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MEMBERSHIP FOR NONPROFITS

EVENTS

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MINNESOTA BUDGET PROJECT

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REACH MN NONPROFITS

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ABOUT MCN

2314 University Ave. #20
St. Paul, MN 55114
Phone: 651.642.1904
Fax: 651.642.1517
Greater MN: 1.800.289.1904

Email: info@mncn.org

cHARITABLE FUNDRAISING: tHE bASICS

Planning for Fundraising

Unlike for-profit businesses that receive revenue from their business practices and distribute profits to stakeholders, and nonprofit organizations receive revenue from individual donors, community and private foundations, corporate giving programs, government grants and contracts, and earned-income practices and use all revenue toward mission-related programs and administration costs. Organizations that have received tax-exempt status are free from federal income taxes and may grant their donors tax deductions for their financial gifts.

Organizations starting from scratch should incorporate a plan for generating both earned and contributed income into an overall organizational development strategy. It’s a common misperception that nonprofits must survive on grants alone, or that nonprofits cannot generate a “profit.” Nonprofits can and should budget for an operating reserve. Funders like to see evidence of organizational sustainability and may ask the question, “If the organization’s funding is dependent on a source that dries up, can the organization survive?”

  • Plan early – It’s a good idea to start planning a fundraising strategy before incorporating. The incorporators or initial board should start looking for donors immediately. Many nonprofit organizations have been started from a loan or initial investment from an interested individual. It may be very difficult to get a bank loan if the organization is brand new and has no financial track record.

  • Look ahead – When planning a budget and income-generating strategy for a start-up organization, try to plan at two to three years in advance. It takes time to build relationships with funders and many opportunities will not be available right away. Also, a key to planning is setting specific goals. Base these goals on the research conducted and the ability of prospective funders to meet those goals.

  • Check your message – Will the organization be able to make a strong case for support when it comes time to approach prospective donors? Does the organization’s priorities match the priorities of the prospective donor? Donors must feel motivated before they will give. The fact that they have the means to give doesn’t mean they will.

  • Lastly, thank donors. Donors want to know that their gift is appreciated and is having its intended impact. Keeping donors informed and connected and recognizing their contribution is the best way to maintain the relationship.

—Excerpted from Handbook for Starting a Successful Nonprofit
(Minnesota Council of Nonprofits)

 


nonprofit fundraising registration requirements

The charitable solicitation Act, Chapter 309 of the Minnesota Statues, states that nonprofits must register as a charity with the Attorney General’s Office, Charities Division if a charitable organization is intending to solicit contributions in excess of $25,000 a year, or has paid officers or staff, or uses a professional fundraiser to file a Charitable Organization Registration Statement. The organization must include a copy of its articles of incorporation, its IRS determination letter, and a most recent financial statement. The filing fee is $25.00. It must be done within 30 days of reaching $25,000 in contributions.  Forms can be downloaded from the Minnesota Attorney General's - Charities Division web site.


soliciting gifts from individuals

Individuals in the United States account for nearly 88 percent of all charitable giving in the country. While over 62 percent of household giving in the United States in 1993 was directed towards religious organizations, over $40 billion went towards health, human services, arts and other types of charitable organizations. This document outlines some of the several different types fundraising that can be used to solicit contributions from individuals. Each of these ideas should be considered in the context of an organization's mission and strategic plan, because none of them are appropriate in all circumstances. It may be wise to consult with a professional advisor to construct a fundraising campaign that fits the needs and resources of your organization.

  • Ask individuals to support your organization through membership fees or dues. Through memberships, sponsors, supporters, or other individuals can provide support to your organization on an annual basis, often receiving a newsletter or another symbol of membership status. Establish donor membership categories which depend on the amount of a contribution. This can help to encourage higher donations because varying degrees of honorary benefits can help emphasize upgraded memberships.

  • Direct mail appeals are an increasingly popular means of reaching a significant number of potential donors. There are several books that describe a full range of direct mailings, and this is certainly an area in which professional fundraisers can assist you.

  • Phone appeals may be an appropriate way to reach individuals in their homes. While probably most successful when targeting past donors who are familiar with an organization, they can also be used to educate the public about the organization and its current program activities.

  • Highlighting the tax benefits to donors who make gifts of stocks or other tangible personal property may help to encourage larger gifts to an organization. Planned gifts, including trusts, insurance beneficiary designations, forms of deferred giving or other legal means can also attract individual donors. Similarly, bequests or gifts specified by the Will of an individual upon death are commonly made, and also provide possible tax benefits to consider. Consult with a tax advisor before actively soliciting these types of donations.

  • Door-to-door canvassing is a mostly seasonal appeal used to reach individuals in Minnesota. While door-to-door canvassing can be expensive for an organization in terms of paid staff time spent on the street, it is a highly personal way of raising awareness about an organization. It can generate community interest and participation, as well as funds, in support of the charity.

  • Special events fundraising commonly raises money for and awareness about an organization. Whether it's a banquet, silent auction, car wash or walk-a-thon, this can be an effective way to boost an organization. The key to a successful special event is to minimize expenses through the use of volunteers and donations of related items. Finding a sponsor or patron to underwrite the cost of an event can significantly reduce the expenses to the organization.

  • Federated fundraising campaigns are a direct way to reach thousands of people across the state. These are annual campaigns carried out for the benefit of member agencies under some common banner or federation name. The Combined Federal Campaign (CFC) for instance, represents pooled federal employee contributions for financial support of eligible nonprofit organizations. The United Ways and the Cooperating Fund Drive are other independent federated campaigns that reach individuals primarily through corporate support and access.


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2314 University Ave W. #20
St. Paul, MN 55114
Phone: 651.642.1904
Fax: 651.642.1517
Greater MN: 1.800.289.1904

Email: info@mncn.org



Principles and Practices for Nonprofit Excellence

Principles and Practices for Nonprofit Excellence are based on the fundamental values of quality, responsibility and accountability. The ten characteristic accountability principles distinguish the nonprofit sector from government and business. The 133 management practices provide specific guidelines for individual organizations to evaluate and improve their management.

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UPCOMING MCN
FUNDRAISING EVENTS

 

Philanthropy Leaders Breakfast Series

Dates:
Wednesday, February 14 - Alex Cirillo, 3M Foundation
Tuesday, March 27 - Lisa Campbell and Heidi Weaver, Target Community Relations/Target Foundation
Thursday, April 12 - Kaying Hang, Otto Bremer Foundation
Wednesday, May 23 - Sandra Vargas, The Minneapolis Foundation Wednesday, June 13 - Dan Johnson, United Health Foundation
Time: 8:00 - 9:00 am
Location: Town and Country Club, St. Paul
Fee: $35, open to MCN members only

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2007 Grantwriting Clinics

Grantwriting endeavors too often drain an organization’s limited resources and end in frustration. In this workshop, participants will gain knowledge that will help them to better understand and implement a more strategic grantwriting and development process.

Dates:
Thursday, February 15
Thursday, May 17
Thursday, July 12
Thursday, November 15
Time: 9:00 am - 12:00 pm
Location: Minnesota Council of Nonprofits Conference Room
Fee: $85, open to MCN members only

More info


Preparing for Grantwriting Webinar

Participants will learn many of the basics in getting prepared for grantwriting and will leave with a better sense of how to do research on funders, how to prepare material and gear up for grantwriting. This session is designed for people who are new to grantwriting, have limited experience, or would like a basic overview of essential practices.

Dates:
Tuesday, March 20
Tuesday, June 26
Tuesday, September 11
Time: 1:00 - 2:00 p.m. (Central Time)
Location: From any online computer
Fee: $35 for MCN members/ $50 for nonmembers

More info


Writing Your First Grant Proposal Webinar

This Webinar will cover the overall purpose of each section of a grant proposal, suggestions for how to include a lot of information within the specified page limits, and common proposal weaknesses and how you can avoid them during this fast-paced one-hour session.

Dates:
Tuesday, March 22
Tuesday, June 28
Tuesday, September 13
Time: 1:00 - 2:00 p.m. (Central Time)
Location: From any online computer
Fee: $35 for MCN members/ $50 for nonmember

More info


Fundraising Brown Bag Lunch Series

If you are currently working as a development staff person in a nonprofit, you are invited to join these informal discussions and information sharing groups.

Dates: First Friday of each month
Time: 12:00 pm - 1:00 pm
Location: Minnesota Council of Nonprofits Conference Room

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MCN FUNDRAISING PUBLICATIONS

2007 Minnesota Grants Directory

With more foundations, increased indexing, and greater levels of detail for many of the foundations included, the new edition of this popular grantseeking guide is now available.
Regular Price: $50.00
MCN Members: $25.00

More info


100 Top National Grantmakers in Minnesota

Published by Access Philanthropy, this publication provides a detailed overview of the top 100 national grantmakers that grant funds to nonprofits located in Minnesota.
Regular Price: $90.00
MCN Members: $45.00


More info