credibility – Carolyn's Nonprofit Blog

In fall 2019, I drafted my annual prediction post about what lies ahead for nonprofits. During 2020, our world was turned upside down by COVID-19. You might like to read my post, “During Good Times, Don’t Forget to Prepare for Rainy Days.” In addition, see, “Economy and Philanthropy,” written originally during the economic downtown of the early 2010s. I caution fundraising staff members to do their research carefully. Some philanthropists are negatively impacted during an economic decline, but others thrive. Shift your thinking. You might enjoy, “High Tech Prospect Research Worth the Investment.” In spring 2020, I gave two video presentations about how I conduct research and links to those are provided.

Federal Funding

I still believe nonprofits must continue broadening their funding sources by identifying and embracing a wider variety of types prospective donors (individuals, families, corporations and foundations), and to reduce over reliance on federal funding sources.

Ruth McCambridge wrote for Nonprofit Quarterly, “Implosion of $47M Nonprofit Highlights Risks of Government Dependency” (October 2019). “The demise of YPI … was predictable but only to those who understand the business model dynamics of government-funded agencies. Rapid growth that shifts the proportions of government restricted dollars with unrestricted dollars is extremely dangerous.”

I rest my case.

The website Republican Views On the Issues (which may no longer be available online), shared insights into what the party believes.

“The government should only intervene when society cannot function at the level of the individual. This also means that the party believes in keeping the government as close to the individual as possible, and should be focused mainly on the state and community level, not centered at a federal level.”

As an aside, with all the heated arguments at the federal level this year between Republicans and Democrats, what has been lost is a meaningful conveyance of the core values of Republicans, many of which have merit. But we seem to have lost site of them. Let’s hope the polarization we are seeing in Washington, D.C. will be reduced in the coming year.

Update: have you downloaded the Grants.gov app yet? #Handy

Cryptocurrencies

The past few years, I have studied cryptocurrencies for social good, and I maintain a blog page with links to helpful resources. 2019 has been a roller coaster ride for cryptocurrencies.

Investopedia notes in, “Where is the Cryptocurrency Industry Headed in 2019?” (September 2019):

Bitcoin and other crypto currencies have emerged as a new asset class that has seen extraordinary returns over the past decade.
After reaching nearly $20,000 in early 2018, Bitcoin fell to just around $3,000 as the rest of the crypto market also fell.
2019 has proven to be a year of recovery, with Bitcoin strengthening to above $10,000, but will the bull market last?
Several new developments such as increased institutional interest, pending ETF approval, and the popularity of stablecoins suggest a continued positive trend.

I continue to believe crypto and blockchain are forces to be reckoned with going forward. Check out this list of companies that accept Bitcoin from 99Bitcoins. And it keeps growing!

Here is a helpful discussion from BitPay, “BitPay Supports Over 100 Non-Profits Processing $37 Million Since 2017” (June 2017). “The Tony Hawk Foundation becomes the latest major charity organization to open up its donation efforts to blockchain payment efforts, joining other notable organizations such as the American National Red Cross, the Electronic Frontier Foundation (EFF), Greenpeace, The San Francisco Foundation, Heifer International, The Water Project, Teach for America, United Way Innovation Fund and the Wikimedia Foundation.”

How it works:

“In accepting Bitcoin donations through BitPay, the Tony Hawk Foundation and other charitable organizations can broaden its donor base while still being shielded from the price volatility that can occur with Bitcoin transactions. The customer makes the donation in Bitcoin or Bitcoin Cash and BitPay verifies the funds and accepts the Bitcoin or Bitcoin Cash on behalf of the organization. The organization has the option to take Bitcoin, Bitcoin Cash or fiat currency or a split. If the organization chooses to take 100% fiat currency, the dollars are deposited into the organization’s bank account the next business day minus a 1% fee BitPay charges for the entire process. This fee is significantly less than the fees charged by credit cards allowing organizations to keep a larger percentage of overall donations. The organization is also protected from any Bitcoin price volatility.”

Hence, despite volatility in the cryptocurrency market this year, I believe the crypto space will continue to grow in the years ahead. Again, check out my blog page which includes a variety of helpful links for follow-up.

Crowdfunding and Major Gift Fundraising

On another front, crowdfunding continues to gain popularity. My resource page for nonprofits also provides helpful guidance for those wishing to embark on crowdfunding campaigns. I would also like to add a book to your reading list, “Crowdfunding for Social Good: Financing Your Mark on the World” by Forbes Contributor Devin Thorpe.

“Crowdfunding for Social Good is both practical and inspiring, featuring the stories of real people who have successfully raised big money using crowdfunding and practical advice to help you do the same. Crowdfunding is the newest way for nonprofits and social entrepreneurs to raise money for their causes, projects and companies. By reading this book, you can join the thousands who have successfully raised money to change the world. Learn how to organize your friends, colleagues and volunteers to help you raise big money. Gain insight into creating a video that will help you spread your message via social media. Read how to “start before you start” so you can have 30% of your goal raised before you even launch your crowdfunding campaign.If the only thing preventing you from changing the world is the money you need to do it, you are out of excuses. You can raise the money you need to leave your mark on the world with Crowdfunding for Social Good.”

As I have mentioned in past nonprofit predictions, the traditional “donor pyramid” is being turned upside down. I know many nonprofit organizations that would prefer a broad-based approach to major gift fundraising (multiple smaller donors), rather than embarking on traditional, somewhat old fashioned fundraising campaigns that are promoted by many consulting firms.

But my same caution remains. Crowdfunding requires advance research, planning, scheduling, attention to detail, and continuous monitoring and communication, including long after a crowdfunding campaign attains its goal. Crowdfunding is not simply an “easier” way to raise money. And many – if not all of these above factors – are involved in traditional major gift campaigns.

Traditional major gift campaigns are not dead, but they are having to morph as new technologies improve internal and external communications, volunteer performance and data collection overall.

I would also like to point out a series of articles on my blog that start with, “Are You Ready for a Capital Campaign.” I believe the traditional feasibility study needs to be reworked. In my post, “Nonprofits and Startups | Bird of a Feather” I note that traditional startup methods promoted by the corporate sector could be used to help nonprofits develop their own major gift campaigns internally. I still hope 3 Day Startup will consider developing an intensive program along these lines specifically for nonprofit organizations! Stay tuned.

Data

To collect data, interpret it properly, to manage it across departments, and to continually make improvements for the benefit of the organization’s future requires trained nonprofit staff. But sometimes it also takes convincing nonprofit leadership that hiring data managers makes sense.

A 2019 study from ORACLE NetSuite makes some powerful arguments about the importance of collecting and reviewing nonprofit data for more positive, data-informed future.

“Nonprofit organizations are struggling to demonstrate the outcome of their work according to a new study conducted by Oracle NetSuite. The study, Connecting Dollars to Outcomes, which provides insights from more than 350 senior nonprofit executives in the U.S., found that while nonprofit executives believe that outcomes measurement supports their top three priorities for 2019 – financial stability, staff turnover and donor retention—only 29 percent of nonprofits are able to effectively measure the outcomes of dollars invested.”

You can access the study via the press release, “Where Do Donations Go?”

Happily, software companies like this also have nonprofit donation programs – both software and expertise (if you cannot afford to hire a staff member but believe in the need). You should also avail yourself of technology discounts provided via TechSoup. It is free for nonprofits to sign up, and a variety of products are available along these lines. To find providers of data skills and related technical training, see my Professional Development Resources.

Donor Advised Funds

Having conducted a great deal of hands-on research using Candid’s Foundation Center database at our new Austin Central Library (where one can access it free of charge), I know donor advised funds are only growing larger and becoming more popular. They come to the top of almost every “search.”

Hence, nonprofits must educate and cultivate professional advisors as well as donors. This is a challenge because it can be difficult to discover the people behind donor advised funds. It is also true that extra diligence about how your nonprofit looks online and establishing credibility at fundamental levels is more important than ever. I have done some public speaking about how nonprofits can achieve greater credibility and ramp-up their major gift efforts, for instance. My blog and ISSUU page contain quite a bit of helpful information in this regard. But if you need more help, reach out via my secure contact form.

In my article, “Building Relationships with Professional Advisors” (one of the first on Carolyn’s Nonprofit Blog and continually updated), I also note that Baby Boomers and older adults are a growing sector of our nation’s population, highly inclined to charitable giving and volunteering. The nonprofit sector must avoid stereotyping, and focus to a greater degree on engaging these age groups in the months and years ahead. We also need nonprofit support organizations to offer discussions online and during professional conferences about how best to work with professional advisors, and how to break down barriers to meaningful communication with them.

Last But Not Least

One topic that bears discussing is advance preparation for disasters and emergencies. Follow this link to TechSoup documents you can download regarding disaster planning and recovery. Be mindful that your nonprofit serves an important function in society. Your smart smart thinking and planning can save lives and help your nonprofit continue meeting its worthy mission.

Best wishes for your fundraising success,

Carolyn M. Appleton | November 17, 2019

The graphic used to illustrate this post was composed by me using Adobe Creative Cloud.

This post was written for and published by Qgiv in 2019. Since then, our world has been through traumatic times with the pandemic. Nonprofit organizations have been pushed even further online in terms of donor communications and “electronic giving.” To learn about the changes 2020 brought to our sector, follow the link to, “Navigating the Unknown: 2020 Findings to Future-proof Your Fundraising.”

As I noted in my original article, after many years working side-by-side with nonprofit staff and volunteers on major gift fundraising campaigns across Texas, I have discovered that how your organization looks online – its website, gift processing, and its social media platforms – influences how donors, prospective donors and professional advisors perceive a nonprofit organization’s ability to raise and to manage significant funding.

I once suggested to one of my prior donors that she consider supporting a nonprofit organization with which I was volunteering. It was doing critically important work across the nation—including our local community. I shared the nonprofit’s website address and sang its praises. A few weeks later, she responded. “Well, I looked at the website. It doesn’t look very sophisticated.” My heart sank. A cursory impression of the organization online did not impress this potential donor.

Building Your Nonprofit's Credibility with Qgiv

I have also found donors peruse Facebook and other social media platforms for information in advance of making funding decisions. “It doesn’t look like much is going on,” and, “whomever is managing that page isn’t paying attention,” are two kinds of remarks I have heard.

Yet as suggested earlier, these nonprofit organizations were doing quality, truly essential work in their respective communities. But the staff complained they were so busy operating their programs they didn’t “have time” to “bother” with their online presence. But today, failing to understand the importance of your nonprofit’s online presence can mean missed donations and partnerships!

Nonprofits must have a polished presence online to ensure donor and partner confidence. To make matters more complicated, a growing number of professionals like accountants, attorneys, investment, and banking professionals are being asked to assist donors in making gift decisions, nonprofits must be extra cautious. While donors may have your nonprofit in their hearts, their professional advisors are trained to review your nonprofit’s worthiness and ability to receive and manage donations more objectively. You must be prepared to meet the needs and expectations of both.

I recently worked with a nonprofit organization recovering from a natural disaster in Texas that wanted to raise more funding and attract a broader audience and donor base. Since its founding, this nonprofit had been relying on receiving mail – including checks from donors – via the U.S. Postal Service. Donors could also stop by the office to hand deliver checks or to fill out credit card forms in person, or complete a donation online using PayPal. Although PayPal has become more sophisticated and user-friendly, people chaffed at the fees involved and the nonprofit urgently needed a gift processing upgrade.

The process involved both traditional nonprofit fundraising research and grant proposal preparation, and more new social media communications. In addition to creating a more modern, plugin-free WordPress website using a free template, I created new social media profiles; cleaned up the longtime Facebook page (which was cluttered with old and outdated information) and had it officially verified by Facebook; and I suggested the nonprofit engage Qgiv for its online donation processing.

In 2018, I had the good fortune of meeting two members of the Qgiv leadership team in Austin during a Nonprofit Tech Club Austin program at a startup hub called Capital Factory. During that presentation, I learned how innovative and easy to use Qgiv is, and that Qgiv is cost effective and secure. I suggested my nonprofit client give Qgiv a try. By doing so, I felt they would provide their donors with more options for donating and registering for events via American Express, Discover, Visa, MasterCard, and eCheck. In fact, I set up their basic Qgiv system myself.

For their new website, WordPress established a much more sophisticated online image and a more meaningful presence for very little money. All plugins were removed (which meant no more updating them – that was a big problem with the former website). With Qgiv, all that was required for the various donation forms and event registrations was a secure link. No muss, no fuss, and so many more options for giving and registering online. Now, those Qgiv links take donors and event attendees to separate online pages. Once the form is completed, funds are transferred directly and immediately from the donor to the nonprofit’s bank account. There is no “snail mail” service involved, no hard copy check. This creates a seamless, sophisticated system that both ensures donor confidence and protects everyone’s security. Donors can even pay for their own gift processing fees as part of their donation (which happily, many do). This is called GiftAssist.

In addition, Qgiv donation forms look great when shared on social media. This helps set a high tone for the nonprofit, which goes back to my original thesis: nonprofits must look polished online and sophisticated in terms of their fundamental operations.

This nonprofit is now sending a clear message: it can handle a variety of sophisticated financial transactions securely online. Donors do not have to send checks in the mail nor drop them off in person. Certainly, donors can still do that, but providing online options using the most advanced gift processing technology available today shows donors, partners, and professional advisors are – or will be – dealing with a nonprofit that can also handle major gift contributions.

Qgiv has become an integral part of an innovative new approach for this nonprofit, bringing it solidly into the 21st century and poised for fundraising success going forward.

If you have an interest in Qgiv for your nonprofit, please use my blog’s secure contact form to reach me. I have installed it myself, by hand, and I would love to help you do the same!