Corporation Fund Development

Two approaches to fund development that are considered “traditional” are annual campaigns and client donations. A common form of annual campaign is conducted by the United Way foundation. The textbook defines annual campaigns as being any “once-a-year major fund-raising effort that usually involves direct mail and/or telephone solicitations to agency or program members, friends, volunteers, and clients” (Martin, 2000). The most opportune time for organizations to raise money using this method is toward the end of the year when potential contributors may be looking for a place to donate funds for income tax reporting purposes (Martin, 2000).

Client donations, an activity geared to human service agencies, are made voluntarily by those who utilize the services that the program or agency provides. Under the Older Americans Act, donation policies have been put into place as a way to reduce the client’s sense of receiving charity or welfare. Giving back even the smallest amount to the program from which they receive some type of aid allows the recipient to help in maintaining the service or program (Martin, 2000).

 

Affinity marketing or cause-related marketing and bequest programs are both considered “entrepreneurial” approaches to fund development. With affinity marketing, human service agencies and businesses join forces in their promotional activities. There are several forms that this approach takes, but the two that are seen most often are credit card promotions and sales promotions (Martin, 2000). Each form is rather self-explanatory. Sales promotions deal with donations from a business entity based on specific sales over time. Similarly, credit card promotions are typically set up so that a percentage a cardholder spends each time they make a purchase during a particular timeframe is given to a human service agency or program (Martin, 2000).

 

Bequest programs, commonly referred to as planned giving is a form of fund development that takes place when an individual passes away. A set amount of money, certain bonds and stocks, or specific property is stated in their will to be transferred to the human service agency or program of their choice when they were of sound mind. This approach allows service recipients or relatives of someone who had received some type of aid from a private nonprofit agency to show gratitude for the help they received and ensures that the program will continue so that others may be afforded similar opportunities in the future (Martin, 2000).

 

References

 

Martin, L. L. (2000). Financial management for human service administrators. Needham Heights, MA: Allyn  amp; Bacon. 

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