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December 10, 2007

Cash grab | Heavy competition for every fundraising dollar has Maine nonprofits sharpening their money-raising strategies

By Kerry Elson
Every nonprofit wishes it were in Matt Hoidal's shoes.

In his six years as executive director of Camp Sunshine, a 10-year-old nonprofit on Sebago Lake in Casco, Hoidal has garnered donations from TD Banknorth, New Balance and JetBlue. The funds help the camp offer week-long retreats for families whose children have serious illnesses, such as leukemia and lupus. Over the last year and a half, Hoidal has raised $7.2 million from these and other sources for the organization's $14.5 million capital campaign.

You could say Hoidal has an easier time than other nonprofits. As he readily admits, Camp Sunshine's mission "pulls a lot of heartstrings." Yet even Camp Sunshine, with an endowment that's risen from $1 million in 2001 to $7 million this year, can't rest easy when it comes to fundraising, Hoidal says. To keep Camp Sunshine afloat, Hoidal knows he has to seek donations aggressively. He's holding ever-larger fundraising events in Maine and out-of-state, and making sure to be transparent about the organization's finances. "Donors are becoming a lot savvier today and a lot more hands-on, and they want to know where their money is going," says Hoidal.

It's no secret that the competition for dollars is tough. The number of nonprofits in Maine has risen 34% since 1996, in line with national figures, and many say government funding is flat or in decline. And while individuals are giving more, businesses are giving less than they used to, according to Giving USA 2007, which is written and researched by the Center on Philanthropy at Indiana University. Individual donations were up 4.2% from 2005 to 2006, the latest year for which data is available, to about $295 billion, the report says. But corporate donations fell 7.6% during that period, to about $12 billion.

"For what pie there is, there seem to be more hands reaching for it," says Joe Perkins, an enterprise development specialist at Washington Hancock Community Agency, which this year launched its first-ever fundraising campaign to support operating expenses.

In light of that trend, many nonprofits in Maine are taking a hard look at how they raise money. Some have chosen to merge or cut programs, but others are following Hoidal's lead, sharpening their sales pitch to compete.

Under pressure
The news this year was full of stories about nonprofits under pressure. In April, Round Top Center for the Arts in Damariscotta was about to shut down permanently after its board of directors realized the organization wasn't sustainable. The board reconsidered after community members protested; it's since renamed the organization River Arts and is working on a business plan, according to the Portland Press Herald.

Meanwhile, in July, the Washburn Norlands Living History Museum in Livermore shut down its school programs and laid off its three employees, having spent more money than it was bringing in, according to a press release. Now, the organization's board of trustees plans to focus more on fundraising, the Sun Journal in Lewiston reported in August.

Other organizations have decided to merge to save money. In September, Ingraham, a social service agency in Portland, joined with Youth Alternatives, a similar organization in town, to cope with what it said was a tough economic environment for nonprofits.

Washington Hancock Community Agency in Milbridge was never on the verge of closing, but last year, the organization's staff realized it could no longer rely solely on grant funding to run its programs, which include business counseling and affordable housing. So last year, for the first time in its 40-year history, WHCA launched a fundraising campaign. "It was a quantum leap for us," says Joe Perkins, who managed the campaign.

The year-long effort concluded in August and exceeded the organization's $850,000 goal, bringing in $1 million from 350 businesses, individuals and family trusts. "We were pleasantly surprised," Perkins says.

Soliciting private donations took a lot of extra time, though. WHCA board members with fundraising experience offered free training to campaign volunteers, while others attended a Maine Association of Nonprofits seminar on soliciting donations.

Searching for an identity
WHCA came up with its fundraising campaign on its own, but other nonprofits have sought outside help. The Maine Discovery Museum, a children's museum in Bangor, last year began working with BHC Consulting Group in Bangor, which specializes in nonprofit management.

This year, BHC helped the museum secure sponsorship for its Parents' Night Out program, in which area parents drop off their kids at the museum for supervised activities and then maybe have a quiet night at home or get dinner downtown. The sponsorships have helped the program, which started in 2004, bring in an extra $5,000.

Other nonprofits have hit a veritable fundraising jackpot by working with consultants. Youth and Family Outreach, a nonprofit in Portland, last year hired Portland event planner Kirsten Cappy to produce its first major fundraising event. "We had been searching for an identity," says Robert Ellis, the organization's executive director. Previous fundraisers, like bake sales and a fashion show, brought in less than $1,000 each.

Cappy suggested a Harry Potter-themed event, timed to the release of the final book in the blockbuster series. Called Mugglefest, the fundraiser raised more than $30,000 after expenses for Youth and Family Outreach, according to Ellis.

Pulling off Mugglefest wasn't easy, or cheap. Youth and Family Outreach spent about $60,000 total on decorations, marketing materials, security and facility rental. Ellis and a team of volunteers also asked about 200 companies to donate, but most said they'd already spent their annual charity allocation. Seven ultimately gave money, including Gorham Savings Bank and the Barbara Bush Children's Hospital at Maine Medical Center.

What finally worked? Ellis learned to pitch to marketing directors, rather than to CEOs, who sometimes were hard to reach. Like Perkins at WHCA, Ellis says he also presented the event like an investment, noting that an organization like his could help businesses save money in the long run. "It shows in worker absentee or stress if they don't have good child care," he says.

The business-like approach is key, advises Lynn Doughty, senior counsel at BHC Consulting Group. "[Fundraising is] about putting away the 'tin cup' mentality," she says. "There is a myth about fundraising, that you have to beg. You're inviting investment in [your] work, and there's a social return on investment rather than a financial one."

Ellis now plans to hold an event like Mugglefest every year to support Youth and Family Outreach. Next year's won't focus on Harry Potter, he says, but it will have a literary theme. He's learned that to persuade sponsors to participate, he'll have to be persistent. "You're just another person trying to set up a meeting and get money," he says.

Fundraising tips

Hone your pitch
Stress that the organization is meeting a community need, advises Lynn Doughty, a nonprofit-management consultant at BHC Consulting Group in Bangor. "My axiom is: Organizations don't have needs, the population that you're serving has a need and your organization has a solution," she says. "That creates a whole different level of dialogue with the donor."

Be transparent
Casco-based Camp Sunshine regularly updates its profile on Charity Navigator, a website that ranks nonprofits based on how they use their funds, among other factors. In June, JetBlue Airways donated 80 round-trip flights ˆ— valued at $600 each ˆ— to Camp Sunshine after checking the organization's Charity Navigator profile. "We always use [the site] as a follow-up to make sure the organization we're giving to is using its resources wisely," says Icema Gibbs, the airline's director of community relations.

Keep events fresh
If your organization chooses to hold an auction, a common fundraiser, make it unique. For its annual auctions, the Maine Discovery Museum asks local artists to donate art based on a theme, such as decorated benches or clocks. This year, the auction raised $28,000 for the museum. "We really know that people really look forward to it," says Andrea Stark, the museum's executive director.

Offer options
Camp Sunshine has at least 10 different ways to receive money, whether through will bequests, $50 annual memberships or purchases at Camp Sunshine's online store. Businesses can even pay up to $1,500 to engrave their logo on a brick that's used for a camp walkway. With multiple options, it's easier for someone to find a way to donate, says Matt Hoidal, the camp's executive director.

Kerry Elson

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