Fundraising

Many foundations manage large fortunes and fund targeted projects within the scope of their purpose. The foundation directory shows which foundations are suitable for which funding purposes. There are cantonal directories and a federal foundation directory.

Most foundations or government agencies have deadlines for funding applications or applications for subsidies. It is worth noting down these deadlines in the annual planning and to start early with the compilation of the necessary documents: Depending on the requirements of the sponsors, the funding application should be accompanied by documents such as the articles of association, the mission statement, concepts, project descriptions, budgets, financing plans, etc. Usually, the required information is indicated on the website of the respective organisation.

The Lottery Fund is a fund from which the governments of the Swiss cantons appropriate money to support cultural, sporting or charitable organisations. Applications must be addressed to the lottery funds of the individual cantons.

The Migros Culture Percentage is a voluntary initiative by Migros, incorporated in its articles of association that demonstrates the company’s responsibility towards society. Migros is committed to providing a wide access to culture and education for the general public, allowing the company to interact with society and empowering people to participate in social, economic and cultural changes. Key elements of this commitment are culture, society, education, leisure and economy.

Crowdfunding refers to a form of fundraising. Via an online platform and social media, rather small amounts of money (funds) are raised from many individual persons (the crowd). In return, the donors receive “goodies”, i.e. a small reward in the form of a product, an experience or a service. Crowdfunding can help finance a well-defined individual project (e.g. an anniversary event, material procurement, infrastructure project or youth development).

Question

We are looking for "sponsors" to offer financial support to low-income families so that they can send their child to a playgroup. The monthly parent contribution is often a hurdle. Would this be suitable for a crowdfunding project?

Answer

For a crowdfunding project, it is important that it is presented as a specific and clearly distinguishable project, for example the project "Playgroup attendance for ten families". In this case, you are not looking for individual sponsors. With crowdfunding, many individuals tend to make small contributions in order to collectively allow these ten families to send their children to the playgroup. In return, the donors receives "goodies", i.e. a small token of appreciation in the form of a product, experience or service.

Crowdfunding platforms provide support, tips and tools for the development and assistance of a crowdfunding campaign It is important, however, that both personnel and time resources are planned for the campaign. Ideally, you should seek somebody within the association who feels at home in the area of social media and would enjoy launching such a campaign.

Donations are voluntary contributions from individuals or organisations in the form of money or other resources. They help to ensure that associations can achieve their goals. Many associations depend on donations.

Fundraising campaigns are being conducted to obtain funds. In this context, associations address potential donors directly or reach out to an extensive group of potential donors and provide them with selected information. Special events and projects are also suitable for such campaigns.

Legacies are bequests, i.e. donations made by donors to the association for the time of their death in a last will (testament). These can take the form of real estate, valuables or sums of money. If the association is not exempt from taxes, inheritance or gift taxes will be charged.

Associations that are mentioned in obituaries for donations in memory of the deceased should inform the bereaved family about the amounts received and express their gratitude to the donors.

If you want to know which relief organisations are active in which field, you will find a collection of portraits in the Schweizer Spenden Spiegel. The guideline is available as a book, on CD or on the corresponding website.

Persons or organisations for which the association’s purpose is very important can become sponsors by contributing more than the regular membership fees or by donating money on a regular basis.

The ZEWO Foundation awards a quality seal of approval for non-profit organisations, which gives them greater credibility with donors. Recognition by the ZEWO Foundation requires complying with exacting standards in a paid procedure and having the assessment repeated periodically.

Question

We are seeking a voluntary fundraiser for an adventure playground and want to advertise accordingly. We will place an advert in the local press and will publicise the position with the parents' association, parents' forum and the district association. Do you have any other ideas as to where it would be suitable to look for a suitable individual?

Answer

I doubt that you will find who you are looking for like this. In your case, I would task a committee member with taking on responsibility for the focus area of fundraising and also not delegate fundraising to just one person. For example, an interesting option might be a temporary working group made up of members in which different ideas on the topic of fundraising are sought, exchanged and subsequently implemented.

Fundraising is an important and demanding task for many associations, closely connected with public relations. Some associations have a separate function within the committee that is responsible for fundraising, while many larger associations delegate fundraising to external professionals. It is important to develop appropriate fundraising procedures for each association and to adapt them to the target audience, e.g. appeals for donations, collections, fundraising events, sponsorships, agreements with individuals who make regular financial contributions, requests to foundations and individuals and others.

Many associations issue their own journal, or nowadays regular electronic newsletters, to keep their members up to date and to reach other persons who might be interested in the association’s activities. A well-made journal or an interesting newsletter can also be used for fundraising purposes.

What used to be called connections (or in Switzerland “vitamin B”: “B” stands for “Beziehungen”, the German word for connections) is called networking today. Maintaining relationships with different people and making useful contacts is an important part of belonging to an association. Personal relationships help to make the association known to more people and to recruit new members, and they also serve fundraising purposes. vitamin B provides opportunities for networking among committee members from different associations.

Raffles as well as lottery events are popular means to raise funds for an association. However, a permit from the municipality or the canton is required for holding a raffle. Collecting raffle prizes provides an opportunity to do some PR work for the association.

The service agreement regulates the relations between the public sector (municipality, canton, federal government) and an institution in a contract. It defines the mission, tasks and services provided by the institution/organisation and sets out the mutual obligations, the control mechanisms and financial contributions of the public sector.

Subsidies are grants from the public sector. Many associations can only fulfil their tasks because they receive funding from federal, cantonal or local authorities. In recent years, grants from the public sector have been made subject to a performance mandate.

Question

As an association, are we subject to value-added tax? While we do not generate any actual turnover and member fees are not subject to value-added tax, we do receive sponsorship funds.

Answer

It is important that the committee enquires about value-added tax, as a self-declaration requirement applies here. Generally speaking, sponsorship revenues are subject to value-added tax, provided this is genuine sponsorship. Simply naming donors in an annual report, for example, does not belong to this. Sponsors are organisations or individuals that usually support the association with larger amounts and receive something in return: space for logos, advertisements, appearance opportunities, advertising space, etc.

The good news: value-added tax is only payable for non-profit, volunteer-run associations from an amount of CHF 250,000 rather than CHF 100,000 as is the case for all others.

Sponsors are persons or organisations that support certain projects or events with larger contributions and receive a reward in return: brand mentions, space for logos, performance opportunities, advertising space, etc. Sponsoring is a marketing measure and therefore constitutes a kind of business (as opposed to patronage). The details of the mutual commitment are recorded in a contract. The promotion of sponsor relations is important for the association.