White Paper For Operation Funding of Alumni Affinity Organizations
November 12, 2008
Leaders of alumni organizations are seeking guidance concerning the nature of events that the RUAA anticipates will occur as organizations become self-reliant and entrepreneurial to fund their operations. Organizations want to know what may be done to generate operating funds as a chartered alumni organization of the RUAA. Similarly, organizations are seeking assurances that the traditional events they have held can be continued.
This document has been developed in response to some of the concerns expressed by leaders of alumni organizations regarding their source of operating funds as a chartered alumni organization of the RUAA. It is intended to by a dynamic document that will be updated and revised as necessary to best respond to the questions, ideas and concerns of our alumni organizations.
Although not every possible concern or solution is addressed below, please keep in mind the spirit of the intent of these practices as we continue to develop and distribute tools and resources that ensure the livelihood of chartered organizations.
Encouraged Fundraising Practices:
- Soliciting Funds For Scholarships
Fundraising for scholarships through the Rutgers University Foundation is an important part of the programming for many clubs and Associations, and is strongly encouraged. Organizations which don’t currently have a scholarship component are invited to work with Alumni Relations staff to set up a recognized scholarship that will accept tax-deductible donations in their own name.
Organization events held to raise money for a scholarship, school or program in cooperation with the Rutgers University Foundation or a specific dean are similarly encouraged.
Encouraged Revenue-Generating Practices:
Organizations are encouraged to develop programming that is self-sustaining. Event fees should obviously cover costs, but may also produce a reasonable excess margin. This common, non-profit model provides organizations with a revenue stream for events and activities, which can then be used for such needs as facility deposits and/or to subsidize future event fees, such as a comp for a featured guest. This model is also an excellent way to raise money for scholarships or operating expenses. While there is no limit placed upon the size of the “margins”, organizations will want to price the cost of attendance in a manner that does not curtail participation.
- Charging Program or Participation Fees
Many groups sponsor special programming that requires those that take part to pay a fee in order to participate. Organizations may pass costs associated with this special programming on to their constituency, and can even build in an excess margin. For example, the Rutgers Alumni Crew Club in Camden incurs fees to house boats and participate in regattas, which are passed on to each participating member.
Subscriber fees can also be a great way to offset costs for an organization’s publications, newsletters, and websites.
- Adding Fundraising Elements to Programming
Fundraising elements that are part of an event or program are encouraged. Activities such as auctioning off Rutgers merchandise, “silent auctions,” selling items at a profit or adding in activities designed to turn a profit can produce revenues while engaging event attendees at the same time. However, direct fundraising solicitations for individual organizations should not be undertaken (see pg 2).
Organizations are encouraged to collaborate with local vendors for merchandise, event space or other items from individuals or companies who wish to lend their support to specific events or programs, or the club in general. In the past, groups have been able to secure donated event space, food and merchandise. Sponsor or Ad books are another way the group can integrate the community into their events.
- Utilization of Alumni Relations Resources
Many traditional organization costs can be avoided by utilizing the resources that Alumni Relations makes available to its chartered groups. Instead of printing and mailing a paper newsletter, consider options such as e-mail blasts, blogging online at Ralumni.com or including information in Rutgers Magazine, which now goes to all alumni. If you do decide to do a print piece, utilizing Rutgers design templates can help save your design costs.
Participation in pre-planned Rutgers events saves costs. For example, instead of planning an individual Homecoming, an organization can save marketing costs and increase attendance by having a presence at the University Homecomings that take place on all three campuses. The RUAA encourages all affinity groups to have a presence at these large, University-wide events.
Of course, the Department of Alumni Relations will also continue to provide groups with Rutgers-themed items for decoration, as well as giveaways that groups may distribute free of charge.
Information Regarding the Responsibilities of Chartered Organizations
November 12, 2008
The Chartering Documents of the RUAA states:
- Groups must agree that no dues will be collected by the group
The idea of no dues is a direct correlation to the RUAA’s belief that the concept of dues is a barrier to engagement. All Rutgers alumni should feel free to connect and engage with the University at no cost to them.
- Agree not to enter merchandise or other third party contracts in which royalties are received by the group.
This means that groups should not enter into competing contracts with third-party vendors such as Credit Card or Insurance contracts that generate royalty fees and will send duplicate or confusing messages to alumni.
- Agree not to solicit donations to fund the group’s operating budget
Chartered groups should not participate in direct solicitations to alumni for donations to fund their groups. This requirement prevents alumni from receiving multiple, confusing requests for donations from different groups and also protects the interests of the University’s official fund-raising arm, the Rutgers University Foundation. It also ensures that every donation an alumnus makes back to Rutgers is recognized and given proper donor and tax credit by The Foundation.