How to get a Small Charity Going in Arizona?

I had a very interesting call the other day from a person in Arizona who is a new board member on a small, local nonprofit out there. He called because he's been on the board of this charity for less than three months and he is already frustrated by the situation that nonprofit is in. He really wants to help, but doesn't "know the fundraising game enough to be of real help." The group has decided that it wants to start an endowment so that they don't have to "keep going out to the same people in the community time after time – it causes ill will among some of the contributors and it's a lot of work." Could I help him with some advice?

Here are the relevant particulars: This little entertainment group is 18 years old, so they're not a "start-up" situation. They have an annual budget of about $40,000 a year. Most of that budget comes from ticket sales that amount to about $20,000. They receive state, county and city assistance to the tune of about $5,000. They raise about $5000 in general contributions from the general public, and about $10,000 in corporate sponsorships.

This gentleman also described that board members older, getting tired and worn out, and are involved in asking corporations for money, and that they do this on an event-by-event basis, so that Mary goes to the bank one time and Mark goes the next time, always for little dribs and drabs, etc. They would like not to be involved in such "heavy fundraising" activities. They want the endowment to be able to put the whole thing on automatic and let it pay for itself.

What would you do with this situation, dear reader? Basically my advice was in two different areas. First, with regard to the endowment, Second with regard to sprucing up their fundraising effort.

On the endowment, it's clear they are thinking in to mutually exclusive directions. On the one hand they want to get themselves out of that onerous fundraising, and they' like to do it pretty soon – fewer than 5 years. On the other hand they want to raise endowment – but they don't quite realize that endowment is raised over long spans of time, often from planned gifts. They aren't seeing that if they're only raising $15,000 from individuals and corporations each year they're not going to have the fundraising strength to go out to the community for the $1 million it will take to "put the whole thing on automatic." So their concept of how to raise endowment money needs serious adjustment.


Let me tell you more about this tomorrow. It gets better as we go along.

How to get a Small Charity Going in Arizona?

I had a very interesting call the other day from a person in Arizona who is a new board member on a small, local nonprofit out there. He called because he's been on the board of this charity for less than three months and he is already frustrated by the situation that nonprofit is in. He really wants to help, but doesn't "know the fundraising game enough to be of real help." The group has decided that it wants to start an endowment so that they don't have to "keep going out to the same people in the community time after time – it causes ill will among some of the contributors and it's a lot of work." Could I help him with some advice?

Here are the relevant particulars: This little entertainment group is 18 years old, so they're not a "start-up" situation. They have an annual budget of about $40,000 a year. Most of that budget comes from ticket sales that amount to about $20,000. They receive state, county and city assistance to the tune of about $5,000. They raise about $5000 in general contributions from the general public, and about $10,000 in corporate sponsorships.

This gentleman also described that board members are mostly older persons, who are getting tired and worn out, and are involved in asking corporations for money. He also said that they do this on an event-by-event basis, so that, for example, Mary goes to the bank one time and Mark goes the next time, always for little dribs and drabs, etc. They would like not to be involved in such "heavy fundraising" activities. They want the endowment to be able to put the whole thing on automatic pilot and let it pay for itself.

What would you do with this situation, dear reader? Basically my advice was in two different areas. First, with regard to the endowment, Second with regard to sprucing up their fundraising effort.

On the endowment, it's clear they are thinking in to mutually exclusive directions. On the one hand they want to get themselves out of that onerous fundraising, and they' like to do it pretty soon – fewer than 5 years. On the other hand they want to raise endowment – but they don't quite realize that endowment is raised over long spans of time, often from planned gifts. They aren't seeing that if they're only raising $15,000 from individuals and corporations each year they're not going to have the fundraising strength to go out to the community for the $1 million it will take to "put the whole thing on automatic." So their concept of how to raise endowment money needs serious adjustment.

Let me tell you more about this tomorrow. It gets better as we go along.