3 Ideas to Think Outside the Fundraising Box
Have you noticed that the stock market has been topsy turvy? Well, investors have noticed as well, and are accordingly turning to alternative investments.
Those alternatives look like things like:
· Self storage facilities–$22 billion in sales
· Building student housing—9% annual return
· Cell phone towers–$3,000/mo potential income
· Parking lot meters—8% annual return
It’s a wise adjustment made by the astute investor.
On the other hand, when looking at the ministry world, most fundraisers tend to think about one way to fund their ministry: cash. Most ministries even the largest ones, all tend to have multiple ways to get the same thing: cash. So it looks like credit card, EFT, appeal letters, urgent grams etc. It’s a misguided approach.
In truth, cash represents only about 10% of the average net worth of an individual. On the other hand, 90% of the wealth of an individual lies in non cash assets—things like real estate, cars, trucks, inventory and closely held business interests.
How can a fundraiser think differently about raising money? Here are 3 ideas:
1. Think about revenue creation. One ministry we work with went out and raised about $150,000. With that they bought land, erected a billboard, sold spots and now the ministry is expecting about $10,000/mo in annual revenue.
2. Consider non cash giving. More than ever non cash is a bigger opportunity to capture. Non cash assets can be as mundane as cell phones, but can include cars, trucks and boats as well as real estate. You’ll need a partner to help you liquidate these assets. Our preferred partner is www.iDonate.com.
3. Consider major donors who contribute dividend declaring closely held stock. This strategy is by far the most complicated, but works much like an endowment. Often a ministry will have a relationship with a business owner. That business owner may be willing to donate a few percentage points of his stock ownership (non voting) and let the distributions flow to the ministry. One ministry made the request of such a donor. The donor donated more than $1 million dollars of stock. Within a couple of years, the donor repurchased the stock from the ministry and produced a huge gift to the ministry. Again, you’ll need help, but that’s the work we do. thesignatry.com.