7#S*YR*X X X X X X.XXXX X XXXxXYR YrY*YX YYYYY+YYYYYYGiving til it hurts Fund-raisers hit up the well-heeled for donations to a vast array of causes htk/dektk by Joe Sullivan If I tried to attend all the fund-raising events in town, aside from going broke, Id have to be treated for exhaustion, says Jane Creed, a community volunteer whos renowned for her prowess in staging events that gently but effectively squeeze up cash for causes. Just this week, the Knoxville YWCAs Tribute to Women dinner Thursday evening will fill the Hyatt Regencys banquet hall to its 700-seat capacity at $55 per diner. On Saturday, about 400 are expected to shell out $75 or more apiece for an Old Time Rock-N-Roll" soiree at the Hollywood Ballroom in the Old City to benefit the East Tennessee Foundation. Come next week is the Holiday Shops preview at the Candy Factory on Friday evening, the proceeds of which will be shared by a dozen worthy causes. Then, on Saturday, its back to the Hollywood Ballroom in black tie and sneakers for a $100-per-plate Salute to Excellence directed at the UT Womens Athletic Department. Indeed, scarcely a week goes by when at least a couple of Knoxvilles estimated 200 not-for-profit organizations (exclusive of churches) arent holding fund-raising events of one sort or another. Besides all the dinners with the dancing, entertainment, tributes or speeches, the community sports more than 100 benefit golf tournaments, plus numerous walks, runs, auctions, fashion shows, sales and telethons. The East Tennessee Childrens Hospital is planning a dance marathon. And for those whose legs wont carry them, the Boys and Girls Club of Greater Knoxville stages its annual rubber duck race. Such special events are actually just a small part of the total effort to raise enough money locally to support everything from our elite arts organizations to missions for the homeless. Culture, education, health care, preservation of our environment and heritage, and the nurturing of our dysfunctional and our youth all depend to some extent on private contributions, and all compete to some extent for the philanthropic dollar. While there is no compilation of total donations, the best estimate of professionals in the field is that around $50 million is contributed each year to local organizations that strive to meet this diverse array of community needs. Again, thats exclusive of religionand also politics. Drawing on national statistics as a guide, churches receive almost as much as all other types of charitable giving combined. That brings the local total to nearly $100 million, but even that isnt the whole story. It doesnt include contributions to one-time capital campaigns, such as the $4 million Ijams Nature Center is raising for expansion or Baptist Hospital Systems $3 million drive on behalf of its recently-christened Clayton Birthing Center. Nor does it count contributions in kind, including at least $5 million worth of time and space donated by local media for promotion of fund-raising events. All told, private donations to local organizations probably exceed the $94 million in property, sales and other local tax revenues collected by the city of Knoxville in its most recent fiscal year. But a comparison with city government doesnt provide a basis for assessing the communitys generosity. Both absolutely, and in comparison to other cities, how does Knoxville stack up philanthropically? Who does the money come from, where does it go and how does it get raised? And, bottom line, how well are we doing in meeting all the needs to which donations are directed? BUILD A BIGGER BASE Our needs overwhelm our means, says Natalie Haslam, who many consider to be Knoxvilles second best fund-raisersecond only to her husband, Pilot Corp.s chairman, James Haslam II. He puts our shortfall in this perspective: Relative to our capacity, were doing pretty well. But we just dont have the base of businesses in Knoxville that are creating wealth on anything like the scale of a Nashville or a Charlotte, and we dont have anything like the inherited wealth of a Chattanooga. We simply have to broaden our business base in order to catch up. One field in which Knoxville ranks ahead of the pack is gifts (or at least receipts) for education. The University of Tennessee, Knoxville dwarfs all other local recipients of private contributions with an annual base of around $20 million, of which $6 million goes to the athletic department. Even that sum pales in comparison with the $250 million goal set for UTs 21st Century Campaign over a four-year period that commenced last fall. But funds are flowing into UT from alumni throughout the country, and organizations dependent on donations here at home dont all fare so well. The United Way of Greater Knoxville is the communitys next largest fund-raiser, with a 1995 campaign goal of $6.9 million. Several hundred volunteers work very hard for several months to raise that money, which goes to United Ways 48 member agencies. While hes proud of that accomplishment, United Ways president, Ben Landers, acknowledges that Knoxville doesnt compare favorably to the other major cities in Tennessee (though its near the national average on a per capita basis). In Chattanooga, for example, United Way raises over $10 million from a smaller population. Landers attributes the difference primarily to Chattanoogas greater individual wealth and larger base of entrepreneurial companies. While the depth of a communitys pockets is hard to measure, one indicator is the size and giving power of foundations established by its wealthiest citizens. According to the Guide to U.S. Foundations, in 1993, the most recent year for which data are available, Chattanooga had 25 such foundations with assets exceeding $1 million whose donations that year totaled more than $35 million. Knoxville had 10, and their donations came to less than $5 million. The largest in Knoxville by far is the Thompson Charitable Foundation, whose assets have recently grown to more than $75 million as a result of final distributions from the estate of the late B. Ray Thompson Sr. But its primary orientation isnt toward Knoxville but rather the impoverished coal mining country of Tennessee, Kentucky and Virginia from whence Thompson made his fortune. The rags-to-riches owner of Knoxvilles largest locally based employer, DeRoyal Industries, is similarly oriented. Pete DeBusk has contributed close to $1.5 million to his alma mater, Lincoln Memorial University in Harrogate, but not a penny to United Way. I dont like United Way and all the pressure they put on people, he says. Ive been strong-armed by every bank Ive ever dealt with to let them in my plant. But my people are working very hard just to make a decent living, and I dont want to see them hit up for any more payroll deductions. To be sure, Knoxville has its hyper-generous benefactors like Haslam and Jim Clayton. Bob Goodfriend, d.b.a. Goodys, has been singularly dedicated to the cause of East Tennessee Childrens Hospital, and B. Ray Thompson Jr. is known for his anonymous munificence to a variety of causes. Theres also a second tier of individuals whose names appear on numerous donor lists in the $10,000 to $25,000 range (but you wont find many doctors). The areas largest corporate employers, starting with Lockheed Martin, Levi Strauss and ALCOA mostly appear to do their share, as do all of Knoxvilles banks. (Conspicuously missing from the list are all of the communitys major retailers.) But the base of donors who can really make a difference is relatively narrow, and they tend to work each other over in pursuit of their respective favorite causes. Fund-raising in Knoxville is 500 individuals standing in a circle with their hands on each others wallet, says Bob Webb, founder of Webb School, who has devoted his retirement years to full-time volunteer work on behalf of the East Tennessee Historical Society and the Bijou Theater. He estimates that most of them will make donations to 30 or more organizations in the course of a year while concentrating their giving on a handful. Clayton reckons he gives to more than 100, mainly through his $15 million Clayton Family Foundation. EYEBALL TO EYEBALL Glitzy or sportive events get most of the attention, but most of the money actually gets raised in one-on-one solicitations. How much depends on the effectiveness of the organization, the appeal of its mission, and whos doing the soliciting. Dale Keasling is president of Home Federal Bank. Along with insurance man Bo Shafer, he recently chaired both the Salvation Armys $6 million campaign to build its new Center of Hope and the $1.6 million drive for an addition to the Helen Ross McNabb Centers facility for treating mentally ill children. Keasling says, The keys to the success of any campaign start with having a well-respected agency with a strong community-based mission thats effectively communicated. Then its a matter of having a chairman who can get key people to go out and make the calls. For the Salvation Army campaign, he reckons, We had between 20 and 30 really heavy hitters on our steering committee, all of whom had given very generously at the outset. If you have the right people working on behalf of a worthy cause, you dont have to worry about its being successful. After UT and the United Way, the organization raising the most money locally year in and year out is Fort Sanders Health Systems, which averages $3.5 million annually. The head of its fund-raising arm, Frank Morrison, says the focus is on getting eyeball to eyeball with prospective donors. While Fort Sanders is constantly striving to broaden its base of just under 5,000 contributors, it by no means takes those whove been giving regularly for grantedespecially the top 10 percent who account for 85 percent of the money raised. People move along in their giving patterns, and our goal is to strengthen our ties with them over time and get them to the next level, Morrison says. The eventual goala bequest from their estate. Enlisting donors to serve on an organizations board of directors is another way to spur their generosity. Indeed, some boards are almost large enough to fill a ballroom by themselves. The Knoxville Symphony Society board may be the largest, with 82 membersplus 45 others who serve on the board of its auxiliary, the Knoxville Symphony League. The board persons board person in Knoxville is Natalie Haslam. In addition to presiding over the symphony, she presently serves on seven other boards and has enlisted countless recruits to serve on them as well. When it comes to raising big money, though, the call of calls starts out: This is Jim Haslam, and I need your help. BALLS AND ALL Black-tie balls are at the top of the pecking order among the fund-raising events that offer anyone who can afford to partake a hyperactive social life. They tend to be the province of Knoxvilles arts organizationsthe symphony, the opera, the ballet and the Knoxville Museum of Art. The going rate for tickets is $250 per couple, and they usually fill the Cherokee Country Clubs ballroom to its table-seated capacity of 280. Then there are what wags refer to as the body parts balls. The American Heart Association is the only group known to be holding one of these at present. The American Lung Association dropped dining and dancing a few years back in favor of running and golfing events. For those who dont like to get dressed to the nines (or are tired of going out), the Knox County Humane Society holds its annual No Ball at All. The $50 per couple R.S.V.P. invitation encourages you to pay for the privilege of staying home and taking it easy. To get a bigger draw, East Tennessee Childrens Hospital brings big name entertainers to its annual Celebrity Gala. This years featured the Four Tops and drew 500 to the Hyatt Regency ballroom at 50 corporate-sponsored tables of 10. Most paid $2,500 or $5,000 for their tables, but Clayton Homes, Pilot and Goodys were good for $35,000 apiece. The galas $320,000 proceeds (of which $160,000 got down to the bottom line), probably make it the largest fund-raising event in towndollar-wise, anyhow. Once again, though, were poor relations compared to the uppities in places like Nashville. The turnout for that citys annual Swan Ball exceeds 850 at $750 per couple (with corporate sponsors paying more). Net proceeds of $550,000 go the Cheekwood, which doubles as Nashvilles art museum and botanical gardens. Such flashy events, especially those involving high-priced celebrities, are by no means a surefire success, and most of Knoxvilles not-for-profits shy away from them. They involve a tremendous amount of work, are very expensive, and tend to bring in money that can be raised at lower cost and with less risk in other ways, says Terry Morgan, senior vice president of Baptist Health System Foundation. Morgan recalls that in her previous post in Oklahoma City, We had Frank Sinatra supposedly to raise $500,000 for the hospital. But he walked off with the lions share and we were left with $10,000. I said never again. Date conflicts are another peril for event organizers, and to avoid them some try to stake out dates a bit like dogs marking their territory. The first Saturday in May, for instance, is marked for Blount Mansions Derby Party at $75 per railbird. On the first Saturday in June, its off to the Knoxville Zoo for dining and dancing in safari dress at its $250 per couple Zoofari. The Symphony Ball on the first Saturday in December is threatened only by the prospect that one of these years the Vols may make it to the SEC championship game with a late kickoff on that date. Ironically, the Greater Knoxville Arts Council, which maintains a calendar of events that others have relied upon for conflict avoidance, managed to schedule its fund-raiser this fall in a head-on clash with the Tennessee-Alabama game. To those who say that putting on big events can be a lot of trouble, volunteer organizer Creed says it can also be a lot of fun. Ive had some of my best times and made some of my best friends working with committees on all of the arrangements, coming up with creative invitations, table decorations and so forth, she reports. Arranging a golf tournament is no two-foot putt either. We hold our celebrity golf tournament in August, but it takes year round work, says Morrison of Fort Sanders. Were already trying to line up next years celebrity [this years was erstwhile decathlete Bruce Jenner], we have to renew our sanction by the Tennessee Professional Golfers Association, and we have to secure our sponsors. GOING FOR IT Sustaining annual donations that support an organizations operating budget is hard enough, but seeking to raise a lot more for a one-time building or other capital campaign is far more difficult. Typically, an organization thats contemplating such a campaign will bring a consultant (self-styled as fund-raising counsel) to test the waters. If they seem favorable, the consultant will help with the preparation of a compelling needs statement, prospect lists and prospecting techniques. Right now, at least six such campaigns are known to be underway or imminent in Knoxville (exclusive of U.T.s gargantuan 21st Century campaign). They include: $4 million for expansion of Ijams Nature Center. $3 million for what was just recently named the Clayton Birthing Center at Baptist Hospitalafter the Clayton Family Foundation made a $1 million gift. $3 million for conversion of the rundown former Moses School into a new center for troubled teenagers by the Boys and Girls Clubs of Greater Knoxville. $3 million for the Florence Crittenton Agencys purchase of St. Marys Health Systems shuttered drug abuse treatment center, which will permit Crittenton to nearly double its present 26-bed capacity. $2 million for the Knoxville Museum of Art which, emboldened by the success of its Rodin exhibit, is seeking to pay off loans made to keep it open during its darkest days, complete a sculpture garden and get five-year pledges of increased operating support. $1.4 million for renovation of the Bijou Theatre, including the installation of an air conditioning system that will permit year-round use. INTENSIFIED COMPETITION Does the quest for additional money on the part of some impinge upon other organizations that are dependent on donations for significant portions of their operating budgets? You better believe it does, says Dick Ray, who has spearheaded fund-raising for the Knoxville Symphony, among other civic activities, since his retirement as the head of ALCOAs operations here. Theres only so much money in this community, and when one group goes for a lot more, the others are going to suffer. The symphony, for example, depends on private donations to cover close to 40 percent of its $2.3 million in annual expenses. For others, the percentage is much higher, exceeding 90 percent of a $1.9 million budget in the case of Knox Area Rescue Ministries, which operates independently of United Way. In Haslams view, Perhaps its time for Knoxville to have a blue-ribbon committee that would give its seal of approval to campaigns. Its not a matter of good versus bad. But given our limited resources, we need to set priorities and avoid duplications. United Way endeavors to do this for the 48 agencies under its umbrella. Its allocations committee annually assesses their performance and their needs. But Landers acknowledges that theres been no change in the agencies funded in recent years and very little change in their respective slices of the United Way pie. Moreover, all of them are free to raise money on their own as long as they dont do it during United Ways fall funding season. The heightened competition makes things especially difficult for struggling organizations that dont have well-established programs or constituencies. Take the East Tennessee Discovery Center, for example. The closest thing weve got to a childrens museum gimps by on a $250,000 budget with health exhibits crammed into the fifth floor of the Candy Factory and science exhibits at an antiquated facility in Chilhowee Park. Were in a chicken and egg situation, says Margaret Maddox, who became the Discovery Centers full-time president last year. We need more money for new facilities and a more fully developed program, but in order to get more money we need to demonstrate that we have a program worth supporting. Meanwhile, Chattanooga has just completed a $16.5 million Creative Discovery Center that has an annual operating budget in excess of $1.5 million. Every cent of this is private money, according to the centers development director, Phyliss Mescon. Lest it appear Knoxville is totally lacking philanthropically, areas should be noted where we stack up very well. The performing arts are one of them. The $3 million combined budgets of the Knoxville Symphony and the Knoxville Opera Company are double that of Chattanoogas. And, as the old saying goes, you get what you pay for. Due in large part to the biggest single gift UT has ever received$12 million from an alum who became one of Hollywoods most celebrated directorsthe Clarence Brown Theater and its productions are exemplary. Moreover, our art museums $11 million edifice is far superior to Chattanoogas Hunter Museum or Nashvilles Cheekwood, and this summers Rodin exhibit buttresses bigger thinking in terms of what goes in it. At the other end of the socio-economic spectrum, the Salvation Armys Center of Hope has attracted visitors from all over the country who are hoping to replicate it, Keasling reports. ARE WE MAXED OUT? Nearly everyone engaged in local fund-raising agrees that Webbs Circle of 500 is doing just about all it can. So the need that gets reiterated and reiterated is to broaden the base. There are so many automobile dealers and doctors and lawyers whove never gotten around to giving much of anything back to the community, and weve got to get them involved, says Clayton. But this is easier said than done. People give to people, and its hard to come up with the people who are willing to go out and ask for money, says Ray. In order to be effective, the request needs to come from people who have already given at least a much as they are seeking. So the circle of prospective prospectors is limited to those who are able as well as willing. Clayton, for all his dedication, isnt in this loop. Im not a good fund-raiser, he says. I guess I just dont like asking people for money. Even those who do can only do so much. People get tired of doing this over and over again, says Webb, who has spent a lot of lunches in search of volunteers for the Bijou Theatres campaign. Haslam puts the problem in a biblical perspective. The Bible says the meek shall inherit the earth, but when they do, whos going to raise the money? he queries. uE\7GA1C1":",) ! % " "$ !  *)(16 ! 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