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Q
Why do nonprofits need consultants?
A
For the same reason that for-profit corporations need
consultants: expertise in a specific field, additional
contract staff, and, perhaps most important, to provide
an impartial perspective. Consultants provide a holistic
approach to all aspects of nonprofit work, from management
to fundraising.
Q
How can consultants help donors with
their charitable mission?
A
The three key areas are: determining the structure and
process of giving based on the donor's time, tax needs
and asset base; identifying and researching nonprofits
that meet the donor's objective; and training and mentoring
the donor or donor’s family and staff.
Q
How are consultants paid?
A
Most consultants, and certainly those that are members
of the Association for Fundraising Professionals, work
either on a monthly retainer or an hourly rate. We do
not work on commission because of the issues surrounding
ethics and public perception.
Q
Where do the donations come from?
A
Statistics show that more than 80% of all charitable gifts
in the United States come from individuals. Foundations
gave 11.2% of gifts in 2002 and corporations contributed
just 5.1%. These numbers underscore the critical importance
of an active and focused effort on individual gifts.
Q
Is it important to select a locally-based consultant?
A
Not necessarily, but the consultant must have an in-depth
knowledge of the area. Success in fundraising comes from
a passion for the nonprofit’s mission and understanding
of the best fundraising practices as well as knowledge
of the philanthropic patterns of an area. Consultants
are strongest when all three elements are working together.
We have worked successfully with clients in regions that
were new to us by careful research to make sure we involved
the right people and by respecting the culture of the
community.
Q
How do you ask an individual for a contribution?
A
Peer-to-peer fundraising is the most effective way to
raise money. We jokingly tell our friends, "our job
is to figure out who your friends are, then train them
to ask you for money." While staff can be trained
to solicit donations, they are directly affected by the
potential gift. The distance provided by a supportive
volunteer who is also a contributor is both powerful and
persuasive.
Q
Should I consider forming my own foundation?
A
The decision to form your own charitable foundation will
be based on personal finances and the time you can afford
to put into it. A private foundation is a separate legal
entity, with tax-exempt status as a private foundation.
It must distribute a certain minimum amount, each year,
to public charities in order to maintain that status.
Q
Are private
foundations difficult to maintain?
A
Not as hard as many people think. As with any other endeavor,
it is important to realize the extent of the commitment
before embarking on such a venture, as well as having
a clear undertanding of the rules established by the IRS
governing private foundations.
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