How to Start an Endowment for Your Nonprofit

ByScottC.Stevenson
UpdatedJune07,2016
Maybeyouthinkendowmentsarejustforlargenonprofitssuchasuniversitiesandhospitals.
Butanendowmentissomethinganonprofitofanykindandsizecanattain.Itisalsosomething
thatcanensureyourorganizationagainstthefuture.

What Is an Endowment?
Anendowmentisafundthatisrestricted.Onlytheinterestfromthefundcanbespent,notthe
principalthatanchorstheendowment.
Usually,onlyaportionoftheinterestorearningsfromtheendowment(typically5%)isspenton
anannualbasistoassurethattheoriginalfundswillgrowovertime.

Professionalmoneymanagersoftenoverseeendowmentfunds,investingthemoneyinstocks,
bonds,andotherinstruments.

What Are the Advantages to an Endowment?

Stabilityisthemainreasontohaveanendowment.Smallandnewnonprofitsoftenonlythink
aboutthecurrentfiscalyearorthenextpayroll.
Itisimportanttogetoutofthatfinancialtrapassoonaspossible.Anendowmenthelpsdiversify
yourorganization'sincomeandreducesyourdependency.
Thatyouhaveanendowmentcanbeenormouslycomfortingfordonorstoo.Youcanalsooffer
donorstheoptionofprovidingagiftthatwillkeepongivingwellintothefuture,andthe
opportunitytofundtheneedsofthemomentsuchasoperatingandprogramfunding.

What Are the Disadvantages of an Endowment?

Youmightbecriticizedforhavinganendowmentorforhavingtoolargeofanendowment.
Somewellknownuniversitieshavecomeunderattackrecentlyforgrowinghugeendowments
whileclaimingnottohavefundsforotheruses.
Smallnonprofitsaresometimescriticizedfornotspendingeverydimeoncurrentneeds.Even
funderssuchasfoundationsmightslightanorganizationthatalreadyhasmoney.

How to Get Started With an Endowment

First,thinkabouthowmuchyouwanttohaveinyourendowmentultimately.Youmightlookat
theamountofmoneyneededtofundyourorganizationannually.
Youknowthatsomeofthatmoneycomesinthroughyournormalfundraisingeffortsandsome
throughfeesfromyourclients.
Howmuchwouldyouwanttocomefromyourendowment?Oneexpertrecommendsthatyou
haveatleastthreetimesyourannualoperatingbudgetasaminimumendowment.

Youcanstartanendowmentwithanyamountofmoney,howeversmall.Buttobuildan
endowmentofanysizeisalongtermproject.Youwillneedtocultivatedonorsovertimesince
manyendowmentgiftscomeasaresultofabequestuponthedonor'sdeath.
Yourboardwillneedtosetuptherulesoftheendowment.Forinstance,youwillwanttoname
theendowment,restrictitsuse,andprovideguidelinesforhowmuchoftheinterestcanbeused
yearlyandwhentheendowmentprincipalmightbetappedifneededunderextraordinary
circumstances.
Theendowmentcanbesetupwithinyourexistingnonprofitcorporation,oritcanbespunoff
intoaseparateorganization.
Althoughitisnotexpensiveordifficulttostartanendowment,youwillwanttogetsomehelp.
Yourcommunityfoundationmaybeabletohelpyou,includingholdingtheendowmentforyou.
Also,workcloselywithyouraccountantandattorneysothatyourendowmentisincompliance
withyourstate'srequirements.

Raising the Money for Your Endowment

Explaintopotentialdonorswhyyouaresettingupanendowment.Howdoyouplantousethe
endowmentanditsearnings?
Answeranyquestionsinallofyoufundraisingmaterialsfortheendowment,providethemon
yourwebsite,andincludetheminthematerialyousupplytoyourvolunteerswhowillbe
"selling"theendowmenttoprospectivedonors.
Findoutifotherorganizationssimilartoyoursinyourcommunityhaveendowmentsandhow
theyusethem.Thesefactswillbehelpfultoshowthatwhatyouaredoingisnotunusual,much
lessillegal.
Positionyourendowmentbuildingasgoodstewardshipthatwillhelpensurethatyour
organizationwillbeabletocontinuedoinggoodinyourcommunityformanyyearstocome.

Makesurethatyourfundraisingfortheendowmentisinadditiontoyourfundraisingfor
immediateneeds.Fulfillyourneedforoperatingfundsbeforefundinganendowment.
Likewise,makesureyouhavea"rainyday"fundthatcanbetappedquicklyshouldunexpected
problemsariseforyournonprofit.Anendowmentisnotarainydayfund.
Noteverydonorisaprospectforendowmentfundraising.Sincewillsandbequestsareusually
themaincomponentsofendowmentfundraising,itmeansthatyouwillwanttochooseyour
donorscarefullyandcultivatethemoveranextendedperiodoftime.
Endowmentdonorsareinterestedinleavingalegacyandprovidingforthelongtermfutureof
theorganizationstheysupport.
Thebestwaytoensureanongoingeffortfortheendowmentistosetupaplannedgiving
programandmarketitthroughspecialmaterials,seminars,events,andalegacysociety.
Buildapersuasivecaseforyourendowment.Whyshouldyourdonorsmakealongterm
investmentinyourorganization?Howwilltheirgiftchangelives,evensavelivesinperpetuity?
Explainhowyourorganizationwillbeagoodstewardofthedonor'sgifts.Provideoptionsfor
donorstomaketheirdonationsandexplainhowyouwillrecognizedonorsorwhatbenefitsthey
willreceive.

Why Wait?
Justlikeanysavingsprogram,startingearlyworks.Eveninlessthanidealeconomicsituations,
thegroundworkcanbelaidforbuildinganendowment.Itisnotataskorgoalthatwillbe
achievedovernight.Beginnowandyourorganizationwillbeinamuchmorestablefinancial
positionyearsdowntheroad.
Fortipsonhowtosetupyourendowment,makeyourcasetoyourboardanddonors,andhowto
raiseendowmentfunds,seeHowandWhytoPrioritizeEndowmentFundraising.

Nonprofit Organizations

How and Why to Make Endowment Fundraising a

Priority for Your Nonprofit

ByScottC.StevensonStevenson,Inc.
UpdatedJune07,2016

Why Endowments Make Sense for All Nonprofits

Ifyournonprofitislikemost,youreundersomuchpressuretogeneratefundsforcurrent
operationsthatthethoughtofraisingmoneyforyourendowmentisaluxuryleftforanother
dayoryear.
However,whenthenexteconomicdownturncomes,charitiesthatplacedapremiumonraising
endowmentgiftscanrideoutthestorminstyle.Theannualinterestfromanendowmentcan
meanthedifferencebetweensurvivingorclosingthedoors.
It'slikelythatyouandyourboardmembersequateendowmentwithlargeinstitutionslikeIvy
Leaguecollegesanduniversitythathavebillionsstashedaway.

Thetruththoughisthatendowmentfundraisingneednotbejustforthoseelitenonprofits.Any
organizationcanandshouldseriouslyconsiderraisingendowmentfunds.
Forthosenotfamiliarwithendowmentsandhowtheywork,thinkofanendowmentasasavings
accountwhichcanneverbetouched.
Onlytheannualinterestfromthefund,orinsomecasesonlyaportionoftheannualinterest,can
beused.Thatpermanentsavingsaccountcaneasethefinancialburdenduringtoughtimesand
helpanorganizationflourishduringmoreprosperoustimes.
Theresnoreasontoputoffraisingfundstoeitherstartorbuildyourendowment.Butdontgo
afterthenickelanddimestuff.Focusonfive,sixandsevenfiguregiftsandbothoutrightgifts
andplannedgifts.
Ifyourejustgettingstartedbuildinganendowment,makeyourgoal,atleast,threetimesyour
annualoperatingbudget.

How to Get Started

1.Getyourkeystakeholderstounderstandandvalueanendowment.
Sellyourboard.Showthemexamplesofothernonprofitsthathavecreatedsizableendowments.
Explainthepositiveimpactthosefundshaveonpeopleandprograms.Bringinaconsultantwho
canspeaktotheimportanceofendowmentfundsandanalyzewhetheryourorganizationisready
andabletoraiseendowmentmoney.
2.Getyourboardtoapprovepoliciesthatmakeendowmentapriority.
Manyboardsmakepolicydecisionssuchas,allunrestrictedbequestsshallbeearmarkedfor
endowmentoranyannualfundsreceivedthroughoutthecurrentfiscalyearinexcessof$X
mustgototheendowment.
3.Incorporatequantitativegoalsandobjectivesintoyouryearlyfundraisingplans,such
as:

ToidentifynolessthatXXprospectswhoarecapableofestablishingnamedendowment
funds.

TocallonandcultivaterelationshipswithnolessthanXXprospectsforcreatingnamed
endowmentfunds.

Tocoordinateonespecialeventduringthefiscalyearthatcanfeedtheendowment.

4.Establishanendowmentcommittee.
Startinvolvingkeyindividualssuchasboardmembersandfinanciallycapabledonorstohelp
manageandpromotesupportofyourendowment.
Thiscommitteecanidentifyendowmentprospects,cultivaterelationships,assistinsolicitation
callsandmore.Thecommitteecanalsorecognizeandstewardpeoplewhoestablishnamed
endowmentfunds.
5.Developmarketingmaterialsforfacetofacecalls.
Youcancreateinexpensivehandoutstointroduceendowmentgiftopportunitiestodonors.Those
materialsshouldinclude:

whatanendowmentisandhowitworks

amenuofnamedendowmentgiftopportunities,suchasscholarships,endowedchairs,
facilitiesorequipment,andendowedinternships

briefdescriptionsofexistingnamedendowmentfunds

compellingmessagesabouttheimpactofanendowmentonyourorganizationandthose
youserve

acalltoactionandcontactinformation.

6.Educateyourentireconstituencyaboutendowmentanditsvalue.
Takeeveryopportunitytoeducatepeopleonaspectsofanendowment,suchashowitworks,
howitsinvested,andwhattypesofgivingopportunitiesexist.

Regularlysharenewsandfeaturesaboutendowmentthrougheverypossibleavenue,suchas
yourwebsite,inyournewsletter/magazine,whenpublicizingmajorgifts,andwhenspeakingto
variousgroups.
Thegrowthofyournonprofitsendowmentdependsontheamountoftimeandeffortyouand
yourorganizationsstakeholdersputintoit.
Morewaystomarketyourendowmenttodonors.

Nonprofit Organizations

How to Get Donors to Give to Your Endowment

Fund

Does your nonprofit have an endowment committee?

ByScottC.Stevenson
UpdatedAugust14,2016

Why Attention to Growing Endowment Pays Of

Alltoooftenraisingcharitablegiftsforendowmenttakesabackseattosupportforgeneral
operations.Understandably,thepressureisalwaysontofocusonshorttermsolutions.
Butthatsthewrongapproach.Youllalwaysbebehindtheeightballifyouavoidlookingout
forlongtermsolutions.

Andthatswhyitssoimportantthatyoudevoteatleast20percentofyourtimetoraising
endowmentgifts.
Annualinterestfromapermanentendowmentfundislikealifelinefornonprofitorganizations.
Mostexpertsagreethatnonprofitorganizationsshouldworktowardsanendowmentthatsthree
timestheamountofitsyearlyoperationsbudget.
Soifyourgeneraloperationsbudgetis$1million,youneedanendowmentofatleast$3million.
Andwithinterestratessolow,incomefroma$3millionendowmentdoesntgothatfar.
Sowhatareyoudoingtobuildyourendowment?Areyouusingeverypossibleavenue?
Beginbylistingeverythingyouaredoingtomarketendowmentgifts,andthenaddnew
strategiestoit.

Use these 25 Suggestions to Start Growing Your Endowment Today

1. Createanendowmentcommitteewho,inadditiontootherresponsibilities,ischarged
withidentifying,cultivatingandsolicitingendowmentgifts.
2. Holdaspecialannualevent,theproceedsfromwhichyoudedicatetoyourendowment.
1. Askalldonorswhogive$1,000ormoreeachyeartomakeanendowedgiftlarge
enoughtoensuretheirannualsupportcontinueslongaftertheirlifetimes.
2. Includeregularfeaturearticlesinyournewsletterormagazineontopicsrelatedto
variousaspectsofendowmentsuchasaprofileofanendowmentdonor,oranarticle
illustratingtheimpactofanamedendowmentfund.
1. Getanindividualorafoundationtoestablishachallengegiftaimedatmatching
thosewhogivetoendowmentoveraspecifiedperiod.
2. Publicizeallnamedendowmentgiftstoplanttheideaofmakingasimilargiftinthe
mindsofothers.

3. UsePeertoPeermethodsbyaskingboardmembers,membersofyourendowment
investmentcommitteeandotherstohelpidentifyandaccompanyyouonintroductory
callstonewprospects.
4. Developalistofendowmentfundopportunitiestosharewithlikelydonors,suchas
capitalprojects,programmingneeds,andstaffpositions.
5. EstablishsocialproofbyInvitingeachofyourboardmemberstoestablishanamed
endowmentfund.
6. Designasimplehandoutthatdescribesendowmentgiftopportunitiesandincludesalist
ofexistingnamedendowmentfunds.
7. Establishagivingcircle,oneofthegoalsofwhichistocreateandaddtoanamed
endowmentfund.
8. Launchendowmentcampaignstohonorlongtimeandrespectedemployeesofyour
charitywhoretire.
9. MakeaboardapprovedpolicyregardingplannedgiftssuchasAllunrestricted
bequestsmorethan$10,000willbedirectedtotheendowment.
1. Devotespaceonyourwebsitetoendowmenttopics,suchasQ&As,endowmentstats,a
listanddescriptionofexistingnamedfunds.
2. Useyourspecialevents.Mentionendowmentgiftsandtheirpotentialimpactduring
allpublicfunctions.
3. Bringinanexpert.Getsomeonefromanothercharitywithasizeableendowmentto
speaktoyourboardabouttheimpactoftheirendowmentonpeopleandprograms.
4. Upgradecurrentdonors.Gotodonorswithexistingnamedendowmentfundsand
invitethemtoaddtotheirfundswithbothoutrightandplannedgifts.

5. Approachtargetedgroupstoestablishnamedendowmentfundssuchasalumniclasses,
civicorganizations,businessassociates,affinitygroupsandothers.
6. Earmarkfunds.Makeaboardapprovedcommitmentthatacertainpercentageofevery
dollarraisedwillbegiventoyourorganizationsendowment.
7. Launchinganassetbuildingcampaignthatfocusesonendowmentratherthan
capitalprojects.
8. Setupaplanforcontinuededucation.Educateallplannedgiftprospectsabout
endowmentgivingthroughpersonalvisits,inyourplannedgiftsnewsletter.Invitedthem
tomakeaplannedgifttoyourendowment.
9. Hostaonceayeareventthatrecognizesallendowmentdonorsandinvitesother
attendeestojoininsupportingyourendowment.
10. Approachmajordonors(andtheirheirs)whosenamesareattachedtoanyofyour
campusbuildings.Invitethemtoendowthebuilding'sfuturemaintenanceand
enhancements.
11. Setyearlyquantifiableobjectivessuchas"tomakexfacetofacecallsonendowment
prospectsthroughouttheyear"or"tosolicitxprospectsfornamedendowmentgifts
annually."
12. Identifyfoundationsthatcontributetoendowmentfundsandsubmitlettersof
inquirytothem.
Ahealthyendowmenthelpsyourorganizationsurviveduringleantimesandthriveduringmore
prosperoustimes.Focusatleast20percentofyourtimeonraisingfundsforanendowmentthat
willguaranteeyourcharityslongtermfuture.

Nonprofit Organizations

Where Do Nonprofits Get Their Revenue?

MultipleStreamsofIncomeMeansMoreStability

ByJoanneFritz
UpdatedDecember04,2015
Newwaysfornonprofitstoraiserevenuespringintoexistenceeveryyear,butwherethosefunds
comefromstaysprettymuchthesameyearafteryear.Thereisalsoafundamentalinventoryof
methodsthatshouldformthebackboneofyourfundraisingefforts.Theseare,literally,your
"breadandbutter."

Nonprofits fund their programs with a basket of income streams, such as:

SelfGeneratedFeesforServices.
Eventhoughthefirstthingthatcomestomindwhenwethinkofnonprofitsisthe
donationsthatmostofusgivetoourfavoritecharities,thebulkoftheincomeforthe
charitablesectorcomesfromfeesforservicesrenderedandthesaleofproducts.
Justthinkofauniversity,forinstance,thatgeneratesincomefromtuitionorapublic
hospitalthatchargespatients(ortheirinsurancecompanies)fortheservicesgiven.Such
nonprofitsmightalsoreceiveincomefromgovernmentcontractsandfees,andlegislated
supportfromtaxpayers.

Apublicuniversity,forexample,isingreatpartsupportedbythetaxpayersinthat
particularstate.Thatuniversityalsosellsproductsthroughitsbookstoreandticketsto
artisticandathleticvenues,whilethehospitalmaintainsagiftshopandlikelyprovides
communityservicesforwhichitcharges.
AccordingtotheNationalCenterforCharitableStatistics,suchincomesourcesprovided
closetothreequartersoftherevenueinthenonprofitsectorin2010.

CharitableContributions.
Althoughthetotalincomefornonprofitscomesfromanassortmentofsources,ofwhich
contributionsarebutapart,individualsarethelargestsourceofcharitabledonationsfor
nonprofitorganizations.
AccordingtoGivingUSA,totalcharitablegivingintheU.S.reachedmorethan$298.4
billionin2011.Ofthatamount,73%camefromindividuals.Therestofthephilanthropic
pieismadeupofgovernmentandfoundationsgrants,bequests,andcorporate
philanthropy.

CorporatePhilanthropy.Corporatephilanthropyhascometobeanintegralpartofthe
identityofmostlargecorporationsandmanysmallerbusinessesaswell.CSR(corporate
socialresponsibility)hasbecomemoreimportantasconsumershavebecomemorelikely
tobuyfromsociallyresponsiblecompanies.

Corporatefundingcanbealongtermcommitmenttocertaincausesandthecharities
connectedtothem,orcorporatefundingcanbemoreepisodicandmarketdriven,
revolvingaroundparticularcampaigns,events,andprojects.
Corporatefundingcanbeagoodsourceofsupportfornewinitiatives,specialprograms,
andspecialevents.Nonprofitsincreasinglylookforopportunitiestoformpartnerships
forsponsorshipsandcauserelatedmarketing.

Companiesalsooftenhelptheiremployeesgivetocharitiesandevenmatchthose
contributions.Employeevolunteerprogramsarepopular,andthereareevengrantstiedto
employeevolunteerhours.

Federal,StateandLocalGovernments.Manynonprofitinstitutionsbenefitfromall
levelsofgovernment.Obviousexamplesarepubliceducation,highereducation,andthe
publicmedia.Federal,stateandlocalgovernmentgrantsfundmanyprogramsprovided
bynonprofits,especiallyinareassuchasurbanhumanservicenonprofits,and
healthcare.Grants.govprovidesuptodateinformationandadirectoryoffederalgrants.

FederatedFundssuchasUnitedWays,UnitedArts,andcommunityfundscanbesteady
sourcesofrelativelylargeamountsofmoney.Federatedfundshavetraditionallythrived
becausetheywerethestaplesofemployeegivingatcompanies.Today,theyhave
becomelesspopularasnewwaysofemployeegivinghavebeenestablishedandas
youngerdonorsseektobemoreinvolvedwiththecharitiestheygiveto.

GrantmakingPublicCharities.Theseorganizationsareacrossbetweenaprivate
foundationandacharity.Theytypicallyreceivefundingfromthegeneralpublic,
governmentandprivatefoundations.Theymaydopublicservice,butprimarilyraise
fundsandprovidegrantstocharitablenonprofitsthatprovidedirectservice.
Youcanfindmanysuchgrantmakingpubliccharitiesinyourlocalarea.Someare
associatedwithanoverarchingnationalorganization(theJuniorLeagueisonesuch
example).GrantmakingpubliccharitiesfileIRSForm990soinformationaboutthemcan
befoundinmanydatabases,suchasattheFoundationCenterandGuideStar.

Foundationscomeinvarioussizesandtypes,buttheirgrantscanbeimportantand
substantial.Themostcommontypesoffoundationsare::

CorporateFoundationsareprivatefoundations,buttheirboardsareoftenmadeupof
corporateofficers.Theirendowmentfundsareseparatefromthecorporation,andthey
havetheirownprofessionalstaff.

FamilyFoundationsreceiveendowmentsfromindividualsorfamilies.Manylarge,
iconicfoundationsarefamilyfoundations.ThinkoftheGatesFoundation,
theRockefellerFoundation,andtheFordFoundation.Thesefamilyfoundationshave
endowmentsinthebillions,butmostfamilyfoundationsaremuchsmaller,tendtofund
locally,andoftenhavelittletonoprofessionalstaff.
CommunityFoundationsarepublicfoundationsandpooltheassetsofmanydonors.
Theyworktoimprovetheirlocalcommunitiesthroughgrantmaking,awarding
scholarships,andprovidingservicestodonors.
CommunityFoundationshavebecomeveryactiveinprovidingdonoradvisedfundsfor
donorswhowanttobecomemorepurposefulintheirgivingbutdon'twanttosetuptheir
ownprivatefoundations.Communityfoundationstodayoftenorganizegivingdaysto
helplocalnonprofitsraisefunds.

Ongoing vs. Episodic Funding

Besidesseekingsupportfromavarietyofsources,yourfundraisingprogramshouldfindboth
ongoingfinancialsupportandepisodicsupport.
Ongoingsupportisusuallygainedthrough:

TheAnnualFund.Anannualfundmeansjustthat,annual(ormorefrequent)appealsto
acoregroupofconstituents.Suchfundsareusuallyunrestricted(availableforanyuse)
andmayrepresentasignificantpercentageofyourannualincome.

SalesofProductsandServices.Somenonprofitsownstoresorprovideservicesthatcan
representasubstantialincomestream.
TheGirlScoutsisoneobviousexamplewithitsannualsaleofGirlScoutcookies,and
GoodwillIndustriesisprobablythelargestnonprofitretailer.Asymphonyortheater
earnsincomethroughthesaleoftickets.Earnedincomemustberelatedtothemissionof
theorganization,oritcanbetaxedasunrelatedbusinessincome.

MultiYearGrants.Agrantgivingorganizationsuchasafoundationmay
providerestrictedfundingforaparticularprojectorprogramorunrestrictedfundingto
helpcovertheoverheadcostsofrunningtheorganization.

EndowmentIncome.Manylargenonprofits,particularlyhighereducationinstitutions
andhealthcareorganizationsbuilduplargeendowmentfundsthatproduceinterestthatis
usedtosupporttheirprograms.

Episodicfundingcancomefromfoundationorcorporategrants,specialevents,orabequest.
Thesefundsmayberestrictedtoonepurposeordevotedtounrestrictedusebythenonprofit.

Two Special Types of Fundraising

TheCapitalCampaign
Acapitalcampaignisatimelimitedeffortbyanonprofitorganizationtoraisesignificantdollars
foraparticularproject,suchas:

Fundinganewbuilding.

Raisingfundsforaspecificproject,suchascancerresearch.

Increasingaparticularassetsuchasanendowment.

Capitalcampaignshaveabeginningandanendbutoftenspanseveralyears.Acapitalcampaign
employsalltheusualmeansofraisingfundssuchasdirectmailanddirectsolicitation.Capital
campaignsrequireextraordinarypreparationandskillfulexecution.

PlannedGiving.
Mostnonprofitsnowhaveplannedgivingprogramsthathelpdonorstoincludetheirfavorite
causeintheirwillsorestateplanning.Thecharitablegiftannuityhasbecomequitepopular

amongmanydonorsasitallowsmanytaxadvantageswhileprovidingincomeduringthedonor's
lifetime.
Agoodfundraisingplanwillincludeabalanceofthesetechniquesandsources.Establishing
unrestricted,ongoingfundingisthemostimportant,followedbyotherfundingthatwillgrowthe
organizationandensureitsfuture.

Nonprofit Organizations

How to Create a Fundraising Plan for a New

Nonprofit
ByJoanneFritz
UpdatedAugust11,2016
Withthemassoffundraisingadvice,sources,strategiesandtools,anewnonprofit,justgetting
startedwithitsfundraising,canbemorethanconfused.Herearesixsimplestepstogetyou
startedonasuccessfulfundraisingplan.

1
Develop your fundraising goals.

Youshouldhavegoalsfortheamountofmoneyyouneedtoraise,pluswhatthemoneywillbe
usedfor.

Willyouuseitforoverheadexpenses?Tofundanongoingornewprogram?Tobuildanew
facility?Todevelopanemergencyfundforafuturerainyday?Tocloseadeficit?
Youwilllikelyhaveanumberofgoals.Ifso,developafundraisingplanforeachone.Goals
shouldbedevelopedwithyourboardofdirectors,andhavetheboard'ssignoff.
Gettingyourboardinvolvedwillalsosetthestagefortheiractivehelpwithfundraising.

2
Write down your fundraising plan.

Itisimportantnotjusttoflyfromonefundraisingschemetothenext.Developawrittenplan
thatstateshowmuchyouneedtoraise,fromwhatsources,andhowyouwilldoit.

Don'tworry,youcanrevisetheplanasyougoalong.Notallofyourideaswillworkout,oryou
mayfindnewsourcesalongtheway.
Startwithyourcurrentprogramsandfunding.Isthatamountofmoneycoveredoristhereagap?
Doyouwanttodomorebutlackthefunds?
Thispreliminaryfinancialaccountingwillhelpyouarriveatwhatyourmonetarygoalshouldbe
foryourfundraising.

3
Estimate how much your fundraising program will cost.

Includecostssuchaspostage,creatingyourwebsite,runningspecialevents,thecostofstaff
dedicatedtofundraising,andthepersonnelcostsofmanagingthevolunteerswhowillhelpyou
raisefunds.

Berealisticwhenestimatingcosts,butplantousecostefficientmethodssothatcostsdon'teat
upallyourfundraisingproceeds.
Mostexpertsrecommendthatfundraisingandoveralladministrativecostsnotexceed25percent
ofyouroveralloperatingbudget.
Inotherwords,threequartersofyourexpensesshouldbespentondoingwhatyouwerefounded
todo.

4
Develop a timeline for your fundraising plan.

Fillinayear'scalendarwithspecificactivities,andidentifywhowillbetheleadforeachof
thoseprojects.

Gofurtherbydevelopingtimelinesforeachfundraisingactivity,suchastheannualfundraising
campaign,theGivingDayyou'vechosen,orthespecialevent.
Thetimelinewillsurelychangeduringtheyear,buthavingonetostartwithwillensurethatyou
getsomethingaccomplished.

5
Identify funding sources.

Cancurrentsourcesbeleveragedtoproducemoreincome?
Arethereaudiencesyouarenottapping?Haveyouconsideredgovernmentorfoundationgrants?
Civicgroups,churchesoruniversities?
Howaboutemployeematchinggiftsorsourcesofearnedincome?Areyoumakingthemostof
youronlinefundraising?Doyouhaveamonthlygivingprogram?

6
Evaluate your fundraising plan during the year.

Evaluationwillimproveyourresults.Plantoevaluatewhatyouaredoingeveryfewmonths.
Developwhatcriteriayouwilluse,suchasamountofmoneyraised,thenumberofnewdonors,
howmanycontactsyou'vemadewithfoundations,andimprovementindonorcultivation
activities.
Whataccountedforthebiggestsuccesses?Whatwerethebiggestchallenges?Whatshouldyou
change,drop,oradd?
Onceyourorganizationgetsthehangofraisingfundsforayear'soperation,you'llwanttomove
ontomultiyearplans,highergoals,moresophisticatedstrategies,andnewertechniques.