Seven Principles of Fund Raising
This article originally appeared in Exchange,
a newsletter published by the Wisconsin Historical
Society. (Volume
41, Numbers 2 & 3,
1999). It is the sixth in a series of articles titled Public
Appeal. The series deals with public
programming and public information. It was
written by Tom McKay, retired local history
coordinator for the Wisconsin Historical
Society.
As a local historical society plans meetings, tours, newsletters,
Web pages and other public services, it seeks to achieve
programming that has appeal to broad segments of its community. Public
appeal of a different sort occupies the attention of a local historical
society when it seeks support for the services it offers. The need
to appeal for financial support presents a historical society with
the challenge of fund raising.
Few people relish the idea of fund raising. Some historical societies with little experience or success in fund raising may look at the financial support secured by other societies and feel that some combination of luck, magic or special circumstances must have been at work. Progress toward fund raising success requires neither luck nor magic. Although every community does present its own set of circumstances, some basic principles of fund raising apply virtually everywhere. The seven principles that follow represent a few basics of fund raising. They are not a "lucky seven" but a "solid seven" principles that will help any local historical society raise money.
A Historical Society Raises Money on Its Record of Accomplishment
Successful fund raising requires more than matching a worthwhile project with a source of money. Any funding source, whether an individual donor, charitable foundation, private business or government agency, must believe that a historical society can succeed in the endeavor for which it seeks support. A society's existing record of accomplishment is a primary factor in demonstrating that it can successfully provide services or complete a project. Fund raising efforts must always succinctly communicate that the historical society has a record of competence and worthwhile accomplishments.
If a historical society honestly judges that its record of accomplishment is too brief or shows limited success that may compromise its efforts to raise money, the society may need to strengthen its record by first completing projects that need little financial support. A few examples of inexpensive projects that can build a stronger record of accomplishments include: a speakers bureau for local schools and organizations; walking tours of neighborhoods, business districts or cemeteries; and providing a historical photograph of the week to the local newspaper.
Fund Raising Begins with the People Most Interested in a Historical Society
At its most basic level, successful fund raising involves soliciting support and receiving positive responses. The people most likely to give a positive response and make a contribution to a historical society are the people most interested in the organization. In a local historical society, fund raising begins with approaching society leaders and members, local businesses and local government for support. Outside funding sources, including those able to make large contributions, are much more likely to do so after they see local support demonstrated by a historical society's members and its community.
A historical society may have to do a better job identifying potential interested supporters. A genealogist from another community or state who finds a local ancestor with assistance from the historical society is a potential member. An invitation to the genealogist to join the society may add a member, and adding a member adds a potential donor. The people who return to a community for a high school reunion have that direct interest in the community's past and may become interested in the historical society if asked. Many corporations, even with distant headquarters, have provisions in their charitable giving programs that direct support to communities where they have plants or employees. Such provisions make them potential parts of the interested core of supporters.
Accurately Judging the Need for Financial Support Strengthens Fund Raising
In requests to members, grant applications, presentations to units of government and solicitations of major donors, a historical society must identify the total financial goal of the fund raising effort. The temptation often exists to underestimate the cost of a large project in hopes that a smaller dollar figure will make the project appear more achievable.
A society should never present an unrealistically low dollar figure for a project on the presumption that the remainder of the money can be raised later. Returning to donors later for the funds to support the work that was already supposed to have been achieved erodes credibility, now and in the future. Failure to complete a project because inadequate funds were raised is even more damaging to credibility. If a project is divided into phases and funds are raised by phase, that information should be clear at the beginning of the campaign with the phases presented in realistic dollar amounts.
Successful Fund Raising Includes Broadening the Base of Support
A historical society that receives most of its support from one or two sources faces a risk of financial reversal even if that support is generous. Loss or reduction of this narrow support can cause a crisis. Components of a healthy mix of support include membership dues, donations, local government appropriations, earned income, foundation and government grants, and income from endowment or investment accounts.
Every local historical society should take time to analyze its sources
of support and make plans to broaden the base if necessary.
A group with generous benefactors but few members should
plan a campaign to increase membership. A society with
no investment income may wish to designate unrestricted
bequests and memorials for an endowment fund and publicize
this new effort to its members and community. A society
with no grant application experience could explore
Wisconsin Humanities Council mini-grants that have
clear purposes and relatively simple application procedures.
For information contact the Wisconsin
Humanities Council, 222 South Bedford Street, Madison,
WI 53703 (call 608-262-0706 or send an e-mail).
Fund Raising is an Ongoing Activity
The need for financial support continues year-in and year-out. Fund raising does not end with completing a successful campaign or securing a local government appropriation. A historical society can broaden its base of support by recruiting new members at every opportunity, particularly during well-attended public programs or events sponsored by the historical society. Making note of newspaper articles about grants to other non-profit organizations in the community may identify foundations or government agencies willing to entertain applications from the historical society. Reporting on successful projects or events in the society newsletter documents the society's record of accomplishment for future fund raising efforts. Each of these actions is an example of ongoing fund raising activities.
Sometimes a Penny Saved is Not a Penny Earned
The most successful historical societies become active participants in their communities. If a historical society receives a local government appropriation but does not mail its newsletter to city hall because only members are entitled to the newsletter, a penny saved is not a penny earned. If a historical society seeks donations from local businesses but shops for copy paper in the next town because it is ten cents a ream cheaper, a penny saved is not a penny earned.
Fund Raising is Hard Work
Initiating efforts to broaden the base of support, keeping fund raising an ongoing effort and documenting a record of accomplishment represent hard work. However, for many volunteer local historians, the hardest part of fund raising is its most essential element — finding the courage to ask someone for money. Remembering that the request is not for personal benefit, but for the benefit of an organization that serves the community, can help ease the task. It may also help to keep in mind the major league baseball player who bats ten times, makes an out seven times and gets inducted into the Hall of Fame for getting hits the remaining three times. Local historical societies will certainly have a batting average of more than .300 when seeking donations and support.
The preceding seven principles do not constitute an exhaustive list. Instead, they provide some general touchstones that historical societies can use when beginning, conducting and evaluating fund raising efforts. The hard work of improving these efforts can garner new resources to support the service to the public that is the ultimate work of a local historical society.
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