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.
WHY 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 Way raised $3.11 billion with more than $2 billion from payroll deductions. In 1980, alternative funds raised 3.5% of what the United Way 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.