November/December 1985 RAIN Page 23 The Fundamentals of Fundraising for Social Change In 1983, over 60 billion dollars was given to charities by private (non-govemmental) sources. Although most of that money went to non-controversial charities such as religions, hospitals, and large arts organziations, Kim Klein's new book. Fundraising for Social Change, seeks to help smaller change-oriented nonprofit organizations gain a larger share of available dollars. Her book is in the tradition o/The Grassroots Fundraising Bookby Joan Flanagan. Klein is copublisher of the bimonthly Grassroots Fundraising Journal. How can your organization get some part of these billions of annual charity dollars? Klein advises that you look to people before foundations and corporations. When the total ofprivate dollars given is broken down, we find that 84 percent comes from ir^ividuals, six percent comes from bequests, five percent comes from foundations, and another five percent comes from corporations. Many fundseekers mistakenly believe that foundations and corporations are major targets for appeals. These sources are usually interested in start-up costs, special projects, and capital campaigns—the more visible and publi- cizable parts ofan organization—than ongoing operating costs. Individual donors should be relied upon for 90 percent of operating budgets, according to Klein. She suggests that corporations are best used as sources of in-kind donations of products or services. Klein believes that one reason that religious organizations receive the bulk of charitable donations in this country is simply because they ask for it more often and in a variety of ways. Social-change organizations need to learn to ask for money like that, and Klein's book covers most of the ways that have proven successful. The book includes examples ofsuccessful plans, mail appeal formats, and briefpieces on handling a financial crisis and hiring a financial consultant. As Klein notes, even the best designed fundraising plan won't work without the combined effort ofeveryone in the organization: staff, board members, and volunteers. She suggests adopting the following motto in your organization: "Today, someone has to ask someone for money." The excerpt below begins to answer your next logical question: "How?" —RC Excerpted by permission from Fundraising for Social Change, by Kim Klein, 1985, 208 pp., $19.95 from: CRG Press, 1000 16th Street, NW, Washington, DC, 20036. by Kim Klein Fundraising is an acquired taste. Probably no one says at the age of 12, “When I grow up, I want to be a fundraiser.” Most people are drawn to the profession by a cause, an idea, an issue, or an organization in need of the money. They decide to help with fundraising even though it was not their first choice and even though they may have found the idea slightly distateful or a little frightening. Many of these people find that they begin to tolerate, then like it. But because few people have actually trained to become fundraisers, most have misconceptions about it. These misconceptions usually stem from not understanding the basic principles of effective fundraising. There are three general principles of effective fundraising: People give money to charity because it serves their self interest. Diversity of funding sources is the secret of financial stability. Anyone can learn to do fundraising. Appealing to Self-Interest There are more than 370,000 registered nonprofit organizaHons in America. In addition, some experts estimate that up to eight million more organizations operate as nonprofit but have not sought tax-exempt status. New organizations come into existence every
RkJQdWJsaXNoZXIy NTc4NTAz