Secret #4 – The "Ultimate" Key to Fundraising Success – Underwriting

What I am about to offer you is without a doubt, the #1 Key to a Charities Ultimate Success.  At BW Unlimited Charity Fundraising we take great pride in the fact that we live every day under one simple mantra “Charity First.” Today, when companies all over the world are only concentrating on their profit, the Fundraising Experts at BW Unlimited are focused on our charities profits first.

In all of the meetings that I attend, rubbing shoulders with charity employees and volunteers, not one of them has ever mentioned this method or brought it up in conversation.  It is the #1 answer to all the blogs I have written and to the many questions charities ask us before working with them.

What I am referring to above is the fundraising method of “Underwriting.”  Underwriting is a lesser form of Sponsorship but it impacts an event in two ways:

#1 – It pays for all service costs and auction items, but most importantly

#2 – It creates a very focused marketing tool for donors and their businesses

Underwriting can best be defined with a very real financial acronym “OPM” – Other People’s Money.  Even though this term seems crass, it truly answers charities problems.  Here is why it is the answer to a charities prayer:

In the world of charity fundraising, charities will incur certain service costs in order to host their fundraising event.  In fact, they are already getting these costs underwritten but don’t realize it.  For instance, Event Tickets – charities charge a ticket cost, which defers the cost they are paying to the venue for each individual meal.  However, there is no marketing for each person that is “donating” his or her money for the ticket.  Before I go too far, I need to define and explain Underwriting.  Prior to seeking it, a charity needs to identify all of the service costs and auction item costs, which they are incurring.  For instance, all of our BW Unlimited Charity Fundraising No Risk Auction Items are available to a charity for their fundraising event, along with the associated cost to non-profit for each item.  Pre-event, a charity chooses perspective businesses or supporters and asks them which item or items they would like to underwrite or pay for in advance.  They donate the money (the cost to non-profit) to pay for the item therefore allowing all profit, when auctioned off, to go directly to the charity cause. 

However, we need to fully understand the real reasons why businesses and individuals donate.  As an example, how many hospital buildings, libraries and museums do you see with someone’s name attached?  Part of the agreement when these philanthropists informed the charity of the anticipated donation, was that the building be named after them, therefore marketing the business or individual.  Make Sense?

To re-emphasize the point, Underwriting:

#1 – pays for all service costs and auction items …

#2 – creates a very focused marketing tool for donors and their businesses - Every business needs to be marketed.  In fact, they pay for marketing via print adds, commercials etc.

Now, marketing for the donor or business may simply be a “Tent Card”(a small white card folded in half) next to the item with “Donated by Dr. John Smith” and their website or address. Remember to list all of the Donors or Underwriters in the Event Program (this allows for 2 of the 3 forms of marketing).  Then, during the event, the Master of Ceremonies (MC) should announce all of the donors while thanking them – that’s #3.  If the donors are in the crowd, they will love it and especially if they are

asked to stand or raise their hand.

If Charities get the items in the Live Auction underwritten, the Auctioneer can read the name of the donor while preparing to sell the item and ask them to stand.  Again, this is especially effective if the Underwriter or Donor is a guest at the Fundraising Event.  They will receive a fantastic round of applause, which everyone loves. 

Here perhaps is most likely the Ultimate Secret.  When I tell you this, a light bulb should go off in your mind with you telling yourself “WOW…” 

With all the blogs I have previously written, we talked about Donations as well as the formidable charity competition in your area.  I have recommended that you research this site to find out how many charities are in your area by looking up your city, county or state on www.taxexemptworld.com.  After you check this link you will either be amazed or suddenly have a sinking feeling.  Without going into it, all of these local charities are asking the exact same businesses to donate just like you.  Please see my blog "The Evolution of Charity Fundraising" for more on this.

But here is the “Secret” that will astonish you, guess which businesses are rarely if ever asked to donate?  Professional services such as Doctors, Lawyers, Realtors, Accountants, and Consultants etc.  Why?  Because they do not have anything (i.e. an item) to donate from their business!

What is even more exciting…these professional people and businesses are normally in attendance at every charity fundraising events.  Another set of businesses that are never asked is suppliers such as office supplies, electric Companies and real estate owners.  One humorous business that we assume is never asked to donate, because oddly enough, what would they donate?  Trash Collectors.

Service providers such as Landscapers, Painters, Construction Companies and so on

would love the chance to underwrite something at your event because they can only donate services and due to high employee cost cannot offer this.  Every single business out there would love to put up a billboard to your guests, let them!!!

Then if you really want to step it up, you can go to the same businesses that everyone else contacts to ask them to underwrite much higher profile items.  Now if you remember me telling you that businesses are donating items not sold in their stores, the item that they can underwrite is much higher profile.   And after speaking to these business owners, many will tell you they would rather write a check instead of donating something.

Charities can underwrite everything from the cost of the items they utilize on the Live and Silent Auction, the cost of the Event Program, DJ or Band, the decorations and so on.  If you are reading this, I recommend that you immediately begin to write down all of your costs, talk to your committee or team and go after underwriters – you will be astonished – just remember who suggested it.

BW Unlimited Charity Fundraising is a Leader in Charity Fundraising in North America.  BW Unlimited Charity Fundraising provides everything a charity needs in a “One Stop Shop” setting.  We provide a wide array of “No Risk Auction Items” to services such as Check in and Check out personnel, Silent and Live Auction Assistance as well as a top-rated Auctioneer in North America.  The Fundraising Experts at BW Unlimited provide their expertise absolutely free of charge to ensure that our charity clients are extremely successful.  If you would like our help, please do not hesitate to contact us today at www.BWUnlimited.com.  We look forward to helping you exceed your fundraising goals for this year and many years to come.