Occasionally I hear from people who would like to fundraise to help an adult or child who has financial needs because of cancer, organ transplant or other medical situation.

Perhaps a hospitalization or treatment is needed for a serious illness. Even with health insurance, facing the financial responsibility of paying for medical treatment can become overwhelming.

Here are five guidelines to follow when raising funds for individuals:

1. Research all of your options

When a family is facing a financial hardship due to a serious medical situation, it is important to do some research before jumping into a fundraising effort. After exhausting health insurance options find out about other organizations that may be able to help:

  • Social Services - Speak to social services at the hospital who may be aware of financial resources, foundations and sources of financial help.
  • Family Stay - Find out if there is a Ronald McDonald house or other family stay facility near the hospital which have free or low cost accommodations.
  • Government Agencies & NPOs- Contact local charities and food banks that may offer “stop gap” assistance.

2. Be aware of legal issues

Donations that are given to an individual and not a registered charity are not tax deductible. It is best to let people know upfront that their donation is going to an individual and therefore there is no tax benefit for them.

Friends, family, co-workers and extended acquaintances may be willing to give out of pocket just because they care about the person and not be as concerned about tax benefits. People who are not acquainted with the individuals involved may be more likely to be reluctant to donate to someone who is not a registered non profit organization.

If possible, partner with a non profit organization such as the Transplant Fund that can receive designated funds for the individual. Then donations can be designated as tax deductible by those who make donations.

3. Understand what motivates donors

Many people will want to make sure that all of their donation goes directly to help the person in need. Donation request letters are especially good for this reason, as there are very little expenses unlike events and product sales.

Also realize that fundraising may not be appropriate in every situation. Medical expenses must be quite extensive to warrant fundraising. For example, asking for help when a child gets a cast for a broken arm will not likely motivate people to donate because the need is not as great.

4. Appeal to Individuals Not Businesses

Fundraising events such spaghetti dinners can also be a good way to raise money. As with all fundraising events it is important to get just about every thing donated, and even more so when fundraising for individuals - food, location, decorations, and prizes. Survey your extended circle of contacts and ask them to donate supplies and prizes.

When seeking donations for an event appeal to individuals rather than directly to businesses. Corporations are usually concerned with making sure their donation is going to an organization that has government oversight, as well as a group that has the tax deductible donation benefits.

Your circle of friends may be able to get donations from their place of business since they have influence with their employers that outsiders do not have.

5. Make it easy for people to donate

Finally, make it as easy for people to donate. Offer as many ways as possible for people to help the family that is in need of money for their medical expenses. Explain how donations can be made and include contact information on all materials.

  • Set up a separate bank account just for donations and discuss with the bank the option of donations being made at the bank lobby location
  • In letter appeals give the name, address of the bank in case people want to make donations directly at the bank
  • In letter requests include a pre-addressed envelope and a reply card for those who would like to donate by mail
  • Fundraising events offer multiple opportunities for people to donate anonymously such as donation boxes, raffles, and opportunities to “round up” ticket purchases.

Example:

Your Support is Greatly Appreciated!

Three Ways to Help:

1. Make a deposit to the bank account set up especially to help defray medical costs. Go to National Bank, 1500 Travis Street, Anytown USA and let them know that you would like to make a deposit to the account of Jane Smith.

2. Mail your donation with check made out to Jane Smith to 7859 Oak Strett, Anytown USA

3. Attend our spaghetti dinner event on January 24, 2006. Tickets are $7 for adults and $3 for children 12 and under. Besides the dinner there will also be raffles, games and other fun activities for the whole family. If you have any questions about the fundraising efforts to help Jane Smith, please contact her friend Sally Johnson at 210-555-1234.

Conclusion

When raising funds for individuals keep these five factors in mind. Exhaust all usual financial aid services before going the fundraising route. Be mindful of legal and financial implications of fundraising, and plan fundraising activities have the lowest cost and most impact so that funds raised can go directly to those persons in need.

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