Dear “Weathering Disaster” Colleague,

During this season of high winds and stormy seas, we wanted to reinforce your solicitation efforts and share some knowledge about “donor fatigue” and its mythological impact on overall charitable support. You will also find a listing of foundations who support hurricane relief, as well as a blurb on the value of nonprofits’ 990 Forms and a refresher on internet disaster fundraising.

Refer to the content section on the right to click on resource development topics. Use the hyperlinks within blurbs for more detail. For past editions, use the right side and click Read Back Issues of OTG e-TA. Tell us what you think of OTG e-TA and link to LEADline.

We encourage you to send this and other issues of OTG e-TA to friends and colleagues who would benefit from the information. Also, if you’re on information overload, you may request email removal. Otherwise OTG e-TA will be back in two weeks with another edition. Both, the sponsor, CNCS (Corporation for National and Community Service) and its provider, Campaign Consultation, wish you ongoing success in raising resources.

“Donor Fatigue” is a Myth

At the end of 2005, an unprecedented $2.96 billion was raised in response to Hurricanes Katrina and Rita relief and rebuilding.
That fall, there was concern that huge sums of money given to disaster relief efforts would negatively impact charities and their abilities to raise needed resources for ongoing community needs. There was speculation that donor fatigue would set in at the most crucial time of year when charities collect 30 – 50% of their annual budgets.
However, by early spring 2006, “donor fatigue” proved unfounded, as positive reports of American generosity to charities were received.
(Click here to learn how disasters impact nonprofit fundraising.)

Internet for Disaster Relief Funds

Sometimes an emergency situation presents itself where a large number of gifts are needed in a short period of time. Internet fundraising is particularly effective for disaster relief initiatives. The Pew Foundation’s Internet & American Life Project states that 26 million people have made online donations. Half of those donors contributed over the Internet to help victims of the Gulf Coast hurricanes.

Since online giving is rapidly becoming the giving method of choice, double-check to ensure that your program has …

• A web site that effectively markets your mission
  
• A web page that accepts donor credit card information
  
• A web page to accept pledges from those donors who do not want to provide credit card information
  
• A process for manually recording credit card information or a service that processes credit card information automatically
  
• A merchant services account with a bank or third-party provider
  
• A business checking account at a bank

Online fundraising represents on average, only 1.2 % of total funds raised annually. However, its speed of contact and transaction, relatively low cost, and increasingly broad appeal should be factored into your overall annual fund development plan.

The Value of the IRS Form 990

Sophisticated donors are turning to the IRS for information about charities they will support. The IRS Form 990 is required of all 501(c) organizations with annual income of $25,000 or more and includes private foundations as well as charities. Nonprofits must make these documents available to anyone who wants to view them.
Most IRS Form 990s can be viewed easily on the internet by visiting www.guidestar.org. Last year, 5 million people visited GuideStar to view nonprofit information. More than just a government form, you can make your IRS Form 990 into a resource tool and build donor confidence in your organization.
(Click here for a list of ideas to gain an edge when it comes to showcasing your IRS Form 990 for donors.)

IN THIS ISSUE:
click on titles below to read full articles

Details from above:

“Donor Fatigue” is a Myth (cont.)

In fact, Giving USA 2006 states that 59% of organizations report an increase in charitable receipts this past year together with the lowest percentage of charities reporting a drop in giving ever reported. Human services charities received an astounding 15 percent increase in charitable receipts before adding donations for disaster relief.

Despite public response to sporadic disasters, your solicitation efforts for ongoing community crisis will continue to succeed.

The visibility of relief efforts is believed to actually heighten the awareness of giving possibilities for individuals, corporations and foundations as shown …

• Nine out of ten individuals who made hurricane relief donations also gave to their customary charities
  
• Corporations, spurred by giving for relief efforts, increased donations by an astounding 22.5%.
  
• Foundations, especially community foundations not located in the disaster communities, established special funds dedicated to Hurricane Katrina-related projects.

(Click here to download a list of foundations that have established special Hurricane Katrina funds.)

Your IRS 990 (cont.)

• Post a link to your IRS 990 form on your website. It shows you are transparent about your information.
  
• Double check your math, especially if you are an educational organization. You may round numbers to the nearest dollar. A study of 990s showed that 67% had math errors!
  
• Maximize your Statement of Functional Expenses (Part II.) If the executive director or other management staff spend time developing and overseeing programs, this should be allocated to program service expense and not management and general expense.
  
• Showcase your mission and success in your Statement of Program Service Accomplishments (Part III.) You do not need limit yourself to the small space provided on the form. You can include an attachment. Direct reader to SEE STATEMENT 1.
  
• Ask other employees to read over your form, especially those who are gifted wordsmiths. They may offer advice to phrase parts of your form more attractively.
  
• List all of your board and their compensation if any. You should use professional titles and office address, not home addresses.

Glossary

Donor Fatigue, (n.):

1. A misperception that donors have given all they have to support disaster relief and recovery programs.
   
2. The myth that purports donors no longer contribute to a cause because they have become weary of receiving donation appeals.

Additional Resources

National ASK to Sustain Institute, sponsored by Corporation for National and Community Service, provided by Campaign Consultation, Inc. 1998, 2002

Resources Now! National Institute, sponsored by Corporation for National and Community Service, provided by Campaign Consultation, Inc. 2006.

Giving USA 2006, Giving USA Foundation™, American Association of Fund Raising Council

The Chronicle of Philanthropy

www.guidestar.org

www.idealist.org

www.nsfre.org/research

Tell Us!

Let us know how major disasters have affected you

We can provide help locating funders for post-Katrina rebuilding.

Let us know by contacting us through LEADline@CampaignConsultation.com

Other Campaign Consultation offerings include:

• Resources Now! National Institute: A three-day ocused sequence of training and coaching opportunities offered for a total of 240 participants.
  
• Online Courses: Web course delivery of topics pertinent to resource development.
  
• Learning Templates: Interactive tools and skill practice guides to aid you in resource development.

Read Back Issues of OTG e-TA

• June 2006 Individual Donors
  
• Mid-June 2006 Plan Your Fundraising Year
  
• July 2006 Ask Major Donors