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If your nonprofit organization is planning a fund-raising
campaign, you may be thinking about hiring a professional to do the work.
Professional fund-raisers conduct the campaign for a fee; often it's a
percentage of the money they collect.
Because the fund-raiser will be representing your
organization to the public, it's important that you investigate every firm
you're considering hiring. Inappropriate behavior can result in negative
publicity, fewer or smaller donations, and possible legal action involving
you and the firm if the law is violated.
Choosing
a High School Fund-Raiser
A little research will help ensure you are working with a reputable
fund-raiser. Contact other nonprofit groups in your area for information
and referrals - especially colleges, hospitals, and cultural
organizations. You also may want to contact your local community fund or
an association of professional fund-raisers in your area. Once you've compiled a list of potential fund-raisers, call
them for background information. Get written information about each
including a blank contract before you schedule interviews. Ask how they
would conduct your campaign. Would they solicit by phone, mail, door-to-door, or a
combination of approaches? Would they solicit only money or would they
also sell products or tickets to events? What portion of the cost would
be the actual contribution? Beware of companies that promise something for nothing or
"easy money." Would subcontractors be used for any part of the campaign?
How would the fund-raiser make sure its telephone solicitors follow the
approved scripts? Be clear that while the fund-raiser would conduct the
campaign, you would maintain overall control and expect the company to
provide periodic financial reports. Ask to see financial data from other
campaigns to get a picture of their successes. In addition, ask whether
the company is licensed or bonded, a requirement in many states. Request a list of references and contact them about their
experiences with the company. Ask if they have suggestions based on their
experience. Check out the company with state and local consumer
protection officials, charities regulators, and the Better Business
Bureau. They may be able to tell you if complaints have been registered
about the firm. Finally, get bids. A reasonable bid is determined by
considering all the factors involved: the time and type of labor involved,
the nature and duration of the relationship between fund-raiser and
client, and the ability and experience of the fund-raising firm.
The High School Fund-raising Contract
Once you've selected a fund-raiser, work out the details of
the written campaign contract, which will protect you as well as the
fund-raiser. The contract should: describe the services to be provided and
the financial responsibilities of each party; authorize or prohibit the
use of subcontractors; identify the compensation to be paid - a flat fee
and/or a percentage of the money collected; require that the fund-raiser
use only material reviewed and approved by your organization when
contacting the public, especially telemarketing scripts and printed
materials mailed to donors. Make sure that these materials comply with state laws; many
states require professional fund-raisers to make certain disclosures,
including that a telephone solicitation is being conducted by a
professional fund- raiser. Descriptions of your organization and what it
does should be accurate, as should representations about the tax benefits
of a donation. Specify the contract period, including the closing and
settlement dates; outline cancellation criteria for both parties; require
the fund-raiser to provide detailed reporting of results throughout the
campaign and at its end. All donor checks should be made out to your organization,
not the solicitor. Do not allow the solicitor to endorse checks. Review
sales and other financial records on a regular basis, perhaps weekly. Specify ownership of donor lists. Typically, lists belong
to the nonprofit. If you retain ownership and decide to offer your lists
for rental or exchange, consider the privacy of your donors. You may want
to offer donors the opportunity to opt off of lists you furnish to outside
mailers and phone solicitors.
Fundraising Campaign
Even though you've hired a professional fund-raiser to
conduct a campaign, you are responsible for the actions taken on your
behalf. Therefore, regular contact with the firm throughout the campaign
is a must. If you're conducting a telemarketing campaign, insist that
the fund-raiser institute a system for training and monitoring solicitors
to make sure they are following the authorized script. One method is to
call back donors at random to verify the conversation. Provide the
telemarketer with answers for commonly asked questions. You also should closely track complaints from the public.
If a pattern develops, review the area that's causing confusion or concern
and discuss ways to resolve the issue with the fund-raiser. During the campaign, keep tabs on the flow of money. Make
sure you get copies of original invoices as received, paid receipts as
paid, bank statements, checks and deposit slips. Monitor all expenses to
be sure they are reasonable and ordinary. Immediately question any
expenses that appear excessive or lack documentation.
Hiring a Professional Fundraiser!!
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Fundraising Tips Kit
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