DIRECTOR’S VISION – KIRK CORDELL, EXECUTIVE DIRECTOR
The
Center has an immediate need for a Friends group that can provide us with
flexibility and support in conducting our programs. While a capital campaign, as
discussed below, would be very beneficial to the Center, it will take years to
bear fruit. We need a non-profit partner right now that can assist us,
particularly with our training and publications activities. I envision something
like an NCPTT Institute that will serve as a partner in all of our training
efforts. The Institute could take on the administrative functions, receiving
tuition, paying outside instructors, arranging food service, handling credit
card payments, and generally helping us with the parts of our work that are so
challenging to do within the government. Our staff (and others we bring in)
would serve as faculty and design and manage the content of the courses, but the
Institute would make the money off of them, using the profit (if any) to seed
the next course(s). Procurement would be simplified, services enhanced, and if
the training program grows as I hope it will, the Institute could even hire a
part-time person to handle some of the administrative work (we would have to do
whatever it was legal to do until they could take the work in-house; it would be
well to associate the Institute with a community foundation, the NSU Alumni
Foundation or a similar entity to facilitate administrative matters in the early
period.) We could use similar assistance with the printing and distribution of
publications. Right now we distribute Xerox copies for free, but a non-profit
partner could help us print and sell more substantial and professional versions.
501 (c) 3 DISCUSSION PAPER – NORMAN KOONCE, PTT BOARD:
IS THERE A COMPELLING NEED FOR A NCPTT CAPITAL
CAMPAIGN?
(Identify and define specific needs and/or opportunities of NCPTT that could
only be accommodated by the center through the proceeds of a future capital
campaign.)
-
Examples of needs may include expanded grant
capacity, creation of training programs, securing testing equipment, conducting
heritage education, development of products, new publications, etc.
-
Successful campaigns must be based on worthy,
well defined, justifiable needs for which the campaign proceeds will be
dedicated.
-
There must be a clear and compelling logic that
these needs can and should be met only (or most appropriately) by NCPTT.
-
When should such a campaign be conducted; in
the near future, or is later OK?
-
The above issues should be clearly defined in a
“case for support” that establishes and defines in a compelling manner that:
- There is
significant need for and benefit from the proposed initiatives,
- The most logical
source for providing these outcomes is the NCPTT, and
- The NCPTT will have
the resources and intent to deliver those benefits.
WHAT SCOPE OF CAMPAIGN WOULD BE REQUIRED TO MEET
IDENTIFIED NEEDS? (Responding to this question will require establishing
a goal, plan, budget, and timeline. Consider all resources
necessary to achieve the desired success. Include the expense of conducting the
campaign and operating the required not-for-profit corporation.)
What amount of funding would be needed for:
- Establishing and
sustaining the required not-for-profit corporation
- Achieving 501(c)(3)
status for the corporation from the Internal Revenue Service to allow
tax-deductibility of personal contributions
- Conducting a study
among prospective donors to gauge the potential for success of a campaign
- Covering the direct
campaign expenses of consulting, organizing, printing, communicating, traveling,
promoting, managing, acknowledging, etc.
- Fulfillment,
performance, and/or delivery of the products, programs, etc. for which the
campaign is launched
How much of the funding received could be
placed in an endowment to provide a future stream of revenue for continuing
delivery of the products, programs etc.?
OVER WHAT PERIOD OF TIME WILL VARIOUS ELEMENTS OF THE
CAMPAIGN OCCUR? (Consider the
period of time during which a campaign could be designed, implemented, and
conducted, and the number of years during which pledges would be collected.)
Following a decision to formally explore
opportunities for conducting a capital campaign, the first three to six months
would be consumed by finalizing the “case for support” of intended products or
programs, engaging interested individuals to organize and manage the campaign,
engaging a qualified firm to conduct a study of representative potential donors
to gauge the probability for success, establishing a not-for-profit corporation,
filing a request for the corporation’s 501(c)(3) status with the Internal
Revenue Service, and preparing an overall budget and plan for the campaign and
future use of the funds raised.
Nine to 12 months should be allocated for
active fundraising, including cultivation, solicitation, follow-up, finalizing
pledges, and stewardship. It is essential to keep in mind that major gift
requests should be made in person rather than by letter or telephone.
The campaign will yield greater results if
pledges can be paid by the donors over a three to five year period rather than
expecting pledges to be paid at the outset in a lump sum. This, of course, will
require continuing management and donor stewardship responsibilities on the part
of the not-for-profit corporation to invoice, receive, manage, account for, and
disburse the funds received.
FROM WHAT SOURCES WILL CAMPAIGN FUNDS BE GENERATED?
(Identify potential sources of funding
for meeting the campaign goal, including, but not limited to, the following.
Consider why donors would want to give. What would constitute a “return
on investment” for businesses, manufacturers, and trade groups? What donor
groups might be in a position to set an inspiring example for others through
their giving?)
Members of the Advisory Board and NCPTT staff
(if not legally precluded from doing so) and individuals responsible for the
not-for-profit corporation could be those who set an inspiring example through
unanimous participation. Others include:
-
Corporations that manufacture products for
preservation work,
-
Organizations that promote and/or provide
training for preservation,
- Professional and trade group members who are
involved in preservation,
-
Foundations that make grants for preservation
initiatives,
-
Philanthropists who own and/or have an interest
in historic properties,
-
Governmental agencies, and
-
Others.
GENERAL COMMENTS FOR CONSIDERATION:
Seed money would be required to organize and
conduct the campaign. There will be costs for establishing the new corporation,
securing its tax deductibility benefit, conducting a feasibility survey, and
covering the direct operational expenses noted above. Some money from a
previous campaign is apparently being held for NCPTT by Northwestern State
University. The amount of that corpus and its availability for this use should
be explored.
It was stated in a recent Advisory Board
meeting that NCPTT staff and Advisory Board members are legally precluded from
participation in such a capital campaign, perhaps except for personal pledges
that they might make. Thought must be given to who can be depended upon to
organize, conduct, and manage the campaign and its proceeds into the future.
Keep in mind that the IRS generally requires that decisions regarding the
disbursement of any funds raised by a 501(c)(3) corporation are made at the sole
discretion of the governing board of the corporation. That governing board
would, in all likelihood, not include members of the staff or Advisory Board of
the NCPTT.
Highly qualified professional assistance is
available to conduct a study and evaluation of the potential donor base as well
as to advise or even to lead in the campaign operation itself. Expertise beyond
that of local or state fundraisers is generally required for a campaign with a
national appeal, which this should be. An introduction can be arranged by
request for the NCPTT Staff and Board to meet with a firm that provides the type
of competent leadership and advice needed.
Local attorneys have volunteered to offer
assistance in establishing the not-for-profit corporation and in applying for
the 501(c)(3) status from the IRS as noted during the last Board meeting. They,
with other community leaders, would likely consent to a continuing role with the
campaign and with future management of the corporation, based on recent
conversations with them.
Consideration should be given to deciding in
which State the not-for-profit corporation should logically be based. There
could be a requirement for payment of fees on funds raised in other states under
certain circumstances.
During your deliberation, keep in mind that
there are four essentials for campaign success: The first essential is PEOPLE –
those who provide the leadership. Next is a compelling “CASE FOR SUPPORT” – one
that excites and inspires. Then follows the need for a well-drawn CAMPAIGN PLAN
– evidence that this is a feasible undertaking. Finally, there must be
PROSPECTS for giving – those who will provide, from their wealth, the dollars
necessary to ensure success.
Conducting a campaign is seldom a one-time
event when there are compelling reasons for it being instigated. Those who
consider this possibility, therefore, should keep in mind the logic that this
campaign (should it occur) could spawn an ongoing development initiative for the
NCPTT. Remember, the best prospect for giving is the one who most recently gave
for your cause.
CHAIRMAN’S RESPONSE – ROBERT SILMAN, PTT BOARD CHAIR:
I
echo Kirk's sentiments (sent to you in an earlier e-mail) about the
thoughtfulness and comprehensiveness of your proposal [above]. My only worry is
that we may be faced with a large initial expense in hiring a firm that
specializes in establishing 501(c)3's to do our investigation and feasibility
work. It reminds me of the firm that we hired to do a business plan for us. We
spent a lot of money and have not utilized any of their suggestions. Perhaps
that is our fault, of course.
My
feeling is that we will only be able to raise money for very specific projects.
No donor is going to want to contribute to the US Govt. (even indirectly) to
establish something like an endowment or a general fund. As Kirk expressed in
his e-mail of last week, he can foresee an immediate need to establish an
'Institute'. I had a couple of other projects in mind, e.g. funding the
Wingspread Conference, giving the heritage education program a big kick start,
etc. I am sure there are many other projects we could think up.
Given this as a working premise, do you think that a research company would be
necessary to evaluate our chances of success in raising money? What sort of
research do they actually perform that we could not do ourselves? (Of course
time is the big problem, I realize.)