A Fund Raising Idea That Instantly Funds Any Special Project
January 23, 2010scfm 18 Comments »In the next few minutes, you are going to learn the steps to implement a fund raising idea that can raise significant cash within a very short time frame. As opposed to simply asking donors to dig deeper into their pockets, this fund raising idea provides tax and increased income benefits to the donor. If you are involved in any facet of nonprofit fund raising, you can use this technique, for example, to buy or pay off the church organ, add another kennel at the local animal shelter or add a room on to the private school.
Three Steps to Funding Your Project
1. Select an insurance agent
This fund raising idea involves annuities; annuities can only be placed by a licensed insurance agent. I would suggest selecting an insurance agent from outside the organization. Look for agents with the CLU, ChFC or CFP professional designations.
My experience is that you are asking for trouble if you try to use an insurance agent who is on your board or active in your cause. Chances are there are several insurance agents to choose from and you don’t want to hurt anyone’s feelings. Resist the temptation to spread the business among several agents, as you want to keep things simple.
Having been in the insurance business for 35 years, here is my rationale: If any agent within the organization expects to earn the commissions resulting from this fund raising idea, they should have brought the concept to the organization long ago.
2. Communicate the Fund Raising Idea
Prospects for this fund raising idea are senior members of your organization support group. They should be age 70 or older. The older the donor is, the greater their benefit.
Here is a simple outline of the fund raising technique.
a. A person donates cash or a highly appreciated asset.
b. If an asset is donated, your organization sells the property and pays no tax on the sale.
c. A portion of the sale proceeds purchases a single premium immediate annuity on the life of the donor.
d. Your organization keeps the difference and can immediately fund your need.
e. The donor receives an income tax deduction, which can be spread over 6 years if necessary.
f. The donor also receives a guaranteed life income. The rate of return that the income represents is normally much greater than they have been receiving.
g. The net result is that the donor receives an income tax deduction and increased income benefits. Your nonprofit receives immediate cash.
The agent can assist with presenting this fund raising idea to your constituents. That is his or her forte. Many types of media can be used to communicate the idea; for example, a mailing, a post on your web site, a seminar, or an audio CD outlining the benefits.
3. Set Up the Simple Administrative Procedure
Mechanically, this is how the entire fund raising idea flows:
a. Your organization uses the cash or the proceeds from the donated asset to buy a single premium immediate annuity on the donor. A simple letter is usually required, signed by the donor, to establish insurable interest. A one-page agreement, which complies with the laws of your state, outlines each party’s obligations.
b. Each month your organization receives a check from the insurance company for each donor.
c. Your organization could endorse these checks over to each donor or you could issues separate checks. The process is very simple. It is just a couple of new line items in your accounting system.
Summary
You may recognize this fund raising idea as a charitable gift annuity. Many national nonprofits have gift annuity programs. However, most small nonprofits do not. This is the power and simplicity of this fund raising idea. It is simple, straightforward and your organization receives funds immediately upon the completion of each transaction.
National gift annuity programs do not fund your program immediately. Furthermore, national programs do not realize any gain until the person dies and then the gain goes into their coffers, not your organization’s.
If you are involved in a charter school, a church or any nonprofit, here’s how the numbers could work out.
Let’s assume there are 500 supporters and this fund raising idea applies to just 2%, or ten individuals. Further, assume that the range of donations is between $10,000 and $50,000, with the average being $25,000.
This would bring in $250,000. The cost of the immediate annuities will vary by age, but let’s assume this cost is $125,000. That puts $125,000 in your organization’s pocket.
This fund raising idea appeals to the average person. The donor benefits financially in two ways: a tax deduction and a guaranteed life income. Moreover, they get to see the end result of their gift. Your organization receives a large influx of cash quickly to fund a pressing need. This fund raising idea is a win-win for everyone.
Question about fund raising
fund-raising???????????i need to know whether you can fund raise money for a school trip. We are going to costa rica to help out the sea life turtles and whilst we're there we will be going hiking, canopy tours etc. are you able to fund raise for a school trip or not? and any ideas on fund-raising?
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Tags: Fund Raising, Fund Raising Idea, Nonprofit Fundraising, Ron, School Fund Raising
Posted on January 23rd, 2010 at 6:33 am
I think you should have a bake sale.
That's what we did anyways and not only was it a lot of fun but we also made some really good profits.
BTW. That's awesome that you guys are helping out the sea turtles : )
Good Luck <3
Posted on January 23rd, 2010 at 6:39 am
Andrew Miller’s video on Business plan layout and writing tips
Posted on January 23rd, 2010 at 6:40 am
thank you very much sir
Posted on January 23rd, 2010 at 6:41 am
MAKE POSTERS, AND BOXES SAYING BREAST CANCER AWARENESS CLUB AND TRY TO COLLECT MONEY. IS YOUR SCHOOL ALLOWED TO DO DANCES? TRY TO DO SCHOOL DANCES? MAKE THE ENTRANCE AT LEAST $3 NO $5, NO ONE WILL GO. ABOUT THE JUNK FOOD, CAN YOU PEOPLE STILL SELL FOOD, REAL FOOD? FRUIT SALADS? WATER? ARE THERE ANY GOOD ARTISTS AT YOUR SCHOOL? DO PAINTINGS, DRAWINGS, AND MAKE T-SHIRTS, AND SELL THEM. OUR SCHOOL DID THAT ONCE.
GOOD LUCK!
Posted on January 23rd, 2010 at 7:19 am
Make your money and do it the best why you can
Posted on January 23rd, 2010 at 8:39 am
why is there even a christian club ?.. can't you just do any normal fund raising activity except wet T-Shirt car wash (unless u have a jesus shirt on).
Posted on January 23rd, 2010 at 11:54 pm
ask a restaurant to donate a portion of their income of one night, you can also do raffles like make raffle baskets to raise money, their are a lot of great ideas out there
but door to door really does help haha. Good luck! 
plz answer my question: http://answers.yahoo.com/question/index;_ylt=AtrVvazMAzF.565LMTlu2njsy6IX;_ylv=3?qid=20091217133503AA0uvYi
Posted on January 24th, 2010 at 2:35 am
Rummage Sale; run an ad and make pick ups
Golf Tournament; run an ad then organize it
Bingo; ask local businesses for donations
Dinner; make a meal and sell it by the plate
Posted on January 24th, 2010 at 5:51 am
A business plan does not guarantee a businesses success. However, if it is a well written business plan then it will provide a good platform for the success of your business.
You wouldn’t build a house without a plan right? Well, with business its the same thing, planning provides the foundations that you can then build your business upon.
Posted on January 24th, 2010 at 10:28 am
Good and to the point video Matt. Definitly will use it again for reference towards build my buisness plan outline. Thanks!
Posted on January 24th, 2010 at 8:06 pm
Nice & Helpful video.
Posted on January 25th, 2010 at 6:27 am
Helpful video. Inpiring and informative. Does anyone know any good business plan competitions to enter? Has anyone heard about the launch together business plan comp? Is this the first year they are doing it? I love the video they have on the website. Someone should post it on here. Comments appreciated
Posted on January 25th, 2010 at 11:59 am
The best thing you can do is speak with your accountant or a business consultant and they will help you write this part of your business plan.
Posted on January 25th, 2010 at 5:13 pm
I have answered a similar question twice before. Here is the answer I gave to the last request for someone wanting to hold a benefit concert:
I would start by determining what talent you intend to showcase. If you use local talent, it may just be a matter of getting in touch with them to see if they would be willing to offer their services for the cause and publicity. If you intend to use bigger talent, you will probably need to get in touch with their managing agency (i.e. William Morris Agency). Even for charity, there will be contracts and legalities (and possibly monies) to take care of, and more than likely, they will require you to provide the equipment. Make sure you can get the equipment requested. I would not do anything else until I get the overall details worked out with the talent.
The remainder is an answer I left last week for someone who was wanting to host a benefit for the local animal shelter. Some of the suggestions may also help you.
This is a great cause! The first thing I suggest you look into is http://www.jooners.com/ – a free web app that is great for coordinating all kinds of things. They even have an event category.
Here, the animal shelter is a pet project of the city. I'm not sure if you are in a familiar situation. I would find the person in charge of coordinating events for the city (here it would be the community relations board) and ask if they could provide any assistance. I would go with some suggestions in my pocket, but wouldn't bring them up until I got their input. Sometimes when you make specific requests, you may get them answered and no more. If you leave it open ended, you will be surprised just how many ideas they will come up with that you had not thought of. Then contact them later with your pocket requests if you want. Also think of arenas, civic centers, and other locations in your area where events are often held. The Parks & Rec Department? Get in touch with the Coordinators there and ask the same open ended question.
Does the shelter have contacts with Rescues? See if you can contact them and ask for their suggestions.
Contact the community relations officers at the largest employers in your area and large chain stores. They are use to requests from charities and usually have specific procedures in place to make offers or to determine if your cause is eligible for assistance. Ask to speak directly to the manager.
Contact other volunteers of the animal shelter and ask if they know any companies that would be willing to contribute in any way. Make sure that when you get other people involved that you know who they are going to ask before they ask. Otherwise, you will have duplicate people going to the same sources.
Contact local restaurants. Contact local printers – they may agree to donating or low cost printing of fliers, banners, or the like.
Contact the local newspapers – they often have someone who will work with service organizations on PR possibilities for free or almost free.
That is all I can think of off of the top of my head. I think if you contact these people you will be truly surprised at just how many prize donations and how much PR assistance you will receive. And if you end up with too many prizes or prizes that do not make sense for use to participants, have door prizes and use that as PR to increase spectator attendance.
Oh, and if you want to have a step in for the following year, recruit volunteers to hand write thank you cards to everyone who gave assistance.
I hope this helps.
- Laurel Plum
http://laurelplumonline.com
Posted on January 25th, 2010 at 6:12 pm
Glad you liked it, shortly there will be more being added to help start-ups and early stage businesses..
Posted on January 25th, 2010 at 7:13 pm
The fall is a great time to do a fundraiser with candles. You can take advantage of the fact that almost everyone buys them. We use a company with a simple program with no upfront costs and made a nice profit.
Posted on January 26th, 2010 at 5:41 am
how about a car wash. if you and your girls dress the part im sure you will get lots of cash. here some organizations use one of our local gas stations and hold car washes for $10.00.
be sure your car wash sign is big enough and use colors to catch peoples eyes.
good luck!
Posted on January 26th, 2010 at 3:26 pm
Hi Adam, more videos are on the way shortly to help demystify the process..