Communicate The Fund Raising Idea

In the next few minutes, you are going to learn the steps to implement a fund raising idea that can raise significant cash within a very short time frame.

If you are involved in any facet of nonprofit fund raising, you can use this technique, to buy or, for example pay off the church organ, add another kennel at the local animal shelter or add a room on to the private school. As opposed to simply asking donors to dig deeper into their pockets, this fund raising idea provides tax and increased income benefits to the donor. Three Steps to Funding Your Project. This fund raising idea involves annuities. Select an insurance agent. Annuities can only be placed by a licensed insurance agent.

Look for agents with the CLU, ChFC or CFP professional designations. I would suggest selecting an insurance agent from outside the organization. My experience is that you are asking for trouble if you try to use an insurance agent who is on your board or active in your cause. Resist the temptation to spread the business among several agents, as you want to keep things simple. Chances are there are several insurance agents to choose from and you don' t want to hurt anyone's feelings. Having been in the insurance business for 35 years, here is my rationale: If any agent within the organization expects to earn the commissions resulting from this fund raising idea, they should have brought the concept to the organization long ago.

Prospects for this fund raising idea are senior members of your organization support group. Communicate the Fund Raising Idea. They should be age 70 or older. Here is a simple outline of the fund raising technique. a. The older the donor is, the greater their benefit. A person donates cash or a highly appreciated asset. b. A portion of the sale proceeds purchases a single premium immediate annuity on the life of the donor. d.

If an asset is donated, your organization sells the property and pays no tax on the sale. c. Your organization keeps the difference and can immediately fund your need. e. The donor also receives a guaranteed life income. The donor receives an income tax deduction, which can be spread over 6 years if necessary. f. The rate of return that the income represents is normally much greater than they have been receiving. g. Your nonprofit receives immediate cash. The net result is that the donor receives an income tax deduction and increased income benefits.

The agent can assist with presenting this fund raising idea to your constituents. Many types of media can be used to communicate the idea. That is his or her forte. For example, a post on, a mailing your web site, or an audio, a seminar CD outlining the benefits. Mechanically, this is how the entire fund raising idea flows: a. Set Up the Simple Administrative Procedure.

Your organization uses the cash or the proceeds from the donated asset to buy a single premium immediate annuity on the donor. A one- page agreement, which complies with the laws of your state, outlines each party's obligations. b. A simple letter is usually required, signed by the donor, to establish insurable interest. Each month your organization receives a check from the insurance company for each donor. c. The process is very simple. Your organization could endorse these checks over to each donor or you could issues separate checks. It is just a couple of new line items in your accounting system.

You may recognize this fund raising idea as a charitable gift annuity. Summary. Many national nonprofits have gift annuity programs. This is the power and simplicity of this fund raising idea. However, most small nonprofits do not. It is simple, straightforward and your organization receives funds immediately upon the completion of each transaction. Furthermore, national programs do not realize any gain until the person dies and then the gain goes into their coffers, not your organization's.

National gift annuity programs do not fund your program immediately. If you are involved in a charter school, a church or any nonprofit, here's how the numbers could work out. Further, assume that the range of donations is between$ 10, 000 and$ 50, 000, with the average being$ 25, 00 This would bring in$ 250, 00The cost of the immediate annuities will vary by age, but let's assume this cost is$ 125, 00That puts$ 125, 000 in your organization's pocket. Let's assume there are 500 supporters and this fund raising idea applies to just 2% , or ten individuals. This fund raising idea appeals to the average person. Moreover, they get to see the end result of their gift.

The donor benefits financially in two ways: a tax deduction and a guaranteed life income. Your organization receives a large influx of cash quickly to fund a pressing need. This fund raising idea is a win- win for everyone.