If you want your nonprofit organization to be successful, you need to keep in the mind the rules of fundraising. The previous blog, Fundraising part 1, left off with the fourth rule: marketing. There are marketing services out there that can be pretty expensive, but don’t let that get you down.  There are other ways to help build awareness to your nonprofit organization while keeping the costs down.

First and foremost, utilize social networking media such as MySpace, Facebook, Twitter, etc. to publicize your event. These sites are free and millions of people use these on a daily basis. Another marketing tip is create a flyer utilizing a word processing software and print about a thousand to hand out to the local area. These do not have to be fancy color printed flyers. You can be as simple as black and white print on a colorful piece of paper. Do not forget to tell people that you are going to be conducting a fundraiser because word of mouth can help your marketing efforts exponentially.

The truth is, fundraising can be as simple or as complicated as you want to make it. Take a typical dinner event, whether it be a spaghetti dinner or a chicken barbeque. Most often you can get food donated or offered at a discounted rate by local area grocery stores and supermarkets. This is especially true when it comes to a spaghetti dinner because most of the food and beverage items it takes to put on this fundraiser are really cheap. Often you can get paper items such as plates, cups, napkins, silverware, etc. donated for the actual event. As for a facility, usually most towns have a local community center, park, or even a church which will let you utilize their facility for free or for a small donation. The biggest thing to know is you will have to conduct some legwork and ask around for these donations for the event. Ask the local store manager or of your supermarket if they are giving donations for charitable events. If they aren’t, thank him or her for their information but do not forget to ask about any discounts they may offer. Remember: anything you can get donated or discounted increases the profits of your fundraiser. Utilize volunteers from the organization to cook items and serve the food.

Honestly, the biggest fundraising tip or rule that I can give you is to ask for donations when conducting your fundraisers. What is the worse that is going to happen to you? They say “no, we can’t afford to do that right now”? What have you lost by asking? I’m going to go out on a limb here and say nothing. However, if they say yes, then you and your event have gained some or maybe even all of the items you need. Many organizations like to give to causes but do not have the financial means; however, they are able to give in-kind donations or items which you can utilize to conduct your event. The long and short of it is that fundraising can be very rewarding for any nonprofit organization. As long as you and the organization you are representing are willing to put some effort into it, you can help grow through fun and effective fundraising!

Many new nonprofit organizations go through the internal battle of whether or not they should participate in fundraising. Fundraising can be a wonderful tool in the arsenal of a newly formed nonprofit organization and even in a nonprofit organization which has already been established. For example, every year around January you hear the ding dong of your doorbell announcing the arrival of the Girl Scouts heralding their annual cookie fundraising drive. Honestly, I know that $3.00 is a lot for a box of Thin Mints, but a portion of the proceeds goes to help the local Girl Scouts in my community so I feel justified in paying a little bit more than I normally would for cookies. Fundraising can be an ideal way to raise funds because people feel as if they are getting “something” (whether it be cookies, a car wash, a snack, t-shirt, etc. It is a sad state of current affairs that most people do not give to legitimate causes because of the good feeling it gives them anymore. Most people expect something in return for their “gift.” Fundraising is just the ticket because both parties feel as if they are benefiting from the arrangement.

There are a few simple rules when it comes to fundraising for an organization. The first rule in fundraising is to BE REALISTIC! Plan an event that fits the current funds which the organization has. In other words, don’t plan a huge annual fundraising gala where there is a sit down meal and attendees have to pay $500 a plate if you do not have the money to rent the facility, pay for the food expenses, pay for entertainment, etc. Work within your means.

The second rule and what I believe to be the most important of fundraising is to HAVE SOMEONE WHO IS COMPLETELY AND UTTERLY DEDICATED TO THE SUCCESS OF THE FUNDRAISER. Does this mean you need to hire a professional fundraiser? Not necessarily. It is entirely possible to put together a fundraiser without professional help; however, you do need to have someone dedicated to the success of the fundraiser, whether this person is a board member or a volunteer of the organization. It’s entirely up to you.

The third rule of fundraising is to SET A GOAL. This will help clarify the purpose of your fundraiser and will assist you in realizing how many items you need to sell to reach your goal.

The fourth rule of fundraising is MARKET, MARKET, MARKET! I cannot stress this rule enough because if no one knows about your event, how are they going to attend? These days marketing costs can sky rocket your expenses, however, there are ways to keep these costs down and help achieve your goal: raising money for your organization.

Keep an eye out for the rest of the rules of fundraising… Part 2 will be posted in a few days!  In the meantime, feel free to share some of your nonprofit fundraising ideas and the steps you follow to ensure they are a success.

People sometimes question the need for a mission statement, but an accurate, effective mission statement is essential to your nonprofit organization. Why? It’s the most widely used nonprofit marketing piece, and it’s your first and most concise tool to win public understanding. 

What’s included in a mission statement?

A mission statement encompasses the following:

• Explains why your organization exists
• Defines what you do
• Sets your priorities
• Motivates your activities

However, the purpose of a mission statement is not to give all your program descriptions, because you want to keep it short. A mission statement serves as a blueprint of your activities, so it should be clear, uncluttered, and not full of adjectives – just stick to the facts.

How should you use your mission statement?

You should include your mission statement on all your publications, in your press releases, and everywhere you say something about your organization. You can even put it on your fax cover sheets. It serves as a brief introduction for those who don’t know you and a reminder for those who do.

How does my mission statement relate to my goals?

Your success as a nonprofit organization can be measured by how effectively you perform to achieve the mission you’ve outlined. Therefore, any projects your organization chooses to undertake should be compatible with the mission statement you have already established. A mission statement serves as a yardstick for deciding what programs your organization can and should undertake. Even if a program is valuable and interesting, if it is not relevant to your organization’s mission, it is likely better suited to another organization.

“When the going gets tough, the tough get going” Will your organization rise to the top or will it buckle under the pressure of an unstable economy?  Most likely, you would prefer the latter, but in order to “get going” it’s imperative that an organization utilize strategies that are both low cost and effective. 

Social networking, press releases, blogging and article writing are all ways to spread your brands image across a variety of mediums without breaking the bank.  If you take the time to learn and then execute each of these marketing strategies, they can provide any organization a maximum return on little investment.

Does your organization “RT” the latest tweets in your industry? If you have an upcoming event, do you update your “wall” with the details? Is your nonprofit “In” the network with other fundraisers, charities and donors? If the previous three questions went completely over your head, it is what you call social media and it has completely re-shaped the realm of marketing. Currently, there are well over 50 different of social networking sites including: Facebook, MySpace, Twitter, Plaxo, Mixx, LinkedIn, Tribe, Ryze, Digg, Reddit, Squidoo, Flickr, Freindster, Bebo, YouTube, Tagged, Xing, and the list goes on and on and on.  The key is to gain a presence on as many sites as you can maintain; meaning regularly capable of adding fresh content, interesting updates and organizational news.  Ideally and realistically, this will be around five to ten sites. If your organization does not already have a presence on at least three of the top social networking sites then now is the time to “get going” on the social media wave.

Press releases are more effective than ever and, if done right, can deliver better pick-up with traditional media outlets, new media outlets and even get directly to consumers. How would you like your annual Gala event to be plastered in front of 200,000 eyes in color, in sound and in action?  Accomplishing this means providing your local media with a newsworthy press release.  Local reporters are constantly on the prowl for the latest happenings in the area that will generate interest from the community.  While you may not be guaranteed a feature package every week, a few sound-bites and video on the evening news would get you free publicity that reaches thousands.  Additionally, to stay competitive in the market today you need to be searchable, believable and credible.  Press releases help you to promote these goals.

An organization’s blog can provide commentary or news on your specific organizations interests, beliefs, positioning on current news.  As a nonprofit it is important to start your blog early because this can be one of the most cost effective ways to reach followers of your organization.  As your organization grows so will your number of followers and those who become faithful will appreciate your information and possibly become a future donor. One of the best characteristics of a blog is that it’s not necessary to be a professional author or a multi-million-dollar company to have a blog.  All you need is opinions, information and insight in your cause.  If you prove to be genuine and knowledgeable your readers will notice and your blog will become one of the most cost effective marketing tools your organization could invest in.  If you have a sincere message, as most nonprofit organizations do, now is the time to “get going” on an organizational blog.

Spreading your organization’s passion to others is what builds the foundation for most nonprofits.   Writing articles for your organization is a great way to disseminate your mission to current and future donors, plus it will build your organizations credibility as an expert source for your cause.  Furthermore, blasting these articles out to websites, directories and news outlets will increase link-backs to your website, making your organization easier to find on the web.  Writing an effective article requires an understanding of professional writing and AP standards along with the capability to merge SEO tactics throughout the body of your article.  To “get going” with writing articles may be a bit trickier than writing for a blog, but with a little practice or help from a professional writer, your organization can be on its way to expert article status.

“When the going gets tough, will your organization get going?” Using the above strategies will give you the tools to get started; it is how you execute them that will determine the results you will receive.  Finally, keep in mind that every method will not deliver results right away, but not giving up and pushing forward through the storm is what will set you apart from other organizations.

More and more organizations are using charity auctions to supplement their fundraising. Charity auctions can be profitable and fun, however to ensure success organizational administrators must undertake careful planning and maintain an eye for details. The amount of time necessary to plan such an event will vary depending on how large scale an auction your organization wants to undertake. For a major event with widespread awareness, a minimum of 6 to 9 months is required.

Before beginning, it must be determined that the organization possesses adequate funding to cover up-front costs associated with the auction. These will include items such as invitations, advertising, food, drinks, decorations, location, entertainment, lighting, gift bags, the auctioneer, and more. Once the budget is set, a fundraising goal should be calculated. The fundraising goal should include the costs associated with the event, as well as the additional amount that is needed to be raised to cover necessary program expenses.

Volunteers will need to be recruited to be responsible for decorations, publicity, coordinating volunteers, the auction itself, cleaning up after the event, and of course procuring items for the auction. Without exciting items on auction, the chances of you reaching your fundraising goal are slim. Event coordinators should try to put together packages and items that are unique-something you can’t find just anywhere. Make sure the items will appeal to the audience you are inviting. Use whatever connections you and your constituents have to bring in quality items for your auction.

One major contributor to a successful charity auction is publicity. Publicize! The more people hear about your charity auction and get excited about it, the better your chances of selling more tickets and reaching your goals. Depending on the budget, you can utilize direct mailing, TV ads, radio ads, newspaper ads, or anything else that will reach your target audience. Reach out to local media to utilize free PSA time.

Keep in mind that to be successful you’ll also need to concentrate on drawing an appropriate crowd. If you expect quality people to attend your auction every year and donate to your organization, you need to make it an event worth attending. It should be referred to as “the party of the season”, or “the event not to be missed!” Stay focused on the guest list. You don’t have to convince your core supporters to attend since they will always be there for you. Rather, you are after the “swing” attendees in the community – the movers and shakers who make the rounds to the best events. These people are going to attend someone’s party; they just haven’t decided whose. All things being equal, they tend to focus on the fundraiser that offers something better than the rest. Create an atmosphere that is impossible to resist, and they’ll arrive ready to spend.

Finally, be prepared to give quality information to your donors about their contribution. Donors who purchase items at a charity auction may claim a charitable contribution deduction for the excess of the purchase price paid for an item over its fair market value. The donor must be able to show, however, that he or she knew that the value of the item was less than the amount paid. For example, a charity may publish a catalog, given to each person who attends an auction, providing a good faith estimate of items that will be available for bidding. Assuming the donor has no reason to doubt the accuracy of the published estimate, if he or she pays more than the published value, the difference between the amount paid and the published value may constitute a charitable contribution deduction.

On a day to day basis I have dealings with a variety of nonprofit organizations, and have discovered one pressing issue that seems to be faced by all organizations, startup and established, big and small-conflicts of interest. Because conflicts of interest can be a serious threat to both an organization′s reputation and their exempt status, administrators must be diligent in avoiding and addressing potential conflicts. The key for nonprofit boards is not to try to avoid all possible conflict-of-interest situations, but to identify and follow a process for handling them effectively. How an organization manages conflicts of interest and assures open and honest deliberation affects all aspects of its operations and is critical to making good decisions, avoiding legal problems and public scandals, and remaining focused on the organization′s mission.

 The nonprofit sector depends on the spirit of volunteerism displayed by board members′personal and professional knowledge, experience, and community engagement. These board members can, however, face challenges in carrying out their board responsibilities because of the number and breadth of associations and connections they have. Therefore, nonprofit board members and executives must not only be able to recognize potential conflicts of interest, but they must determine when these conflicts present areas of concern and what to do about them.

 While most people say they understand conflict of interest, most people cannot articulate a clear and general statement. They may be able to give extreme examples but cannot identify potential conflict in more mundane circumstances. A useful way of looking at conflict of interest is to turn it around and say that directors should avoid any self-serving conduct. If it benefits the director then the action is suspect. Most theorists allow that if the action benefits everyone in the community then it is not self-serving.

 In order to help the board of directors understand and avoid conflicts of interest the board should develop or adopt a written expression of its intentions. Board members should remember that a written code serves as a guideline. It cannot replace careful consideration and an ethical approach. Each member of the Board should be required to acknowledge acceptance of the policy on an annual basis, and the policy should be reviewed at the initiation of all Board meetings. Finally, keep these things in mind to help you assure that your organization does not face potential conflict:

• Full Disclosure to the board – Since when most conflict situations arise only a couple of people in an organization know, full disclosure can establish good faith among boards.
• Distancing Oneself From Potential Conflicts – A Board member should excuse himself from portions of the meeting that may lead to any potential conflict, in addition to abstaining from voting on matters that may pose a conflict.
• Best Interests In the Forefront – Create an arrangement that decides with out ones′ involvement in certain discussions, that the best interests of the organization, not that board member, will be emphasized.
• Compensation – If a board member is compensated in any way by a nonprofit, make sure their pay is either fair market value or less, a common mistake among boards.