Published
May 22, 2025
The landscape of our world has shifted dramatically in the last five years. Resilience and mutual support have become more vital than ever as individuals and businesses navigate daily uncertainties.
Innovative approaches to non-traditional revenue streams are crucial for organizational sustainability in this evolving environment. One powerful avenue for chambers and associations to explore is an angel fund program, a testament to the strength of your community and a meaningful way to bolster your financial foundation. At its heart, an angel fund taps into the inherent desire of members to support one another during challenging times.
We've seen this spirit firsthand right here in our community. Following the devastation of Hurricane Harvey and the ongoing impact of the pandemic, we've witnessed both the struggles of long-standing members to maintain their engagement and the inspiring generosity of others eager to lend a hand. This desire to "pay it forward" is the bedrock of a successful angel fund.
About IOM
This article is brought to you by Institute for Organization Management, the U.S. Chamber of Commerce’s professional development program for nonprofit executives.
Establishing a Framework
Here's a practical framework for establishing your impactful angel fund:
- Leverage Your Foundation (or Establish One): Your existing 501(c) entity provides the perfect infrastructure for managing charitable contributions. If you don't have one, now is an opportune time to explore its creation. This structure offers tax advantages for donors and streamlines the administration of your angel fund.
- Integrate Seamlessly into Membership Renewals: Simplicity is key. Include a clear and concise one-liner on your member renewal notices, inviting members to contribute to the angel fund and support a fellow member in need. This subtle yet powerful prompt makes giving accessible and top-of-mind.
- Recognize Your "Angels": Inspired by the outpouring of support within our own community, we're calling these benevolent contributors "Chamber Angels." This designation adds a personal touch and acknowledges their vital role in sustaining our collective strength. Contributions will be directed to the dedicated "Angel Fund."
- Building the Fund: A dedicated line item on all renewal notices will ensure consistent contributions to the angel fund. These funds will accumulate in a designated balance sheet account, ready to be deployed when needed most. Review this setup with your CPA.
- Thoughtful Distribution: When a member reaches the 90-day late renewal mark, it signals a potential need for support. This triggers a carefully considered process:
- Staff Identification: Staff will identify the member and present their name to the President/CEO.
- Executive Committee Review: The President/CEO will bring the information to the Executive Committee for evaluation.
- Objective Criteria: To ensure fairness and equity, the Executive Committee utilizes a predefined matrix to assess the member's eligibility for Angel Fund support. This matrix could consider factors like length of membership, past contributions, and the nature of their hardship (while respecting privacy).
- Confidential Notification: If approved, staff will discreetly notify the member that their membership has been covered by an Angel. The contributing member's identity will remain strictly confidential.
Why Angel Funds Matter
An angel fund isn't just about revenue; it's about fostering a stronger, more connected community. It offers several key benefits:
- Non-Traditional Revenue Stream: Diversifies your income beyond traditional membership dues and events, enhancing financial stability.
- Member Retention: Provides a safety net for struggling members, increasing the likelihood of their continued engagement.
- Enhanced Community Spirit: Reinforces the value of belonging and demonstrates a commitment to mutual support.
- Positive Public Image: Showcases your organization's compassion and dedication to its members.
By implementing an angel fund program, you're not just building a new revenue stream; you're cultivating a culture of care and resilience within your community.
It's a powerful way to ensure that even in challenging times, your members can continue to thrive, supported by the generosity of their peers.
About the author
Diane Probst, IOM, CCE
Diane Probst is a legend in the Chamber industry, having led her state association as Chairman of the Board, authored two books, and led a 5-star Chamber through it all. Diane is also a faculty member for the Institute of Organization Management (IOM).
