| Sample
Revenue Sources |
| Revenue
Source |
Defined
|
| Annual or sustained gifts |
One or more fundraising programs that
generates gift support on an annual or sustaining (more
frequent than annual) basis. Annual programs acquire donor
names to the organization’s house file using an
offer communicated through various mediums. Names are
acquired using the media of radio, TV, space ads, direct
mail lists, email lists, phone lists, etc. When a donor
responds to an initial offer, they are then converted
to at least two transactions before being cultivated on
the organization’s file as a sustaining supporter.
Examples of cultivation methods include direct mail, internet,
monthly donors, affinity or club programs, honor or memorial
giving, telethons, phone mail, etc. cant leadership to
verify information. |
| Major gifts |
A large gift, often from a person,
to a not-for-profit organization, the amount required
to qualify as a major gift being determined by the organization.
Prospect names are identified through screening of annual
supporter lists, list rentals, personal referrals and
PR-related cultivation events. Prospects are qualified
through electronic and personal screening. Prospects are
cultivated for a period of time before solicitation. Many
major gifts require negotiation and are restricted as
to use, may involve a pledge or letter of intent and require
personalized recognition. |
| Planned gifts |
A large gift from a person that is
structured and that integrates sound personal, financial
and estate-planning concepts with the prospect's plans
for lifetime or testamentary giving. A planned gift has
tax implications and is often transmitted through a legal
instrument, such as a will or a trust. Examples of planned
giving instruments include pooled income fund, charitable
remainder trusts, insurance gifts, lead trusts, bequests,
etc. |
| Foundation grants |
A foundation is an organization created
from designated funds from which the income is distributed
as grants to not-for-profit organizations or, in some
cases, to people. A grant is a financial donation given
to support a person, organization, project, or program.
Most grants require research by the organization’s
staff and submission of an application. Grants are awarded
to non-profit organizations according to the foundation’s
specific guidelines, limitations and assets. |
| Cause-and-effect marketing
(corporation) |
Marketing agreement in which a for-profit
organization, by using the name and reputation of a non-profit
organization, promotes its product and in return provides
financial support to the organization according to a predetermined
formula based on sales and purchases. |
| Corporate giving program
|
A grant-awarding program established
and controlled by a profit-making corporation. In some
corporations, this is separate from the marketing function
and from any corporate foundation. |
| Earned income activities
related to the organization’s mission |
Earned income activities related to
the organization’s mission Revenue received by an
organization for product sales, fees for services rendered,
interest generated from investments or royalties generated
from owned and copyrighted works. Income is derived for
activities substantially related to the organization’s
tax-exempt purpose. |
| Unrelated business income
(UBI) |
Revenue received that is the result
of any legal trade or business conducted by a not-for-profit
organization to make money in a way not directly related
to an organization’s Federally tax-exempt mission.
|
| In-kind |
A donation in goods or services (not
in money) such as a contribution of equipment, inventory,
supplies, space or staff time. The donor may place a monetary
value on such a contribution for tax purposes. |
| Supporting organization
|
A qualified charity operated, supervised
or controlled by or in connection with one or more specified
public charities. An auxiliary, association, friends groups
or other non-profit may be a supporting organization.
|
| Benefit events |
A social event from which net proceeds
are designated as a donation to one or more causes. Examples
include races, balls, carnivals, bazaar’s, galas,
concerts, etc. |
| State and local municipalities
|
Funds under the direction and discretion
of a non-Federal agency. Sources include state grants,
a local municipality grants and in-kind service, allocations
of Federal block grants to a state or municipal agency
under a Federal authority and state and municipal bonding
authority. |
| Churches and denominations
|
Cash and in-kind contributions from
a local church, local church foundation, denominational
office or church-run service agency. Other organizations
include a ministerial associations, regional trans-denominational
organizations and associations like the NAE, NCC, etc.
|
| Federated funds |
Funds raised through one of several
employment –related annual giving campaigns. Examples
include United Way, Combined Federal Campaign, Combined
Health Appeal, etc. |
