Choosing a Reputable Fundraising Company - Spring 2007
Ask A Pro: About Making The Sale - Spring 2005
What to look for in a fundraising agreement – Fall 2002
Ask a Pro: Finding a Reputable Fundraising Company – Spring 2002
Five Ways to Measure a Company's Credibility – Fall 1999
Ask a Pro: About Interviewing Fundraising Companies – Spring 1998
Troubleshooting! Why You Need a Professional – Fall 1997
Five Ways to Measure a Company's Credibility – Spring 1997
Guest Editorial - Fundraising 'Essential' by Robert Kealey – Spring 1997
Choosing a Reputable Fundraising Company |
Spring 2007 |
Five Things to Look For in the Search for a Professional Fundraiser
Now is the time when many schools evaluate their fundraising goals for the coming year and decide how best to meet those goals. Often the process involves selecting a professional fundraising company. Selecting the right fundraising company is a critical step toward your program’s success. In some areas, dozens of companies offer myriad fundraising products and services, which increases the need to completely evaluate a company before choosing a program.
Service is a critical consideration when evaluating a fundraising company. Let the sales representative explain what he or she will do to make your fundraiser a success and, importantly, make your job easier. To help you and the company determine what services will be critical to the program’s success, discuss up front your financial goals and the number of volunteers you can count on for help. Armed with answers to the following five questions, fundraising sponsors can make solid decisions for their group:
Experience
How long has the company been in the product fundraising business?
Services Offered
What value-added services does the company offer, and how much do these services cost (i.e., assistance to volunteers, communicating with parents, custom packing, etc.)?
Flexibility
How will the company tailor its program to fit your organization’s needs, and more importantly, how will it meet your financial goals?
Knowledge of Laws
Does the company comply with state sales and use tax laws and understand how these laws impact your program?
Troubleshooting
How responsive will the company be should problems arise (i.e, damaged products, back orders, etc.)?
For tips on what to look for in a professional fundraiser, and a list of additional questions, visit the Fundraising Toolbox at www.afrds.org.
Ask A Pro: About Making The Sale |
Spring 2005 |
As we spring into another fundraising season where warm weather competes for your attention, Fundraising Edge
went forward and got answers that can help your school raise more funds at the next drive.
We asked two fundraising pros how they coach their groups to succeed.
"If your group presents a quality product line to the community, to which the buyers respond favorably, your profit will stay consistent and grow through the years. Parents, friends and relatives actually look forward to your annual sale, increasing their order from year to year, telling their friends how good the products are. Oftentimes a school changes fundraising companies annually, thinking that another company or program might work better. However, if the quality of products is inconsistent or service provided is inferior, community trust is broken. The buyer loses confidence in the product sold and, therefore, credibility of the school or school group suffers. People are less likely to support the sale next time. It takes years to build community loyalty and support! If something works for you, stay with it!"
- Elisabeth Jonas, Fundraising Professional, Duluth, GA
My focus is on what will cause the kids to get the program materials out of their backpacks and out of their football or cheerleading gear bags. The chance for something to happen is great if they get the catalog out of their bags and into the hands of mom or dad. Once in the right hands, the program has to cover a wide variety of interests, appealing to singles, moms, dads, older adults, teenagers, adolescents, and children. Then the program has to cover categories of interest, whether it is food, seasonal and holiday items, kitchen gadgets, accessories, and more. More variety means more selling tools on the front line. But it still all comes back to motivating the kid to take the brochure out of the backpack. Strong incentives and a good product mix work well with my groups."
- Gary Ulrich, Fundraising Professional, Carlisle, PA
What to look for in a fundraising agreement |
Fall 2002 |
Ancient Romans called it a "pact." Webster's says it's "a binding agreement." Roget's Thesaurus offers a dozen alternatives - "deal", "arrangement", "understanding", "covenant", or "promise" to name a few. But to Shiree Lynch, Georgia State PTA President, it means only one thing: "A contract is a contract." And, when it comes to fundraising, she says parent groups should not do business without one.
"Written agreements between fundraising companies and parent groups are absolutely vital," Lynch says. "They spell out for everyone exactly what the expectations are of the other."
Jenny Raber, First Vice President of the West Virginia PTA, agrees.
"When making fundraising decisions, parent groups should think of themselves as small businesses," Raber says. She has 15 years of PTA experience but, it's her role as co-owner of two businesses that fuels Raber's belief in the importance of fundraising contracts. Acknowledging that fundraising drives, particularly product sales, can bring in thousands of dollars, Raber believes safeguards should be in place. "Written contracts are one form of safeguard," she says.
Most professionals in the fundraising industry agree that some form of written agreement is a good idea. With all major decisions in writing, both parties can assume responsibility for complying with the terms, and begin the fundraising project with a clear understanding of who is responsible for what. But there is some debate on the necessity of signed agreements.
Alicia Burlew, a 17-year fundraising veteran, works for a 23-year-old fundraising company based in Oklahoma that has always required written agreements - signed by both parties - for reasons she considers obvious.
"It protects the group in terms of getting what they asked for. And it protects our company as far as getting paid," Burlew says. But, she adds, these agreements are vital business tools for other reasons.
"A signed agreement is the first order of business but often it's the final point of reference if questions come up," says Burlew, who uses the fundraising agreements to keep track of details. She even notes on each agreement why the group is raising the money - to upgrade the playground or expand the media center, for example. "That way," she says, "we all stay focused on the target."
Gary Ulrich, president and co-owner of a Pennsylvania-based fundraising company, agrees that good record-keeping is vital from the start. Though he takes a different approach to the notion of "signed" agreements.
Ulrich says the first question he often gets from a customer on the brink of striking a deal is "Do I have to sign anything?"
"It makes them nervous," says Ulrich who tells customers it isn't necessary that they sign a contract. If the group is not satisfied, Ulrich knows he could lose their trust and eventually, their business. The 20-year fundraising veteran believes that's assurance enough that a commitment has been made. Then, with the sponsor's participation, Ulrich completes a "purchase order" containing all the program specifics including costs and a detailed list of products, services, support materials and delivery dates for each. "It's really more for internal purposes, but we can refer to this document throughout the process."
Once A Commitment is Made…
…the tough part is largely over and the wheels are set into motion. Almost immediately, the fundraising company will purchase items (brochures, catalogues, products, etc.) based on that agreement - signed or otherwise. Acting in good faith, companies must often make financial commitments early in the process to ensure the fundraising program is a success.
Michael Keyes, president and owner of a fundraising company based in Michigan, explains.
"Fundraising has become so sophisticated, with hundreds and hundreds of products. Many are imported from other countries," according to Keyes. "Companies like mine find they have to project earlier in the sales cycle so that our suppliers can ensure we will have enough inventory in the fall." Some companies offer early signing benefits which can create logistical issues for some parent groups.
"Spring is usually before the new leadership is elected," says PTA leader Lynch. An outgoing president or fundraising chairperson, eager to make the best possible arrangement for the group, may make a commitment for the following school year without the knowledge or support of the new leadership. But, according to Lynch, prematurely signed agreements - or those that do not have the full support of the incoming leadership - put both the fundraising company and the sponsoring group in a predicament.
She advises outgoing chairs to confer with incoming chairs before making a commitment to a particular company or program. Likewise, she believes, companies should be sure they are working with the right decision-maker before actively pursuing their business.
Pat Bieneman, president and co-owner of a fundraising firm in Washington state agrees.
"Most of our contracts are signed by the organizations' outgoing officers," admits Bieneman. "But we encourage them to involve the incoming board or fundraising chairs in planning the fall fundraiser." In fact, Bieneman says, many of her groups have found that good planning makes for smoother transition among volunteers.
Savvy parent groups, according to Bieneman, appoint a new fundraising co-chair every year to serve a two-year term. The first year is spent learning, gaining experience and helping select next year's major fundraising project - a project they will lead in the second year of their term as fundraising chair. The continuity is helpful in many ways, Bieneman says, but, most importantly, "there's agreement among leadership from one year to the next and no one feels like a fundraiser has been foisted upon them."
Despite efforts to reach consensus on fundraising programs, sometimes unforeseen circumstances prompt groups to want to renege on their commitments. Parent group leaders and fundraising experts agree, this is almost always a bad idea. It doesn't matter if the agreement was sealed with a handshake or a signature.
"If a group has an agreement with another company, we politely decline and walk away," says Burlew. Her company belongs to the Association of Fund-Raising Distributors and Suppliers (AFRDS), a professional trade association for companies that assist non-profit groups in their fundraising efforts. AFRDS developed the industry's Code of Ethics and Standards for Professional Practice which includes the following: "No member shall knowingly interfere with the contractual relationships of any party or entity." To do so, Burlew and her AFRDS colleagues believe, reflects badly on the company itself and the industry as a whole. "I don't work that way and I don't want our salespeople to work that way."
Ulrich agrees. "A big red flag should go up if a sales rep suggests you break an agreement with another company," he says. Likewise, companies say they are wary of groups eager to break a contract with another firm for what they perceive to be a "better deal." "What does that say about the integrity of the organization?," company reps will speculate. "Will the group ultimately decide to back out of their agreement also?"
When Lynch hears from a local PTA having second thoughts about following through on an agreement with a particular fundraising company, she asks, "Do you have a signed contract?" If the answer is "yes," she repeats her mantra: "A contract is a contract." Unless the company has committed some kind of flagrant offense, Lynch counsels groups to follow through on the agreement.
According to Ulrich: "I work hard to stay close to the decision-maker. If I do my job right, I'm listening and answering their questions - leading them through a process to find a good fit. Rarely do they change their minds." Few would disagree. A successful venture between two parties in almost every business enterprise, including fundraising, is about finding "a good fit." And folks who know fundraising say, once you've found a good fit, it's best to get it in writing and then - whether you sign it or not - stick to it.
What to look for in a fundraising agreement
While some companies do not require sponsors to sign a contract, most rely on some type of written statement to document arrangements. Here are some things to look for when reviewing a fundraising agreement:
- Check all the numbers. Are the costs, amount of profit to the group, etc., the same as those you agreed to verbally?
- Are all of the services you require included? (For example: kick-off presentations, incentive programs, tallying, packing, shipping.) Is it clear who - the sponsoring organization or the fundraising company - covers the cost for these services?
- Are the promotional materials you reviewed and approved listed: (take-home brochures, display kit, sample packs, etc.)?
- Are important dates included and consistent with your verbal agreement?
- Is there a clause covering the procedure for handling damaged, unsold or returned merchandise (appropriate for some products)? What about back-orders and substitutions of popular items?
- If you are required to sign a contract, be sure you have ALL the appropriate signatures (many groups require at least two) and that it is clearly an agreement between two organizations, NOT between two individuals.
Ask a Pro: Finding a Reputable Fundraising Company |
Spring 2002 |
Every year there seems to be more and more fundraising companies, programs and products to choose from. It's time now to make a decision and you're looking for some telltale signs that a firm will be fair and responsive to your needs. We asked a couple of professional fundraising companies for advice on how to look beyond the sales pitch.
Selecting a fundraising company is just the same as making a major purchase. Ask for references…trust your instincts. If you're dealing with somebody that makes you uncomfortable, there's a reason. When you call the references, find out how long they've worked with the company? What was the profit - not the percentage? Ask how they handled problems that came up? And, if they tell you there were no problems, it's probably not a solid reference. You just can't do a fundraiser with 400 families and not have any problems.
- Stu Nickell, Englewood, CO
Look for quality. It's so easy to be side-tracked by the glitz. You might go with the wrong company for the wrong reason. On paper your fundraiser may even do well…but if the products and services you actually receive are substandard, it won't matter how well you did. Your group's reputation is on the line and it will dictate how you do next year.
- Cindy Nicholson, Portland, OR
Five Ways to Measure a Company's Credibility |
Fall 1999 |
America's schools and youth groups earn nearly $2 billion dollars each year through product fundraising drives. The money pays for computers, field trips, athletic, music, arts and other programs that enrich young lives. It's more important than ever that fundraising activities be conducted with professionalism. Choosing the right fundraising company is a critical step toward success, but not enough organizations invest adequate time in making that decision. Here are five key areas to focus on when interviewing fundraising companies.
How long has the company and its representative been in the product fundraising business? Companies with a track record are more likely to anticipate and meet an organization's needs. An experienced representative can be a valuable consultant and troubleshooter.
What value-added services does the company offer and how much does it cost? Depending on a group's specific needs, services - such as tallying; packing orders by the student; incentive programs; kick-off assemblies - can improve fundraising efficiency and financial success.
How a company addresses the question of state sales and use tax is an indication of its thoroughness. In some states, product fundraising is exempt from tax. In others, these sales are taxable, and often the tax-exempt organizations are liable for collecting taxes. A professional fundraising representative will be familiar with your state's tax laws and how best to comply with them.
How responsive will the company be should problems arise? Discuss how the company will handle unforeseen problems that could occur (e.g. incorrect or damaged products are delivered). Make sure that the representative is willing to take personal responsibility to fix these problems in a timely manner.
Ask for and check out references. Talk to peers within and outside your school about the company and the rep. Do they deliver on promises? Did they meet, exceed, or fall short of expectations? Are they a member of the Association of Fund Raisers and Direct Sellers? If your group has a successful history with a particular fundraising company, it's probably a good idea to maintain that relationship. However, it doesn't hurt to periodically check the market to ensure your group is getting the best services and results possible.
Ask a Pro: About Interviewing Fundraising Companies |
Spring 1998 |
Often, fundraising representatives are asked to introduce and sell their company's products and services to a committee in fifteen minutes or less. We asked professionals in the business of fundraising what they thought of this practice and how sponsors might suffer from it:
If they can only spend 10-minutes with each company, I recommend sending a list of questions to each company in advance so the companies can spend the 10-minutes addressing the sponsors most important issues. Some good “challenge” questions might be: How long have you been in business? Where are the products shipped from and where are they packed? What's the most difficult problem you've encountered and how did you solve it?
David Procter, Buckley, WA
In my opinion, it is not possible to make a sound business decision worth thousands of dollars in 10-minutes. If I choose to participate in this kind of selection process, I will focus my comments on the sponsors' needs and our company's ability to meet those needs. I will not get into the details of our program. When hiring a fundraising professional, sponsors should focus on product quality, service and fair profit. Frankly, they need to spend more time with fundraising companies to resolve these questions.
Warren Ackerman, Indianapolis, IN
Troubleshooting! Why You Need a Professional |
Fall 1997 |
Then choosing a professional fundraising company, it's important to look for someone with a successful track record offering quality products and useful services at a fair price. The fundraiser should be familiar with your school and extended school community and come with excellent references. Hiring a pro is your best choice for a successful, headache-free fundraising program.
However, with any important undertaking, snags can and will occur during the course of a fundraising project. And that's when you can truly appreciate a professional fundraising representative and a company that stands behind them. Here are some real life examples to illustrate:
After a successful pizza sale, a California elementary school working with a trusted fundraising company had scheduled product delivery early in the afternoon so that children leaving on school buses would have time to pick up their orders before going home. Unfortunately, the truck was late and parents had to come back to the school later in the evening to pick up their orders. But, according to the school's principal, "we were working with a great fundraising rep who jumped right in," donating 10 pizzas and preparing them for busy families to snack on as they arrived at the school.
A parent in Washington recalls the time a teacher forgot to turn in $150 worth of order forms from her class. "She discovered her mistake on the day of delivery after everyone else had received their orders. Our fundraising rep had the order to us in a day."
A new Florida school with 1,400 students and a loosely organized group of well-meaning, though inexperienced, parent volunteers learned a lot from their fundraising rep. Reports the school principal: "He showed personal interest in our success. He showed us everything we needed to know and he sweated right along with us. It was one of the most successful fundraising programs I've ever had the pleasure to watch."
A printer's error in Texas led to a series of goodwill gestures between a school, their fundraising company and that company's supplier. A brochure mistakenly offered a $5 item for $4. The accompanying envelope correctly listed the item at $5. Rather than jeopardize future relationships, the fundraising company honored the lower price listed in the brochure but awarded profits that the school would have received at the higher listed price. When the supplier learned of the embarrassing misprint, they offered to adjust the fundraising company's invoice. No hard feelings. Everyone wins.
Five Ways to Measure a Company's Credibility |
Spring 1997 |
Although selecting the right fundraising company can mean a difference of thousands of dollars in profits for a non-profit organization, relatively few organizations invest adequate time in making that decision. In an April 1996 workshop at the annual conference of the National Catholic Educational Association, Russell Lemieux, Executive Director of the Association of Fund-Raising Distributors & Suppliers (AFRDS), suggested focusing on five key areas when interviewing fundraising companies:
- How long has the company and its representative been in the product fundraising business? Companies with a track record are more likely to anticipate and meet an organization's needs. An experienced representative can be a valuable consultant and troubleshooter.
- What value-added services does the company offer and how much does it cost? Depending on a group's specific needs, services — such as tallying; packing orders by the student; incentive programs; kick-off assemblies — can improve fundraising efficiency and financial success.
- How a company addresses the question of state sales and use tax is an indication of its thoroughness. In some states, product fundraising is exempt from tax. In others, these sales are taxable, and often the tax-exempt organizations are liable for collecting taxes. A professional fundraising representative will be familiar with your state's tax laws and how best to comply with them.
- How responsive will the company be should problems arise? Discuss how the company will handle unforeseen problems that could occur (e.g. incorrect or damaged products are delivered). Make sure that the representative is willing to take personal responsibility to fix these problems in a timely manner.
- Ask for and check out references. Talk to peers within and outside your school about the company AND the rep. Do they deliver on promises? Did they meet, exceed, or fall short of expectations? Are they a member of the Association of Fund-Raising Distributors & Suppliers? If your group has a successful history with a particular fundraising company, it's probably a good idea to maintain that relationship. However, it doesn't hurt to periodically check the market to ensure your group is getting the best services and results possible.
Guest Editorial - Fundraising 'Essential' by Robert Kealey |
Spring 1997 |
In closely examining non-government sponsored schools, you soon discover that fundraising is essential for their survival. The typical Catholic elementary school raises about ten percent of its operating budget from different fundraising activities. If you were to do the math, for the over five million children in independent schools of all types, you would discover that fundraising for these schools is a $1 billion business each year.
While administrators, teachers and parents readily admit that fundraising is an onerous task, it does have several significant advantages.
- First, fundraising reduces the actual cost of tuition because it invites the wider community to support the school. Thus, the burden of maintaining a quality educational institution is spread across a larger population.
- Fundraising also brings together people from various backgrounds who work for a common goal, quality education for their children. Such interactions frequently lead to greater understanding of different people.
- Finally, fundraising creates ownership of the school and its programs. This is an important factor and, unfortunately, some parents do not realize how great an effect ownership has on their involvement in the education of their children.
Whoever bears the responsibility for organizing the various fundraising efforts also bears the responsibility for providing quality products and services to the customer. Nothing can hurt a school's future fundraising efforts more than not pleasing the customer. Therefore, the school needs to consider carefully what product or service will best meet the needs of the customer. Blindly repeating the same practices year after year drives the public away. Having found a real, unsatisfied need, the selection committee should examine the quality of the product or service to be sold.
While profit is the goal of fundraising, this profit needs to be shared among the manufacturer, distributor and the school. Neither of these parties can take the major share of the profits. When a school makes undue demands on the distributor, the distributor must make cuts and these only happen in terms of quality and service.
Since fundraising is vitally important to our schools and it is big business, the time has come for all schools to address fundraising in a professional and business-like manner. If this is done, the long term effect will be increased revenue to the schools which is the reason why we do it in the first place.
Robert J. Kealey, Ed.D., Executive Director
Department of Elementary Schools
National Catholic Educational Association
