Noncash gifts predict long-term fundraising growth. Non-profits raising over $1M between 2010 and 2015 and reporting only cash gifts on e-filed tax returns experienced an annual growth rate of 11% over five years, barely keeping up with an 8% inflation rate. In contrast, those reporting CONSISTENT noncash gifts of securities grew 66%; six times greater than those receiving only cash – emphasis on CONSISTENT.

Wealth is not held in cash. Generally speaking, cash constitutes 3% of available wealth. Psychologically, schools face a real challenge in fundraising because many parents and grandparents think their cash tuition payments are all they can provide. When there is an additional need for expanding programs, scholarships, or capital campaigns, the combined needs seem impossibly large when mentally processed from a donor’s cash perspective. Those same needs may be viewed as vital and reasonable when processed through a mindset of total available wealth.

While it is hard to believe, many donors who have never made a gift of appreciated assets are unaware of the tremendous benefits of doing so. Developing a communication strategy that systematically educates parents and grandparents about creative, tax-wise opportunities to invest this way should be received as a deposit into the spiritual life of a family versus a cash withdrawal. Such a communication strategy, however, requires more than an occasional sentence in a newsletter that the school receives gifts of stock.

Cash gifts are wonderful, but they are more like gleaning a field rather than harvesting where the opportunity is greatest.

Significant content in this Giving Guide comes from “Cash is Not King in Fundraising” by Professor Russell James III, Director of Graduate Studies in Charitable Financial Planning, Texas Tech University.

Continue the Conversation

As a partner serving The Collaborative, the National Christian Foundation Twin Cities will provide future guidance on communication strategies for schools. Schools can also access individual consulting at no cost through:

Jay Bennett
[email protected]

Tyler VanEps
[email protected]