Charity Youth Hockey Tournament (The Charity Industry)
The Charity Industry
Total contributions to charities in 1994 totaled $129.9 billion. This was up 3.6 percent from 1993. Contributions had been consistently headed downward until that time. Corporate donations, adjusted for inflation, declined by $1 billion from 1989 to 1994, or roughly 0.13 percent annually, says the American Association of Fund Raising Counsel, a New York trade group. The recent increase is due in large part to the stabilization of the economy that has occurred. Coupled with this increase in charitable giving has come an increased competition for charity dollars. Internal Revenue Service figures show that from 1975 to 1990, the nonprofit sector grew from 6 percent of the gross domestic product to 10 percent, while revenues climbed 227 percent—more than four times as fast as the rest of the economy. In addition, corporate donations programs are no longer viewed as just giving cash, but are now considered a vital aspect of a firm's marketing plan. The industry has been characterized by these two major changes.
Corporate downsizing has caused companies to rethink their donation programs and concentrate on those activities that will give them the greatest return. Adjusted for inflation, total corporate giving dipped 2 percent in 1994, to $6.1 billion, says the American Association of Fund Raising Counsel Trust for Philanthropy. That's part of a slide under way since 1987 that has resulted from factors ranging from the 1986 tax reform to greater cost-consciousness. Social responsibility was done previously to make a company's directors feel good. Today, it must make that company look good as well. A new Conference Board report calls this new approach "strategic philanthropy" or "financially sound goodwill." The study surveyed 463U.S. companies and found that companies taking a more businesslike approach to charity reported a better image, increased employee loyalty, and improved customer ties. Causemarketing advocates say such campaigns can meet traditional marketing goals, such as boosting market share, pumping up the sales force, or improving a weak public image, while helping causes the customer cares about. A 1993 survey by Roper Starch Worldwide, sponsored by cause-marketing specialist Cone Communications in Boston, found that 66 percent of 1,981 consumers polled claimed they were likely to switch brands if the purchase supported a cause of concern to them. The effects of strategic gift-giving cannot be ignored. A charity must provide a comprehensive benefits package to attract corporate funds. Corporate social responsibility attracts the most media attention, but corporate donations make up a very small percentage (4.7 percent in 1993) of total giving. This compares to 81.8 percent for private donations and 13.4 percent for government and foundations.
Charity Competition
An increase in the number of charities has led to an increase in the competition for charitable donations. Nearly 60 percent of all nonprofits nationwide have been founded since 1970, and their proliferation has intensified competition for both private donations and dwindling government funds. The private philanthropist is by far the largest giver of charitable funds. In 1993, the corporate world gave a total of $5.92 billion. This pales in comparison to private donations that totaled $102.55 billion that same year. Yet, the fallout in the corporate sector has carried over into personal giving. Today, charities have begun to offer benefits in addition to a feeling of goodwill. A charity has to distinguish itself in order to attract funds.
Lucky Pucks must compete for funds with many charities. They include the Salvation Army, United Way, the March of Dimes, and the Variety Club, to name a few. These competitors are better capitalized, better known, and better supported by the community. Yet, these charities do not address spinal cord injuries or its research. A challenge to Lucky Pucks is the idea that individual oriented spinal cord injury fundraisers present. The challenge is to convince donors that the money does not go to an individual, but to the research cause. The reason the misinterpretation occurs is simple: many people have been asked for money to help defray the medical costs of an individual. Lucky Pucks is the first organization in Cleveland to concentrate on the welfare and recovery of all spinal cord patients through progressive research projects.
Spinal cord injuries require surgery, critical care, and long rehabilitation. Even with insurance, the costs to a family are staggering. In an effort to help defray these costs, many families rely on one-time fundraisers in order to make ends meet. In the area of spinal cord research, there is little fundraising. Most people do not get involved until someone they know is affected. In addition, a spinal cord patient is not likely to become an active member of the community until they have gone through a mourning period. Through personal experience it is normally one year, with additional advances made in the third and fourth years. Some never recover emotionally.
The major challenge to fundraising for research is a lack of understanding and a lack of a strong presence among the injured themselves. In the past, a spinal-cord-injured person had no hope for a recovery. Medical science considered the condition irreversible. This pessimistic outlook is finally changing. People are now realizing that we can eliminate this affliction. But fundraising efforts can be hampered by the injured themselves. An injured person does not return to being the same person they were before the accident. Everything is more difficult. They prefer instead to remain in their homes where things are more accessible. A person will not venture out because of two reasons. First, it is hard to come to terms that the individual needs much more help than they used to. Second, the physical structure of a community is not accessible. Although the Americans with Disabilities Act is meant to eliminate these obstacles, many barriers still exist. To effect change, the disabled must take it upon themselves to establish an identifiable presence in the community.
The lessons of the Americans with Disabilities Act will not last if the changes they have made are not utilized. The cause of AIDS research was helped immensely by the associations that it had. Many high-profile people were victims of AIDS. Even though many of us do not know anyone with AIDS, we are familiar with famous people that have been afflicted. Spinal cord injuries have not affected a large number of well-known people. Recent injuries to the actor Christopher Reeve, football stars Mike Utley and Dennis Byrd, and hockey player Travis Roy have brought spinal cord injuries to the forefront. These four men bring home the devastating effects a spinal cord injury can have. Each one was considered to be in tremendous physical shape. Each one was considered to be in the prime of his life. Each one was injured competing in a sport they loved.
Lucky Pucks is in direct competition with many larger more established charities. We do not have the resources to compete with these organizations on a large scale. Instead, we have established a niche in which to operate. We have the opportunity to establish ourselves as the premier organization to raise funds for spinal cord injuries. Many fundraising activities are done locally with little impact beyond the community. A strong national drive can link each community effort and make a difference in the lives of many. Lucky Pucks faces competition from other smaller charities, such as golf tournaments, church bazaars, etc. Each charity tries to attract funds by associating a reward with the donation, i.e. a round of golf or crafts. Lucky Pucks offers a donor the opportunity to view quality hockey in Cleveland's premier facility, the Sparling Center. The price for tickets to a professional hockey game at the Kiel ranges from $35 to $55.
As a charity, Lucky Pucks brings together high school hockey teams in a forum that did not exist before. For $10 at the Sparling Center or $3 at local venues, people are able to see their favorite team play and evaluate the competition that they will face in the upcoming season. Before the tournament, a fan would have to travel to rinks throughout the city in order to evaluate his team's chances, each time at a cost of three dollars per game and at facilities with vastly different levels of comfort and cleanliness. The event at the Sparling Center will allow a hockey fan to enjoy seven games throughout the day at a cost of $10 for adults and $5 for students. The games prior to the finals will be held at the Johnson Recreation Complex and at the North County Recreation Complex. Each game at these facilities will be at a cost of $3 for admission.
Charitable Operations
Lucky Pucks controls expenses in order to provide the maximum funding possible for research. Eighty percent of revenue exceeding expenses are distributed to St. John's Mercy Hospital and the Spinal Cord Society. In the first three years of operation, high levels of expenses will limit Lucky Pucks. This is due to the initial costs of start-up. Each of the first three years involves substantial expansion. This results in high travel and promotion and travel expense, high phone expense, and high postage cost. In the third year, Lucky Pucks will hold an additional tournament in late February in Cleveland. This will involve eight cities. Lucky Pucks will assist each city in implementing a local "franchise." Each city will be independently operated. To maintain the integrity of the tournament and its goals, representatives of the local Spinal Cord Society chapter will closely monitor each new host city. Each chapter is well established in their area. Lucky Pucks will utilize this strong infrastructure to reach the local spinal cord community and local businesses. The quality of the tournament will be maintained by a strict set of guidelines established by Lucky Pucks and the Cleveland chapter of the Spinal Cord Society. The revenue over expenses that they earn will be divided among a local rehabilitation facility and the Spinal Cord Society home office in Michigan. The additional revenue for the Cleveland chapter of Lucky Pucks will come from hosting the eight-city tournament.
Because the hockey season is not year-round, there is a lull period when there is little exposure for the tournament. Most of our revenue comes in only a few months of each year. Lucky Pucks is implementing an education program to teach the public about disabilities. The effect is twofold. There is a greater understanding of how disabilities affect our lives and Lucky Pucks remains a visible presence year round. This program is provided at no cost to interested groups. There are a variety of speakers available to organizations. The organization can choose the speaker that would be most suitable for its needs.
In order to reduce costs, Lucky Pucks does not maintain central offices. All general meetings are held at Monroe Ice Rink. The director of sales for Lucky Pucks is the facility manager at the rink. All meeting rooms are provided at no cost. Lucky Pucks does maintain a separate mailing address. This is a post office box. Meetings of the board are normally held at a member's household. Lucky Pucks does not intend to have any paid staff positions at this time.
