FBEA CONFERENCE 2011 - FUNDRAISING & FINANCE JEOPARDY!Shelburne Farms and Green Mountain Coffee Roasters teamed up to pres...
FUNDRAISING & FINANCE JEOPARDY! - QUESTIONS ANSWEREDANNUAL  • Annual giving to an organization generally increases after a...
GRANTS   •   The Foundation Center (http://foundationcenter.org/) provides FREE access on its website       where anyone c...
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Fundraising finance jeopardy handout

  1. 1. FBEA CONFERENCE 2011 - FUNDRAISING & FINANCE JEOPARDY!Shelburne Farms and Green Mountain Coffee Roasters teamed up to present an interactiveworkshop designed to uncover some of the do’s (and don’ts) of fundraising and financial reporting.Come prepared to test your skills in a fun “game show” format and share your knowledge aboutgrant writing, reporting, budgeting, bookkeeping, events and annual appeals. Co-presented by: Sue Dixon, Shelburne Farms sdixon@Shelburnefarms.org Eliza Dodd, Green Mountain Coffee Roasters eliza.dodd@gmcr.comA few resources for fundraising and financial information:Association of Small Foundationshttp://www.smallfoundations.org/Amnesty – Our Movement Must be Fundedhttp://www.amnesty-volunteer.org/usa/southRTG/Fundraising/TOC/index.htmlBoard Sourcehttp://www.boardsource.org/Burke Blog – Penelope Burk “Donor Center Fundraising”http://www.burksblog.com/Charity Channelhttp://charitychannel.com/Foundation Centerhttp://foundationcenter.org/Cooperating Collections of the Foundation Centerhttp://foundationcenter.org/collections/Free Management Libraryhttp://managementhelp.org/nonprofitfundraising/Fundraising BLOG for Nonprofitshttp://managementhelp.org/blogs/fundraising-for-nonprofits/2010/03/29/basic-fundraising-philosophy/GuideStarhttp://www2.guidestar.org/rxg/analyze-nonprofit-data/index.aspxStrengthening Nonprofits – Building Multiple Revenue Sourceshttp://strengtheningnonprofits.org/resources/guidebooks/BuildingMultipleRevenueSources.pdfThird Sectorhttp://www.tsne.org/site/c.ghLUK3PCLoF/b.1352209/k.B068/Nonprofit_Capacity_Building_Leadership__Management_Support.htmThe Nonprofit Centerhttp://www.nonprofitcenterboston.org/site/c.ddKGIQNuEmG/b.1363307/k.A14/Bostons_Home_for_Social_Change_Nonprofits.htm
  2. 2. FUNDRAISING & FINANCE JEOPARDY! - QUESTIONS ANSWEREDANNUAL • Annual giving to an organization generally increases after a capital campaign. • Make it easy for people to support your organization: insert donation envelopes in with your publications, design “donate now” options into your website and electronic communications, and distribute donation envelopes with outreach material on information racks and information tables. • 73% of the $200+ billion raised in the U.S. during 2010 came from individuals. • Annual meeting is held to keep key stakeholders and donors engaged and apprised of their organization’s financials and activities. It can be as a fun and festive way to highlight your organization’s recent accomplishments. • The scale of gifts is typically pyramid-shaped with most donors giving at basic levels and fewer at the highest levels. This tool is crafted new each year to help estimate the number of donors needed at what giving level.BRIGHT IDEAS • The most effective way to fundraise - better than bake sales, better than barn dances – is simply to ask people for their support of your mission-driven work. When talking to potential supporters always have the answers to the 10 most difficult questions that you might be asked about in your back pocket. • Warren Buffett or Bill & Melinda Gates collectively made the largest bequest in the history of philanthropy: $31 billion dollars, yet it is not realistic that high profile benefactors will support all organizations, better to engage local supporters who benefit from your programs and understand their impact. • Bequests are sources of long-term legacy support for your organization. Donors must work with their own attorney to draft a bequest but your can provide specific bequest language – including the legal name and address of your organizations, to encourage and make it easy for your supporters to include your organization in their estate plans. • Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 allows individuals 70½ and older to distribute (up to $100,000) tax-free from what pot of money (Hint: intended for retirement) direct to charity. This tax advantage will only be valid through December 2011.FINANCE • After two consecutive years of decline, charitable giving is up by 3.5% in the U.S. during 2010. • Never offer performance-based compensation for fundraisers, it is considered unethical by the AFP (Associate of Fundraising Professionals) code of standards. • Form 990 must be filed annually by public charities and foundations with annual gross receipts of $25K+. This public document contains a list of trustees, recent grants and other useful information for foundation research • When it comes to raising money, it is essential that you know and understand your annual operating budget, which delineates the cost of your operation and how the money to cover the cost is to be generated. • Return on Investment (ROI) is a comparative measure of the amount of funds raised for each dollar spent on fundraising activities.
  3. 3. GRANTS • The Foundation Center (http://foundationcenter.org/) provides FREE access on its website where anyone can look up foundations and link quickly to their websites and most recent Form 990. – Bookmark it! • Always leverage your organization’s foundation contacts: if you, other staff or board members have a personal connection with a trustee or program officer you will often benefit from soliciting their input, advice or guidance prior to submitting your proposal. • Overhead or indirect expenses are generally calculated as a percentage (often 10% to 25%) of the total budget in a grant proposal, to cover organizational costs that can not be directly written into the proposal such as heat, lighting, electricity, financial oversight, information technology, etc. Some foundations do not allow overhead expenses. • The foundation program officer reads your reports and assesses progress towards goals. Whenever possible, get to know him/her and consider him/her a project partner; meet them or talk by phone; keep them informed, provide opportunities for them to learn about the impact (and challenges) of your work. • Your grant proposal has the most chance of success when: project goals and objectives of the grantee and those of the granter are in agreement, and the recipient has convinced the provider that the proposed plan described for bringing about the goals is reasonable and will be successful.RELATIONSHIPS • Face-to-face solicitations are the most effective way to gain support for your organizations. • Companies and corporations contribute less than 5% of total dollars raised by nonprofit organizations. Corporate support is often relationship based or from a marketing budget and tied to a specific geographic area of operation. • Board of Directors should be one of your best fundraising tools because they know and understand your organization, as volunteers and as donors, and are connected within your community. • Association of Fundraising Professional (AFP) is an organization that fosters the development and growth of the fundraising profession, fosters high ethical behavior in the profession, and preserves and enhances philanthropy and volunteerism.MISCELLANEOUS • More than 1.8 million tax-exempt organizations are registered with the IRS. • When speaking to major donors always allow your enthusiasm shine! • Case statement is a concise document explains your organization’s mission, activities and funding needs to potential donors. It should be reviewed and updated in advance of a significant fundraising campaigned. • The word “philanthropy” was coined 2,500 years ago by the ancient Greeks, etymologically it means “the love of humanity.”Sue Dixon, Shelburne Farms sdixon@Shelburnefarms.orgEliza Dodd, Green Mountain Coffee Roasters eliza.dodd@gmcr.com