Fundraising for administrative costs
The spring 2006 issue of the Stanford Social Innovation Review had a great case study on a unique fundraising approach taken by the United Way of Central New Mexico. By giving donors more control, they were able to fundraise for administrative costs, raise more overall, and make their donors happy.
Here’s what they did. They created a “Corporate Cornerstones” program which asks corporations to fund their administrative costs. The companies receive excellent recognition and the opportunity to give the United Way advice on management and business issues. The agency is then able to say that 100% of an individual’s donation goes toward program delivery.
The results of this approach have been impressive! Corporate giving is up by 132% since the program started (compared to being down for the United Way nationwide) and individual gifts are up by 112%.
The program resulted from some research the agency had done, which found that donors were concerned with admin costs and their lack of control over how donations are spent. United Way managers assumed it would be possible that business leaders would understand the importance of well-run administration. They were right. Donations through Corporate Cornerstones now exceeds what the agency needs for administration!
What is most interesting is that only one other United Way affiliate has copied the program (in Boise, Idaho). Why not try it?? I would love to see someone outside the United Way world try this and see what happens.
You can download the full article here.
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