Soliciting Donations When Times are Tough

I recently discovered this blog posting from a year ago at The NonProfit Times with several hints on how to ask for donations when the economy is down. It’s as relevant to nonprofit organizations today as it was a year ago. In fact, the advice is sound no matter what the economy is doing! In a nutshell…

• Be Friendly — Yes, the economy is filled with bad news. You don’t have to be! Everyone can use some upbeat, positive energy. If you exude confidence and optimism, you will help your potential donor have some too.
• Get Face Time — It is easy to ignore an email or letter, much harder to ignore a live person talking directly to you. So spend some time in order to ask for those donations.
• It’s Tax Deductible — This can be a big selling point for some donors, so if donations to your organization qualify, be sure to mention it AND be ready with a proper receipt.
• Sell the Benefits — Don’t forget to tell them the WIIFM (What’s in it for me?). If they get a mention in your newsletter, advertisting at the field, or on your website, be sure to explain in business terms. “A weekly newsletter with a circulation of 750 local residents.”
• Incentives — Closely related to benefits, if you can provide a special incentive — such as a joint press release or other publicity that will provide business to the donor, be sure to offer it.
• Build Relationships — Asking for donations is far easier if you have established a relationship with the donor. Don’t ask for money every visit. On the first meeting, spend the time informing and learning. Build the relationship over time, and soon it will be possible to add them to your list of ongoing donors.

And a couple of my own:

• Donations in Kind — While it may be difficult for some donors to part with cash right now, be open to asking for donations of services or products. If your organization can use the product or service directly, great! If not, you can use the donated items as incentives or premiums to get cash donations from other donors? (Free Car Wash with $50 donation.)
• Volunteers — If you get a “we can’t donate this time,” be prepared with a volunteer opportunity — “Can you volunteer on Saturday next week to help us get the monthly newsletter addressed and mailed?” If they can’t donate money, perhaps they will donate time.

Starting a Nonprofit? Start Here. Go Far. LaunchX.com

Talking Up Your Nonprofit

When you are starting a nonprofit, you are going to need a number of people to be a part of your new organization. You will need donors, volunteers, and board members. Where are you going to find them? Anywhere you find people!

One of the tenets of a successful business is to always talk about your business with the people you meet. This is doubly true for nonprofit organizations, because they run on the donations and efforts of so many individual people. You don’t have to be obnoxious or pushy, but when asked “What’s new?” or “what do you do?”, be prepared with a few sentences about your nonprofit organization, including some type of call to action. Also, have your nonprofit’s business cards with you to hand out…even if the person you talk to isn’t interested, they may well know someone who is and pass your information along.

For example, the founder of an animal shelter might say, when asked “What’s new?”, “I’m in the planning stages for a new animal shelter that will provide short-term shelter for dogs and cats displaced when their owner’s move to assisted living and nursing facilities until they can be placed with other rescue groups or adopted into homes. Right now we are putting together a mailing list of people who are interested in serving as foster homes for dogs and cats. You can find out more and sign up on our website…” Then hand them a business card that includes the website address.

Use these informal opportunities to spread the word about your nonprofit organization, identify people who have an interest in what you are doing, and possibly round up some donors, volunteers, or board members.

Starting a Nonprofit? Start Here. Go Far. LaunchX.com

Use Volunteers to Cut Expenses

When you are starting a nonprofit, your first budget may seem unbalanced — with expenses outpacing income and donations. One way to balance that budget is to use volunteers to cut expenses. Any service that you are currently paying for — from office cleaning to website maintenance to accounting — is a candidate for replacement by a volunteer.

You may be able to get a single volunteer to pick up a specific service or it may take a group of volunteers to replace your existing service provider, but it is a good way to cut the expenses of your nonprofit while getting more volunteers involved in your cause. You may also be able to get your service providers to “volunteer” and provide the service for free or at a reduced cost. They get a tax break and you get a budget break.

So, while you are trying to balance your budget, keep your eyes open for opportunities to cut expenses by using volunteers.

Starting a Nonprofit? Start Here. Go Far. LaunchX.com

Blackbaud Offers Nonprofits Free Fundraising Seminars

In this  press release, Blackbaud, a global provider of software and services designed specifically for nonprofit organziations, announces a free web-based seminar series on rapid response fundraising. The free series, entitled Lessons Learned from Haiti, includes five seminars that will kick-off on March 11 and will continue through May.

“The ‘Lessons Learned from Haiti’ series is designed to help nonprofit professionals learn from both their peers and industry experts on how to successfully perform relief fundraising using emerging tools and technology that allow them to quickly reach their constituents,” said Steve MacLaughlin, presenter and Blackbaud’s director of Internet solutions. “The series will also focus on providing nonprofits strategies for stewarding and retaining disaster donors.”

Nonprofit professionals can sign up for these free web seminars at www.blackbaud.com/LessonsLearned.

Starting a Business? Start Here. Go Far. LaunchX.com

Online Collaboration Software FREE to Nonprofits

In a recent press release, Riverock Technologies announced the availability of their OnePlace online software free of charge to non-profit organizations, charities and schools. OnePlace provides an online suite of tools such as project management and team collaboration to improve small business organization and online communication. Non-profit and charity organizations can sign up for OnePlace Silver Plan free of charge at http://www.oneplacehome.com.

Why are they doing this? According to Steve Kickert, CEO and co-founder of OnePlace, “At OnePlace, we believe in helping those who are helping others, and paying it forward is a strong component of our culture. A good business model always gives back to the community it serves. ”

Starting a Nonprofit? Start Here. Go Far. LaunchX.com

Five Tips and a Warning for Starting a Nonprofit

I recently came across this post from 2005 at Idealist.org, and the points it makes are just as valid today as they are when Putnam Barber originally wrote it. In a nutshell, here are his tips (along with my comments):

1. All Nonprofits are Local. Since you are located somewhere, you will need to follow the rules and regulations in your local jurisdiction. As you expand and operate in other areas, you will also need to know and follow the rules and regulations there.
2. Local Supporters are Necessary. Unlike some for-profit businesses, nonprofit organizations are not solo operations. You will need a core group of local supporters that are willing to volunteer, serve on your board of directors, and take other roles within the organization.
3. Nonprofits can be—in fact, have to be—“businesslike.” Some people say “businesslike” as though that is a bad thing. Nothing could be more wrong. Nonprofits must adhere to the same principles of planning, organization, marketing, and financial management as for-profit businesses.
4. Often not starting a nonprofit at all is the best way to serve. Be sure to do adequate research in the planning stage to determine if a new nonprofit is needed or if there is another way you can contribute to the causes you have a passion for.
5. Plan for the Long Term. To be useful and successful, your new nonprofit must be prepared to sustain itself and its programs or services for the long term. This includes disaster planning, strategic planning, succession planning, and financial sustainablity.

Read the full post here along with links to more resources to assist you with each of these tips.

Starting a Nonprofit? Start Here. Go Far. LaunchX.com

Introducing: Third Sector Connector

Third Sector Connector (formerly Nonprofit Local) is a free-to-join website community that is dedicated to helping local nonprofits and NGOs connect with each other and with the consultants and other resources they need to thrive in their local communities.

They offer their members (sign up here):

• Daily tips to inspire nonprofit leaders
• An archive of their daily tips
• News from around the globe that is relevant to nonprofits and NGOs
• Member participation forumns on a variety of topics
• Messaging member-t0-member to continue the conversations

If you are in a leadership position in a local nonprofit or NGO, or are thinking of starting a nonprofit, check out Third Sector Connector!

Starting a Nonprofit? Start Here. Go Far. LaunchX.com

Monthly Giving is a Win-Win

Have you noticed that many information websites provide a monthly subscription service? Recurring subscriptions are a great money-maker for private businesses, and can be a great way to maintain a steady level of giving from your contributors, as well.

For the donor, monthly giving provides:

• A manageable amount added to a monthly budget that adds up to a large overall donation. $25 a month (less than a trip to a restaurant for a family of 4) turns into an annual donation of $300.
• A tangible action supporting a cause they believe in every month.

For the nonprofit monthly giving provides:

• A predictable, steady cash flow.
• An opportunity to thank their donors every month instead of just once a year.
• An opportunity to remind their donors of the great cause they are supporting every month.

If you don’t have an annual pledge, with a monthly giving option, then you should consider it for your nonprofit organization.

Starting a Nonprofit? Start Here. Go Far. LaunchX.com

Show Us Your Goodness Nominations Being Solicited

A competition for the most inspiring charity or nonprofit is being sponsored by Riceworks, makers of gourmet brown rice cracker snacks. There will be a total of 33 “winning” charities, with prizes ranging from $1,000 to $20,000. Read more in this article from Tonic.com and check out the official rules here.

Contests like these will not sustain your nonprofit organization, but they do provide some great benefits…even if you don’t win!

• Free Publicity — for the cost of preparing your application (usually just some time), you get nationwide exposure for your organization through the sponsors efforts to promote the contest and the voting process.
• Public Relations — use your entry as a press release to your local media, and, if you win, that gives you a second opportunity to toot your own horn.
• Volunteer Mobilization — when the contest includes voting by the general public, it is a great opportunity to mobilize your volunteers and social media channels to drive traffic to vote for you!

Starting a Nonprofit? Start Here. Go Far. LaunchX.com

The 80% Rule

It is a generally accepted rule that if a nonprofit organization spends 80% or more of every dollar raised on the programs, services, or products it provides to its constituents, that the organization is probably well-managed and a good choice for donations. How does your organization stack up?

Donors are always wise to research the nonprofit organizations that are asking for donations, and when there are high-profile cases of organizations not meeting the standard, such as the recent controversy over Yele Haiti, donors will be even more vigilant about investigating the financial performance of nonprofits. When you are starting a new nonprofit, transparency in financial management will be especially important in attracting new donors. Be sure you are complying with your state’s regulations for registration and disclosure.

Starting a Nonprofit? Start Here. Go Far. LaunchX.com