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Who Earns Money? Figuring Out Who You are Fundraising From
On the surface, finding fundraising ideas is easy. Get together a group of co-workers or co-volunteers into a brainstorming session, and you will likely get a list of ideas ranging from jumble sales to door-to-door selling to a direct mail campaign. Type in “fundraising ideas” into any Internet search engine and you are likely to get thousands of hits, ranging from bake sale ideas to companies offering fundraising opportunities. It is not simply a matter of picking an idea, any idea. To be successful getting fundraising ideas, you carefully need to consider which ideas work well for your group. Choosing the wrong ideas is disastrous: you will waste time, money, and effort to get little or no financial return and the failure to raise funds may well ruin the morale and motivation of your group. Getting out of the financial hole left by a bad fundraising campaign can also be quite difficult, especially for small non-profits. There are a few things that separate a good fundraising idea from a bad one: •Cost of getting going should be what you can afford to spend •Good use of resources and talents •You have enough people power - or can get enough for it •It is a theme-appropriate idea for your group •It is appropriate for the size of your group •It does not require expensive resources you do not have •It is likely to appeal to donors •It gives added value to your donors - your donors will feel that they are getting something from the experience •It will bring in the required money. You will need to consider these requirements against every idea you consider making sure that you are choosing a fundraising idea with some legs. However, to save time, you may want to find fundraising ideas by starting with this list rather than starting with brainstorming. On a piece of paper, note the following: •The purpose of your organization •How much money you are willing to invest into fundraising •What resources you have that can help - even small resources such as someone’s car can be a big help when fundraising for your group •How much money you need - and when you need it by. Be sure to note whether you need money only for a specific project or whether you need to raise money on a consistent basis. •How much time you are willing to expend on fundraising •Who do you expect money from? •What sort of time frame do you have for the fundraising? Is there a specific thing you need money for? Do you need a specific amount by a specific time? •What is the money for? Based on this simple inventory, you can start weeding out potentially bad ideas and can start focusing on the possibilities right away. This will get you actually fundraising sooner, and with less hassle. With your fundraising goals in mind (and these goals are what you are determining by answering the above questions), you can easily tell which fundraising ideas can contribute to your goals and which are unlikely to be a help. It may be useful to consider the many ways that non-profits raise money for their programs and groups: •Lotteries and raffles: Ticket sales for games of chance are quite high and many non-profits are finding that people are willing to pay large amounts of money for the chance to win a fabulous prize. Many larger non-profits routinely raise money in the millions of dollars by having companies donate prizes such as cars and homes and then having donors pay one hundred dollars or more per ticket. Donors like the fact that these raffles and prizes often have good odds and great prizes. However, many areas have laws about lotteries and gambling, so before pursuing this idea be sure to check the laws in your area. •Sales. Selling products is easy and inexpensive to set up. You can easily organize sales by asking people to donate things and then selling these at a profit. You will need a space to store donated items, volunteers to sort and sell items, and a place to sell the items. Sales are a good way to generate fundraising money for a short-term project, although some groups have success in hosting regular sales that contribute plenty of money continuously. If you are able to find a location that will allow you to make sales regularly, you can often host sales each week. One advantage of sales is that there are many types that your group can organize: •Gardening Sales: If your group has a green thumb or a green theme, you can sell seedlings, seeds, bulbs, or other items for people’s gardens at an outside sale. In many cases, volunteers can raise plants on their own or get plants donated from gardening centers or other people’s gardens. This is a popular sale theme in spring and early summer, when many people are starting to work on their gardens and are looking for plants. •Craft sales: If members of your group like creating crafts - knitting, sewing, wood crafting, then creating a craft sale to sell small created items is often a good way to raise money. Craft sales tend to do especially well in tourist areas during the summer and in all locations before the holidays (when people are looking for items to buy others). Many small craft items can be made quite quickly, and it is often best to try to make lots of smaller items for such a sale along with a few larger items (such as quilts). •Children’s Sales: Selling items specifically for children - such as toys. Children’s clothes, and children’s books - can be a good way to draw people and donors for a children or family-related non-profit. These sales are often quite popular because many people like to buy things for their children without spending a lot of money. In many cases, items can be donated by stores or donated by volunteers. Volunteers will need to check carefully to make sure that all items are in good condition, however. •Bake Sales: Bake sales are quick to organize and inexpensive to set up. All a group needs to run this type of sale is some people willing to bake some items and a small area to sell the items. It is important to choose a good place for a bake sale. This is the sort of sale your group will want to organize at some event (such as a picnic) since few people are willing to travel out of their way to buy baked goods. A bake sale can bring in extra fundraising cash, though, if you set up your sale someplace where people already are. If you are organizing a bake sale, you will want to set up sign-up sheets so that your sale has several varieties of baked goods. In general, volunteers should be encouraged to make baked items that are finger food. Baked items that are very gooey or require a fork to eat are often too fussy for many bake sales. •Book Sales: If you live in a town that has a college or several used bookstores, you generally have the buyer base to hold a book sale. Book sales can bring in plenty of fundraising money, because many book fans are enthusiastic about reading and will gladly buy books in larger quantities. Plus, many people are attracted to book sales because the book prices are so much lower than the prices at book stores. You will need to find book donations by appealing to the public and will want to set prices fairly low in order to attract lots of buyers. •Jumble Sales: Jumble sales are very popular, as there are plenty people who frequent yard sales in the summer - and jumble sales are just larger versions of the usual garage or yard sale. Jumble sales often take place during the summer, and are easy and inexpensive to organize. You will need to collect donations of used goods, organize them, price them, store them, and then sell them at a large sale. To do this well, you will need a storage and selling space and plenty of volunteers. •Flea Markets: There are many people who like hunting for lost “treasures” at flea markets, and these people can make a flea market fundraising idea very attractive. Flea markets usually charge an admission fee but have a similar range of items as jumble sales. At flea markets, however, it is possible to find ”higher-end” items such as antiques as well as the usually assortment of used goods. Flea markets often have several sellers and sometimes offer larger items and collectibles as well. Organizing a flea market is similar to organizing a jumble sale. However, many flea markets are successful year round. In fact, many non-profits benefit by hosting regular flea markets on a weekly or monthly basis. •Home or art sales: Sales that offer art works or items for the home (such as decor or furniture) often do well because people are always looking for these items. If your non-profit can create art or find used furniture and used art pieces to sell, this sort of sale can be quite profitable. •Auctions: Auctions can take place alone or as part of a larger sale or fundraising campaign. If you can get someone to donate more valuable pieces (artworks or antiques) to your non-profit you can organize an auction yourself or have a local auction house sell the piece in exchange for part of the profit. Silent auctions (in which bidders write their bids on a paper instead of aloud) can be a great way to make more money on larger items at a fundraising sale or marathon. •Marathons: Marathons involve getting people to volunteer to participate in an event. These volunteers then recruit other volunteers to sponsor them for money. For example, the most popular types of marathons usually involve walking or running. Participants have friends and family sponsor them for a flat fee or for a specific sum for every mile jogged or walked. Once the marathon is done, the volunteers go to their sponsors and collect the money, which is then handed over to the non-profit. In order to organize a marathon, you will have to find a place for the marathon, ensure that advertising gets enough participants, and arrange ways to feed or refresh the participating volunteers. The nice thing about marathon fundraising ideas is that volunteers will often work themselves to find sources of money, which increases the amount of fundraising money that the non-profit can get through this method. Since marathons are also quite visible, many companies are often willing to help with expenses and supplies in exchange for some advertising at the event. Many non-profits successfully hold a once- a-year marathon in order to help with fundraising. In many cases, you can get more volunteers to take part by offering prizes to participants who raise the most money. Besides that usual marathons that call for participants to jog or walk, there are other types of marathons: •Dance-a-thons: In these events, participants have to dance to provided dance music for a specific amount of time. This type of event is good if you have a younger target donor list. •Sew-a-thons: In these events, participants sew (or quilt or craft) for a pres-set period of time or until a specific amount of things have been created. As an added bonus, the things created this way can then be sold at a fair or sale. However, if you decide on this sort of marathon, you will need to make sure that you can find enough volunteers willing to sew or craft for an extended period of time! •Exercise-a-thons: These were popular a number of years ago, but it is still possible to find this sort of marathon hosted by non-profits. Participants are encouraged to exercise for a specific period of time or are encouraged to take part in once type of activity (skiing, swimming, horseback riding, biking, boating, aerobics, skateboarding, in-line skating, or some other activity). It is important to ensure that the marathon is not so long that people will be injured and it is important to provide some medical help at the marathon site to ensure that anyone who is injured or becomes ill can get the help they need. •Clean-a-thons: This type of marathon is very popular among groups with a “green” theme. In exchange for the possibility of cash and prizes, participants agree to clean part of a city or highway, often agreeing to pick up specific amounts or garbage in order to get sponsor support. This type of marathon is nice because it has several side advantages. The city or town area will usually be much nicer-looking after the event, which means that media or town politicians will often support such an event, ensuring more participants. Schools, neighborhood groups, churches, and other groups interested in the community are usually willing participants, ensuring that you have enough people taking part. This type of marathon certainly makes everyone happy. It is also a snap to organize. You will need to provide refreshment, prizes, and garbage bags as well as thick gloves to protect participants. You will also need someone to take collected recyclables to be recycled. Additional volunteers will have to follow up with participants in order to get sponsor’s contributions. •Kiss-a-thons: As the name suggests, in this type of marathon calls for participants to kiss for a specific period of time. In many of these marathons, participants have also tried to get participants into the world book of records for the longest kiss. •Fasts: Marathon fasts are becoming quite popular. Events such as the “24 hour famine” raise awareness about world hunger as well as the money that can change poverty. Participants need to be told about the dangers of long-term fasting before beginning. •Cook-a-thons: In these events, which are often better for small towns where security issues are not as much of a concern, participants cook for a specific period of time. The food cooked can be sold to raise even more money or can be donated to a shelter or food bank. These marathons can be expensive to sponsor unless you can get a company to help you, as the cost of cooking supplies can be quite high. •Eating contests: Part race and part marathon, these contests are often part of a fair or bazaar. Participants try to eat as much of an item (usually a pie) within a set period of time. •Sit-ins: In the 1960s, sit-ins were used to protest certain conditions or institutions. Today, some non-profit groups are using the sit-in to raise money and awareness for specific issues. Participants spend a few days in a specific area, “camping out” creating a stir about an issue while also raising money through sponsors. This type of marathon requires lots of organizing and careful controls to keep everyone safe. Also, you will need to find someone willing to lend space for your event. •Read-a-thon: In this type of marathon, participants read as many books as they can over a period of a few weeks. In exchange, sponsors give participants a specific sum of money for every book read. Since this activity takes place on participant’s own time, there is no need to provide a space or refreshments. Participants also provide their own books, making a read-a-thon one of the more inexpensive forms of marathon to organize. Schools and libraries are often willing to help advertise or support this type of event, as well, so you can be sure of getting help with this type of project. In fact, any event or activity that can be organized to take place in a group for a few hours can generally be made into a successful marathon. For inspiration, try looking at the Guinness World Book of records and other similar reference works for activities that could be converted into a marathon. •Fairs or bazaars: These events take a long time and much effort to organize but they inevitably draw large crowds of all ages. Fairs and bazaars are basically mixed events that may contain rides, auctions, fair booths (such as palm-reading stations, pie eating contests, dunking booths and others), rides, refreshments, and other attractions. Often, you will need to rent some of the apparatus (such as the booths or rides) which means that this sort of fundraising event can become quite expensive in some cases. You will also need to organize plenty of volunteers in order to keep things running smoothly. There are many types of fair themes and styles, ranging from country fairs to haunted house or Halloween bazaars to family fairs. •Dances and other entertainment events: These events usually charge for admission and the money raised through admission is used to support the non-profit group. Usually turn out at these events is quite good as the public gets entertained for an affordable rate. This type of fundraising event can also, in some cases, be inexpensive and fast to organize: •Dances: Dances (especially themed dances such as retro sock hops, country square dances, or 80s pop dances) are always a big draw and are very easy to put together. You need a space for the dance, some decorations, and a good DJ. Admission fees and the sale of refreshments usually ensures a profit. •Movie nights: Whether you decide to organize a drive-in or get your local movie theater to offer your group a night showing, movie nights are very popular, especially if you can offer inexpensive admission. In many cases, offering older movies for viewing will draw a bigger crowd and also prove less expensive to organize. •Plays, variety shows, and comedy shows: Live shows and entertainments can be a great way to entertain and draw in money (again, through ticket sales and refreshment sales). They can take some time to organize and require lots of practice and work from volunteers, but start-up costs can be quite low if you can get someone to arrange an inexpensive venue for the show to take place in. •Bingo or casino nights: These offer exciting fun and the possibility of winning prizes and money. Proceeds (which can be quite high) go to your group. Just be aware that some communities have laws about who can hold such events, which are sometimes considered “gambling.” Check local laws before trying this idea. •Dinners: Turkey dinners, Sunday dinners, and singles dinners draw plenty of people who want to meet others and who do not want to dine alone. For a dinner event, you will want food and refreshment, a place for the dinner, some decoration and possibly some quieter entertainment that will still allow for talking among diners. Dinners are fast to organize and can be help frequently, if enough people seem interested in the event. Money is raised by having people pay at the door for the event. •Holiday events: Whether it’s a family Easter egg hunt, a Halloween haunted house, or a Christmas caroler concert, hosting events with a holiday theme always draws those who want to celebrate a special day. Charging admission is a good way to raise money at these sort of events, and other fundraising ideas - such as sales or raffles, can be added to the event to ensure greater fundraising success. •Tours: Offering walking or driving tours of a city can be a great and inexpensive way to raise money for your non-profit, especially if you live in a city or town with a large tourist population. Tours can take place a few times a week during the summer or can be conducted year round. They require little more than a few hours of volunteer time, a staff that knows about a city or area (or can learn about it by reading books) and some advertising. In addition to raising money by charging money for the tours, a non-profit can also hand out pamphlets about the organization during the tours, raising awareness as well as money. •Hay rides and barn dances: These activities are quite popular during the fall and summer, as they offer family entertainment for city dwellers who want to “get away” for a few hours. You will need to find a farm that can accommodate donors. Additional fundraising ideas - such as pony rides and a hay bale maze - can easily be added to raise even more money. Setting up the event may take money and time, but once it is set up, it can easily operate for an entire season, bringing in money regularly. A farmer offering a pick-your-own business may be willing to allow a non-profit to use a small parcel of land in exchange for drawing tourists and customers to the area, so it does not hurt to ask around. •Drives: Drives are basically requests for things. Of course, all fundraising is basically a money drive, but sometimes asking for objects (especially for items that people may be getting rid of anyway) can help bring in a better response. Many people who will not donate money will be able to afford to donate something that they may want to be rid of anyway. If you are planning on having a sale, you may need to organize a drive first in order to ensure that you have the items you need to sell. Drives can also be used to gather items that can be used in a non-profit’s programs. A homeless shelter, for example, may wish to hold a bedding drive in order to get the beds and linens needed to house the homeless. Such a drive may get a better response than simply asking for money in order to buy the bedding. Some of the more common drives include: •Blood drives: usually organized only by larger non-profits such as hospitals, clinics, larger shelters, and the Red Cross, blood drives ask people to donate blood so that those who need a transfusion can get the medical help they need. Blood drives are expensive and require trained medical personnel as well as plenty of equipment for taking, testing, and transporting blood to be stored. •Food drives: These drives usually aim to raise non-perishable food for food banks, shelters, overseas programs and other non-profits. •Toy and gift drives: Often held around the holidays, these drives aim to offer toys and gifts to children who might not otherwise get a holiday. In some cases, excess toys and gifts can be sold to second hand shops in order to raise money as well. •Book drives: Non-profit groups having to do with literacy or education sometimes seek book donations in order to give books to students and others or in order to organize programs such as bookmobiles. Books can also be sold to raise money for non-profit programs. •Housewares drives: Some non-profit groups ask for household items which can help those in need or which can be sold for fundraising purposes. •Clothing drives: Some non-profits ask for donations of used clothing (sometimes specific items such as coats) in order to clothe those in need or in order to sell the clothes in order to make money for non-profit programs. Many people (and even companies) are willing to offer their help and labor even if they are more cautious about offering their money. This sort of drive can be invaluable as it can save enormous amounts of money on services. If you need to build or renovate an office space, for example, you can get contractors to offer some of their services. Then, you will only need to raise a smaller amount of money through other means in order to pay for utilities and other necessities. •Fundraising Company Sales: There are businesses that exist solely to make money through fundraising. They get non-profit groups to sell products and then offer a part of the proceeds to the business. The fundraising sales company offers the products to be sold, the catalogues and in some cases sales training. The non-profit supplies the labor of selling and the footwork. Both parties get some of the money. The advantages of this type of fundraising are that the companies often provide most of what you need to fundraise. The products are often professionally made and so of a quality that may appeal to buyers. On the down side, you do have to give some of the money you earn to the company in many cases. Sometimes, initial start up costs or the costs of paying for unsold items are quite high, as these businesses vary in quality and trustworthiness. If you decided to follow this route in advertising, be sure to carefully investigate any company you work with. There are many items that companies offer to you to sell, including: •Chocolates, cookies, donuts, or other foods •Paper products (stationary, wrapping paper) •Gift items •Crafts •Pet supplies (leashes, bowls, sweaters) •Art supplies •Learning Tools (flash cards, etc.) •Magnets •Candles •Cosmetics •T-shirts or other items of clothing •Buttons or stickers •Toys, games, or puzzles In today’s world, it is also important to keep your volunteers safe by having them travel in groups. This method of fundraising often works best in smaller communities and for groups trying to raise money for a very specific and very local cause (such as trying to save the local park). •Direct Mail: Many non-profits send direct mail campaigns asking for money. These are essentially letters that explain why money is needed and tell potential donors how they can contribute. In some cases, these letters are very fancy, offering free stickers or desk calendars to donors and offering photos and touching stories to convince donors of the importance of the cause. The problem with direct mail is that it can be more costly than other fundraising ideas. You will need to design the letter or have it designed by a marketing firm. Printers will need to replicate the letter and you will need to include self-addressed stamped envelopes in order to make it easier for donors to respond. The post office will give you a discount on mass mailings if you are a non-profit, but you may still have to pay a lot, only to find that many potential donors discard your mailings as “junk mail.” Direct mail can work, but it has to have a very compelling theme and contain a very well-written letter to elicit a large response. In general, larger non-profits with professional marketing services (Easter Seals, the SPCA, United Way) do well with direct mail. It is a rather ambitious for a smaller non-profit group. •Donation boxes: Donation boxes can be set up at store counters. In most cases, these are clear plastic boxes with your non-profit group’s name and mission printed on them. The idea is that store patrons can put extra change in the boxes if they like to. In most cases, these donation boxes fill up very slowly but they are also inexpensive to set up and as long as you can convince a few store owners to keep your box next to the cash you can make some small extra fundraising money each month. You can’t really rely on these boxes for all your fundraising needs, but they can supplement the donations you get from others methods. •Group cooperation: Many non-profits have found that they can get great fundraising results if they can cooperate with other groups. For example, if schools and churches are willing to fundraise on your behalf, you will be able to get more money through their efforts since these groups contain many people. Approaching other groups to help in fundraising efforts takes time and effort, but the results are often worth it. •Services for hire: Rather than selling products, some non-profits find that they benefit by offering services. Usually all that is needed are some volunteers willing to work for free. Donors need to be approached in order to be asked whether they would like a shoeshine, or whatever your group is offering. In general, the cost of the service should be free and you should note that the money is going for a non-profit cause. This type of fundraising is often effective for a shorter-term project rather than for regular funds. Among some of the services that your group can offer for a fee are the following: •Shoeshine services •Portrait sketching of passers by (tourists sometimes like to buy pictures of themselves in a particular spot) •Dog walking services •Grocery carrying services (you will need to ask for permission from a store to do this) •Yard work or general handy work •Boat rides or horse drawn carriage tours •Grants: Every non-profit group should seek out government grants and grants from philanthropic organizations. Look in your local library to find directories of grants offered and write away for applications for the grants. Applying is often time consuming (and you will want to be sure to take the time to do a good job on applications) but it is well worth the effort. In some cases, you will be able to get steady money for your group through grants, so be sure to apply for all the money sources from governments and agencies that you can. •Telethons: These television events are broadcast for a few hours, during which time donors are encouraged to call in and make donations. Usually, larger non-profits use this method because you need the participation of a television station and a call center to do this (which can be expensive). However, if you have these resources (as well as a celebrity who can help you host the telethon), telethons are a good way to raise larger sums of money. •Telemarketing: Telemarketing means that you call people at their homes in order to ask them to donate money to your non-profit. In order to do this successfully, you need to be able to take credit card payments and you need to purchase a marketing list (a list from a marketing company that lists people who have donated to similar causes in the past). You will either need volunteers to make the actual calls or rely on a call center to make the calls for you (at a price). Although telemarketing can be effective, many would-be donors find this method intrusive and will often have a negative response. In most cases, talented callers make the difference between a successful telemarketing campaign and a failed one. •E-mail campaigns: Some groups have tried fundraising through e-mail. It is an appealing idea as email is very cheap and it is possible to send many emails making many appeals. However, this form of fundraising is still quite new and many people dislike unsolicited email (which is called “spam”) and never read it, especially as it is often carries computer viruses. Some Final Tips in Choosing A Fundraising Idea As you begin to figure out which ideas you want to adopt for your non-profit group, you will want to ask yourself some questions to make sure that you choose the fundraising ideas that are most likely to succeed for your group: •What Can go Wrong? Of course you want to be optimistic and imagine all the things that can go right in fundraising, but you need to consider the possible problems that may arise with a problem. If the risks are things your group cannot manage, then you may want to choose another idea. If your fundraising method will get you into debt before you make any profit, you may want to reconsider. If your idea involves food, you will want to make sure that there is no risk of food poisoning that could result in a law suit. •Are there special requirements? You may need a special license to host a lottery or bingo night. Even a movie night is ruled by copyright laws. Consult with a lawyer to ensure that you have all the legal requirements of a fundraising idea taken care of. •How Much are Total Costs? Add up costs of supplies, services, rentals, and space. If the costs are too high, you may need to start with simpler and less expensive fundraising ideas and work your way up slowly. •How Much Time will we Need to Invest? Consider not just the time of the event, but also all the preparatory work for fundraising, all the paperwork, all the organization, and the work that needs to be done after an event (including cleanup). •Do we need to hire special help or consultants? Some projects are more complicated and may need to have a professional touch to appeal to people. This can be very expensive, although for groups that can raise a lot of money; this expense can be worth it. •Will this idea get us in trouble? If your non-profit supports a controversial subject (gay rights, for example) you need to decide whether a particular fundraising effort will get you in trouble. Even non-profit groups with very neutral causes that are widely supported can get into trouble if a volunteer is injured or of someone gets hurt through a fundraising venture. Consider all the risks of every fundraising idea you consider. •What is the competition? Most non-profits are trying to make the world a better place, and it is not great to consider them “competition,” but competition they are. If the Girl Guides are selling their cookies and you are considering a fundraising idea that involves selling cookies, the competition may ensure that you get little money for your efforts. Choose an idea that no one else is currently trying and one that will not overlap too much with another group’s own fundraising efforts. •Are we offering variety, quality, and something new? This is the secret combination that will ensure higher fundraising earnings because it will ensure that customers or donors will want to contribute. Those who buy your products in fundraising or offer money through donations want a quality product or service. They want something new and varied - if many groups in your area are selling chocolates, donors are less likely to give to your campaign because they are bored by the idea. Try to offer your donors a choice and offer them something that is not run-of-the-mill and they will reward you with donations. •Long term idea or one-shot deal? Not every idea needs to raise money in the long run, but if all your fundraising ideas seem to offer short-term money in exchange for a lot of work, you need to consider how you are going to get the money to run your group on a day-to-day basis. •How much money do we hope to bring in? You may not want to think about dollars and cents, but you need to. You need to know how much money you need to raise before you start you efforts. That way, you will know which fundraising ideas will not be adequate in bringing in the money you need. •Who will show up? You need to decide whether your fundraising ideas will appeal to a wide enough range of people to be money-making ventures. If you live in a bedroom community full of seniors, a skate-board-a-thon may simply not draw as many people as a fair or a retro dance. •Is timing a consideration? If your fundraising ideas are holiday-related, you need to start planning well ahead of the holiday. •What are some probable responses? Anticipating the possible reactions your event will have (both the positive and negative reactions) will make it easier for you to handle the various reactions that fundraising efforts generally elicit. •What, exactly, needs to be done? Make a large list of everything that needs to be done in order to make the fundraising a success. Are you able to do these things? If not, you may need to choose a more suitable idea or find ways to accomplish all the tasks on your list.Are You Ready To Move Onto The Next Lesson? Click Here
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