New Beginnings
Creating and Establishing an Adult Literacy Program

Fund Development

Connie P. Munn

Fundraising is not easy, but with careful planning and attention to detail, your organization can raise the money needed to fulfill the very important work in adult literacy that you have planned for your community. The information included here is designed for small or start-up organizations, but the principles are basic to all nonprofits. This chapter will help you to develop and implement a basic plan for raising operating funds. In addition to having a well-developed plan, you will have to set aside any fears or trepidations you may have about asking for money. You are not asking for money for yourself and you are not "begging." You are giving people an opportunity to make an investment in a program that will enrich the lives of others. Through making a gift toward adult literacy your donors will help to make a measurable difference in the lives of your clients, their families, and your community.

Understanding philanthropy and why people give is the first step. Giving money or time to help a good cause is a traditionally American ideal. In the year 2000, more than $2 billion was given in private philanthropy in the United States. These contributions came from foundations, corporations, bequests, and individuals. More than 75% of this money came from individuals. Remember this percentage as you begin your fundraising efforts.

By understanding why people give, you can develop your approach to raising the funds necessary to meet your program's goals. Some of the main reasons people make a charitable gift are:

• Belief in your organization and its mission
• Regard for staff and volunteer leadership
• Respect for the person who asks
• Wish to do something for someone else
• They have resources
• SOMEONE ASKED!

When surveyed, people gave the following reasons for not making a charitable gift:

• NOT ASKED!
• Absence of a good case for support
• Did not know enough about the organization

So, understanding a little about philanthropy and the basic rule that to get money, we have to ask for a donation. The next step in raising money is laying the groundwork to developing your plan.

Getting Ready to Raise Money

Whether your group is a start-up or well-established nonprofit, some general questions must be answered.

1. What are you trying to do? To answer this question, describe the programs and services you plan to offer. Talk about your mission - the main reason your program exists. Describe the potential clients and how their lives will be changed through literacy training. Use statistics about literacy in your community.

2. What do you want to accomplish? What will be the objectives for your clients? Will they be able to read stories to their children, get a better job, gain self-esteem and to broaden their horizons?

3. How are you going to do it? Will you hire staff or use volunteers? Will clients meet once a week or more often? Is this a one-on-one relationship between client and tutor or a classroom setting?

4. When do you want to do it? Develop a simple timeline that describes when your services are available and, correspondingly, when you will need the donated funds. Donors respond well to a specific request such as, "The Coastal Area Literacy Council must raise $1,500 by August 1^st to purchase workbooks and client materials for the September session." Funds for ongoing monthly expenses will be needed consistently but funds for special projects will be needed at the time the project expenses will begin.

5. Who else is likely to be involved, and how? Are other organizations involved? Is this project a partnership with the local school system, a program under the umbrella of a large human services agency, or a separate nonprofit? If this is a partnership, describe what each organization brings to the table. For example, a church may lend classrooms for tutoring and meetings, or a civic group may schedule volunteer tutors from their membership.

6. What kind of resources do you need? Will you need to rent office and meeting rooms or to use borrowed space? How many staff members or volunteers will be needed? Donors, especially foundations and corporations, are pretty savvy about what it takes to run a program. Along with the value of your adult literacy program, your ability to plan for and describe your resource needs helps the prospective donor to know that yours is a viable project and worthy of funding.

7. How much will it cost? A budget outlining expenses in the necessary categories should also include a projected plan for income. For example, "$2,000 will be raised through grants from foundations and $1,500 will be raised through a membership campaign." If clients will be charged a fee remember to include that in the income section. Since you will have carefully developed a budget for all your anticipated expenses for the year, you will know the amount needed to operate your organization.

The answers to these questions will probably already exist in your mission statement, budget, goals, and objectives. If you are just getting started with your program and do not have a formalized organizational plan, these questions will be the foundation of that plan. At this point you may be saying that you just want to help people and don't want to form a bureaucracy. For your program to be successful and to last longer than your current group of donors, you will need to have a plan that answers the above questions and provides enough information to catch the interest of prospective donors.

Your Fundraising Plan

This section will discuss three basic ways to raise money for your organization's programs. The methods described will be used to raise operating funds to pay for things necessary to make your organization run smoothly. Every nonprofit organization needs a fundraising plan with goals for the amount of money to be raised and the date the money is needed. Ranging from a simple "to-do" list to a multiple page strategic plan for fundraising, this will be your guide to success. Whether long or short, your plan will address how you plan to raise the money needed to support your budget for the year. There are a number of strategies to raise money. We will discuss three basic ways.

1. Proposals. Written to foundations, corporations, or civic groups, proposals are requests for funding in a letter format. Typically one or two pages long, a proposal briefly describes your program and asks for a donation. Use the seven questions in the paragraph "Getting Ready to Raise Money" as your guide. One hint, most foundations and many corporations will only make a grant of funds to organizations that have 501(c)(3) status with the IRS. If you are not organized as a 501(c)(3), an organization that does have that designation could act as a fiscal agent to apply for and administrate the grant for you.

Do your homework before sending a proposal. You will need to know the interests of the prospective donor and a little about the projects they have funded in the past. For example, if a foundation says they are interested in making grants to youth camps and youth development programs that is not a good match for an adult literacy group. You can research potential donors by consulting with other nonprofit organizations, consulting a directory of foundations, or by calling the foundation or the corporate donation office.

Points to remember:

• Grants funding is often project related.
• Research is required.
• Guidelines vary by funding source.
• Grants can take 3-6 months from application to receipt of check.

2. Appeals to individuals. As we discussed earlier, more than 75% of the private philanthropy in the United States comes from individuals. To build an individual giving campaign you have to build a list of prospective donors. Start by listing your board and volunteers. The people most closely involved in your organization should be the first to give a financial donation. Then, you can ask others to join you in the effort to raise funds to support the program.

On your list, put everybody you can think of who will benefit from adult literacy. This includes business owners (prospective employers), educators, parents, staff from human service agencies, basically everyone benefits in a community where adult literacy rates are increasing. Whether you are going to send letters, or ask in person (the most successful way), prepare a simple brochure or printed piece that describes your program and a reply card so that the donor can list their name, address, and phone number. You will need this information to mail their thank you letter and to add to your donor list for the next fundraising campaign. You may want to give the people an option of making a gift in honor or in memory of someone. This would be a great way to honor a special teacher!

Points to remember:

• Good way to raise operating funds
• Broad participation by many donors
• You can use the method you are comfortable with - personal calls, letters, events

3. Special Events/Friend Raisers. Special events are very time consuming for the planners and often too much work to justify a small amount of money that is raised. However, for a start-up organization, a public event can be a good public relations tool. A well-publicized event can raise awareness for your organization, bringing in donors, volunteers, and clients. Something that has become popular is a non-event. You would plan an "event" that will not occur and people pay for the privileged of not coming. For example you could have a "No K Race." No one has to show up, no one runs, no volunteers have to set up a race. You could print tee shirts and even have a hot dog party where you auction the first, second, and third place ribbons. You raise money with sponsors and "entrance fees." Your theme - "Literacy Wins at the No K Race!"

Points to remember:

• Fundraising effort associated with an event - lunch, dinner, party, gala
• Time intensive, long planning period
• Underwriting and sponsorships support costs
• Good way to build a donor base or to include current donors in a celebration
• Public relations effort to raise community awareness

Donor Appreciation and Stewardship

Stewardship is one of the most important functions of the development process. The responsibility of both staff and board, good stewardship ensures that donor funds are spent wisely and for the purpose the donor intended.

1. Keep good records on donations, grants, and all money raised. This can be accomplished with a simple spreadsheet that lists the donor's name and address, date and amount of gift, notation of the thank you note, and purpose of the gift (if the donor gave one or if the gift was a response to a specific request).

2. Donors make an investment in your organization with their gift, thank them as soon as possible and tell them how their gift will make a difference.

3. Keep donors and prospects informed about your organization. A simple newsletter or update in a letter helps donors to remain interested and committed to your mission.

4. Send progress reports in a timely manner. Grants from a foundation usually require a report to be submitted within a certain timeframe. Mark your calendar so that reports are sent on time. Even if a donor does not require a formal report, send an update six to nine months after receiving the gift and at the end of the project.

5. Ask your donors for another gift or invite them to an event. Remember, they have already invested in your organization and are a part of your success.

Planning for the Future

Many adult literacy programs begin as a project of another organization. As these programs grow, funding constraints can occur and the host organization may not have the same priorities for your programs as you do. Becoming a separate nonprofit organization may be the best option. The best way to face this situation is through planning for the possibility from the beginning. Consider the following points:

1. Have a mission statement and clear objectives for your program that is separate from the host organization.

2. Maintain strong communication with your host organization so that they will know the importance of your program and the value of their sponsorship. They are probably your biggest donor, recognize them whenever possible.

3. Keep your donors and volunteers informed and committed to your goals.

4. Record keeping is vital - you should know the name of every person who gave a gift, donated supplies, expressed an interest, or was a client. These are the people who will help you if you decide to become a private nonprofit.

5. Have a strategic plan for the next 3-5 years. If growth is planned and expected, change is easier.

6. Remain friends with your host organization. They may be able to provide in-kind contributions (non-cash items) such as meeting or office space or advertising.

Resources

Many communities have resource centers for nonprofits, funding information libraries or management assistance for nonprofits through the United Way. Contact your local United Way to find out about support services for nonprofits in your area. You can also check with the Foundation Center, www.fdncenter.org, or Alliance for Nonprofits, www.allianceonline.org, to find management assistance near you. The following print resources may also be helpful.

Grassroots Fundraising Journal and Raise more money: The best of the grassroots fundraising journal are available from Chardon Press, which can be reached online at www.chardonpress.com.

Klein, K. (2000). Fundraising for the long haul. Oakland, CA: Chardon Press.

Greenfield, J. M. (2002). Fundraising fundamentals, New York: John Wiley & Sons.

Table of Contents | Next