[NA] Help group with endowment request [NA]

Let'sgoflying!

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Dave Taylor
What are people looking for when they bequeath or donate to a charity?
A local group is writing a proposal to request assistance with their project and all I could suggest is: that they seem like they are not going to waste the money, that it won't be stolen by unscrupulous types in the organization, and that the funds would be tax deductible. (they are an irs-charitable organization).
Thanks
 
Let'sgoflying! said:
What are people looking for when they bequeath or donate to a charity?
A local group is writing a proposal to request assistance with their project and all I could suggest is: that they seem like they are not going to waste the money, that it won't be stolen by unscrupulous types in the organization, and that the funds would be tax deductible. (they are an irs-charitable organization).
Thanks

Personally, I don't even care if they are tax deductible. I donate money to several non-deductible organizations. The cause has to be something I think is worth more than flying money, then you can tack your conditions on.
 
Let'sgoflying! said:
What are people looking for when they bequeath or donate to a charity?
A local group is writing a proposal to request assistance with their project and all I could suggest is: that they seem like they are not going to waste the money, that it won't be stolen by unscrupulous types in the organization, and that the funds would be tax deductible. (they are an irs-charitable organization).
Thanks

Dave, folks are generally looking to donate to causes they support, causes that match their values, or causes that touch their heartstrings in the right way. They will look to help neighbors or people they know. Tax deduction is usually a secondary benefit... it might affect how much they give more so than whether they give. Foundations (including the United Way) generally require tax benefit in addition to supporting the cause.

I know a couple of folks down here in the cause-marketing and foundation grant-evaluation areas. And I know a number of folks working in non-profits that ask for the grants.

It's easiest to approach folks where the pitch is "helping neighbors" or "helping community". If someone they know is affected, it's much easier. This is how American Cancer Society or National MS society are effective: they enlist the help of friends and family of cancer patients or survivors. Or if your neighbor is a single parent who needs money for a child's operation, you are helping a neighbor. Helping community is stuff like supporting the PTA, a homeless shelter, a clinic, the local zoo, a church, or similar things.

Thus, the key thing that the charity can do is become known to the community at large. Standard networking & community leadership techniques apply. Networking and community service are far more effective than Public Radio-style "begging for bucks".

Grant-writing is like contract-proposal writing. You need to specify the cause, who & how it benefits, when and how the funds will be used, the overall project plan (if it's for a project), the managment, the reason the charity exists, the board of directors (see networking techniques, above).

Here's a couple of thoughts that might help you better distill the requirements. Most foundations are very willing to talk to you about their grant requirements. They might even have samples of successful proposals & copies of the applications. At the very least, you can get a copy of the grant application. Look for a couple of foundations based in your area, or talk to some folks at the United Way (if there's not one in your specific area, try El Paso). My bet is that they would gladly talk to you and give you advice. I'll see if I can get a copy of the grant info for a couple of local charities here.

bill
 
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Let'sgoflying! said:
What are people looking for when they bequeath or donate to a charity?
A local group is writing a proposal to request assistance with their project and all I could suggest is: that they seem like they are not going to waste the money, that it won't be stolen by unscrupulous types in the organization, and that the funds would be tax deductible. (they are an irs-charitable organization).
Thanks

Your suggestions are a good start. I don't have enough reserve $$ laying around to worry about deductable and if it's a good cause that wouldn't affect my decision at all. Nice side benefit at tax time if you can pull it off.

I'm blunt and to the point which kind of irritates people wanting my money but oh well.

My favorite #1 question: If I give you $10, what are you going to do with that $10 and where does it go?
Hint: (1) Tell me the truth up front when I ask. (2) Do not lie to me. (3) Do not hand me some silly brochure that doesn't tell me anything. (4) Don't play on my emotions with a sob story. (5) Don't wishy washy yourself around my questions thinking I'll forget what I asked because I won't.

If it costs you $9.75 of the $10 for administrative/operational costs and you tell me up front, that will not affect my decision to donate or not. Let me even suspect you're lying to me or get a bad feeling or try to shove it down my throat, or you get $ZERO. If I'm interested and think the cause is worthwhile, the $$ is likely to go that route.

When it applies under certain conditions, #2 question: Why should I go through you and not donate directly to _____ that actually needs the $$? (I get some interesting answers with that one..usually involving lying or deception)


BTW: The company I work for has a give-money-to-the-abused-and-needy organization that invades us annually. They bring in a victim they helped to tell their story to improve donation levels. Nothing wrong with that IMO. Over the years I've heard one specific sob story skip a year or two but repeat itself over and over with only minor script changes (name changed, son vs daughter, husband vs boyfriend, etc) and the plot line is identical down to the individual details of the situation....I've heard this story from 4 different individuals that I distinctly remember. Always "this happened to me..." NOT "this other person we helped had this happen to them..." Bad move. They get squat and I tell them exactly why.

I'm not excessively stingy. I'm just relatively considerably poor thus selective to avoid getting ripped off. And I've been known to help directly myself (hands on and/or financially) instead funding an organization.
 
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Let'sgoflying! said:
What are people looking for when they bequeath or donate to a charity?
A local group is writing a proposal to request assistance with their project and all I could suggest is: that they seem like they are not going to waste the money, that it won't be stolen by unscrupulous types in the organization, and that the funds would be tax deductible. (they are an irs-charitable organization).
Thanks

Along the lines of "not going to waste the money" and "it won't be stolen by unscrupulous types in the organization", a topic Frank C. hit rather soundly, some of us care what % is going to administrative and fund raising costs. You tell me the entire staff is volunteer and they work out of two duct taped together refrigerator boxes on a street corner using donated excess roll-over cell phone minutes for phone calls so that 100% of the money donated goes to recipients and I'm hooked. Tell me 0.07% goes to recipients and I'm asking Frank's second question: Why shouldn't I simply donate directly to the recipient?
 
Ed Guthrie said:
Along the lines of "not going to waste the money" and "it won't be stolen by unscrupulous types in the organization", a topic Frank C. hit rather soundly, some of us care what % is going to administrative and fund raising costs. You tell me the entire staff is volunteer and they work out of two duct taped together refrigerator boxes on a street corner using donated excess roll-over cell phone minutes for phone calls so that 100% of the money donated goes to recipients and I'm hooked. Tell me 0.07% goes to recipients and I'm asking Frank's second question: Why shouldn't I simply donate directly to the recipient?
Be careful of accounting, though, Ed. American Red Cross says that only 6% of revenue is administrative and overhead, but when you see their office on the Avenue of the Americas you see it can't be so.

Fundraising can be part and parcel of "education" which is charged to education but dedicated to raising funds. Depends on how creative you can be. We ask, how many $$s pass through divided by how many trips are executed - is the quotient reasonable?

I run one of these organizations. It's a constant battle. When we had to fire an executive director 3 years ago, I felt it appropriate to divert the US mail to a PO Box (I was fiduciarily in charge). Box diversion isn't smooth, and two checks got returned to sender. The two granting organizations cancelled their checks and I had to call to explain our situation.
 
good stuff, thanks - I'll pass it on.
I knew you guys would know.
 
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