptions, fall to the officers and members of the organization. Some of these filings and designations are optional; in particular, Federal IRS designation as a tax-exempt non-profit 501(c)(3). A PTO that has taken the time to obtain and maintain 501(c)(3) status can enjoy a number of benefits that can greatly impact their financial bottom line. Like all things worth having, though, there is a cost that comes in the form of time, effort, and money.

What are the pros and cons of filing for non-profit status?

In the long run, it is definitely in the best interest of well-organized PTO’s to file for tax exemption under the 501(c)(3). However, poorly run organizations with only marginal commitment from volunteers will find the returns are limited.

Those who benefit from the process

- are well-organized
- have dedicated members who will not only file to obtain non-profit status, but will also maintain that designation in the future (which requires filing an annual registration report at no cost)
- make a pointed effort to transition responsibilities and documents between new boards of officers each year Beyond these fundamentals, there are other pros and cons to consider.

The cons:

* 501(c)(3) requires application to the IRS; the process is quite rigorous, but certainly not impossible
* Filing of the application requires a dedicated effort and time-commitment for volunteers
* It costs several hundred dollars to file, even if you do the work yourself
* Groups must know how they are restricted as a 501(c)(3); the IRS limits activities such as political activism, legislative activity, business activity unrelated to the organization and other activities

The pros:

* Groups are exempted from paying Federal Income Tax (but not from filing appropriate tax forms)
* Groups are exempted from unemployment taxes
* Donations and in-kind gifts are tax deductible for donors
* Groups become eligible for bulk mailing permits/rates
* Grant monies (and grants of in-kind services) are much more widely available to non-profit groups
* There are many commercial and social sharing and networking websites that allow official nonprofits to register their group to receive either free advertising, or donations from visitors of these sites (for example eBay.com, Google.com)

Status as a 501(c)(3) organization lends credibility to an organization. Donors can see that there is documented proof of the organization and its function, and that they are not supporting an organization of questionable mission or origin. Non-profits with the 501(c)(3) designation can be researched by potential supporters on sites like CharityNavigator.org and Guidestar.org.

Most groups that are well-run find 501(c)(3) designation to be to their distinct advantage, despite the effort and cost.

Most PTO’s find that their efforts are more effective as they are able to designate more money for the betterment of their children and their school and the return on the cost of the filing fee is enjoyed in short time. For PTOs that plan to be in existence for a number of years (as most do), designation as a recognized non-profit works only to their advantage; for those of temporary existence, the process of filing a 501(c)(3) is probably not worth the time and money.

Are you ready for your own non-profit? Read Steps To Starting A Successful Non-Profit to get started.