Fundraising Resources

5 Favorite Fundraising Resources

Jessica High — Wed, 08 Feb 2012 03:48:22 GMT

idealware.org/You have heard lots of fundraising advice from us, but what about our personal favorite resources? Here is a list of 5 resources that we love:

1) iDonate-- This giving tool is revolutionizing fundraising for ministries. By converting non-cash donations into funds for ministries, it is an essential tool. Check out this short video which explains why it is so powerful.

2) The Treasure House-- Similar to Facebook profiles, the Treasure House provides ministry profiles that you can easily search through in order to share resources, find ways to serve, and learn who is in your area.

3) The Give Away-- The Chronicle of Philanthropy runs this blog where they post news about how people and foundations are donating. Use this resource to stay up to date so you can write the best proposals according to foundations' standards.

4) Media for Ministry-- This site offers easy videos for ministries to learn how to get set up on social media and to use it effectively.

5) Idealware-- Through this resource, ministries can learn how to manage and select the best software to operate technology effectively.

The Generous Donut

Jessica High — Wed, 07 Sep 2011 05:00:00 GMT

The Generous Donut

   Donuts can be generous.

   Let me explain. More than 17 years ago, my wife and I decided we’d pick a place and go there year after year for family vacations. That place was Estes Park, CO. The kids have enjoyed it, appreciate the routine and things they call ours—family traditions.

   Well, one of the places we’ve come to appreciate is the Donut Haus. The Donut Haus has been in business for more than 30 years. They make handmade donuts and pastries. They say their hours are 6am to 12am, but in truth, they are usually sold out by 10:30. So we’ve learned to get their early particularly if you want your choice.

   What’s their secret? How do they sell out so quickly? Generosity. They have generous donuts. My favorite is the raspberry filled donut. But this is no ordinary raspberry filled creation. In addition to light flaky pastry with just a light frosting glaze, this thing is filled edge to edge with raspberry. You need a napkin to catch the red raspberry dripping out.

   Other places skimp on the filling—just a dollop in the middle and lots of bread. They are stingy on the stuff that counts. So we don’t buy donuts anywhere or anytime but the one time we go out to Estes Park. Their generosity has earned my business. Alas, if they could only figure out mail order!

   Churchill said it: “we make a living by what we earn and we make a life by what we give away” -- even with donuts.

--William F. High is the President/General Counsel of the National Christian Foundation Heartland. He may be reached at whigh@nationalchristian.com.

Don’t be an ‘iffy’ Asker

Bill High — Tue, 12 Jul 2011 05:00:00 GMT

As a grant writer, your challenge is to be donor-driven NOT donation-driven in your asking strategy. God’s work done God’s way will produce God’s results and will NEVER lack His resources.

Advisory Board v. Board of Directors

Jackie Jones — Fri, 10 Jun 2011 23:53:56 GMT

Recently, several Christian Foundation Grant subscribers have expressed interest in developing advisory boards in addition to their board of directors. Although an advisory board can provide valuable assistance to an organization and its board of directors, it’s important to distinguish the differences between these boards. Here are some guidelines for advisory boards or advisory committees.

When starting a nonprofit corporation, an organization must file articles of incorporation with the state in which it resides. Filing requirements include officers of the corporation, a board of directors, bylaws, and annual meetings.
A nonprofit corporation is required by law to have a governing board, typically referred to as its board of directors. For a religious nonprofit organization, the board of directors is (or should be) the critical body that determines the entity’s programs and investments and provides management guidance.

States can vary among respective requirements of a board of directors but the general idea is there must be a board of directors that serves as the ultimate governing body of the corporation. In addition to being legally responsible for the overall management of the corporation, the governing board has the ultimate responsibility for the organization’s activities and can be a prime target when matters of liability arise. The members of the board are fiduciaries; they are legally required to treat the organization’s assets and other resources with the same degree of care that they would their own. The board also helps create the vision, mission, values, and policies for the organization and makes sure that they are properly respected. Also, financial oversight is one of the key responsibilities of a nonprofit board.

Sometimes, a board of directors will elect to set up an advisory board. An advisory board (or committee) usually functions like any committee of the board. An advisory board can provide valuable assistance to an organization and its board of directors. Distinguishing the differences between an advisory board and board of directors is important for nonprofits to help avoid problems which can occur when the lines between the two groups become blurred.

The following is a set of guidelines for developing an advisory board obtained from Best of the Board Café, Second Edition by Jan Masaoka.

1. Develop a written description of the responsibilities, activities, and limits on authority of the advisory board, and share this description with prospective members.

2. Distinguish between the role of the governing board of directors and the advisory board. For example, a board of directors hires the executive director of the organization; an advisory board may draw up a suggested list of qualifications for the person or people hiring the executive director. A board of directors can direct staff to take certain actions; an advisory board can suggest actions to staff and can be angry if its suggestions aren't taken, but an advisory board can't compel staff to act. An easy way to communicate this distinction is not to use the term "board" for the advisory group; instead use "committee" or "council."

3. Consider asking a community leader to chair the advisory committee and act as a spokesperson for the organization in the community. Alternatively, have a board member lead the advisory committee.

4. If the main purpose of the advisory board is fundraising, consider a different name such as "Friends of X" or "Community Leadership Council." If you don't have volunteer leaders who will take responsibility for organizing and driving this group, delay creating it until you have found such leaders.

5. Don't establish an advisory board if you cannot commit the time and thought to getting results from the group, and to making the experience meaningful and rewarding for members. Too many organizations have erred by creating advisory boards where members felt ignored, or as if they were being asked for donations in the disguise of being asked to advise.

6. Don't be afraid to disband an advisory board that isn't achieving what it was established to accomplish. Consider instead asking members to be "Advisors" or a "Council of Advisors," both terms that give a mutual sense of affiliation without implying group meetings.

--Jackie Jones is the Marketing and Communications Director of Christian Foundation Grants. She may be reached at jjones@christianfoundationgrants.com.

IRS Qualifications for Non-Profit Status

Bill High — Thu, 12 May 2011 17:28:03 GMT

Non-profit and charitable organizations play an essential role in the economic and collective well-being of our local communities, our nation and the world. Nonprofits are designed to meet a societal need the government is not meeting or is not meeting well. They provide a structure for people to contribute their time, resources and expertise for a greater good. In short, non-profit corporations are for people, to help them achieve some common purpose.

    The term non-profit does not mean the company isn't financially feasible. Non-profit organizations are a specifically defined type of corporation registered with the Internal Revenue Service (IRS). Unlike individuals and business for-profit, when an organization is registered as a non-profit, the entity doesn't pay taxes on its income. Non-profit’s can accept donations from individuals and corporations who can then deduct their contributions from their taxable income. Other benefits for non-profits include lower property taxes and reduced postage expenses on certain size mailings.

   The most common form of non-profit is the 501(c)(3), a tax-exempt organization recognized by the IRS. The 501(c)(3) applies to "charitable" organizations. These are the nonprofits we most commonly contribute to, volunteer for, and hear about such as the Red Cross, American Cancer Society, and United Way. The IRS states for an organization applying for recognition of exemption as a charitable organization, it must show that it is organized and operated for purposes that are beneficial to the public interest (IRS.gov, Pub. 557). Some examples of this type of organization are those developed for the following services or programs:

•    “Relief of the poor, the distressed, or the underprivileged”
•    “Advancement of religion”
•    “Advancement of education or science”
•    “Erection or maintenance of public buildings, monuments, or works”
•    “Lessening the burdens of government”
•    “Lessening of neighborhood tensions”
•    “Elimination of prejudice and discrimination”
•    “Defense of human and civil rights secured by law, and”
•    “Combating community deterioration and juvenile delinquency” (IRS.Gov, Pub 557).

     Between 1999 and 2009, the National Center for Charitable Statistics (NCSS) reported a 31.5 percent increase in the number of non-profit organizations totaling to 1,581,111 in the United States. Thousands more are developed each year. These non-profit organizations are crucial to the economy and the quality of life in our communities. Click here for a link to the 1999 - 2009 report displaying the number of nonprofit organizations registered through 2009.

   Non-profit organizations provide a wide array of programs and services that government agencies and “for-profit” enterprises cannot address. In order to provide these programs and services revenue or income is needed for them to exist. According to William F. High (2010) “your funding plan must be diverse and broad-reaching” (High, 2010, page 18). A diversified approach may include revenue from many sources such as:

•    “Earned-Income / Revenue Sources,
•    Online and Noncash Giving, and
•    Major Donor Services – Asset Giving” (High, Page 19).

Grants for Christian Ministries and More by William F. High can be ordered by clicking here.

--Jackie Jones is the Marketing and Communications Director of Christian Foundation Grants. She may be reached at jjones@christianfoundationgrants.com.

Should you pay a grant writer by percentage?

Bill High — Thu, 12 May 2011 00:39:57 GMT

A frequently asked question by non-profits about grant writing is can you pay a grant writer a percentage of the grant? In the for-profit marketplace, people are frequently paid on commission. It’s a standard mode of operation for sales executives to be paid a base salary, plus commission. In other words, they are paid a percentage of what they bring in. In the non-profit arena, some consider this practice to be unethical. Donor trust is vitally important. To earn and keep that trust, every aspect of the non-profit activity must be absolutely ethical. Nowhere is ethical behavior more essential, nor by its absence more damaging, than in charitable fundraising.

             Founded in 1960, the Association of Fundraising Professionals (AFP) is a professional association of individuals and organizations who generate philanthropic support for a wide variety of charitable institutions. For 50 years, AFP has been the standard-bearer for professional integrity in fundraising. AFP created a Code of Ethical Principles and Standards to reflect ethical fundraising practices and offer guidance to those working in the industry. The code is meant to help members steer away from conduct that might damage their personal reputation or that of the non-profit being served.

            AFP believes that individuals serving a charity for compensation must accept the principle that charitable purpose, not self gain, is paramount. AFP states that “percentage based compensation can encourage abuses, imperils the integrity of the voluntary sector, and undermines the very philanthropic values on which the voluntary sector is based. AFP stands firm with its Standards which prohibits members from working for percentage based compensation or accepting finder’s fees.

            The AFP Standard No. 21 states: “Members shall not accept compensation or enter into a contract that is based on a percentage of contributions; nor shall members accept finder’s fees or contingent fees.”

The objective for this Standard is to

1)      Ensure donor intent. When a donor gives a dollar for a non-profit, they assume that 100% of that dollar will actually go to the non-profit. If a percent is shaved off for the person fundraising, this is deceitful to the donor.

2)      Prevent personal benefit. No individual should benefit from the act of asking for or receiving a donation on behalf of a charity. If someone were to be in a position to benefit, they might put undue pressure on a donor to give, which could result in irreparable damage to the relationship between the donor and the non-profit.

            In other words, a Fundraiser (or grant writer) should be hired for their knowledge, experience, and expertise in helping to obtain funds, not on a percent of what they raise. The organization should keep in mind that you get what you pay for. Ultimately, the decision about whether or not to pay a grant writer a percentage of the grant or from the grant itself lies in the hand of the funder. If a funder allows compensation by percentage, then it is allowable. If a funder says, "No," then it's a mute point. You won't get the money anyway.

Reference

AFP (2009). Association for Fundraising Professionals: Vision and Mission. Retrieved May 8, 2011 from http://www.afpnet.org/About/content.cfm?ItemNumber=726&navItemNumber=508

--Jackie Jones is the Marketing and Communications Director of Christian Foundation Grants. She may be reached at jjones@christianfoundationgrants.com.

Dogfood Generosity

Bill High — Fri, 06 May 2011 21:02:30 GMT

Dusty, our golden retriever, has two favorite times of day—breakfast and dinner. That’s all that he gets. The vet says it will keep him trim, and so far that is the case.

      In those two times of the day, Dusty devours his food. We’ve timed it—less than 30 seconds. But there’s a twist. Every now and then, instead of filling his bowl, we’ll put the entire bucket of dog food out—all 20 pounds of it.

     Now if you’ve seen Marley and Me, you’ve witnessed the insatiable hunger of a big dog. They can demolish an entire bag of dog food with nothing more than a good burp at the end.   But not Dusty.

     When we put the entire bucket of dog food before Dusty, he stops, he walks around it, and he lays down. He whines. He’s puzzled. He’s waiting for his portion—a small dog bowl portion. He won’t eat from the bucket. Even though he could satisfy himself to his stomach’s end, he stops.

     He’s conditioned himself to accept just a little and even when the riches of dog food heaven are offered to him, he refuses. Alas, it occurred to me how much like Dusty we all tend to be.

     We are conditioned to receiving little. We consider little of the riches of God and the depths and wonders of His mysteries and grace. We are quick to devour our little nuggets and think that is enough, yet our gracious God is waiting with an entire bucket, yea entire buckets.

     When we learn to accept the greatness and graciousness of God and His great provision, then perhaps we might learn to be generous ourselves. Indeed, how little we offer others because we see ourselves as impoverished when in fact we are indeed blessed with buckets and buckets.

--William F. High is the President of the National Christian Foundation Heartland. He may be reached at whigh@nationalchristian.com.

Understanding Private Foundations

Bill High — Wed, 16 Feb 2011 17:16:58 GMT

I’ve seen it many times. A Christian family decides they want to formalize their giving. They go get advice from their lawyers and accountants who often are not Christians. Those advisors have the frame of reference of starting a private foundation, so off they go.

The first few years may be bumpy as they learn the ropes of minimum distributions, excise taxes, the types of organizations they can support and of course filing the tax return. But the problem they miss, and their advisors miss is what happens when the founders pass away.

When the founders pass away, the foundation typically will have a set of bylaws allowing for the appointment of new board members. New board members are appointed, who realize that they are sitting on top of treasure. In other words, they have the opportunity to support organizations. The first generation is often kind to the wishes of the founders and tend to generally support the same organizations.

However, as more board members get added, and as more generations intervene, the wishes of the founders get muted. Everyone tends to forget why the founders supported a particular organization. Accordingly, the wishes and desires of the foundation fall away, and the foundation often morphs into something other than Christian.

Certainly, some wise founders associated with Christian council may wisely put in enough road blocks and provisions in the bylaws to keep the foundation Christian. But few do. If they make these protections, then it can be an appropriate vehicle.

I find it interesting that of the 100,000 private foundations in the country only 4500 are Christian foundations which take applications. (See www.christianfoundationgrants.com). It causes one to wonder how the remaining 95,000 started out and then where they ended up.

Therefore, one should look at foundations' giving history carefully to determine the foundation's genuine interest. For those seeking fundraising, it is especially important to pursue foundations that make their faith-based interest clear, rather than just foundations that have a history of "nice" giving. Using CFG's tools, you will be able to easily determine foundations' standings, and we make sure to keep the highest quality foundations.

--William F. High is the President/General Counsel of the Servant Christian Community Foundation (www.servantchristian.com). Servant’s mission is to inspire, teach and facilitate revolutionary biblical generosity. He may be reached at whigh@servantchristian.com.

New Year's Resolution #1- Successful Grant Writing in 12 Easy Steps!

Bill High — Wed, 02 Feb 2011 01:29:39 GMT

Writing a Proposal

Structure, attention to detail, concise persuasive writing, and a reasonable budget are the critical elements of the writing stage. There are many ways to organize proposals. Read the guidelines for specifications about required information and how it should be arranged. Standard proposal components are: the narrative, budget, appendix of support material, and authorized signature. Sometimes proposal applications require abstracts or summaries, an explanation of budget items, and certifications.

1. Narratives-Statement of need

Purpose, goals, measurable objectives, and a compelling, logical reason why the proposal should be supported. Background provides perspective and is often a welcome component.

2. Approach

Method and process of accomplishing goals and objectives, description of intended scope of work with expected outcomes, outline of activities, description of personnel functions with names of key staff and consultants, if possible.

3. Method of evaluation

Some require very technical measurements of results. Inquire about expectations.

4. Project timeline

Paints a picture of project flow that includes start and end dates, schedule of activities, and projected outcomes. Should be detailed enough to include staff selection and start dates.

5. Credentials

Information about the applicant that certifies ability to successfully undertake the proposed effort. Typically includes institutional or individual track record and resumes.

7. The HOOK

There are many ways to represent the same idea. However, the HOOK tailors the description of the idea to the interest of a particular funder. The HOOK aligns the project with the purpose, and goals of the funding source. This is a critical aspect of any proposal’s narrative because it determines how compelling reviewers will perceive your submission to be.

8. Budget

Budgets are cost projections. They are also a window into how projects will be implemented and managed. Well-planned budgets reflect carefully thought-out projects. Be sure to only include those things the funder is willing to support. Many funders provide mandatory budget forms that must be submitted with the proposal. Don't forget to list in-kind support and matching revenue, where appropriate. Be flexible about your budget in case the funder chooses to negotiate costs.

9. Supporting materials

Supporting materials are often arranged in an appendix. These materials may endorse the project and the applicant, provide certifications, add information about project personnel and consultants, exhibit tables and charts, etc. For projects that include collaborations or partnerships, include endorsements from the partnering agencies. Policies about the inclusion of supporting materials differ widely among funders. Whether to allow them usually depends upon how materials contribute to a proposal's evaluation. Restrictions are often based on excess volume, the element of bias, and relevance. Find out if supporting materials are desired or even allowed. Be prepared to invest the time to collect resources, produce a tape, document capability, update a resume, collect letters, include reference reports or whatever is needed.

10. Authorized Signatures

Authorized signatures are required. Without these, proposals may be rejected. Be sure to allow yourself time to acquire a needed signature.

11. Specifications

Tailor proposal writing to specifications found in the guidelines. Include only the number of pages allowed. Observe the format. Is there a form to complete? Must the proposal be typed, double spaced, on 8-1/2 x 11 inch pages? Are cover pages allowed or desired? Caution! — the beautifully bound proposal is not always appreciated or allowed. Be concise. Elaborations should add depth and scope, not page fillers. Be prepared to write more than one draft.

12. Submission checklist

The complete proposal must be submitted on time in the requested format with the requested number of copies and original authorized signatures. Address the proposal as directed in the guidelines. Be sure to include required documentation.

What hinders your grant writing? What would your 13^th step be?

Source; Corporation for Public Broadcasting

Ten Tips to Make Your Website Work for Your Donors

Bill High — Wed, 01 Dec 2010 00:24:17 GMT

The online world is here to stay for ministries. For that reason, it’s a good time to evaluate your website from a donor’s perspective. Here are 10 tips:

1. Be concise. Most donors are scanners. Big blocks of text scare people off. Use bullet points and small paragraphs.

2. Use pictures. Show the story. Don’t just tell it with text. Pictures produce emotions, and let your readers “feel” your mission.

3. Highlight your vision, mission and key objectives. Make sure that people know where you are going, how you are going to get there and your 3-5 mission critical activities.

4. State the problem clearly. Make sure that your donors know what problem you are trying to solve. Make sure your solution is clear as well.

5. Have a “donate” button. It’s imperative that you give people a way to help. Include cash, credit card and non cash giving options. See www.idonate.com as one non cash service option.

6. Make giving easy. No more than 2 clicks away to the donate page.

7. Give something away. The best bet: give away information. Maybe you can give away a white paper. Give them a reason to visit your site because of timely, relevant and shareable content.

8. Provide contact information for board and staff. People want to know who is involved with your organization.

9. Keep it current. Enough said.

10. Optimize your site so people can find it. Make your site easy to find with search engine optimization. SEO work doesn’t have to be costly. Use a provider from elance.com for instance.

--William F. High is the President/General Counsel of the Servant Christian Community Foundation (www.servantchristian.com). Servant’s mission is to inspire, teach and facilitate revolutionary biblical generosity. He may be reached at whigh@servantchristian.com.