Raising funds internationally requires a great deal more planning and organisation than fundraising at home. David Wickert outlines some of the issues that must be addressed before you can approach the philanthropic Americans.
The first step in international fundraising is targeting a market. The European Union and its constituent parts all have great potential but different languages and legal systems make fundraising in Europe far from straightforward. While never easy, attempting to raise money from donors in America can be a slightly more achievable aim and offers richer rewards. After all, there is more money available for philanthropic activity in America than anywhere else in the world. Funding the arts is a sign that you have arrived socially in the United States, so arts organisations have everything to play for.
So, what are the opportunities for arts organisations in the UK to identify funds from American sources? Funds are potentially available from American companies, American grant-making organisations (usually called foundations), but most importantly, individual Americans living in America, the UK or elsewhere in the world.
Individuals and tax deductions
American donors, particularly major donors, are far more interested in tax breaks than UK donors. Why? Because there are amazingly valuable tax breaks in America! Generically this area is called ?planned giving?. The basic tax break is called a tax deduction. Every American wants a tax deduction for every donation. Taking a tax deduction means the donor can deduct the amount of their donation from their taxable income, and it can save over 40% of the cost of the donation. The US donor needs a receipt for their donation in order to take a tax deduction, but to get a receipt they have to give to a US non-profit organisation. Since most UK arts organisations aren?t one of those, the simple solution is either to set up an American non-profit organisation (often called the American Friends) or, alternatively, to work with a US non-profit organisation that supports the work of charitable organisations outside the USA, for example, the American Fund for Charities.
UK organisations will seriously reduce their chances of attracting US funding if they cannot offer a tax deduction. It is vital to ensure that any American taxpayer who comes into contact with your organisation knows that you can offer a US tax deduction. You will need to put the following on all your literature: ?If you are a US taxpayer and would like a US tax deduction for your gift please make your cheque payable to the American Fund for Charities. The American Fund is a US non-profit in Washington DC that supports [here put in the full name of your organisation], and gifts to the American Fund are tax deductible to the full extent allowed by law.?
Foundations
Another solid source of funding are foundations (grant-making trusts). Invest in a database of US foundations and look for those that are potentially interested in the work that you do. Choose a database that includes company foundations. A good place to start is the Foundation Center (www.fdncenter.org). When you have identified suitable foundations you will need to obtain information from them. If they don?t have a website, ask for their grant-making guidelines. Email works best. Don?t rely on information from a database because foundation priorities can change at any time. Prepare an application in exactly the form required by the foundation. Most foundations ask for a preliminary application or letter of inquiry of only two or three pages to start with, and then a full application if they are interested in funding you.
What kind of work do US foundations support? You will not be surprised to know that innovative, replicable, financially self-sustaining work is right at the top of the list. And it won?t do you any harm if the project has an American angle.
An American Friends organisation, or the support of an American non-profit organisation, is also very significant in seeking foundation funding. When a foundation gives to a charitable body outside the USA it has to establish that the recipient is equivalent to a US non-profit organisation that delivers services to the public. Establishing this can cause them unwanted work and expense. Far simpler for the foundation to give to a US non-profit organisation that delivers a service to the public such as the American Fund for Charities or your American Friends organisation, which in turn will pass on the funding. The same arrangement is also important to companies. Companies are either treated in the same way as individuals, or they give through a company foundation and are subject to foundation rules.
Fundraising while on tour
Arts organisations that tour or present work in the USA are perfectly positioned to raise funds from American sources, and it is one of the great unexplained mysteries of the universe why so many organisations do not plan their fundraising at the same time as they plan their tour.
Before embarking on a tour, identify any US foundations that are potential funders (particularly those located in areas you are visiting) and invite them to see the company?s work. It will be beneficial if you line up one or more innovative projects that are designed to be attractive to Americans and to be funded by American donations. You will need to offer very significant donor recognition. Provide information attractively presented in hard copy and on a website. It is important to customise your material by using US spelling, and have it edited by a real American as it isn?t enough just to use your US spellcheck. Be sure to include relevant information about tax deductions.
While on tour, ask for financial support from every American you meet. It is a good idea also to make an arrangement with a US non-profit organisation and an email/telephone hotline for someone to answer questions while you are actually touring in America. If appropriate, enrol Americans in an American Friends organisation, with special opportunities, events and parties, not least when members visit the UK. And when you return to the UK, communicate regularly with them, for example, by an email newsletter.
David Wickert is a Director of fundraising advisers Chapel & York. t: 01342 871910;
e: info@chapel-york.com; w: http://www.chapel-york.com