fundraising made simple · fundraising, the greater the exchange of ideas, creativity and...

Fundraising Made Simple

SEE MOREWhat is fundraising?

SEE MOREIdeas for fundraising

SEE MORESix steps to a successful fundraiser

Fundraising is essential to community based early childhood services. It is a vital way of raising much-needed funds to maximise the potential of your centre as an environment in which children can learn and achieve.

Fundraising is not just about raising revenue. It is also a great way of bringing your community together, playing a major role in building your community.

Involvement in fundraising promotes friendships and bonds between families. The more involved parents are in any facet of management, including fundraising, the greater the exchange of ideas, creativity and ultimately success.

Conducting a successful fundraising activity can be challenging. It is essential to ensure that each activity organised will deliver a positive monetary return.

Fundraising is more than just raising money. A fundraising program is important for your centre because it provides:

• familiesandthewidercommunity the opportunity to show that they value the education of children

• anopportunityforthecentretomarket itself

• anopportunitytoraisetheprofile of early childhood education

• achanceforfamiliesto become friends

• theprospecttoraisemoney.

BASIC PRINCIPLES OF FUNDRAISING

People give to peopleMost people work hard for their money. So why should people give away their hard earned income? People donate becausegivingsatisfiesaneedoftheirown. People give because they perceive theywillbenefitfromgivingeitherdirectly or indirectly.

The reasons why people donate money vary. People who donate money do so because they:

• havemoney

• areinthetraditionorhabitofgiving

• believeinsupportingtheircommunity

• respectandtrustyourorganisation

• likebeingpartofaclosecommunity

• wanttomakeadifference

• wanttobeabletoclaima tax deduction

• haverespectforthepersonwho has asked them

• areaskedtogive.

Asking for moneyFew people give to anything unless someone asks. Get excited about what this money will do for people andhowitwillmakeadifferenceat your centre. Enthusiasm is contagious and encourages involvement. Asking face-to-faceiseffectivebecause it provides the opportunity to be

enthusiastic, to answer questions and to solicit a direct response.

However, keep in mind that not everyone in the community shares your early childhood education focus. There are a lot of very worthwhile groups to support. Not everyone will particularly care about your centre, but your chances for support will increase if you can tell people what the money is for and how it will help the children.

Alwaystieeachfundraisingeffortto a particular goal. Greater support is always gained when people know where their money is going.

Targeting your marketDifferenttypesofventuressuitdifferentareas and populations. The objective of runningafundraiseristoofferpotentialcustomers something they want to buy. Like any other business, you will have to study the market to determine what type of event or project will have the broadest appeal, or obtain the most support from the people you are attempting to cater to.

Reviewing the history of your centre’s fundraisingeffortswillalsoprovideinteresting information about how best to appeal to your community. Check what has worked in the past and review the records. Do not make the mistake of repeating past failures or overlooking previous successes.

Be aware that what works in one community will not necessarily work in another.Communitiesdifferinsomanyways–overallaffluence,socialmoralsand countless other distinctions. Another important aspect of researching your market is to try and findoutwhatisalreadyscheduled on the community calendar. Avoid conflictingwithasimilaractivitybyanother group if you are both seeking support from the same people.

Using existing infrastructureWhen planning your fundraising activities, try to take advantage of an event, community market or festival already occurring in your area.

Know what’s on in your local community and make the most of it. For example, Easter (with a hot cross bun or Easter egg drive) and hampers for your end of year celebrations. Also, your centre may be a polling booth at election time. This will give you the opportunity to tap into dollars outside the centre’s direct community by running a sausage sizzle.

Showing appreciationIt is important to thank donors properly to encourage future support. Appropriate methods of thanks may range from a phone call from the president, a letter, a public thank you in your newsletter, an advertisement inthelocalpaper,oracertificate of appreciation.

Fundraising Made Simple What is fundraising?

CONTENTS

Early Learning Association Australia Level3,145SmithStreet,FitzroyVIC3065 POBox1246,CollingwoodVIC3066 t(03)94893500f(03)94864226 e [email protected] w www.elaa.org.au

Copyright: Fundraising Made Simple belongs to ELAA. All rights reserved. This publication cannot be re-produced without written permission from the publisher.

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Types of fundraising 3

Marketing the event 7

Managing fundraising 4

Rules for fundraising 8–9

What is fundraising? 2

Ideas for fundraising 5–6

10Six steps to conduct a successful fundraiser

www.elaa.org.au

Fundraising Made Simple Types of fundraising

EVENT SUGGESTIONSEveryone has good ideas. Make some time to talk about existing events to stimulate your own ideas. Ensure that thespecialeventoffersvalueformoneyand would tempt your own friends to participate!

Key considerations when planning events are:

1 Know your market and gear the event accordingly

2 Know the risks and plan for them

3 Timing

4 Competition

5 Event appropriateness

6 Enjoyable and attractive

7 Well prepared and realistic budgets

8 Oneoff,ortoberepeated?

9 Publicity and promotion

10 Follow up: evaluation and thanks.

JOINT FUNDRAISERSFor a major product or special event (which may require more resources, particularly people-power), it is worth considering working with other centres in your area. If you are part of a cluster-managed group of services, discuss this option with your cluster manager. By doing so, you can all promote early childhood education and have a very successful major fundraiser.

PRODUCT DRIVESLook for products that:

• haveahighprofitmargin

• areeasytoorganise

• havenoinitialoutlay

• offeraproductpeoplehavetopurchase anyway

• successfullycombinefundraising with a social event

• attractsupportfrompeopleoutsidethe immediate community.

CORPORATE SPONSORSHIPMany companies allocate a portion of their advertising and marketing budget to support community projects. Local companies can be useful partners in your centre realising its fundraising goals. It is important to develop a year’s plan or, where appropriate, a two or three-year plan. This will include the money you aim to raise, what it will be allocated to and how you intend to raise it. It is important to communicate this information to potential sponsors, as they may have creative ways to assist you.Itisuptoyoutofindsuitablecompanies who will perceive commercialbenefitsfrombeing seen to support your centre.

Sponsorship is a two-way arrangement. If you provide value to your community through fundraising ventures, it is easier to gain support.

CONTENTS

1. Direct solicitationInvolves asking for donations without giving anything more in return other than the satisfaction of contributing to a cause.

2. Indirect solicitation Involves selling merchandise, food, entertainment or services – something given in return for money. This is the type of fundraising most centres take part in.

3. Events Offeryourcentretheopportunitytoattractnewpeople,encouragenewinvolvement,createnewdollarsandraiseyourprofile.Asuccessfulspecialevent makes the ordinary into something special and creates memories.

THE THREE MAIN TYPES OF FUNDRAISING

HELPFUL LINKS

Fundraising Institute of Australia www.fia.org.au

Victorian Commission for Gambling and Liquor Regulation www.vcglr.vic.gov.au Detailsapplicationformsforraffles,luckyenvelopedraws,etc.

Consumer Affairs Department, Victoria www.consumer.vic.gov.au Details all fundraising regulations

Australian Taxation Office www.ato.gov.au Detailstaxbasicsfornot-for-profitorganisations



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www.fia.org.au

www.fia.org.au

www.vcglr.vic.gov.au

http://www.consumer.vic.gov.au

http://www.consumer.vic.gov.au

www.ato.gov.au

www.ato.gov.au

www.elaa.org.au

Fundraising Made Simple Managing fundraising

FUNDRAISING AND THE BUDGETWhether the committee of management or a cluster manager is responsible for formulating a budget, it is wise to keep fundraising separate from the general income and expenditure budgets. This means that you will be able to cover the day-to-dayrunningcosts(e.g.staffsalaries), even if you do not meet your fundraising targets.

Funded kindergarten programs must comply with the kindergarten budget and fees policy requirements oftheVictoriankindergartenpolicy,procedures and funding criteria. For example the fees policy must detail the application of fundraising. Refer to www.education.vic.gov.au/kindergarten/fundingcriteria.

RISK MANAGEMENTFundraisingisasignificantarea of vulnerability. This is because the majority of fundraising money comes in the form of cash, so it is important that processes and procedures for the correct handling of money are put in place. Systems must be in place to enable the money to be banked without delay. This not only protects the reputation of the individual fundraisers but also protects your service’s reputation in the community. It is a good idea to create a separate bankaccountspecificallyforfundraisingmoney, as this is simpler for tax purposes.

When handling fundraising money, there must be a paper trail for everything – transparency is the key. There should always be two people who count money together and a formshouldbefilledouttorecord the details of each activity.

THE FUNDRAISING SUBCOMMITTEEWhere the service is managed by an independent committee of management, forming a fundraising subcommittee at the beginning of the year is a good way of ensuring that fundraising activities are conducted and managed well and the workload is spread. The fundraising subcommittee can consist of the same people for the wholeyearordifferentpeoplecanworkonspecifictasksthroughouttheyear. In cluster managed services fundraising may be the only revenue the committee is responsible for and so a subcommittee may not be required.

Subcommittees require terms of reference to clarify authority and reporting requirements. It is critical that everyone is clear about which group (committee of management, subcommittee or cluster manager) has the authority to decide on expenditure of the funds raised. It is useful if someone, usually the subcommittee convenor, is a committee member, as they can report back to the committee each month about fundraising activities.

Things to do at the start of the year and beyond:• informallparentsoftheneed

to fundraise

• askpeopletogetinvolved.Theessential ingredient of a successful fundraiser is people – dedicated, hardworking, and cooperative people

• formafundraisingsubcommitteewith one person appointed as the fundraising coordinator

• askeveryoneinyourcentreforfundraising ideas

• checkthatthereisabudgetfor any expenses that may be incurred

• publishyourfundraisingtargetandtell families what the money will be used for, whether it is for a new shade sail or a group excursion etc.

• advertiseyourannualprogram. Having your complete plan mapped out in advance is the best way to gain the commitment of both your committee and your families. Space out your fundraising activities – too many activities at the one time can make your members feel overwhelmed, especially if they also have children at other schools or centres

• keepyourmembersupdatedon your progress. Have a chart displaying what you have achieved and include regular updates in your newsletter

• thankeveryoneforparticipating as you reach each goal and buy items as soon as you can after each fundraising event. Let families see howtheirchildrenbenefitfrom theirefforts!

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CAN I CHARGE A FUNDRAISING LEVY?

Under the funding criteria, non refundable fundraising levies should be considered part of the annual kindergarten fee. A fundraising fee should not be considered as separate add on costs. Your fee policy must also detail the application of fundraising. Some services have introduced ‘refundable fundraising levies’ in lieu of relying on everyone to contribute to the fundraising activities. If your fees policy includes refundable levies it is important this levy is not seen as a barrier to children’s attendance at the centre. The committee will also need to consider how they will make a decision to refund any levies paid to ensure there is equity and fairness for everyone.

More information on the management of fundraising fees is included in the Victorian kindergarten policy procedures and funding criteria which can be downloaded from www.education.vic.gov.au/kindergarten/fundingcriteria



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www.education.vic.gov.au/kindergarten/fundingcriteria

www.elaa.org.au

SOCIAL EVENTS• Dances

• Trivianights

• Bushbandparty

• Linedancingparty

• Jazzpicnics

• Masqueradeparty

• MelbourneCupEvepartyorCup Day picnic

• Healthclubnight

• Dinnerfollowedbyauctionof children’s artwork

SHOWS/ENTERTAINMENT• Fashionshow

• Cinemanight

• Concert

• Infotainmentevening(withapopular guest speaker)

• Children’sfamilyfundaywithmusic and entertainers

• Cookingdemonstration

• Flowershow

• Culturalcarnival

• Petshow

• Outdoorsummermovies,concert

• Weddinggownparadeofoldand new gowns

SALES• Christmasmarket(whereyouasthe organiser have a couple of stalls and rent out stall space to other people or collect a commission on each stall)

• Bookfair

• Artsfestival

• Partyplansalesnight

• Carbootsale

• Garagesale

FOOD EVENTS(Check if you need permits with your local council)

• Dinners

• Lunchwithaninterestingspeaker or entertainer

• Cocktailparty

• Winetasting

• Internationalfoodfair

• Gourmetpicnic

• Progressivedinnerparty

FOOD TO SELL• Eastereggdrive

• Fruitfestival(especiallyinberry, cherry or stone fruit areas)

• Foodchainbaskets–preparea basket of food or sweets, give it to someone, ask for a donation and tell them it’s a chain basket – they have to restock it and pass it on foranotherdonationorrefill

• Christmaspuddingsandcakes

• Chocolates

• PiesandPizzas

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Fundraising Made Simple Ideas for fundraising

2015RaffleA great fundraising idea for your service!

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Ideas for fundraising

https://elaa.org.au/services_resources/our_services/fundraising

www.elaa.org.au

Fundraising Made Simple Ideas for fundraising continued

PLANTS/FLOWERS• Christmastrees

• Cutflowers

• Christmaswreaths

• Bulbs

• Pinecones

• Plantsalefromseedlingsyou have potted up or grown

AUCTIONS• Celebrityauction

• Foodauction

• Mysteryauction

SERVICES• Carwashes

• Coachingclasses(ifyouhave a parent with suitable skills)

• Seminarorworkshop

• Dogwash

• Canorbottlecollections

CONTESTS• Drawing/paintingcontest

• Eatingcontest

• Howfarwillthecartravelon‘x’ amount of petrol?

• Howmanycansinthepyramid? (Winner wins the cans)

TOURS• Housetours

• Citytours

• Waterfronttours

• Gardentours

• Ruraltours

• Shoppingtours

OTHERS• ELAACaring for Kids Raffle

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Ideas for fundraising

www.elaa.org.au

Fundraising Made Simple Marketing the event

The community cannot support your project unless they know about it. Somesimpleandcost-effectiveways to market fundraising activities are:

• Haveapostercompetition. Ask the children to design posters that advertise the event, then put them up in the local neighbourhood.

• Talktoyourlocalpaper.Youmay not have to pay to advertise your event – often they have columns where they place editorial on upcoming community events free of charge.

• Putadisplayupatyourcentre.

• Distributepostersandflyersinappropriate venues. Ask to insert copies in local school newsletters or local community centres such as Maternal Child Health centres or schools.

• Conductacompetitionbefore your event.

• Useincentivessuchasaprizefor thepersonwhosellsthemostraffletickets or brings the most people to your trivia night.

• Finally,treateveryonethathelps youinyourfundraisingeffortsasthough they had just donated a million dollars. By making everyone feel valued and appreciated you are encouraging them to help you again in the future.

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www.elaa.org.au

FUNDRAISING AND GST Under the tax system, fundraising activities are not in themselves exempt from GST. Where centres are registered (or required to be registered for GST), committees have three options on how they can choose to treat their fundraising activities.

In summary, the three options are:

• Donothing,inwhichcasethenormalGST rules apply to all transactions. There are some concessions for raffles,saleofgoodsforlessthan50%oftheirmarketvalueandthesale of donated secondhand goods. These concessions only apply to entities that are endorsed as charities. (The majority of centres would qualify for this endorsement).

• Electtocreateanon-profit sub-entity that is not registered for GST to manage some or all fundraising activities. The sub-entity does not charge GST, nor can it claim credit for GST paid on its purchases.

• Electtotreatfundraisingactivities as Input Taxed events. This is a particularclassificationavailable to charities. GST is not charged on Input Taxed supplies, nor can credit be claimed for GST paid in purchases related to these events. There are some restrictions on the type and number of events that can be classifiedasanInputTaxedevent.

Ifacommitteechoosesthenon-profitsub-entity or the Input Taxed approach then that decision cannot be changed for12months.

Comparison table

Do nothing (with GST)

Input taxed or Sub-entity (without GST)

Purchase cost $2200 $2200

GST $200 N/A

Real cost $2000 $2200

Sale of items $3300 $3300

GST $300 N/A

Actual income $3000 $3300

Profit $1000 $1100

For further information refer to the AustralianTaxOfficepublicationTax BasicsforNon-profitOrganisations, or GST – A guide for Pre-school operators.

RAFFLESRafflesareaneffectiveandpopular way for centres to raise money but the rulesandrequirementsoftheOfficeofGambling Regulation must be observed.

Arafflecanonlybeconductedbydeclared community or charitable organisations and the combined retail value of the prizes will determine the conditionsthatwillapplytotheraffle.

DECLARATION AS A COMMUNITY OR CHARITABLE ORGANISATIONOnly organisations which are declared by the Director of Gaming and Betting to be genuine community or charitable organisations, can conduct minor gamingactivitiessuchasrafflesorbingo. Kindergartens and childcare centres are considered ‘organisations having a philanthropic or benevolent purpose’underCategory2andaretherefore eligible to apply. In order to become a declared organisation an application form must be completed. You will need to include a copy of theLicenceCertificatefromtheDepartment of Education and Training as well as a copy of your constitution. ForwardthistotheVictorianCommissionfor Gambling and Liquor Regulation, GPOBox1988,Melbourne3000. www.vcglr.vic.gov.au Ph:1300182457

RAFFLES WITH PRIZES VALUED UNDER $500Rafflesconductedbyindividualcentresusually fall in this category. Conditions forarafflewherethecombinedretailvalueofallprizesislessthan$500require that:

• ticketscanonlybesoldtobenefit the individual organisation

• theraffleisauthorisedbytheresponsible person

• noonecanbepaidforsellingtickets

• sellinganddrawingofticketsmustoccur within an eight-hour period

• ticketsarenumberedonboththe butt and ticket

• everytickethasarandomandequalchance of winning

• prizesaregiventoallwinnerswithin28days

• accuraterecordsarekept,includingbank statements, for at least three years.

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Fundraising Made Simple Rules for fundraising

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Rules for fundraising

www.vcglr.vic.gov.au%20

www.vcglr.vic.gov.au%20

www.elaa.org.au

Fundraising Made Simple Rules for fundraising continued

RAFFLES WITH PRIZES VALUED BETWEEN $500 AND $5000Conditionsforraffleswherethecombined retail value of all prizes isbetween$500and$5000are:

• ticketscanonlybesoldtobenefit the individual organisation

• rafflescanonlybeconducted with the written permission of the committee

• noonecanbepaidtoselltickets

• thetotalnumberofticketsforsale is between two and six times the valueoftheprizesbeingoffered

• onlyauthorisedpeoplecanselltickets

• ticketscanonlybesoldwithin a three-month period of the draw

• abookbuyer’sprizecannot beoffered

• thenameoftheorganisationanddetails of the prizes and draw must be printed on each ticket

• everytickethasarandomand equal chance of winning

• thefirstticketdrawnwinsthe major prize

• theresultsmustbepublished

• allprizesgiventoallwinners within28days

• accuraterecordsmustbekept,including bank statements, for at least three years.

RAFFLES WITH PRIZES VALUED OVER $5000Theserafflesrequireapermitfrom theVictorianCommissionforGamblingand Liquor Regulation and attract a number of conditions. Permits must be issued before tickets go on sale. Permits takeatleast21daystoissue. Toconductarafflerequiringapermit,contacttheVictorianCommission for Gambling and Liquor Regulation on tel1300182457foracurrentlist of conditions.

Complete details on declaring an organisation and conducting arafflecanbefoundontheVictorianCommission of Gambling and Liquor Regulation website www.vcglr.vic.gov.au.

FUNDRAISING APPEALS ACTA fundraising appeal is when a personseeksorreceivesabenefit(monetary or otherwise). This includes rafflesandotheractivitiespermittedunder the Gambling Regulation Act 2003. As a result of amendments to the FundraisingAppealsAct1998 the old notificationsystemoffundraisingappeals has been replaced by a fundraiser registration scheme. In the old system, any centre holding an appealsuchasafeteorrafflewasrequired to lodge an application with ConsumerAffairsVictoria(CAV). This is no longer necessary.

As of 2009 centres are affected in the following ways:• Allcentresofferingafour-year-old

funded kindergarten program have been given a Ministerial exemption from this scheme provided they only use volunteers for fundraising activities. No notices need to be lodgedwithCAV,norrecord-keepingrequirements followed except those alreadyspecifiedbytheDepartmentof Education and Early Childhood Development.

• Allcentresofferingonlyunfundedprograms,raisinglessthan$10,000per year and using only unpaid volunteers will be exempt from this scheme.

• Ifmorethan$10,000istoberaised,thecentreofferingonlyunfundedprograms will need to complete an ‘Application for Fundraiser Registration’ form – the unpaid volunteer version.

• Anycentreemployinga commercial fundraiser, no matter what amount is to be raised must complete an ‘Application for Fundraiser Registration’ form – the paid fundraisers version must be completed.

More information is available at www.consumer.vic.gov.au.

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Rules for fundraising

www.vcglr.vic.gov.au

www.consumer.vic.gov.au

www.elaa.org.au

1. Choose fundraising activities carefully Every fundraising project should be based on its own budget. Keep records of all income and expenditure to ensure the activity generates adequate surplus tojustifytheworkload.Forexample,sellingwindcheatersfor$10eachwhen theycost$8isnotahighreturnifonly20windcheatersaresold.

2. Run one or two fundraisers each year and make sure that they are done wellDon’t organise lots of little activities and only do them half-well.

3. Develop a step-by-step implementation plan for each eventTimeandeffortinvestedinpre-planningwillensurethattheprocesswill run smoothly.

4. Identify and allocate all tasks at the planning stage Make sure that all people involved in bringing the event to life are well briefed about the task and that the objectives and deadlines are adhered to.

5. Handle all money carefullyAlways issue receipts when money is received. All payments should be by cheque (where possible) and details recorded.

6. Keep things fun It will keep everyone enthusiastic and on track.

Fundraising Made Simple Six steps to conduct a successful fundraiser

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Six steps to conduct a successful fundraiser

www.elaa.org.au

fundraising made simple · fundraising, the greater the exchange of ideas, creativity and...

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