How does CCPA affect nonprofits? We asked an expert

Nonprofit Management

Article | July 20, 2022

Unless you've been living under a rock, you're undoubtedly aware that cryptocurrency is now trending. That doesn't imply you understand everything about it and how it pertains to your non-profit. After all, that's why you're here. But chances are, your curiosity has been stirred. There are several questions around cryptocurrencies, which we will address. But, before we get into the specifics, consider why it's important. Why Your Non-profit Should Accept Cryptocurrency? The rising popularity of bitcoin makes it an appealing payment option for charitable contributions. Because it is a digital money, it is simple to collect online donations. Accepting bitcoin is a reasonable next step after online donating has risen in recent years. Furthermore, it looks that bitcoin users are a charitable lot. According to Fidelity Charitable, 45% of bitcoin owners will have contributed $1000 or more in 2020, compared to 33% of traditional investors. Accepting cryptocurrency may appeal to younger contributors because it is popular among Millennials. One in every three Millennials owns cryptocurrencies, which is more than double the typical investor's rate. Millennials are notably kind and charitable, maybe because they entered adulthood during the Great Recession. Risks and Considerations to Accepting Cryptocurrency: While block chain and encryption make cryptocurrencies harder to hack or forge, this does not mean they are risk-free. Most cryptocurrencies, for example, are stored in digital wallets that need a key and password to access the assets. However, hackers may attack digital wallets. In the worst-case scenario, owners may misplace the key and passwords required to access the funds. When bitcoin is lost, it is gone forever. It is anticipated that $4 million in Bitcoin may be lost. On the dark web,cryptocurrency is also utilized for transactions. The anonymity of cryptocurrencies and the obscuring of transaction data appeals to individuals with less than noble intents. Furthermore, the IRS considers cryptocurrencies to be property and taxes it accordingly. Depending on the circumstances, it may also be deemed capital gains. Is Cryptocurrency Right for Your Non-profit? While accepting cryptocurrencies for donations has advantages, such as attracting new contributors, it also has drawbacks. Whatever you pick, it appears that we are entering a wild new world of digital cash.

Fundraising

Article | July 15, 2022

Advocacy vs. Activist Roles: Non-profits all over the world are typically divided into those that engage in grassroots activism, those that advocate ideological positions, and those that combine the two to work for the betterment of society. This means that many non-profits, such as the Red Cross and Oxfam, are both activist and advocacy organizations, whereas others, such as the World Watch Institute and the Club of Rome, are primarily advocacy organizations. Furthermore, many non-profit organizations, such as Greenpeace and the World Wildlife Fund, are primarily activist in nature. The key point to remember here is that no non-profit can exist solely through activism or advocacy and thus must combine both functions to gain legitimacy and credibility. In other words, non-profits must strike a balance between activism and advocacy in order to achieve their social welfare and public good objectives. Of course, there are many non-profits in the United States that primarily function as advocacy groups with a presence only in the country because politics in the United States is driven by lobbying and special interest advocacy, which means that liberals must fund non-profits that advocate for their ideologies. Grassroots Activism, Interventions, and Crisis Management: When it comes to grassroots activism, non-profits must not only have the necessary ideology but also a deep commitment as well as the willingness to endure odds and overcome obstacles. This is because grassroots activism usually entails non-profits confronting the might of the state in areas where they must question the state's practices and point out gaps and anomalies in the implementation of the government's social schemes and welfare policies. Furthermore, grassroots activism necessitates intervention and crisis management by non-profits, which frequently puts them in conflict with vested interests who do not want interference from those they perceive to be unwanted attention and spotlight focusers on their nefarious activities. This is why many non-profits stop at the beginning of their activism and do not move on to interventions and crisis management. This is also why many non-profits collaborate with law enforcement and government agencies so that any interventions and crisis management can be carried out in tandem with the government rather than the non-profits taking on the role that the government must. Of course, this is easier said than done because, in many cases, non-profits discover that governmental agencies have abdicated their responsibilities, forcing them to intervene and correct the problems on the ground.

Nonprofit Management

Article | July 20, 2022

It is crucial to keep a keen eye on what the significant figures imply for NGO’s and how they affect their operations. Learn more in detail in the 5 key lessons! It's alluring to concentrate just on the significant figures that affect the non-profit industry as a whole. However, it's equally crucial to concentrate on what those significant figures imply for certain NGOs and how they may affect your day-to-day operations. The report can be used to learn the following five key lessons. Lesson One: Small-Dollar Donors Are Being Left Behind Around 84.1% of contributors give less than $500 yearly to the organisations they support, and just 19% of new donors are retained over time, according to the most recent Fundraising Effectiveness Project data. This indicates that the great majority of small-dollar donors are leaving non-profit organizations. Lesson Two: There are Winners and Losers by Mission Type Donors change the emphasis they give to certain missions every year. Donors' giving priorities clearly reflect the legacy of COVID-19 as well as the enduring influence of racial and social justice movements. The number of non-profits with missions in the arts, culture, or healthcare increased significantly in 2020. Non-profits with an emphasis on foreign affairs, human services, and education, on the other hand, had slow growth or reductions in 2021. Lesson Three: Corporate Giving is a Distraction It will become more crucial to engage with people instead of concentrating on corporate ties as businesses modify their philanthropic alliances and employees try to support their preferred causes outside of their workplace's giving program. Lesson Four: It’s Time to Modernize Bequest Giving A warning sign that NGOs are not investing in highlighting the opportunities available with legacy gifts is the decline in bequests during 2021. Although any donor can establish a contribution through their estate to a non-profit they are passionate about, there is a frequent misconception that bequests must be customized for significant donors. Lesson Five: Retention and Acquisition Benchmarks Are Critical For its key revenue figures, the Giving USA report heavily depends on IRS 990 information. When examining giving trends throughout the sector, that data is helpful, but it is less helpful when attempting to comprehend the behavior of all donors. It is reassuring to see that when discussing contributors' ongoing support of NGOs, the Fundraising Effectiveness Project's data on acquisition and retention of individual donors was recognised as the primary source. It's crucial to comprehend donor behaviour, and you can achieve this by comparing the donor behaviour of your own organization to benchmarks from the ‘Fundraising Effectiveness Project.’

Article | April 20, 2020

The coronavirus has been disruptive, to say the least. Not to pile on more bad news, but add in the risk of a recession and a spike in unemployment, at this time even the most organized nonprofit fundraising professionals are grappling with how to move forward. We don’t know when self-quarantining will be over but we do know that with the lockdown extended to the end of April (for now), nonprofits are going to have to change up their fundraising plans. Long story short, any kind of in-person fundraising (galas, breakfasts, runs/races, etc) is going to get scrapped. But, you still need to meet your fundraising needs. To navigate these uneasy times, the only solution is to embrace a comprehensive digital fundraising strategy immediately.