Tag Archives: smart giving

Habits of highly effective giving

Latest News, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

 

Like in business, charitable organizations require revenue to not only exist, but to provide support, growth, and opportunity to the beneficiaries they serve.

Billions of dollars are contributed to organizations each year. Some donors may question is this enough or is their contribution needed? However, the more appropriate questions might be “Am I giving to the right organization” and “How effective is my donation”? The answers lie within each donor’s personal path to philanthropy.

For the most part, when donors make a charitable donation, they want to know that they are giving to a good thing and that the money will be used the right way. But, how do donors know this? How can they be assured or satisfied that their donations will be well spent? In our opinion, effectiveness equals donor satisfaction combined with impact and utilization of each gift.

No matter the size of the donation or from whom it is being contributed (business, foundation or community resident), here are our habits of highly effective giving.

Identify the ideal organization
When looking for the right organization to support, start by taking a good look at your interests, connections, goals, and influences. These will help narrow the list of local, national, or global organizations from which to select the one(s) you’ll eventually support. If you need help, contact a nearby leader (such as NPcatalyst), who has access to multiple directories.

Understand the organization’s needs
When you have narrowed the search, take a good look at each organization’s reason for existence, mission, programs, and goals. As you do this, you’ll become more familiar with the organization and, more importantly, identify and understand their needs. If you’re having a difficult time identifying their need for donor and volunteer support, give them a phone call or send an email.

Assess the organization
A critical step of the process is analyzing each organization’s operations and performance. This is where you determine the soundness of their best practices. Be sure to assess the percentage of funds being allocated to programs or services; take a look at the strength of their leadership; and check to see if their policies, procedures, and management practices are up to par. If you would like assistance, contact companies like NPcatalyst, which analyze and rate charities on a regular basis.

Establish a relationship
There’s no finer way to understand an organization than by direct contact. This can be accomplished by sending an email or calling a staff or board member to ask questions, request a meeting, register for a special event, or offer to volunteer. As in business sales, the ideal “transactions” take place as a result of mutually-beneficial relationships. It is a great way to watch the effect of your donation.

Leverage the contribution
Once you have made the donation(s), the fun does not need to end there. No matter the size of the gift, sharing your goodwill should help compel others to duplicate your act of kindness, as well as create greater awareness of the organization. For businesses, it is a great way to illustrate a business’s role in community growth, not to mention its effect in generating new business. By simply updating your “status” via social media (Facebook, Twitter, etc.) or sending a press release to media or mailing a letter to friends, there is a good chance your gift will keep giving.

Measure the contribution
Similar to assessing the organization (Habit #3), be sure to confirm how the money was allocated within the organization. Whether the contribution was unrestricted or restricted (given for a specific purpose), it is vital that you recognize that the donation was distributed toward its intended purpose.

The significance of each charitable donation is escalated when a donor has a deep understanding of the cause, the organization, and the program(s) being supported. In a very similar approach to building personal relationships, the more familiar a donor is to the beneficiary of the contribution, the more significant and rewarding the gift.

If you have not applied these habits to past contributions, imagine how your giving could have been different. By applying these habits, your future donations will have far greater impact, making your community, country, and world a better place.

 

Things to consider when making donations

Latest News, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Making donations to charitable organizations can be a very strategic, methodical, and evaluative process. For many, the donations are more than mere “gifts”, they’re actually investments in causes, organizations, needs, and beneficiaries. A key component of the donor-decision process is quality information. When working with our clients on their giving strategies, we advise an analysis of organizations in five functional areas of charitable operations.

Data & Efficiency
Be sure to look at the organization’s finances to determine such things as proper allocation of funds between administration, programs, fundraising, etc. We recommend using Guidestar to review the organization’s 990 provide sufficient data for an initial screening, enabling donors with a good look at financial performance.

Finance & Fund Development
Non-profits have an obligation to act as responsible stewards in managing their financial resources. This includes compliance with financial requirements, sound accounting principles, and fiscal responsibilities. Since non-profits act as the intermediary between donors and beneficiaries, they have an ethical obligation to ensure proper handling of funds to carry out their missions.

Governance
A non-profit’s leadership, represented by its staff and board of directors is responsible for defining the organization’s mission and for providing overall leadership and strategic direction to the organization. Strong boards strive to ensure that their organizations have adequate resources, provide direction for the executive director and key staff and, evaluate their own effectiveness as governing bodies.

Human Resources
The ability of an organization to make effective use of the energy, time and talents of its employees and volunteers is essential to accomplish the organization’s mission. Exercising fair and equitable practices that attract and retain qualified volunteers and employees is just one best practice. Nonprofits have an obligation to adhere to all applicable employment laws and to provide a safe and productive work environment.

Public Information
Non-profits that provide information to prospective donors and other constituents promote informed and responsible philanthropy. This works to their advantage as donors are better able to make decisions when they can learn a nonprofit’s purpose, who governs it, how it manages its financial resources, whom the nonprofit serves, and what progress it has made toward achieving its mission.

Ideally, donors placing their “investments” with organizations are doing so through strong existing relationships. However, whether donors are already engaged with these organizations or have yet to meet their leaders, taking an in-depth look at these five areas will help solidify the receipt, usage, distribution, and recognition of financial contributions.

 

 

Engage children in family philanthropy

Featured, Latest News, , , , , , , , , , , , , , , ,

The future leadership of communities lies in the hands of children. In addition to quality education, philanthropy provides a great tool for childhood and community development.

Involving your children, no matter the age, in philanthropy is a great way to teach values of community, charity and helping your fellow man. In addition to learning from their idols (their parents/family leaders), children can practice goodwill by participating in their family’s giving plan.

A few ways children can serve as “young” philanthropists include:

  • Donating gently used toys, books and clothes to other children who may benefit
  • Redirecting birthday and holiday gifts to other children or organizations
  • Special occasions (such as birthdays, first communions, bar/bat mitzvahs, graduations) which are promoted with invitations and recognized with gifts, can encourage giving contributions to local charities in lieu of gifts
  • Volunteering with family members at local missions, food distribution centers, and special events
  • Participating in youth giving funds or circles

Family volunteering engages children in philanthropy and creates a unique way of spending time together. Ideas and opportunities are limitless and family fun is just one benefit. Subject matter during family meals and on family trips could be around service and community giving. Another idea could even be a volunteer activity on the family’s next vacation.

Involving children in a family’s giving or philanthropic activity can do wonders toward greater family connectivity and communication. Plus, it’ll teach children about appreciation, values, and communal support.

  

 

A developed year-end strategy can result in new donations

Latest News, , , , , , , , , ,

Year-end giving is a rarely utilized tool used by charities to target new donors and raise new revenue. However, it can be an incredible strategy designed in a non-profit’s annual giving plan. Below are benefits associated with a well-developed and orchestrated year-end giving campaign.

Generate new revenue

  • Can be a little or a lot
  • Each non-profit is different – varying sizes, varying needs, varying degrees of public presence, varying depths of constituencies
  • Roughly 40% of all giving comes in during month of December

Expand wide exposure

  • Can be a lot of exposure
  • Local media can play a key role. In most communities, local newspapers, radio stations, and tv networks actively seek ‘feel good’ and ‘community inspiring’ stories
  • Social media creates increasing linkages, particularly through Facebook and Twitter
  • Email marketing is a great tool to engage your existing database of constituents

Add new supporters

  • In the form of new donors and volunteers, a public PR campaign can lure in new batch of supporters
  • Recruits people who were unfamiliar with the organization
  • Gives your development team a great source of new leads to prospect…and they’re not cold calls!
Developing a year-end giving campaign is a smart strategy used by charities seeking to raise new income from current and prospective donors.

 

Organizational analysis could spur immediate opportunity

Featured, Latest News, , , , , , , , , ,

Have you ever conducted a third-party review of the non-profit organization you manage? If you’re a board member, have you ever seen an organizational review of the charitable organization?

You can find suitable ways to review your charity’s financial operations through internet searches. We recommend you take a look at those. We also suggest you consider a unique analytic system we created. It’s called HealthCheck. It closely resembles your own visit to your primary physician, who will conduct a review of your health and provide feedback and make suggestions.

 

HealthCheck is designed to provide research and organizational analysis to help organizations make strategic decisions…and help donors make wise charitable giving decisions.

Benefit to charity leaders…

Board and staff members of nearly every non-profit organization want organizational growth…all want money. Not every organization can hire new staff or add a consultant, but they want expertise and leverage to attract new supporters and help build confidence and relationships with existing donors and volunteers. We created HealthCheck to meet these needs in an affordable and hands-on manner. By doing so, we form an alliance with non-profit leaders, where we essentially work alongside, determining and implementing ways to strengthen the organization.

Benefit to donors…

When donors consider non-profit organizations for their contributions, a number of factors come into play, including the donor’s relationship, belief in the mission, and geographical location. Many times, this isn’t enough information for a prospective donor to render a decision. We created HealthCheck to deliver existing and prospective donors with a resource they can easily locate. Knowledge derived from our 40+ years of non-profit and corporate leadership experience were used to design a research and best practices tool, which gives donors all the information they need and in five key organizational strength indicators.
  

HealthCheck analyzes specific strength indicators, including:

Data & Efficiency – Analyzing IRS Forms 990 to evaluate a non-profit organization’s financial performance in key performance categories. Upon analyzing performance categories, we assign a score as it relates to the organization’s efficiency, capacity, and overall financial health.

Finance & Fund Development – Non-profits have an obligation to act as responsible stewards in managing their financial resources. They must comply with all legal financial requirements and adhere to sound accounting principles that produce reliable financial information, ensure fiscal responsibility and build public trust. In addition, non-profits act as the intermediary between donors and beneficiaries and have an ethical obligation to ensure proper handling of funds to carry out their missions.

Governance – A non-profit’s leadership, represented by its staff and board of directors is responsible for defining the organization’s mission and for providing overall leadership and strategic direction to the organization. Each non-profit board should: ensure that the organization has adequate resources to carry out its mission and provide direction for the executive director and key staff; and evaluate its own effectiveness as a governing body and as representatives of the community in upholding the public interest served by the organization.

Human Resources – The ability of an organization to make effective use of the energy, time and talents of its employees and volunteers is essential to accomplish the organization’s mission. Non-profit organizations should place a high priority on exercising fair and equitable practices that attract and retain qualified volunteers and employees. Nonprofits have an obligation to adhere to all applicable employment laws and to provide a safe and productive work environment.

Public Information – Non-profits that provide information to prospective donors and other constituents promote informed and responsible philanthropy. Donors are better able to make decisions when they can learn a nonprofit’s purpose, who governs it, how it manages its financial resources, whom the nonprofit serves, and what progress it has made toward achieving its mission.

   

Here are the outcomes…

After a very small investment ($45), the process begins with executive staff (or a board exec) honestly responding to sets of specific questions. The process can be relatively short. It will take about 20 minutes to answer online-based questions, then 24 hours for NPcatalyst to conduct research and prepare its findings.

When completed, the organization will be presented with a charity rating score, much like a grade earned on a test. Scores will be earned in the various areas of analysis, accompanied by an overall score. Organizations which seek greater detail may purchase a “best practices guide” to received recommended action items to improve each area of operation. The guide is intended to help the organization raise the rating score to 100.

Donors and prospective contributors enjoy seeing rating scores to accompany the research their conducting on charitable organizations, but also recognize the organization’s desire to diagnose various areas of operation.

 

Click here to indicate your interest to learn more about the unique HealthCheck system or to order the analysis.
 

 

 

Charitable Giving…A Wise Investment

Latest News, , , , , , , , , , , , , , , , , , , , ,

As business leaders, we’re often asked to donate to charity. Whether it’s in the form of personal contributions, direct corporate giving or corporate sponsorship, we receive requests on a regular basis.

Having served the non-profit sector for 25 years, I’m continually involved with corporate giving, either as a business owner or charitable volunteer. I’m frequently asked why businesses are called upon as often as they are. What I’ve grown to understand are two primary reasons:
1. Business leaders have direct access to marketing, advertising and charitable budget line items.
2. Business leaders understand non-profits and, in many cases, serve on non-profit boards.

There are many reasons why corporate leaders invest in charitable organizations. Businesses have an opportunity to make a difference and a dollar. Strong corporations invest in not-for-profit efforts to:

  • recognize and celebrate its corporate values
  • emphasize the importance of ethical business practices
  • provide positive public relations
  • build customer confidence
  • enhance employee morale
  • maintain philanthropic goodwill
  • increase sales leads and transactions
  • strengthen the community
  • And, of course, it’s the right thing to do.

All of this points to responsibility…a responsibility of businesses to increase revenues and a responsibility to help others.

Positioning corporate giving to be effective for both the business and the supported organizations is not a difficult process. It can be easily blended with existing marketing strategies or function separately from existing plans. Regardless of its official capacity within your business, here are suggestions to maximize your corporate giving.

  1. Assess current giving. Take a good, hard look at your past and current giving practices. What percentage of pre-tax profits is allocated for charitable pursuits? Review the organizations, purposes and methods of giving; then evaluate the benefits received. Can you identify a relationship to your corporate mission, marketing plan and staff connections?
  2. Design a strategy. As you plan your giving, consider your charitable budget. Identify the projects, organizations or sectors you wish to support. Determine the benefits, particularly outreach, sales leads, visibility and impact you wish to gain.
  3. Monitor contributions. Maintain relationships with the beneficiaries of your charitable investment to ensure proper delivery of benefits, use of funds and public awareness.
  4. Assess and plan. Evaluate the effectiveness of the giving strategy and its execution. Make changes, design a new strategy, identify new beneficiaries; all are actions you will likely address to strengthen your charitable giving plan.

Corporate leaders recognize the difficulty in giving away money, particularly marked by a lack of information, guidance and tools required to make wise decisions. Being able to identify the best for-profit investments is a hugely valuable talent and a massive industry has grown up around it. Solid nonprofit analysis is just as valuable.

No matter what strategy you use to make your charitable giving decisions, it makes good business sense to ensure effectiveness, both to the beneficiary and your corporation. A properly executed giving program will generate tremendous value through community impact and revenue generation.

Donors have much to consider when supporting charities

Latest News, , , , , , , , , , , , , , , , , , ,

As the calendar year nears its close, well-organized charities will be orchestrating year-end fundraising campaigns. These initiatives are used to fulfill wish lists, meet annual goals, and fund special projects. As these organizations launch these campaigns, it’s important that they understand donor thinking and strategies during this time of year.

During the holidays, typical donors…

  • Respond to public, promotional, emotional appeals
  • Prefer easy access to make a contribution
  • Make donation amounts of their choice
  • Seek well-managed organizations
  • Wish to not be the only donor
  • Want to know how the money will be used
  • Choose to support a well-regarded and/or well-managed organization
  • Expect proper acknowledgement

Saavy donors make informed donation decisions.

Appropriately stated by Charity Navigator, “Smart givers generally don’t give reactively in a knee-jerk fashion. They don’t respond to the first organization that appeals for help. They take the time to identify which causes are most important to their families and they are specific about the change they want to affect.”

Nearly two years ago, NPcatalyst launched a program called HealthCheck, which analyzes charities in five distinct areas of non-profit management and effectiveness. The five areas are:

  • Institutional Data
  • Governance
  • Human Resources
  • Public Information
  • Finance & Fund Development

As the holidays are upon us, non-profit directors should consider what drives donors.

Donors say appeals that put a face to the donation (either human or animal) and remind them to help those who are less fortunate at this time of year, are most persuasive. A few thoughts to consider…

  • Holiday giving is emotional.
  • Donors are thankful for what they have and give to those who need it.
  • Donors tend to give more when the online experience is intimate and emotionally coherent.

Stats to consider about major donors…

  • One-third of donors with $100,000 or more in annual income, indicate all or most of their charitable giving for this year has not  been planned ahead of time.
  • 42 percent of households with over $100,000 in income, said receiving a tax deduction was a significant influence on their giving.

Year-end fundraising campaigns are smart strategies used by well-organized charitable organizations.

 

Click here for a guide designed to help charities orchestrate year-end giving campaigns.

Donors – if you’re looking to create a strategy for giving, contact us.
Charities – if you’re looking to make strong connections with donors, contact us.

Complimentary year-end giving guide

Latest News, , , , , , , , ,

Year-end giving is a rarely utilized weapon used by charities to target new donors and raise new revenue. However, it can be an incredible strategy designed in a non-profit’s annual giving plan.

Click on the graphic below to view a slideshow designed to help charities orchestrate effective year-end funding campaigns.

Featured in the presentation is a list of resources available to each charity. The list includes:

NPcatalyst

  • Works with non-profit organizations to analyze past giving practices and develop fundraising gameplans.
  • Works with donors to develop giving strategies.

HealthCheck

  • Analyzes charities in five distinct areas of operations. Results in a “best practices” guide for improvement. Typically benefits the organization through refreshed marketing and fundraising success.
  • Provides donors with donor-based research information, enabling them to make wise (strategic) donation decisions.

GiftingWishes

  • Provides non-profit organizations with an effective and innovative online giving tool.
  • Gives donors a safe, secure, and trustworthy website to make their online donations.
  • Designing year-end giving campaigns for each charity using GiftingWishes to help raise funds.
  • Completely free of charge.

Year-end giving statistics

Latest News, , , , , , , , , , , ,

It’s the time of year when non-profit organizations need to be conducting fundraising efforts to close the calendar year on positive notes. Year-end giving campaigns are an underutilized tool, which can be used to tap new donor bases and raise new dollars to meet goals, fulfill wish lists, or fund key initiatives.

Below are statistics illustrating the effectiveness and potential value of year-end giving campaigns.

  • More than 174 million adult Americans plan to give money to charity between Thanksgiving and year-end.
  • Between 35 percent to 42 percent of online giving happens in November and December.
  • About 40 percent of online gifts are made in December.
  • Giving in December brings in about 1/3 of the fundraising dollars.
  • More than 20% of all giving for the entire year occurs in the last 48 hours of the calendar year.
  • Online giving happens largely between 9 a.m. and 5 p.m. on weekdays.
  • Online giving (by dollars) on December 31 is concentrated between 10 a.m. and 6 p.m. in each time zone.
  • Donors are projected to give through a variety of channels this holiday season.
 
Orchestrating year-end giving campaigns is a wise strategy used by charities seeking to generate new dollars from existing and prospective donors.
 
Click here for a complimentary guide to year-end giving campaigns.