Study Fund Raising
Few topics are as critical as fund raising for progressive organizations. Organizations with no money are not likely to be effective and not likely to survive. Ignorance is an obstacle to raising money, but not the main obstacle. The main obstacle is getting over ourselves and saying what needs to be said "Give me Money!" If that's your problem, try singing along with youtube:
https://youtu.be/I8P80A8vy9I https://youtu.be/yeVx1C73o8k https://youtu.be/N8oNHMNCSjQ
But if you want information
A good thing to remember is that donors rarely give anybody anything unless they perceive it to be in their own interests. That is why unions have difficulty winning big grants from corporations or the super-rich – they got rich by exploiting working people and; consequently, do not tend to favor unions.
This is not true of all philanthropists. Some very large funds, for example, got their money from people who are now dead. Joan Kroc, who gave away money from the fortune that Ray Kroc accumulated from the McDonald’s hamburger chain, is a good example.
One of the main interests that donors have is taking their donations off their income taxes; consequently, they usually donate to organizations that are incorporated under section 501c3 of the tax code. Those organizations are extremely limited as to what they can do with the money, especially in the political field. Organizations known as 501c4’s and 501c5’s (unions) can accept donations, but the donor doesn’t get to take it off their taxes.
In recent times, big donors have gravitated toward organizations that are not required to report their donor list. That is the reason for the big rise in 501c4 organizations and “dark money” in politics. Many organizations try to incorporate both as a 501c3, to raise money, and a 501c4, to function in politics. Legally, they cannot transfer money from the c3 to the c4, but they would really like to.
In the not-so-distant past, union constituency groups and other progressive organizations saw unions as their own cash cow. If somebody needed to go on a junket to a meeting in Puerto Rico or if their Little League son’s team needed new uniforms, they went to the union. A normal union Executive Board meeting in those days would handle several requests for donations. Nowadays, money is tighter, but union constituency groups still look to unions as their main source of income.
As President of the Texas Alliance for Retired Americans, an AFL-CIO affiliate, I ask unions for annual donations every year from Thanksgiving to New Year’s. I send letters by U.S. mail. I always explain how we are supporting union activities and causes, and I ask for a set minimum amount. Whenever possible, I ask the President by name.
These official letters are necessary, because unions are democratic and very few labor leaders have individual control over money. They have to go through their own leaders and memberships to approve a donation. It takes time, and it takes some kind of official proposal.
I also alert our organization’s leaders and ask for their cooperation during the “annual fund drive.” In some cases, we have members who know the donor decision-makers and are willing to make the request personal.
In mid-December, well after my letters have been received and before Christmas vacations begin, I start telephoning. In early January, if I haven’t heard anything, I call again. In some cases, they require another letter or some kind of official document.
The Texas Alliance for Retired Americans and other constituency groups have always depended on annual donations of $1,000 and up from unions and union federations. In our case, that means that I am going to beg them every year.
FUND RAISING EVENTS
Major donations can be raised from fund-raising events. Usually, there is a dinner, a reception, a “power luncheon,” or some kind of sports event. Recently, golf tournaments have been major fund raisers. Often, there is a prominent person being honored so that donations are seen as tributes to that person. It is also possible for events to raise money for an upcoming campaign with a published budget. For these things to work, somebody has to be able to organize the event and somebody has to be able to monetarize it. They don’t have to be the same person.
MY PREFERENCE
Like most people, I am not fond of begging for money. I particularly dislike depending on our unions because they are progressively squeezed for funds. I think that an organization with a good program should be supported by its members. That means fund raising for small donations from individuals.
DUES
The National Alliance for Retired Americans sets our voluntary “dues” at $10/year; consequently, we don’t get much money that way.
PASS THE HAT
Members aren’t offended if they are asked to voluntarily contribute at meetings. Union members, even retired union members, tend to be generous. Whenever I am in leadership, I always try to “pass the hat” at meetings. This is traditionally how workers’ organizations have always been funded.
COLLECT FROM CREDIT CARDS
Square and PayPal offer devices that read credit cards and take money. It’s also possible to get a small device that prints receipts so that you can look at the credit card, make the donation, and then print the receipt. It’s becoming more and more important because people are carrying less cash.
DONATE ON-LINE
Several services will collect money on-line. For special situations, Gofundme will help raise money – and take a slice for themselves. I’ve used We Pay, which is the service used most by union organizations, and PayPal. WePay collects money from donors and deposits into the organizations’ bank at the end of every month. PayPal functions like an on-line bank. Of the two, PayPal is cheaper and has more features. Either one can take large or small donations.
It is possible to raise money directly through
RECURRING DONATIONS
People who understand and care about the Texas Alliance for Retired Americans make regular on-line monthly “sustainer” donations of $10-$20. It is a reflection of their commitment to the work. I believe this is the future for fund raising for union and progressive organizations.
THE BIG PROBLEM
The giant problem in fund raising for progressive organizations is this: even though most people agree that it has to be done, NO ONE WANTS TO DO IT! Organization leaders, including mine, usually just dump all the fund raising responsibilities on a single person and then wash their hands of it.
A good friend who was a salesman told me, “You got to close.” Good advice.
Even better advice, possibly the best advice I ever received, came from an old timer in the progressive movement: “Anybody can do it. It’s just work!”
They don’t want to dirty their hands. They don’t want to offend their friends (or anybody). They don’t think they are cut out for it and they think somebody else (me) is more capable. They can’t reduce themselves to saying those three little words that have to be said if the progressive movement is to survive: “Give me money!” All of that is nonsense.
Stop worrying and practice singing along:
https://youtu.be/I8P80A8vy9I https://youtu.be/yeVx1C73o8k https://youtu.be/N8oNHMNCSjQ