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September 5, 2016

Area nonprofits to test "March Madness" bracket fundraising model

PHOTOs | Contributed Bracket challenges are preceded by pep rallies meant to raise awareness and excitement among nonprofits and donors.
PHOTO | Contributed The five winners of Brackets’ 2016 tournaments received checks at an Indiana Pacers game earlier this year.

There's perhaps no more exciting time for many Connecticut fans than when UConn's basketball teams take the court for the NCAA's March Madness tournament.

The UConn men's and women's teams have 11 championships over 22 tournament appearances since 2004, and have even shared dual victories twice over that span.

During next year's March Madness, area nonprofits — many facing steady or growing fundraising challenges — are hoping the Nutmeg State's enthusiasm for collegiate hoops will translate into generosity for local charities.

As many as 64 Hartford County nonprofits will compete for donations in an online bracket-style competition organized by Indianapolis-based Brackets for Good, which says it has helped raise $2.7 million for charitable organizations in several states since 2012.

New Britain's Stanley Black & Decker has signed on as the title sponsor for the Connecticut challenge. Its $10,000 contribution will be used as a grand prize for the winner of the tournament, slated to run from Feb. 24 to the end of March.

“We've all been to the gala, we've all been to the traditional fundraising event,” to raise money for charities and other organizations, said Reid McDowell, marketing and partnerships director for Brackets for Good, which is also a nonprofit. “We want to provide another option.”

Brackets for Good has been gaining steam since launching in 2012 in the Indianapolis market, when it raised $32,000 for eight nonprofits, McDowell said.

Last year, there were five state-based challenges, raising approximately $1.4 million, which was the largest haul yet. There are 10 challenges scheduled for 2017, including Connecticut's.

Ironically, the Brackets for Good concept was dreamed up by several disappointed Butler University fans after their Indianapolis-based basketball team lost to the UConn men in the 2011 NCAA tournament championship.

How it works

The bracket challenge will be open to all registered 501(c)3 organizations in Hartford County.

The first four rounds will last for one week, with one-on-one matchups between participating nonprofits. Whoever raises the most during a round moves on, but the loser gets to keep all the money it raised during the tournament. The final two rounds are condensed into one week.

Brackets for Good says it does its best to avoid any lopsided matchups, particularly early in the tournament, through its selection process, which uses a scoring system.

“We don't want to pair an organization with a $10 million operating budget with one with $100,000 in the first round,” McDowell said.

However, he said just like in college hoops, favorites don't always win a given matchup.

“We see cinderella stories year after year,” he said.

Nonprofits will have until Oct. 28 to register at https://bfg.org.

Nonprofits don't pay to participate. However, online donors must pay an administrative fee of 4.7 percent plus 30 cents.

Brackets for Good also prints bracket posters, promotes the challenge through social media and other advertising, and organizes a pep rally of sorts in each of its markets ahead of the tournament to gin up excitement.

The nonprofit said it would like to offer the challenge to more Connecticut nonprofits, and hopes to gauge interest for a future expansion.

CT nonprofits hope for boost

Since Brackets for Good hasn't yet formally announced the Connecticut tournament (that's coming soon), many nonprofits here may not yet know of it.

But as of last week, a handful had already registered.

Among them was East Hartford-based Boy Scouts of America Connecticut Rivers Council. Council CEO Steven A. Smith read about a fellow council participating in the Indiana challenge on Facebook and reached out to Brackets for Good to bring the concept to Connecticut. He said he also helped get Stanley on board as a sponsor. Stanley CFO Donald Allan Jr. is the council's volunteer president.

“I saw it as a fun way to engage new donors,” Smith said. “This state lives and breathes basketball, so it's a natural fit.”

But amidst the fun is a more serious reality for many nonprofits, including Smith's council — which serves 127 communities and has upwards of 30,000 youth and adult members.

While many nonprofits struggle, recent state funding cuts have made the financial picture more challenging, placing even greater pressure on foundations and other major grant makers. In some cases, it's affected nonprofits that don't receive any state money, like the Boy Scouts.

Smith said the vacuum has pushed some donors to prioritize or more narrowly define what kinds of nonprofits will receive their support. Some have chosen to place a greater emphasis on hunger and poverty programs.

“We've seen some longtime funders say 'we can't support you anymore because there are more pressing needs in the community,' ” Smith said.

Over the past few years, the Connecticut Rivers Council has been forced to cut some staff, close one of its five camps and dip into its reserve funds, he said. Its 2015 revenue fell 19 percent, to $1.6 million, partially fueled by a dip in contributions.

Another nonprofit hoping to participate in the Brackets for Good challenge is Hartford's Children's Law Center (CLC), which represents indigent children in volatile custody cases involving allegations of abuse, neglect or other problems.

Though there were hundreds of those cases last year, it's a relatively narrow niche for a nonprofit, which has made fundraising difficult at times, said Justine Rakich-Kelly, CLC's executive director.

“Sometimes we don't fit nicely into the priorities that funders set,” Rakich-Kelly said.

She said one foundational partner recently informed CLC that it would be forced to ratchet down its support over the next few years.

So CLC applied and hopes to be selected for the bracket challenge.

“It seemed like an opportunity for us that would be something fun and interesting,” Rakich-Kelly said.

Plus, she and many of her team of seven attorneys are rabid hoops fans.

Unlike the Boy Scouts, the CLC does receive state funding in the form of fees from the Office of the Chief Public Defender as well as a line item.

That line item was cut in the recent budget from around $110,000 to just under $103,000. Rakich-Kelly said state support for CLC was as high as approximately $150,000 around 2007.

In 2015, CLC posted a $108,000 deficit — its largest in at least five years.

The nonprofit has had to make changes to employee benefits, and Rakich-Kelly said the year ahead could be more challenging. So a boost would be nice.

“We're excited about the brackets,” she said.

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