CCS Fundraising

Type: Article

The recent headlines surrounding an increased focus on reducing the cost of higher education through the Biden Administration’s American Families Plan, along with the launch of the Higher Education Emergency Relief Fund (HEERF), have spiked curiosity among institutional leaders on how this could affect their overall fundraising strategy and donor messaging.

Private philanthropy is, and will remain, a crucial component of higher education institutions’ funding mix as it helps ensure overall access, excellence, sustainability, and growth. Philanthropy has historically complemented and accelerated government funding, allowing institutions to focus private dollars on ensuring student success through investment in programs, buildings, and people to help build the workforce of the future.

For years, private philanthropy has decreased barriers to educational access through scholarship support. Philanthropy, however, is so much more than scholarship dollars; it is a pipeline to innovation that allows institutions to implement bold new approaches that accelerate contributions to the social, technological, and economic growth of their communities. This steady revenue stream into scholarships, buildings, programs, and people allows institutions to fulfill their mission, regardless of what state and federal funding provide. And to be sure, these amounts fluctuate so while it might appear that the system is flush today, tomorrow might present a dramatically different view.

The foundation of successful fundraising is still based on the trusting, authentic, and respectful relationships you build with your board, your community, and your donors. Below are some high-level insights and key messages to consider when conveying the gap in funding and the continued need for private philanthropic support.

1. Unmet student need is greater than just the cost of tuition.

The total cost of attending college today goes far beyond yearly tuition. In addition to the cost of classes, students must factor in textbooks and school supplies, housing, food, transportation, and personal expenses. Students working full or part-time jobs in addition to attending school also have to calculate the benefits and trade-offs of earning an income to meet their financial needs while earning a degree or certificate to pursue the career of their choice.

The headline benefit of many public and government funding proposals is free or subsidized tuition, seemingly removing the need for student scholarships at two and four-year institutions. Advancement offices will be well-served to remind donors that philanthropy amplifies the work that government funders hope to accomplish by addressing the wraparound support that students need to be successful inside and outside the classroom.

It is important to acknowledge that a student’s timeline to completion can vastly vary, as many are balancing work, a family, and other personal responsibilities. Since institutions know their students’ needs best, scholarship dollars can be redirected to the most vulnerable community members or those who fall outside of public funding parameters, such as community college students enrolled in workforce training programs. In many cases, unmet need will still be a major challenge facing college students even with free or reduced tuition.

For one CCS higher education partner, the cost of tuition is a fraction of the total cost analysis facing the 60,000+ student body at the community college. Innovative scholarship funds and programs have been developed in recent years to creatively lower students’ financial burdens and are growing rapidly as donors see that need and impact clearly align with helping students achieve their academic goals. While having government funding absorb tuition fees would be a significant benefit to the students, transferring savings to another financial priority still doesn’t resolve the average unmet need of over $9,200 annually.

2. Share with donors the need to innovate and implement bold new strategies that will directly impact students.

Regardless of whether scholarship dollars are going to be as essential to future students as they have been to current and past students, the need to provide funding to stay up to date on emerging programming, technologies, and resources will remain crucial to ensure students are career ready and employable. Consider what the in-demand industries are in your region and what programs your institution has in place that directly funnel graduating students into these key industries. Are there programs that can and should be enhanced to better prepare graduating students for newly emerging industries? Continue to remind the donor about the role your institution plays in your community’s economic growth and share the success stories of your students.

3. Keep student stories front and center.

People connect with stories, and donors are no exception. We also know that people give to people. With every opportunity you have to get in front of a donor, whether that be announcing a new program, providing impact updates, or simply saying thank you, the act of including an individual student’s journey at your institution brings an irreplaceable human element to your work. Encourage students to go beyond the standard background information and share the hopes and dreams that lie ahead for them! Everyone loves to feel inspired by the next generation and the work your institution is doing to make their big dreams a reality.

4. Philanthropy can ensure long-term security of institutions.

Federal and state dollars fluctuate every year, usually with strict policies or timelines in place for specific spending requirements. Private philanthropy ensures flexibility and consistent resources are available well after federal dollars are spent. In light of this, consider the following forward-thinking opportunities:

  • Grow Your Endowment: Building your endowment by asking donors to leave a legacy that will allow for your institution to carry out your mission for current and future generations is a strong ask. By focusing on endowed gifts, you will show the community that you are thinking long-term and building an annual stream of income that can support the institution, its programs, and its students in perpetuity. The strength of your endowment also shows the financial health of your institution. The larger your endowment, the stronger you will be perceived as an institution.
  • Meet the Unexpected Needs of Students: As we experienced during the COVID-19 pandemic, new student obstacles emerged, and philanthropy created opportunities to solve those challenges. The higher education landscape is fluid, and the economy and other external influences change the arc of stories all the time. Through the flexibility and immediacy provided through private philanthropic dollars, emerging student needs can be addressed quickly and on an ad hoc basis. Private dollars allow institutions to put the student first, which ensures a stronger opportunity for successful outcomes.

Philanthropy is here to stay. While ambitious public funding proposals to support higher education institutions evolve over the coming months, we must all remain focused on cultivating the private funding sources that will sustain our work. We must continue to meet students’ needs and help them achieve their goals.

At the same time, being proactive and flexible with your messaging is necessary. The heightened focus on student support through greater public resources puts higher education institutions in a positive spotlight but also requires institutions to be thoughtful about communicating the value of scholarship support and private support for higher education needs more broadly. Communicating the well-known value proposition of your institution’s mission will ensure its future long after public dollars are spent.

One year ago, CCS purposefully affirmed our commitment to racial justice and our efforts to foster a more inclusive and equitable world. The senseless killings of George Floyd and countless other Black lives ignited the desire to firmly stand in solidarity with our colleagues and communities of color. Systemic racism and discrimination have no place in our society. We actively condemn violence and aggression directed at anyone based on their race, nationality, religion, sexual orientation, disability, or gender.

Today, CCS remains dedicated and steadfast in pushing this commitment forward. While there are no words to describe the anguish and frustration as these injustices persist, CCS continues the work to create change both within the firm and beyond. We are a firm comprised of passionate, mission-driven people dedicated to making the world a better place, and we recognized that this work needed to start from within.

An important first step in advancing our commitment was creating our DEI Mission Statement to establish CCS’s core values. Through inclusive and challenging conversations amongst leadership and staff, CCS developed our guiding principles to hold ourselves accountable for creating a respectful, inclusive, and equitable company culture for all employees. Leadership listened, adjusted, and committed to growth to stimulate this cultural change.

As a firm, we also acknowledged that we have much to learn on this journey and decided to partner with professional consultants with expertise in areas related to diversity, equity, and inclusion. We began our partnership with Nadia Jones of Culture Cipher, who led us through the development of firm-wide training and education, as well as guidance in the key early decisions on our DEI journey. CCS also partnered with Holistic to conduct interviews, small group conversations, and a firm-wide survey to understand key factors of job satisfaction, growth, and belonging. Additionally, Holistic underwent a deep analysis of our recruitment pipeline to help us understand opportunities for more inclusive practices from the moment a team member applies.

Resulting from these initial steps forward, CCS committed to taking specific, measurable actions in the areas of:

  • Fostering leadership training and growth through regular conversations and meetings to prioritize DEI as a principle interwoven throughout our operations.
    • CCS overhauled its governance structure with new Board of Directors made up of nearly 50% women.
    • This new Board of Directors will also include two new external independent Directors – with diverse candidates already identified and their onboarding imminent – prompted by the intention to bring about greater perspective and diversity to the firm’s governance.
    • All CCS Partners have engaged in a series of trainings on centralizing DEI to all aspects of our business, from recruitment to retention and how we serve our clients. Trainings will continue through the end of the calendar year and beyond.
  • Valuing inclusivity by encouraging the development of several internal outlets which offer a supportive and diverse network of voices for the CCS community.
    • The CCS DEI Working Group is comprised of 24 dedicated employees across all staff levels, geographies, and backgrounds. The group meets regularly to guide CCS’s work across three priority areas, including: internal enhancements, client services, and external engagement.
    • 44% of CCS staff are members of our Employee Resource Groups, which include the People of Color and Multicultural Network, Aspiring Allies, PRIDE at CCS, and Working Parents.
    • We have hosted a series of firm-wide safe space listening sessions, which provide employees with a forum for discussion and learning about sensitive topics.
    • In addition to our firm-wide efforts, we formed four regional DEI committees throughout the firm to explore key concepts, engage in honest talks, and continue our growth.
  • Strengthening recruitment strategies across new avenues of inclusive hiring and upholding the re-affirmed company values, making this a desirable working environment for potential employees of all backgrounds.
    • Through a concerted effort to change our demographics, 32% of new hires brought into the firm in 2021 identify as BIPOC.
    • CCS began the search to recruit a Vice President for DEI, who will lead, coordinate, and facilitate CCS’s efforts in DEI moving forward. Encouraging progress is underway with a diverse pool of candidates.
    • A series of anti-bias trainings has been tailored to all staff involved in recruiting.
  • Prioritizing professional development by ensuring equitable access to training, tools, and leadership opportunities that promote career growth.
    • CCS staff across all levels and tenures have been invited to participate in educational sessions on topics such as anti-racism and unconscious bias. These sessions offer opportunities to learn from speakers from an array of multicultural backgrounds. Over the past year, CCS has hosted 8 of these firm-wide sessions.
    • Increased mentorship and coaching by leadership is a priority to foster an inclusive and supportive work environment.
  • Creating a vibrant client community by developing tailored resources for underserved nonprofits and offering our services to those most in need.
    • Our DEI Working Group is currently piloting the launch of a free public resource library and expanding pro-bono service to benefit this community.
    • The group also implemented a regular set of DEI-focused planning standards for webinars, publications, and communications that reflect our values and those of the diverse client base we serve.

We have made important and necessary progress this past year, but we recognize this is an ongoing journey, and our work must persist.

We will continue to develop resources and assess our operational practices to foster advancement and a positive environment for all employees, regardless of race, color, religion, gender, gender identity or expression, sexual orientation, parental status, national origin, different abilities, age, veteran status, or other invisible traits. We know that as a firm, we are only as valuable as our people and that there is strength in diversity.

CCS commits to learn and grow through compassion, humility, and accountability as we partner with organizations across the nonprofit community and beyond.

Click the video below for our DEI Mission Statement from the CCS team. 

Developing a comprehensive prospect list bespoke to your organisation and aligned to your programmes is a critical part of enabling success.

Given the changing economic and social circumstances nationally and internationally, it may be necessary to revisit your prospect list to ensure that you are focusing resources and time on those relationships most likely to progress your goals.

Below are five tips to refresh your prospect list…

  1. Re-Visit your Case
    Before you can ascertain if you have the right prospects, it is important to consider your case in light of the evolving environment. Are there changes you need to make to the proposition to reflect recent months? Do current challenges strengthen your plans and if so, how? Conduct a SWOT analysis; take every case element and give thought to the strengths, weaknesses, opportunities and threats that may exist when considering the funding climate for each. In doing so you will be able to prioritise programmes that, in the short term, are more likely to resonate with potential donors.
  2. Develop a Robust Criteria
    List core selection factors for prospects to be included on your list, these may be;
  • Financial ability to support your goals
  • Past giving to your organisation
  • Demonstrated interest in the programme area
  • Track record of philanthropy
  • Relationship with the organisation

Then use this system to refine your prospect list and determine the prioritisation of engagement.

  1. Gather Information
    Your prospect list may have been developed a number of months ago but it is still worth taking some time to research new opportunities with the current climate in mind. Consider:
  • What sectors are more robust now? E.G. software, technology, pharmaceuticals, food retail
  • To whom does this programme matter? E.G. Alumni, corporations, employers, government
  • What similar programmes exist nationally and internationally and what sort of funders do they attract?
  1. Fact Check
    With the economic uncertainty, spend some time  learning how potential funders may have been impacted in recent months. Though there is no exact science, you can use share prices for the year to date or news articles to give a good indication of a company’s performance.
  2. Road-test
    Once you have a refreshed list,  circle back to internal leaders that may be able to help make connections and build relationships. Your main objective should be to secure (virtual) meetings so that you can share your plans and gain insights as a first step in cultivating prospects. Even if you have established relationships you can move them along by asking for calls to discuss amendments to programme prioritisation and renewed areas of focus.

Community is the backbone of society, the heartbeat of philanthropy, and the purpose behind many social and human service nonprofits. The COVID-19 pandemic transformed the way we think about interacting with people and pushed us to explore new horizons of digital communications. As we’ve shared in our recent article about virtual fundraising events, there are many benefits to virtual communication that we should consider retaining after social distancing restrictions are lifted.

In particular, virtual solicitations have been an excellent way to reach a breadth of donors who live far away, have limited ability for in-person meetings, prefer remote communications, or have busy schedules. As you continue with these digital discussions, we’ve put together the following guide to help you refresh your approach to scheduling and conducting virtual visits.

Selecting a Platform

We have learned a few key considerations during our time in a virtual world on selecting a platform. Some questions for your reflection include:

Do you need to reach donors that are geographically spread? If so, consider a Zoom call that requires simple dial or call-in options with a suitable schedule to accommodate time zones.

Is your target generation more interested in in-person meetings? Feel free to simply ask your donor if they have a preference.

Do you want to share something that is location-based? Is this a location that is easy to reach in person? Perhaps you want to show a new wing of your homeless shelter, but don’t want to disturb the individuals staying there. Simply taking a video of the empty space and sharing the video at the beginning of a call can showcase your work without interrupting the privacy of your beneficiaries.

Do you want to foster communication and connection between donors? Should the connection be one-on-one, or as a group? If you would like for donors to connect amongst themselves, consider an in-person event or an avatar-based platform like Event Farm. If you are facilitating one-on-one connection, breakout rooms on Zoom could be a useful tool if you choose to stay digital.

Scheduling a Virtual Solicitation

Scheduling a virtual visit is similar to scheduling an in-person visit. It is important not to discuss details of your visit agenda when scheduling. To avoid this, remind the person that you have some materials you want to share with them during your conversation.

Step One: We just went through a global pandemic, which was a difficult and isolating experience for many. Start off with a personal check-in and show empathy by saying something like:

“This is (your name) calling from (your organization). We are making an effort to reach out to folks right now to make sure they are feeling connected and see how you are doing during this phase of re-emergence. We’ve missed seeing you!”

Step Two: Make the pivot from small talk to business with a phrase like:

“Have you received our emails about updates to our volunteer and services policies, etc.?”

Step Three: After connecting on a personal level you can extend the invitation to have a virtual visit. Consider saying something such as:

“As you know, we are engaging in an initiative here at (your organization) to address some of our pressing needs and we believe (the project that you are working on) will be life-giving to our organization. We are committed to advancing this effort in a way that makes sense for the current circumstances we are facing as a community. I was wondering if you might be interested in having a conversation with me over video call about this initiative? It’s been a nice conversation to have with folks, particularly at this time when we are so focused on what’s next after the pandemic.”

After Scheduling

When prepping for the visit, consider the following.

Materials should be shared with prospects prior to the meeting. It is ideal to mail the prospect the materials, so they have a hard copy to look at with you during the visit. This is also an opportunity to send a gift, logo items, or other treats. If you are unable to mail materials, you can send a “PDF packet”’ via email and/or a link.

Send a follow-up email to the scheduled prospect to confirm the date and time and include the details to call into the meeting. For some people, this may be their first time participating in a video conference. Screenshots and step-by-step instructions are a helpful resource to provide. Create a backup call-in option in the event the video conference cannot be accessed.

Conducting the Virtual Solicitation

You can conduct a virtual visit the same way you would an in-person visit. Stick to key best practices:

Open with small talk before transitioning to the case.

Present the case. Be sure to focus on your mission, the story of your organization, and your current needs.

Introduce the request for support. You can do this by demonstrating the credibility of your fundraising ask and your enthusiasm for the support you’ve received thus far.

Make the ask by articulating a specific number. Feel free to share your screen and show them the gift table for illustrative purposes. Finally, pause to give them time to process the request.

Handle their response. Some potential reactions could include articulating understanding for their financial situation, expressing gratitude for their generosity, or explaining the methods of executing the donation.

Keep timing in mind. Build in time at the beginning of the meeting for technical issues and aim to keep the overall timeline for the visit to no more than an hour. Finally, schedule a time to follow up with the donor.

Success Stories

Social and human service nonprofits across the United States have developed innovative digital communications strategies, including cocktail hours for spread-out communities, video tours of new building construction, and one-on-one video meetings with individuals who have been hard to reach for years.

In particular, one human services nonprofit in the Intermountain West offers marginalized women employment, career guidance, and life skills. Despite not having a background in major individual giving, this organization has had tremendous success through entirely virtual briefing and solicitations. They are on track to achieve their benchmark goals and are 38% toward their campaign goal in one year. The key to their success was keeping the mission and vision of the organization at the forefront of every conversation. The CEO and Development Director tailored conversations with donors to the donor’s interests – for those who appreciate data and results, they focused on current outcomes and the return on investment the campaign would have in making a difference in the lives of women. For donors who are compelled by stories, the team highlights individual women served and shares the impact the organization has on each individual to help them gain self-sufficiency.

Another social services organization on the West Coast approached virtual solicitations differently. This organization offers a range of therapeutic services on a beautiful campus, where they held a drive-through carnival barbeque complete with prizes, dinner, a take-home swag bag, and a band. Children were able to shoot hoops with a take-home basketball and have a family picture all from their cars. Invitees included big-ticket buyers and sponsors for the event. The event also acted as a cultivation touchpoint before a virtual major gift ask, and thus offered a great conversation starter during the solicitation.

We hope that your organization finds similar success as you refresh your virtual meetings approach post-pandemic.

An Annual Fund is a mechanism for encouraging parents, past pupils and volunteers to make regular gifts to your school. This guide provides practical tips for establishing or growing your Annual Fund, including adaptions you may want to consider in light of COVID-19. It is particularly aimed at UK schools, but much of the content is relevant for international schools and other fundraising institutions.

For many schools, the Annual Fund can become the institution’s lifeblood; to enable them to attract and retain the best teachers, provide financial aid or scholarships, enhance IT systems and maintain and improve facilities.

A successful Annual Fund appeal is predicated on four fundraising elements:

  • Case
  • Leadership
  • Prospects
  • Plan

Each is integral to reaching — or even exceeding — your Annual Fund goal. Planning should take place before or during the summer months, so that come September, the infrastructure is in place to jump right in!

Case for Support

The Annual Fund case for support should provide a compelling rationale for how gifts and pledges will be used to offer your pupils the best possible education. CCS believes that a strong case includes data, images, and testimonials.

  • Data: Many donors appreciate the use of data to communicate how your school is earning and spending money. What are your school’s current sources of revenue and expenses? How much do you provide in financial aid or scholarships each year? What is the average gift to the Annual Fund and what percentage of families are participating? Presenting hard data supports the role of the Annual Fund in a clear and engaging way. Simple infographics can be particularly helpful at communicating data in an easy to understand manner.
  • Images: Pictures of pupils involved in projects or extracurricular programmes at school is a great way to visually support your case. Photographs should capture various aspects of student life to showcase all your school has to offer.
  • Testimonials: Personal testimonials from pupils, past pupils and parents underscore the impact that your school has on its community. Quotations should be incorporated into the case to provide a personal touch that will resonate with donors.

Once you have developed your draft case, test it with prospective supporters to ensure it has the desired impact. Achieve this by seeking feedback from a number of parents — ideally through one-on-one or small group meetings — and incorporating their ideas.

The case for support should be finalised during the summer, once all Annual Fund data from the previous academic year has been generated. This way your school will be equipped to share the case with potential donors at the onset of the upcoming academic year.

Leadership

A successful Annual Fund needs great leadership. CCS recommends that every Annual Fund effort involve volunteer leaders by having a chair, or multiple chairs, to work closely with the development office to spearhead the fundraising.

Annual Fund chairs are frequently current parents who are well-known and respected members of the school community, are committed to the school’s vision, and have the leadership skills and influence to ensure a high level of activity and momentum throughout the year. The chairs will serve as ambassadors of the Annual Fund. In essence, they are the face and voice of the appeal.

From CCS’s experience, working with chairs as you would manage hired staff is highly effective. We recommend establishing a clear role and plan, and providing training. People respond positively to a structured environment, and your volunteers will be no different. For example, the role description for a chair might include:

  • Endorsing the case for support for the Annual Fund
  • Being a visible and vocal advocate for your school and the Annual Fund
  • Attending and hosting cultivation events (see below)
  • Helping identify and approach potential donors
  • Making their own personal commitment to the Annual Fund

Ensuring the chair’s role is articulated from the outset, and providing them with the tools they need to be successful, will put your school in the best position to reach your targets.

Prospects

The majority of a school’s Annual Fund is typically comprised of gifts from current parents and Governors/Board members. Therefore, special emphasis should be placed on engaging with these constituencies at the beginning of the academic year (with preparation occurring over the summer). Events provide an effective platform to achieve this.

Depending on the current situation with COVID-19 restrictions, gatherings could be in-person or held virtually. Below are three ideas to kick off the year:

  • Welcome Back Breakfast or Online Social for Current Parents: This is an exciting opportunity to engage parents at the beginning of the year and showcase your school’s vibrant community. Current parents will reconnect and hear from key leadership such as the Head/Principal, senior management, and Annual Fund chairs.
  • Governors’/Board members’ Reception or Virtual Briefing for New Parents: Welcoming new parents is vital. This event is an important opportunity to harness new parents’ enthusiasm about the school and engage them in your culture of philanthropy. New parents will interact with Governors/Board members and one another as well as hear from key leadership.
  • Governor/Board-Hosted Gatherings: Major donors will need additional preparation to ensure that they experience meaningful interactions with school leadership before they are asked for support. Governor/Board-hosted gatherings are a great opportunity to discuss the school with top donors and highlight the impact of their of their financial investments on its future.

To decide on the best structure and format of events, as well as considering the current COVID restrictions, think about your own school’s community and culture. Will parents be able to get to the school for a breakfast meeting or is the location inconvenient? Are there times when groups of parents will already be visiting your school (for example, for a sports fixture) and could a cultivation event be aligned with these to make it easier for people to attend? Should past pupils, or other potential benefactors, also be involved in the gatherings?

When planning the delivery of events, consider proven fundraising principles. Ensure you:

  • Articulate the request for support verbally. Use gatherings to underscore the importance of philanthropy, highlight the impact of gifts and a clear and compelling ‘ask’. For each event, identify who would be best placed to deliver the request — for example, the Head/Principal, the Annual Fund Chair or a Governor/ Board member. (For prospective major donors, you may consider making a specific gift request through a one-to-one in-person meeting/videocall).
  • Provide direction on the gift levels needed to ensure success. Develop a simple ‘table of gifts’ that outlines the number and size of gifts that are required to reach your Annual Fund target. Use this table to share guidance on the scale of commitments that are required. For example, ‘to reach our target we require families to step forward and make gifts of £25, £50 and £100 per month. We are also seeking to identify five families who may consider making an extraordinary pledge of £250 per month.’
  • Share information packs that enable families to make an informed decision. During or after events, distribute ‘take-away’ packets that attendees can read in their own time. Include the case for support and guidance on the Annual Fund target, giving levels, and the date by which the school is hoping to receive a decision.
  • Ensure effective follow-up. For all events, the follow-up is as important as the gathering itself. Develop a plan for ensuring that all attendees are contacted — ideally by phone — shortly after the event to answer questions and to receive a timely decision. This could be achieved with the help of your Annual Fund Chair or other key volunteers.

Finally, remember to plan events well in advance and communicate the dates to parents with sufficient notice to help ensure families are able to attend. If you already have an established events programme, consider how gatherings can be used as opportunities to recognise and thank past donors, as well as cultivating prospective supporters.

Plan

Ensuring your school has a strong and well thought-out fundraising plan is vital to a successful Annual Fund. Spend your spring and summer developing a clear roadmap that enables you to track and drive activity effectively.

There are a number of tools that are helpful for keeping your Annual Fund fundraising on target. These include:

  1. Prospect tracking chart, or a donor pipeline, which helps you prioritise the families that you are asking for support, ensuring that your school is spending time and energy building relationships with parents who are more likely to make a substantial gift.
  2. Progress report, which is typically a one-two page document that captures the recent gifts and underscores the priorities and immediate next steps. When used effectively, this tool helps fundraisers get school leadership and key volunteers behind the Annual Fund efforts and flag any challenges early to ensure corrective action can be taken.
  3. Timeline with milestones, which enables you to track progress against your plan. Importantly, the timeline can also help fundraisers to drive decisions and encourage families to confirm their commitments before specific dates.
  4. A GDPR-compliant database to store your donor records and donations, including a way to track opt-ins for fundraising communications, store Gift Aid forms, capture conversations with potential donors and run different reports to pull out the data you need to analyse your Annual Fund progress.

If you are already securing significant funding from parents and Governors/Board members for your Annual Fund, consider expanding your plan to involve past pupils as well — including targeted events, a tailored case for support, and recruiting alumni as Annual Fund chairs.

Remember, effective Annual Fund plans include any necessary preparation and follow up. You want to leave your donors feeling proud to have made a gift to your school and inspired to make one again.

Having a clear and compelling case, leadership involvement, an engaged pool of prospective donors, and a comprehensive plan are key elements for a successful Annual Fund. With these tools, your school’s Annual Fund is poised for success!

If you are interested in learning more about how to prepare your School for next academic year’s Annual Fund then please feel free to contact us directly.

The Biden Administration has begun to move in earnest to draft and pass new tax legislation that could dramatically affect the giving landscape in America. Though we do not expect new legislation to pass until the fall, it is important for fundraisers to pay attention to the proposals. Biden’s proposed changes may affect how your donors plan their charitable giving. This article provides an overview of the potential implications of tax reform on charitable giving, along with guidance for fundraisers looking to discuss these matters with their donors.

How Proposed Tax Policy Changes May Affect Donations to Nonprofits

Click here to download a PDF version of this article and an extended briefing on specific tax proposals to watch.

The tax policy proposals contained in President Joe Biden’s American Families Plan and Made in America Tax Plan, along with Senator Bernie Sanders’ proposed For the 99.5% Act, have made headlines in recent weeks. There isn’t one quick answer for how these tax proposals will affect donations to nonprofits.

On one hand, higher taxes lead to less cash on hand to donate. The Biden Administration’s proposals would raise income and capital gains taxes on American taxpayers making more than $400,000 per year.

On the other hand, the incentive to give increases as tax rates rise. When tax rates go up, charitable giving becomes more attractive since it often allows donors to reduce the amount of taxes they will pay. The illustration below demonstrates how charitable giving becomes more tax-efficient or “cheaper” for wealthy donors after an income tax increase.

Table showing that incentives for charitable giving increase when tax rates go up. For example, if Jane is in the top tax bracket, donates $100,000 to charity, and claims a tax deduction, that gift will "cost" less to Jane under a higher tax rate. Under a 37% tax rate, she saves $37,000 in taxes if she deducts her $100,000 charitable gift. Thus the actual cost of the $100,000 gift to Jane is $63,000. Under a 39.6% income tax rate, she saves $39,600 in taxes with the $100,000 deduction and the gift costs $60,400.

Complicating this is the fact that during his 2020 presidential campaign, President Biden expressed support for limiting charitable deductions such that taxpayers making more than $400,000 per year could only deduct to a rate of 28% (as opposed to 39.6%). This would mean that in the example above, Jane could only save $28,000 in taxes rather than $39,600.

However, the 28-percent-cap provision did not appear in the White House’s American Families Plan released in April 2021. Amid uncertainty as to whether this 28-percent-cap could show up in future legislation, Dan Cardinali, CEO of Independent Sector, stated that the national coalition of charities and foundations “will continue to urge policymakers to exclude the charitable deduction from any future efforts to introduce caps on itemized deductions.”

In addition, the estate tax changes proposed in Senator Sanders’ For the 99.5% Act would make more estates eligible to be taxed and increase estate tax rates. These measures might encourage donors to give by bequest or deploy other gift planning vehicles to avoid paying new estate taxes.

How Big of an Influence Does Tax Policy Have on Giving?

Tax savings are more of an incentive than a motivator for charitable giving. Individuals give to charity for complex and unique reasons. Decades of academic studies and historical tax data show that donors respond to incentives like the ability to itemize charitable deductions.[1] Yet research also suggests that donors are primarily motivated to give by an organization’s mission and impact.

CCS has interviewed thousands of donors in feasibility studies since 2011. In more than 20,000 of these interviews, CCS asked about the donor’s overall motivations for donating to charity. Donors most frequently cited that they are motivated by the impact of their gift and by a belief in helping others. Receiving an income tax deduction was the least frequently cited motivator for giving.

Similarly, the U.S. Trust Study of High Net Worth Philanthropy found that among wealthy donors, tax benefits ranked tenth on a list of 15 factors for making charitable decisions. Only 17% of donors said they always consider tax benefits when making charitable decisions.


Going forward, it will be interesting to see how individual giving rates are influenced by the universal charitable deduction of $300 available to all taxpayers in 2020 and 2021 as a result of the CARES Act. For now, we know that tax incentives do influence a sizeable portion of donors, but that they are far from the most common motivator for charitable giving.

Some sectors and gift types are more likely to experience volatility with the shifting tax landscape. Dr. Russell James III, a Texas Tech University Professor, found cash gifts to education are two times more responsive to tax price compared to cash gifts to religion. In addition, gifts of stocks are ten times more responsive to tax price than cash gifts to education.

Donor Relations Amid the Uncertainty

Many professional advisors estimate that Congress will finalize tax reform legislation this fall. In preparation for the proposed changes to the tax code, nonprofits can and should begin talking with donors about how the changes affect donors’ considerations for making a gift.

In a climate of uncertainty around tax policy changes, we advise fundraising professionals to:

  1. Read. Tax changes will be well covered by the media. Stay apprised of policy news via nonprofit-focused organizations like the Chronicle of Philanthropy, Independent Sector, and National Council of Nonprofits; national newspapers; and tax policy think tanks.
  2. Consider building a relationship with professional advisors to help with more complex giving situations. Nonprofit professionals do not need to be tax or legal experts, and in fact, cannot offer direction on either topic. By working with professional advisors like estate attorneys and financial planners, fundraisers can develop a high-level understanding and equip themselves with the vocabulary to recognize and suggest ideas that the donor might bring to their own tax and estate attorneys.
  3. Educate donors on gift planning vehicles. What assets and which vehicles to use to make a gift matter. Think beyond cash gifts to assets like stocks, real estate, business interests, or giving vehicles such as charitable trusts, annuities, and bequests. You can help a donor save enormous sums of money by pointing them to the correct combinations.
  4. Always keep your mission front and center. Tax incentives influence donors’ giving plans and can drive urgency and action when policy changes are on the horizon. Still, it is important to keep in mind that donors give for many interconnected reasons and tax benefits are often not their primary motivator. Center the giving conversation on the difference that the donor’s gift will make to your mission.

Click here to download a PDF version of this article and an extended briefing on specific tax proposals to watch.

Notes

[1] For historical information on tax incentives’ influence on charitable giving, see these resources recommended by the Giving USA Foundation: Charles Clotfelter, Federal Tax Policy and Charitable Giving, University of Chicago Press, 1985; Charles Clotfelter, “The Impact of Tax Reform on Charitable Giving: A 1989 Perspective,” National Bureau of Economic Research Working Papers, 3273, https://ideas.repec.org/p/nbr/nberwo/3273.html; John Peloza and Piers Steel, “The price elasticities of charitable contributions: a meta-analysis,” Journal of Public Policy & Marketing, 2005, 24(2), 260-272; Gerald E. Auten, Holger Sieg, and Charles T. Clotfelter, “Charitable Giving, income, and taxes: An analysis of panel data,” The American Economic Review, 2002, 92(1), 371-382; Richard Steinberg, “Taxes and giving: New findings,” Voluntas: International Journal of Voluntary and Nonprofit Organizations, 1990, 1(2), 61-79; Christoper Duquette, Is charitable giving by nonitemizers responsive to tax incentives? New evidence,” National Tax Journal, 1999, 195-206; Nicholas Duquette, “Do tax incentives affect charitable contributions? Evidence from public charities’ reported revenues. Journal of public economics, 2016, 137, 51-69.

Sources

We are grateful to the following sources used to inform this article and the accompanying briefing.

This piece has been prepared for informational purposes only and is not to be construed as tax advice. Individuals should consult their accountant or tax advisor with regard to such matters.

In the wake of the COVID-19 pandemic, many charitable organizations have seen a significant increase in online giving – and Catholic parishes and organizations are no exception. In 2020, religious organizations recorded a 27% increase in gifts made digitally. Online giving now represents 18% of total giving to religious causes.

Many may be asking themselves, “Why is this shift important to note?” For parishes specifically, this shift towards online giving, and more broadly online engagement, is important to recognize as a cultural shift within the Catholic church. In 2020, across the world, parishioners’ primary form of engagement with the church was through virtual worship and fellowship. According to an August 2020 Pew Research study, since the start of the COVID-19 outbreak, 28% of American Catholics who regularly attended Mass reported giving less to their parish as they shifted to virtual worship. This is 10 percentage points higher than all other denominations detailed within the study.

Why Invest in Online Giving?

As we continue to navigate the uncertain waters brought on by the COVID-19 pandemic, many parishes will continue to balance virtual and in-person engagement. With this in mind, it is all the more imperative to consider how to best encourage parishioners to remember their weekly offertory without the physical reminder of the passing of the plate or basket. Maybe your parish has yet to introduce online giving channels to your parishioners, or maybe you know more can be done to increase online giving at your parish. Regardless, there are a number of reasons parishes should invest time and attention to promoting online giving – and they’re not just financial.

  1. Stewardship involves every aspect of our lives – our time, talent, and financial treasure. Online giving channels enable parishes to meet parishioners where they are in their lifestyle and engagement habits. We spend a significant amount of our time and our resources online today. Online giving is another way that parishes can invite parishioners to share in parish life, in a simple and efficient way.
  2. Younger generations give online, and they want to give to their places of worship. A 2018 Blackbaud study found that millennials prioritize charitable giving to their place of worship above all other causes. Millennials also primarily make contributions through an organization’s website or their social media channels. Promoting your online giving platforms – and ensuring they are efficient and up to date – is an important way to engage with younger generations of parishioners.
  3. Online giving offers stability and consistency to parishes. Online gifts – especially automated recurring weekly or monthly contributions – provide more predictability and stability for parishes. They are also easier to record and more secure to process. Staff and volunteer time saved from traditional offertory collections can be redirected to other stewardship and ministry activities as a result.

How to Elevate Online Giving in Your Parish

Ready to enhance and increase your online giving? It may be easier than you think. Consider activities across three key areas to engage your parishioners: Sunday Mass, printed communications, and your website and digital media.

  1. Sunday Mass:
  • Include reminders about stewardship and giving in the announcements and, where appropriate, preach on stewardship in the homily and pray about stewardship as a parish.
  • Ask a parishioner who gives online to share their experience during the announcements or during the offertory collection.
  • If Mass is live-streamed, include a scrolling banner that shows the link to your online giving platform.
  • Host an opportunity following Mass for volunteers or staff available with laptops to help parishioners set up online contributions and walk them through the process.
  1. Print Communications:
  • Promote online giving in your bulletin. Include instructions on how to set up online recurring donations.
  • Consider sending a mailing to your parishioners inviting them to set up online offertory contributions. If they already give online, ask them to set up recurring donations if they haven’t done so already.
  • Put up posters or flyers in your gathering spaces with instructions on how to make donations online.
  1. Digital Media:
  • Review your website and make sure the donation page or link is easy to find. Consider including a banner or “donate” button in a prominent place on your homepage.
  • Create an email campaign to encourage online giving and provide tips or support. This can accompany a hard mailing as well.
  • Promote your online giving platform and donor testimonials on your Facebook page and other social media.

Fostering Fellowship Through a Giving Day

Regular online giving encourages longer-term stewardship and engagement with your parish. Another way to encourage digital engagement is through giving days – digitally-driven events dedicated to sharing stories of stewardship and generosity.

CCS is proud to be a sponsor of the giving day #iGiveCatholic because of the difference it makes in advancing the church virtually. #iGiveCatholic is a giving day that brings together the Catholic community to give thanks and give back on #GivingTuesday each year. For the dioceses, parishes, schools, and ministries that set up a giving page with #iGiveCatholic, the experience is about so much more than raising funds for important projects. It is also an experience in feeling connected to the universal church beyond the physical bounds of their community.

For example, participating in #iGiveCatholic was no doubt a financial success for St. Mark Catholic Church and School in the Diocese of Boise. The parish and school raised $77,225 from 172 donors during #iGiveCatholic in December 2020, surpassing their original goal of $30,000 and their subsequent challenge goals of $50,000 and $70,000. It was simultaneously a special experience for members of the St. Mark community to come together in this way. Logan Kimball, St. Mark’s Director of Development and Finance, wrote to #iGiveCatholic: “Participating in #iGiveCatholic helped us build community, engage with one another, and raise funds to build up our parish and school – both of which aid in bringing the Good News of our Lord out into the world. So, basically, we helped change the world and all of human history by the ripple effects created through our generosity!”

For many who participate in #iGiveCatholic, participating in the giving day is an opportunity to connect to a larger Catholic community. As Sr. Draru Mary Cecilia, Executive Director, and Sr. Nancy Kamau, Director of Development at the African Sisters Education Collaborative (ASEC) wrote to #iGiveCatholic: “Giving Tuesday is a competitive day and can feel lonely, but with #iGiveCatholic we are participating on a platform with people who have the shared values of our faith.”

Taking steps to elevate online giving at your parish can be a way to expand your parishioners’ experience of stewardship, strengthen the stability of your operations, and find connection with the wider church. For more resources and tips on fundraising for Catholic causes, visit CCS’s Insights page.

Annual fundraising is the lifeblood of many independent schools. The generosity of alumni, families, faculty, and staff bridge the gap between tuition and operational expenses. Those who direct their philanthropy toward a school’s annual fund often have directly experienced its impact. So, why, with a distinct donor base and a clear need, can annual fundraising sometimes feel like an uphill struggle for independent schools?

Is it the annual campaign’s repetitive nature leading to fatigue? Or does it lack the energy and prestige of a capital or endowment campaign to excite donors?

CCS Fundraising has supported many independent school clients on a journey to reinvigorate their annual fund campaigns. Most often, a renewed focus on the core operations of a school’s development efforts will breathe new life into a flagging annual fund. By reenergizing development strategies, plans, teams, operations, and donor communities themselves, the CCS approach can help move annual fundraising beyond a series of repeated milestones and toward a cycle of success.

1. Allow Time for Robust Planning

The first step is to begin planning for the campaign well ahead of the fiscal year start. This planning process goes far beyond changing the date of existing plans. It involves a deep dive into performance data for the current year, understanding donor trends, identifying which appeals were most impactful, and comparing these metrics year-on-year. Planning for the next fiscal year should begin during the summer term and build on the data analysis you’ve been conducting throughout the year. Start by analyzing your data to answer the following questions:

  • How has your major gifts program performed and what does this mean for your portfolio(s) of top prospects?
  • What giving trends can you spot for each constituent group and how will this influence how you solicit them next year?
  • What commonalities can you find in your pool of newly acquired donors and how will this inform your stewardship approach?

2. Refine Your Ask

Next is a full review of the case for support. Though your core fundraising needs may feel unchanged, this is a new academic year with a refreshed community. Identifying the new and emerging needs of students, faculty, and the campus they share takes a thoughtful eye and a creative touch. Draw on the strength of multiple community voices to carry forward a message that maintains the urgency of the moment and reinforces the annual effort as one that demands everyone’s engagement.

3. Thoughtfully Evaluate Your Communication Channels

Ensure that your message is received by sharing it through the most effective communication channels. The Class of 2021 may never own a checkbook or listen to their voicemail, but they may give by Venmo in response to an Instagram story. Understanding how such recent graduates choose to give in contrast to their parents and grandparents is essential to ensuring that your appeals reach and resonate with each unique donor group.

4. Balance the Traditional and Contemporary

Though each year of the annual campaign must be approached uniquely in order to maintain and build upon momentum, this should be done with a mindful eye toward history. Balancing tradition and nostalgia in equal measure with the present moment helps engage the breadth of your community.

It is therefore necessary to understand how each generation of donors relates to your school and to segment and sequence your annual messaging accordingly. This will lead you to a communication plan for the annual fund that goes far beyond a series of appeals toward a sophisticated and donor-tailored cultivation schedule of communications and events which balances the new with the old.

5. Rally Your Team

The not-so-secret ingredient of any successful annual fundraising campaign is an engaged and energized development team. United in purpose around a common set of metrics and a shared responsibility, your development office is the most influential determinant of reaching and exceeding your goals. Whether your team has worked together for years or changes per annum, ask yourself:

  • Is the path to our fundraising goal realistic and is it clearly mapped out for the team?
  • Does each team member understand what is expected of them and how their role contributes to overall annual fundraising success?
  • Is the team sufficiently integrated into, and supported by, the wider operations of the school?
  • Are we sufficiently recognizing and celebrating individual accomplishments and team successes?

Revitalizing your annual fund takes fresh thinking, thoughtful consideration, and energetic engagement. Follow these tried-and-true steps to revamp your annual fund and to inspire donors to a new level of giving.

The COVID-19 pandemic has made in-person fundraising events – once fundamentals of the healthcare fundraising playbook – now feel as antiquated as typewriters and VCRs. At least for now, home offices and laptop screens have largely displaced America’s boardrooms and ballrooms. As a result, many nonprofits that relied on in-person events and fundraising strategies – healthcare institutions and hospitals for example – had a difficult choice to make:  

  1. Wholesale cancellation of these plans until in-person gathering was once again safe, or 
  2. A complete and creative reimagination of what was once in-person activities for our new cyber context.  

Luckily for us and for the sector, many organizations opted for the latter. Thus, as effective vaccines beckon herd immunity and a potential return to some sort of pre-pandemic “normal”, we now know that virtual fundraising events – large and small – can, in fact, garner massive quantities of philanthropic support, stabilizing the finances of organizations still weathering crisis. For the most forward-thinking nonprofits, virtual and hybrid events are here to stay, as additional arrows in the fundraising quiver that will empower more effective, efficient donor engagement, even long after the world reemerges from pandemic isolation.  

Part of the beauty of virtual events is that we can leverage the traditional marketing funnel to segment donors into tiers, creating customized experiences that appeal to each segment and make efficient use of development resources. The top of the funnel catches all individuals in your organization’s community, encompassing those who may be interested in a large–scale event. As we move down the funnel, the addressable population becomes increasingly exclusive from past donors and stakeholders, to major donors, then top donors.   

One healthcare organization that CCS works with has found great success from this multi-tiered approach to virtual fundraising events this year. Read on to learn more about each event type and our top takeaways to implement at your nonprofit.  

Large-Scale Events  

The hospital typically hosts an annual run/walk event that attracts more than 10,000 participants and raises money for cancer research. This year, the event was reimagined in a “virtual edition” and the team introduced a new personal twist to continue building community; teams were encouraged to create custom mileage challenges that were meaningful to them (for example, one family set its goal at 1,563 miles in honor of the number of days since their daughter’s bone marrow transplant). Teams logged their miles and participated in weekly fundraising challenges throughout the month of September and celebrated with live-streamed opening and closing ceremonies. Individuals from 13 different countries joined and the event raised a record-breaking $1.7 million. 

Our Takeaways: 

  • Don’t limit your event to a single geographic location 
  • Consider multiple sessions for the big event 
  • Develop opportunities for attendees to personalize the experience 

The hospital holds a popular luncheon and fashion show in May at a large event venue. This year a new concept for the event was developed: the fashion show featured hospital workers who were on the frontline of COVID-19 response as models. Filmed on the hospital campus, the event assumed a new hybrid form: hundreds watched online, while others attended an in-person showing, which was hosted drive-in movie style in a parking lot of a hospital outpatient facility, complete with snack trays delivered to each car. The event enabled the hospital to share the story of its COVID-19 response in an engaging way and showcase different parts of its campus. This event raised $400,000 for COVID-19 response. 

Our Takeaways: 

  • Tell the story of your organizational heroes 
  • Consider highlighting your in-person building or center to remind donors of your ongoing operations, even if these operations have been out of sight 
  • Leverage the registration list as an opportunity to expand your database, refresh donor data, and perform data analysis on your constituents 
  • Going “hybrid” will expand your reach, capturing donors who might not have been willing or able to attend in-person 

Series Events 

To create a meaningful touchpoint for hospital friends and donors, the hospital organized a new quarterly lecture series featuring its research and clinical leaders involved with COVID-19 testing, vaccination trials, and pandemic response. More than 300 donors, prospects, and friends of the hospital signed on for each of these calls and were encouraged to ask questions of the presenters. Development followed up personally on any questions that weren’t answered live.  

Our Takeaways: 

  • Identify your area of expertise and share it 
  • Develop an event with a regular cadence 
  • Follow up with answers for attendees 

Exclusive Events 

In lieu of an in-person salon-style dinner to cultivate major gifts for a capital project, the hospital hosted a “virtual dinner” for five carefully-curated major gift couples. This event featured a patient-family speaker, physician speakers, and a pre-recorded video of construction and the cutting-edge technology that would be featured in the new facility. A high-end, catered, four-course dinner box, bottle of wine, menu, and event program, along with a hand-written note from the volunteer who was serving as “hostess,” was delivered to each couple’s home for the dinner. This event raised $4 million for the hospital’s capital project. 

Our Takeaways: 

  • Build your program around the message you want to deliver 
  • Carefully curate your guest list and volunteer leadership 
  • Invest in a tailored and themed gift 

Individual Meetings 

The hospital rolled out a “virtual hard hat” private tour of a new facility being built to specific high-potential donors. This cyber-tour leveraged live video streaming from the construction site and pre-recorded personalized messages from hospital leaders, patient families, and the construction team to the donor. Hard hats branded with the hospital logo were sent to tour attendees prior to their tour experience.  

Our Takeaways:

  • Be sure to see what your donor is comfortable with around social distancing protocol
  • Show your donor their impact by touring a space or interacting with a program
  • Book end your experience with a one-on-one conversation and follow-up

As you develop your post-pandemic event plans, we hope that you can use these takeaways to strategically continue virtual and hybrid events at your nonprofit.  

Between March 2020 through February 2021, CCS Fundraising surveyed a selection of nonprofit partners to collect data regarding major giving across Europe.

The news has been encouraging. Check out our infographic below:

Download the infographic here>>