Holy Cow! -- Successful Fundraising Strategies for Faith-Based Organizations Monday, March 21, :00 a.m. 9:15 a.m.

Transcription

1 Holy Cow! -- Successful Fundraising Strategies for Faith-Based Organizations Monday, March 21, :00 a.m. 9:15 a.m. James M. Peak, CFRE, El Paso, Texas Frederick Hueston, Ph.D., CFRE, Conway, Arkansas Steve Kocharhook, Ph.D., Spokane, Washington John Rivas, CFRE, Orlando, Florida

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3 Holy Cow! Overview Facts on and Trends in Faith-Based Fundraising Strategies The Faith-Based Edge Outreach/Marketing Programs Supporting Foundations Planned Giving Prospecting/Database Development Other Questions and Answers

4 Philanthropy Quiz 1. How much money was given to charity in the United States 2009 (last recorded year)? A. 100 Billion dollars C. 303 Billion dollars B. 162 Billion dollars D. 306 Billion dollars 2. What percentage was given to religion in 2009? A. 43% C. 33% B. 15% D. 6%

5 2009 CONTRIBUTIONS: $ BILLION BY TYPE OF RECIPIENT ORGANIZATION

6 3. American Christians give an average of % of their income to the church. A. 1% C. 3% B. 2% D. 4% 4. Members of which congregation have the highest memberships in the United States? A. Catholic D. Southern Baptist Convention B. Presbyterian E. Church of Jesus Christ of Latter-Day C. United Methodist Church Saints 5. Members of which denomination contribute the highest percentage of their income to their church/synagogue/mosque? A. Catholic D. Muslim B. Presbyterian E. Jewish C. Methodist F. Mormon

7 Largest Participating Religious Group Group with the Largest number of Adherents Catholic Church- 1,259 Church of Jesus Christ of Latter-day Saints 81 Evangelical Lutheran Church in America- 157 Southern Baptist Convention- 1,222 United Methodist Church 244 Other- 177 None- 1

8 CHURCH GIVING IN AMERICA Giving as a Percentage of Income Source: 1989 General Social Survey

9 6. Residents of which country have the highest levels of church attendance? A. France D. United States B. Great Britain E. Canada C. Ireland F. West Germany

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11 7. Which organization has raised the most money for Haitian relief over the last year? A. Catholic Relief Services D. Southern Baptist Convention B. Samaritan s Purse C. The United Methodist Church

12 Donations by Faith-Based Organizations to Haitian Earthquake Relief = $300 M +

13 The Faith-Based Edge In 2010, charitable contributions in the US decreased 11%, but religious charitable contributions decreased only 0.1% (Chronicle of Philanthropy) In 2009, 66% of secular Americans made charitable contributions, but 94% of religious Americans made charitable contributions (Chronicle of Philanthropy) Approximately 90% of all funds raised in America have some kind of religious foundation or core (Advancing Philanthropy)

14 The Faith-Based Edge Ask and Ye Shall Receive Constituents already believe in your mission/vision There is no guilt in asking every attendee to give each and every week Your organization has constituents from every socioeconomic level and age

15 Generational Differences Among Donors To what types of organizations do they contribute the most? Over 50 Under 50 All Church or Synagogue 38% 20% 35% Public interest groups (local) 17% 31% 20% Educational institutions 6% 7% 6% Arts 3% 2% 3% Peter D. Hart Research Associates, 1999

16 The Faith-Based Edge You have many different programs and opportunities for involvement and interaction One of the main reasons religious Americans give more is that they are related to the social networks formed at the their churches, synagogues, and mosques. -- Campbell and Putnam, American Grace

17 Outreach/Marketing Programs

18 Florida United Methodist Children s Home 2009 Operating Revenue

19 Florida United Methodist Children s Home Development Office Organizational Chart

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23 Prospecting/Database Development

24 Prospecting/Database Development Sources of potential donors: Over 700 local UMC churches in the Florida UM Conference. Each church has a volunteer Local Church Representative for the Children s Home advocating on our behalf. Over 100 years of a free-will offering every 5 th Sunday in each year in most local churches. Local church and other non-faith-based groups benefit fundraising events.

25 Prospecting/Database Development Sources of potential donors: A yearly Day on Campus in March where 1,500-2,000 guests are welcomed on campus for an all day event. A strong network of agents of wealth (estate planning attorneys, financial advisors, CPAs) who advocate, when appropriate, on our behalf to clients.

26 Supporting Foundations

27 A TALE OF TWO FOUNDATIONS Spokane, WA & Wilmington, DE

28 2002 to Present Abuse by Catholic priests Financial settlements Some dioceses could absorb them, some couldn t 8 dioceses filed for bankruptcy to better manage financial settlements Spokane & Wilmington are two of the eight

29 Catholic Foundation of Eastern Washington Separately incorporated from diocesan corporation Incorporated in 1981 to: Hold money in endowed funds Distribute income from investments and make grants Protect assets from bishop s whims Has operated as separate entity from the beginning Governed by a Board of Trustees Bishop not a Trustee

30 Bankruptcy Results Bankruptcy court ruled: Foundation is a separate corporation and not part of the diocese Assets of the foundation are not assets of the diocese No foundation assets are subject to use for abuse settlement payments

31 Final result All foundation assets remained intact. No assets were used or liquidated for any reason connected with settlement of abuse cases.

32 Diocese of Wilmington Foundation Separately incorporated from diocesan corporation Incorporated in 1928 to: Promote the Catholic Religion, Catholic education and Catholic charity Receives applications and provides grants Bishop and Vicar General are members of the governing board

33 Bankruptcy Results Foundation is a separate corporation and not part of the diocese Foundation pooled its assets with the diocese for investment purposes There is not a trust relationship between foundation and diocese Foundation assets were commingled with diocesan assets Foundation funds cannot be traced into the pooled fund

34 Final result All $45,000,000 of Diocese of Wilmington Foundation s assets could be used to pay claims of abuse victims

35 Moral of this Story Foundations are useful tools Be certain that they are established correctly under the laws of your state Have clearly defined operating procedures and policies (and follow them) Pooled investments are OK, but be careful about trust relationships and commingling assets so they can be correctly identified.

36 Planned Giving Parishioners Endowing Their Tithes Stewardship and Endowment Committees

37 Where Charitable Bequests Went, 2006 Source: AAFRC Trust for Philanthropy / Giving USA 2007

38 Changing Paradigms Traditional planned giver profile Modern planned giver profile

39 Decide What to Promote Wills and bequests Life insurance/retirement accounts Life income plans Property/life estates

40 Basic Gift Instruments Bequests - Revocable gifts Donor Advised Funds - Irrevocable gifts Life Income Plans Charitable Gift Annuities Annuity Trusts Pooled Income Fund Unitrusts Lead Trusts Retirement Accounts Life Insurance Policies Gifts of Property

41 Life Income Plans Charity usually controls: Donor usually controls: Charitable Gift Annuities Pooled Income Fund(s) Charitable Remainder Trusts Charitable Lead Trusts

42 All You Really Need to Know

43 Planned Giving Seven Basic Techniques

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45 Fund Raising Should Be Considered a Ministry One definition of the word ministry is the act of serving. Clearly, professional fund raising should be recognized for what it is a ministry. Professional fund raising is among the noblest of causes. Be proud of your profession. And when someone remarks, I could never do what you do, respond by saying, The key to raising funds is believing in the cause for which you are working. If the passion is there, you will find it to be enormously gratifying. Source: Successful Fund Raising

46 Holy Cow! Ask and Ye Shall Receive

47 Dr. Frederick R. Hueston, Ph.D., CFRE Hueston Consulting Group, LLC 385 Pippinpost Drive Conway, AR (501) Steve Kocharhook, Ph.D. Catholic Foundation of Eastern Washington Post Office Box Spokane, WA (509) James M. Peak, CFRE Peak Fundraising 4832 Costa de Oro El Paso, TX (915) John Rivas, CFRE Florida United Methodist Children s Home 51 Children s Way Enterprise, FL (386) john.rivas@fumch.org