Engaging donors is vital for building trust and securing future funding for nonprofits. This engagement creates a meaningful relationship beyond mere transactions, making donors feel valued and connected to the cause. By acknowledging their contributions and involving them in the mission, nonprofits foster a sense of community and partnership. This personalized approach deepens trust, showing donors that their support truly makes a difference. As trust grows, so does the likelihood of continued and increased donations. Engaged donors are more likely to become long-term supporters and advocates, spreading awareness and attracting more funding, thus fueling the nonprofit's ability to make a greater impact.

1. Personalized Thank-You Notes: Handwritten notes to express gratitude.
2. Monthly E-Newsletters: Regular updates about your organization's work.
3. Donor Appreciation Events: Special events to honor donors.
4. Impact Reports: Share stories and statistics showing how donations help.
5. Birthday Greetings: Personalized birthday messages to donors.
6. Volunteer Opportunities: Encourage donors to get involved hands-on.
7. Annual Surveys: Get feedback on your organization's performance.
8. Exclusive Webinars: Educational sessions about your mission and impact.
9. Social Media Recognition: Acknowledge and thank donors publicly.
10. Donor Spotlights: Feature donor stories in your newsletters or blog.
11. Interactive Q&A Sessions: Online sessions with your team or beneficiaries.
12. Matching Gift Drives: Encourage donors to participate in matching gift programs.
13. Annual Gala Events: Host a formal event to celebrate achievements.
14. Peer-to-Peer Fundraising Campaigns: Enable donors to fundraise on your behalf.
15. Gift Acknowledgment: Timely and appropriate recognition of donations.
16. Behind-the-Scenes Tours: Offer tours of your facilities or project sites.
17. Networking Events: Opportunities for donors to connect with each other.
18. Personal Calls from Staff or Board Members: A personal touch in expressing gratitude.
19. Feedback Panels: Involve donors in discussions about your organization's direction.
20. Holiday Greetings: Special messages during festive seasons.
21. Online Contests: Engage donors through creative online competitions.
22. Donor Anniversary Acknowledgments: Celebrate their giving anniversary.
23. Special Project Updates: Regular updates about specific projects they support.
24. Small Group Meetings: Intimate gatherings to discuss your work and impact.
25. Youth Engagement Programs: Involve younger donors or family members.
26. Legacy Giving Options: Promote bequests and legacy gifts.
27. Gift Levels Recognition: Acknowledge different levels of giving.
28. Personal Video Messages: Send personalized thank you videos.
29. Artistic Contributions: Invite donors to contribute to a community art project.
30. Themed Fundraising Campaigns: Align with holidays or significant events.
31. Virtual Reality Experiences: Show your work in immersive VR.
32. Educational Workshops: Teach about aspects of your work or mission.
33. Ambassador Programs: Empower donors to represent and promote your cause.
34. Annual Reports: Detailed reports on achievements and financials.
35. Storytelling Evenings: Share powerful stories related to your mission.
36. Cultural Events: Organize events celebrating diverse cultures.
37. Community Service Days: Involve donors in community service.
38. Donor Focus Groups: Discuss new ideas or projects.
39. Exclusive Previews: Early access to new initiatives or campaigns.
40. Sponsorship Opportunities: Offer options for event or project sponsorship.
41. Volunteer Recognition Events: Honor both volunteers and donors.
42. Collaborative Project Opportunities: Work together on specific projects.
43. Family-Friendly Events: Engage donors' families in your mission.
44. Special Edition Merchandise: Offer exclusive items as a token of appreciation.
45. Donor Wall of Fame: Create a physical or virtual wall to recognize donors.
46. Field Visits: Organize trips to see the impact of their donations firsthand.
47. Challenge Events: Host or participate in challenge events like marathons.
48. Memorial or Tribute Gifts: Facilitate gifts in honor or memory of loved ones.
49. Thank-You Calls: Phone calls to express gratitude directly.
50. Interactive Workshops: Involve donors in hands-on learning experiences.
51. Planned Giving Seminars: Educate about the benefits of planned giving.
52. Annual Picnics or BBQs: Casual events for donors and their families.
53. Public Speaking Opportunities: Invite donors to speak about their support.
54. Referral Programs: Encourage donors to refer friends or colleagues.
55. Partner Discounts: Offer discounts from businesses that support your cause.
56. Book Clubs: Organize book discussions related to your cause.
57. Donor-Only Content: Exclusive access to special content or information.
58. Thought Leadership Articles: Share insights and stories from your leadership.
59. Creative Arts Showcases: Display art related to your cause.
60. Live Performances: Host or sponsor concerts or plays.
61. Interactive Art Installations: Engage donors with immersive art experiences.
62. Health and Wellness Programs: Offer activities focused on well-being.
63. Photo Competitions: Related to your cause or community work.
64. Documentary Screenings: Show films related to your mission.
65. International Awareness Days: Participate in global initiatives.
66. Alumni Events: Engage past beneficiaries or long-term supporters.
67. Coffee Meetups: Casual meetings with staff or beneficiaries.
68. Recipe Books or Calendars: Create themed items for sale or distribution.
69. Local Business Partnerships: Collaborate with businesses for events or promotions.
70. Guided Meditation or Yoga Sessions: Focus on mental health and well-being.
71. Cooking Classes or Demos: Especially if related to your cause.
72. Youth Ambassador Programs: Engage younger generations in your mission.
73. Podcasts: Create or participate in podcasts relevant to your work.
74. Art Therapy Sessions: Use art as a tool for engagement and awareness.
75. Book or Toy Drives: Especially around holidays or for specific projects.
76. Travel Opportunities: Organize trips that align with your mission.
77. Seasonal Decorating Contests: Engage creativity around holidays.
78. Gardening or Environmental Projects: Focus on sustainability.
79. Pet-Friendly Events: If applicable, involve donors' pets.
80. Sports Tournaments: Organize or participate in sports events.
81. Cook-Offs or Baking Contests: Friendly competitions among supporters.
82. Fashion Shows: Especially if related to your cause or message.
83. Expert Panels: Discuss relevant topics with experts.
84. Cultural Exchange Programs: Promote understanding and diversity.
85. Film Making Projects: Involve donors in creating content.
86. Book or Music Releases: Related to your cause or mission.
87. Public Art Projects: Engage the community in public art initiatives.
88. Lectures or Talks: Educational events on topics related to your mission.
89. Cycling or Hiking Groups: Promote health and engagement.
90. Language Classes: Especially if related to the communities you serve.
91. Trivia Nights: Fun and educational events.
92. Guest Blogging Opportunities: Invite donors to contribute to your blog.
93. Dance or Movement Workshops: Explore different forms of expression.
94. Adventure or Exploration Trips: Unique experiences related to your cause.
95. Seed or Plant Swaps: Focus on environmental sustainability.
96. Cultural Cooking Classes: Explore different cuisines and cultures.
97. Upcycling or DIY Projects: Promote creativity and sustainability.
98. Film or Music Production: Involve donors in artistic productions.
99. Virtual Reality Tours: Innovative ways to showcase your work.
100. End-of-Year Celebration Event: Celebrate achievements and thank donors.

Many people wonder if they could afford to hire a nonprofit performance consultant. Our answer is simple in many cases: you can't afford not to. Do you want to be the best leader possible? Do you need an extra pair of hands? Do you need temporary support? Do you want to spend all of your energy working toward you mission? Would you like to improve in areas where you feel you face more challenges? These are all good reasons to hire a consultant.

Running a nonprofit organization requires expertise across various domains, and sometimes seeking assistance from a nonprofit consultant becomes essential. However, understanding the costs involved in hiring a nonprofit consultant can be challenging. In this blog post, we will explore the typical costs associated with different services offered by nonprofit consultants, whether it's fundraising coaching, event management, strategic planning, or other essential areas.

Fundraising Coaching:
Fundraising coaching typically involves guiding nonprofits in developing effective fundraising strategies, donor cultivation, and campaign planning. Costs for fundraising coaching can vary depending on the experience and reputation of the consultant. On average, expect to pay a flat fee of $1,500 to $5,000 per month or an hourly rate ranging from $100 to $350.

Special Events Management:
For managing special events such as galas, auctions, or benefit concerts, nonprofit consultants can assist with planning, logistics, and execution. Flat fees for special events management can range from $3,000 to $10,000, while an hourly rate may fall between $75 and $250.

Marketing Communications:
Nonprofit consultants can help develop marketing strategies, branding initiatives, and communication plans to increase visibility and engagement. Typical costs for marketing communications range from $2,000 to $8,000 per month as a flat fee, or an hourly rate of $75 to $300.

Website Development:
When hiring a nonprofit consultant for website development, costs can vary depending on the complexity of the website, desired features, and customization requirements. Typically, consultants charge a flat fee ranging from $3,000 to $25,000 or more, depending on the scope of the project and ongoing maintenance needs.

Fundraising Appeal Writing:
Crafting compelling fundraising appeals requires expertise in storytelling and persuasive writing. The costs for fundraising appeal writing can be estimated at $500 to $2,500 per appeal, depending on the complexity and length. Performance based bonuses including percentage-based commissions, tiered incentives, or discretionary bonuses based on overall fundraising success may be part of the contract.

Capital Campaign Management:
Capital campaigns involve significant fundraising efforts for large-scale projects. Nonprofit consultants overseeing capital campaigns usually charge a percentage of the funds raised, typically ranging from 5% to 10%. Performance based bonuses including percentage-based commissions, tiered incentives, or discretionary bonuses based on overall fundraising success may be part of the contract.

Grantwriting:
Grantwriting involves researching, preparing, and submitting grant proposals to secure funding from foundations and grant-making organizations. Consultants may charge a flat fee per grant proposal, ranging from $1,000 to $5,000, or an hourly rate between $75 and $150. Performance based bonuses including percentage-based commissions, tiered incentives, or discretionary bonuses based on overall fundraising success may be part of the contract.

501c3 Formation:
For organizations seeking assistance in forming a 501c3 nonprofit status, consultants can help with legal and administrative processes. Flat fees for 501c3 formation services can range from $2,000 to $10,000, depending on the complexity of the organization.

General Nonprofit Administration Consulting:
Consultants providing general nonprofit administration guidance offer expertise in governance, policies, procedures, and organizational structure. Costs for general nonprofit administration consulting may range from $100 to $400 per hour, or a flat fee based on the scope and duration of the project.

Strategic Planning:
Strategic planning consultants assist in developing long-term goals, objectives, and strategies for nonprofits. Costs for strategic planning services can vary widely, depending on the organization's size and complexity. Expect flat fees in the range of $5,000 to $20,000 or hourly rates between $150 and $500.

Human Resources Management:
Nonprofit consultants specializing in human resources can provide guidance on recruitment, performance management, policies, and compliance. Costs for HR management consulting may range from $100 to $300 per hour, or a flat fee based on the scope of work.

Outsourced Bookkeeping:
Outsourcing bookkeeping services to a nonprofit consultant can streamline financial management and ensure accurate record-keeping. Costs for outsourced bookkeeping services vary based on the size and complexity of the organization's finances. Typically, consultants charge an hourly rate ranging from $50 to $300 or offer a monthly flat fee starting from $500 to $2,500, depending on the volume of transactions and reporting requirements.

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It's important to note that these cost ranges are approximate and can vary based on factors such as the consultant's experience, geographic location, and the specific needs of your nonprofit organization.

​When considering hiring a nonprofit consultant, it's crucial to discuss pricing structures, deliverables, and expected outcomes to ensure a clear understanding of the services provided and associated costs.

A cheaper hourly rate consultant may not always be the best decision. Take for example an inexperienced grantwriter who charges $50 per hour may end up billing you for 40 hours ($2,000) for something an experienced writer, charging $200 per hour, may be able to accomplish in 10 hours of work ($2,000) with a higher quality output and fewer errors.
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Remember, investing in the expertise of a nonprofit consultant can yield significant benefits by improving efficiency, increasing revenue, and enhancing overall organizational effectiveness. Carefully evaluating the costs and aligning them with your nonprofit's budget and goals will help you make an informed decision and maximize the impact of the services provided by a nonprofit consultant.

Fundraising is a vital aspect of nonprofit organizations, providing the necessary financial resources to support their mission and programs. Nonprofit leaders play a crucial role in driving successful fundraising efforts. To effectively navigate the complex and competitive landscape of fundraising, nonprofit leaders must possess a diverse set of skills. In this blog post, we will explore the key skills that nonprofit leaders need to succeed in fundraising and make a lasting impact on their organizations.

1. Relationship Building:
One of the fundamental skills that nonprofit leaders need for successful fundraising is the ability to build and nurture relationships. Building strong relationships with donors, supporters, and stakeholders is crucial for cultivating trust, loyalty, and long-term engagement. Effective leaders invest time in getting to know their donors personally, understanding their motivations, and tailoring their fundraising strategies accordingly. They prioritize building genuine connections based on shared values and a common vision.

2. Communication and Storytelling:
Effective communication is at the heart of successful fundraising. Nonprofit leaders must possess exceptional communication skills to convey their organization's mission, impact, and financial needs to potential donors and supporters. They should be able to craft compelling stories that evoke emotions and inspire action. By effectively communicating the importance of their cause and the impact of donor contributions, nonprofit leaders can create a sense of urgency and motivate individuals to support their organization financially.

3. Strategic Thinking:
Fundraising requires strategic thinking and planning. Nonprofit leaders must be able to analyze the funding landscape, identify potential funding sources, and develop comprehensive fundraising strategies aligned with their organization's goals. They should be capable of identifying opportunities, anticipating challenges, and adapting their strategies to changing circumstances. Strategic thinking involves setting realistic fundraising targets, developing action plans, and evaluating the effectiveness of different fundraising initiatives.

4. Financial Management:
A solid understanding of financial management is essential for nonprofit leaders involved in fundraising. They need to be knowledgeable about budgeting, forecasting, and financial reporting to ensure transparency and accountability to donors. Nonprofit leaders should have the ability to create and manage budgets, track financial performance, and demonstrate responsible stewardship of funds. By showcasing sound financial management practices, nonprofit leaders can instill confidence in potential donors and strengthen their fundraising efforts.

5. Networking and Collaboration:
Nonprofit leaders need strong networking and collaboration skills to expand their reach and access a wider donor base. Building relationships with individuals, businesses, foundations, and other nonprofit organizations can lead to strategic partnerships, shared resources, and collaborative fundraising opportunities. Effective leaders actively engage in networking events, conferences, and community gatherings to establish connections and foster mutually beneficial relationships. By leveraging these networks and collaborations, nonprofit leaders can enhance their fundraising efforts and create a larger impact.

6. Data Analysis and Evaluation:
Nonprofit leaders must have the ability to analyze data and evaluate the success of their fundraising strategies. They should be comfortable working with fundraising software and tools to track donor contributions, measure campaign effectiveness, and identify trends and patterns. By leveraging data-driven insights, nonprofit leaders can make informed decisions, refine their fundraising approaches, and optimize their efforts for better results.

Fundraising is a critical aspect of nonprofit leadership, and mastering the necessary skills is key to achieving success. Nonprofit leaders who possess strong relationship building, communication, strategic thinking, financial management, networking, and data analysis skills are better equipped to navigate the challenges of fundraising. By continuously honing these skills, nonprofit leaders can inspire donors, mobilize resources, and make a significant impact on their organizations and the communities they serve.

Hiring a contractor or consultant to perform work for your company or organization could result in significant cost savings while also providing a high level of expertise you may not be able to afford otherwise. The cost savings associated with hiring a consultant versus a permanent staff member can vary depending on several factors such as the level of expertise required, the length of the project, and the specific scope of work. Here are some potential cost savings that organizations may experience by hiring a consultant rather than a permanent staff member:

Lower Overhead Costs:

1. When an organization hires a permanent staff member, it incurs various overhead costs such as salaries, benefits, office space, equipment, and training. These costs can be significantly higher than hiring a consultant who typically works offsite and uses their own equipment.
2. Consultants are typically self-employed and are not entitled to employee benefits such as health insurance, retirement plans, paid time off, or other perks that permanent staff members may receive. This can result in significant cost savings for organizations that would otherwise have to pay for these benefits. 
3. When an organization hires a permanent staff member, they are responsible for paying certain payroll taxes such as Social Security and Medicare taxes, unemployment taxes, and workers' compensation insurance. These costs can add up and increase the overall cost of hiring a permanent staff member. In contrast, consultants are responsible for paying their own taxes, which can result in savings for the organization.
4. Consultants typically handle their own administrative tasks such as invoicing, record-keeping, and other administrative duties. This can reduce the administrative burden on the organization and result in cost savings.

Reduced Hiring Costs:

1. The process of hiring a permanent staff member can be costly and time-consuming, including advertising the position, conducting interviews, and performing background checks. Hiring a consultant eliminates many of these costs and streamlines the process, allowing organizations to focus on their core business activities.
2. A consultant typically has specialized expertise and experience in a specific area, which may be more cost-effective than hiring a permanent staff member with similar expertise. This is particularly true for short-term projects or specialized tasks that do not require a full-time staff member. With their expertise, consultants are usually senior-level leaders who you would likely be unable to afford to hire in a full-time, in-house position.
3. Consultants can be hired on a short-term or as-needed basis, providing organizations with greater flexibility in terms of budget and staffing needs. In contrast, hiring a permanent staff member requires a long-term commitment and may not be feasible for organizations with limited budgets or fluctuating staffing needs.

Hiring a consultant instead of a permanent staff member can provide significant cost savings for organizations, particularly for short-term or specialized projects. However, it is important to carefully evaluate the costs and benefits of each option before making a decision.

As a nonprofit organization, you may be familiar with the concept of tax-exempt status. However, it's important to understand that there are some types of income that are not exempt from taxes, known as unrelated business income (UBI) tax.

• According to the National Council of Nonprofits, about 30% of nonprofits have unrelated business income.
• A survey conducted by the Nonprofit Finance Fund found that 11% of nonprofits reported paying UBIT in 2018.
• The total revenue generated by UBIT for nonprofits was $9.9 billion in 2016, according to the Urban Institute.
• The number of Form 990-T tax returns filed by exempt organizations has been increasing steadily over the past decade, with a total of 45,408 returns filed in 2018.
• The most common source of UBIT for nonprofits is rental income from real estate that is not used for the organization's exempt purpose.

It's important to note that the rules and regulations around UBIT can be complex and vary depending on the specific circumstances of each organization. Nonprofits that are unsure about their obligations when it comes to UBIT should consult with a tax professional or legal counsel to ensure compliance with tax regulations.

What is Unrelated Business Income Tax?
Unrelated business income tax is a tax on income that is earned by a nonprofit organization through a trade or business that is not related to the organization's primary exempt purpose. The purpose of this tax is to prevent nonprofit organizations from using their tax-exempt status to gain an unfair advantage over for-profit businesses.
Examples of Unrelated Business Income

Here are fifteen types of income that may qualify as unrelated business income: 

1. Income from a gift shop or merchandise sales that are not related to the nonprofit's mission or purpose.
2. Advertising income from a publication that is not related to the nonprofit's mission or purpose.
3. Rental income from real estate that is not used for the nonprofit's mission or purpose.
4. Income from consulting or professional services that are not related to the nonprofit's mission or purpose.
5. Income from selling or licensing intellectual property that is not related to the nonprofit's mission or purpose.
6. Fees charged for access to a facility that is not related to the nonprofit's mission or purpose.
7. Income from a fundraising event that is not related to the nonprofit's mission or purpose.
8. Royalties from the sale of products or services that are not related to the nonprofit's mission or purpose.
9. Rental income from equipment that is not related to the nonprofit's mission or purpose.
10. Income from a joint venture or partnership that is not related to the nonprofit's mission or purpose.
11. Income from a subsidiary or affiliate that is engaged in unrelated business activity.
12. Fees charged for access to a research database or other resource that is not related to the nonprofit's mission or purpose.
13. Income from an investment in a business that is not related to the nonprofit's mission or purpose.
14. Income from a lottery or raffle that is not related to the nonprofit's mission or purpose.
15. Income from a catering or food service operation that is not related to the nonprofit's mission or purpose.

Reporting Unrelated Business Income Tax
Nonprofit organizations that earn unrelated business income are required to report it on Form 990-T, also known as the Exempt Organization Business Income Tax Return. The organization must file this form if it has gross income of $1,000 or more from unrelated business activities.

In addition to reporting the income, the organization must also calculate and pay any taxes owed on this income. The tax rate for unrelated business income varies depending on the amount of income earned, but it generally ranges from 21% to 28%.

It's important for nonprofit organizations to understand their obligations when it comes to unrelated business income tax. Failing to report or pay taxes on unrelated business income can result in penalties and potential loss of tax-exempt status.


Consequences of Not Reporting UBI
If a nonprofit fails to file Form 990-T to report their unrelated business income tax (UBIT), they may face penalties and potential loss of tax-exempt status.

The penalty for failing to file Form 990-T is $20 per day, up to a maximum of $10,000 or 5% of the organization's gross receipts, whichever is less. Additionally, if the IRS determines that the failure to file was willful, the penalty increases to $1,000 per day, up to a maximum of $50,000.

In addition to penalties, failing to report UBIT can also jeopardize a nonprofit's tax-exempt status. If the IRS determines that a nonprofit is engaged in a substantial amount of unrelated business activity and has not reported it, the organization may lose its tax-exempt status.


Unrelated business income tax can be a complex topic for nonprofit organizations to navigate, but it's an important aspect of maintaining tax-exempt status and ensuring compliance with tax regulations. By understanding what types of income qualify as unrelated business income and how to report it, nonprofit organizations can protect their tax-exempt status and continue to serve their communities in a financially responsible manner.

Choosing the right bank for a nonprofit organization is a crucial decision that can have a significant impact on the organization's financial stability and ability to achieve its mission. 

Nonprofit organizations may face several unique challenges when it comes to banking, such as difficulty accessing loans or lines of credit, limited options for fee-free banking, and the need to manage donor funds and maintain transparency and accountability. Additionally, nonprofit organizations often have fluctuating cash flows, which can make it challenging to maintain consistent account balances and avoid overdraft fees.
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With so many banks and financial institutions to choose from, it can be challenging to know where to start. In this blog post, we'll explore the key factors that nonprofits should consider when selecting a bank.

1. Mission Alignment
The first and most critical factor to consider when selecting a bank for a nonprofit organization is mission alignment. The bank should share the nonprofit's values and mission, and be committed to supporting the organization's work. Nonprofits should look for banks that have a history of working with nonprofit organizations and have a track record of supporting causes that align with their mission. Because of the unique challenges related to banking for nonprofits, you will want to have a bank that has experience working with nonprofit entities.

2. Fees and Costs
Nonprofits should be mindful of the fees and costs associated with banking services. Banks typically charge fees for various services, such as account maintenance, wire transfers, and ATM usage. These fees can add up quickly and eat into the organization's budget. Nonprofits should look for a bank that offers low or no-cost banking services or provides discounts for nonprofit organizations.

3. Accessibility and Convenience
Accessibility and convenience are also critical factors to consider when selecting a bank for a nonprofit organization. Nonprofits should look for a bank that has a convenient location and offers online banking services, mobile banking, and payment processing. This will make it easier for the organization to manage its finances and access its funds when needed. If your nonprofit operates outside of your headquarters state, make sure executives can access the banking services from anywhere.

4. Customer Service
Customer service is another essential factor to consider when selecting a bank for a nonprofit organization. Nonprofits should look for a bank that provides excellent customer service and is responsive to their needs. The bank should have a dedicated team that specializes in working with nonprofit organizations and understands the unique challenges they face. Consider the availability of customer service representatives and the responsiveness of the bank's support team.

5. Security and Fraud Protection
Security and fraud protection are critical considerations for any organization, but they are especially important for nonprofits. Nonprofits should look for a bank that offers robust security features, such as two-factor authentication and fraud prevention tools. The bank should also have a system in place for quickly detecting and addressing any fraudulent activity. Ensure that the bank has robust security measures in place to protect your funds and investments from fraud or cyberattacks. Ask about their policies for data protection, encryption, and fraud prevention. Of course, you will also need to verify that the bank is FDIC insured, which means that your funds are protected up to $250,000 in case the bank fails.

6. Interest Rates and Investment Opportunities
Nonprofits should consider the interest rates and investment opportunities offered by the bank. Nonprofits should look for a bank that offers competitive interest rates on its deposit accounts and provides investment opportunities that align with the organization's financial goals.

7. Reputation
It's important to choose a bank with a good reputation and a history of stability and reliability. Look for a bank with positive reviews and feedback from other nonprofits or businesses, and consider their track record of financial performance.

Conduct due diligence and research potential banks thoroughly before making a decision. This can include reading reviews and ratings, comparing fees and services, and asking for recommendations from other nonprofits or trusted advisors.

Selecting the right bank for a nonprofit organization requires careful consideration of several factors. Nonprofits should look for a bank that shares their values and mission, offers low or no-cost banking services, is accessible and convenient, provides excellent customer service, has robust security and fraud protection measures in place, and offers competitive interest rates and investment opportunities. By taking these factors into account, nonprofits can find a banking partner that will help them achieve their financial goals and further their mission.

One of the considerations that comes up when you decide to participate in charitable giving is the topic of anonymity. Depending on the type of person you are and the effects you are looking for, giving anonymously may seem like the way to go rather than making your donations well-known to everyone. There’s arguments for each side and ultimately, the decision is up to you. Before making your next philanthropic move, weigh the advantages and disadvantages of giving anonymously and publicly. 
Giving Anonymously
​There are plenty of factors that go into making the decision to be anonymous in your giving. These can include your background, the organization you are supporting, etc. Here are the advantages and disadvantages associated with giving anonymously:

Disadvantages

• Giving anonymously keeps you from being recognized for your work. 
• This could keep you from being part of the decision making process when funds are distributed within the organization.
• Your motives for giving may be questioned under some circumstances.

Advantages 

• The focus is kept on the organization rather than the individual donor.
• You will not be overwhelmed with requests from other organizations for donations.
• You can keep the causes you support private if they are ones that would cause controversy among people in your life.
• Your name is kept out of the public eye which can be beneficial for  privacy.

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​Giving Publicly
Disadvantages

• People have insight into your financial ability which can be dangerous in some situations.
• You may be expected to give the same amount consistently which could stretch your limits. 
• When certain philanthropic issues rotate into the media cycle, people will look to you for action and you may be expected to donate to all types of causes. 

Advantages

• Making your charitable contributions known can inspire others to donate. 
• You can build a good reputation within your community. 
• You don’t have to be secretive about organizations you are actively involved with financially which allows you to talk about your passions to others. 
• GIving publicly helps you open up more opportunities for discovering similar organizations to contribute to. 

Public donations are preferred by many organizations and offer them more opportunities and benefits than you may realize. For example, the more donors they are able to publicly include on their list, the more likely they are able to grow their work with the community. Not only does your donation help fund their projects, you name attached to a charitable gift can be used to help elevate fundraising efforts, create compelling stories, and help the organization build a relationship with you as a donor. 

​The COVID-19 pandemic and the need for social distancing have changed pretty much everything about how we live and work, and for nonprofit organizers, even the way you fundraise has changed. Fundraising and fostering donors used to be a social job, one that required lots of face-to-face interaction with donors at special events. 

No longer able to engage donors in person, fundraisers everywhere are discovering new ways to keep donations coming and keep their donors invested in their cause. Here, we’re sharing 10 of the easiest, most creative, and most effective ways to engage your nonprofit donors virtually. 

10. Share a Message From The Top
Nonprofit leaders and executives have difficult, time-consuming jobs, requiring them to be excellent delegators as well as leaders. Because of this, not all nonprofit leaders manage to personally thank or reach out to donors, or only make appearances on occasion for important moments. Now, with uncertainty and confusing consuming everyone’s lives, sharing a message from the top of your organization can help to put your donor’s minds at ease. 

Recruit organization executives to share their take on the current state of the world, to offer words of advice or encouragement to donors and followers in the form of a letter or email, or to make a short video thanking everyone for their continued support through difficult times. Showing that the individuals at the top of your organization are paying attention to what the world and their donors are experiencing will help maintain active volunteer and donor active engagement in your cause. 

9. Organize a Webinar
Was your organization planning to host special events, courses, seminars, or other events in 2020? Do you already have speakers, presenters, and panelists lined up and on the schedule? Have you already sold or handed out tickets to the event? Don’t worry about your hard work being for nothing just yet; pivot your event and create a webinar where you can virtually host presentations, panel discussions, interviews, and much more. 

8. Send a Weekly E-Newsletter
With so much uncertainty in the world, it’s nice to have something you can depend on, which is why you should start sending a weekly e-newsletter to your donors. Keeping donors in the loop will not only help to remind current donors that your organization still exists and is doing good work, but can also help you to retain donors that may be unable to donate during the pandemic, encouraging them to come back and donate once they are able.

7. Create an Online Fundraising Campaign
If you have never tried fundraising online, this is the perfect moment to give it a go! There are tons of ways to set up fundraising campaigns online, most of which are so easy you can do so in just minutes. Some social media platforms now include built-in fundraising tools where followers can donate with the click of a button. You can choose a dedicated fundraising site like GoFundMe. You could even organize a simple campaign using PayPal or Venmo to collect donations. 

6. Start a YouTube Channel
Like an e-newsletter, creating a weekly YouTube video to update donors and followers about what your organization is up to during the pandemic. If donations made by your supporters go to physical goods, create a short video showing the attaining and gathering of the items paid for with donor support. If donations go to providing community services, show your donors what facilities they contribute to or how those services are accessed by the community. Anything you might share in a newsletter can easily be shown in a video, and can help you to reach a wider range of donors. 

5. Call Your Donors Personally
While you can’t meet face to face with your donors to thank them for their support, you can still reach out to them one-on-one over the phone. Personally calling and thanking donors is a great way to show them that their donation makes an impact, and will help them to feel appreciated by your organization. Even if no one picks up, a quick message personally thanking them could be the thing that brightens their day and reminds them to donate again. 

4. Host a Live Q&A
Social media platforms like Instagram and Facebook have ‘live’ functions, which allow users to stream themselves to their followers in real-time. For nonprofit organizations, this can be a great way to boost donor engagement, and answer some commonly asked questions in front of a sizable audience. 

Share with your followers a few days beforehand that someone will be hosting a live Q&A from your organization, and keep reminding them up until the time you go live. Stick around for at least half an hour and encourage followers that tune in to ask questions and engage in the chat. 

3. Post On Social Media
Using social media to raise awareness for nonprofit organizations is nothing new, but now, with mandated social distancing in place for the foreseeable future, social media will become your main way of communicating with your donors. Regularly posting to all your social media accounts and keeping your content consistent across platforms is super important for remaining at the top of your donor’s feeds, since everyone else is at home and working hard to boost their social media presence too! Consistency is key. 

2. Collaborate with Other Nonprofits 
Collaborating with another nonprofit involved in the same cause as your organization to post promotional or educational material on social media is a great way to expand your audience, and show that your organization has good relationships with other respected nonprofits. Cross-promote events, share each other’s posts, be active in the comments section, and do your best to highlight the best parts of each of your work. 

1. Share Important News
Right now, everyone could use a little good news, which is exactly why you should be sharing every positive event with your donors. When important or exciting events or milestones are reached by your nonprofit, shout it from the rooftops - or at least on your social media. Share success stories, good news from the community, exciting or positive news relating to your cause, and more.

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Some nonprofit organizers make the mistake of believing that their work with donors is done once they have received donations, but in truth, the work of fostering relationships with and connecting with donors is never complete. The first donation should be the first of many, and if you have put in the time and effort to cultivating close relationships with your donors, this will happen naturally. 

One of the best ways to create relationships with donors and to keep them interested in your organization is by regularly keeping in contact, and the easiest way to do this is through an e-newsletter. E-newsletters can be sent via email or text, and can be displayed on your website for visitors to peruse. The newsletter format helps to keep donors informed of the goings-on of your organization, and acts as a gentle reminder that you are still out there and doing work that needs to be funded. 

Sending donors and supporters of your organization regular information regarding your nonprofit’s progress and work is also a good way to build trust, since your e-newsletter is the perfect place to demonstrate good stewardship. 

What To Include In Your Newsletter

Whether you have written hundreds of newsletters, or are reading this as your first step to creating an e-newsletter for your nonprofit, the most important thing to remember is to include only information and stories your donors would be interested in. Magazines curate articles and content based on what their readers are interested in, which is why you don’t see much fashion in Bassmaster and you don’t often find mention of river safety in US Weekly. 

Like entertainment publications, you should be sticking to the content your donors want to see, like success stories from people, organizations, or communities that have benefited from your work. Donors like to see the impact of their donations, and including success stories in your e-newsletters is a great way to do just that. 

Other content that can help you to build your donor network and keep individuals engaged could include information on upcoming events, project and program updates, information on relevant news and current events, and information on how donors can volunteer, donate, and help. 

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Despite the fact that fundraising is key to the success of most nonprofit organizations, individuals doing nonprofit work often struggle with how to approach the task of actually asking for donations. Many fundraisers feel fearful of seeming too “salesy,” or in other words, they worry about feeling like they are guilt-tripping people into donating to their cause. This fear prevents many incredible organizations from gaining sufficient donor support, all because their organizers and volunteers are too afraid of turning into “salespeople”. 

Here’s the problem: technically, fundraisers are doing what salespeople do every day. Just like for-profit sales involves “selling a product” nonprofit work involves “promoting a cause”. Though nonprofit donors don’t usually walk away with a physical product, your job as a fundraiser is to convince them to buy into your cause. It’s sales!

Despite not wanting to seem salesy, fundraisers and nonprofit volunteers often fall into the trap of expecting donations rather than putting in the time and effort to build relationships with potential donors. Salespeople work to relate to their leads, to find common ground, and to grab their attention by offering them something they are already looking for. You don’t see salespeople grabbing people off the street, their customers come to them. 

As a fundraiser, you need to be prepared to meet people where they are, rather than simply expecting them to hand over their hard-earned money to a cause just because donating to charitable causes is the right thing to do. You need to be ready to use stories and conversations to engage people in the issues, which is exactly what salespeople are doing when they talk to customers about their needs and wants in a product or service. 

Back in the day, work as a fundraiser was largely about shining the light on yourself and your organization. Fundraisers were able to monologue in order to gain donations and support, but that was before people had the kind of access to information we have been afforded in the age of the Internet. 

Now, people know what they want and are able to learn about the causes they care about independently of nonprofit organizations. It is no longer about you, but instead about listening to what it is your potential donors care about. Instead of saying “you should donate because”, or “our organization is incredible and therefore you should donate”, change the narrative to be more donor-centered. 

Instead of a physical product, you are selling your donors assurance that their money is going to something they care about. You should be asking them which causes they care about, then tailoring your approach to appeal directly to those donors that are most likely to empathize with your cause. Basically, you need to stop going after donors who you know nothing about and start focusing on networking to connect with people who will resonate with the work being done by your organization. 

The Sales Funnel for Nonprofits

The “sales funnel” is simply the name given to the order of operations/tasks required to make a sale. In the business world, there are a few schools of thought regarding how many steps there are in the funnel, but here, we’ll focus on the four that are most pertinent to nonprofit fundraising. 

1. Awareness

The first step of the “sales funnel” is to cultivate awareness for your brand or organization. This step could also be called the “leads” or the “prospecting” phase, since it is all about finding those potential donors. Here is where we see many old-school nonprofits fall short, since their awareness/prospecting phase usually involves more broadcasting than networking. 

In order to find donors that will not only donate once but will become permanent supporters of your organization, it is important to dedicate the awareness phase to connecting with people who share a common interest in causes you support. 


2. Interest

Once you have generated leads, the next step is to follow-up and to build a relationship with prospective donors. Like salespeople talk to their leads about their specific needs in a product or service, fundraisers talk to their donors about how they can secure their donation. This phase is all about taking the interest you piqued at the first meeting and converting it into an intent to engage.


3. Decision

In the nonprofit sector, this phase might more accurately be described as the “asking” phase, since this period is all about getting down to the nitty-gritty and actively asking prospects if they will be willing to commit to making a donation. In sales, this phase is where the salesperson offers the final price and waits for the customer to decide. 

At this point, you’ll already have built a solid relationship with your prospective donors, so asking for donations won’t feel like you are pressuring or goading anyone into doing something they don’t want to do. Like in sales, the transaction is mutually beneficial, so practice asking for donations with confidence. 


4. Stewardship

In business, the final step of the sales funnel is “sale”, but because nonprofit “sales” are about creating long-term donor relationships, stewardship is a far more appropriate descriptor. Once your donor has made their first contribution, your final step is to maintain a relationship and an open dialogue to encourage them to donate again in the future. 

If you enjoyed this guide, and want to learn more about fundraising and building relationships with donors, visit Blackbird Philanthropy Advisors and check out our blog. ​

As nonprofit leaders, you’re facing unprecedented times in managing your workforce while also trying to maintain the level of quality in community services you’ve provided before the COVID19 crisis.

Last Friday, the $2 trillion federal stimulus package "CARES Act" passed that could offer direct relief for your organization.

I am writing to provide a summary for you of strategic options to consider as you wade through the health and economic crisis.

Under the CARES Act, unemployment benefits are confirmed upon application AND benefits are upped an additional $600/week (bringing total benefit to $800-$900/wk).

If you think it’s inevitable that you may eventually have to lay off workers soon, it might make more sense to lay off your staff immediately to unlock this program's benefits. Do the math, see if this makes sense for your team members and your operations. This program is here to help you get through this.

The CARES Act also provides up to $10,000 advance for payroll expenditures (this is called an Emergency Economic Injury Disaster Loan, approved within three days of application). If you then plan to “rehire” May 1, you could use this loan to help get you through the month of May. Then by June, it’s likely (fingers crossed) the quarantine will be over and you can fully re-open to meet client needs. This is really more like a grant, it does not need to be repaid.

This route might be able to get you through at least one month of payroll and then some payroll relief for the month of May. Something to talk to your financial advisors about, every organization is unique and requires a unique strategy.


ADDITIONAL CARES ACT BENEFITS FOR NONPROFITS 

• HALF OFF UNEMPLOYMENT INSURANCE: The CARES Act will reimburse you up to 50% for unemployment insurance costs through the end of 2020.

 

• FUNDRAISING INCENTIVE: Lifted the limit from 60% gross adjusted income to 100% for those who itemized donations. This very plainly means, an individual earning $100,000/year can deduct up to $100,000 in 2020. For businesses, the limitations were upped from 10% to 25% of taxable income. (Donor-advised fund gifts are excluded.)

 

• OPERATIONS LOANS AVAILABLE: Nonprofits (up to 500 employees) can borrow 2.5x monthly payroll expenses up to $10 million to cover payroll expenses, rent and utilities, and interest on mortgage and debt obligations. These “Paycheck Protection” loans must be repaid, but annual fees, collateral requirements, and prepayment penalties are waived and the interest rates are capped at 4%. Additionally, this program offers up to 8-weeks of loan forgiveness options, so long as you maintain your payroll. 

 

• FREELANCERS/CONTRACTORS COVERED: The CARES Act also provides benefits for contractual workers and freelancers, so please reach out to them as well to let them know they’re able to apply for a month of unemployment benefits for the first time ever in history.

 

• EMPLOYEE RETENTION CREDITS: If you prove revenue was down 50% or more March 31 through 2020, you may qualify for a $5,000 payroll credit per employee for keeping staff on. This may be a good option for nonprofits that choose to maintain all existing operations and who do not apply for operations loans.

If you haven’t done so already, reach out to your legal and financial counsel as soon as you can to determine what the best options are for your organization. In Indiana, we recommend Kruggel Lawton CPAs (Margene Zink mzink[@]klcpas.com) for accounting information and South Bank Legal for legal matters. Elsewhere, let me know if you’re looking and I will get you a good referral.

I am not a lawyer or a CPA. I am offering ancillary support as a nonprofit administration consultant who wants to see your important organization get through this whole and on your feet.

Feel free to reach out using our contact form if you have specific questions or need assistance during this tough period.

You’re excited. You’re a 501c3, you’ve got a great mission and now you’re ready to get some of those grant dollars you’ve heard so much about! Where do you begin? The good news is – it’s true, there are a lot of opportunities to find funders who want to invest in your cause. The bad news is, you may be a ways off from getting their attention. It’s especially difficult for brand new organizations to receive grant funding without 2-3 years of success under their belts to show they’re worth the investment. Hang tight and arm yourself with our list to get you and your team on the path to grant funding success. This article will give you an insider’s track guide to everything you’ll need to gather and have on-hand to begin applying for grants.
 

1. BALANCE YOUR BUDGET
 
Many major funders admit, the first thing they do when they read a grant application is go straight to the budget.
 
9 times out of 10, a grant application will require a copy of your organization’s annual budget.
 
On the budget, funders are looking to see that you’re fiscally solvent, fiscally responsible, and competent. How does a budget show them these things?

• Fiscal solvency: The first indicator is to look and see if your budget “zeroes out.” The income must equal expenses. If you’ve budgeted for the year and you’re still in the hole – then why would someone want to invest in you? They still may but you better have a real good compelling case for why it doesn’t and a great relationship with that funder. Most grantors will just write you off.

 

• Fiscal responsibility: The next thing funders will look at is where you’re putting your money. If they see you’re spending 75% of your budget on rent, they may wonder why you have just an expensive building. If they see your CEO is making triple what other leaders make, they may wonder about ethics. If they see you get 90% of your funding from a single source, that may worry them about sustainability. Your expenses and revenue need to be

 

• Competence: If you slapped your budget together on a sheet of line paper in a hurry then converted it into a PDF for the grant app, you’re not going to look very professional. Similarly, if you submit a budget with some random numbers on a page a no order, you won’t be taken seriously. If you can’t figure it out, then invest in some help to get your budget setup right. You should have a list of revenue buckets and amounts at the top and expense buckets at the bottom, the numbers need to match. A budget is your plan for success.

 


2. COVER YOUR BASES  

99.9999% of grant funders will require that you are 501c3 tax exempt organization. Here’s a list of the all the items the vast majority of grants require.

• 501c3 Tax Exemption w/ IRS Letter
• Mission Statement
• Organization Annual Budget
• Project or Program Level Budget(s)
• Most Recent 990
• Board Member Listing w/ Company Affiliations

 
Many grant funders will also ask for a deeper dive of information that includes:

• Year-to-Date Financials
• Strategic Plan
• Articles of Incorporation
• Recent Audit
• Resumes of Key Staff Members
• Annual Report
• Brochures or Newsletters
• Conflict of Interest Policy
• Diversity and Inclusion Policy
• Board Member Insurance Policy
• Board Member Giving Profiles (100% Giving)
• Staff and Board Member Race/Sex Profiles
• List of Formal Partnerships

 

3. KNOCK 'EM DEAD

Alright, you’ve covered all your bases and now you’re ready to actually fill out the application. What kind of information will you need to fill out the application?
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The vast majority of grant application and letters of inquiry will ask for these four elements for the program or project you’re requesting funding for:

• History
• Narrative
• Goals or Objectives
• Outcomes
• Client or Audience Demographics
• How you’ll sustain the program funding
• How you’ll publicize the program or their support

 
Many times, you’ll also be asked to include one or more (or all!) of the following:

• Logic-model or Theory of Change
• Key Accomplishments in Last 5 Years
• Detailed Program Timeline
• Geography and Other Census Data
• Staffing Plan

 

4. GET IT RIGHT
 
Finally, there are a number of random little red flags that may pop up around your application. Because grants are hugely competitive to win, a red flag might throw your whole application off. If you can get yourself grant-ready starting NOW, you won’t have to worry about that when you’re all set to apply.

• Does your Board of Directors “match” the population you’re serving? For example, if you’re a Latino Community Center, you’ll want to show that Latinos are represented as leaders of the organization.
• Do you have an audited financial statement to submit? If not, they may wonder if you’re hiding it or think that your organization is too green.
• Ultimately, you need to show that you need them. This is tough because you have a fine line of proving that you’re worthy of their investment and will deliver results based on your history, but you also need them to see your work can only continue with the support of generous donors. 

What happens when your nonprofit is engulfed in scandal? Or what if you have a board member or highly visible donor who’s reputation is significantly on the rocks? As always, being prepared for crisis and scandal is always the best policy. Every nonprofit leader should know when and how to act in times of trouble. Managing these crises is especially important when it comes to fundraising and mission advancement.

Fundraising is all about managing relationships. In times of controversy or not, nonprofit executives should be carefully navigating through their relationships with stakeholders. When there is a crisis, the trust they’ve built along the way will have the biggest impact on successfully wading through the times of murky waters. In general, it is good to have open, honest communication with all of your stakeholders so a crisis doesn’t tip you over the edge but makes everyone come out stronger.

If news breaks that a major donor was engulfed in scandal, a nonprofit executive should remain calm and act swiftly with integrity.  A solution and plan of action to mitigate the crisis should be immediately ready to go. This includes knowing who to pull into a room for immediate strategy, who to contact first, and who are the best people to carry out the plan. Communicating clearly, concisely is paramount.
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Your main strategy will need to be disassociating your mission with the person experiencing the scandal. Your core group of loyal stakeholders should continue to feel that you are an organization they can trust.  Continue to align their passions and initial interest in the work of your organization with the impact and mission you make in the world. The scandal could, in effect, give you an opportunity to engage your stakeholders in a closer, meaningful way that ignites even more respect and loyalty than before.