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Fundraising is a critical but often misunderstood LC activity. It's not just a way to make lots of money. It's a way for your LC do more of the cool stuff that IAESTE is known for. Get a feel for real fundraising here, and then go out and do it!
For documents associated with fundraising, visit our Documents and Downloads page.
Overview
Fundraising is an effective tool to expand LC activities and give members increased opportunities to take advantage of IAESTE events and experiences. The key to fundraising is to have a plan that outlines financial needs, fundraising resources, and activities while considering priorities. A variety of businesses and organizations have money earmarked for supporting organizations such as IAESTE United States that benefit the community. LCs should secure university funding first. Supporters give money for different reasons. Businesses seek to increase visibility and highlight their relationship with the organization, while other organizations simply want to support groups that help the public good. IAESTE United States' mission of developing global skills in tomorrow's technical leaders is ideal among technical companies and universities.
The National Committee conducts a nationwide fundraising effort to support all LCs. Therefore, it is important to make sure that you are partnering with the National Committee before approaching a company or organization for sponsorship. To maximize corporate giving, the NC coordinates who is being asked for money. Your Regional Coordinator can help you improve your chances of receiving funding.
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The Fundraising Plan
IAESTE Local Committees should only engage in fundraising to support the activities of the Local Committees and the mission of the organization. It is important to think about why you want to raise funds, and not just how to raise funds.
It is critical for the LC to create a fundraising plan. This plan is detailed in the Fundraising Workshop at the Fall Regional Conferences, and a fundraising presentation is available to download here. A plan, no matter how small, is crucial for success. The LC President should work with LC officers and the faculty/staff advisor to develop a list of LC goals for the upcoming year. A fundraising plan is then created to seek support for these goals. At the end of the year, the fundraising plan must be evaluated and passed on to the next President and Fundraising Chair/Treasurer to ensure continuity and future fundraising success.
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Setting Goals
It is essential for the President and Fundraising Chair/Treasurer to identify fundable goals for your LC. Goals should address the costs associated with running a Local Committee, such as:
- Operational expenses: copying, office supplies, and phone charges.
- Sending members to IAESTE events and conferences: how many members do you plan to send to the National Conference, and JUMP?
- Hosting a Fall Regional Conference, GeTogether, or spring retreat.
- Reception of international interns: events, cultural activities, field trips, and transportation.
- LC specific job-raising materials and events
- Social events: bowling, pizza parties, study abroad fairs, and campus events.
- Meetings: refreshments and equipment rental.
- Fall Kick-Off Event or employer appreciation reception.
- T-shirts and other promotional items.
- Developing other annual activities for members such as visiting a high school to talk about international programs.
- After determining your goals, you should prioritize them while maintaining realistic expectations. Once again, utilize your Regional Coordinator to assist you in this process.
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Budgeting
Once your LC has established its goals for the year, it is important to create a budget in order to reach your goals. Consult with your Regional Coordinator and other LCs to determine costs associated with specific activities.
All LC funding must be spent in accordance with this budget and with IAESTE United States Policies, particularly the IAESTE United States Policy on Alcohol and Controlled Substances. If you are unsure of the proper use of LC funds, you should contact the National Office.
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Types of Fundraising
All IAESTE United States fundraising at the national and LC level is broken down into three categories: sponsorship, donations, and earned income. Please consult the IAESTE United States Policies for specific guidelines. These categories were created to comply with all Internal Revenue Code and may differ from your universities guidelines for fundraising. Therefore, always consult your Student Activities Office, Office of Campus Activities, Student Union, Dean of Students, or other appropriate office for student affairs before participating in fundraising activities (especially sales). These offices often require pre-approval and have specific campus guidelines on acceptable fundraising activities. In addition, they also may recommend several ideas that have worked for other student organizations.
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Sponsorship
Sponsorship pays for specific IAESTE LC activities and/or events (or even products like an IAESTE LC t-shirt). For any sponsorship over $250 (including donated items or services), an LC is required to provide the sponsor with a receipt showing that the amount is tax deductible, providing the amount donated is equal to the value of the service or activity. IAESTE United States has the necessary receipt forms to assist LCs in providing receipts to sponsors.
In addition, all sponsorship should be reported to the National Committee on the semi-annual financial report submitted at the end of each semester or other required financial reports for IAESTE approved events (spring retreat, fall regional conference, etc.). An example of sponsorship might be: "XYZ Company gives $50 to the LC for food costs at a meeting" or "Jimmy's Restaurant pays $500 to sponsor an LC speaker".
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Donations
Donations are defined as a financial contribution that supports the general efforts of IAESTE United States and its chapters. IAESTE United States' parent organization, AIPT, currently conducts fundraising efforts to financially support IAESTE United States. This financial support assists IAESTE United States with programs, scholarships, and LC support. AIPT is legally registered to administer this type of financial support in cooperation with IAESTE United States and the respective donor. While a donor can specify that funds be used to support your LC, all donations made to the LC must be paid to the National Office. Checks should be made payable to IAESTE United States/AIPT. All members are encouraged to submit names of potential donors to IAESTE National Office staff members. If you locate someone who is interested in supporting IAESTE United States, you should direct them to your Regional Coordinator or to the fundraising section of our Web site. The Web site lists the funding initiatives and campaigns currently underway. An example of a donation would be a successful LC alumnus who would like to donate $300 to support your attendance at a National Conference.
Note: funds provided by your university are the exception to this rule. Since you are an official student organization, grants, donations, and other forms of university support do not need to be paid to the National Office.
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Earned Income
Earned income refers to actually selling a product or service for a fee. All sales must be conducted in accordance with university policies. Examples include: bagel, bake or hot dog sales, car washes, cleaning university sporting venues, and t-shirt sales.
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Identifying Your LC's Fundraising Resources and Activities
It is critical to identify and use the resources at your LC's disposal to develop fundraising activities to reach your goals. Older LCs are excellent resources for new LCs trying to locate financial support for their activities. In the past, LCs have successfully obtained funding from the following sources:
Your University
Funds can be obtained by the university at large or within specific colleges or academic programs. You should contact your Office of Student Organizations or your Dean of Student Affairs to inquire about possible university grants or funds available to student groups. Your faculty/staff advisor may also have recommendations for campus offices that fund student groups. Be sure to request funds by all university deadlines and adhere to university policies for using funds.
Engineering Student Councils
Student councils, most notably those in the college of engineering, are also an excellent source of information and funding opportunities. Engineering student councils are often responsible for funding student groups within the college of engineering. Engineering student councils are run by students and are part of a national organization for engineering student councils.
Local Companies and Other Organizations
You should also consider approaching local companies or organizations for sponsorship; possibilities include restaurants, merchants who are targeting students, the chamber of commerce, and technology or business development councils. When approaching an organization, follow these simple guidelines:
- Review the IAESTE United States Policies on Fundraising and ask your Regional Coordinator for guidelines.
- Local restaurants and merchants often give managers authority to make some donations of merchandise or food to non-profit groups. If you are hosting a conference or other event that requires food, visit locally owned restaurants and ask to speak with the general manager regarding your request for a donation.
- Before writing to a company for contributions, identify the person who is responsible for administering funds. Call the company's general phone number to confirm the name and title of the contact. This person may be in the marketing or sales departments.
- Send out fundraising letters as far in advance as possible, since companies may not have available funds in their budget if you ask at the last minute. Coordinate this activity with your Regional Coordinator.
- Your request letter should be direct, clear, and concise. This letter should contain background information about IAESTE and clearly communicate our mission. Include a financial overview, which specifies how much money is needed, why it is needed, and what it is going to be used for. Many organizations have certain aims, so you should convince them that your event or activity supports their aims. If possible, enclose a recommendation from a supportive professor or industry contact.
- Be sure to follow up. Give the company about two weeks to respond, and then follow up with a phone call to introduce yourself and ask again for the company's support. Refresh the contribution administrator's memory as to why your request is unique and worthy of funding. If your request has been denied, it is appropriate to ask why. This information can help you with future fundraising letters. The conversation may start like this: "This is (name) from the (university) Local Committee of IAESTE United States. I sent you a letter recently about the Regional Student Conference we're hosting on (date), and I'm calling to see if you have a moment to discuss my funding request."
- Be assertive, but friendly. Above all, don't be shy. Many people are uncomfortable asking for money, but there is no reason to be. Companies are often interested in giving money to organizations like yours and they expect solicitation letters and calls.
- It is important to thank those who financially support your efforts. The Internal Revenue Service requires LCs to provide a receipt/thank you letter to those providing financial support in excess of $250. Donations are tax deductible in most cases, provided the amount given is equal to the fair value of the service or product. The National Office can provide you with a template for such a receipt.
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Fundraising Tips
When asking someone to sponsor an LC activity, it is important to show that the funding will be used to support goals and activities of the chapter and benefit members and participants. You should also emphasize that the LC is an organized group that will effectively use the money requested for specific items. People will only give you money if you can explain how this money will be used and how this will benefit your LC's goals. Therefore, it is important to be able to succinctly explain your LC's goals for the year.
Many employers will "match" the charitable donations of their employees. If you solicit donations from individuals, it is important to ask whether their employer matches donations. This can double your fundraising power.
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LC Bank Accounts and required Reporting to the NC
Every LC is required to have an LC bank account. IAESTE United States will provide all LCs with a Federal Tax ID number that should be used to establish the LC bank account. The NC can only make checks payable to LC accounts. Because your university may have specific rules on how student organizations set up and use accounts, please consult with your university for complete guidelines. Consult your Regional Coordinator if you need assistance with this matter.
Since your LC is an affiliated member of IAESTE United States and its parent organization AIPT, IAESTE Local Committees are required to provide a Semi-annual Financial Report to the National Office. This report must be completed and returned to IAESTE United States at the end of each semester (fall semester deadline is December 1; spring semester deadline is May 1). The report must include the previous balance and detail all LC expenses, as well as any sponsorship, earned income, or other funds issued to the LC by the National Committee. LCs failing to submit this report will face one or more of the following sanctions:
- Loss of earned finders fees
- Relegation to probationary status
- Loss of charter/affiliation
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Other Resources and Links
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