Chapter 3: Fundraising

Fundraising Strategy
Like almost all of the other stages of skatepark creation, most advocates enter fundraising with a host of preconceptions. Even before any idea about how to handle the money received or how to spend it is entertained, inexperienced advocates may start thinking about raffles and car washes and benefit skate jams. While enthusiasm is a priceless commodity, it helps to first establish a framework in which to organize these different fund-raising concepts.

A great place to start your fundraising campaign is with the Parks Department. They are in the business of building parks, and nobody knows as much about how parks are created as they do. It’s completely appropriate to arrange a meeting with a Parks planner to discuss the best ways to raise money for the skatepark. By working together with Parks from the beginning, a rapport is established that should allow all the biggest questions to be answered. Let’s say, for example, the proposed skatepark will cost $800,000 (this assumes 20,000 square feet at a typical $40 per square foot price).

1. Of the $800,000, how much will the Parks Department or city contribute? How much will the skatepark committee be expected to come up with?
2. What happens if the skatepark committee fails to meet its goals?
3. When will fundraising begin and when will
   it end?
4. Who will manage the money? Are donations tax-deductible? (Is the receiving entity a registered non-profit organization?)

There are other important questions to ask after these first four points are established.

1. Will the organization responsible for managing donations make any money available for future fundraising efforts? Or will every penny put into that fund go directly to the skatepark?

This is commonly known as a “no-money-out” policy that essentially dictates that any donation received is applied to the skatepark. Money used for fundraising, like printing shirts, making stickers, hosting shows, and so forth, is paid for with outside donations. No-money-out means a lot to some potential donors, so it’s a good idea to commit to this practice.

2. Will the organization responsible for managing donations deduct any handling fees or service charges?

It is common to have fees deducted from the funds to pay for bookkeeping overhead. These service fees usually hover in the neighborhood of 2–4% per year. When you consider that the total might exceed $100,000, having $4,000 removed for bookkeeping services seems a bit excessive. Always look for local professionals, whether they’re bookkeepers or attorneys, who are willing to work for your group pro bono (a.k.a. free). Parents of skaters often do work that the skatepark group needs help with. Otherwise, seek as many different organizations as possible to find the best deal.

 3. If the park fails to materialize, will the money be returned to the donors?

This is important, especially if the Parks Department is managing the funds. If the park effort fails, and plenty of them do, Parks Departments have been known to reallocate those funds to other under-funded projects. Not only does this severely cripple the current effort but it can also spoil the community’s support for future skatepark efforts in the area. In some cases, skatepark projects were still underway when the grassroots funds were appropriated by other projects.