The Fund was formed to support organizations in Illinois which are actively engaged in programs directed toward community improvement, social change, citizen education and empowerment; or work to enable people to achieve fuller participation in society by eliminating social, economic, cultural and/or political barriers. The principle goal is to provide financial support through contributions from payroll deductions.
There are five reasons why payroll deductions are an effective and highly recommended strategy:
- It's Effective. As a fundraising mechanism, workplace solicitation has a remarkable track record. In 1990, United Ways raised $3.11 billion with more than $2 billion from payroll deductions. In 1980, alternative funds raised 3.5% of what the United Ways raised, by 1990 they had raised $205 million or more than 10% of all workplace contributions.
- It's Efficient. Although the start-up costs and time are prohibitive for a single organization, the maintenance costs/time is extremely attractive for coalitions. Because of employer subsidies, employee receptivity and volunteer/member organization work, the costs of maintaining a federation are usually kept to less than 25% of total receipts. Many funds keep their administrative/fundraising costs under 20%.
- It's Stable. Almost 80% of workplace donors repeat their gifts to the same federation year after year. On a national average, 30% of a given workforce contributes through workplace solicitation (MUCH higher in private workplaces). Of this 30%, Alternative Funds usually receive between 7% and 20% of all gifts. But this share continues to grow as these funds become more sophisticated and better known among employees.
- The Message. The traditional images put forth in workplace campaigns are of patronizing donors and helpless victims. Alternative Funds empower both donors and constituents with funding self-help, constituency controlled organizations. Presenting this message to millions of employees each year makes workplace solicitation worthwhile, aside from the money raised.
- The Type of Money Raised. As critical as the amount of money raised (it averages $1-2,000/member in first year campaigns and $7-25,000/member/year for five year old campaigns) is the type of money raised. Workplace fundraising receipts are virtually string-free, stable and earned income - all the characteristics of fundraising which we have been taught to value.
Organizations must:
- Provide services in Illinois;
- Have 501(c)3 tax exempt status;
- Have been incorporated for at least three years;
- Be committed to equal employment opportunities and be in compliance with the Illinois Human Rights Act;
- Demonstrate fiscal soundness;
- Must not prohibit its employees from collective bargaining, and;
- Must not be a member of any other federation or fund whose sole purpose is fundraising.
A wide range of employers throughout Illinois offer the Public Interest Fund of Illinois as a payroll deduction option for their employees. In addition to all federal and state employees, many universities and local governments and an increasing number of private corporations offer their employees the opportunity to contribute to the Public Interest Fund of Illinois and its member organizations. For a complete listing see employers on this homepage. What commitments are asked of participating organizations? The Public Interest Fund of Illinois has established two levels of membership which have different levels of participation and benefits:
- Full Members. Full members are asked to make three basic commitments.
Each new member organizations is asked to pay an initiation fee ($1000 for local groups; $1500 for statewide organizations) and annual membership dues ranging from $250 to $500 depending on the size of an organizations budget Full Members shall designate one representative to the Fund's Board and must abide by the policies and rules established by the Fund Board. In addition to receiving contributions designated to their organization, Full Members also share in any contributions not designated to a specific member. These funds are divided on a sweat equity formula developed by the Fund Board.
- Associate Members. Associate members are asked to make less of a financial and time commitment, but do not have representation on the Fund Board and do not share in undesignated contributions. Associate members pay a lower initiation fee ($250 for local groups; $375 for statewide organizations) and annual membership dues. Associate members are not required to provide a specific number of volunteer hours, but are expected to make a two year commitment and participate in payroll deduction campaign activities.
Committed to the concept of "donor directed" contributions, all designated contributions will be given to the organization selected by the donor minus a 15% administrative fee. All contributions that are not designated to a specific member are divided among full member organizations on a sweat equity formula.
