World Animal Foundation
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Fundraising
For the Planet &
Its Animals
Much of the work you will do as an activist
requires no more (and no less) than caring
and motivation. On the other hand, making
fliers, setting up tables, and forming groups
also requires some money to cover costs.
TARGET YOUR EFFORTS
People like to know how their donations will be
used. It's always more effective to target your
fundraising efforts for a specific purpose. Make
it clear that proceeds from your raffle or flea
market will be used to put an anti-fur ad on TV or to fund the distribution of planet preservation fact sheets.
ACTIVITIES THAT RAISE FUNDS
Before we describe the various means of raising funds, a word of caution: Virtually all fundraising has tax- and financial-reporting consequences. Donation and sales revenue is generally taxable unless you qualify as a tax-exempt organization. Even if you are tax-exempt, you must still collect and remit to the government sales tax on many types of sales. Also, most states require charities to register as soliciting organizations and to file annual reports. (Note that automatic exemptions may exist under some of these rules for small organizations.) Check with your state taxing authority, secretary of state, attorney general, and consumer affairs agency. It is also a very good idea to have a CPA on your managing committee!
Product sales: If you have some money to invest, you can purchase animal rights T-shirts, buttons, bumper stickers, and books to sell when you set up tables and hold meetings.
Food sales: Vegan bake sales can do well either as an independent fundraiser or when combined with another event. Groups should appoint someone to be in charge and to get each member to contribute a baked item (or try offering tofu hot dogs or veggie burgers). Choose a busy spot or a craft fair or festival and check ahead with the police and health department about permits and food regulations.
Garage sales: You'll make more money if your goods are clean and well displayed. Tag clothing with size labels and make sure prices are clearly marked.
Thrift shops: Set up an ongoing thrift shop at a church or unused garage. You'll need a staff of volunteers to sort, price, display, and do the sales and bookkeeping.
Annual sales: Restrict your sales to either books or clothing and hold the sale at the same time each year. Plan ahead to get a good location and publicize the event. If you have a good spot for storage, you can collect donations year round.
Raffles: The two keys to a successful raffle are a good prize and lots of ticket sellers. Print the name of your group, the date and place of the drawing, and a list of the prizes you're offering. Make sure ticket sellers always have enough tickets on hand. Try setting up a table at the supermarket on Saturday or outside a church to sell tickets during the weekend. Ask local merchants to donate prizes or have a 50/50 raffle, meaning that the prize is half the money you collect. Make sure you comply with local solicitation regulations.
Sponsored events: In a walk-a-thon or bike-a-thon, for example, a group of people commit to participating in the event, and they then ask family, friends, and local businesses to sponsor them for a certain amount (such as 50 cents a mile). Choose a safe route and check it first with the police. You'll need to prepare sponsor forms with the name and address of the group, the purpose of the event, the date and time, and the route. Also include columns for the sponsor's name, address, and amount pledged per mile (establish a minimum). Encourage local athletic groups to participate.
Do chores and odd jobs: Have all your members spend a Saturday cleaning, painting, raking leaves, or putting up storm windows. Advertise ahead of time and schedule as many jobs as possible.
Recycling: Many communities have recycling facilities that will pay you for cans, bottles, or other items.
Give up something: Ask people to give up smoking for a week or lunch for a day, and donate the money they save.
Miscellaneous: Place donation cans in stores, go Christmas caroling for donations, sell heart-shaped vegetarian dog biscuits on Valentine's Day, have a car wash ... use your imagination!
An excellent resource book is How to Shake the New Money Tree by Thomas G. Dunn, 1988, Penguin, New York.
ASK FOR GOODS OR DISCOUNTS
Another kind of fundraising effort is to ask for something other than money. Ask print shops, typesetters, or art supply stores if they will give you a discount. Ask local businesses to donate new or used office equipment, a computer, or a VCR. Send each business an individualized request describing your group and its goals and asking for a specific item or service. If you are tax-exempt, that will encourage donations. But don't be afraid to ask even if you're not tax-exempt.
MEMBERSHIP DONATIONS
Another good source of financial support is your supporters - people in your group as well as people on your sign-up sheets. Ask them to pay a yearly membership fee. Set different levels for dues such as $10 to $20 for regular members, $50 for sponsors, $100 for sustaining members, and $500 to $1,000 for lifetime members; student and senior citizen memberships could be offered at discounted rates.
Consider offering members an incentive, such as a free book or T-shirt with a large donation. Ask for regular donations either monthly or quarterly, and always be sure to send a thank-you note promptly. (If you are tax-exempt, your thank-you note should inform donors of the deductible portion of their gift, i.e., the amount of the gift minus the value of any incentive you give them in return.)
INCORPORATING & APPLYING FOR TAX-EXEMPT STATUS
Much of the work you will do as an activist requires no more (and no less) than caring and motivation. On the other hand, making fliers, setting up tables, and forming groups also requires some money to cover costs.
BULK-MAIL PERMIT
Apply for a bulk-rate third-class mailing permit. This will allow you to send out mailings of more than 200 pieces at a reduced cost. You can apply for this without being incorporated and tax-exempt, but it is more difficult and time-consuming.
CHARITABLE SOLICITATION CERTIFICATE
File with your state's Charitable Solicitations Division. They will give you a certificate that allows you to solicit funds in that state. You may be required to list a registered agent - someone who resides in the state and can be served with legal papers if necessary - in order to file. Different states have different thresholds for the amount of money you must have to file. But even if your group falls below that threshold, you cannot ignore the charitable solicitations office. You must, in that case, file for an exemption from formal registration as a charitable organization. If you intend to solicit funds in other states as well, you need to file similar forms. Some states require that you file applications for a "certificate of authority to transact business" in the state before you will be allowed to register for charitable solicitation. This may require an attachment to the application of a "certificate of good standing" or a "certification of articles of incorporation" from the state in which you are incorporated. After receiving your certificate to transact business you may have to file it in the county or state of your registered agent.
FORMS REQUIRED ANNUALLY
Now that you have done all the necessary paperwork to set up, you must do the paperwork necessary to continue to exist legally. The federal government requires you to file Form 990, "Return of Organization Exempt from Income Tax," annually. You may also need to file Form 990-T to report taxable sales that are not related to your tax-exempt purpose. The state governments require an "annual report of tax" and an "annual report of domestic nonprofit corporations." If you do not fill out these forms, your organization can be dissolved by the state.
PRESERVING DOCUMENTS
You must set up a system for preserving (with copies) corporate documents such as the articles of incorporation, bylaws, and amendments, and the minutes of board decisions. Minutes should include board resolutions, financial decisions, policy directives, and major program decisions.
ACCOUNTING
Establish an accounting system to maintain tax compliance, to assist in management of the organization, and to establish a general trend to provide long-range planning for the organization and its resources. The necessary elements of any accounting system are:
1. An annual budget.
2. A simple system for tracking income and expenses by source and use. Record each donor's name, address, and amount and date of donation. Save all receipts.
3. If the organization has any employees, it must maintain files for deductions, tax payments, W-2s, and other forms, such as the 941, a quarterly return which shows payments made for Social Security and federal taxes.
4. A list of fixed assets. This includes the date and amount of purchase of items such as typewriters, computers, or copy machines.
5. Bank statements must be reconciled regularly.
6. Some form of internal control to safeguard the corporate assets from theft or negligence.
There must be a system of checks and balances so that no one individual can squander the group's money. Examples of checks and balances are having two check-signers or having one person prepare the checks or vouchers and another person sign them.
7. Voucher systems. Have every expense described and approved on a form before a check is written. This is another form of internal control.
CONSULTING A PROFESSIONAL
Of course, the discussion above cannot address all the needs of every group. It is designed only to highlight the most important considerations you will face. We strongly recommend that you consult a lawyer or accountant who is experienced in nonprofit corporation work as early as possible. Even if you cannot afford to have a consultant do all the work, he or she can at least give you a good idea of the requirements and options that you face.
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ADOPT AN ANIMAL
WAF FACT SHEETS
