Nonprofit Management
Article | July 20, 2022
As our world continues to be reshaped by the effects of COVID-19, nonprofits are looking for new ways to engage in online and virtual fundraising to support their revenue. This comes as a record number of organizations have lept into the peer-to-peer fundraising world in record numbers. Social media and do-it-yourself fundraising (where people can organize their own fundraising campaign for their favorite charity) make it easier and more attractive to people.
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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.’
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Nonprofit Management
Article | July 28, 2022
I do not know about you, but I am now in a full-blown fundraising sprint to the end of the year! I am multi-tasking. Yesterday, I arrived in the office at 7 a.m. and the day did not end until I arrived home at 7:30 p.m. There is not a minute to lose. Beyond many job-related tasks, I spent time identifying, cultivating, stewarding, and especially soliciting individuals, corporations, foundations, associations, and organizations.
I also volunteered last week to help three organizations in their end of year fundraising activities. When you work in the world of social services, all you think about, especially in December, are the needs of others. Why should nonprofits sprint to the end of the year at this time on the calendar?
According to Neon One, there are major year-end giving statistics that show how powerful December is each year. One-third of annual giving occurs in December; 12% of all giving occurs in the last three days of the year; more than 53% of nonprofits plan their year-end appeal in October; November and December collectively represent 77% of the most popular months for making year-end asks; and 28% of nonprofits raise up to 50% of their annual fund from their year-end ask.
In addition, two-thirds of people who make donations do not research before giving; 80% of volunteers also donate to their organization; 60% of nonprofits make up to three touches for their year-end campaign; and direct mail is the most popular medium for year-end asks, followed by email, website, and in-person asks.
The Allegiance Group noted that there are essential things your nonprofit should do at the end of the year. These include holding an annual meeting, electing officers and directors, preparing financial reports, approving next year’s budget, filing IRS Form 990, filing your Secretary of State Annual Report, maintaining a registered agent, obtaining or renewing charitable solicitation licenses, reviewing solicitations and donor receipts, and updating your files and records. Strive to assess and make plans for the new year. Critique your operational results and strive to improve your operational model.
The Tapp Network published five fundraising benchmarks every nonprofit should know to double December donations. These benchmarks include 30% of fundraising occurs in December, 10% of all online fundraising occurs in the last three days of the year, 30% of donation page traffic occurs around Giving Tuesday and early December, and 200% more donations are raised by mobile-responsive as opposed to non-mobile websites.
Also, 52% higher donation values are attributed to December than any other time of the year. Be prepared for the December rush by building email lists and social media support now. Upgrade your sites to be mobile responsive and donation collective during December. Send reminder emails during the last week of December and continue to ask for financial support via social media.
For a Good Cause noted that for December fundraising efforts, which heighten a spirit of generosity, create a year-end customized donation page on your website. Double check that your website is optimized for mobile, so your page is user friendly. Brand your campaign, tweet about the campaign, and link the donation page to your Instagram bio. Because New Year’s Eve is the biggest day of the year for nonprofits, send out multiple appeals that day using all social media channels. Create a fundraising thermometer on your website and keep it up to date. Do not forget to thank your donors by telling them what they accomplished by giving your organization money.
Use December as a time to utilize creative Christmas fundraising ideas. An article by Donor Box provides you with wonderful possibilities in this regard. An estimated 43% of higher income donors (households earning more than $200,000 annually), donate more during the holidays.
Key December Ideas shared by Donor Box include the following:
Create a matching gift program.
Establish a gift-wrapping party to engage volunteers.
Create a soup party for volunteers, wrapped around a donor thank-you call event.
Hold an ugly sweater party where participants pay to enter.
Hold a polar plunge for your nonprofit.
Host a holiday gala dinner.
Establish a Christmas-themed fundraising day.
Invite donors to have a Christmas cookie bake-off.
Have a story telling campaign on social media.
Have volunteers create homemade Christmas cards.
Host a letter to Santa event.
Create a donate page on your website.
An article by National Giving Month noted that if 10,000 signatures from people who believe in charity are sent to U.S. Senators, Congressman, and the White House, a legislative resolution will be offered proclaiming December as National Giving Month. Last year, Americans gave $410.2B to charity, breaking all previous records. Our generosity demonstrates that even in divisive times, our commitment to charity is secure. So far, 10,194 supporters have signed the proclamation and counting.
There are three weeks left in 2021. It is never too late to try something new. See where you are in your fundraising goals. Engage your staff, administration, volunteers, friends and organizational family to help your organization sprint to the fundraising end of year. Everyone needs to own their responsibility for fundraising success, and it starts with your CEO. The sands of the hourglass are continuing to fall.
Use whatever motivates your prospects to give, including tax incentives, recognition, personal satisfaction, feelings of joy through giving, and sharing of organizational stories. You will have time for a brief breather next year. December is not the time to pull back your energy and efforts. Most people are in the spirit of giving now and you need to tap their brief feeling for total success to occur. Do not waste one second of your time on activities that do not produce solid ROI (return on investment).
Make every fundraising day count in December. It will be gone before you know it.
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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.
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