Taking a strategic approach towards fundraising

For many nonprofits, the matter of fundraising can often pose a significant challenge. The business of identifying new donors can be a bit daunting, and having a focused strategy in place can remove a lot of the guesswork and aid in maximizing charitable contributions. For those who are keen on discovering effective ways of going about the business of prospect researching, this video is a must see. Many nonprofits are pleasantly surprised to discover how easy it can be to identify new donors, when an effective plan of action is in place.

Using the world wide web to full effect
A vast amount of information relevant to potential planned giving candidates can be accessed in the public domain, and the internet represents a powerful tool for obtaining this information. Resources such as corporate insider information, other nonprofit websites and news releases can shed light on a companies capacity to donate, as well as any philanthropic interests that it has demonstrated in the past. A variety of free online databases can be found, and in addition to these, local public libraries also contain a wealth of information.

Contemplating the purchase of fee-based tools
A variety of resources exist, as highlighted in the video, that can significantly simplify the matter of searching for new donors. It has been said that those who fail to plan, plan to fail, and this is certainly true as it relates to planned giving strategies. This video provides nonprofits with resourceful ways that they may never have considered before of making contact with new donors. With a little bit of research, nonprofits can enjoy a much greater measure of donations Taking a look at this video today could represent an important first step towards a nonprofit maximizing its fundraising potential.

A Convio survey sheds light on fundraising statistics

If you are interested to know what fund-raising figures look like for the year ahead, and what sorts of channels will be utilized in making donations, then you will definitely find this video to be informative. A new survey has recently been conducted by Convio that sheds light on what sorts of figures can be expected in the future, and what channels Americans will be making use of as it relates to their charitable contributions. According to the survey, approximately $48 billion will be donated in the year ahead across the full spectrum of donation channels including direct mail, online contributions and checkout counters at a variety of retail stores.

The positive impact of the nonprofit sector on the economy
According to a statement released by the president of the Association of fundraising professionals, these donation figures paint a pretty positive picture. Each year the nonprofit sector contributes 5% of GDP, and also provides employment for 10% of the American workforce. Fundraising initiatives, particularly the giving season at the end of the year, are incredibly important for ensuring the stability and success of the various organizations that comprise the nonprofit sector. The positive impact that the nonprofit sector has on the national economy as a whole can barely be overstated.

How and how much Americans are giving
The survey found that an average of $281 could be expected to be spread across two or more charitable organizations. Some of the primary giving channels include direct mail, as well as social networking infrastructures. As much as $6 billion is expected to be donated over the Internet. This figure represents a boost of 30% over the identical period in 2009. For those who are curious about what the fundraising landscape might look like over the coming year, this video sure to provide some useful information and insight.

Celebrities join the worldwide fight against HIV and AIDS

The singer Alicia Keys has created a project aimed at supporting families in Africa and India which have been affected by HIV and AIDS. She's called it “Keep A Child Alive”. This video highlights some of the innovative steps that celebrities are taking to lend their support to creating awareness about this worldwide health dilemma. Some of the names that have joined forces with Keys in this endeavor are Serena Williams, Lady Gaga and Usher.

Avoiding social networking for a day
A number of celebrities are committed to staying away from social media devices and applications for a day in a move aimed at fundraising in aid of the AIDS awareness initiative that Alicia Keys has created. Other names that have lent their support to the event are Elijah Wood, Justin Timberlake and Kim Kardashian, to name a few. Each of the celebrities in question have committed to raising one million dollars each in aid of HIV and AIDS research, and in tangibly bettering the lives of those who suffer from this illness. It is an online marketing strategy that is sure to bring in a huge amount of support for this worthy cause.

Making a bold statement
As part of their efforts to encourage charitable donations on the part of their fans, each celebrity has created what has been dubbed a Last Tweet and Testament video which will be used in ads in which they can be seen stretched out in a coffin. This striking move is sure to grab the attention of millions of fans around the world, and hopefully inspire a huge amount of donations. Alicia Key has stated that it's important to utilize the power of social media tools in raising awareness about this important issue. This is certainly a video worth watching if you are in any way interested in playing a part in the fight against HIV and AIDS.

Record Fundraising Levels Expected In Alaska

Record levels of charitable organizations are getting involved in what is known as the 'Pick. Click. Give.' program which forms part of Alaskans' Permanent Fund Dividend or PFD application. The programs make it possible for recipients to donate part of their PFD to a variety of nonprofit groups. Alaskan residents receive an annual check based on oil-punted estates. As much as 386 nonprofit organizations are signed up to receive donations this year, a figure which is up by approximately 6% from the year before. Organizes of the fundraising drive have set a target of $1.5 million, a 50% increase over the previous year.

Many nonprofits stand to benefit
In 2010, about 9,500 of all Alaskans donated a part or all of their dividends as funding for various charitable organizations. The administrative expenditures related to the drive are being covered by the Rasmuson Foundation. Bearing in mind the vast range of charitable groups that are signed up to receive donations, donors are bound to find a cause that tugs a heart-string that they would be able to support with enthusiasm. When people go online to apply for their PFD, they will see the option to participate in the 'Pick. Click. Give' fundraising program.

Dipping Into Diaper Reserves In Minnesota

A nonprofit group in Blaine Minnesota is planning what is labeling as the biggest diaper drive in all of America. The event will take place at the Mall of America in Bloomington. The nonprofit in question is known as The Diaper Drive, and they embrace the fun and witty slogan of 'No Child Wet Behind', which is of course a spoof of the 'No Child Left Behind' Motto of the national education administration.

What the group hopes to achieve
The Diaper Drive is positioning itself as the leading advocacy group for the need for diapers. They hope that the fundraising event will bring in at least 200,000 diapers, as well as increase public awareness regarding this constant need. The Diaper Drive is happy to receive disposable and fabric-based diapers from newborn to adult sizes, and appeals to a generous public to help them in meeting their targets. The group is active in a number of locations in the state and beyond.

Celebrities Stepping Up To The Charitable Plate

The group known as dosomething.org recently released its latest top 10 list, based on people who have made extraordinary contributions to charitable causes during 2010. That is the subject matter of this video that sheds light on the increasing amount of charitable efforts undertaken by a variety of celebrities. Lady Gaga topped the list at the number one spot for her involvement in gay rights and her call for the end of the 'Don't Ask, Don't Tell' policy. Lady Gaga has been actively involved in a variety of other charities, channeling the proceeds from her involvement to HIV and AIDS research and care programs.

The list goes on
A number of other well known personalities embraced personal involvement in charitable endeavors in 2010. Alicia Keys took the 2nd spot on the list for her work with her 'Keep A Child Alive' campaign focused on providing support for HIV and AIDS victims around the world. Providing support and encouragement for victims of floods was what earned singer Taylor Swift the number three spot on the list, a cause that she has donated half a million dollars towards. A focus on the tragic and urgent issue of child sex trafficking was what earned Ashton Kutcher and Demi Moore the number four spot on the list.

Other individuals who made the dosomething.org top 10 list were Matt Damon for his efforts to bring clean drinking water and sanitation infrastructures to the Third World. Leonardo DiCaprio made a significant contribution in 2010 towards saving endangered tigers, and was also involved in raising awareness regarding global warming and other environmental issues. Justin Bieber is another celebrity who made the list as a result of his charitable fundraising efforts. Be sure to view the video to see what good work some of your favorite celebrities have been involved in.

Pacelle Talks To Nonprofit Times About Michael Vick And The Humane Society

Michael Vick, the quarterback of the Philadelphia Eagles has been all over the news recently in the wake of his time spent in federal prison because of organizing a dog fighting ring. The CEO of The Humane Society, Wayne Pacelle has been the object of a great deal of criticism because of statements he has made that suggest that Vick could be a responsible and proper pet or dog owner after a suitable period of probation and the necessary change in attitude and behavior towards animals. This is the subject of this highly informative video in which Pacelle volunteers his time in an exclusive interview with Nonprofit Times. In this interview, Pacelle responds to, among other things, calls from the Center for Consumer Freedom (CCF) for his resignation.

In a recent publication of the New York Times, the CCF took out a full-page advertisement calling for the resignation of Pacelle when the Eagles were in New Jersey for a game against the Giants. Pacelle is not rolling over and playing dead, and is undeterred by the various accusations being leveled against him. According to Pacelle, his interaction with Vick have revealed a man who is deeply remorseful with regard to the cruelty he has exercised against animals, and who is determined to be involved in work that raises awareness about the importance of treating animals with proper care.

In his interview with The Nonprofit Times, Pacelle stated that he does not entertain these calls for his resignation. He mentioned the fact that the Humane Society faces a consistent barrage of attacks from funded groups, including the CCF, who is determined to undermine the work they are committed to against various animal exploitation industries in America. According to Pacelle, organizations like CCF are nothing more than a front for those who have an agenda of attacking legitimate advocacy groups. Be sure to take a look at this interesting video, and hear the story straight from the source.

Help Your Nonprofit Get Those End Of Year Donations

Most charitable donations take place that the end of the year. That means that your nonprofit needs to do its best to capture the attention of those in the giving spirit. A great way to do that is to let them know the steps they must do to get the maximum benefit from their donations to your nonprofit. If you don’t capture their attention, somebody else will. That’s why you should be the one. You don’t have to spend hard to come by money to deliver that message. Take advantage of your social media and any free radio time you can get.

What your charitable donors must know:

Your donors must itemize their deductions. If they want to capture the full benefit of their charitable donations they will need to itemize them out on the Schedule A of their tax returns. Otherwise their charitable donations to your nonprofit will not count.

Credit card donations and donations by check must be dated no later than December 31 to count for that given year. It’s okay if your donors do not get the credit card billing statement by year’s end or that the check doesn’t clear. The one thing that must be evident was that the act of donating was done prior to year end for it to be used for that tax year.

Your nonprofit is an IRS approved charity. Let them know that you have the 501(c)(3) status. If you don’t, work on getting that.

Larger donations can be rolled over for up to five years. If your charitable donor exceeds the maximum write-off they can do that year they can move it to the next year.

You have the opportunity to make a difference:
Having a basic understanding of the process for donations and how they benefit your charitable donors will lead your nonprofit to a more prosperous road. You don’t have to be an accountant and you shouldn’t give tax advice, but you can certainly let your donors know that there are great benefits to donating to your nonprofit.

Nonprofits Need To Take Call To Action Over Estate Tax Changes

In the turbulent times of tax restructuring nonprofits are the ones that could be hurt the most by some of the changes that are on the table. These new deals to extend the Bush era tax cuts or some variation of them stand the chance of having a significant financial impact on the donations that many nonprofits rely on to be able to do their good deeds.

Why does estate tax affect nonprofits?
Many nonprofits are funded through government grants and estate taxes are what contribute to those funds many times. With the proposed reductions in estate taxes to only 35% with higher exemption levels the funds, that are critical to many nonprofits success could be cut drastically. The result would be that the wealthiest of American’s would indirectly be taking away the support that is given to people of dire circumstances. A few of these groups are the unemployed, homeless, and single parents. Other groups that would find it more difficult to achieve their goal of helping others would be nonprofits that work towards new beginnings and medical advancements that will help everyone.

How does philanthropy play a role in estate taxes?
One of the first benefits to be threatened is the deductions and their benefits for philanthropists who wish to keep spreading good deeds after they have passed. Without nonprofit groups taking a stand for their passions they could risk losing the funds to continue their valuable work.

Every nonprofit who is concerned about their financial resources must take a stand. Make sure you contact your political representatives and let them know that the estate tax is a vital part of your potential and must remain at a reasonable rate. Don’t undercut your nonprofit’s potential because you didn’t fight against an unreasonably low estate tax.

Are you ready for the end of the year?

Do you have the comparable compensation data the IRS requires for the top executives in your organization? Do you know if your employee salaries are in line with the nonprofit marketplace? The NonProfit Times 2010 Salary and Benefits Report provides the comparable compensation data nonprofit organizations need to satisfy IRS Form 990 requirements. The IRS requires nonprofit organizations to report the Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors on Part VII of Form 990 each year. Each nonprofit's Board of Directors must also indicate on Part VI, Section B of Form 990 if comparable data was used in the process of determining compensation for the organization's CEO, Executive Director and other key individuals. Each nonprofit's Board of Directors must also indicate on Part VI, Section B of Form 990 if comparable data was used in the process of determining compensation for the organization's CEO, Executive Director and other key individuals

The 2010 Nonprofit Organizations Salary and Benefits Report is the most comprehensive, data-rich and user friendly salary and benefits report for the nonprofit sector. Purchase it now and get the information that will make the IRS 990 form easier for your organization

How Do You Evaluate A Marketing Plan?

That's just one of the questions posed by Michael Kaiser in his book, "Leading Roles: 50 Questions Every Arts Board Should Ask," published this year by University Press of New England.

Kaiser, president of the John F. Kennedy Center for the Performing Arts in Washington, D.C. since 2001, breaks down the 50 questions into 12 categories, among them, life cycle, governance, mission, fundraising and marketing.

"I have stolen ideas liberally throughout my career from the many talented and thoughtful art managers I have met and observed," Kaiser concedes in the opening pages. "I give them no formal credit in this book, but their contributions to this young field of arts management are invaluable," he adds.

Board members are usually more involved in fundraising than marketing, but Kaiser said it's still essentially that they "understand and concur with marketing plans supporting both earned and unearned income."

He suggests dividing marketing activities into two categories: programmatic and institutional. Most marketing departments are devoted to programmatic marketing since it's charged to persuade people to buy tickets. Institutional marketing, which is "anything an organization does to build visibility in the community," is to entice audience members and donors to support the institution.

"A balanced approach to programmatic and institutional marketing can have as big an impact on fundraising as it does on earned income," said Kaiser.

Donor-Advised Funds Surged In 2010

Donor-advised funds, where donors get an immediate tax break for depositing money that eventually will go to charity, are reporting increased contributions and payouts as investor portfolios rebounded with the stock market during past 18 months.

Contributions to Schwab Charitable were $610 million for 2010, through Sept. 30, up 274 percent from the same period last year, and up 90 percent for the same period in 2008. Grants to charities totaled $262 million for the same period, up 15 percent from 2009 and up 3 percent from the previous all-time high in 2008.

San Francisco-based Schwab Charitable reported a continued increase in gifts of appreciated securities, up from 68 percent to 74 percent of total contributions in the last two years, driven by a healthier stock market.

The stock market has increased roughly 70 percent from the lows of early 2009, and many donors are choosing to donate appreciated securities to their donor-advised funds, maximizing tax benefits while meeting philanthropic goals.

The nation’s largest donor-advised fund, The Fidelity Charitable Gift Fund, reported grants of $531 million for the first six months of 2010, up 16 percent compared to last year. It was the strongest first half in the fund’s 19-year history.

Contributions to the Boston-based Fidelity fund were up 67 percent and new account openings increased 19 percent. Contributions in the form of appreciated securities made up more than half of all contributions to the gift fund, compared with a third of all contributions during the same period in 2009.

Incoming contributions during the fiscal year ending June 30, 2010 were $1.3 billion, up 39 percent from the previous fiscal year, while donors recommended grants of $1.1 billion to charities, up 11 percent. The fund ended the fiscal year with almost $4.4 billion, up 15 percent of the last year.

Invested assets at Malvern, Pa.-based Vanguard Charitable Endowment Program total $2.1 billion compared to $1.94 billion a year ago. New accounts established this calendar year, through September, is up 80 percent over the same nine months in 2009, with every month in 2010 better than last year, with the number of grants up 11 percent this year. The number of additional gifts in 2010, through September, is up 38 percent over the same period in 2009, with all but one of the nine months showing material increases.

Is your organization seeing more donations from these types of funds or do you think the cash is just sitting in a personal account with the minimum being contributed?

Donors Ain’t Broke

Who says the economy is in the tank? You’d never know it with all of the money pouring into the political campaigns. And, organizations all over the country are announcing massive campaigns, several eclipsing the $1 billion mark.

Capital campaign donations are fundraising’s luxury gifts. "In the hierarchy of fundraising, capital campaign gifts rank the highest because they usually have the highest monetary level of any gift any organization will receive, according to consultant Laura Fredricks.

The purpose is to raise a substantial amount of money during a specific time period so that the organization can achieve new heights," she wrote in her book, "The Ask: How to Ask Anyone for Any Amount for any Purpose."

A capital campaign gives donors a chance to boost the presence, stature and success of an organization and undertake bold, new projects. Now that the campaigns are almost over, here are 10 ways to push yours forward:

* The fundraising goals are ambitious.
* It asks people to make stretch gifts.
* It drives the entire focus and direction of the organization until the campaign goals are met.
* It coincides with and complements the organization's strategic plan.
* It includes all types of existing fundraising programs, such as annual, major and planned gift programs.
* It is well organized, with a beginning, middle and end.
* It causes the organization to expand its volunteer base.
* It serves as a means to get prospects and donors to give now.
* It is a highly cost-effective way to raise substantial money.
* It can create a positive change in the culture of the organization.

Finding Your Donor ‘Whales’

In Las Vegas, they are known as “whales.” In fundraising, that same gambler is called a major donor who is betting on you.

To reach the well-heeled requires a different, often personal, approach over an extended time when the potential gift.

To figure out who should be on a prospect list, David Chase of Chase Solutions in Centerville, Mass., spelled out a number of sources that can be tapped. Called data screening, it involves poring over other databases to see how closely they match your own and build on what you have.

The process is not infallible, he told the annual conference of the New England Association for Healthcare Philanthropy in March, and can produce false matches.

But looking through various records of everything from real estate and stock holdings to yacht ownership and the board of directors appointments can help guide development efforts in the following eight ways:

* Identifying the best prospects and rating them.
* Estimating the donation capacity not only of individuals but an entire list.
* Rating levels of donations, including size and frequency.
* Identifying which forms of giving to which they will be most amenable.
* Finding personal connections that will have the ear of the target.
* Using the information as a building block of a campaign, looking at such areas as how to raise average gifts, to upgrade large donors and the cause to highlight.
* Determining which prospects merit the strongest focus.
* Such data screening will generally cost from $3,500 to $15,000 depending on the number of people researched and how much information will be collected.

Finding Out The Latest In Nonprofit Management Just Got Easier!

The NonProfit Times, the leading publication for nonprofit management, has created an easy viewing, online TV broadcast to bring you exciting and relevant information.

The NonProfit Times' TV broadcast is an easy to use format that brings you up to date information every two weeks. Taking no more than 10 minutes to be viewed, you will find that the broadcasts are informative, relevant and professionally created.

View the complete broadcast, watch older broadcasts in our Webcast Archive or view each broadcast in segments with our feature video library . You can browse by category or search for videos using keywords.

Some of the feature video topics include:

Budget Reduction Study ,
A new survey reveals steps organizations take when reducing budgets

Tax Form 1099 Amendments
The US Senate rejected proposed amendments to the federal information Form 1099

Will Study
Exclusive results from The NonProfit Times' study on wills and leaving money to charity.

The NonProfit Times TV broadcasts every two weeks. Our next cast is on October 20. Even though our casts our every two weeks, the latest broadcast is always available, just go to http://www.nonprofittimes.tv/to view it from your desktop, laptop, iPad or Smartphone.

It really isn’t easy giving away money

Despite claims that giving money away is easy, Dennis McIlnay, in his book Foundations and Higher Education offers certain findings indicating that giving away money can be complicated and difficult.

These findings come from a gathering of information from philosophers, philanthropists and foundation officers.

Among the findings:

•Grantmaking is more subjective than objective and is based on the assumption that judicious funding decisions are possible. There is no precise measuring stick to select a successful grant project.
•Foundations rerely publicly articulate the tenets they apply in grantmaking. Their grantmaking criteria are rarely described and too rarely discussed.
•Grantmaking may be inherently difficult because of the danger of doing more harm than good.
•Some foundations overreact to the subjectivity of grantmaking by attempting to quantify all aspects of the process. Others adopt an attitude of detachment that borders on arrogance.
•Foundation staffs are often the targets of animosity from rejected applicants, and the tenuous relationship with grantseekers may cause fear, anxiety, isolation, aggression and narcissism.
•The power of money may corrupt foundation officers no less than other professionals. Foundation officers have been known to succumb to the “God complex.”
•A “genius for charity” is often cited as a necessary quality for foundation officers.

NonProfit Salaries Inch Up This Year Despite Poor Economy

Nonprofits across the board saw salary increases move up on average 2.1 percent for executive and administrative staff this year, according to the results of the new The NonProfit Times/BlueWater “2010 Nonprofit Organizations Salary & Benefits Report” just issued. This survey is among the most extensive compensation survey ever conducted, covering 259 titles and 34 benefit offerings.

“This study represents several firsts for data of this kind,” said John McIlquham, president and CEO of The NonProfit Times. In addition to the salary and benefit findings grouped by budget, employees and field of work, the study also provides operating unit compensation costs and practices that provide a snapshot of what organizations spend on salaries as a percentage of their budget, he pointed out.

Another first is a new report in the study on executive job families. No other study provides a report on what percentage of the operating budget accounts for the top 15 executive posts at nonprofits.

The study also offers not just salary but an in-depth look at benefits, often a big percentage of compensation costs that get little attention, according to McIlquham. The benefits portion of the study examines executive bonus and benefits, including participation and eligibility rates for retirement plans. Another interesting finding is employee turnover, he noted, that appears to be higher among larger organizations than smaller ones.

Overall, turnover at all organizations averaged 9 percent, with employees staying at an organization, on average, 6.2 years.

Eighty-five percent of all organizations surveyed offer some type of medical plan for employees, with two thirds of respondents indicating they offer a PPO plan. Employee participation in any medical plan was more than 53 percent, with the highest rates for EPO plans.

Almost 37 percent of nonprofit operating budgets are spent on total cash compensation costs. The average salary for a nonprofit chief executive officer/president last year was $111,838. The median salary was $90,000 while the maximum was $650,000. The average tenure for a nonprofit CEO is 9 years.

More than 36 percent of nonprofits pay their CEO a bonus of some kind. Twenty percent of nonprofits offer their executives some form of executive benefit, with the most common benefit a car or car allowance. Additional vacation days ranked second in popularity.

New to this year’s report is a table in each section that displays, at a glance, the changes in data from 2009 to 2010.

The data was collected using a state of the art on line questionnaire and information gathered was for US-based organizations only. Survey participants were asked to provide information as of March 1, 2010.

Robert Bruder-Matson, president of BlueWater NonProfit Solutions, said the survey data offered in these reports is more comparable and relevant to understanding how nonprofits engage their executives and their employees in an extremely tough economy. For example, Bruder-Matson emphasized, the executive job family, on average, accounts for 13 percent of an organization’s operating budget, with an average cost per employee of $85,296.

The study’s benchmarks provide executives, human resource directors and anyone looking at a position in nonprofits with the most timely and up to date information by geographic region as well as operating budget and type of organization.

The study can be purchased either for just salary data or compensation data or the 700-page combined report.

Click here to view a sample and order the full 2010 NonProfit Organizations Salary and Benefits Report.

Plan to Sell “Toxic Assets” Announced

Today in Washington the Obama Administration announced the new plan to deal with the so called “toxic assets” that have been at the root of the economic crisis. To free up lending, this new program plans to attract private investors by offering low-cost loans from the FDIC and the Federal Reserve.

The way the program would work is that a private investors would purchase of a bunch of bad mortgage loans by putting up 6 percent of the cost. The FDIC would cover 84 percent of the cost of a loan and the remainder of 6 percent would be taken from the $700 billion in Federal bailout money.

This new program appears to get the nod from Wall Street. Many people have wondered whether Treasury Secretary Timothy Geithner would be able to recover from his first failed attempt, on Feb. 10, to unveil a bailout initiative. There was a stunning disappointment from the lack of detail. Wall Street showed that disappointment with huge losses that day.

The Obama Administration wants to get the new program out there and test the success of the program before asking for more money from Congress. They put in a placeholder request of an additional $750 billion; however voters are not so keen on further bail outs after the AIG bonus scandal.

Nonprofits have seen the usually generous public pull back on gift giving due to fears about the troubled economy. Hopefully, this program will help to get the economy back on track and get the lending going again.

Will this program help nonprofits by shoring up public confidence? Tell us what you think.

Asking for Money in Tough Times

While it is difficult to ask for money in the best of times, soliciting donations in a terrible economy can be downright unnerving. Even businesses that you are used to going to for donations are facing layoffs and even bankruptcies. Where do you go when every stream seems to be dry? It is time for a little empathy, kindness and understanding. Here are some ideas that might help you to hang in there and keep the faith:

• 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 my 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 deductable to organizations that have 501(c)(3) status.
• 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 are getting special recognition or advertising in exchange, be sure to really talk it up.
• Think thru possible incentives. Businesses are much more likely to make a donation if it would have a benefit to the donor’s business. For example, a local party store would be more likely to donate close to a holiday when the publicity could bring in additional business. Publicity is always a great exchange for a donation and is a win/win incentive.
• Relationships count. If you visit businesses that have a potential 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.

In difficult economic times everyone is a little more nervous, but history shows that people are still giving, albeit a little less generously, but they are still giving. What are some of your methods for asking for donations in a tough economy?

Remaining Optimistic About the Economy

According to the Associated Press, “Billionaire Warren Buffett said unemployment will likely climb a lot higher depending upon how effective the nation’s policies are, but he remains optimistic over the long term.

Buffett said the nation’s leaders need to support President Barack Obama’s efforts to repair the economy because fear is dominating Americans’ behavior and the economy has basically followed the worst-case scenario he envisioned.

‘It’s fallen off a cliff,’ Buffett said Monday during a live appearance on CNBC. ‘Not only has the economy slowed down a lot, but people have really changed their habits like I haven’t seen.’”
Perhaps we needed to change our habits. President Obama told the nation that it would take time for his economic stimulus package to begin working. The President has only been in office for 49 days and yet there are those who are criticizing that he is taking on too much while others wonder whether enough is being done with the banks.

It seems like a little patience is in order here. I know that we get information instantly these days, however, we need to stand back and wait a little bit while the plans are implemented. Perhaps we need to let some of the banks fail or let companies like AIG reorganize themselves and stop throwing more money at dying companies.

Like a bleeding patient in an emergency room, the preliminary measures taken are to stabilize the patient’s vital signs. Only when it is clear that the patient is stable can any additional efforts be made to “fix” the problem. We need to stop the bleeding that appears to be coming from the housing market and then go back and infuse money into the banks.

Until our economy is stabilized, the nonprofit sector will continue to feel its effects. What are you doing to remain optimistic in this difficult recession?