Posted by Fundraising Pro on May 25, 2009
Choose carefully before you write a check to a charity, advises an article in today’s Wall Street Journal. Websites such as CharityNavigator.org and GuideStar.org provide information about charities’ programming and financing that can help in you make an educated decision.
Charity Navigator rates charities and evaluates their financial health, the article explains. It shows how much a nonprofit spends on programming versus administrative expenses. Plus it shows how it compares to charities that do similar work.
GuideStar.org offers information about a charity’s finances and programming, including its mission statement, program description and federal tax form. Donors can search for charities and donate directly from the site.
Becoming a volunteer for a nonprofit organization is a good way to become familiar with programs you’d be supporting as a donor. If you’re able to give a substantial donation, you should talk to the charity’s leadership about its accomplishments. Ask how the group evaluates its programs; ask to see annual reports. How do the leaders measure if they’re making progress toward their goals?
The fundamental question comes down to whether a nonprofit is treading water or making a difference, according to Rich Cowles, executive director of the Charities Review Council, which evaluates nonprofits and advises donors on effective giving.
Be sure to find out whether a nonprofit you are interested in helping sells the Samaritan Card. It offers nonprofits a very high return on selling a practical product that people can use instead of just asking for outright donations.
Posted by Fundraising Pro on May 22, 2009
What will the nonprofit world look like when the economy stabilizes? Part of what makes that a challenge is that even today, experts don’t have a viable estimate of how many charities are operating as opposed to those existing merely in the files of the Internal Revenue Service (IRS). Some charities go dormant during difficult times only to reemerge later.
The IRS recently reported that nearly 1.2 million charities and nonprofit foundations are registered in the United States. But more than two-thirds of those have less than $25,000 in revenue. Many of these charities - perhaps tens or even hundreds of thousands – may no longer exist.
Predictions that 100,000 charities will fail during the recession need to be tempered, experts say, with the fact that the U.S. added about 500,000 charities in the past decade alone. The pervading thought seems to be that losing 100,000 would not be catastrophic.
Meanwhile, some of the best-positioned charities to ride out the downturn may be food pantries and homeless shelters, which are gaining greater donor interest as the economy takes its toll on the country’s poorest citizens.
And charities that serve a so-called protected population, such as foster-care providers, should continue to see ample state support.
But many types of charities – including arts organizations and providers of after-school and job-training programs- are struggling. If your nonprofit organization needs a new fast and easy funding source, sell the Samaritan Card. Your group earns and your donors save by using the card. It’s a win-win.
Posted by Fundraising Pro on May 18, 2009
Here’s some good news. Despite the waves of layoffs washing over the world, a new study to be released this week predicts that at least 24,000 senior-level nonprofit organization jobs will be available this year.
About 28% of nonprofit organizations said they intended to make these types of hires in 2009. But 60 % of nonprofit leaders predict that they will have a hard time finding qualified candidates to fill those jobs.
Even with diminished budgets, nonprofit organizations need to get done what they need to get done if they are to continue to exist. And as monies are poured into charities from the federal economic stimulus package, growing organizations will need to add top managers.
Compensation tends to be a sticking point in the nonprofit world. But that may be changing. Nonprofits are becoming more sophisticated in the total package they offer candidates. Many realize that it does not pay to pinch pennies in this area. Turnover ends up costing organizations more if they don’t have competitive salaries.
To fill the many senior-level jobs that will open up in this and subsequent years, nonprofit recruiters need to cast their nets wide. They will need to tap into a diverse talent pool. But it is important to make sure that potential hires are committed to your charitable cause, not just seeking shelter in a rocky job market.
Remember to introduce new staff at your nonprofit to the wonderful potential offered by selling the Samaritan Card. It’s a wallet-sized card that gives your donors discounts on products they really use.
Posted by Fundraising Pro on May 15, 2009
According to a recent article in The Chronicle of Philanthropy, many nonprofit organizations have sharply reduced their budgets, due to declines in donations, fees, endowment income, and state government support. But most experts believe the worst is yet to come, as foundations cut their grant awards in the coming year to bring their distribution of funds in line with the steep investment losses their endowments have suffered.
The article quotes Paul C. Light, a professor of public services at New York University, as predicting that more than 100,000 charities will fail in the next two years and that he fears that survival of the fittest is angled towards the wrong kind of fitness. Those charities with well-oiled fund-raising machines are likely to survive and prosper while worthy charities with little name recognition or marketing clout may go under.
There’s general agreement, it seems, especially among funders inside government and in the philanthropic sector that there are too many nonprofits and some winnowing might not be so bad. But if the winnowing is done in a random way, we could wind up losing a number of very good nonprofits that should survive.
Some foundation officials believe that most charities have not fully come to terms with the severity of the current economic climate. But if you put off difficult decisions for too long, you put the whole organization at risk and may make yourself unattractive as a merger candidate should it come to that.
Keep on top of what’s going on in your nonprofit organization’s finances. Don’t forget to consider selling the Samaritan Card as a fundraiser. It’s not a luxury item like fancy wrapping paper or gourmet popcorn that people don’t need. The Samaritan Card offers people discounts on items they really buy. The Samaritan Card is accepted at over 100,000 retailers.
Posted by Fundraising Pro on May 13, 2009
Nonprofit fundraising is so prevalent today that it’s hard to imagine life in America without it. But organized nonprofit fundraising is a relatively recent development in our nation’s history.
In the years following World War II, the Easter Seal Society and a few other big American charities began to make extensive use of the mail to meet their growing fundraising goals. With little cash outlay, they mailed millions of inexpensive fundraising letters and saw it pay off in huge returns for their causes.
That was more than half a century ago. A great deal has happened since: a more than twenty-fold increase in charitable contributions, the advent of zip codes, powerful personal computers, 1,000 percent inflation in nonprofit postal rates, and a similarly giant rise in printing costs - and above all, competition in the form of appeals mailed by thousands and thousands of nonprofit groups and causes both large and small.
In 2008, the U.S. Postal Service distributed more than 14 billion pieces of mail for nonprofit organizations. Most of these were appeals for funds. But this isn’t simply a matter of volume. Direct mail fundraising accounts for a major share of the financial support given to many of our nation’s biggest charities, and it has come to loom large on the political landscape as well.
This proliferation of mail has created a challenge for nonprofit organizations to generate funds through direct mail. To help meet this challenge, hundreds of consulting firms have come into existence. They often charge high fees to offer a staggering variety of approaches. Although it continues to be popular, direct mail definitely has grown more complicated since its early days.
But no matter what type of outreach your nonprofit organization utilizes, we recommend selling the Samaritan Card. It’s a valuable shopping discount card that pays for itself after only a few uses.
Posted by Fundraising Pro on May 11, 2009
It is difficult for nonprofit fundraising organizations to ask for money in the best of times. Soliciting donations during an economic downturn can be downright unnerving. Even businesses that you usually turn to for donations may be facing layoffs and cutbacks. Where do you go when every stream seems to be dry? Here are some ideas that might help you hang in there as a Christian fundraising group:
- Be friendly. Being kind and friendly can really make a difference. People are looking for a ray of sunshine. You can be that ray. A little enthusiasm and a positive attitude can be charming. Though it may not convince a struggling individual to give cash, you just might develop a friendship with a potential volunteer. Since time equals money, volunteers are worth their weight in gold.
- Get some face time with your prospective donor. People always feel better giving to a cause when they have a personal relationship with the person asking for a donation. It is often preferable to ask for money in person. Dress nicely and always wear a smile.
- Remind the potential donor that their gift is tax-deductible. In most cases, contributions are tax deductible to organizations that have official nonprofit 501(c)(3) status from the IRS.
- Sell the benefits of making a donation. If you are giving a reward for a donation, be sure to remind the potential donor what they will get in return for their donation. If they can receive special recognition in exchange, be sure to really talk it up.
- Think through possible incentives. Businesses are much more likely to make a donation if it benefits them to do so. For example, a local party store would be more likely to donate close to a holiday when the publicity could bring in additional business.
- Relationships count. If businesses can benefit from a relationship with your organization you will have a better chance of success. A valuable favor in exchange for a donation provides a foundation for an ongoing partnership.
- Sell the Samaritan Card. It allows people to give while also receiving discounts on items they normally purchase.
Posted by Fundraising Pro on May 8, 2009
Budgets are important to every organization and especially important for non-profit fundraising groups. Non-profit groups are in existence to raise money and to distribute that money outright or in services as described in their mission. Your board, donors and the public all expect that you are using the money wisely. It is essential that you can provide the facts and figures they need to verify the integrity of your non-profit organization. So here are four more tips for creating a budget for your non-profit.
- Provide an Excel form to each manager that they can use to document their budgets by filling in amounts. Make sure there’s a row for each account in the chart of accounts and that there are no rows that don’t appear in the chart. And as the process evolves, make sure no one adds rows of their own invention! Help everyone fit their items into existing accounts – or determine that there is, indeed, a need for a new account .
- Make sure everyone understands who is budgeting revenue. How do departments work together to ensure that budgeted revenue is neither incomplete nor overstated?
- Meet with each manager at least once during the process to ensure they are not confused and to provide any help they might need in fitting their department’s plans to your budget format.
- Be clear in your instructions about how you will handle income and expenses that occur in peaks and valleys throughout the year. Design your budget worksheet form so that it is easy for everyone to tell you when those fluctuations will occur.
Budgeting can be a tough process. I hope that it goes smoothly in your organization. If your group needs to pursue new ways to raise money, choose the fundraising SAMARITAN CARD. Unlike the bulky coupon books of yesterday, the SAMARITAN CARD fits in your donors’ wallets so they can receive discounts whenever they shop.
Posted by Thomas Freiling on May 4, 2009
Welcome to our new blog for www.SamaritanFundraising.com. We are excited about it and looking forward to visiting with you here about ideas, tips, and hints for Christian fundraising and church fundraising opportunities during these challenging times.
With the country in the worst recession since the Great Depression, area churches are feeling the effects in different ways, from cutting back on expenses to trying to offer help and comfort to those in need.
At difficult times, many people turn to churches for spiritual support and guidance as well as physical sustenance and assistance. The good news here is that many more people may be coming through the doors of your church – some perhaps for the first time in years. And for many this may be the first time in their lives that they are turning to God and trusting in faith to help them during this time of need.
One of the lessons we can offer even those experiencing challenging financial constraints is that in giving they shall receive. Giving can be very empowering for those going through difficult times. It can boost their feelings about themselves and the world around them. These feelings of well-being are of utmost importance to people who need to put their best food forward now whether to look for work or just be a source of love and support for their friends, family and neighbors.
We believe that this is a very exciting time for those committed to Christian ideals and Christian fund-raising. We have an opportunity like never before to reach out to people and make a difference, not only in helping them directly but in helping them experience the joy that comes with helping others, too. Please stay tuned as we explore how you can generate more fundraising income for your church, school, or event. Thank you and God bless you.
