The TUKOLE Donation Guide
Every organization needs money to stay afloat. Tukole is no exception to this rule. We use a methodical and institutionalized approach to building a reliable revenue base that will support our core programs and services. We assess our donors through value alignment as today’s donors demand transparency and being incredibly careful about whom you choose to partner with. This is done to safeguard the Tukole reputation later down the line.
Our “funding model” combines different funding sources into a constellation unique to Tukole. Since 2018, we have been funded 50% through grants, 30% through events, 15% through a membership program, and 5% through in-kind donations. After the 2020 pandemic slowdown, we wish to increase funding to 70% through a major donor program, 20% through direct mail fundraising, and 10% through events.
Steps we take to be transparent with our funding.
We only take in what is needed.
We do not believe in reactive fundraising. Nothing is a substitute for thoughtful planning. We take some time to think about the funding model and the total cost of a project before embarking on the fundraising drive. That way, we always collect the funds needed before hand for better accountability.
We are selective with our donors.
Realistically we cannot assess all the funding and its sources, so we developed an internal metric that helps us choose who our donors are. Are they all aligned to your mission, vision, and values? Do they all deliver a good return on investment? Is there space for investigating other funding sources? These queries are done on an annual basis before our funding drives to stay current.
We are always learning.
We constantly organize brainstorming sessions with the team and get creative, think outside of the box, and look at what other similar organizations are doing and see if there is something that could work for us in terms of security, privacy, and transparency.
Our main sources of funding
Individual donors can make one-time or recurring donations. They also give in a variety of ways: online and offline, through events, auctions, planned to give, and more. When it comes to individual donations, we cover all your bases, since individual gifts make up such a big part of our funding. For the most part, this is a very effective funding source for Tukole especially in times of projects with large marketing budgets and when working with causes that have a wide appeal.
Tukole applies for grants from the government at local, state, and federal levels as well as
private and public foundations. Generally, we are not required to repay any money awarded to us through a grant since our operations are charitable or serve a nonprofit purpose. Often, these grants are restricted to certain sectors, locations, or type of programming. For this reason, Tukole must search for grants appropriate for their organization and apply for consideration.
Corporate sponsorships are an excellent source of funding for Tukole as corporations are usually keen to partner on projects to improve their philanthropic image or to work on becoming a more socially responsible organization. Corporate social responsibility (CSR) is more important than ever as consumers have become more likely to buy from socially responsible companies. Different corporations will have different giving programs – some of which have worked for the initiatives that Tukole has to work on. There is some reluctance around partnering with corporation to avoid undue pressure for profit or capitalistic tendencies but, there are many socially responsible corporations out there and Tukole only accepts donations from those aligned with your nonprofit’s mission and values, this can be a valuable funding source.
The Tukole Corporate support comes in many forms:
Philanthropic – no-strings-attached donation, like individual giving.
Event sponsorship – episodic or short-term support, typically event-based
Cause marketing – longer-term thematic engagement
Pro bono – corporate professionals offering their expertise/services.
Matching gifts – when corporations match donations made by their employees.
In-kind gifts – when companies give product donations rather than cash contributions.
Check-out campaigns – consumers give at the cash register when checking out.
Selling Goods and Services
Another funding source Tukole utilizes is the selling of goods and/or services. This funding source is subject to many regulations by the IRS and Tukole benefits from fees and sales of products, although this type of revenue is relied on a much lesser extent. These items typically include t-shirts, tote bags, mugs, cookies, and other items.
Where we are spending the money
1. Staffing
As a nonprofit, our team needs to be lean and work efficiently. One way of doing so, especially on a global scale, is entrusting and empowering remote workers. We invest time in finding the right person with a strong sense of self-accountability and a drive to be able to take a broad goal and find a way to get results. Short-term contracts or initial project work is a good way to help weed out candidates before you make a full-time hire. Ongoing and consistent communication, including video conferences and regular reporting, are also important time investments to ensure productivity.
2. Measurement
Metrics for each program are set up for us to regularly report on targets and goals. If a program is not making an impact, it is tweaked or eliminated. We use various formats for our reporting and measurement which is not only important for monitoring a program's efficacy, but it also becomes a vital tool for donor engagement.
3. Communication and Marketing
Communication is your key to attaining and keeping donors, which is why we believe it is a tool worth investing in. Once you have results from your measurement, you must share them with donors and potential donors. If they can see what kind of impact their money is making, they will stay engaged and keep donating. The challenge here is presenting results plainly so that anyone can understand. While numbers and metrics are concrete proof of work, it is personal stories that better illustrate impact and engage donors on a deeper level.
4. Donor Records
The donor is always right so we strongly invest in a data management system which helps us manage our best donors, donors that are likely to invest more, and those who have stopped giving and why (and when). This is important information so we can tailor programs, appeals and communications to these donor segments.
5. Finance
We anticipate our operations growing in scale and thus, the more complex our financial systems will become. With projects across the globe, we work with different currencies, different banks, and different grant structures. Therefore, it is important we have strong procurement management and financial management. Our goal is to always know how much money they have spent and have left in their budget so they can spend the money responsibly.
