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  • Interactivites
    pause at any time by pressing the Pause button on the bottom left of the player The buttons at the bottom right of the player allow you to control the volume and shift the video to full screen On Screen Text Below the player you will find on screen text This includes the detailed information you will need to know in order to meet learning objectives for the lesson Icons

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  • Overview - Understanding Fee-for-Service Models
    Fee for Service Models One of the biggest challenges in working for a nonprofit or service organization is finding ways to pay the costs associated with offering a product or service Many groups implement a fee for service model as a way to cover their expenses Requesting donations requiring fees or implementing membership dues are all examples of fee for service models At the end of this lesson you should have the knowledge to Explain several fee for service models Identify the best model for your organization Assess your organization s core competencies and your ability to launch a fee for service venture and Apply the necessary planning elements prior to launching a fee for service model within your organization Thorough planning is essential when you re implementing a fee for service model The most important thing to remember for any organization considering a fee for service approach is to plan thoroughly Having a business plan conducting a market analysis and considering both what you have to offer and who might be willing to pay are vital pieces of the planning process This lesson will help you understand fee for service models and implement one for your own organization At

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  • 1 - Types of Fee-for-Service Models - Understanding Fee-for-Service Models
    based organizations and community organizations experience both decreases in funding and increases in demand for their services Additionally expanded competition among organizations for the same capital sources adds to the scarcity of resources Signs and flyers are a subtle way to ask for voluntary donations You need Adobe Flash Player to view some content on this site There are five commonly used fee for service models The five types of fee for service models include mandatory voluntary or requested fees membership programs and hybrid approaches You can pick and choose elements of each to create the best model for your organization The information in the following chapter will help you identify the optimal model for your group Mandatory fees are predetermined prices or fixed fees charged by an organization based on specific criteria To meet legal and IRS standards these fees must be below the market rate i e the amount that would be charged for similar services by a for profit or private organization Public universities hospitals and state and national parks operate under a mandatory fee model A voluntary donation model is when services are provided for free but donations are requested to cover the costs This method is a good way to introduce the concept of paying if the population you serve isn t used to paying fees This strategy is the least invasive but it s also the least effective Without more extensive information on what the fees cover or what the services actually cost in terms of labor and supplies people are not as compelled to give Those who do give tend to offer small amounts Requested fees are donations requested for each service provided to make clients aware of the cost to the organization This is a more direct method and it usually involves

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  • 2 - Identifying the Best Model for Your Organization - Understanding Fee-for-Service Models
    For example implementing a sliding scale of payments based on a client s revenue is one way to use segmentation a client with lower revenue would pay less for services Segmentation is a deliberate strategic method for gathering donations based on financial ability and level of services needed Using segmentation can offer your clients a sense of fairness and lend your group greater transparency Establishing your break even point can help you figure out how much to charge for a service How do you know what fees to charge or how great a donation to ask for You can determine these levels by establishing your break even point the price level at which you neither make nor lose money on offering a product or service Follow these steps to establish your break even point Determine the units of sale you will be offering Is it a single training or a series of trainings with one fee A children s activity event or an ongoing afterschool program Make a list of the fixed costs associated with the product or service Make a list of the variable costs associated with product or service Add the costs Determine sources of revenue you already have to cover the costs and determine what sources of revenue you still need to cover the costs Any additional revenue needed is the price per unit you will charge to be able to cover your costs You have now established your break even point Finding your break even point helps you know what fees to charge Rollover the words to reveal the definition You need Adobe Flash Player to view some content on this site Appropriate pricing is key to a successful fee for service model Once you ve established your break even point you ll know what your

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  • 3 - Steps to Implementing a Fee-for-Service Structure - Understanding Fee-for-Service Models
    standards that need to be introduced to staff and the training that may be required The bottom line Think through every area that makes you pause and create a policy and procedure around it Determine roles and responsibilities the resources you need and your business plan Carefully consider the duties your group will need to undertake and the appropriate person to handle each job What staff or volunteers do you already have on board to help you implement your new model Who will handle communications and marketing management oversight of financial and legal implications and the business plan review If this is a major change for your organization make sure you involve the right people in strategic and meaningful ways Will they be board members staff or stakeholders from the community constituents donor representatives community representatives Will it be some of these but not all Answering these questions will help build support and ensure your strategy is successfully and carefully executed Determine what human and other resources you need Consider what resources you need to implement this strategy Do the resources come from within or without the organization Are you going to have strategic partners Consider the cost associated with the venture Develop your business plan which is the blueprint of your business venture and the most important document when engaging stakeholders It encompasses a focused and systematic approach to the planning and implementation of the business Even though it is a labor intensive task it will help you avoid potentially costly pitfalls Can fee for service work for your organization Click this link to download the analysis table Can Fee for Service Work for Your Organization You need Adobe Flash Player to view some content on this site Outline your budget and a work breakdown structure Get a clear

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  • Summary - Understanding Fee-for-Service Models
    time to learn about fee for service models Please look below for additional planning resources Thank You Thank you for taking the time to learn about fee for service models With this information in hand you should now be equipped to Explain several fee for service models Identify the best model for your organization Assess your organization s core competencies and your ability to launch a fee for service venture and Apply the necessary planning elements prior to launching a fee for service model within your organization Explore these resources for additional information For more information check out the following resources Unrelated Business Income Tax UBIT http www irs gov pub irs pdf p598 pdf This publication will help you discern the circumstances that make an organization subject to the unrelated business income tax UBIT It also includes the filing requirements information on which practices are considered to be unrelated and where to go if you need additional information Small Business Administration SBA http www sba gov The SBA contains a wealth of information regarding small business startups and maintenance and the website provides free tutorials and resources Below you will find links relevant to the fee for service model Small business assessment tool http web sba gov sbtn sbat index cfm Tool 4 This assessment tool is designed to help you better understand your readiness for starting a small business It will prompt you with questions and assist you in evaluating skills characteristics and staff experience as they relate to your preparedness for starting a business The Small Business Training Network SBTN http www sba gov services training index html SBTN is a virtual campus providing quality and targeted online training to meet the information needs of prospective and existing small business owners To learn how to do a

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  • Identifying and Developing Donors
    A prospect is more likely to give if the person asking has a personal relationship with him or her A 2009 Indiana University Campbell Company study examined the characteristics of 8 300 donor households largest annual gift The results illustrated what fundraisers have often observed people are far more likely to give to people they know especially when the donations are solicited in person Donors who were asked in person by someone they knew donated 19 percent more 987 on average to secular charities versus solicitations from someone they knew via telephone mail or email 799 There are three ways in which your organization may have contact with a prospective donor First he or she might know a board member staff member or volunteer Second he or she might have a second degree connection to a board member staff member or volunteer for example they may have a mutual friend if so see if the mutual friend will allow you to use their name in soliciting a donation Third the prospect may be an existing donor to your group In this case you don t necessarily need an established personal connection you can emphasize your shared commitment to the cause You can also look to the following places for potential donor lists Friends or acquaintances of current donors Newsletters Annual reports from similar groups Symphony theater opera programs as well as information from art galleries and museums Other further connections personal telephone books places of employment chamber of commerce directories local businesses places of worship CHAPTER 3 Developing Donors Communication with your prospects is a vital part of the gift giving process Set goals around how often and in what ways you d like to be in touch Is once a month too much or not enough Would a newsletter be of interest or would an email blast catch their attention Communication will be even more effective when it targets people with the greatest potential for donating Positioning your cause in ways that feel relevant and meaningful to prospects is a key step in asking for their support Who are these people what s important to them and how can your cause address their needs Set goals for developing and engaging donors You want donors to give money or other resources that will support your program They re a lot more likely to do that if they are invested and engaged in the organization How can you make that happen Think about personal goals you can set concerning communication with supporters How frequently should you be in touch Once a month Maybe you want all supporters to visit your website because you have found that being able to see the work increases the size and or likelihood of a donor s gift Set specific goals that fit with your organization and its abilities Target the right people so it isn t hard to develop them Let s look more deeply at the ABC ability belief contact approach for identifying prospects Remember that CBA is the actual order of importance You can determine what makes a prospect right by working an existing connection Perhaps you have something in common maybe you both donate to your cause already you both know another donor or the prospect knows someone in your organization socially or professionally It s key that prospects believe in your cause and a big part of that is being able to see how a gift might affect them their community or those they care about Many people profess to care about most humanitarian causes However most people are more personally affected by what happens in their community to people with whom they interact on a regular basis Consider how you can bring your cause closer to the prospect s personal experience In terms of ability keep in mind that assets like a big house or fancy car could just as easily be indications of debt as indications of wealth A better indicator is how much the person gives to other groups Do they attend fundraising dinners and pay a high per plate cost What do you know about their discretionary spending Are they season ticket holders to sports games or theaters Do they participate in other expensive hobbies Remember the principles of value driven donor development Value driven donor development focuses on aligning what funders want with what you have to offer Here s a brief review of the principles of value driven donor development Research which individuals are aligned with your program s expertise see if you can find information on their past giving or areas of interest Organize your findings by making a chart with funders names priorities regions areas of alignment and your questions Determine how to position your services as a value add Communicate your value to the donor e g through a concept paper CHAPTER 4 How To Make The Ask Asking someone directly for their monetary support is the greatest chance you have of getting it Research has shown that email blasts and letter campaigns are far less effective than a person to person conversation about what your group does and why you need a donor s support You increase your chances for obtaining a gift even more when you can find a way to make the donor relate to your cause How will it directly affect his or her life What do you do that matters to this donor And what will their donation enable your group to accomplish Remember to address what s in it for the donor Tax write offs for both an individual and a corporation and having the chance to make a difference can be good motivators Know your prospect before asking for their support People say the number one reason they don t give charitably is because they haven t been asked The American Red Cross has utilized this message in its Consider Yourself Asked ad campaigns geared to motivate blood donations While the principle behind this campaign

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  • Interactivites
    money who gets the money Who gives the money who gets the money Download the charts here Text version of audio here Identifying Donors Explore the prospect tiers surrounding your organization Explore the prospect tiers surrounding your organization Text version of audio here Developing Donors These forms can help you organize your contacts with prospective donors These forms can help you organize your contacts with prospective donors Click here to

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