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International
Fundraising: Is It Worth It?
This
fundraising pro tells what it takes to move your program beyond the U.S.
(November, 2002)
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By
Erica Waasdorp, Vice President, DMW
Every
now and then, organizations are
intrigued and consider raising funds
internationally, mainly, because
they’re investigating other ways to
grow. International fundraising can
certainly be worth it! But… it
requires a big and long-term investment.
It’s not something that can be set up
in a few months.
Typically
an organization wants to raise funds
beyond the U.S. because:
- It expands the mission of the
organization ( e.g., there may be
potential in expanding programs into
Australia and it may be reasonable
to actually raise some money and
build awareness there at the same
time.
- If the organization is already
working abroad, it may make sense to
expand its fundraising in those
countries.
- It offers growth potential,
especially if the type of cause has
not yet penetrated other markets.
- Sometimes, the board likes the
idea and would like to be
represented in a number of
countries.
Before
anything, conduct extensive research. Be
prepared to spend some money upfront,
but it’s worth every
penny—especially when considering a
few different countries. Before you
start, though, consider this:
- The organization needs to be
well established at home, with money
to invest, not just in the first
year, but for a number of years.
- Acquiring new donors costs
money and it will take awhile to
break even.
- Take a good look at the
exchange rates and see how the
current accounting system is set up
to ensure that adding another
country to the mix is not a problem.
- Ensure that organization
personnel are available to deal with
issues that may come up.
Rules
for International Fundraising
- Pick a target country and
provide reasons why.
- Visit that country, online and
in person.
- Read, visit conferences, talk
to other organizations and local
people.
- Review which other
organizations are active. How are
they doing? What are they doing?
- Review the "giving"
culture in that country. Do they
give small gifts often (e.g. in the
Netherlands) or do they give big
gifts less often?
- Evaluate the options and
expenses of a local office presence.
- Decide how to direct the
fundraising. Will it be handled from
that local office or from the U.S.
headquarters?
- Decide which media to use for
fundraising. Is direct mail an
option or are other approaches
better?
- Ensure that there is PR
support.
- Obtain the best legal advice
on how to register and organize the
organization.
- Obtain the best tax and
accounting advice available.
- Review such items as:
- Lists, are exchanges allowed?
- Response devices, postal forms
or checks?
- Data entry options
- Privacy standards
- Regulatory standards
- Payment types
- Ask amounts
- Donor services standards and
guidelines
- Postal guidelines and delivery
reliability
- Production options
Translations/space needed for text (e.g. German
needs 20% more than English)
- Get expert advice from
an agency or consultant who has done
it before and knows the pitfalls and
opportunities.
- Prepare a budget based
upon a test and rollout options.
- Keep asking lots of
questions.
The
great news is that asking for money is
universally accepted. It’s just a
matter of how and how often. Above all,
international fundraising requires:
communication between offices; IT
support/database; sticking to the rules
and requirements; willingness to be
challenged; commitment.
Now,
let the test begin!
Erica Waasdorp is with DMW, where she has been
vice president of fundraising for over
two years. Before that, she was
marketing manager at the International
Fund for Animal Welfare, directing
monthly and high donor direct marketing
campaigns in seven countries.
Erica can be reached via ewaasdorp@dmwdirect.com
or (774) 773-1200 Ext. 224.
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