3. Reading

Reading 16.1.

Read the text “Public Relations input into fund-raising for Nonprofit Organizations” and do the exercises that follow:

Public Relations input into fund-raising for Nonprofit Organizations

A major broad area of public relations work includes nonprofit institutions. The goal of these institutions is not to make a commercial profit but to improve the human condition in many ways. Much as they differ in purpose, nonprofit organizations have common problems and needs. They are tax-exempt, yet such organizations as a whole face an unending task of raising money to pay their expenses and finance their projects.

The role of public relations in promoting the work of these organizations and aiding them financially is essential. Public relations representatives may participate directly in fund-raising by organizing and conducting solicitation programs, or they may serve as consultants to specialized development departments of their organizations. Organizations often employ professional firms to conduct their campaigns on a fee basis. In that case, the organization’s public relations representatives usually have a liaison function.

Fund-raising involves risks as well as benefits. Adherence to high ethical standards of solicitation and close control of money-raising costs, so that expenses constitute only a reasonable percentage of the funds collected, are essential if an organization is to maintain public credibility.

An understanding of what motivates individuals and companies to give money is important to anyone involved in fundraising. An intrinsic desire to share a portion of one’s resources, however small, with the needy and others served by philanthropic agencies is a primary factor – an inherent generosity possessed in some degree by almost everyone. Another urge, also very human, is ego satisfaction. Those who are motivated by it range from donors to large institutions who insist that the buildings they give be named for them, down to the individuals who are influenced to help a cause by the knowledge that their names will be published in a list of contributors. Peer pressure is a third factor. The cliché about “keeping up with the Joneses” applies here, openly or subtly.

- 247 -

While many companies truly desire to contribute a share of their profits for the community well-being, they also are aware that the news of their generosity improves their images as good corporate citizens. Individuals and corporations alike may receive income-tax deductions from their donations.

Philanthropic organizations raise funds in several ways.

Corporate and Foundation Donations. Organizations seeking donations from major corporations normally should do so through the local corporate offices or sales outlets. Some corporations give local offices a free hand to make donations up to a certain amount. Requests to foundations generally should be made to the main office, which will send application forms.

Structured Capital Campaigns. In a capital campaign, emphasis is placed on substantial gifts from corporations and individuals. One key concept of a capital campaign, in fact, is that 90 percent of the total amount raised will come from only 10 percent of the contributors.

Capital campaigns require considerable expertise and, for this reason, many organizations retain professional fund-raising counsel. The preparation for a capital campaign, whether managed by a professional counseling firm or by the institution’s own development staff, is almost as important as the campaign itself.

Direct Mail. Direct mail can be an expensive form of solicitation because of the costs of developing or renting mailing lists, preparation of the printed matter, and postage. An organization can reduce costs by conducting an effective local, limited, direct-mail campaign on its own if it develops an up-to-date mailing list of “good” names – known to be potential donors – and can provide enough volunteers to stuff and address the solicitation envelopes. Regional and national organizations, and some large local ones, either employ direct-mail specialists or rent carefully chosen mailing lists from list brokers.

Direct e-mail campaigns can also be arranged at reasonable costs with companies that compile e-mail addresses similar to the print mail lists. A response of 1 percent on a mailing usually is regarded as satisfactory; 2 percent is excellent.

Sponsorship of events. Participation contests are a popular method. The money-raising device is the same in all such events: each entrant signs up sponsors who promise to pay a specified amount to the fund for each mile or kilometer the entrant walks, jogs, runs, or cycles.

Staging parties, charity balls, concerts, and similar events in which tickets are sold is another widely used approach.

Sale of a product, in which organization keeps a portion of the selling price, is also used as a way to raise money. A key to success in all charity-fund sales is abundant publicity in the local news media.

- 248 -

The consultancy's first job was to secure a major sponsor to cover administration costs - and this was achieved within two months, with fire and general insurance company, AMI Insurance agreeing to become involved.

A circular route through eight cities, numerous small towns and over 2200 kilometers of roads over eight days was planned. The event was launched to the media at a function in Auckland, with the presence of Lady June Blundell, Patron of the Foundation. Once the route was set, radio stations and provincial media as well as Sunday papers were targeted on a regular basis with releases and background information and a pre-publicity tour with a competitors car visited all media outlets. A newsletter was produced regularly and mailed to potential supporters, entrants and the media. Support was solicited from various groups and organizations, to provide man power and keep costs down.

The NZ Army provided a mobile workshop and mechanics and Lions, Rotaract and Rotary Clubs also provided substantial input. Reporters, TV and radio stations were invited to attend the Fun Drive and cover the event. Public relations personnel kept in frequent contact throughout the event. Radio provided bulletins informing listeners of times of arrival and departures, and arranging interviews with drivers at stop over points. Coloring competitions for children were organized through schools and community newspapers, and posters and stickers were also designed and distributed. The Fun Drive required a major event to start it. A fun festival was organized in a major shopping thoroughfare, with the Auckland City Mayor to officiate. Personalities from a top rating TV show were present, signing autographs etc.

The Results

In provincial cities such as Hamilton, Hastings, Masterton, Palmerston North and Wanganui, in towns like Hawera, Taupo, Levin and Taumaranui, local residents turned out in their thousands to view the Fun Drive and heard and read the message about children with cancer. Newspaper coverage during the event was conservatively estimated by an independent agent to have a value of $85,000.

There was so much radio coverage it became impossible to monitor. The event was judged a huge success by all involved. The sponsor was delighted with the exposure received. Over $25,000 was raised from donations made along the way by individuals and organizations.

A second AMI Fun Drive held in the South Island in November 1994 attracted more entries and raised in excess of $80,000 for the Foundation.

(“Non-Profit organization fundraising promotion” 16 Sept. 2007 <http://www.calpr.co.nz/case_study_cancer.html>)

- 251 -