10 Steps for Fundraising from America
A guest post by Chapel & York.
Fundraisers are always looking for new and accessible sources of funding for their charitable organizations. This is particularly true in the current economic climate. As a general rule fundraisers start locally, then look for funds nationally, and then, if they are raising funds for a suitable project, and if they have exhausted all obvious local and national sources, they look outside their own country.
For charitable organizations in Europe an obvious place to look for funding is other European countries, and from the EU itself. The problem with European fundraising is the different languages and the law, country by country.
An alternative for English speaking fundraisers is the USA. The American philanthropic market is worth trillions of dollars, billions fund organizations outside the USA, the language of America is English and the same Federal law is applied to all 50 States and Washington DC.
The first step is to make sure your US donors get a tax deduction and make sure America is cost effective for your organization. You don’t need an American office, you don’t even need to go to America, but you do need to do things the American way!
Here are the first 10 steps, the essential foundation of your American Fundraising:
- American individuals, corporations and foundations can take advantage of a US tax deduction which allows donors to deduct a charitable donation to a US non-profit from their taxable income and reduce the tax they pay. It’s important because it’s a benefit to the donor.
- If you are not a US non-profit, then to offer a US tax deduction you must partner with a US non-profit, one that supports your work, or you must set one up to support what you do. You must identify the most cost effective route for your organization.
- Will American fundraising be cost effective? Do you have thousands of committed Americans on your data base, e.g. alumni? Do you regularly tour or exhibit in America? Are you an organization genuinely known worldwide e.g. BBC? Are you doing work that isn’t done in or from the USA?
- If you cannot answer Yes to one or more of these questions, find a US non-profit that supports charities outside the USA to work with you.
- If you can answer Yes to one or more of these questions you should consider setting up an American organisation to support you. But first test your US fundraising....
- How to test your US fundraising before you set up a US non-profit. Find a US non-profit that supports charities outside the USA to work with you. You do the fundraising and the US non-profit receives the donations you raise, retains a percentage, and makes grants to you. The donor gets a tax deduction. After two or three years if you are raising $50,000 and more each year it will be cost effective to set up an organisation specifically to support you.
- How can you find a US non-profit that will work with you? Go to www.americanfund.info for partnering opportunities and information. Advantage: no responsibilities. Disadvantage: no name recognition.
- How do you set up a non-profit in the USA? Go to https://chapel-york.com/for-organisations/international-fundraising/ wh… you can access more information on this topic. Advantage: you choose the name so name recognition. Disadvantage: ongoing but fixed maintenance costs.
- US fundraising, where do you start? You urgently need a group of Americans who can tell you how to do your fundraising the American way. Americans are different - a different version of English, different culture, customs, sense of humour, attitudes, etc. So it’s important to test your fundraising on sympathetic Americans first.
- Developing US fundraising. Use the internet - and social media in particular - to identify Americans potentially interested in your work (Prospect Research) and existing supporters who can introduce you to them. Identify foundations interested in your work (perhaps via a database subscription), and submit applications.
About the Author
For further information on fundraising from the USA, please email Chapel & York: helpline@chapel-york.com. They will be happy to answer your questions free of charge.