Engage Now Africa Final

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Engage Now Africa Social Innovation Project Fall 2015

Transcript of Engage Now Africa Final

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Engage Now Africa

Social Innovation Project

Fall 2015

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Project Description Engage Now Africa (ENA) is currently considered a small nonprofit based on its annual income of about $1 million. ENA is in the midst of expanding its income portfolio and finding diverse ways to increase its funding in order to grow in size and influence. Our goal for the project is to provide Engage Now Africa with information to help them diversity their funding, as well as provide them with the contact information of various corporations, foundations, and private donors who have the potential to contribute to the projects and mission of Engage Now Africa as future donors. Through research and interviews we were able to compile a report to help ENA expand its funding.

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Table of Contents

Nonprofits…………………………………………………..……………………………………………4

Contributions and Fundraising………..……. …………………………………………..........................5

Corporations………………………..……………………………………………………………………7

Donors……………………….…………………………………………………………………………10

Human Trafficking……………………………………………………………………………………...12

Family Foundation……………………………………………………………………………………...12

Rotary International…………………………………………………………………………………….14

Conclusion……………………………………………………………………………………………...15

Appendix……………………………………………………………………………………………......16

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Nonprofits From the data collected we found that there are essentially three different sized nonprofits that we classify as small (1-3M), medium (4-10M), and large(11+M). Under these classifications, Engage Now Africa is a small nonprofit.

Small nonprofits

The data shows that in almost all cases the plurality of small nonprofits income comes from “contributions.” We recognize that “contributions” is a pretty broad term, when we use the term “contributions” it includes both individual contributions and corporate contributions.

The exact percent that comes from “contributions” varies greatly with some nonprofits incomes consisting of upwards of 90% while others as small as 30%. Other major sources of income for small nonprofits are special fundraising events, grants, and special services.

Ex: Choice Humanitarian is comparable in size and mission to ENA. Choice Humanitarian receives 45% of their income from “contributions”. At least part of these contributions come form a partnership Choice Humanitarian has with Cotopaxi. Choice Humanitarian next largest source of income is Special Events. Choice Humanitarian made $968,118 in the year 2013, 31% of their total income, from Special Events. Special Events could be a good source of funding for Engage Now Africa.

Medium nonprofits

Our research suggests that medium sized nonprofits are almost totally dependent on grants. All the medium sized nonprofits we found had at least 80% of their income from grants. Admittedly we did not find a lot of nonprofits that fit in our medium classification. This perhaps suggests that it is either difficult of infective to structure yourself as a medium sized nonprofit. One reason for this could be because medium sized nonprofits do not have large enough staffs to garner sufficient funding to become a large nonprofit. It is more effective to structure yourself as either a small or a large nonprofit, but further research would be required to validate this statement.

Ex: Coptic Orphans Support Association is a medium sized non profit that made $8,455,554 in the year 2013. 99% of their income, $8,361,488, came from grants.

Large nonprofits

We found that large nonprofits structure themselves in one of two ways. Either they put their emphasis on contributions or they focus their attention on grants. Having said this, these large nonprofits have the most diverse sources of revenue and, in almost all cases, seek income from both grants and other contributions. In general, we found that large nonprofits rarely receive more than 70% of there income from one single form of fundraising. This suggests that to become a large nonprofit it is important to diversify forms of income.

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Ex: Save the Children is a large nonprofit that made $657,842,016 in the year 2013. 69% percent of their total revenue comes from “contributions”. Save the Children’s next largest source of income is grants, grants make up 27% of Save the Children’s income.

Contributions and Fundraising Are your contributions solicited or voluntary?

Depending on the source of funding, funds are solicited and/or voluntary. For example, Private donors usually don’t start out as solicited as they usually come from private connections with donors, but later the donor could consistently donate without being asked.

In general, a non-profit will always have to solicit for their funds in one way or another.

Asking for donations should be straight forward and many times it is more effective to ask for donations of a specific amount rather than give the option to donate whatever quantity.

Sources that tend to be solicited more than others include grants from corporations and foundations.

How much time do you spend on fundraising relative to other activities?

It is Ideal that a non-profit spend most of their time on program activities rather than fundraising.

Time spent on fundraising can be considered as ‘money’ spent on fundraising so the more time spent on fundraising the more ‘overhead’ the non-profit has.

On average Nonprofits use 10% of their total time of the non-profit’s activities.

However, there are many other activities behind the scene that take time but are not taken into consideration in this measurement.

Where do you find private donors?

It's the most effective of all fundraising methods because it is straight forward, however, if you don’t have personal contacts it makes it near impossible to acquire large donors right off the bat.

Gifts are often large and can be consistent.

If your board members have wealthy contacts, this is a perfect way to connect and gain support.

Contacts are personal so the donor is genuinely invested in the purpose of the charity and possibly leaving their money to the non-profit in their will.

If you ask someone face to face, it's harder to say no.

No standard of asking is needed, you can ask how and when you want.

It's very labor-intensive. The solicitor has to be willing to spend time explaining the organization the mission of the non-profit to the potential donor.

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The solicitor needs to be well-prepared, unafraid to ask for money, and enthusiastic about the organization.

How do you connect with foundations?

You can receive high amounts of money.

Once you have obtained one grant, you are more likely to receive others because of growing credibility.

Receiving grants is a great way to build your organization's image and credibility.

Competition is high, and the success rate is low. On the average day, roughly 2,700 grant proposals are submitted; fewer than 200 will receive funding.

There are strings attached to the money you receive. You can't do whatever you want with the funds but according to donor.

National grants tend to have more strings attached in comparison to grants from smaller family foundations.

How do you collaborate with corporations?

It is good for both parties. The corporation gets credit for being a good citizen, while you receive support to accomplish good things in the community. Both parties receive some kind of return.

There are various forms of corporate collaboration, such as cause-related marketing, that increase your organization's visibility by linking it to a high-profile company.

Corporate collaboration often leads to corporate philanthropy. Once you establish relationships with people in businesses, they're much more likely to say "yes" to your grant proposal. What that means is that corporate giving can become more sustainable through grants over time.

It will help you and others in your organization develop a more business-oriented mindset, this will drive the non-profit to make strategic moves maximizing efficiency.

Corporate Giving is the fastest-growing area of nonprofit fundraising.

Online Fundraising

As of 2014, Mobile usage is higher than desktop so go MOBILE.

Ways to do this include social media (Engage Now Africa can use this in their social media campaign.)

Events

They attract new supporters.

They encourage board involvement.

They pull diverse groups together (i.e. schools, government, public support)

They help build email and mailing lists.

They unite people in a common goal and increase commitment.

Often times it is hard to make it worth it for the time spent.

They require a lot of the non-profit (i.e. money, personnel and time)

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Corporations Corporate donations or partnership make up one of the top sources of fundraising for Non-Profit Organizations. Although sometimes tricky in securing the initial deal, the first donation can many times lead to consistent future donations.

What a corporation looks for in a Non-Profit organization A corporation is much more likely to donate to a cause if it is related in some manner to the mission of the corporation. For example, a pharmaceutical company will be more likely to donate to a medical mission instead of a human trafficking mission. Likewise, a consulting firm is much more likely to donate to a micro-finance project rather than a clean water project.

How are partnerships contracted? Nothing beats having personal connections or contacts with a corporation. There is immediate trust between the donor and the grantee. However, where personal connections are not available, a type of soliciting is needed. Like mentioned above, a corporation that shares some of the same missions as your Non-Profit will have a bigger desire to donate. After understanding how the corporation donates, (whether personally or through a foundation), a very clear and concise petition should be presented. Many large companies unfortunately except only email petitions due to the large quantity of petitions that are received. This is the trend for large companies and smaller companies usually have personnel for phone contacts. After initial approval, secondary phone interviews are conducted and it is important to be up front and ask a specific amount or quantity of materials. The more organized, the more likely they are to donate. Smaller local corporations can be contacted directly. Also, if the company is growing from a smaller company to a 500+ employee company, they are excellent candidates for donating. Growing corporations of 500+ employees generally are new to the philanthropic world and will be willing to make their first philanthropic endeavor.

Possible Future Corporation Partnerships

Johnson & Johnson

Johnson & Johnson have ties to the medical field. They are a large company so understandably they go through many requests a year. I spoke with a representative and they told me that Johnson & Johnson will only donate to causes that are medically related. Specifically, they informed me that they only donate to medical institutions or in some instances medical missions.

To approach this company, Engage Now Africa needs to have a specific medical trip or mission in mind. This means with specific dates and objectives in mind. An idea of how the utility will be measured in said trip should also be mentioned. When a clear trip has been organized, Engage

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Now Africa should contact Johnson and Johnson by phone. The phone number is (732) 524-0400 and you can mention that you talked to a representative earlier last month named Jeff

3M

3M is a manufacturing company that works in many parts of the United States as well as world-wide. Because of the diverse nature of the company, 3M will donate to a majority of causes. However, 3M is very particular to donating to communities out of which 3M is located or employees reside.

Engage Now Africa should contact 3M at the office in which they want to work in. By the look of their website they have offices in Namibia and Ghana. Engage Now Africa should contact Dick Streeper +264 81 124 5383 who is the partnership coordinator in that area.

General Mills

Due to the large nature of General Mills, philanthropic efforts are done through their foundation. These donations are invite-only and are given to Non-Profits only in the United States. However, internationally General Mills has made a philanthropic footprint through Partners in Food Solutions. This is a foundation that donates to international causes.

Cathe Wood should be contacted at 312-782-4560 regarding petitions. She is Director of Donor Relations. Assistance could be awarded in the form of supplies or financial grants.

Rio Tinto

This international company donates out of the location where each mine is located. Recently financial trouble has plagued Rio Tinto in some of it’s mines, but a partnership could still be possible with the mine in Namibia. This mine has set up a foundation called the Rossing Foundation. This foundation primarily focuses on education.

Engage Now Africa should have an ‘educated themed’ pitch ready for Rio Tinto and contact Leondine Arnat, a member of the Rossing Foundation. Her contact information is +264-61-211-721. It is important once again to have the manner in which utility will be measured ready. Examples of this could include, increased number of graduates, better test scores, decreased crime rate, etc.

Stanley Black and Decker

Black and Decker has developed general criteria of their philanthropic giving’s based on 5 different areas of emphasis. These areas of focus include building houses for the needy, providing medical care for children, STEM education, rebuilding communities after disaster strikes, honoring veterans. Online requests are what this company accepts if you don’t necessarily have personal ties to the company.

Engage Now Africa should have an online request sent in to [email protected]

Cotopaxi

This is a new outdoor company. This includes a variety of things although they are generally known for their clothing. They have a stated mission of alleviating poverty through three focuses: health, education and livelihood. A non-profit that adheres to these pillars may be eligible for

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funds. Also, the non-profit must have a thorough needs assessment and an established manner in which utility and milestones will be reached.

Cotopaxi accepts email applications however it may be beneficial to call on the phone and explain that Engage Now Africa Representatives talked with Cotopaxi officials at the Give Salt Lake conference this past October. After building that trust, it could be possible that future deals could be made. Cotopaxi informed us that their giving portfolio if full for 2016 but it still could be worth it to talk to them and keep the door open for future years. Contact information is [email protected] 844-268-6729.

Alliance Health

This company is local to Utah and was founded in the last decade. It focuses on bettering the health of chronically ill people including diabetics. By providing cheaper and faster delivery of medical supplies, thousands are helped each day. This company has no established requirements for donations and should be open to partnership. They are growing at an extremely high rate and philanthropy is generally new to them over these last couple years.

Engage Now Africa should contact them by phone, Contact name is Sierra Debry at 801-727-0080. First, talk to them about their connection with the underground railroad because they have done partnered projects in the past with Underground Railroad that might be similar to a mission Engage Now Africa has planned in the future. After that they will be more willing to listen to a petition.

Henry Schein

Henry Schein works in the medical field and has established guidelines for their philanthropic efforts. They only give to U.S. health-care licensed professionals or to organizations working with licensed professionals. The service must be at no cost to the patients that were predetermined to be in great need of said service.

Henry Schein works through their foundation and requires petitions to be emailed to [email protected] with any other questions to 631-390-8000. This contact information is directly to the Henry Schein Cares Foundation.

Goldman Sachs

This international company has it’s second biggest office here in Salt Lake City, UT. The company does many different projects regarding finances and consulting. They likewise give to causes that are linked to economic growth and community involvement. Donations are given through Goldman Sachs Give Fund. This fund is directed by retired employees and other high ranking officials who make decisions on where the fund will put its money.

The best way to contact would be emailing [email protected]. It is also possible to call; however, we have a hard time getting in touch with them. The number that could be called is (801) 741-1108. This is a general number to the Salt Lake Office.

Clearlink

Clearlink has no explicit requirements for donations, however by looking at their donation history you can find out what they could potentially donate for. For example, in the summer of 2014,

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employees of Clearlink raised 50,000 dollars to fund a clean water project in Rwanda. Engage Now Africa could potential partner with one of these fundraising efforts to fund some sort of project in the respective African countries where they work.

Contact Tyson Olcott at 801-424-0018 who is a Public Relations Manager with more questions or petitions.

Toms

This company has been one of the most influential companies in regards to matching donations. They are known for donating a pair of shoes to someone in need for every pair purchased. However, after resent analysis of the situation, Toms is looking to build of the economic stability of African countries rather than simply donate aid. This new outlook could provide opportunity for partnership with Engage Now Africa and their Micro-Finance Emphasis.

Email petitions to [email protected] and for more questions contact 800-975-8667. They should be able to direct you regarding other philanthropic efforts different than simply donating shoes.

GE

This company has given to several philanthropic efforts in the past in several different ways including grants, scholarships and matching gifts. They do require that the non-profit is recognized as a 501(c)(3) charitable organization.

This company is large like some of the previously listed corporations so an email is the way to contact them. The do work through a foundation so if the email is directed to the manager of their giving’s program, Kathleen Mayglothling, it may receive greater notice. The email is [email protected].

Donors Gaining donors and keeping them is the goal of every nonprofit. With Engage Now Africa, the donors they need to look for and keep will depend on their goals within the next 1 to 3 years. As for their financials they are fine, but in the long run looking for donors who will continue to donate will be something looking into if they want to make the next step in their nonprofit endeavors. With the research conducted we hope to answer the following questions:

What do you look for in a donor?

What kind of donor recognition do you participate in?

How have you been able to develop relationships with the community/donors?

How do you Retain Donors?

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My research has come from the nonprofithub.org, bloomerang.com, and an interview with Clean Water for the world (nonprofit organization)

What do you look for in a donor?

RelationshipsIn the beginning, if you don't have a relationship with the donor, the likelihood that they will actually donate is very slim. Look for donors who you already have a relationship with or could gain one in the future. Also try to find a donor that is just as passionate, if not more, about the work you are doing. The excitement is contagious if they are passionate they will not only donate money, but will be a sustainable donor.

SolutionsAnother item to look for in donors is people who are willing to create solutions with you, not just people who will give you money. The more minds on a problem the more potential solutions there will be. According to Nonprofithub.org there goal is to find donors who will invested more in there cause then just with financials, they want them to be engaged emotionally and mentally as well.

FocusOne thing to not look for in donors is people who will steer you away from your passion and mission. Donors may have strong personalities and a lot of influence in the community. Don't let that sway you from your projects and passions.

Source: http://www.nonprofithub.org/fundraising/get-keep-major-donors/

What kind of donor recognition do you participate in?

One item that the nonprofithub said about donor recognition is when a donor goes above what they usually give, make sure you go above what you usually do to say thank you. Don't just send them the same generic note, give them a call to say thank you.

Another item they said to capitalize on is when a donor is in the news or receives a reward to reach out to them and congratulate them.

Source: (http://www.nonprofithub.org/fundraising/5-cant-miss-opportunities-for-extraordinary-donor-engagement/)

How have you been able to develop relationships with the community/donors?

Social MediaOne of the best think a nonprofit can do is to stay connected on social media. That is becoming such a force in the nonprofit world and a way for an organization can stay in touch in a simple way with donors as well as the community.

According to bloomerang blog about friendships, one of the best ways to develop friendships is the same way that anyone would with any friend. With that a better way is to work harder at gaining a friendship with the donor rather than getting money from them. Ways of doing that is different for every donor, and it will take work just like building any friendship. In the long run the work will pay off.

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How do you retain donors?

Be very specific about how their money will be used. It is one thing to say thank you and be broad about what their donation will be used for, and another to tell them in detail what you plan on doing with the money they gave you. Not only will the donor be able to see where their money is going toward, but will be more willing to give in the future because they know that their money is not wasted.

Human Trafficking We feel that it is in Engage Now Africa's best interest to partner with other organizations when it comes to Human Trafficking. The reason behind this is that this type of work is very time consuming, stressful, and takes a lot of money to save even one person. There are many Nonprofits that’s only focus is fighting human trafficking, and Engage Now Africa could be more helpful, in that fight, if they contributed to those organizations as a partner.

Some of the nonprofits or organizations we feel Engage Now Africa could partner with are:

Operation Underground Railroad

Contact: The Underground Railroad Project 700 N Valley St. Suite B Anaheim, CA 92801, (818) 850-6146

Polaris

Contact: P.O. Box 65323 Washington, D.C. 20035, (202)-745-1001

Slavery No More

Contact: Slavery No More 23679 Calabasas Rd Suite 564 Calabasas, CA 91302, (818)-741-3101

Human Trafficking.org

Contact: Andrea M. Bertone, Ph.D., [email protected]

International Rescue Committee

Contact: 122 East 42nd Street New York, NY 10168 USA, +1 (212)-551-3000

Family Foundations The Sorensen Legacy Foundation

*First-time applicants are encouraged contact Steve before applying

Contact: Steve, Executive Director

Phone: 801-582-4483

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Email: [email protected]

Grants are reviewed on a quarterly basis.

1st Quarter deadline: December 1st of the previous year

2nd Quarter deadline: March 1st

3rd Quarter deadline: June 1st

4th Quarter deadline: September 1st

Apply online at http://sorensonlegacyfoundation.org/grant_seekers/apply_online

Willard L. Eccles Charitable Foundation

Contact: Stephen Eccles

Phone: 801-582-4483

Major areas of foundation interest:

Education, environment, social services, basic science, healthcare for the underserved

No deadline—grants are accepted year round.

Apply at http://wleccles.org/application-information/

*Applications that have the potential to make a positive impact in several of the foundation interests are particularly favored.

Brent and Bonnie Beesley Foundation

Contact: Brent Beesley

Email: [email protected]

Phone: 801-359-0297

No grant application.

Email [email protected] with details about your projects and how much you would be asking for. They have a lot of projects to fund but Brent said he would be willing to look at your request and see if it would be feasible.

Ruth Elanor Bamberger and John Ernest Bamberger Memorial Foundation

Contact: Eleanor Roser

Phone: 801-364-2045

Email: [email protected]

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Address: 136 South Main St, Suite 418Salt Lake City, UT 84101-1690

Application requirements:

Send six (6) copies of each of the following: A cover letter to Ellie Roser, Chair, Ruth Eleanor Bamberger and John Ernest Bamberger Memorial Foundation, describing your program and a list of your board of directors, any printed material that describes your budget, cost of your program, other sources of funding, 501(c)(3) determination letter and your latest audit report (6 copies). If you do not have audited financial statements, please submit a copy of your most recent annual financial statements, if reviewed or prepared by an outside source, or if these are not available, a copy of your latest Form 990. Grant deadline: Typically, the beginning of September*Check ruthandjohnbambergermemorialfdn.org for the updated 2016 deadline

The Katherine W. and Ezekiel R. Dumke, Jr. Foundation

Contact: Katherine Dumke

801-544-4626

Apply online between January 1st and February 10th

Online application: kandzdumkefoundation.org

The Ashton Family Foundation

Contact: Dee Buffington

Phone: 801-226-1266

Email: [email protected]

Grant deadline: February 1st

*Application is emailed to Jennifer.

Rotary International Rotary funds are currently out but the budget restarts in July 2016. Grants are a minimum of $35,000.

Next steps to get ready to apply in July:

- Choose a country/specific project for them to sponsor.

- The project must align with at least one of the following focuses:

Peace and conflict prevention/resolution Disease prevention and treatment Water and sanitation Maternal and child health Basic education and literacy

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Economic and community development

Contact Monty when you have chosen a project and he will help connect you with a local rotary club that can sponsor the project. You will need to fill out paperwork for the grant. It is helpful to have in-country staff to help fill out the paper for an individual project.

Conclusion We have all enjoyed this experience and the opportunity to learn more about Engage Now Africa, fundraising, grant writing, corporate giving, and nonprofits in general. Thank you for your continual guidance and help along the way. We hope this document gives you a jumpstart on your efforts to expand the impact of Engage Now Africa. You do wonderful work and we wish you luck in your future endeavors!

Malissa Richardson

Mark Brewster

Hayden Carter

Porter Johnson

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Appendix

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