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08 Dec 2008, 12:58
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Well, after writing the CFA Level I this weekend I'm faced with one of those rare and wonderful things - free time. I'm planning to pursue a long-time interest of mine and start a small non-profit teaching finance/money management basics to youth. Due to work constraints, I plan to keep it to a weekend based camp. I know there's a ton of experienced, worldly individuals on this board - figured it'd be a great place to draw some insight and advice before I start down this path. So, does anyone have anything they'd like to throw out there - personal experiences, potential problems, success stories?
Thanks in advance, this board is such a wonderful resource...
Thanks in advance, this board is such a wonderful resource...
09 Dec 2008, 13:38
Kudos
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Early last year, my roommate wanted to donate some of his year end bonus to good cause and started a micro-financing foundation for third world countries.
He personally started it last year with $1000 seed money and funded about 40 different business ventures in India, and other developing countries.
This year he wanted my advice on how to expand the operation, especially with increasing the size of seed money. He wanted a plan to gather people to donate money but wasn't sure how since his foundation isn't well known.
this is what we did based on my tax expertise from my taxation days.
First, we registered his foundation with IRS. This way, whoever donates money to his foundation can legally deduct this contribution from their federal taxes.
Secondly, now that he was registered with IRS, we were able to take advantage of Corporate foundation matching gifts. For example, if my roommate decided to donate $1000 again....rather than donating it himself, he would separate $1000 to forty distinct payments of $25. He would give this $25 sum to a friend/family who works at a company with matching gift program and donate in their name. In turn, each individual would report to their company that they donated $25 so the company can match the donation to the charity. Therefore, each $25 donation of his own money) becomes $50....GENERATING 100 PERCENT return.
Thirdly, to prep for next year's donation campaign...we decided to add list of all companies (that made matching companies) in promo materials for publicity. This way, it legitimizes the charity to people who aren't familiar with the charity (potential new donors).
Also, every time someone sends hima thank you note etc, he would save it so he can publish them on his website (which is still currently under construction).
He personally started it last year with $1000 seed money and funded about 40 different business ventures in India, and other developing countries.
This year he wanted my advice on how to expand the operation, especially with increasing the size of seed money. He wanted a plan to gather people to donate money but wasn't sure how since his foundation isn't well known.
this is what we did based on my tax expertise from my taxation days.
First, we registered his foundation with IRS. This way, whoever donates money to his foundation can legally deduct this contribution from their federal taxes.
Secondly, now that he was registered with IRS, we were able to take advantage of Corporate foundation matching gifts. For example, if my roommate decided to donate $1000 again....rather than donating it himself, he would separate $1000 to forty distinct payments of $25. He would give this $25 sum to a friend/family who works at a company with matching gift program and donate in their name. In turn, each individual would report to their company that they donated $25 so the company can match the donation to the charity. Therefore, each $25 donation of his own money) becomes $50....GENERATING 100 PERCENT return.
Thirdly, to prep for next year's donation campaign...we decided to add list of all companies (that made matching companies) in promo materials for publicity. This way, it legitimizes the charity to people who aren't familiar with the charity (potential new donors).
Also, every time someone sends hima thank you note etc, he would save it so he can publish them on his website (which is still currently under construction).
09 Dec 2008, 13:56
Kudos
Bookmarks
As someone with experience in international development/microfinance, I'd add that while the above poster's roommate's intentions are totally awesome, you should think pretty carefully before starting your own gig. This is cross-applicable to many non-profits, really... there are big economies of scale at work, and larger, more established organizations can often leverage your money much more effectively by spreading out overhead costs.
Things to think about: is there a particular niche I'm trying to target with my own organization? Something no one else is doing that I think is really important? Why would starting your own fund/organization/whatever be more efficient and effective than donating that money to an existing one?
Things to think about: is there a particular niche I'm trying to target with my own organization? Something no one else is doing that I think is really important? Why would starting your own fund/organization/whatever be more efficient and effective than donating that money to an existing one?
