Email this pageFundraising Toolkit - Guidelines for Disaster Relief Committees

Chapter Two: Fundraising Subcommittee Structure

Fundraising Subcommittee

The Disaster Relief Committee (DRC) sets up a minimum of two subcommittees namely, fundraising and claims settlement, depending on the number of members on the DRC. The membership of the subcommittees should be no more than five members.  The Fundraising Subcommittee is responsible for the planning of the appeal and the implementation of the fundraising plan through a variety of working groups that report to the fundraising subcommittee chair. 

The responsibilities include:

• Soliciting contributions and collecting money for disaster relief fund
• Recommending fundraising policies to the Disaster Relief Committee
• Organizing fundraising events and activities
• Preparing presentations and advertisements for press, radio and local displays
• Drafting all solicitation letters for corporations, institutions, community organizations, service clubs, etc.
• Reporting to the Disaster Relief Committee on the status of the fund- raising activities and the funds raised.

The responsibilities of the Fundraising Subcommittee Chair and the various working groups that could be useful in a typical disaster are outlined here.

Fundraising Subcommittee Chair

The Chair of the Fundraising Subcommittee is appointed by the DRC. The Chair is responsible for:

• Recruiting additional volunteers to the Fundraising Subcommittee (Please see the Volunteers section in Chapter Three of this document for more discussion on the special fundraising skills of volunteers.)  
• Ensuring that appropriate resources are available for the subcommittee to carry out its responsibilities
• Chairing regular meetings of the Fundraising Subcommittee
• Working with Working Group Leaders, to ensure their tasks are executed in a timely and effective manner
• Ensuring the Finance and Accountability Working Group works closely with the treasurer of the DRC to ensure all financial and accounting practices are followed 
• Reporting to the DRC on fundraising activities and progress
• Acting as one of the spokespersons for the appeal.

The Chair of the FSC may give a gift to the appeal and may solicit other DRC members for their own individual donations.

Working Group Leaders

The leader of each working group is responsible for overseeing the daily operation of their particular group. The working groups report to the Fundraising Subcommittee Chair. Specific responsibilities include:

• Recruiting an appropriate number of members to the working group
• Ensuring that appropriate resources are available for the working group to carry out its responsibilities
• Chairing regular meetings of the working group
• Working with working group members to ensure their tasks are executed in a timely and effective manner
• Reporting to the Fundraising Subcommittee on the activities and progress of the working group 
• Acting as a spokesperson for the appeal, if required by the subcommittee chair.

The leader of each of the working groups may give a gift to the appeal and may solicit members of each of the working groups for their own individual donations.

Finance and Accountability Working Group
This working group is responsible for designing, implementing and monitoring the process for handling monies collected through fundraising activities. This includes collection, banking and financial reporting, usually done by the municipality for the DRC.  One of the key tasks of this group is to ensure transparency and provide assurance to the public that all monies collected can be accounted for and are handled appropriately. This working group would have a close working relationship with the DRC treasurer.  The treasurer has direct responsibility for many activities that will involve this working group.

(See the duties and responsibilities of the Treasurer of the Disaster Relief Committee under Section Two of the Guidelines for Disaster Relief Committees, a publication of the Ministry of Municipal Affairs and Housing.)

Donation Processing Working Group
(Receipting, Acknowledgement and Recognition) 

This working group is responsible for designing, implementing and monitoring the process for receipting, acknowledging and recognizing all gifts to the campaign.  These tasks are usually done by the municipality.  While much of the day-to-day activities of this committee may be done by municipal staff, the committee is responsible for ensuring that appropriate procedures and guidelines are established and followed.

Marketing and Public Relations Working Group
This group of volunteers is in charge of developing materials for the fundraising campaign and information. This includes developing a close working relationship with local and provincial media. Suggested methods are included in a later section of this document.

Corporations Working Group
This group of volunteers identifies, cultivates and solicits corporate support for the fundraising campaign. Much of their work involves personal visits with prospective donors.

Community Organizations Working Group
This working group is responsible for the identification, cultivation and solicitation of community organizations such as service clubs, sports organizations, unions, ratepayer groups and faith organizations. Most community organizations use special events and other fundraising methods of their own to generate funds for the campaign. The working group must ensure that appropriate guidelines are in place to enable community organizations to operate freely, but within the framework of the broader appeal. Such guidelines would include third party event policies and gift acceptance, processing, acknowledgement and recognition polices. (For further details, see the administration section of this document.)

Schools Working Group
This working group provides area schools and boards of education with opportunities to participate in their own fundraising activities for the campaign. This type of activity is often welcomed as part of teaching young people social responsibility. Appropriate guidelines will have to be in place to ensure that activities are co-ordinated and monies are collected according to the policies established by the working group.

Individual Campaign Working Group
This working group cultivates and solicits individual donors. (A variety of solicitation techniques are described in Chapter Four of this document.)

Neighbouring Communities Working Group
This working group encourages the participation of neighbouring communities not directly affected by the disaster to become donors and participate in fundraising activities of their own for the campaign. This committee works closely with other committees where their expertise may be appropriate for neighbouring communities.

Organization Chart

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Chapter Three: Elements Required for Fundraising Success

Volunteers

One of the first tasks of the Fundraising Subcommittee will be to recruit sufficient volunteers to perform the many tasks involved with fundraising.

Volunteers are the backbone of any successful fundraising operation. Early success in this campaign will be determined by the ability to recruit the right volunteer leaders - those with the ability and willingness to exercise influence on other volunteers and prospective donors. These leaders must also be willing to commit both time and financial support to the campaign.

The most prevalent reason why anyone gives to a cause is because they are asked to give by someone they know and respect. Volunteers make appeals with credibility, clout, connections and free labour. Volunteers with passion for the cause and dedication to their community donate not only their time but their affluence and influence.  Donors rarely give when asked by paid staff or fundraisers. It takes volunteers who have clout with their peers to get substantial gifts.

Volunteers with special skills and connections are required for the DRC Fundraising Subcommittee and to assist the working groups.

These skills include:

• Connections to local business, provincial and national corporations
• Connections with service clubs, church groups, sports clubs and other community organizations
• Communications and public relations background or connections
• Clerical and administrative skills
• Financial and/or accounting skills
• Communication and presentation skills
• Access to creative and printing services
• Access to meeting and transportation facilities.

Who are Your Prospects

The first step in soliciting gifts is knowing whom you are going to ask. Potential donors must be identified. These include individuals, corporations, community organizations and foundations that are known to be sympathetic to the cause, have a direct/indirect involvement with the disaster, or have a history of giving to similar causes and are motivated and capable of making a gift.

The names of these potential donors can be collected from a variety of sources.

• Municipal offices will have lists of service clubs, community organizations and businesses with local business licenses.
• Chambers of Commerce will have lists of local corporations and unions.
• Volunteer Bureaus will have names of individuals willing to provide help in the community.
• School Boards will have lists of schools in the area.
• Local Ecumenical Councils will have the names of faith groups.
• Phone directories will have names of businesses and local service organizations.
• Fundraising Subcommittee members and elected officials will have names of individuals with a reputation for being community-minded.
• A list of Ontario municipalities is in the Ontario Municipal Directory, which is published by the Association of Municipal Managers, Clerks and Treasurers of Ontario.

Through discussion, research and evaluation, the subcommittee decides which potential donors should become prospects and assigns each prospect to the appropriate working group. Prospects fuel the fundraising machine. The availability of identified, qualified and motivated prospects is essential for any successful fundraising operation.

Developing a Fundraising Plan

Any successful fundraising operation must start with a strategically crafted plan, one that is viable and will produce clear measurable results. This plan will act as a blueprint or roadmap for the Fundraising Subcommittee as it moves towards meeting the financial goals needed to support ODRAP claims.

The Fundraising Subcommittee is responsible for developing the plan and ensuring that it is continually updated and followed stringently. Elements of the plan should include:

• A monetary goal and rationale for the goal based on the projected number of claims and estimated settlement amounts
• The resources required including collaborations with other organizations (as necessary
• Fundraising methodologies or tools to be used such as special events, direct mail, advertising and public relations, corporate payroll deductions, etc.
• Roles and responsibilities
• Timelines
• Authority and reporting structure
• Recognition opportunities
• Stewardship and gift acknowledgement.

The plan must be vetted by the DRC and must have approval of all those involved in leading the plan’s implementation. Elements of the plan are discussed throughout various sections of this document.

Sample Task List and Timeline

Major Activity Timelines

Building Your Case for Support

The case for support is your story. It’s who you are, why money is needed and how you will meet that need with the money you raise. The case for support provides the basis for all other published materials. It sets the tone, style and flavour of appeal communications, and speaks consistently through media releases, presentations, brochures, newsletters, donor reports and more.

An effective Case for Support is like an investment prospectus for a business. It is designed to attract donors who are, after all, investors. The case also must move people both intellectually and emotionally.

The right facts and logic must be outlined, but the facts alone will not carry the day. When a case is written for donors, it has to touch them where they live and breathe. They need to feel that investing in the appeal will make life better for them, their children, their neighbours and their friends. In order to move people at this level, it is essential to make the case larger than the immediate need.

The best cases present a vision of the future of the community, one that people find attractive, achievable and worth working for. The case demonstrates how donor participation can make a special contribution to building that future. Prospects must be inspired and challenged to play a part in making it happen. They should feel that the time for action is now.

The case for support should be short, easy to understand and compelling. The case for disaster-related fundraising must address the following elements:

• The reason for need (describe the disaster and the needs that it has created for people)
• How much money is needed
• How the money will be used and who will determine its use
• Who is on the Disaster Relief Committee, their authority and why they are responsible for fundraising
• What guarantees there are that the money will be used for the purpose it was given
• What sort of recognition will be given
• Will receipts be issued for tax purposes, by whom and when
• How long will the appeal last
• What happens if more money is raised than what is required
• Where to go for further information.

Sample Case for Support

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Chapter Four: Fundraising Activities

Establish Alliances

The more people and organizations involved in a fundraising program, the easier the task becomes. There are many organizations, corporations and community groups that have the people power and inclination to help their community. Involving these groups in the fundraising effort will save time and increase chances for earlier success.

It is important to work in collaboration with others early in the process and set out in writing the expectations and responsibilities of all parties. This ensures no confusion and prevents potential conflicts, especially over the handling of funds.

Organizations willing to play a role in community fundraising are outlined in this section

Salvation Army
The Salvation Army’s mission in Emergency and Disaster Response is to minister to the emotional, spiritual and physical needs of survivors and emergency management workers.  It is capable of all five emergency social services – emergency feeding, emergency clothing, emergency lodging, registration and inquiry, and personal services. It also provides administrative services for the organization of volunteers and management of emergency shelters.

The Salvation Army’s policy and its local membership allow it to co-operate with international relief agencies and governments alike.

In the wake of a disaster, whatever money raised by the Salvation Army in any jurisdiction is used for victims in that jurisdiction. Any leftover funds would be used for future needs in that community.

Canadian Red Cross
The Red Cross is the default charity for many Canadians wanting to contribute to help those affected by a disaster. The Red Cross has well-established fundraising techniques and infrastructure enabling it to collect significant sums of money within a relatively short period after a disaster. However, it is essential that an early relationship be established between the DRC Fundraising Subcommittee and the Red Cross to ensure that funds raised can be used for ODRAP purposes. The Red Cross does charge an administrative fee to collect and process funds and will want to use any money not required by ODRAP for Red Cross relief programs in other areas.

Canadian Tire Corporation
The Canadian Tire “Foundation for Families” was established to provide a helping hand to families in crisis by ensuring life’s basic needs are met: food, shelter, clothing and essential goods.  Canadian Tire encourages its dealers to become involved in community disaster relief; dealers have a local budget to spend on charitable causes according to set criteria. In addition to donating product, they are willing to consider using their stores as donation drop-off points, and encourage their staff to become involved in special events and other activities to help raise money.

Depending on the nature and scale of a disaster, a corporate donation may also be considered. Canadian Tire also directs some of their charitable contributions to established national disaster relief agencies and service organizations. 

Tim Hortons
This company supports its franchisees in being active in community disaster relief and fundraising through the donation of product and facilities. Each storeowner has the ability to become involved in fundraising activities, and corporate financial support may also be considered. Communications and public relations staff at their corporate headquarters will also help with fundraising promotion where local stores are involved.  Tim Hortons also supports established national disaster relief agencies and service organizations. 

Liquor Control Board of Ontario
The LCBO will use its facilities and infrastructure to support local disaster relief and fundraising. They will also consider using part of their extensive advertising and promotion budget to support local fundraising appeals.

Bell Canada has an employee fund that provides up to $2,500 to non-profit groups where Bell employees donate 50 hours or more of volunteer time.  This is potentially of assistance following an emergency, where community-based fundraising is taking place. 

Some entities are registered charities and, as such, are able to issue receipts for income tax purposes. They can also become collection agencies for the committee. Examples of potential collection agency arrangements would be the Canadian Red Cross, the Salvation Army and most incorporated municipalities. If the committee enters into an arrangement with such an organization, an agreement must be in place before any fundraising is undertaken by the organization. The organization or agency is then able to issue receipts for all funds they receive and would remit them to the committee in lump sums on a regular basis (e.g. weekly). If agency costs are involved as part of the aforementioned agreement, the agency’s eligible administration expenses may be treated as administrative expenses of the committee.

If municipalities serve as collection agencies, their respective treasurers can issue official receipts for income tax purposes. When a municipality remits a lump sum for several donations, the committee is required to give a receipt to the municipality for the lump sum only.

Marketing and Public Relations

As previously stated, the faster a fundraising program kicks in after a disaster, the greater the potential for success. This is due in part to the amount of unsolicited media coverage being concentrated on the disaster event. The duration and quality of such coverage is directly related to fundraising success. As soon as media coverage declines, the ability to raise money becomes more difficult and time consuming. Therefore, it is important to establish an early working arrangement with local media and ask for continuing coverage of fundraising related activities after the interest in news related to the disaster fades. This ongoing coverage should be considered as the media’s sponsorship support for the community’s fundraising efforts.

Local community-based media will be more willing to participate in fundraising support than provincial or national media. However, it is again important to make early contact to ensure maximum participation.

The Ontario Community Newspaper Association has indicated its encouragement for member newspapers to be supportive of ODRAP related fundraising activities. Their support could include donated advertising space, reduced advertising rates, assistance with design and graphics for fundraising promotional materials, and promotional inserts including donation appeal envelopes.

Media relations is different from advertising - your objective is to gain editorial coverage for your cause.  Editorial coverage includes news articles or photos in the paper, or stories you hear on the radio or TV that talk about or show your efforts to raise money, such as an article on a fundraising event or a photo of a cheque presentation.  These types of editorial coverage and news stories are considered more credible than advertising.  There is a process to media relations. Although it is not a complicated process, it is important to follow it.  

Step 1: Develop a Media Relations Plan

To begin your media relations efforts, start with communications planning. Communications planning is a process that helps clarify who you are trying to reach, with what message, and why. By using this method, you can increase your chances of getting media exposure and increase the effectiveness of the messages you send out through the media.

A Media Relations Plan has three parts:

1. A target audience. Who are you trying to reach? (Donors, community leaders, and community organizations are examples.)
2. A communications objective. What is your purpose for accessing the media? (To share information, to offer opportunities for others to help, to communicate an event. You may have more than one objective.)
3. A message to the media. What are you trying to convey? (You need more support; you want people to come to your event. You must have a clear idea of what you are trying to share with the public.)

Step 2: Identify Your Media Options

In order to implement a media relations plan, your team needs to identify all media options available locally, provincially and sometimes nationally, depending on the size of the disaster.  A media list may be obtained from the Communications Branch of the Ministry of Municipal Affairs and Housing via your Ministry’s regional contact.

• Media Directories. There is a good chance that a media directory, listing all media options in your local community, is already available at your local library, at municipal offices, through the local newspaper office, or local radio station.
• Use Your Knowledge & the Yellow Pages. Use your committee's knowledge of media resources in your community and the yellow pages to list all media resources you have access to. Examples might include daily and weekly newspapers, radio stations, and TV stations.
• Listing Contacts. Call the media to find out who your contact would be, what opportunities are available for publicity, and what the requirements or guidelines are for publishing or interviewing.  Typically your contact at a daily or weekly paper would be the editor, the assignment/city editor at a radio station, the news editor and assignment editor for TV.  However, use existing contacts if you have already established relationships. 

Step 3: Approach the Media

Different methods are typically used with different types of media because each outlet may have a different purpose for the material you are trying to present.

Follow these guidelines:

Look for the hook. Each media outlet has a different "hook." The media thinks in terms of broad application, so your committee must think of why the general public would care about what you have to say.

Give them what they want. Provide materials that are appropriate for the medium you want to use.

These include news releases, media advisories, interviews and photos.

• News Releases (see sample below):

  Headline. Your headline is the first thing an editor will read. You want to draw the editor in, using your headline as a "hook." Your headline should be informative and inviting, though never sensational or shocking.
  Date. Date your news releases for the day you plan to distribute them. News releases with last week's date on them could mistakenly be perceived as "old news".
  Lead. Your lead is the first sentence of your news release. Like the headline, your lead has to be both catchy and informative.
  Body. Your body paragraphs should answer the questions, What? Why? Who? When? Where? How? For instance, if your news release announces an upcoming event, the body of the release explains why this event is being organized, who's organizing it, and gives details on when and where.
  Contact information. Always include information on how to reach you with any questions - accessibility is crucial for a reporter to follow up. The most basic contact information should be a name and a phone number. You may also choose to include a second number, a fax number, an email address or a web page address.

• Media Advisories. An advisory is used to invite or advise media of an event such as a news conference, special event, or cheque presentation. It is a shorter, more concise form of a news release that answers the questions: What? Why? Who? When? Where? How? It is especially useful if a photo or TV appearance opportunity exists.

• Interviews. Interviews can be secured through radio, TV, or newspaper outlets. "Experts" recruited by your committee should be appointed to provide information and perspectives on the current issues and events.

• Photos. Photos with captions can be used to highlight and add emphasis to your news release, media advisory, or feature story. Newspapers will often run photos that tell a story or show an important event. Inspire yourself by looking at photos in the newspaper.

Check the Timing. Timing is everything. Editors and producers want information that is current, timely and relevant.

Step 4: Keep it Going

In order to make your relationship with the media successful, be helpful – give them information they can use, that meets their requirements, and is within their deadline. Help them do their job of getting information out to the community. Be a resource that media can call on when they need information. Give them names and phone numbers of individual "experts" on your committee and what their areas of expertise are.

Step 5: Give Thanks

Consider the media to be like any other donor when your campaign is wrapping up. Be sure to send a thank you letter to let them know how the coverage helped ensure the success of the committee in achieving its goals.

Sample News Release

Make It Easy To Give

The majority of funds raised will come from individuals wanting to help their friends, neighbours and fellow citizens by making a direct gift of money. Accordingly, mechanisms must be set up to enable this generosity an outlet.

The more locations available in the community for people to leave their donation, the more convenient it will be for people to give. Locations such as municipal offices, banks and retail outlets are ideal because of their experience in handling cash. They also provide a sense of confidence for donors that their gifts are secure and will be used appropriately. However, the larger the number of drop-off points, the more difficult and time consuming it will be to get the funds into the ODRAP bank account.

Most chartered banks are willing to assist with cash collection. Arrangements can be made through the Canadian Bankers Association to co-ordinate donation drop-off at a number of their member branches within a community. In the case of smaller disasters, arrangements are best made with local bank managers. Banks often issue temporary receipts for funds they receive on behalf of the DRC, but they are not eligible for tax purposes. Official receipts must be issued by the committee (please see section on “Issuing Receipts” in Chapter Five) when the funds are received from the bank.

More and more people feel comfortable making donations over the phone using a credit card. Early arrangements should be made to establish a “1-800” disaster help line. Arrangements will also have to be made with an organization with call centre capacity, such as a volunteer centre, or a retail operation familiar with processing orders. Bell Canada is willing to help with both and can do so in a timely manner. Bell also can establish a “1-900” service where people call a specific number and a predetermined donation amount ($25, $50, $100) is automatically added to the individual’s regular phone bill. Bell then remits the amount to the DRC.

Arrangements can also be made with major credit card companies to reduce or eliminate the processing service fee charged on credit card donations.

Similar to donations by phone, giving via the Internet is becoming very popular.  Canadahelps.org facilitates online giving using electronic fund transfer (EFT) and electronic communication methods. Using EFT, all funds, minus the standard credit card transaction fee, are transferred directly to the charity’s bank account. E-mail communication provides the charity with real-time reporting and notification of each donation made on the site. While www.canadahelps.org lists most charities, only those that register can use their services, download donation data, and update their profiles on the portal.   

Arrangements can be made with a web design company to design a secure “disaster website” to collect donations and provide news and information about the disaster, ODRAP and fundraising activities. Again, Bell Canada may be willing to help establish and operate such a service.

The following outlines the information architecture of a website developed for the purposes of a disaster relief effort. The general content is listed for each section. 

Suggested Website Information Architecture

Suggested Website Content

Donations by Mail

The majority of gifts will come through the mail. Therefore, it is essential that an appropriate official donation address be assigned as soon as possible. Return envelopes and pledge forms should be printed and made widely available through direct mail and newspaper insertion. It is not necessary to use a “postage paid” return envelope.  Most donors are very willing to buy a stamp to ensure that as much of their donation as possible is being used to help others.

Information about all of these giving vehicles must be well-publicized early on in all disaster media releases and promotional vehicles used for fundraising.

Asking for Donations

Direct Response

Depending on the scale of the disaster and size of the geographic area affected, direct response fundraising may be considered a useful tool. Direct response involves sending information about the fundraising appeal including “an ask for support” to people’s homes or places of business. The information is usually sent by mail, through a commercial household distribution service, or as an insert in newspapers or other publications. It includes a method by which the individual can respond directly, such as a pledge card and return envelope, or a telephone number and website address where donations can be made by credit card.

Addressed Mail

The most effective form of direct mail involves personalized letters sent directly to individuals. This is also the most expensive form of direct mail, and takes time and effort to produce. However, there are many direct response firms that specialize in producing this type of material and can have a program up and running within a relatively short period of time. The Ministry of Municipal Affairs and Housing cannot recommend any individual direct response firm.

Several Ontario-based direct response firms include:

• Informco
• Stephen Thomas
• Blakely & Associates
• A&L Mailing Services.

The names of other direct response companies can be found at www.charityvillage.ca.

Non-Addressed Mail

An inexpensive method that can be used to distribute a direct response device to every household is non-addressed or bulk mailings. This can be done as a “Dear Neighbour” letter distributed through Canada Post, or as an insert in a local community newspaper.

Experience shows that addressed mail outdraws non-addressed mail by five to one. Regardless of the delivery method, however, response rates should be appreciably higher for a natural disaster community appeal.

Sample Donation Letter

Personal Visits

The most effective method of raising funds is through peer-to-peer solicitation. If you are asking an individual, a corporation or an organization for a substantial gift, you must make the solicitation in person. People respond to people asking for support more than any other form of fundraising. It is easy to ignore a letter or newspaper appeal. It is much more difficult to say no to someone you know and respect. If someone takes the time and effort to visit a donor, it signals the significance of the request for help and causes the donor to seriously think about the request.

In an ideal fundraising world, every donor would be solicited from personally. With a limited number of volunteer solicitors and a large number of prospects, however, a process known as prospect reviewwould be helpful.

Prospect review is the confidential evaluation of prospective donors through thoughtful study, discussion and analysis. It should be undertaken by members of the Corporate, Community Organization and Individual Working Groups.

The role of prospect review is threefold: to qualify, evaluate and determine a pathway to each prospect.

The first task is to qualify each prospect, separating them from potential donors. A qualified prospect must have the financial capability to make a donation. He or she should have some rationale for giving to the cause – a philosophical rationale, if not active interest or involvement with the cause. Finally, the prospect should have some history of giving to other similar causes.

Evaluation, also called rating, is a dollar figure assigned which the committee hopes a prospect may be capable of giving, assuming that the prospect is interested in the case and motivated to give by the solicitor and campaign.

What you ask a particular prospect to give should be based on what he or she could give, if properly motivated and asked by the right solicitor. The key is what the prospect is capable of, not what you think they will do. When meeting with the prospect, the amount suggested in the request is referred to as a “think about” figure. It is a figure that is proportional to what others in similar financial circumstances are being asked to consider.

The final step in the review process is to determine the most appropriate pathway to the prospect. The ranking of a prospect is decreased if a clear path cannot be identified.

Prospect evaluation is a sensitive and time-consuming process, but an essential one. To summarize, the prospect review process:

• Identifies, qualifies and evaluates prospects
• Demonstrates that not every prospect will warrant a personal call; for some, a letter will suffice
• Provides a “think about” figure for each prospect
• Demonstrates that the appeal can be won, “on paper”
• Identifies prospect linkages and pathways
• Identifies new prospects through discussion
• Identifies the best solicitor and strategy to approach the prospect
• Raises the sights and ensures donations are proportionate to the goal
• Identifies lead donors who will be used to inspire others.

Special events are the default method of raising funds for many organizations. Concerts, dances, picnics, garage sales, bake sales and the like are the tools that most think of when faced with having to raise funds within a community. While effective at involving people, special events are not the most cost efficient way to raise money. Special events consume large amounts of volunteer time and do not necessarily generate the amount of funds that could be raised using other techniques, as previously discussed. However, special events do raise public awareness for an appeal, build a sense of community participation and often inspire others to become involved in further fundraising activities.

The best kinds of special events are those that are conducted by other organizations on behalf of the Fundraising Subcommittee. In many cases, a special event is all some third-party organizations are willing to undertake or are capable of undertaking.

Service clubs, community groups, corporations, schools and other organizations often enjoy and reap other rewards from supporting local causes. Every effort should be given to encourage and recruit third-party fundraising activity.

To avoid confusion and misunderstanding, the Fundraising Subcommittee must develop third-party activity policies and protocol. These should include:

• Timing and location of an event
• Participation of Fundraising Subcommittee members
• Accountability for funds
• Promotion
• Overlap with other organizations conducting similar events
• Recognition
• Acknowledgement and receipting of donations
• Responsibility for costs and other liabilities
• Insurance
• Ticket sales and cancellation policies.

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Chapter Five: Administration

It is essential that detailed policies be developed for the handling of donors and donations. Development of these policies, as previously mentioned, should be the responsibility of the Finance and Accountability, and Donation Processing working groups in conjunction with the Treasurer of the DRC. The following is an example of such policies. They are meant to be examples only. The DRC will have the ultimate authority to approve any policies proposed by the sub-committee.

Sample Financial Policies and Guidelines

The following financial policies have been developed for this campaign:

• All gifts are unconditional and for use as designated by the DRC and cannot be earmarked for a specific project or geographic area.
• The campaign will accept all financial gifts. Only financial gifts will be eligible for matching funds from the Ontario Disaster Relief Assistance Program.
• In-kind donations will be directed to other agencies and organizations that are able to receive and distribute such donations, such as the Salvation Army and local food banks.
• The FSC is authorized to accept gifts from any source, provided there are no conditions attached that run counter to the policies and values of the DRC, municipality or Ministry of Municipal Affairs and Housing.
• Pledges containing unusual features will be submitted to the Finance and Accountability Working Group to make recommendations to the FSC for their approval.

In order for donors to seek tax relief as a result of making a donation to the campaign, an official receipt must be issued by an incorporated municipality or registered charity. These include the DRC (when it registers with Canada Revenue Agency (CRA), see below for details), and collection agencies or organizations as previously mentioned. In some cases, depending upon the size of the disaster and the number of municipalities involved, the easiest way to issue receipts is to enter into an agreement with the involved municipality or municipalities. This eliminates the need to apply to CRA for a charitable number, which can take several weeks or months. It also accelerates the process of issuing receipts. 

Since most municipalities do not have the staff or facilities to handle many  donations, the municipality may have to arrange for additional staff.  These administrative costs of the DRC will be paid by, or provided for directly by the municipality or designated municipalities, or cost-shared between the province and the municipality.

Official receipts should be issued in triplicate.  The original copy is the donor’s copy; the second copy should be filed in alphabetical order; and the third copy should be filed in numerical order as an audit trail.

Receipt numbers for each contribution should be recorded on the daily deposit listings, even when the receipts are prepared some time after deposit.  The daily deposit listings should include complete names, addresses, postal codes, and amounts.  Allow space for later recording of the receipt numbers.

Organizations established to provide financial and material relief to the victims of natural disasters or sudden catastrophes (e.g. floods, ice storm) can qualify for registration as a charity under the following category of charitable purposes – other purposes beneficial to the community in a way the law regards as charitable.

Information on the definition and class can be found at http://www.ccra-adrc.gc.ca/tax/charities/policy/csp/csp-d13-e.html

Information on registering as a charity can be found under the Charities section on the CRA website.  The website provides a step-by-step process and provides all forms, guidelines and information required. See:  Registering a Charity for Income Tax Purposes, T4063.

The CRA process for applying for a charitable status can take several weeks or months. It is recommended that the application be sent with a cover letter indicating “Priority: Disaster relief request” and be faxed to (613) 952-6020.

Alternatively, and as discussed in the preceding page, the Fundraising Subcommittee would make an arrangement with the municipality for the issuance of official tax receipts, as municipalities are defined as qualified donees under the Income Tax Act, and have the ability to issue official tax receipts.

Contents

The information below is taken directly from CRA site

A charity may issue official receipts only while it is registered and must not issue receipts for funds that it will not itself be responsible for spending. Part XXXV of the Regulations requires that each official receipt that a charity issues to acknowledge a donation must contain at least the following:

• A statement that it is an official receipt for income tax purposes
• The charity's registration number, name and address in Canada as recorded with Canada Revenue Agency, Charities Division
• The place or locality where the receipt was issued
• The day on which or the year during which the donation was received or, where property other than cash is received, the actual date of receipt
• The day on which the receipt was issued when it differs from the date of the donation
• Amount of the gift
• The name and address of the donor.

Each such receipt must be prepared at least in duplicate (though triplicate is recommended. Charities are required to keep on file a copy of every official receipt issued an extra copy could be kept for audit purposes, signed by an authorized person, and bear its own serial number. In addition, where the donation is a gift of property other than cash, the fair market value of the property at the time the gift was made, as well as the date of the gift, a description of the property, and the name and address of the appraiser (if any) of the property, is required. For further information consult the current version of IT-297, Gifts in Kind to Charity and Others.

Some charities issue an extra copy of the official receipt or issue a temporary receipt. Where this is done, the extra copy or temporary receipt is not to include the registration number of the charity and must contain a notation to the effect that "this copy is for your information only and is not an official receipt for income tax purposes."

Control of Receipts

Charities are expected to guard against the unauthorized use of official receipts. Most charities arrange through a printer for a supply of blank, serially-numbered receipts to be on hand at any given time. The charity must control the use of its receipts and, in the event of lost or stolen receipts, should notify Canada Revenue Agency, Charities Division, at the address noted below. It may be necessary in such circumstances to cancel the registration number and obtain a new one from the Department.

Charities Division
Canada Revenue Agency
5th floor
400 Cumberland Street
Ottawa ON  K1A 0L5

Facsimile Signatures

The use of a facsimile signature is permitted under the following conditions:

• The receipts are distinctively imprinted (usually by a commercial printer) with the name, address, and registration number of the charity.
• The receipts are serially numbered by a printing press or numbering machine.
• All unused receipt forms are kept at the charity's Canadian addresses.

The requirements with respect to the contents of official receipts as discussed above are applicable whether or not a facsimile signature is used.

Lost or Spoiled Receipts

To replace a lost official receipt, a charity may issue a replacement which must contain all required information (see Contents Section in the preceding page) plus a notation to the effect that "this cancels and replaces receipt # (insert the serial number of the lost receipt)." The charity's copy of the lost receipt must be retained and marked "cancelled". In the case of a spoiled receipt, all copies must be retained and marked "cancelled," and another receipt may then be issued.

Date of Issue/Date of Donation

The "date of issue" is the date on which the receipt was prepared. There are no regulations requiring the issuance of official donation receipts within a particular time frame, but it is suggested that they be issued at least by the last day of February following the year during which the gift was made. The more important date is the date of the donation. Gifts received after the end of the year may not be added to the previous year's donations unless the gift was postmarked in the previous year.

Computer Generated Receipts

Computer-generated official donation receipts are acceptable provided these are legible and the integrity of the computer data entries is sufficiently guaranteed. Such guarantees include the circumstances under which the data are entered, stored and protected against alteration. Protection against unauthorized access is a key security precaution.

Sample Donation Receipt

Saying Thank You

It is only polite to thank someone for making a gift. But it is also important to build momentum for the campaign, and to maintain an atmosphere of transparency for the campaign. Donors who are thanked in a prompt fashion tell others about the positive way they were treated and are sometimes inclined to make another gift or encourage others to do so. There will also be fewer questions about how money is handled in the campaign.

The following is a sample donor acknowledgement policy.

Donor Acknowledgement Policy

Gifts and pledges will be acknowledged in the following manner:

1. When a commitment is officially received by the Finance and Accountability Working Group or designate, acknowledgement will be mailed to the donor within a two-week period.
2. The Donation Processing Working Group is responsible for all data entry and issuing thank you letters and receipts for income tax purposes.
3. Upon the FSC receiving a gift or pledge payment, the donor will receive a tax receipt accompanied by a thank you letter from the FSC Chair.
4. Upon the FSC receiving a pledge, the donor will receive a letter from the FSC Chair confirming the details of the pledge as outlined by the donor.
5. Upon the FSC receiving a pledge with payment, the donor will receive a tax receipt accompanied by a letter from the FSC Chair confirming the details of the pledge as outlined by the donor.

• A letter of appreciation will be sent to all significant donors by the Chair of the DRC or designate.
• The key volunteer in the solicitation of a significant gift will be encouraged to send a thank you letter to the donor on his or her personal/corporate letterhead.
• All gifts will be recorded on the campaign database.
• Regular financial reports on all levels of giving and campaign totals will be produced by the Finance and Accountability Working Group and be made available to the FSC.

Sample Thank You Letter

Record Keeping

Once again, for transparency and accountability, accurate records of all financial transactions must be maintained by the Finance and Accountability and Donation Processing Working Groups, in conjunction with the DRC Treasurer. In order to comply with acknowledgement policies, such as the one suggested above, all donations must be recorded in a central database.

The committee may contract with the municipality for data entry services and the ability to use an existing database used by the municipality. This could be beneficial if the municipality will also be issuing the official tax receipts. Otherwise, volunteers and paid staff will have to be engaged for the process. For security and continuity purposes, it is recommended that all work be supervised by paid, bondable staff. Costs related to donation processing will be paid by, or provided for directly by the municipality or designated municipalities, or cost-shared between the province and the municipality.

Depending on the number of anticipated donations, a simple database using Microsoft Access may be suitable, or specific fundraising software may have to be purchased. Some of the most popular fundraising software packages available in Canada are: 

• ETapestry.com Inc. (eTapestry.com)
• Blackbaud Inc. (Raiser’s Edge)
• Campagne Associates (GiftMaker Pro)
• FEOM Holdings Inc. (EZ-Fund)
• Income Manager (Income Manager2000)
• JSI FundRaising Systems Inc. (JSI Paradigm)
• KTS Systems Group (giftTRAQ)
• SofTrek (PledgeMaker)
• Advanced Solutions International Inc. (iMIS Fund Raising).

Getting Help

Establishing a major fundraising program in a few days may seem insurmountable overwhelming to many. However, the emotion and energy created by a community devastated by a natural disaster inspires people to accomplish tasks with speed and enthusiasm that would normally seem daunting.

Nevertheless, much has to be accomplished and those involved in the early days of a disaster will face a steep learning curve.  There are many professional fundraising consultants across Ontario with the skills and experience to guide the Fundraising Subcommittee through the planning and implementation stages of a fundraising campaign. Members of the FSC are encouraged to see what fundraising consulting services may be available in their community. The best listing of such services is available online from Charity Village.