Charities Make the Most of Recovering Economy: Case Studies

Beth Downing Chee

Hooking Donors Early: San Diego State University

Director of Development Technologies Tammy Blackburn decided to try something new this year to boost the university’s stagnant senior-class giving efforts.

During Grad Fest — a three-day campus bookstore event held each March when students pick up tickets for commencement and purchase their cap and gown, diploma frames, and other items related to the big day — fundraisers were on hand at the cash registers to take donations to the university. Students in the Class of 2015 who gave $10 or more were given a special red-and-white “distinguished-donor cord” to wear at graduation. Those students also were asked to stand during the ceremony to be acknowledged with a big round of applause.

More than 1,000 students made donations, Ms. Blackburn says.

“It was so successful, we decided to extend the campaign for another two weeks,” with follow-up texts to students’ cellphones, which attracted gifts from another 470 graduates, she says.

In the end, 16 percent of the graduating class, or 1,502 students, gave a combined $25,000. The amount may seem small, but Ms. Blackburn says she hopes the effort will pay off later with continued financial support from donors and by inspiring the Class of 2016 and beyond.

“We really moved a lot of needles,” says Ms. Blackburn. “There was a lot of pride for these student donors. We were moved by the amount of applause they received from classmates who didn’t donate.”

One Dollar at a Time: Minneapolis Institute of Arts

The museum is about halfway toward its goal of raising $1 million to acquire a sculpture by Polish-born artist Igor Mitoraj through a broad-based effort to attract lots of small donations from the community. The strategy includes asking for $5 donations at the door and asking museumgoers to add a $1 contribution to their lunch tabs. Museum Director Kaywin Feldman even has a Square credit-card processor on her phone so she can accept donations as she roams the building.

As it celebrates its 100th anniversary, the museum has also lowered the barrier for membership — and included a free membership level — while changing the perks that members receive at the higher levels. The hope was to increase participation and ultimately increase philanthropy. So far it seems to be working: Membership has grown to 32,000 households this year, up from 20,000 in June 2014. Most important, donors are giving more than expected.

“We’ve definitely been on an upward trend,” Ms. Feldman says. “I would attribute it both to general philanthropic confidence of our donors in the economy as well as excitement with the programs that we’ve had over the past few years.”

In addition, the museum has secured endowments in recent years to cover the salaries of seven top managers, including an $8 million endowment for Ms. Feldman’s position, freeing up its donor cash flow for other uses.

A ‘Fund Run’ and Tax Credits: Community Foundation of West Kentucky

When Tony Watkins took the helm of the community foundation in Paducah, Ky., in 2001, its finances were anemic. It had $400,000 in assets and made less than $50,000 in grants each year. So he started casting a wide net to boost resources.

One of his first moves was to encourage local charities to participate in a “Fund Run” in which their supporters take part in a footrace and compete to see who can raise the most money. To participate, each charity had to raise a minimum of $2,500, and the foundation matched the money dollar for dollar, up to $10,000. All money generated by the 18 participating nonprofits was added to an endowed foundation fund benefiting each organization.

Community Foundation of West Kentucky

“This has created a sense of cooperation, and they come to me as a resource,” not as a competitor for donors, Mr. Watkins says.

Mr. Watkins also joined other grant makers to persuade the state to create $500,000 in new tax credits. Individuals and companies can save up to $10,000 on their taxes by donating $50,000 to a community foundation. The tax credits are offered on first-come, first-served basis and are typically snapped up within days of being offered.

The credits were initially offered in 2011. The following year, Mr. Watkins held a gathering for 250 business people to encourage them to donate; $1.5 million was raised in that one night, with many donors using the new tax credit to make their gift.

The foundation powered through the recession, raising more money every year. It now has assets of $25 million, with grants totaling $1.5 million annually.

Treating Foundations Like People: Martin Luther King Community Health Foundation

People were skeptical a new hospital in an impoverished part of Los Angeles could attract donors, especially since a nearby hospital had failed just a few years before.

Yet the new facility has started to open its doors, supported in part by a campaign to raise nearly $15 million so far in two and a half years. The drive by the hospital’s fundraising arm is led by its president, Dyan Sublett, a seasoned fundraiser.

Ms. Sublett has worked for a variety of Los Angeles nonprofits including elite institutions that landed huge gifts from individuals, and she applied fundraising approaches she used with wealthy individuals to seek grants from area foundations, which have provided most of the money raised.

“I seek conversations when many fundraisers are focused on asking,” Ms. Sublett says. “We have eight to 10 conversations before we ask — this is a standard major-gift process. It takes a long time because we’re asking for a big investment.”

Ms. Sublett says she often asks community-foundation officials what types of questions their boards might ask before making a big grant or objections they may raise. “I want to help them position us for a yes,” she says.

She also invited foundations to hold board meetings in the hospital’s gleaming new building. “Once you get them into your place,” Ms. Sublett says, “you make a major step forward.”

This article was corrected from a previous version that misidentified San Diego State University.