kenneth hoffman principal, hoffman & associates lexington, massachusetts, usa e:...

Consultants in US Fundraising

Hoffman & Associates

Kenneth HoffmanPrincipal, Hoffman & AssociatesLexington, Massachusetts, USAE: [email protected] T: +1 781 274.7337

FUNDRAISING FROM THE USA:Opportunities for Czech Charities

Part 1: The American Philanthropic Market

© Kenneth Hoffman 2014. Reproduction rights granted to attendees; all others, by permission only.

Prepared for:Czech Fundraising Center

March 26 & 28, 2014

mailto:[email protected]


Hoffman & Associates 2

Agenda

Part 1• The American philanthropic market• Favored sectors • Cases and budgets• The 3 “source types”• Assuring tax advantage

Part 2• Identifying donor prospects• The US “culture of philanthropy”• Examples of fundraising success



Who gives?

In 2012, American donors gave $316 billion (CZK 4,640,000,000,000)

Source: Giving USA 2013

6%

15%

79%

Corporations, $19 billion

Foundations, $48 billion

Individuals, $249 billion



Religion; 102; 32%

Education; 41; 13%Health; 28; 9%

Human services; 40; 13%

Gifts to grantmaking foundations; 31; 10%

Public-society benefit; 22; 7%

International affairs; 19; 6%

Arts, culture, and humanities, $14 ,

5%

Environment/animals; 8; 3%Unallocated giving; 7; 2%Foundation grants to individuals; 4;

1%

Who are the recipients in the USA?

2012 Contributions: $316 billion by type of recipient organization

Source: Giving USA 2013



International causes supported with foundation grants, to domestic & foreign charities

Source: Foundation Center, International Grantmaking Update, 12/2012 (biennial publication)

Religion; 2%

Education; 9%

Gates Foundation; 31%

All Others; 10%

Intl. Development, Re-lief; 19%

Environment; 11%

Public Affairs/Society Benefit; 5%

Intl. Affairs; 4%

Human Rights, Civil Liberties; 4%

Arts & Culture; 3%

Social Sciences; 2%Science & Technology; 2%

Total funds: $4.3 billion (2010)

Health 41%



USA foundation giving, internationally

USA Foundations gave more than

$3.8 billion to non-USA charities in 2011.

5,759 Recipients

8,617 Grants

514 Grantors

Source: Foundation Center 2014



The “league table” for 2011

Rank Country AmountRecipient

CountGrant Count

Grant Maker Count

1 Switzerland $1,947,711,172 74 147 54

2 England $236,358,351 345 773 147

3 India $139,981,834 359 491 60

4 China $133,564,201 302 551 57

5 Japan $121,496,080 49 160 111

41 Hungary $6,557,359 30 33 17

52 Austria $3,763,193 20 30 15

57 Poland $3,433,647 40 47 17

99 Slovakia $716,124 10 10 7

100 Czech Republic $695,521 11 12 11

Source: Foundation Center, Cross Border Giving (2014)



Favored sectors (1)universities



Favored sectors (2)international development

9

Geneva, Switzerland



Favored sectors (3)arts / culture / heritage

10

http://en.wikipedia.org/wiki/File:Louvre_Museum_Wikimedia_Commons.jpg



The 4 critical questions

1. Who are you?

2. How much do you want?

3. What do you want it for?

4. Why should I give?

11



Cases that rarely work

Need HERE … money THERE

Local education

Regeneration

Social exclusion

12



Cases that often work

Replicable result

Unique artifacts

Priority geography

Donor’s personal interest

13



Expense budget

• “True costs”, but aim high!• Simple categories• More than salaries• Administration costs / overhead• One page• Currency: use USD• Derivations



Income budget

• Variety of sources• Reasonable targets• In-kind income• One page• Multi-year



The 3 “source types”: Foundations, Corporations & Individuals

16



Foundation varieties

• Program-driven

• Family

• Hybrid

17



Foundations: What they say

18



Foundations: What they do

19



actual: 3-5%

Proposal success rates

target: 40-60 %

20



Corporations

• Employees

• Owners

• Community



Corporations have two ways of giving

• “Direct Giving” from marketing budget–Check website, annual report

• Corporate Foundation grants– Use Foundation research tools

22



Individuals

The top:

80,000 households

net worth > $20 million

The middle: passport holders

The bottom:

70% of households give

23



Why do individuals give?

• Unique or exciting mission or project• Foreign attraction (“exotic”)• Benefits

–Premiums (gifts, souvenirs)–Events (travel, entertainment)–Tax deductibility

• Request from a friend

24



Expectations of individual American donors

• Private fundraising “at home” • Board financial commitment: 56%• Volunteers• Cultivation• Benefits• Stewardship• Solicitor donates

25



Dull, but essential: tax-deductibility

Direct giving by foundations:

• “Establishing Equivalency”or

• “Expenditure Responsibility Grant”

Source for both: US International Grantmaking, www.usig.org

Affidavit &

Support Schedule

26

http://www.usig.org/



or contributions received through third parties

• Your own “American Friends” group• “Intermediary” organization, e.g.,

–CAF America–The American Fund for Charities–King Baudouin Foundation US

• Cooperating charity

27



What we have covered

Fundraising from the USA• The American Philanthropic Market• Favored Sectors • Cases and Budgets• The Three “Source Types”: Foundations,

Corporations, and Individuals• Assuring tax-deductibility (tax advantage)

for all sources

28



Coffee break

To be followed by:• Identifying donor prospects• The US “culture of philanthropy”• Examples of fundraising success

And Question-and-Answer

29



Kenneth HoffmanPrincipal, Hoffman & AssociatesLexington, Massachusetts, USAE: [email protected] T: +1 781 274.7337

FUNDRAISING FROM THE USA:Opportunities for Czech Charities

Part 2: Fundraising Techniques

© Kenneth Hoffman 2014. Reproduction rights granted to attendees; all others, by permission only.

Prepared for:Czech Fundraising Center

March 26 & 28, 2014




Different source types1. Foundations2. Corporations3. Individuals

Different motivations

Different approaches for• Research (“Research Resources”)• Contact• Receiving funds

Identifying your American donor prospects

Research

Resources

31



Finding foundation prospects

If you know the name, research them directly via

• Foundation website• Free search engines and research tools

Who else is funded?• In your subject area• In your geography

32



Foundation research tools (1)

http://fdo.foundationcenter.org

Online Demonstration

(free)

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=GxZDijdJ6BqGzM&tbnid=MW3rWC-U-zIPkM:&ved=0CAgQjRwwAA&url=http://commons.wikimedia.org/wiki/File:Foundation_center_logo.svg&ei=Qb5UUfuNGOfg0gGrzIDoCw&psig=AFQjCNFMErA0pWxrRbQLpVYOR3rSzMr4GA&ust=1364594625447815




GuideStar (free)www.guidestar.org

Becoming familiar with:

Form 990-PF

The annual tax return filed by all Private Foundations

Form 990

The annual tax return filed by all public charities


34

http://www.guidestar.org/




Foundation Directory Online ($$)http://fconline.fdncenter.org

Search “Grants” by:• subject • geography• recipient


http://fconline.fdncenter.org/



Corporate prospects

• Local siting: plant, sales office• Marketing • American Chamber of Commerce in the

Czech Republic (AmCham)

36



Corporate research tools

Corporate foundations• “Foundation Directory Online”

Direct giving• Corporate website




The individual donor prospect at the site!

38



Board members as donor prospects

• USA charities in your field• “American Friends” groups in your field• Organizations with a Czech mission or

major project

39



Individual Research Tools

Wealth and giving capacity through public sources:

• income - “Forbes 400”• real estate holdings - LexisNexis• stock ownership – Securities & Exchange

Commission

40



Individual Research

Specialized searches through proprietary databases ($$)

•


41

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=z1O-h2yED_sTqM&tbnid=g2rlSZlbFZPr6M:&ved=0CAgQjRwwAA&url=http://expocad.web.smithbucklin.com/bai10/ec/forms/attendee/index.aspx?content=vbooth&id=175&ei=lb1UUavdGIbh0wGErIHABw&psig=AFQjCNHOkQT_2jNRbux7I1bkGt3jJJtDtA&ust=1364594453443597



Generational fundraising

Seniors 1920-1945 Duty

Boomers 1946-1964 Individualistic

Gen X 1965-1977 Light

Gen Y 1978-1995 Mobile

Media: print – phone – internet – mobile – social sites

Multi-channel users!

Sources: Dr John Baguley, Stephen Pidgeon



Capturing & sharing the research

Many options to capture data• Specialist fundraising databases• Excel spreadsheet

Presentation of information is important• Instills confidence that homework is done• Important to Board members and other volunteers

especially if they are soliciting gifts

Comprehensive development files• Contact notes

43



Gaining introductions

Use a “Consolidated Prospect List” • Response to listings• Discover new prospects

44

Consolidated

Prospect List



Differing cultures: USA & Czech Republic

• Familiarity and comfort with the “language of solicitation”

• Responsibility for fundraising• Informality• Speed of action



Where it went wrong

“You’ll need to follow up that letter with a phone call.”

“What is your annual expense budget?”

“And how much were you thinking of asking us for?”

46



Where it went right:Top 5 grant recipients, CR, 2003-12

Source: Foundation Center, Cross-Border Giving, 2014.

VIA Foundation 2 grants $ 2,060,000

CEE BankWatch Network 7 grants $ 1,170,000

Project Syndicate 1 grant $ 963,226

Czech Donors Forum 9 grants $ 748,000

Centre for the Preservation and Restoration of Architecture (CORA) 3 grants $ 586,023

47



Five successful fundraising charities in nearby countries, 2003-12

Source: Foundation Center, Cross-Border Giving, 2014.

Stefan Batory Foundation, Poland 11 grants $15,016,000

Bratislava Institute of Humanism, Slovakia 6 grants $ 7,708,889

Naturhistorisches Museum Wien, Austria 9 grants $ 3,145,000

Town of Sosnowiec, Poland 12 grants $ 2,578,037

Bocskai Istvan Gimnazium, Hungary 8 grants $ 363,083

48



Surprising results

49



Are you ready for the US?

Questionnaire

• General assessment• Alumni organizations

50

Questionnaire



Theory

Internal Commitment & Preparation

Identify Prospects

Buildingthe Network

Priority of Approach

Solicitations& Awards

Stewardship

51



Practice

People

give

to

people !

52



Thank you for listening!

Ken Hoffman Hoffman & Associates

4 Muzzey St., 2nd Floor Lexington, Mass. 02421 USA

T:M:F:E:S:

+1 781 274.7337+1 781 308.0297+1 781 [email protected]

How to reach us

53


kenneth hoffman principal, hoffman & associates lexington, massachusetts, usa e:...

Documents

foundation center

dusa foundation

nonusa charities

direct giving

corporations individuals

american donors

czech charities

switzerlandfavored sectors