Fundraising is one of the most common activities that nonprofit
organizations get involved in, not only because their tax-exempt
status makes them eligible for funds from foundations and more attractive
to individual donors, but also because
it allows them to articulate concrete, visible park needs and goals.
A nonprofit's ability to dedicate funds directly to a park project is
particularly attractive to a city with a big vision but lack of funds
to implement it. Fundraising also can serve as a park advocacy tool and
raise awareness of the work of the nonprofit organization. It generally
centers around three types of park needs: to supplement annual operating
budgets, to implement capital projects, and to establish an endowment
to ensure ongoing park maintenance, restoration, and management.
Fundraising for annual operating funds to supplement existing public
operating budgets often involves membership drives and frequent low cost
events, which have the added benefit of exposing infrequent or non-park
users to the park and stimulating and encouraging longer-term involvement.
Though donations are typically small, park outreach is great. Concession
sales and educational programming fees are other sources for raising money
that are often channeled into annual
operating funds. Because they do not translate into visible projects
in the park, and because some
philanthropies will not give for this purpose,
many nonprofits consider operating funds to be the most difficult kind of funds to raise.
Fundraising for capital campaigns tends to rely more on personal
solicitations to individual and corporate donors than on events.
Once the capital money is raised, design and construction is often
carried out by the parks department or contracted out to private firms.
Fundraising for endowment campaigns, like capital campaigns, tends to
focus on larger donations from private individuals and corporations as
well as matching grants from foundations. Of course, public partners can
provide fundraising help as well, acting as agents to receive federal,
state, and local grants and opportunities, and pursuing grants from government
sources.
Fundraising Profile:
Forest Park Forever
St. Louis, Missouri
Since it was established in 1986, Forest Park Forever has been heavily
involved in fundraising activities. The group runs three different fund-
raising efforts: an annual Friends membership
campaign; Restoring the Glory, a mammoth $43 million capital restoration
campaign that is being conducted to match funds pledged by the city
of St. Louis; and a Forest Park Trust to establish
an endowment for ongoing park maintenance. According to Jim Mann,
Forest Park Forever's executive director, the three campaigns target
different audiences and require different types
of fundraising activities and events.
The annual Friends campaign combines a membership drive with
a drive to raise funds for annual operating expenses and park maintenance.
Individuals, foundations, and corporations are asked to join and contribute
to reach the $2.5
million per year goal. The fundraising events are inexpensive and are aimed
toward encouraging park usage, says Mann. One particularly successful event
is the annual Directors Tour, where members who have contributed $150 or more
are invited for a bus tour of the park given by the executive director. Light
refreshments are served, and brochures about the park, including self-guided
walking tours, are handed to participants as they step off the bus. Other events
encourage park usage for members, such as special invitations to visit the Forest
Park Forever booth at the park's annual Kite Festival and Hot Air Balloon Race.
Some of these special invitations are combined with a raffle for a roundtrip flight
donated by
an airline to a destination of choice.
Fundraising efforts for the Restoring the Glory capital campaign are part
of a joint effort between the city and Forest Park Forever to each raise $43
million dollars for improvements to the infrastructure, environment, athletic
facilities and buildings in the park. For this effort, Forest Park Forever
focuses on larger donors and corporations.
One particularly successful program is Forest Park Forever's Progress
Plus program, which uses tax credits and matching grants to leverage donations
up to five times the cost of a corporation's actual contribution. The first
incentive for corporate gifts is the ability to earn a 50 percent state tax credit.
A second incentive, a challenge grant from the Danforth Foundation, designed to
expand corporate philanthropy beyond the usual donors, stretches the corporation's
gift with an additional $0.50 for every dollar contributed.
For example, a contribution
of $250,000, which costs a
corporation $71,000 after tax deductions, can equal $375,000 for the park.
In order to qualify for the maximum Danforth Foundation contribution of
$5 million, Forest Park Forever must raise $10 million from corporations that
are not part of the elite 30 Civic Progress member companies. One fundraising
effort as part of this campaign has entailed asking six corporations to invite
20 companies each to attend a cocktail party that featured a discussion of park
restoration efforts. Two of these events have been held so far. At one of these
events, a company donated the use of their helicopter for those interested in
experiencing a bird's eye view of the park. By July 1999, Forest Park Forever had
raised more than $37
million towards their total $43 million goal, and $8 million toward Progress Plus.
A new effort, the Forest Park Trust campaign, seeks to raise $5 million
to establish an endowment for ongoing park maintenance. Relying on solicited
donations from private individuals, corporations and foundations, the campaign
has already raised over half of its goal. While the push to date has been on
the annual and capital campaigns, it is thought that some of these annual funds
will be added to the endowment in the future.
Fundraising that has an outreach component is also important. The Pennies for
the Park campaign, which began with the idea of putting donation cans in schools
and stores in the metro area, has taken off. Incredibly, St. Louis major downtown
mall, The Galleria, has promised to match the donations in the campaign with $50,000
of its own money. 50 stores in the mall are participating in the campaign, and the
mall's giant fountain generates $8,000 for the park in what is perhaps the most effortless
fundraising event imaginable. More important than the money is the visibility, says Lee
Anna Good, Forest Park Forever's marketing and capital campaign director, who adds that
the pennies campaign builds the organization's identity and helps encourage the public to
think of the park as an institution in and of itself.