Economy shakes up success of charities
Posted on Sunday, September 28, 2008
Al and Dorothy Hanby’s social calendar is jammed with ways to help nonprofit groups.
The Hanbys, who live in Springdale, are among the advocates who support nonprofits and their causes no matter what, but they are unusual in this current economic climate. Local groups are noticing how corporate sponsors like banks and Northwest Arkansas’ biggest companies are curtailing their giving.
Dorothy Hanby will pay $ 30 to attend a Thursday luncheon in Springdale to support the Ozark affiliate of Susan G. Komen for the Cure.
They will pay $ 25 apiece to attend one of the American Girl fashion shows on Oct. 11-12 to help the Arts Center for the Ozarks in Springdale.
They’ll give $ 75 each to attend Redneck Tailgate, an Oct. 24 event in Fayetteville for the Winthrop P. Rockefeller Cancer Institute in Little Rock.
“I probably go to one event a week, but I’m not sure,” Dorothy Hanby said. “I’m going to do as much as I can, because there are people who need what I give.” Fundraisers like Cyndi Bilyeu of H. O. P. E. Inc., Helping Oncology Patients Excel in Fayetteville, are having a tougher time luring big-money donations from corporations. The organization’s Gentlemen of Distinction, an Oct. 10 dinner and men’s fashion show, doesn’t have the high level of corporate sponsorship from previous years.
“The donors tell us it’s the economy,” said Bilyeu, the organization’s executive director.
“We’re all nervous about it,” said Sarah Hickman, the development director for First Tee of Northwest Arkansas, a group that supports character development and life-enhancing values through golf.
Other fundraisers — Mark Kafka of Horses for Healing in Bentonville, Erin Rongers of Big Brothers Big Sisters of Northwest Arkansas in Springdale and Treva Hamilton of the Fayetteville Public Education Foundation among them — said they’ve noted belttightening corporations giving less money to their biggest events. It’s not just the companies that have cut back in the rocky U. S. economy, said Michael Nilsen, a spokesman for the Association of Fundraising Professionals in Arlington, Va. Individuals have cut their giving, too. “We’ve found the special events are some of the first things to go when people are thinking about how to save,” Nilsen said. “If the economy isn’t doing well, that’s one of the first steps.” NONPROFIT OVERLOAD Northwest Arkansas is filled with events to bring money to and spark interest in nonprofit groups There are golf tournaments, bowling competitions, walks and runs for those who want exercise.
Galas, banquets, garden parties, casino nights, dinners, wine and cheese affairs, silent auctions, balls and other dances provide charitable nightlife. “There are so many similar events now,” said Harry Blundell, theater director for Arts Center of the Ozarks in Springdale. “They all try to mimic the successful ones. We talked about it, and it’s the same old ball and the same old silent auction, and that’s why we’re trying to tweak it.” The desire for something different brought Breakfast with Santa, which raised $ 5, 000 last year, and it’s what led the center to begin the American Girl fashion show this year, Blundell said.
This month’s 19 th annual Polo in the Ozarks brought in $ 107, 000, which was $ 11, 000 more than in 2007, said Susan Foley, the organization’s development director.
Corporate sponsorship was down, but attendance was up, Foley said.
No one dares to mimic the unique polo event held in Goshen, either.
“Our board years ago was deliberate about picking one that was unique,” said Carol Hart, the director of Life Styles, which helps disabled people with such things as job-skills training.
Other unusual events include the barn dance put on by Horses for Healing each June, said Kafka, the organization’s development director. Attendees wear blue jeans, boots and cowboy hats.
The event drew less money from corporate sponsors this year, lowering the event’s profit from $ 152, 000 in 2007 to $ 137, 000 this year.
“I’ve never seen the business climate as difficult as this,” Kafka said.
Alison Levin, director of the Ozark affiliate of Susan G. Komen for the Cure, believes there are now so many groups trying to obtain the same donations that it’s made fundraising difficult in Northwest Arkansas.
“I’m not one of these doubting people,” Levin said. “I think the economy has had a little bit of impact, but it’s more that so many events are going on. We’re diluting the donor pool.” Susan Todd Krafft, the coordinator of The Celebrity Classic in Fort Smith, spoke Tuesday at a meeting held for the Northwest Arkansas chapter of the Association of Fundraising Professionals. Her topic was how to develop successful fundraising events.
Donors want to have a good time at a unique party or special event, but it’s important not to forget the event’s underlying purpose, she said.
The Celebrity Classic, which runs from Friday through Oct. 5, includes a bit of everything: a gala, silent auction, bowling, tennis, a poker tournament, golf and other activities. It has raised about $ 180, 000 a year for charities that support health care and children’s causes, and people with disabilities, cancer and Alzheimer’s disease.
“People don’t want to know that the money they are giving is going for the party,” Krafft said. “They want to know it’s going for something good.” Many Northwest Arkansas directors and development directors of nonprofits said they will do well despite tough economic times.
Circle of Life Hospice in Springdale raised $ 83, 000 at its seventh annual gala last November, said Mary McKinney, the organization’s director. This year’s goal is $ 100, 000.
“I think we’ll hit our goal,” she said.
Optimism is typical of fundraisers, said Nilsen, the Association of Fundraising Professionals national spokesman. A “state of fundraising” survey by the association last year showed 58 percent of development directors predicted they’d bring in more revenue this year than in 2007, Nilsen said. The normal optimism in the survey is 75 percent to 80 percent, Nilsen said.
“Fundraisers are an optimistic lot, despite all these economic challenges,” Nilsen said.
There are new events to compete with ones that have been held for years, too. For instance, the Children’s Safety Center, a Springdale facility that assists with child abuse investigations and supports the victims, started planning its first Small Hands, Big Dreams fundraiser just four months ago and brought in $ 24, 000. Elizabeth Moore, the center’s development director, had predicted $ 14, 000. “I told the committee that we were not on anyone’s corporate budget and we may not get a penny from anyone in sponsorships,” said Moore, who got $ 9, 500 from sponsors by the time the event was held earlier this month. “I can’t pinpoint why it worked.” COMPANY CUTBACKS Springdale-based Legacy Bank reduced its giving to nonprofit organizations, said Don Gibson, the company’s chief executive officer. “There’s no question we had to scale back on our contributions and donations,” Gibson said.
The same goes for Springdale’s Tyson Foods Inc., said Gary Mickelson, a company spokesman.
“Due to challenging times in the meat and poultry industry, we have scaled back financial donations in recent years,” Mickelson wrote in an e-mail. “However, we have made an effort to maintain our commitment to the fight against hunger through our food donations.” While nonprofits rely on corporate sponsors like Legacy Bank and Tyson Foods, individuals rather than companies give the most to nonprofits.
Of the $ 306. 3 billion in charitable giving last year, the Giving USA Foundation reported $ 229. 8 billion came from individuals, not companies.
Religious groups (33 percent ) and education organizations (14 percent ) get the highest percentages of the $ 306 billion, the foundation’s survey shows.
Special events raise only a small percentage of annual donations, but they introduce people to a nonprofit organization and spur future gifts.
“It’s either the smallest donation someone will give, or it’s the last donation you’ll get from someone,” said Conway businessman Fred Hueston, whose consulting company is being paid to help Children’s House in Fayetteville raise money for a new center for abused children in Springdale. “The event is probably the first time someone has written a check to that organization. We call that a gateway gift.” Indeed, the long-term relationship that an event matters fosters matters more than the $ 25, $ 50 or $ 100 to attend an event, said McKinney, the Circle of Life director.
“It’s more than a dollar for us,” she said. “It’s about building relationships and exposing people to hospice care. The money at the event is a bonus.” The true impact of a nonprofit’s event is difficult to measure, Nilsen said.
“You may attract the one person who gives you a $ 10, 000 gift five years later,” the fundraising association spokesman said. “It’s public awareness building, and it’s almost unquantifiable.”
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