Fund-raising
From Encyclopædia
Fund-raising is an activity whose purpose is to encourage voluntary contributions of
money to such entities as educational and religious institutions and public-
interest and social-welfare organizations. (For coverage of fund-raising for political candidates, see
political campaign.) Many organizations seek their funds from
foundations and endowments and business corporations rather than individuals. Although organized giving takes place throughout the
world, it assumes a special importance in the
United States, where government plays a smaller role in supporting services than in many other countries. Subject to restrictions introduced in 1986, charitable donations may be deducted from federal
income tax.In 1989, a total $114.7 billion was given in the
United States, of which $96.4 billion came from individuals: the rest was donated by businesses and foundations and through bequests. About 54% of the total was donated to religious organizations. Many donors make small contributions on a regular basis, such as weekly or monthly, a tradition that has its roots in tithing. Many religiously sponsored organizations, such as the Jewish Family Service or Church
world Service, however, raise
money separately for the welfare services they provide. These and other humanitarian organizations mount special drives to raise relief funds for the victims of particular disasters, such as earthquakes and famines.
education accounted for about 10.5% of total donations in 1989. Institutions of higher
education often direct much of their fund-raising efforts toward alumni giving and bequests. The health-care field also received about 10% of the total; giving in this area is dominated by foundations rather than private individuals. Social-welfare groups received over 11% of the total, the largest single portion going to local agencies through avenues of the United Way (formerly the Community Chest), the
umbrella organization for annual community fund drives.About 7.5% of all donations went to arts and humanities groups. Public radio and
television stations periodically broadcast their fund-raising campaigns. Civic and public groups, such as the Sierra Club or the
National Association for the Advancement of Colored People (NAACP), received 3.5% of the total.Many large organizations, such as the
American Cancer Society, conduct nationwide campaigns and often employ professional fund-raising staffs. Some organizations retain nonprofit fund-raising firms whose remuneration is a flat fee, based on the time necessary to raise the funds for their client organizations. Both mail and direct-contact campaigns are used by professional firms. Much fund-raising activity, however, takes place at the local level and is organized by nonprofessionals. Such activities as the fire-department breakfast, fairs, and walkathons frequently support vital local services and secondarily provide a focus for community involvement for many.Fred SchnaueBibliography: Bayley, T. D., The Fund Raiser's Guide to Successful Campaigns (1987); Broce, Thomas E., Fund Raising: The Guide to Raising
money from Private Sources, rev. ed. (1986); Heetland, D.L., Fundamentals of Fund Raising (1990); Hopkins, Bruce R., Charity under Siege: Government Regulation of Fund Raising (1980); Kelly, K.S., ed., Fund Raising and
public relations (1991); Schneiter, Paul H., The Art of Asking: How to Solicit Philanthropic Gifts (1985).
