In this economy we all feel like we are being nickel and dimed to death!
However, nonprofits shouldn’t hate a nickel, because it’s not a dime. Just be thankful you’re still getting something!
The days of going after only the “big buffalo” in fundraising are over. Billions of dollars in assets have been wiped out. Despite what you might be thinking about an economy, those dollars are gone and the mindset of individuals have changed. Notice, however, I did not say people will stop giving. I think people will continue to be generous but I do think they will be more specific in who they help.
If you will for a moment, I’d like for you chew on another phrase which is: It takes one to know one!
So, I’ve got a question for you. How many millionaire nonprofit staff members do you know? My guess is very few. So as a practical question do you think a millionaire thinks differently about giving than you might?
Let’s even unpack this more and drop down a level. Can nonprofit executive directors or professional fundraisers really appreciate what it means to give a large donation if they themselves have never given one? Does it really matter?
I am not trying to start a class warfare argument but what I am trying to do is help the reader realize that regardless of your income level I have never met a Zombie Donor!
In my job I receive phone calls or emails daily from not just nonprofit organizations but also from donors that have a specific idea of what they want to do or how they want their estate settled and are looking for answers on how best to move forward.
I am quick to tell everyone I meet that I’m not an attorney nor a CPA so I do not give legal advice. However, I am more than happy to share what I know, free I might add, as well as give links to other information or point them to other individuals I know and trust that I think can help with their individual situation.
Over the years I have talked to all sorts of interesting people including professional athletes, children of movie stars, doctors and yes even Indian chiefs. People from all walks of life and ages and almost everyone I come in contact with ultimately see as a goal to help someone else!
A real key for me taking the time to hear exactly what it is the person wants to accomplish and not pushing someone to a specific product or service.
Nonprofits might learn something from this. Instead of pushing your wants on a donor, find out what they want instead. What interests them about your organization?
Also a news flash for those that might not be aware: Just because someone has money does not mean they should give it to you just because you were kind enough to ask for it!
If you are going to get serious you have to understand that just showing up for work is not enough. You have to be willing to roll up your sleeves and put the time in that is required to make your organization a success. If you need help doing that just ask! Visit: www.nonprofitexpert.com
Showing posts with label making a contribution. Show all posts
Showing posts with label making a contribution. Show all posts
Saturday, February 13, 2010
Wednesday, September 9, 2009
Giving A Donation Receipt
As a consultant for nonprofits and as a contributor to nonprofits myself one of my biggest pet peeves is writing a check to a nonprofit or donating goods or services and not getting a receipt for what I gave.
What should this receipt look like or say?
The written acknowledgment required to substantiate a charitable contribution must contain the following information:
Name of the organization;
Amount of cash contribution;
Description (but not value) of non-cash contribution;
Statement that no goods or services were provided by the organization, if that is the case;
Description and good faith estimate of the value of goods or services, if any, that organization provided in return for the contribution; and
Statement that goods or services, if any, that the organization provided in return for the contribution consisted entirely of intangible religious benefits, if that was the case.
You generally can deduct your cash contributions as well as the fair market value of any property you donate to qualified organizations. The fair market value of most household or personal items is generally much less than the price paid when new. You should claim only what the item would sell for at a garage sale, a flea market, or a second hand or thrift store.
If you have a donor calling you at the end of the year as they prepare their taxes to get a receipt for a contribution they made during the year then, shame on you, for not doing your job! Also, realize a receipt is just that a receipt it is not a meaningful thank you card. Do not try to combine them as if they were both receipt and thank you.
If you are serious about building a relationship with your donors then you need to be thinking about how you can properly thank them! This may mean sending a separate written thank you note or card, or make sure in your next newsletter you say thank you. If you publish an annual report that is also another good opportunity to let someone know you appreciate them by listing their name under donors or supporters. At your next fundraising event, have a display board that has written out the words "thank you" and have a list of all your donors. Think about giving your donor a little memento to say thank you. Post-it-note cubes with your nonprofit logo work great and look nice on your donor's desk at his or her office and will keep your image in front of him or her daily! A coffee mug full of mints or chocolates can be inexpensive and a nice touch, etc. Be creative, but most of all be genuine!
If you have any questions feel free to email me: john@minges.com
Also, make sure to visit my website:
www.nonprofitexpert.com
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
What should this receipt look like or say?
The written acknowledgment required to substantiate a charitable contribution must contain the following information:
Name of the organization;
Amount of cash contribution;
Description (but not value) of non-cash contribution;
Statement that no goods or services were provided by the organization, if that is the case;
Description and good faith estimate of the value of goods or services, if any, that organization provided in return for the contribution; and
Statement that goods or services, if any, that the organization provided in return for the contribution consisted entirely of intangible religious benefits, if that was the case.
You generally can deduct your cash contributions as well as the fair market value of any property you donate to qualified organizations. The fair market value of most household or personal items is generally much less than the price paid when new. You should claim only what the item would sell for at a garage sale, a flea market, or a second hand or thrift store.
If you have a donor calling you at the end of the year as they prepare their taxes to get a receipt for a contribution they made during the year then, shame on you, for not doing your job! Also, realize a receipt is just that a receipt it is not a meaningful thank you card. Do not try to combine them as if they were both receipt and thank you.
If you are serious about building a relationship with your donors then you need to be thinking about how you can properly thank them! This may mean sending a separate written thank you note or card, or make sure in your next newsletter you say thank you. If you publish an annual report that is also another good opportunity to let someone know you appreciate them by listing their name under donors or supporters. At your next fundraising event, have a display board that has written out the words "thank you" and have a list of all your donors. Think about giving your donor a little memento to say thank you. Post-it-note cubes with your nonprofit logo work great and look nice on your donor's desk at his or her office and will keep your image in front of him or her daily! A coffee mug full of mints or chocolates can be inexpensive and a nice touch, etc. Be creative, but most of all be genuine!
If you have any questions feel free to email me: john@minges.com
Also, make sure to visit my website:
www.nonprofitexpert.com
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
Thursday, September 3, 2009
Nonprofits Need To Understand Their Donor
I have yet to run across a nonprofit that has told me they have plenty of money!
Most that I'm aware of are trying to figure out how to raise more money or to attract the potential donors who have the big bucks! Subconsciously, I think, many nonprofits are treating donors more like lottery numbers, somehow believing their contributions are all part of a bigger game of chance. They wait patiently for their numbers to come up, having a false sense of hope. Success must just be around the corner! Nonprofits that take this approach are destined to be moderately successful at best.
Nonprofits have a hard time understanding their donor, because they have not taken the time to get to know them! They have not made the effort to find the donor's hot button or passion. Therefore, the donor drifts and many times disappears completely!
Year after year the facts tell us that the vast majority of all the money contributed to nonprofits comes from individuals. So, why are nonprofits ignoring the individual donor?
As a reader, I want you to think about who you are currently making charitable contributions to and I want you to also think about who you gave to in the past year but are no longer giving to that organization now. Why have you stopped giving to these organizations?
Has the organization stopped doing the good work they were doing? For most people that answer would be, NO! What happened then? Did you, as a donor, get bored or did the organization lose touch with you?
I believe the majority of the time the answer is the following: As individuals we want to feel like our contribution counts and matters! We want and many times "need" to feel appreciated! The moment we feel the least bit taken for granted we move on.
Sadly, in the consultant world, nonprofits are so lost that on many occasions before they even think about raising money, especially for larger capital campaigns, the organization will choose to run out and hire an "expert." Normally these folks come from out of town, often times get paid thousands of dollars, to tell the nonprofit what "their donors" think about them. The consultant also will gladly for that fee give their opinion on the "chances" the organization has in raising the money they are talking about needing. Wait a second....please.. help me out, OK!
This is not a game of "chance" is it?
I know this will not be a popular position to express and I'm not against anyone seeking professional help! Hello, I'm a consultant after all, and I enjoy helping and nonprofit organizations find the answers to the questions they have.
But folks, as nonprofits you should have a better handle on who your donor is and what they think about you! You should not need someone, like myself, to come in from the outside who knows nothing about you, your history, your organization or what you have accomplished to find that answer out. You should already know!
I know what some of you are saying now: As strange as it sounds, it is true, that it is easier to talk to strangers rather than be so blunt to the staff of a nonprofit.
Regardless, I would like to make a challenge today to all nonprofit executive directors as well as to all nonprofit board members. You both need to take the time today to get to know your top twenty donors to your organization, before someone else does. You have everything to lose if you don't!
Right now pull out your calendar, and set up weekly lunch appointments with those people, NOW!
Do not, I repeat, do not ask for a contribution on this visit! If the donor wants to give you a check instead of meeting with you tell them, no thanks, you're not looking for a check! You want to let them know what the organization is doing i.e. a status report! You heard me right, this is more of a social call, not a fund raising call. In fact, if lunch or dinner is arranged I want you, as soon as you walk in the restaurant, to tell the server that you are paying as well! Now sit back and hear what the donor has to say, find out what is important to them. You might be surprised what you learn!
If you have any questions feel free to email me: john@minges.com
Also, make sure to visit my website:
www.nonprofitexpert.com
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
Most that I'm aware of are trying to figure out how to raise more money or to attract the potential donors who have the big bucks! Subconsciously, I think, many nonprofits are treating donors more like lottery numbers, somehow believing their contributions are all part of a bigger game of chance. They wait patiently for their numbers to come up, having a false sense of hope. Success must just be around the corner! Nonprofits that take this approach are destined to be moderately successful at best.
Nonprofits have a hard time understanding their donor, because they have not taken the time to get to know them! They have not made the effort to find the donor's hot button or passion. Therefore, the donor drifts and many times disappears completely!
Year after year the facts tell us that the vast majority of all the money contributed to nonprofits comes from individuals. So, why are nonprofits ignoring the individual donor?
As a reader, I want you to think about who you are currently making charitable contributions to and I want you to also think about who you gave to in the past year but are no longer giving to that organization now. Why have you stopped giving to these organizations?
Has the organization stopped doing the good work they were doing? For most people that answer would be, NO! What happened then? Did you, as a donor, get bored or did the organization lose touch with you?
I believe the majority of the time the answer is the following: As individuals we want to feel like our contribution counts and matters! We want and many times "need" to feel appreciated! The moment we feel the least bit taken for granted we move on.
Sadly, in the consultant world, nonprofits are so lost that on many occasions before they even think about raising money, especially for larger capital campaigns, the organization will choose to run out and hire an "expert." Normally these folks come from out of town, often times get paid thousands of dollars, to tell the nonprofit what "their donors" think about them. The consultant also will gladly for that fee give their opinion on the "chances" the organization has in raising the money they are talking about needing. Wait a second....please.. help me out, OK!
This is not a game of "chance" is it?
I know this will not be a popular position to express and I'm not against anyone seeking professional help! Hello, I'm a consultant after all, and I enjoy helping and nonprofit organizations find the answers to the questions they have.
But folks, as nonprofits you should have a better handle on who your donor is and what they think about you! You should not need someone, like myself, to come in from the outside who knows nothing about you, your history, your organization or what you have accomplished to find that answer out. You should already know!
I know what some of you are saying now: As strange as it sounds, it is true, that it is easier to talk to strangers rather than be so blunt to the staff of a nonprofit.
Regardless, I would like to make a challenge today to all nonprofit executive directors as well as to all nonprofit board members. You both need to take the time today to get to know your top twenty donors to your organization, before someone else does. You have everything to lose if you don't!
Right now pull out your calendar, and set up weekly lunch appointments with those people, NOW!
Do not, I repeat, do not ask for a contribution on this visit! If the donor wants to give you a check instead of meeting with you tell them, no thanks, you're not looking for a check! You want to let them know what the organization is doing i.e. a status report! You heard me right, this is more of a social call, not a fund raising call. In fact, if lunch or dinner is arranged I want you, as soon as you walk in the restaurant, to tell the server that you are paying as well! Now sit back and hear what the donor has to say, find out what is important to them. You might be surprised what you learn!
If you have any questions feel free to email me: john@minges.com
Also, make sure to visit my website:
www.nonprofitexpert.com
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
Wednesday, September 2, 2009
How Nonprofits Attract Donors
First, nonprofits need to be fully aware that not everyone is a donor or wants to be a donor to your cause! For some reason many nonprofits think that just because they "do good" that everyone should be attracted to their cause, which is simply never the case. Nonprofits need to learn to cultivate donors by making connections with individuals that are really interested in what they are doing!
Also, realize that just because you have Ms. X, who is a donor or maybe even on your board of your organization, and she is friends with Ms. Y, who is known in the community as very generous and donates lots of money to causes, does not mean you should have instant access to go knocking on her door and expect a huge contribution. You have to learn as a nonprofit to really work at building a relationship and EARNING the right to ask for a contribution! While it is true that people give to people, sometimes regardless of the cause, if you are looking for long term donors you're going to have to work a little harder!
Do people in your community really know that your organization exists? If not, then you need to be like any other good business and get the word out and advertise. Don't expect everything free either! Be creative! Do you have a newsletter? Are you talking at civic groups? Are you listed in the phone book? Do you run an ad in the newspaper? Do you have a billboard? What are you doing to create your point of difference between your nonprofit and all the others out there in your community?
One good way to cultivate new donors is to have an open house. Lots of hard work up front has to happen in order to get people to come out, but in doing this you are casting a large net asking people to come see what you are all about. Realize that just because someone might stop by does not make them an instant donor! Take it slow. Example: Most folks hate going into a store shopping and having a pushy salesperson, right? So you don't need to be the pushy salesperson in your nonprofit. Show your best side, make a good first impression so there will be a chance for another connection later. If possible get people to give you some information about themselves so you can follow up with them later. If nothing else just send them a card saying thanks for stopping by!
** Very Important** People want to be a part of a success and a winning team not a sinking ship!
If people come to your organization and get nothing but a sob story then your chance of success will be limited. Getting a "pity donation" is a one time donation and you will quickly be forgotten and replaced by another organization that is offering more hope of success.
Also, I hate to be the one to break the bad news but, there is no one size fits all solution to creating success in all nonprofits! Each case is different and all nonprofits have different strengths and weaknesses. If you need help....I'm here to be a sounding board, just send me an email: john@minges.com. Also, make sure to vist my website www.nonprofitexpert.com for more information.
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
Also, realize that just because you have Ms. X, who is a donor or maybe even on your board of your organization, and she is friends with Ms. Y, who is known in the community as very generous and donates lots of money to causes, does not mean you should have instant access to go knocking on her door and expect a huge contribution. You have to learn as a nonprofit to really work at building a relationship and EARNING the right to ask for a contribution! While it is true that people give to people, sometimes regardless of the cause, if you are looking for long term donors you're going to have to work a little harder!
Do people in your community really know that your organization exists? If not, then you need to be like any other good business and get the word out and advertise. Don't expect everything free either! Be creative! Do you have a newsletter? Are you talking at civic groups? Are you listed in the phone book? Do you run an ad in the newspaper? Do you have a billboard? What are you doing to create your point of difference between your nonprofit and all the others out there in your community?
One good way to cultivate new donors is to have an open house. Lots of hard work up front has to happen in order to get people to come out, but in doing this you are casting a large net asking people to come see what you are all about. Realize that just because someone might stop by does not make them an instant donor! Take it slow. Example: Most folks hate going into a store shopping and having a pushy salesperson, right? So you don't need to be the pushy salesperson in your nonprofit. Show your best side, make a good first impression so there will be a chance for another connection later. If possible get people to give you some information about themselves so you can follow up with them later. If nothing else just send them a card saying thanks for stopping by!
** Very Important** People want to be a part of a success and a winning team not a sinking ship!
If people come to your organization and get nothing but a sob story then your chance of success will be limited. Getting a "pity donation" is a one time donation and you will quickly be forgotten and replaced by another organization that is offering more hope of success.
Also, I hate to be the one to break the bad news but, there is no one size fits all solution to creating success in all nonprofits! Each case is different and all nonprofits have different strengths and weaknesses. If you need help....I'm here to be a sounding board, just send me an email: john@minges.com. Also, make sure to vist my website www.nonprofitexpert.com for more information.
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
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