AEF Part 1: Philanthropic Concepts For Fundraising Flashcards
Roles of philanthropy in society
- reduce human suffering
- enhance human potential
- promote equality and justice
- community building
- provides human fulfillment
- supports experimentation and stimulates change
- foster pluralism
Fundraising is…
An organizational process designed to engage donors and potential donors with the organization’s case, mission, goals and objectives, and its vision for the future.
Payton (1988) Philanthropy as a….
Voluntary action for the public good
The Case of Support
Fundraising is never an end in itself; it must be based on a case for support. The privilege to ask is made legitimate by a nonprofit organization’s mission, goals, and contributions to the public good.
The organization has a right to ask because it fulfills a community need, not because it has a budget shortfall or “to keep the lights on.”
The highest importance in fundraising is the…
The ultimate beneficiary is the client, students, family, or group whose life is changed for the better because of the organization’s programs.
Culture of Philanthropy
When fostering philanthropy is everyone’s responsibility from the board to the CEO to the program staff and not the sole duty of fundraising staff.
Recognizing fundraising as a total organizational effort, planned and led by fundraising staff, can generate higher job satisfaction for fundraiser and improves fundraising outcomes.
Voluntary Sector
Arts, humanities, education, health and human services, religion, social justice international aid, animal welfare and the environment.
The Josephson Institute of Ethics offers the following set of values that inform professional, ethical practice:
- Honesty
- Integrity
- Promise keeping
- Fidelity and loyalty
- Fairness
- Caring for others
- Respect for others
- Responsible citizenship
- Pursuit of excellence
- Accountability
Three types of ethical behavior that guide nonprofits
- comply with applicable laws
- doing the right thing even in the face of hardship or discomfort
- choosing the ethical path between competing goods or conflicting values
Four types of “right vs. right” ethical paradigms
truth vs loyalty
individual vs. community
short term vs long-term
justice vs mercy
Values a nonprofit should maintain for an ethical culture
- Commitment beyond self
- Obedience of the laws
- Commitment beyond the law
- Commitment to the public good
- Respect for the worth and dignity of individuals
- Tolerance, diversity and social justice
- Accountability to the public
- Openness and honesty
- Responsible stewardship of resources
Prudent
Marked by wisdom or judiciousness, shrewd in the management of practical affairs, cautious, discreet, thrifty, and frugal.
The Duty of Prudent Care
Requires directors to exercise their responsibilities in good faith with the diligence and skill that a prudent person would under the same circumstances. This prudent care requires carefully made decisions, relative to both expenses and revenues, including generation of revenue by fundraising.
Duty of Obedience
Requires a nonprofit corporation to carry out its legally stated, charitable mission
Duty of loyalty
Requires directors to avoid acting in any manner that may harm the nonprofit corporation, or that may result in the directors, personal financial gain. The duty of loyalty is imposed by state law, and involves federal oversight, prohibiting, excess benefits, or private inurement by directors, officers and staff.
IRS form 990
Information concerning the Board of Directors conflict or interest, policies, charitable giving, and other data collected
Fundraising consultant
Defined as an independently, contracted person or organization, hired to advise and train that charitable organization on fundraising strategies, but not to directly solicit gifts
Fundraising solicitor
Independent contractor, person, or organization hired to directly solicit gifts
501 C3
Public benefit charities, and private foundations
Two types of public charities, according to internal revenue code
- Public support test, which requires that 1/3 of the total support of an organization be derived from a broad number of donors. Example community foundation.
- Public benefit charities without the public support test and includes churches, schools, hospitals, medical, research, organizations, state, university, foundations, and governmental units.
Member benefit organizations
Civic leagues, business, leagues, chambers of commerce, real estate boards, social and recreational clubs, paternal benefit, societies, or associations and credit unions. Gifts to these organizations, do not qualify for an income, tax, charitable, deduction for donors.
The income, tax deduction is available for gifts to veterans organizations, volunteer fire departments, faternal societies for charitable purposes, and cemetery companies .
Unrelated business taxable income, and fundraising (UBTI)
Many charitable organizations, utilize sponsorships to meet resource development goals. Advertising that does not qualify as sponsored. Recognition includes endorsements, and inducement to purchase, and or messages containing qualitative or comparative language, price, information, or other indicators of savings or value.
FERPA
Family educational rights and privacy act
HIPAA
Health insurance, portability, and accountability act
Differences among income gift and estate tax benefits for charitable giving
- Gift and estate tax charitable deductions do not have a percentage limit.
- Income tax charitable deductions is only available for gifts to domestic organizations.
- Estate tax deductions are available to domestic and foreign organizations.
Non-cash gifts
Stock, real estate, artwork, equipment, software
Claiming non-cash gifts
Donor must file and complete IRS form 8283 with the exception for gifts, a small value and file it with their tax return. A deduction over $5000 requires a qualified and independent appraisal.
Gifts to international organizations
Only gift to charitable organizations created under the laws of the United States or gift, subject to tax treaty between the United States and selected countries (example, Canada, Mexico, Israel) qualify for an income tax deduction. This rule does not apply to estate tax charitable deductions.
Donor written, acknowledgment statements. What to include:
- Name of the organization.
- Date of the contribution.
- Amount of the cash contribution.
- Description, but not value of non-cash contribution.
- Statement that no goods or services were provided by the organization in return for the contribution, if that was the case.
- Description, and good faith, estimate of the value of the goods or services, if any, that an organization provided in return for the contribution.
- Statement, that goods or services, if any that the organization provided in return, for the contributions consists entirely of intangible religious benefits, if it was the case.
Theory (Maxwell)
- Spotlight - Isolating and highlighting facets of an idea or practice to enhance understanding
- Coat Closet - hooks on a wall that let us place each item in relationship to others and see patterns.
- Closet full of clothes on hangers, each may be individually well crafted but while they hang there, they are disconnected and not fulfilling their purpose.
Closet full of spotlights
