- DIRECT MAIL - one of the most frequently used methods for raising operations monies. Also one of the most expensive if a “shotgun” approach is used, making it necessary to again identify the market you are mailing to, and to carefully consider the cost of mailing. Direct mail campaigns usually bring a four to 10 percent return.
- SPECIAL EVENTS - an exciting way to raise funds which can also result in exposure for the organization and good public relations. There are very good and very bad ways to run special events, and three rules to consider in this area to protect your success ratio are:
- Be sure your board and staff will SUPPORT the event and are willing to dedicate the time and energy it will need.
- Remember, they can be very helpful in selling tickets and generating interest.
- When planning your budget for the event, include every necessary hour of staff time at the going rate.
- The event in year two should cover all expenses and make a net profit of 25 to 35 percent.
- EARNED INCOME – the process of developing products or services for sale to benefit the organization. This is perfectly legitimate for a non-profit and can result in exciting programs, as well as innovative ways to use the time of your staff, volunteers, and clients.
- PLANNED GIVING – an extremely viable means of making additional revenue, particularly as society grows older. This can include bequests, uni-trusts (a process of actually having a donor pay his/her entire fortune to the non-profit during his/her life expenses), plus many other giving “Instruments.”
- BOARD OF DIRECTOR INCOME – an accepted and necessary form of giving. Corporations and foundations want to know what percentage of the board actually gives, and some even include that question on their questionnaire when you are applying for a grant.
- CORPORATE & FOUNDATION CASE STATEMENT/PROPOSAL REQUESTS – a tried and true way to raise money. Most well-funded, state teen pregnancy prevention organizations receive grants from public and private sources. Contact fellow state coalitions to give and receive ideas about funding sources, responding to RFPs, and/or, participating in cooperative agreements.
- “CAUSE-RELATED MARKETING” – a way to work the marketing and public relations departments of the corporation to work out a “business deal” to benefit both organizations.
- TELEMARKETING – a select way to raise money only for certain projects. This method has been misused by some people in the field-- you want to be really sure that your process is a secure one. Door to door canvassing can be included in this.
- FEE-FOR-SERVICE – the tee that is generated from clients. Although non-profits are many times negative in this area, it is a vital way to gain several other benefits:
- The fee gives the clients more of an invested feeling in the organization, and many times makes them feel more pressure to show up on time for appointments of counseling, service, or treatment.
- The donor has another source of income to look at from the organization.
- STAFF INCOME – it is estimated that every American donated some $250 each year to charity. You are not trying to get them to give more money – just redirect their giving effort.
- IN-KIND DONATIONS – an invaluable source of support. In-kind donations can include services and goods. From obtaining used sheets and linens from the local hospital which can only use them a certain number of days, to obtaining free services of a corporate executive to work on a long range plan. This can meet needs in virtually all phases of the organization.
- MEMBERSHIP/INVESTMENT CAMPAIGN – an excellent way to gain more constituencies for your organization. Calling this an “Investment Campaign,” may be more appealing to some donors than a “card carrying membership.” Some non-profits are so dedicated to obtaining new members that they pay board or staff members $30 for a $30 membership obtained. They know that they can retain that member and have an ongoing supporter for their cause.
- HONORARIUM FOR STAFF – the expertise held in the staffs of non-profit organizations is phenomenal! They can speak on issues for corporation employee programs from cancer research to youth unemployment. This should be developed as a money making venture if:
- There are 25 plus persons attending.
- The organization will agree to a $50/$100 minimum donation.
- The organization will supply you with a mailing list of attendees (so you can send them a newsletter).
- INTEREST INCOME – unlike the “real business world,” many non-profits feel they cannot make interest income. The truth is banks are now brokers, and brokers are now bankers. There is absolutely nothing wrong with holding your cash reserve in an interest-bearing money-market account, with transfer capabilities each month to meet expenses. Donors want to feel that you are fiscally responsible, not unlike themselves, and make every available dime on your money.
- CAPITAL CAMPAIGN – not just bricks and mortar but a campaign for any new influx of money. This has the need for an expanded board timeline and definite goal. Most capital campaigns always bring in new donors to the cause due to the “new/renew” feeling of thise type of campaign.
- ANNUAL CAMPAIGN – sometimes referred to as the membership campaign, but not always. This is your annual appeal for support and should include two approaches, one to ask for the money and one to act as a “memory trigger.” Most times the second letter doubles the response to the first.
- MATCHING GIFT PROGRAM – by carefully inventorying your staff, volunteers, and board, you can determine if they or their families work for companies that have matching gift programs. This means that the organization will match any commitment (may times four to one) made by that contact within your organization. This is a consideration when you are seeking volunteers or board members. Go for one from a matching gift company!
- VOLUNTEER INCOME – this doesn’t sound possible that we would mention it, but it is extremely viable. In one instance in Colorado, the Winter Park Handicapped Ski Program has over 850 volunteers that teach some 750 handicapped persons to ski weekly. They are given an annual ski pass worth $450 for their volunteer service. When approached, they were happy to contribute a $40 annual gift back to the program for the honor or serving. This became instant income of $34,000 annually.
- SHARED SERVICES – One of the most overlooked forms of income. Any way that you reduce the bottom line outlay of your organization is worth exploring. By sharing the expenses of administration, you both win.
- BETTER USE OF CURRENT FUNDS – one of the most important efforts to pursue prior to the approval of your budget each year. Get an outsider’s opinion on innovative savings methods and try to get in-kind donations to cover some of the basics. The leading expenses for non-profit organizations are usually salaries, rent, and printing.
Source: Huberman, B., Advocates for Youth, 2009.
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