It seems like all restoration projects turn to the public and corporate sectors for some amounts of underwriting. Other than giving for the joy of "doing well by doing good", what kinds of benefits do donors typically receive? Railfans might donate to get a baseball cap or tee-shirt in return, but how does one draw in corporate sponsors or philanthropic donors? What works to sponsor big ticket projects, other than grant writing?

You have to be careful with incentives such as hats and coffee cups because the donor receives something of value and that value has to be subtracted from the tax deductible portion of his/her donation and the acknowledgement of the donation has to include that information.

Bob H

I am working on this very project for my current employer, a local theatre company. We are looking at non- tangible incentives like advance ticket sales, preferred seating, and free parking, etc. We have two cartons of logo beach towels and shirts, and a box of logo pins that have gone nowhere.

As a donor, I am not interested in things like hats, mugs, and tote bags. Just take my money and put it to work.

Wesley

Yes, I understand the idea of having to purchase what you give away as a loss. How about corporate sponsors? Do businesses get anything other than a tax deduction? How does a group sort out donation levels for corporations or businesses?

Most of the larger, more sophisticated entities like art museums and symphonies "memorialize" donors with lists of sponsorships, thank you signage in public areas, and generally letting the audience visiting the facility or event know who helped provide it. Intangible but could create goodwill among those who care.

dave

It might sound tacky but I think them being able to touch and feel what their money is going towards give them more of an incentive than any tangible object you can order out of the catalog. I've seen people who donate to the local PBS channel THROW OUT the books and DVDs because they just want to see PBS succeed after all these years of growing up with shows. People like things that they can directly see their money helping, IE some new programs on PBS for example.

If a business makes a donation of funds, they can claim that on their taxes and get at least some of it back can't they?

Others with more expertise can chime in here - but the "tax deduction" incentive for business is a bit of a myth. Many businesses budget their routine charitable contributions like any other expense. Yes there is a tax incentive, but it is like any other deduction and not a dollar for dollar return.

Wesley

The "incentive" that most donors understand and appreciate is the on-time and on-budget completion of a project that was properly cost estimated, planned, and managed. Seeing that their donations have been put to good use is far more valuable than any other type of incentive.

PC

I think most on here are undermining the value of recognition.

Recalling the very popular TV show "Seinfeld", there was an episode where "George"
leaves a tip at a pizza parlor but the store owner turns away suddenly and misses the
opportunity to witness George's charity. He then attempts to take the tip back so
that he can make another attempt to donate with the recognition he desired. The
episode is hilarious, as are many themes of that show, as we can almost always identify
with the the premise. If that were not the case, the show would not be funny.

There are many ways to accomplish this reward/ recognition such as plaques on walls, bricks and even miniature engraved plaques on seats, lol - even flues. And of course,
via tokens such as coins, Tee's and other various promotional items - items that can be had ONLY via a charitable donation (ie, they can not simply be purchased at what would
otherwise be a reasonable price).

Look no further then the Nevada Northern Railway - probably the finest example of a tourist line's ability to market itself and go fervently after donations.

http://nevadanorthernrailway.net/Member ... ership.htm


Outside of recognition, there's also a theme where donations are suggested at amounts likely higher then one might normally donate. Example - Steam Railroading Institute's oft cited requests for donations not at rounded off numbers (like $1,000) but instead incorporating the number of it's steam engine: PM #1225:

"The Steam Railroading Institute recently announced its Capital Campaign to insure the future of SRI and the return to steam of Pere Marquette #1225. A multi-year project, it is designed to insure the sustainability of the organization in its mission for years to come. The first phase of this project, known as the “1225 Club,” allows donors and supporters of the #1225 to make on time pledges of $1225 to support the match for our surface transportation grant, which may be pledged over two or three years. Pledges made be made through our paypal link below. For further information, please email us at tjgaffney@mstrp.com."


The Oregon Rail Heritage Foundation (http://www.orhf.org/capital-campaign/donate-to-orhf/) is another foundation that is very successful at raising large amounts of charitable donations:

Thank You Gift Choices
http://www.orhf.org/capital-campaign/donate-to-orhf/

Engineer $700.00 All Aboard Jacket
Fireman $444.90 All Aboard Polo Shirt
Conductor $197.00 All Aboard T-Shirt
Switchman $ 70.00 All Aboard Hat
Brakeman $ 44.49 All Aboard Mug

How about "naming" opportunities?

http://www.orhf.org/capital-campaign/naming-opps/#1



On the other hand, many organizations may just in fact suggest a rounded off number - membership might be $45, why not round it off at "an even" $50, they might suggest.

And then of course, there is recognition via flyers, magazine advertisements, and even online mention. Take for instance what the FWRHS did with their last flyer listing 2012 donors in their mailer, or what the Railroad Museum of Long Island posted on FaceBook just a few days ago:

We are happy to recognize our donors alphabetically and thank each and every one of them for their support of the #39 Restoration Project.

LIRR/PRR Engine #39 Wall of Honor Donors

Clyde Barton, PA
Thomas Brendel, PA
Michael Bruckart, PA
James & Florence Cope, NY
Alan Daters, NY
Daniel & Kathleen Delprato, NJ
Michael Finfer, MD, NJ
Dave Fisher, NY
Robert Friedman, NY
Dennis Harrington, NY
Steve Holst, FL
John Hooper, Washington DC
William Howell, NJ
Michael C. Huhn, PA
Joseph J. Huttle, NY
Steven Kalka, NY
Doug Kisala, FL
Long Island Antique Power Assoc., NY
Joel & Lynn Long, PA
Philip Marshal, NY
James F. McPhillips, PA
Robert Miller, NY
Dave Morrison, NY
Lance Myers, PA
Long Island Sunrise Trail Chapter – NRHS, NY
Edward & Joyce Pfeiffer, PA
Stephen Piwowarski, VT
National - PRRT&HS, PA
Philadelphia Chapter - PRRT&HS, NJ
2013 Convention Committee - PRRT&HS, NJ
Joel Romaine, PA
Barbara Romig, PA
Lyle & Susan Schrecongost, NY
Richard Staskowski, PA
Michael Sullivan, TX
Peter C. Weiglin, OH
Steve Wolbert, NY
William S. Zebroski Jr., NY

Anyone else thinking... "Why am I not on this list?"



Recognition, though often not a requirement, still seems to be a highly valued commodity - how many railroad events have you been to where sponsorship is impossible to miss? Large CSX banners, TRAINS magazine banners, ect:

http://www.nprailfest.com/

Note the UP, Walmart and "Do It Center" logos, similar to those seen previously on flyers and on the Internet in regards to past events. Note - if you don't see UP, simply refresh - it's a rotating list of sponsors.


Best of luck to all and hope some of the examples are found to be helpful!

/Mitch

You're on the right track that you have to be careful, in fact you've made your point by botching your examples. IRS goes into great detail about what they consider "of value" (and must be deducted) vs. what can be ignored ("insubstantial"). Take the apocryphal PBS tote bag and all the hand-wringing about whether it dings your tax deduction: IRS just cleaved that Gordian knot by saying that any sort of charity-logo schwag like that is insubstantial. So your hats and coffee cups are in the clear, and the giver may safely ignore it when computing his tax deduction.

The rules are fairly complex. Support a railway museum and your free train ride tickets are insubstantial. But IRS cut out a special exception that athletic-event tickets are substantial - sorry, college football fans!

Newsletters: Oh boy. The misunderstandings abound. Generally, all our newsletters are insubstantial. To be substantial in the IRS's eyes, you have to look, walk, and quack like a commercial magazine: you are largely supported by advertising; you have paid editorial staff; or commercial magazine racks who aren't your friends stock your magazine because it is profitable to do so. Obviously IRS is struggling to distinguish "Rail and Wire" from "First and Fastest". Of course everybody thinks their newsletter is "First and Fastest" :)

I know all about this, because I generally pay for my railway museum memberships with my Donor Advised Fund, which is OK so long as membership does not include a "substantial" benefit, and the DAF calls the museum and asks. Donor Advised Funds are awesome, I recommend them highly, and I am seriously careful with my money.

And then, of course, you could run a raffle:

RailGiants Train Museum Athearn Big Boy raffle:
http://railgiants.org/raffle.htm

Anyone listening? Imagine the incremental potential for
funds if done on routine.

/Mitch

My local PBS stations and some other organizations offer the donor to accept or decline the "premium" and be able to deduct the full value of the donation. Sometimes I will go one way and sometimes the other way.

I suppose what someone will do varies from person to person. How big is the gift, are they itemizing their deductions for income tax purposes, do they want the premium for its own value.