FUNDING IT

Fundraising's many forms

by Betsy Tabac

Gay and lesbian organizations in Ohio are at all stages of development. In addition, each has a different mission and each offers different kinds of programs. Stage of development, mission and type of programs all affect the fundraising activities an organization can do. This article, and those that follow, will offer fundraising tips for all kinds of gay and lesbian organizations.

We'll begin with an overview of fundraising. The first thing to know is that individuals contribute almost 90 percent of all philanthropic dollars in the United States. In 1992, individuals in the United States donated $109 billion, out of a total of $124.31 billion donated by all sources. Other major contributors are foundations and corporations. Together they donated more than $14 billion in 1992.

Donations from these sources resulted from seven different kinds of fundraising activities: annual campaigns, special gift solicitation, capital campaigns, planned giving programs, special events, direct mail and grantsmanship.

Gay and lesbian organizations need to know when to go to each type of donor and when to utilize each fundraising method. Fundraising takes so much time and involves so many organizational resources that careful planning needs to go into decisions. We cannot afford to waste time and money on the wrong strategy. Our job is too big and our resources too limited.

So how do you choose? Here are some pointers.

Forget foundations if your organization is not nonprofit and tax exempt. You must have been designated a 501(c)(3) by the Internal Revenue Service to receive money from a foundation. In some instances, foundations will allow a nonprofit to designate a fiscal agent that is a 501(c)(3). The agent may be able to receive and disburse foundation finds. This arrangement should be discussed with any potential foundation funder.

Planned giving programs require a sustained effort and in-depth knowledge of some areas of accounting and law. This type of fundraising is most applicable to gay and lesbian organizations that have been around

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awhile and have very strong boards of trustees. It is one of the last fundraising methods a group should get into. However, in Cleveland, you can take a short cut to get into planned giving. The Cleveland Foundation can receive, manage and disburse planned giving donations for gay and lesbian organizations.

You may have received direct mail solicitations from national gay and lesbian organizations such as NGLTF and Lambda Legal Defense Fund. Almost any organization can get into the direct mail game if it has the money to buy mailing lists, print the solicitation letter and pay postage. If your organization already has an up-to-date database of potential donors, you can even avoid buying a mailing list. More gay and lesbian organizations should get into direct mail campaigns. They could benefit from our willingness to support groups working on our behalf.

Most groups start raising money from individual donors who contribute at a special event or respond to a direct mail appeal. (Special events can be anything from blacktie dinner dances of 500 people to cozy dinner parties of six.) Another possible starting place is a foundation. If you have a really great idea and your organization is nonprofit and tax-exempt, it may make sense to find a foundation funder.

This is the first of a series of articles on raising money for gay and lesbian organizations. The author is the president of GrantMaster, a division of Tabac and Associates, Inc. GrantMaster specializes in funding research and in proposal writing.

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NOVEMBER 12, 1993 GAY PEOPLE'S CHRONICLE 15

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