Revenue Sources
Step 3 Homework
on Federal Cost Sharing Regulations | Step
5 Execute Your Revenue Resource Plan
Step 4 Identify
and Select an Appropriate Revenue Source
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There are many ways to enhance various
existing revenue sources, including the following examples:
| Enhancing Existing Revenue
Sources |
| Revenue source |
Tactics to enhance an existing source |
| Annual or sustaining gifts |
Annual or sustaining gifts Segment by
giving level and create a club or affinity program. Segment
by giving level and apply a more personal technology such
as phone mail or personal solicitation. Segment by giving
level and use a high-end technology like CD/video case
or web cast invitation. |
| Major gifts |
Seek a challenge grant. This is a gift
donated by a person made on condition that other gifts
or grants will be obtained on some prescribed formula,
usually within a specified period of time, with the objective
of encouraging others to give. Hold a seminar or cultivation
event for key staff to meet selected prospects. |
| Planned gifts |
Introduce one or more gift planning opportunities
as an addition to any existing offerings. Plan for an
complete an endowment campaign-an intensive fundraising
effort to meet a specific financial goal within a specified
period of time for one or more major projects that are
out of the ordinary (like the acquisition of an endowment). |
| Foundation grants |
Devote staff or counsel resources in one
of several specific areas of foundation development. Engage
the foundation at the staff level, getting to know them
personally. |
| Cause-related marketing |
Use an impressions analysis (purchased
or donated) to determine the dollar value of a sponsorship
opportunity. The study analyzes the number of visual impressions
available to the sponsor and assigns a dollar value pereach
impression. |
| Corporate giving |
Pursue significant relationship development
with key employees. Involve them with the key leadership
of your organization. Explore your inclusion in their
matching gifts program for employee contributions. |
| Earned income |
Invite members of your board to host a
business lunch for the purposes of brainstorming other
business opportunities for your organization. |
| Unrelated earned income |
Seek ways to relate the income source
to your tax exempt purpose. |
| In-kind |
The Federal regulations allow you to count
as cost share the following institutional in-kind contributions:
unrecovered indirect costs (the difference between the
amount awarded in a grant and the amount that could have
been awarded under your approved negotiated indirect cost
rate); volunteer services (provided by your organization's
professional and technical personnel, consultants and
other labor valued at internal rates or, if not employed
by you, at comparable rates of pay, plus fringe benefits). |
| Supporting organizations |
If you have an organization that gives
time only, encourage it to develop afunding support plan
consistent with the limits of their charter. |
| Benefits |
Underwrite all event costs. Pursue an
event leadership structure that createstiers of funding
for tables, honorees and chairs. |
| State and Local municipalities |
Develop stronger ties with elected officials
and the key members of their staff. |
| Churches and denominations |
Involve pastoral leadership in the creation
and marketing of church-related development programs. |
| Federated funds |
Devote marketing dollars to raising visibility
of your organization to supporting constituents. Direct
mail to mailing list informing of season. |
|
In our example, XYZ organization reviews the 14 revenue sources.
The following shows which revenue sources they can enhance and which
ones they would have to start:
| XYZ’s
existing revenue sources |
New revenue
sources to consider |
Annual
gifts
Foundation grants
Benefit
Earned income
Unrelated earned income
In-kind |
Major gifts
Planned gifts
Cause-related marketing
Corporate giving
Churches or denominations
Supporting organization
State and Municipality
Federated funds |
|
XYZ has highlighted and selected foundation
grants and in-kind existing revenue
sources for the following reasons:
- Funds for operations, projects, programs, Federal cost share.
- Foundations are a good way to express in writing the accomplishments
and history of XYZ
- Both need less than 6 months lead time
- Both have very good ROI
- Foundation process benefits from board member contact
- Foundation process takes advantage of strong CEO skills in relationship
building
- A front door/back door approach is essential to success. The
front door requires fulfillment of all application requirements;
the back door infers relationships with the foundation staff and
directors.
Here are the reasons XYZ chooses to start major
gifts and corporate giving as
new revenue sources:
- Funds for operations, projects, programs, endowment,
capital, in-kind and loaned services
- Good synergy with in-kind giving as corporate solicitations
for cash can be negotiated into in-kind donation
- Company prospect are headquartered nearby
- Both take less than 6 months lead time
- Both have very good ROI
- Both rely on senior leadership’s ability to communicate
vision, ask and close
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Step 3 Homework
on Federal Cost Sharing Regulations | Step
5 Execute Your Revenue Resource Plan
