Trends in corporate support

Trends in corporate support 
by Jim Abernathy
From - 

• The Founding Fathers Write a Proposal - {Centered}: August 2013 (Vol. 6, No. 8)‏

  The total value of corporate gifts -- cash, goods, and services -- increased in 2012; now it's 42% greater than it was in 2007, before the recession, according a survey of 214 corporations by the Committee Encouraging Corporate Philanthropy (CECP). (Source: "Studies show rebound in corporate contributions," Corporate Philanthropy Report, August 2013. Read or download the full report, "Giving in Numbers 2012 Edition," at the CECP website.

  
  

  Giving may be up, but after surveying 106 of the largest corporations,The Chronicle of Philanthropy reports that the share of pretax profits going to charity is down. It dropped to 0.8% after ranging between 1% and 1.4% over the previous six years. (Source: "With Cash Giving Flat, Big Companies Offer Other Aid," by Ben Gose and Marissa Lopez-Rivers, The Chronicle of Philanthropy, July 18, 2013.)

  
  

  Both studies found that cash gifts stayed relatively flat. But noncash contributions (including excess inventory; pro bono services; and use of company facilities, intellectual property, and land, etc.) rose to 69% of the total value (about eighteen billion dollars) of corporate support for charitable groups. The most favored types of charities were education and health.

  
  

  The Chronicle's Ben Gose adds the following advice for organizations seeking corporate support:

  • Identify the themes in the corporate giving program and see how they match with the work of your group.
  • Determine the level of the corporate structure your group should approach - the local manager or the headquarters office.
  • Show how your organization demonstrates outcomes or return on investment.
  • Provide opportunities for company employees to volunteer with your group.
  • Be prepared to move quickly when you learn of a new corporate initiative.

Sample Annual Fund Letter - Part 3 - Donor Benefits

People like benefits.  They like the idea of getting something when they give you something.  Yes, for some a warm fuzzy feeling is enough but often when asking for larger chunks of money those benefits become more, and more appropriate.

These are an example for an orchestras with about a $1.2 million budget.  The various levels are correct for their budget size and for how charitable giving works in their community.  These levels and benefits vary based on size of organization and region.  Therefore what one organization considers a large donation may not be the same for another.  If you have a $200,000 budget a $500 donation is wonderful.  If you have a $20,000,000 budget a $20,000 donation could be great to ok.  Use the below to get ideas, but make the benefits your own.

Ok, Letter, Form, Benefits and don't forget the return envelop!  Now you are ready to send out an Annual Fund Letter.  And just because its an Annual Fund Letter, you don't have to send it out only once a year.  For example this orchestra mailed 3 to 4 times a year to remind those who had not yet renewed gifts and ask for new donors.  Space it out, do what is best for your needs!

  

Donor Benefits for the 2012-2013 Annual Fund:

In appreciation for your generous support, the Erie Philharmonic is pleased to offer a variety of benefits:  

Contributing Member $1 - $99

• Acknowledgement in concert program books
• Invitation to all Phil concerts and events 

Supporting Member $100 - $499

• All of the above, plus
• A voucher good for complimentary admission for two to the Symphonic concert of your choice

Sustaining Member $500 - $999

• All of the above, plus
• Invitation to annual donor holiday reception
• Invitation to Annual Meeting each June
• A special Erie Philharmonic gift

Benefactor Member $1,000 - $1,499

• All of the above, plus
• Encore Club Lounge guest pass good for admission to Encore Club Lounge prior to one concert during the season
• Invitation to annual musicians recognition event

Encore Club Bronze Baton $1,500 - $2,499

• Encore Club membership that offers special opportunities to develop direct links to the musicians and administration of the Orchestra
• Exclusive Encore Club Lounge admission card.  The Encore Club Lounge is located on the second floor of the French Street lobby and provides complimentary desserts and wine prior to each Warner Theatre concert.
• Encore Club parking pass for the Northwest Savings Bank lot at the corner of 8^th Street and State Street good for V.I.P. parking for each Warner Theatre concert.
• Advance copy of Symphonic concert program notes mailed to your home

 Encore Club Silver Baton $2,500 - $4,999

• All of the above, plus
• Four tickets to the Erie Junior Philharmonic winter and spring concerts
• Opportunity to dedicate a piece of music performed by the Orchestra

 Encore Club Gold Baton $5,000 - $9,999

• All of the above, plus
• Opportunity to sponsor a musician for one season

 Encore Club Conductor’s Circle $10,000+

• All of the above, plus
• Invitation to annual dinner with the Music Director

Sample Annual Fund Letter - Part 2 - The Donation Form

Ok, you have already written a beautiful letter, now you need something for people to fill out and send you money back with.

Keep it simple.

A place to check they are giving and write in their amount.  This is also an appropriate place to give suggested amounts with varying levels.  If you go with various amounts, ALWAYS give an Other option.  Bill me options are becoming popular along with small monthly donations.  Love the corporate matching gift so don't forget to remind people of it as it's not their money but a way for them to help give you even more money!  Make sure to ask how they would like their name to appear.  And of course, SAY THANK YOU.

Name

Street Address

City, State Zip Code

Yes, I pledge $___________to the 2012-2013 Philharmonic Annual Fund to help the Erie Philharmonic accomplish its mission: to strengthen our community and region by providing high quality live orchestra concerts and programs that enrich, entertain, and educate people of all ages.

 

^{Signature                                                                                                                                                    Date}

Payment Information

q Check(s) enclosed payable to: Erie Philharmonic, Jr. Philharmonic, or the Erie Philharmonic Chorus

q Please charge my credit card.           qVISA             qMasterCard               qDiscover

           

                       

Number:                                                                                                  Exp. Date                            

q Please bill me on                                                       (one time payment before 6/30/13).

q Please bill me:   q  monthly       qquarterly

q Gift of stock:                       shares of                                                                                 will

                           ^{number of shares                                                             name of stock}

arrive from                                                                  .  Please call 814-455-1375 x 5 for instructions.                ^{brokerage firm/broker’s name}

                       

q My company,                                  , will match this gift in the amount of $                                   .

q I would like to be contacted about planned giving.

For acknowledgement purposes, please indicate below how you wish your

name(s) to be listed, or if you wish to remain anonymous:

_____________________________________________________________

All donations to the Erie Philharmonic are tax-deductible to the fullest extent allowed by law.

Thank you for your generous support of the Erie Philharmonic!

A Message from the Americans for the Arts

Charitable contributions are the lifeblood of the nonprofit sector and account for up to 40 percent of a nonprofit arts organization’s annual budget. Right now, Congress and the White House are considering major tax reform measures to raise new revenue for the federal government.  Some legislators are considering limits to the charitable tax deduction in order to retain more tax revenue. This recommendation is both short-sighted and harmful to many arts organizations.

 If this succeeds, it will be at the expense of much needed charitable contributions to thousands of nonprofit organizations across the country. Harmful tax code changes impacting the charitable deduction would set off a cascade of consequences undermining our economy, as well as cultural programming and services that millions of Americans rely on. For nearly 100 years, the charitable deduction has served as a model of our altruistic society and it must continue to be a fundamental tenet of our income tax system.

That’s why Americans for the Arts and the Arts Action Fund are joining forces with the Charitable Giving Coalition on November 20th on Capitol Hill to bring national attention to this cross-sector issue affecting groups ranging from The Red Cross, YMCA, and medical research to churches, universities, and cultural groups.

Will you help us deliver a strong message by signing our petition to tell Congress to protect charitable giving incentives?


Nina Ozlu Tunceli
Executive Director

Tick-Tock: IRA Charitable Rollover Expiring December 31!

Tick-Tock: IRA Charitable Rollover Expiring December 31!

As 2013 winds to close, a significant charitable giving incentive is also nearing its expiration date. The IRA Charitable Rollover provision was reinstated in the broad deal passed by Congress earlier this year, but it will once again expire on December 31, 2013.

This provision has proven to generate new and increased charitable donations for orchestras in the years it has been available. In the course of its history, the IRA Rollover has expired and been renewed several times, leaving many donors confused about the status. The provision has been reinstated through the end of 2013, meaning that donors aged 70 ½ and older can instruct their IRA administrators to make tax-free distributions of up to $100,000 directly from their IRAs to charitable organizations through December 31, 2013.

It is always wise to advise donors to contact their IRA administrator and/or tax advisors for more detail as you inform them that this important charitable giving incentive is still available for the next several weeks.

What’s next for 2014? Policy leaders in Washington tell us that a provision to extend the IRA Rollover into 2014 is not likely to gain steam until well into the 2014 calendar year, as Congress is currently committed only to addressing tax provisions through “comprehensive reform.” Please feel welcome to be in touch with the League's DC office with any questions, and stay tuned, as we will keep you informed of further policy developments!

Corporate grants: Clean enough?

by Thomas Boyd 

{Centered}: June 2013 (Vol. 6, No. 6)‏ - The Grantmanship Center

Corporations have been making charitable donations since the late 19th century. In those early years, most giving was to projects that would provide "direct benefit" to the company or its employees. Gradually, corporations began to expand their philanthropies to include organizations doing good work for the society as a whole. This evolution triggered heated debates within corporations about whether or not they could give away shareholders' money. One such debate resulted in a landmark court case: In A.P. Smith Mfg. Co. v Barlow (1953), the New Jersey Supreme Court ruled that "corporate gift-giving increases the goodwill of the corporation, and public policy should be to encourage corporations to provide to charities in the same manner as individuals are encouraged to give."  

Since the A.P. Smith decision, which settled the legality of corporategiving, the debate has shifted to whether or not a nonprofit doing "good work" ought to take the money. Many in the nonprofit world are ready to indict corporations for most of society's troubles. Corporations, they say, are the "bad guys." And yet:  

• Electronic Arts, the giant video game publisher, has been voted the worst company in America by The Consumerist. But EA has been out front in its support of LGBT themes and content and has taken heat for its progressive stance from the Christian right.

• The Hershey Company was named one of the eight worst companies to work for by the online publication viewmixed. But in November 2012, Hershey was named one of America's top 50 most civic-minded firms in The Civic 50 survey. 

• The Southern Company was rated the nation's "most irresponsible utility" by Green America in 2011. But over the past few years, Southern has donated more than $1.4 million for projects to restore wetlands, carry out coastal preservation, and clean streams. 

It's not easy to make durable, inflexible judgments about the right-or-wrong of corporate giving. "Bad guys" often do good things with their money. And corporate "good guys," despite their reputations, sometimes dirty their hands - as in Ben & Jerry's dubious use of the term "all-natural," and the Humane Society of the United States's revelations about egg-farming conditions at environmental-award-winning Kreider Farms. When a grantseeking nonprofit is evaluating a potential relationship with a corporate donor, black-and-white thinking isn't much help. Instead, here are some questions the nonprofit can ask:  

• Is the company's basic business in harmony with our values? There's probably not much debate about charitable gifts from Sturm, Ruger & Co. or Smith & Wesson, and the NRA got there ahead of you anyhow. If massive military contracting is antithetical to your values, you won't be turning to Lockheed Martin or Northrup Grumman. These are obvious examples, but they put the issue in focus. Grantseekers need to look closely at the alignment between a corporation's core businesses and the values that animate and drive the nonprofit. 

• The second question holds a mirror up to the nonprofit. Is our plan for using the money consistent with our mission and programs, or are we just hunting for big bucks? Sometimes a corporation's "bold new funding initiative" seduces a nonprofit into putting on a mask and pretending to be what it is not, to do what it does not actually do. An agency dedicated to youth programming, for example, probably should think twice about chasing a grant for senior services. 

• The third question is one of degree. If a company has been guilty of environmental, employee, or market abuses, is it getting better? Are improvements being made? Avon Products, recognizing its impact on forests, its carbon footprint, and the effect of palm oil plantations on species habitat, has taken steps to reduce its energy demands, increase recycling, and support sustainable practices where it can. That's not everything, but it's a worthwhile beginning. If your nonprofit is troubled by a potential corporate donor's history in an important area of social responsibility, take the initiative. Ask a lot of questions. 

• Finally, is a corporate gift likely to enhance or impede your nonprofit's standing in the eyes of important stakeholders?  Will some individual donors be turned off? Will your agency's clients be supportive or offended? Some smart nonprofits use a development working group--including senior staff, a board member, a client or two--to hammer out questions like these and make sure the gift is not a problem disguised as a check. If taking the money might cause a rift or a struggle within the organization, maybe you'd better pass. 

Corporations exist to maximize shareholder equity. The best of them (and sometimes even the worst of them!) see the importance of strengthening their communities. Nonprofits should resist the supplicant's bended knee and the knee-jerk anti-corporate stance; they have a $15 billion opportunity to make vital and energetic partnerships with companies where the fit is right and the work is worthy.

All grants, including government and foundation grants, come with complications, and nonprofits are vulnerable to subtle influences that can undermine their missions. A stakeholders' group can provide ballast, if you have good people on it, if they deliberate honestly, and if you listen to them. But nonprofits can and should protect their independence by diversifying their funding sources.  

Thomas Boyd's 40-year career in nonprofit management and development includes roles as a nonprofit executive, a corporate giving officer, and a consultant trainer for The Grantsmanship Center.   

U.S. Armed Forces Salute - Happy Veteran's Day!

http://www.youtube.com/v/bbCqictwmLk?version=3&autohide=1&autohide=1&showinfo=1&autoplay=1&attribution_tag=pjAxEKeGDdfl7Hu3215fvw&feature=share

Sample Annual Fund Letter - Part 1 - The Letter

Someone recently asked me for a sample Annual Fund Letter; so here it is!

Annual Fund Letters go to individuals.  Unlike grant proposals they should be personal.  While we stuck to the bare bone facts in a grant proposal here it is completely appropriate to strive for an emotional response from the reader.

We remind the reader what we can accomplish with their help.  We say thank you for past or (hopefully) continues support.  We use phrases like "join us" with the goals we are working on to make the reader feel a part of and connected to the cause.

So below is an example (and one specifically for Year End Giving as we are entering that time of year).  In Part 2 and Part 3 we'll look what else you send with an Annual Fund Letter - a return form and the donor benefits.  And of course send a return envelope too! 

Name

Address

City, State Zip

Dear Salutation,

Last season the Philharmonic reached over 33,500 members of our community through concerts in the Warner Theatre, Youth Concerts, the summer concert series, and Heritage Festival on the bayfront, as well as engagements in Edinboro and Meadville.  As a donor, your generous gifts are essential to our ability to continue to provide quality artistic programming and community engagement initiatives in the tri-state region.    

The Philharmonic has a strong commitment to educational and community activities.  Examples are the annual presentation of two sell-out youth concerts that attract a total of 4,400 school-age children, the many activities of the Junior Philharmonic, and maintenance of a volunteer chorus.  

To aid in impacting the social and cultural fabric of Erie, the Philharmonic has invested effort into collaborative partnerships.  In the last year, thanks to your support, these have included:

• Participation in Orchestras Feeding America resulted in the collection of 1,000 pounds of food to benefit the Second Harvest Food Bank.  The orchestra partnered with the Erie Playhouse, Erie Art Museum, Lake Erie Ballet, expERIEnce Children’s Museum, Eriez Magnetics, WQLN, the Montessori Regional Charter School, and Vernondale Elementary to collect food.
• Erie Downtown Arts & Culture Coalition partnerships included incorporating the Erie County Historical Society’s Planetarium in Mozart’s “Jupiter” concert, holding post-concert parties at both the expERIEnce Children’s Museum and Dafmark Dance Theatre, featuring Erie Playhouse performers on stage with our Youth Concerts and the James Bond Pops Concert.
• Partnerships were developed with the United Way; Multicultural Community Resource Center; Martin Luther King, Jr. Center; News Papers in Education; and the Sight Center each supporting various concerts.
• Through our Send-A-Senior Program, over 250 tickets were donated to senior citizens who could not otherwise afford to attend a concert. 
• Over 30 visits were made by Daniel Meyer to area senior living centers, schools, and service organizations.

The Philharmonic has been dedicated to enhancing life in the Erie region for the past 99 years and intends to for many, many years to come. 

More than 25% of our annual budget comes from the Phil’s Annual Fund Appeal and enables us to complete our mission: to strengthen the community by providing high quality, live orchestra programs to people of all ages across the region.  We truly hope that you will consider supporting the work of the Erie Philharmonic with a donation that will allow us to continue and expand the many ways we touch our region.  We also hope you will consider an additional donation toward our 100^th Anniversary Campaign.  Donations of all sizes make a huge impact in our ability to grow our activities and to celebrate our successes together.

Daniel and I thank you for your support as we look forward to a fantastic 99^th season and the growing excitement of our upcoming 100^th Anniversary!

 (real signature if possible here)

Audrey J. Szychulski

Executive Director