Fundraising

Amuse Bouche Fund Drives

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So even though I am in a fairly rural area of Ohio, I have discovered that I have an embarrassment of riches when it comes to being able to access public radio broadcast streams. There are two from Ohio universities, one from West Virginia and one from Northern Kentucky. Despite the mountains I can hear each of them fairly clearly since there are repeaters located within a few miles of my workplace.

I tell you this provide some context when I say I heard a fund raising approach I liked but can’t for the life of me figure out which station I heard it on. I have visited each station’s website and Facebook page and still don’t know whom to credit.

In any case, one of these intrepid stations announced that now that the summer had started, they would begin “One Shot Wednesday” fund drives. Instead of having a week long fund drive, they were just going to make appeals on Wednesdays throughout the summer.

I thought this was a great idea because many people will tune away for the week of a fund drive and come back when it is over. Having it once a week repeatedly introduces itself into a person’s habitual listening. Since the disruption is contained to a small period of time, people may tune away for a day, come back again and then be reminded the next Wednesday around.

The station can better retain their listeners and expose them more frequently to the message that the station needs their support before a person chooses to tune away. And who knows, people may stay with the station throughout the Wednesday since the appeal breaks are short relative to other fund drives.

I have been trying to think of what the performing arts organization version of this might look like. Attending performances is not part of most people’s daily routine so there is no week long fund drive people might seek to avoid.

Curtailing the curtain speech appeal might make many audience members happy, but what more palatable alternative do you replace it with?

I know the board of my organization enjoyed calling people up to ask them about how much they liked the past season. The effort was well received all around. It would be possible to insert an appeal at that time, but if done poorly it would probably be a negative experience for all involved.

You might try having board members or volunteers chat casually with people in the lobby before the show and introduce the idea of supporting the organization. There is more of an opportunity to monitor that the process is done well and give notes on improving in the future. The only problem might be if the lobby is too small or if most of the audience rushes in at the last moment leaving little opportunity to speak with them.

I think the real question at the base of all this is- what are we doing now that makes people uncomfortable and what can we do to make it less so. That is what the one radio station did. They took the week long fund drive that everyone groans about and parceled it up across the summer.

I have no idea how successful it is, but from the way they spoke, they have done this before. Once I find the station again, I will try to do some further investigation.

But what ideas do you have to break up the often awkward process of fundraising into something more digestible?

Ben Franklin, Father of Matching Grants

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April 17 is the anniversary of Benjamin Franklin’s death. I thought it appropriate then to link back to a post I did titled St. Benjamin, about a man who was in many respects ahead of his time, including in relation to non-profits.

Franklin had the idea for matching grants 200 years before the Ford Foundation did. Back in 1751, he convinced the Pennsylvania Assembly to give $2,000 toward a hospital if $2,000 could be raised privately.

At the time, the idea was consider controversial, even Franklin was a little uneasy about his idea. As I wrote:

Well for one, political opponents felt the move was too conniving. I suppose it was because they didn’t believe he could raise the money and had tricked the Assembly. Franklin noted that knowing that their money would essentially doubled, they gave more.

Franklin himself referred to his innovative idea as a political maneuver so he might have felt a little uneasy about it himself. The success of his plan eased any troubled thoughts he might have had. “…after thinking about it I more easily excused myself for having made use of cunning.”

Info You Can Use: Kickstarting Your Taxes

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Salon has an important article to read if you are an artist trying to use Kickstarter to fund a project. Apparently people don’t realize the money they receive via Kickstarter is considered taxable income by the IRS.

In short, money raised from Kickstarter and other crowdfunding platforms is considered to be taxable income. Amazon Payments, which handles the credit card transactions for Kickstarter, disburses the funds to the project creator and sends them a 1099-K, a tax form that reports “Merchant Card and Third Party Network Payments” to the IRS. In this particular case, a pledge made by a fan to a project would be considered a third-party network payment.

[..]

“Although musicians may not necessarily be selling something via Kickstarter, they are still entering into a transaction with their backers,” he noted. “If they reach their goal of ‘X’ amount of dollars, they have certain conditions they’ve agreed to make. They should consider the money as income because the IRS defines gross income from ‘whatever source derived,’ unless specially excluded.”

The article also notes that artists often underestimate the cost and logistics of making good on their promises. One woman promised her supporters tickets to a show so when she exceeded her allocation of comp tickets, she had to buy the rest herself. Another ended up spending $10,000 in postage mailing out the items she promised.

Kickstarter also brings an issue artists have faced with their patrons since time immemorial–their desire to be involved in all the decisions.

The issue for Dawn was intensified by her raising five times the amount of her set goal. Suddenly, fans were complaining that she didn’t really need the whole $104,000 to record the album. Dawn countered by noting that not only did she use all of her Kickstarter funds, but she also opened four separate credit cards and dipped into her life savings to cover the difference.

One of those interviewed for the article suggested that anyone thinking of launching a campaign consult with an accountant or business manager first to plan for the tax liabilities and expenses the campaign will entail.

Info You Can Use: NP Orgs Exist In Shadow Universe (Great Resource Guides Too)

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My Twitter feed delivered me two great resources for arts professionals on the same day this week.

The first came courtesy of Sydney Arts Management Advisory Group. I guess I should have known that when they talked about a guide developed for “WA Artists” they meant Western Australia and not Washington State. In my defense, they link to a lot of prominent U.S. arts sources (like me!).

The guide they shared, Amplifier: The Arts Business Guide for Creative People, from Propel Youth Arts, is really one of the best guides for creatives just starting out that I have come across. If you cut out the resource guide at the end of the booklet, 98% of it is applicable to a creative anywhere.

The guide is really accessible with fun illustrations and interviews that will probably make you want to move to Western Australia. It also walks you through all sorts of planning processes with questions and checklists: project management, business plans, identifying markets, goal setting, evaluation, finances & funding, legal, product, pricing, place and promotion.

It doesn’t just deal with performance, but also tackles film, visual art and publishing, delves into copyright law (which appears almost identical to U.S. law) and licenses.

The guide also spends a few pages on risk assessment and insurance for events which is something I have never really seen in similar guides even though it is very important.

The second resource comes from the Wallace Foundation. This one is more geared toward arts groups rather than individuals starting out and is focused on administrative issues like finances, board oversight and administration.

You may have seen some tweets about it but not followed the link. It is really worth stopping by to take a look.

Some of the guides and case studies are what you might expect “Building Stronger Nonprofits Through Better Financial Management” and How to Talk About Finances So Non-Financial Folks Will Listen.

But there are some with more intriguing titles like: “Efficiency” and “Not-for-Profit” Can Go Hand in Hand,  and The Looking-Glass World of Nonprofit Money: Managing in For-Profits’ Shadow Universe.  

The latter is described as” Especially useful overview for board members with little exposure to the unique nature of finance in a nonprofit context.” I  never really thought of NP orgs as operating in a shadow universe. Sounds so cool! Does that mean Rocco Landesman was the dark emperor or something while he headed the National Endowment for the Arts?

There are also proposals like “The Nonprofit Starvation Cycle” which advocate for changes in the way foundations support non-profits.

The part of this resource I have seldom seen in other places was a whole section of five articles, including a podcast, on figuring out the True Cost of programs. They specifically have a calculator for figuring out the cost of after school programs, but following the steps outlined in some of the other articles can help reveal truths like social media isn’t actually free.

I haven’t read through everything in the guide, but I am definitely going to bookmark it for future reference.