Year: 2010

The biggest mistake that many non-profits make is their belief that grants from corporations, foundations and government will continue, or (even) increase, over the long-term.

Historically, those sources of funding for specific programs either remain the same or decrease – especially during rough economic times (Remember !! … It wasn’t that long ago).

While overall costs of operation tend to rise, few foundations or corporations want to make long-term commitments to a non-profit organization.

Planning-for-the-future, therefore, involves identifying potential sources of funding sufficient to ensure continuation or expansion of the programs that satisfy the needs of the people and the communities being served.

Worded another way, “Ensuring future funding requires minimizing the risk of losing a large percentage of your income.”

Most foundations help a NPO initiate a program/concept, help them create the structure that will support it, and then go on to do the same with other organizations.

Corporations want to be perceived as supportive members of the community. The more NPOs they support, from the same, limited pot of money, the more visible they’ll be and (generally) the better their image.

It’s also dangerous to rely just on events — no matter how successful, as someone else’s event or activity may prove to be a greater attraction for your attendees, or the economy may engender second thoughts about buying those event tickets.

Ask yourself, “When the grant for a specific program runs out, do you end that program and discontinue service to those who need it, or will you have a backup plan … a reliable source of ongoing funding ??”

Roughly 80% of contributed dollars come from individual donors or their estates. And the common wisdom is that at least 80% of that amount — or about two-thirds of all contributed dollars – come as major gifts from individuals.

A major gift program is easier to design/implement and more cost effective than direct mail and the vast majority of events. Major gifts are also a more reliable source of long-term charitable funding than all others.

And, by the way, the second biggest mistake that many non-profits make is to assume that this doesn’t apply to them !!

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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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Have you seen The Fundraising Series of ebooks ??
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There used to be hard-and-fast rules as to what was, or wasn’t, a special event. Today, everything gets that label, from a small cocktail reception, to a board lunch, to a Gala Auction for 1,000.

Nonprofits think special events are cool and a great way to raise money, but they’re only partially right. Events are indeed cool, but only a great way to raise money if the organization has the donor base to make it happen.

To do an event, your organization needs:
• A great donor/mailing list of people who will want to come to an event to support your work;
• Board members who will step up to the plate, and make an example-setting contribution;
• Leaders who will make calls to friends and colleagues to engender their support/participation;
• A great honoree or two who ”bring” more people and money to the table;
• Co-Chairs and a Host Committee who will deliver their own contributions and those of others; and,
• A staff event coordinator who does nothing but the event … because that person will have no time to do anything else.

No one wants to spend an evening listening to talking heads. Learn to be brief, and if you must present a long biographical history of someone, do it in the evening’s printed program and/or in a quick (2-3 minute) video presentation.

There are a lot of variables to the success of an event. The evening is only so long; don’t try to do too much. If you have two honorees and two presenters you’re done !!

And, one thing to remember, it takes years to build a major event that people mark on their calendars as a “don’t miss.”

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Have a question about creating or expanding your special event? Email me at Info@NatalieShear.com. With over 30 years in conference and event planning, we can help you turn your vision into reality.
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Have you seen Natalie’s ebook on Special Events ??