Top Concurrent Fundraising Ideas to Maximize Revenue

Guest post by SchoolAuction.net

When it comes to raising money for your group, why settle for just one fundraiser when you can run several at the same time? By planning multiple events at once, you can welcome a larger fundraising impact and make the most of your donor engagement.

Combining different fundraising ideas allows you to tap into the power of giving people more options to support your cause, which not only helps raise more money but also engages several donor interests at once. In this quick guide, we’ll explore concurrent fundraising ideas that can save your organization time and money while maximizing your donor engagement opportunities. Let’s get started!

Live Auction and Raffle

Live auctions and raffles are a winning fundraising combination because live auctions cater to the thrill of bidding while raffles still appeal to those who’d like to win without the high risk. At a live auction, participants are kept on the edge of their seats by an auctioneer’s quick pace of selling prized items. Some supporters thrive in a live auction environment, while others might be intimidated or prefer to watch.

On the other hand, raffles are popular because they’re accessible to everyone. Unlike auctions, where the highest bidder wins, raffles give everyone who buys a ticket an equal chance to win, regardless of how much they can afford to spend. When deciding which item to raffle off, choose an auction item you’d normally sell at a silent auction and see if you can use a raffle to exceed the item’s fair market value.

Here are a few types of raffles organizations can run:

• Standard raffle: Participants buy low-cost tickets for a chance to win a prize, with winners chosen at random from the pool of entries. 

• Golden ticket: This type of raffle offers a limited number of higher-priced tickets for a chance to win a high-value prize, typically the choice of any live auction item.  

• Tricky tray: Also known as a basket raffle, this involves participants buying tickets to place bids on baskets of items or services that are displayed on trays or tables. Each basket has its own mini raffle, with participants placing their tickets in containers next to the baskets they want to win.

Combining live auctions with raffles creates a dynamic fundraising duo that caters to a broad audience, blending the excitement of live bidding wars with the accessible, low-risk appeal of raffles. 

Live Auction and Online Auction

Sometimes a live auction will leave you with more items than you originally planned. That’s okay, in this case, you can use it to your advantage by running an online auction afterward. SchoolAuction.net explains how this works—combine live and online auctions to maximize revenue. First, host an engaging live auction gala. Then once the event is over, host an online auction for the remaining items that were not bid on.

Here are the benefits of combining these two:

• Maximized revenue: Combining the two auction types expands your bidder pool, allowing participants from different locations to bid. More bidders equals more revenue. 

• Less item waste: Items that didn’t sell at your in-person auction now get another chance to be sold during your online auction. Since online auctions allow for a broader audience to view and bid on items, this increases the likelihood of each item being sold.  

• Re-engaging donors: Combining a live auction with an online auction offers a dynamic and flexible participation experience, accommodating those who cannot attend in person but wish to contribute online. This can renew interest among previous donors by providing them with a convenient way to engage.

• No need to plan a separate event: An organization can maximize fundraising efforts with this combination since it removes the need to plan and execute separate events, which reduces both logistical complexities and costs.    

Combining live and online auctions is a strategic and efficient approach to enhance your fundraising. By leveraging both formats, you can capitalize on unsold items and expand the reach to a wider audience, in turn maximizing revenue.    

Silent Auction and Entertainment Night

Planning an entertainment night alongside your silent auction is a great way to keep attendees engaged while they browse items. Silent auctions pair well with planned entertainment to boost funds and liven up the quieter atmosphere. Main entertainment ideas include music, a talent showcase, or a cause-related speaker or presentation.

However, you aren’t limited to solely relying on raising money through the silent auction. With the right software, you can also execute the following:

• Online merchandise stores offer an additional revenue stream by giving supporters an option to purchase branded merchandise at their convenience. Merchandise from online stores also increases your organization’s visibility.

• Text-to-Give allows supporters to contribute instantly with just a few taps on their cell phones. 

• Crowdfunding enables your organization to tap into the power of community fundraising and social sharing, reaching beyond your auction attendees to a wider audience.

By diversifying how funds are raised, nonprofits can capitalize on the enthusiasm of a live event to drive donations, while also capturing additional revenue opportunities from supporters at home. 

Peer-to-Peer Fundraising and Matching Gifts

For nonprofits especially, matching gifts provide a game-changing opportunity to double the impact of donations. You can take advantage of them by partnering with a corporate sponsor or other philanthropic entity to run a matching gift donation challenge. 

Then, you can launch your matching gift challenge with peer-to-peer fundraising to effectively combine the power of a community-driven platform with the financial leverage provided by corporate matching. 360MatchPro explains how you can get started in four steps:

1. Identify potential donors. Start by locating a generous corporate sponsor who will back your cause in exchange for public recognition. Look for a partner with a robust CSR program that shares the same values as your nonprofit.

2. Define the challenge’s terms and match ratio. Set the match ratio to define how much the corporate sponsor will give for every dollar individual donors contribute. For example, a 1:1 match ratio means the sponsor will match donations dollar for dollar, doubling every gift. Then, list out your challenge’s total fundraising goal and time frame.

3. Promote the challenge to your network using a dedicated website landing page. Use SMS messaging, email marketing, and social media outreach to link to your matching gift landing page. By using a multichannel marketing strategy, you’ll reach more donors and get your donations matched more quickly.

4. Track progress toward your fundraising goal. Update your supporters as more matches roll in to encourage them to reach your fundraising goal before the time runs out. You can do this with dedicated tracking tools to monitor real-time progress. 

After your donation challenge comes to a close, don’t forget to follow up with the results and acknowledge the supporters who made it happen. Craft thoughtful emails, hand-written thank you cards, or social media shoutouts to recognize your donors’ generosity. 

Running concurrent fundraisers significantly amplifies a nonprofit’s ability to engage different segments of its audience and maximize revenue. Be sure to assess your audience's preferences beforehand to tailor your fundraising strategy effectively.

The preceding post was provided by a guest author unaffiliated with DonationMatch. The views expressed within do not directly reflect the thoughts or opinions of DonationMatch.

How Hybrid Work Models Are Impacting Nonprofit Organizations

Guest post by Jill Krumholz, Managing Partner at RealHR

In the rapidly evolving work landscape, hybrid work has become an increasingly popular option for companies seeking to retain elements of the traditional workplace while incorporating the flexibility and adaptability of remote work that many workers and employers have come to expect over the past several years. 

The hybrid model requires any business to rethink everything from floor plans to budgets to management styles, but hybrid work offers mission-driven organizations particularly unique opportunities and challenges. 

The Shift to Hybrid Work 

Like many organizations, nonprofits have undergone a transformative shift in organizing their workplaces and workforces. Technological developments had begun to drive an increase in remote work even before the COVID-19 pandemic. Still, over the last several years, necessity has accelerated that shift and forced employers to embrace creative, often personalized solutions to the issues of where and when people get their work done. 

This was a bumpy road for many, but as systems were developed and technologies improved, employers and employees realized that workplaces could be designed to allow for greater flexibility and accommodate employee needs without compromising productivity. 

In light of the easing pandemic restrictions, many nonprofits are contemplating a “new normal.” Many seek to revert to the traditional on-site setup while still embracing the advantages of remote work, benefiting both employees and employers. The hybrid work model aims to blend on-site and remote workdays, offering flexibility while nurturing teamwork and structure found in shared physical workspaces. This new model brings benefits, opportunities, and challenges to nonprofit organizations.

Positive Impacts of Hybrid Work on Nonprofits 

Employee Satisfaction and Retention 

Offering flexibility in work arrangements positively impacts employee satisfaction and retention rates, which in turn affect a nonprofit’s ability to deliver its mission. Hybrid work can allow nonprofit employees to better balance their professional and personal lives and resolve conflicts between work and other priorities. At the same time, requiring a degree of in-office time can help resolve issues of disengagement, burnout, and isolation that some fully remote workers grapple with. Hybrid work also allows nonprofits to prioritize the well-being of their staff to create a more loyal and engaged workforce; in addition, it’s a lower-cost benefit that budget-limited organizations can use to attract new talent.

Access to a Broader Talent Pool

Geographic constraints are diminished in a hybrid work environment, enabling nonprofits to tap into a more diverse talent pool and reach passionate potential team members across a wider geographic area. 

While fully remote jobs offer the greatest flexibility in this respect, hybrid jobs that only require employees to commute once or twice a week can appeal to candidates who live outside a daily commuting distance. This increased access to skilled individuals can enhance the organization's capabilities and effectiveness.

Cost Savings and Resource Allocation 

The hybrid model brings about cost efficiencies for nonprofits by reducing office space and facility expenses. 

Perhaps your organization only requires employees to come in for weekly meetings or collaborative working sessions; in that case, permanent individual offices or cubicles can be replaced with meeting spaces or open-plan work areas. 

These savings can be redirected toward supporting the organization's core mission and programs. Additionally, the flexibility of hybrid work as a lower-cost, high-impact benefit is an asset to budget-conscious nonprofits who prioritize employees through thoughtful, effective compensation and benefits.

Challenges for Nonprofits in the Hybrid Work Model 

Maintaining Organizational Culture

Nonprofits often thrive on a strong sense of community and shared values. Maintaining this culture becomes challenging in a remote or hybrid work setting with limited physical interactions. While some roles readily lend themselves to remote work, others inherently require a physical presence, such as those involving direct community engagement or constituent services. 

This may result in closer relationships within particular groups of employees, and care should be taken to prevent an us-and-them mentality from developing. Team building is an ongoing process for organizations with these kinds of splits. Time spent on-site should be used for bonding and working to keep staff on the same page, invested in each other and the organization. Maintaining culture is a large and important task with which managers, and even leadership, may need guidance.

Furthermore, the dichotomy between on-site, remote, or hybrid jobs amplifies the need for nuanced policies and practices tailored to different positions within an organization. An experienced HR consulting firm can assist in creating successful hybrid work strategies and supporting their implementation.

Communication and Collaboration Challenges

Effective communication becomes more crucial than ever in a hybrid work model—for the creation of a strong culture but also for doing the work of the organization itself. 

Nonprofits must find innovative ways to foster collaboration and ensure that team members remain connected and engaged. This exciting challenge can drive organizational growth, but it also requires real effort and adaptability on the part of leadership and management. Striking a balance between enough communication and excessive meetings, messages, and touchpoints will take ongoing attention from management and a collaborative spirit throughout the organization.

Technology Gaps and Security Concerns

Nonprofits need to invest in robust technology infrastructure to support remote work. While remote-collaborative technology has grown by leaps and bounds in the past several years, work styles must still be adapted to these new platforms, and the learning curves and support needs of employees adopting new systems will vary. 

Additionally, cybersecurity becomes a critical consideration to protect sensitive donor data and maintain the integrity of operations. IT departments must step up as critical partners to other teams across their organization, not only in developing and implementing nonprofits’ technology strategies but in providing timely, appropriate assistance to employees in and out of the office.

4 Strategies for Optimizing Hybrid Work in Nonprofits 

To make the most of the hybrid work model, nonprofits can focus on the following strategies:

1. Implementing effective communication models. Utilize a combination of virtual communication tools to facilitate seamless collaboration and maintain open lines of communication.

2. Investing in technology and training. Prioritize technology investments and provide training to ensure that employees are equipped with the skills needed for successful remote work.

3. Prioritizing mental health and well-being. Incorporate initiatives that prioritize mental health, such as virtual wellness programs and flexible schedules, to support the overall well-being of nonprofit staff.

4. Balancing remote and in-person collaboration. Strive for a balance between remote work and in-person collaboration, recognizing the importance of face-to-face interactions for team cohesion.

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The impact of hybrid work on nonprofit organizations is multifaceted, bringing both opportunities and challenges. 

Successfully adopting a hybrid work model at your nonprofit may unearth areas for improvement or gaps in knowledge or strategy, posing challenges and opportunities for growth and innovation. By continuously evaluating and refining their approaches, nonprofit organizations can harness the benefits of hybrid work to further their missions and create lasting social impact.

Jill Krumholz, Managing Partner

Jill brings to RealHR Solutions experience as a business owner, executive search consultant and corporate HR professional. Throughout her career, she has had the ability to build strong relationships, identify client needs and help company’s find solutions. As a search professional she used these strengths to source and identify talent. Before joining RealHR, Jill was a Principal at Charleston Partners, a global executive search and talent advisory firm for Fortune 500 companies. She was also a Partner at Hayden Resource and previously founded her own search firm. Her prior HR experience includes retail and healthcare industry HR and operations. management positions. Jill holds a Masters in Industrial Social Work from Fordham University and a B.A. from CUNY City College. She is currently an active member of The Society of Human Resources Management nationally and locally. 

The preceding post was provided by a guest author unaffiliated with DonationMatch. The views expressed within do not directly reflect the thoughts or opinions of DonationMatch.

4 Survey Strategies for Soliciting Donors’ Feedback

Guest post by Mogli

Donating to a nonprofit or school is a highly personal experience. It’s not just about giving some money and walking away. Donors want to make an impact with their funding, but they also want to be a part of your community. By donating, they’re saying “I want to take an active part in furthering your cause.” But if you don’t invest in finding out how they want to take part, you risk losing their involvement and future donations.

That’s why asking donors for feedback is so important. Whether you want to engage parents in school fundraising or learn more about your nonprofit’s new donors, sending out a survey is the perfect answer. We’ll cover four strategies you can use to craft effective, engaging surveys for your donors:

1. Write questions based on your goals

2. Use a variety of survey formats

3. Leverage automation tools

4. Segment donors to ensure surveys are relevant

As we explore these strategies, we’ll also discuss technologies like your donor database and SMS marketing apps that can help you make the most of them. Let’s get started!

1. Write questions based on your goals

The first step in creating surveys that resonate with donors and provide actionable feedback is to set clear goals. Before you start designing a survey, think about what you want it to accomplish for your organization. Common survey goals include:

• Boosting donor retention. Double the Donation’s donor retention guide explains that asking donors for feedback shows that you value their opinions and helps you build lasting relationships. If your goal is to retain donors, ask them if they enjoyed recent fundraising events, how you could better meet their needs, or what types of programs or campaigns they’d like to see in the future.

• Learning donor preferences. Surveys are an easy and efficient way to collect data about your supporters’ personal interests and preferences. Ask how they’d prefer to be contacted, what their charitable interests are, and why they joined your community in the first place. This information helps you segment donors and tailor your fundraising appeals to their interests.

• Improving your fundraisers or programs. If you want to host better fundraisers or launch more impactful programs, who better to gather ideas from than the donors who participate? To improve your school fundraisers, for example, you might ask what type of event parents want to attend or if they’d prefer selling products (like cookie dough) with their children to raise money. Or, ask recurring donors for feedback on your monthly giving program to improve its appeal.

These goals aren’t mutually exclusive—you may be able to accomplish all three with one great survey. However, determining your top priority upfront will help you narrow down your questions and ensure you get the answers that are most important to your goals.

2. Use a variety of survey formats

Remember when you used to fill out surveys on paper? Now, you can send donors virtual surveys via email, social media, and even text message. Different survey formats have distinct benefits and drawbacks, so it’s best to use a variety to make the most of all of them. Plus, this will differentiate your surveys enough to keep donors engaged even if they complete multiple surveys within a short period of time.

For instance, throughout the year you might use a mix of:

• Text surveys: According to Mogli’s text marketing guide, text surveys engage recipients while providing immediate feedback for your organization or school. With the right tools, you can create interactive surveys that take place entirely within donors’ messaging apps. These surveys are quick and easy for donors to complete.

• Email surveys: Your donors are likely used to filling out surveys from businesses via email, so receiving a survey from your organization in their inbox will feel natural. You can use free online tools like SurveyMonkey or Google Forms to create basic surveys and distribute them to donors’ emails. 

• In-person interviews: Surveying individual donors in person takes more time and effort, but it’s one of the best ways to get authentic feedback and strengthen your organization’s relationships. While conducting interviews, be sure to record video or audio or take extensive notes on the donor’s responses. 

Along with varying the format of your surveys, it’s also crucial to vary the type of questions you ask. Include a mix of open-ended, multiple-choice, and short-answer questions so that donors stay engaged throughout the survey and have the opportunity to share more extensive thoughts.

3. Leverage automation tools

There are plenty of technologies out there that you can use to streamline survey creation and management, but one of the most impactful features is automation. Automation tools can save your team time, seamlessly collect and organize answers, and simplify the process for donors. 

You can leverage standalone survey automation tools or automation features within comprehensive text or email marketing software. For example, if you use text marketing software with automated survey capabilities, you can:

• Create simple and complex surveys. With the right tools, you can design surveys that branch off in different directions based on donors’ answers. For example, after asking if a donor enjoyed participating in your school’s latest fundraiser, you could set up different lines of questions for those who say yes and those who say no. This type of automation enhances your surveys’ personalization and can inspire better responses. 

• Automatically send data to your CRM. If you use a text marketing app that integrates with your CRM (such as a Salesforce-native app if you use Salesforce for Nonprofits), donors’ survey responses will automatically flow into the correct profiles in your database. From here, you can easily use this data to guide future communication strategies and fundraising appeals.

• Add surveys to other automated journeys. Say that you set up a string of automated thank-you messages that gets triggered when a supporter donates. With the right tools, a survey can fit seamlessly into that cadence! For example, you might send an initial thank-you text immediately, then a survey about the donation experience the next day.

As you explore your options for survey automation tools, pay attention to features like branched logic surveys and CRM integrations. Look for a tool with an intuitive survey builder that easily allows you to design complex surveys without needing to be a tech expert.

4. Segment donors to ensure surveys are relevant

Finally, all of the strategies we discussed so far can be improved just by segmenting your donors. You know how important it is to send relevant, personalized donor communications to show donors you value them as individuals. 

The same is true for surveys. If a survey is relevant and appealing to the donor who receives it, they’re likely to ignore the request for feedback, or worse—opt out of future messages completely. 

To avoid this, create a variety of donor segments to send different surveys to. This might include sending a survey about volunteer opportunities to all donors who have volunteered in the past, or sending first-time donors a welcome survey designed to learn more about their interests. Use any existing segments in your donor database as a starting point, then don’t be afraid to create new groups as needed.

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These strategies can make a big impact on your relationships with donors, but sending the survey is just the beginning. After receiving responses, make sure to thank every donor who took the survey and act on the feedback you receive. If one donor gave you a particularly good idea for your next fundraiser, let them know with a personal thank-you email. Show donors that you take their feedback seriously, and they’re bound to feel closer to your organization.

The preceding post was provided by a guest author unaffiliated with DonationMatch. The views expressed within do not directly reflect the thoughts or opinions of DonationMatch.

Nonprofit Risk Management: 5 Frequently Asked Questions

Guest post by Jitasa

For nonprofit leaders, it’s crucial to understand what steps to take when unexpected negative situations arise, which is why risk management is a key part of successful strategic planning. While taking some risks is necessary for your organization to grow, even the risks you take on voluntarily can become harmful without careful management.

Especially when everything is going well for your nonprofit, it can be hard to know where to start with risk management. Fortunately, this guide will help you develop an actionable strategy for your organization by answering these frequently asked questions:

• What is nonprofit risk management?

• What effects can risky situations have on my nonprofit?

• What are the most common types of nonprofit risk?

• How do I conduct a risk assessment for my organization?

• How can my nonprofit mitigate and prevent risks?

Keep in mind that the most effective risk management plans are proactive rather than reactive. Instead of waiting until a risky situation comes up, start while your nonprofit is in a good position, and include preventative measures in your plan as well as mitigation strategies. Let’s dive in with an overview of what risk management is in a nonprofit context.

What is nonprofit risk management?

Jitasa’s nonprofit risk management guide defines risk as “the probability that something bad might occur. This might be due to internal circumstances at the organization itself or external factors that pose a greater social risk.”

Based on that explanation, risk management is the process of identifying, assessing, and mitigating internal and external circumstances that could result in something negative happening to your nonprofit.

What effects can risky situations have on my nonprofit?

Not all risks will affect your nonprofit to the same degree or impact the same areas of your operations. However, risky situations that go unchecked can bring about a variety of negative outcomes, including:

• Financial loss. Whether this takes the form of broken contracts, declining investments, or revenue shortfalls, unmanaged risks can have significant effects on your nonprofit’s budget.

• Legal consequences. These can range from lawsuits against your organization to the loss of your 501(c)(3) status.

• Reduced ability to fulfill your mission. Risks can inhibit your organization’s daily activities in many ways, from lowering fundraising efficiency to directly impacting the services you deliver.

• Reputation damage. According to NXUnite, negative publicity and controversy surrounding your nonprofit can break supporters’ trust and cause them to stop contributing to your work.

Not only do these impacts highlight the general need for nonprofits to have risk management plans, but they also show how important it is for each organization to understand what types of risk are most likely to affect them so they can be prepared.

What are the most common types of nonprofit risk?

Just as every nonprofit is different, so are the risks that will have the greatest consequences for each organization. However, the most common nonprofit risks to be on the lookout for include:

• Cybersecurity violations that can expose sensitive information about your organization, its staff, and its supporters.

• Fraud, particularly financial fraud and fraud by impersonation (in which a scammer sets up a fake online donation page, collects “contributions” under your nonprofit’s name, and keeps the money for themselves).

• Theft of money or technology, which is often (unfortunately) perpetrated by someone close to the organization.

• Non-compliance with federal and state regulations, especially because nonprofits are subject to some rules that for-profit organizations aren’t.

Several of these risks—especially financial fraud and incidents of non-compliance—can happen either intentionally or unintentionally. Be aware of this as you identify potential risks for your nonprofit to ensure you don’t overlook issues that could occur by accident.

How do I conduct a risk assessment for my organization?

Risk assessments allow you to determine what risks could affect your nonprofit and how you should go about mitigating them. There are three basic steps to a risk assessment:

1. Identify the various types of risky situations that could impact your organization.

2. Evaluate how likely each risk is to occur and what its most probable consequences are.

3. Prioritize all of your nonprofit’s risks based on both likelihood and impact.

You can either conduct your risk assessment internally using one of the many checklists available online or ask a third-party nonprofit risk management professional to provide an external perspective on your organization’s situation. Both options have advantages and drawbacks—consider your nonprofit’s timeline, budget, and bandwidth as you make your decision.

How can my nonprofit mitigate and prevent risks?

After you assess your nonprofit’s situation and come up with a prioritized list of risks, it’s time to develop your management plan. Start at the top of your list and brainstorm ways to alleviate each risk if it were to occur—or better yet, prevent it from becoming an issue in the first place.

Here are some common risk mitigation strategies your nonprofit might try:

• Tightening data security measures. Consider implementing two-factor authentication on all of your organization’s essential accounts, encrypting your databases, and investing in a PCI-compliant payment processor to keep donors’ information safe. Additionally, practice good nonprofit data hygiene to ensure important information isn’t accidentally misplaced and left vulnerable.

• Reviewing your fiscal policies. Make sure your organization has procedures in place for requesting, accepting, and tracking various types of gifts, reimbursing expenditures on behalf of your mission, and handling conflicts of interest. This protects against all sorts of fraud and compliance issues, in addition to being essential for sound day-to-day operational and financial management.

• Establishing internal controls. In addition to your major fiscal policies, internal controls are procedures specifically designed to prevent risks. For example, many nonprofits require two signatures on checks over certain amounts to reduce the risk of financial fraud.

• Improving communications. Make sure all of your organization’s essential information is properly recorded and reported, from donations made to project updates. Risks can arise when nonprofit leadership, staff members, and volunteers let communication fall by the wayside, so work to prioritize communication among your team.

Once you’ve decided which strategies to incorporate into your risk management plan, share the plan with your board of directors so they can sign off on it and provide oversight as you implement your ideas. Then, hold training sessions for staff members to establish a risk-prevention mindset at your nonprofit and ensure that everyone knows how to mitigate any risks that may arise as they go about their daily activities.

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Nonprofit risk management is an ongoing process. After implementation, monitor how it’s going for six months to a year to ensure your strategies are working. Then, revisit your plan at least once a year to re-evaluate your risk management priorities and develop mitigation strategies for any new risks that have come up since your last review to ensure your organization remains protected long term.

The preceding post was provided by a guest author unaffiliated with DonationMatch. The views expressed within do not directly reflect the thoughts or opinions of DonationMatch.

5 Steps to Take Before Implementing a New Nonprofit CRM

Guest post by Redpath Consulting Group

Supporter relationships are the foundation your nonprofit is built on, and to manage those relationships, you need the help of a capable constituent relationship management (CRM) platform. 

The right CRM will not only allow your team to keep track of your donors, but it will also help you improve operations across the board—from increasing fundraising efficiency to simplifying donor communications. However, making the move to a new CRM is a lengthy process that requires careful consideration. Before moving forward, make sure you take these steps:

1. Perform a Needs Assessment

2. Define Your Budget

3. Research Implementation Partners

4. Get Board Approval

5. Choose Your New CRM

Even if you already have a specific CRM or software provider in mind, it’s worth taking these steps to ensure you’re happy with your decision and prepared for the implementation process.

1. Perform a Needs Assessment

The first step is to evaluate your current CRM and determine what its challenges and pitfalls are. Common nonprofit needs that a new CRM could address include:

• Disorganized or siloed data. If your donor data is housed in an inconsistent way or spread across multiple different systems, your team can have difficulty locating the information they need. To solve this problem, it’s helpful to have a centralized database that quickly gives you the full picture of every contact and how they engage with you, whether they are monetary donors, in-kind donors, volunteers, staff, partners, or a combination of multiple roles! 

• Difficulty sending and tracking donor communications. If you don’t have an efficient way to send invitations, donation appeals, thank-you emails, updates, and other important messages to donors, you might look for a CRM that can automate communication cadences. Or, choose a CRM with native automation add-ons like Salesforce’s Marketing Cloud to meet this need.

• Inefficient grants management process. Nonprofits and foundations that disburse grant funding to other organizations need a streamlined way to track applications and the grants they award. Many CRMs designed for nonprofits include grant management features that allow you to easily consolidate and monitor this information.

Based on these needs, make a list of goals for what you want to accomplish with your new CRM. If you’re a new nonprofit and you don’t yet have a CRM, think about the main needs you want your system to address. 

2. Define Your Budget

After outlining your needs, take a look at your finances and define your budget for the project. Follow nonprofit budgeting best practices, such as reviewing past budgets and defining specific activities within the project, to make it as accurate as possible.

For a CRM implementation project, your budget should include both initial and ongoing expenses, such as:

• The software license, which is typically a monthly, per-user cost

• Consultant services

• Data integration costs

• Training and support costs

• Any additional add-ons or integrations you’ll need

If your budget is tight, consider doing additional fundraising or grant research to secure enough funding for this important project. Check out resources like Getting Attention’s list of nonprofit technology grants to find grants offered by corporations and foundations that support nonprofits’ technological growth. 

3. Research Implementation Partners

Redpath’s Salesforce for Nonprofits implementation guide explains how trying to implement a complex CRM like Salesforce on your own can result in data loss, technical issues, and a low ROI. That’s why many nonprofits choose to work with an implementation partner, an outside consultant who’s a technical expert in the CRM you’re implementing. 

These experts can guide you through the process from start to finish, providing you with services like implementation planning, data migration, and ongoing technical support. The right partner will get to know your organization and technical goals to ensure your new CRM meets all your needs.

As you research consultants to partner with, consider each potential partner’s:

• Certifications: Some of the most popular CRMs for nonprofits, like Salesforce, have official certifications for technology consultants. For example, you might see a badge that says “Salesforce Partner since 2014” or a designation such as “Nonprofit Expert.” These certifications indicate that the partner has sufficient expertise to maintain official partner status. 

• Specialties: Some partners specialize in working with specific sectors or clouds. Ideally, you should seek out a nonprofit-specific software consultant who understands how nonprofits operate and how their CRM can support them. 

• Past work: Look at the partner’s website to find success stories and examples of their past work. Have they worked with organizations similar to yours? What kind of results have they achieved for similar nonprofits? 

Choose a few good options that align with your needs and goals to present to your board. Then, schedule a consultation with your chosen partner to discuss your needs and their implementation strategy. Different consultants have different approaches to CRM implementation, so make sure that their approach supports your goals.

4. Get Board Approval

Since implementing a new CRM is a major project, you’ll need to get approval from your board and other key stakeholders before moving any further in the process.

Schedule a meeting and present them with the findings from your needs assessment, proposed budget, and implementation partner research to give them the full picture of what implementation could look like for your nonprofit. Gather input on anything else your board would like your CRM to have, along with any additional resources or restrictions that should guide your selection process.

For example, if your board is focusing on increasing community engagement at the moment, they might ask you to prioritize volunteer management features in your CRM selection or to find a system that integrates with your existing volunteer management platform.

5. Choose Your New CRM 

Finally, it’s time to evaluate your software options and choose the CRM that’s the best fit for your needs. As you explore different solutions, consider:

• The system’s intuitiveness. Based on your staff members’ technical experience, you may look for systems with faster setup and extra built-in support features.

• Nonprofit-specific features. The best CRM options for nonprofits are those that were designed with nonprofits’ unique needs in mind. Look for systems with donor management, grant management, donation processing, and advocacy features.

• Flexibility and customization. Some CRMs are more flexible than others in terms of how much you can customize the system to meet your exact needs. If you know you need to create a custom app for one of your programs, for example, you’ll need a more flexible system.

• Support and training resources. Explore the resources available to support your team’s training. Is ongoing support included? How robust is the help community?

Along with these considerations, check the availability of add-ons, apps, and integrations that can support your organization’s goals. For example, Salesforce has a community AppExchange that features a wide range of apps for nonprofits, including wealth screening tools, matching gift search tools, and volunteer engagement solutions.  

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After taking these steps, you’re ready to get started! Your implementation partner should lead the way, beginning by discussing your needs and goals and crafting a comprehensive implementation plan. CRM implementations typically take multiple months to complete, so be prepared for the time commitment in advance. At the end of the process, you’ll have a new and improved solution for all your donor management needs.

The preceding post was provided by a guest author unaffiliated with DonationMatch. The views expressed within do not directly reflect the thoughts or opinions of DonationMatch.

Leveraging Technology For Meaningful Donor Acknowledgment

Guest post by eCardWidget

Amidst the hustle and bustle of nonprofit operations, a silent challenge looms and makes it difficult to achieve fundraising goals: a decline in donor retention. The 2022 M+R Benchmarks Study shows that a whopping 71% of one-time donors in 2021 didn’t make another donation in 2022. Could the way nonprofits acknowledge donors be the missing link?

The donor engagement landscape is constantly evolving, and in recent years, traditional acknowledgment methods have shifted to digital ones — for good reason! As you’ll discover in this guide, going digital means you can connect with your donors anytime, anywhere. You can ensure they know your nonprofit cares about their continued support.

From email to social media, leveraging technology to connect with donors is a must these days, but you need a careful strategy to cash in on the benefits of digital acknowledgment. To help, we’ll share key insights for getting started, including: 

• The Benefits of Technology in Donor Acknowledgment

• Innovative Methods for Digital Donor Recognition

• How to Level Up Your Digital Donor Acknowledgment

With a thoughtful approach, you’ll design an effective recognition plan. If you’re ready to make donors feel instrumental to your mission, let’s dive in!

The Benefits of Technology in Donor Acknowledgment

In the digital age, a simple thank-you note doesn’t cut it. Donors today expect and deserve instant, personalized acknowledgment. If you’re not meeting these expectations, technology can help.

Using technology to fuel your post-donation outreach means you’ll experience benefits such as:

• Lower overhead. Especially when fundraising on a budget, technology can reduce costs associated with traditional outreach methods. For example, you won’t need to pay printing or postage costs for digital thank-you letters.

• Personalization. Your CRM stores personal information and giving history for each supporter. You can easily pull these details to craft more personalized acknowledgments, making your outreach more meaningful to donors. This process becomes even simpler when your CRM integrates with your marketing tools.

• Immediate recognition. With the ability to automate thank-you emails, you’ll provide instant gratification and timely recognition for donors. No need to wait on snail mail unless your donors prefer a handwritten letter!

• Eco-friendliness. Going digital means reducing paper use, vehicle carbon emissions, and waste from non-recyclable materials. In turn, you’ll resonate with contemporary values.

Digital acknowledgments are much more scalable than traditional methods due to their cost-efficiency and overall impact. Knowing how to thank donors digitally will help you leverage these benefits, enhance the donor experience, and inspire supporters to stick around.

Innovative Methods for Digital Donor Recognition

As you can imagine, technology adds a modern twist to traditional strategies. Bring your thank-you letters to the virtual space, send newsletters via email rather than direct mail, and send a newsletter instead of mailing postcards.

No matter your approach, digital acknowledgment is crucial. It doesn’t matter if you’re just starting your nonprofit or if your organization has operated for several decades. Donors and stakeholders alike will enjoy a more engaging and interactive experience. Let’s explore three easy ways to recognize supporters online.

1. Donor Recognition eCards

Also known as digital greeting cards, eCards are a wonderful, personalized way to recognize donors and provide a memorable keepsake. This idea combines timeliness with authenticity. As eCardWidget’s donor thank you letter guide explains, you can format thank you emails as eCards for more unique, visually engaging, and memorable acknowledgment.

Here’s how it works:

1. Design your eCards. You’ll need an online eCard design platform to design your thank-you cards. Add subtle moving elements like falling confetti or animated text for more eye-catching designs. Be sure to include your nonprofit’s colors and fonts. Any graphics, photos, and phrasing should align with your brand and mission, too. That way, you’ll reinforce your brand image with each eCard you send.

2. Choose the eCard you want to send. When someone donates, choose one of your thank-you cards. You’ll enter their email address and add a custom note of appreciation. 

3. Send your eCards. Immediately deliver the eCard to their inbox or schedule it to be sent at a more optimal time. Either way, make sure they receive the card within a couple of days. If your fundraising software automatically sends a tax receipt when someone donates, that buys you some extra time to follow up with a custom eCard, so the donor isn’t left wondering if you got their contribution.

It’s that simple! You’re not limited to generic thank-you cards either. Design eCards for holidays, donation anniversaries, and special recognition days. By infusing this approach into your regular communication methods, your nonprofit will become known for its personalized, thoughtful eCards.

2. Mentions in Marketing Outreach

Recognizing donors in marketing collateral not only serves as a form of donor recognition but also inspires others to contribute. A few channels your nonprofit can use to thank donors publicly include:

• Your newsletter. If your nonprofit sends out newsletters, that provides the perfect opportunity to fold donor recognition into your regular communications. Create a “Donor Spotlight” section where you can call out passionate supporters who are making a difference.

• Event collateral. When promoting an event, mention major donors and corporate donors who contributed significantly to the campaign. You can acknowledge monetary and in-kind donations alike, calling out specific ways they’ve helped.

• Social media. Create dedicated posts acknowledging committed donors who go above and beyond. Supporters can easily share them with their followers, making this a smart marketing tool. You can even shout out corporate sponsors. After all, many companies launch CSR initiatives for positive publicity. Whether they contributed an in-kind or monetary gift, tell your followers how the company helped your nonprofit.

As with any form of public recognition, always seek permission, especially if sharing detailed stories. Some donors appreciate public acknowledgment while others prefer to remain anonymous. By balancing gratitude and discretion, your nonprofit can foster trust and encourage ongoing contributions.

3. Personalized Video Messages

Due to the work that goes into video production, tailored thank-you videos are best reserved for acknowledging major donors and corporate sponsors.

The simplest way to leverage this idea is to record your organization’s leaders sharing a heartfelt thank you. Re:Charity’s donor gifts guide explains that you can involve your beneficiaries to make each video extra meaningful. The article shares an example of thanking a donor who endowed a scholarship. Your team could record the scholarship recipient personally thanking the donor for their generosity. Doing this would forge a deeper connection between the supporter and your cause, making them likely to stay involved.

Once your video is finalized, publish it on social media or send it directly to the donor. You might film a generic video for low and mid-level donors to acknowledge your entire donor base’s impact. That way, smaller donors won’t miss out on this form of recognition.

How to Level Up Your Digital Donor Acknowledgment

You have ideas for your digital recognition. Now, you need to tailor them to your nonprofit’s supporters. Take a careful look at how your donors prefer to be engaged. Your goal should be to personalize digital interactions without making them feel generic or automated. With some help from your technology, you can customize each donor acknowledgment and ensure everyone feels appreciated in ways that resonate.

As you define your strategies, keep these tips in mind:

• Give donors the option for public or private acknowledgments. The idea of maintaining privacy can’t be overemphasized. Check with your donors to see which type of recognition they prefer. You don’t want to compromise their trust by posting about their recent donation on Instagram when they would have preferred a phone call!

• Choose technology that simplifies donor acknowledgment. Choose tools that offer customizable templates for acknowledgment emails and eCards. Some fundraising platforms can even automate acknowledgment. You’ll also want to select platforms that integrate, so you can easily pull supporters’ donation history and incorporate important details into your follow-up.

• Share relevant updates. For example, let’s say an individual donor or a company donates an item to your fundraising auction. Just about anyone would appreciate updates on the event! If they donated to a specific program, share updates on that.

With thoughtful strategies tailored to your donors, you can create memorable acknowledgments that touch donors. Soon enough, the word will get around that your nonprofit goes above and beyond to thank its supporters, which may inspire others to start contributing.

Wrapping Up: Redefining Donor Acknowledgment With Technology

Harnessing the power of technology isn't just for improving operations or marketing — it's fundamentally reshaping how we acknowledge and celebrate our donors. Your approach to donor recognition plays a critical role in improving retention, so continuously adapt to the latest trends and donors’ preferences.

From here, start experimenting with your recognition and see what resonates with donors. Your supporters will feel valued and know they’re vital to your mission in no time.

The preceding post was provided by a guest author unaffiliated with DonationMatch. The views expressed within do not directly reflect the thoughts or opinions of DonationMatch.

3 Ways to Grow Your Nonprofit Through Effective Bylaws

Guest post by Foundation Group

The classic nonprofit struggle of raising funds with limited resources can complicate an organization’s ability to meet its fundraising goals. As a nonprofit leader, you know this means you’ll need to leverage every opportunity to grow your nonprofit.

But before you strategize new fundraising campaigns or marketing ploys, go back to the basics: your nonprofit’s bylaws. These internal operating rules provide a strong foundation for your nonprofit’s growth, especially when they:

• Establish clear governance expectations.

• Maintain operational consistency.

• Allow for adaptability and flexibility.

Aside from their vital role in obtaining 501(c)(3) status, your bylaws can also guide your board’s decisions. Let’s take a closer look at how your bylaws can set your organization up for success.

1. Establish clear governance expectations.

At the heart of every nonprofit is a charitable purpose and a plan to meet that need. To accomplish these goals, the organization’s governance must align with its mission. After all, a nonprofit’s governing leaders are the decision-makers that drive action.

To keep your nonprofit on the right path, establish clear guidelines for leadership and decision-making processes, such as:

• Board member rules. Consider how many people will be on your nonprofit’s board. How will board members be selected and appointed, and how long will their terms of service last? According to eCardWidget, nonprofit boards are the driving force behind both big decisions and the delegation of day-to-day tasks. Your bylaws should explicitly include guidelines for how your board will be structured and how it should approach and delegate decisions to maximize efficiency.  

• Voting procedures. When decision-making for your nonprofit, how will votes be handled? Your bylaws should address what types of meetings can be held, the number of people needed for a quorum, and how many votes will be required to pass an initiative. 

• Establishment of committees. Effective leadership delegates wisely to maximize the efficiency of their efforts. Although your nonprofit may have started with a small group to serve as your board of directors, your leadership team will inevitably need to grow and specialize as your nonprofit grows. Include a provision in your bylaws for subcommittees, giving power to the board for their creation and dissolution so that these teams can be assembled on an as-needed basis without having to repeatedly amend the bylaws.

Your bylaws should also include control provisions that take into account the balance of authority. For example, instead of granting reserved powers to one stakeholder, you might require supermajority votes. That way, you can be sure no one authority figure has significant influence over the organization.

2. Maintain operational consistency.

There’s validity in the saying that practice makes perfect. Once you’ve determined a formula for success, you can continue on that path to carry out your nonprofit’s strategic plan. Your bylaws should provide a clear sense of direction for how the organization will operate. That way, you’ll stay on course by following standardized procedures, such as:

• Bookkeeping. Not only is bookkeeping essential to your nonprofit’s existence, but it can greatly impact your ability to grow since it can guide certain financial decisions.  Determine how bookkeeping data and records will be managed, from board meeting minutes to important financial records. Your nonprofit’s accounting responsibilities are a huge undertaking and will grow in complexity as your nonprofit grows. Whether you hire a nonprofit bookkeeping expert or manage your records in-house, you’ll have concrete expectations for orderly and complete books. 

• Managing conflicts of interest. Having to address a conflict of interest can be a hindrance to your nonprofit’s growth, especially if it interrupts your daily operations and important projects. To smooth over these obstacles, follow the conflict-of-interest policy established in your bylaws. This might include details about how to define and identify conflicts of interest, as well as consequences for violating the policy. 

• Practicing transparency. How does your nonprofit practice accountability with the public? Transparency can increase nonprofit support since your community will be more likely to engage with a credible organization. Your bylaws should clearly define what information and documents are open to the public, as well as any materials that should remain confidential. You might also establish a process for sharing this information with interested parties. 

With a consistent process for important operations, your nonprofit can carry out its strategic initiatives in an organized and smooth manner. 

For example, your bylaws might include a section about bookkeeping that states your organization will keep a record of all actions taken by board directors and committees. According to Foundation Group’s guide to Form 990 filing, recording this information throughout the fiscal year can help ensure your Form 990 filing goes smoothly at the end of the year since you won’t be scrambling to put these details together.

3. Allow for adaptability and flexibility.

If you want your nonprofit to grow, you have to give it the room to do so! Include provisions for amending your bylaws in the future so that they remain flexible with the ever-changing needs of your growing organization. Answer the following questions:

• Who has the authority to propose changes to the bylaws?

• Who will be responsible for approving the changes?

• What percentage of a vote is needed to pass an amendment?

Be sure to include that all changes should remain consistent with your Articles of Incorporation. Any amendments made to your bylaws should enhance your nonprofit’s operations, not compromise its eligibility for 501(c)(3) status. Small adjustments can help your nonprofit pursue new opportunities in the future that weren’t foreseeable when the bylaws were originally constructed.

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The most important way to ensure your bylaws support your nonprofit’s growth is to simply know what’s included! These internal guidelines are official, legal documents that your nonprofit is bound to follow. Your familiarity with them can help ensure you follow them closely and give you the insight needed to adjust them as necessary.

The preceding post was provided by a guest author unaffiliated with DonationMatch. The views expressed within do not directly reflect the thoughts or opinions of DonationMatch.

Member Event Planning: 4 Events Your Members Look Forward To

Guest post by Wild Apricot

For associations and nonprofits with membership programs, your members are at the heart of everything you do. And nothing brings your membership community together quite like events do. They are the perfect opportunity for your members to meet face-to-face, network with other industry professionals, and gain more expertise in their field. 

Whether they are networking nights or annual galas, events are essential for keeping members engaged and raising revenue to ensure your organization’s long-term success. However, different events will appeal to different members. That means you’ll need to determine what types of events will resonate with your members and then plan these experiences for the rest of the year. 

To get your member event planning started, let's explore the four most popular events and how to make them memorable. 

Most Popular Member Event Types

Member events come in all shapes and sizes, from an hour of virtual networking all the way to entire multi-day conferences. The events you schedule will depend on your specific goals, resources, and member preferences. 

Here’s what you need to know about each of the four most popular event types. 

1. Conferences

Conferences bring a large group of people together to explore a specific topic or theme. People attend conferences to learn from industry experts and engage in networking opportunities. 

Typically, conferences can be as little as one day or as long as an entire week.

When planning your conference, keep these tips in mind:

1. Choose the right event management software. Ensure that you select a virtual event solution that fits your needs, such as one that offers attendee registration, highlights sponsors, and tools for promoting your event. 

2. Plan your theme and subtopics. Based on your member’s interests, pick the theme for your conference and its events, such as the topics for panels and roundtable discussions. 

3. Look for event sponsors. Find potential sponsors for your conference who can offer support in exchange for benefits such as exposure to your audience.

4. Determine how you’ll engage attendees. Decide how you’ll keep participants captivated throughout the conference with interactive elements, such as live polls, break-out discussion rooms, and gamification elements.

5. Test-run virtual and hybrid conferences. As hiccups can always happen, conduct a test run of your event to pinpoint and eliminate any issues. 

Let’s take a look at the world’s largest library event, the ALA Annual Conference & Exhibition. This conference unites thousands of librarians, authors, educators, students, and other literary professionals to learn about and discuss the future of the industry. Attendees can enjoy free educational programming, hear from inspiring speakers, and connect with peers. 

Thanks to virtual event technology, hybrid and fully virtual conferences have risen in popularity. Many conferences, like the ALA Annual Conference & Exhibition, offer digital experiences where attendees can virtually attend the event no matter where they are in the world. 

By leveraging technology, organizations can use mobile apps to enhance the conference experience or choose to host a virtual conference. With the right tools, you can set up event registration, create an app for attendees, integrate with a live-streaming platform, and do so much more to streamline your conference. 

2. Networking Activities

Networking events are incredibly valuable for people who are at pivotal moments in their careers. For instance, many college students or recent graduates use networking events to find internships or their first job. Furthermore, people who are more established in their field can use these opportunities to grow their business connections or find new professional roles. 

Here are some ideas for creating engaging networking activities: 

• Set up mentorship groups. Match your experienced members with people who are starting their careers so they can develop their skill set. 

• Host happy hours. Let your members enjoy refreshments at a local brewery or restaurant as they get to know each other.

• Organize speed networking. This twist on speed dating has your members quickly meeting with each other to efficiently make many professional connections. 

• Schedule workshops or classes. Help your members continue their career development by organizing workshops or classes led by industry experts. 

• Create virtual events. Allow your members to connect with people across your network at virtual events such as conference breakout rooms or online trivia games. 

Consider your members’ schedules while planning your networking events. For instance, if your association or nonprofit is local, then you may want to host an event at a nearby restaurant to facilitate face-to-face meetings. Conversely, virtual events are a great option for organizations with members in different locations. 

3. Fundraising Events

Fundraising events are an opportunity for your members to gather together and raise funds to support your organization. These events give members the chance to operate as a team or have some friendly peer-to-peer fundraising competition with each other. 

To plan a memorable and successful fundraising event, associations and nonprofits should follow these essential steps:

• Find a charitable partner. If your organization decides to partner with a charitable partner, you may want to consider finding a local nonprofit, school, or other charitable cause that aligns with your mission. For example, a professional association for educators could partner with a local school. To help find your right partner, consider asking members for suggestions for those that may be open to  mutually beneficial partnerships.

• Determine your fundraising goal. Your fundraising goal should be aligned with the outcome you want to achieve. A journalism nonprofit, for instance, might need to collect $5,000 in fundraising for grants they award to outstanding journalism students every year. 

• Decide on the event type and location. Your members’ preferences and location will influence the type of fundraising event you’ll hold and where it will be. For example, an international organization could hold a virtual event that invites all members or plan multiple smaller in-person events in major cities. 

• Promote your upcoming fundraising event. Share your fundraiser on social media, email, and your website to drum up excitement and inspire involvement. Consider creating a kit with information about the fundraiser that your members can share with others. 

Be sure to thank your members for all their work after the fundraiser. Also, share the amount raised and where the funds will be allocated. This lets your community see their impact and feel proud about what they’ve accomplished.

4. Volunteer Opportunities

Volunteering is a wonderful way for members to expand their networks and improve important skills such as leadership, communication, and teamwork. With volunteer opportunities, your members can give back to the community in a way that aligns with your organization’s mission.

Let’s say that you manage a professional association for working artists. You can engage your members in artistic volunteer experiences like creating a mural for a local elementary school or leading a painting class for senior citizens. This allows members to put their skills to good use while providing a valuable service to the community.

According to a VolunteerMatch survey report, 71% of volunteers prefer to commit their time regularly to an organization. With the right volunteer program, you can give your members the experience they’re looking for while helping them forge stronger bonds within the group. 

Just like other events we covered, virtual volunteer events have risen in popularity. Virtual volunteer opportunities allow participants to participate from the comfort of their homes while still making a major contribution to causes they care about. 

Popular in-person and virtual volunteer options include:

• Setting up and cleaning up at events 

• Redesigning your website or specific web pages

• Reaching out to donors via email or phone

• Transcribing or subtitling videos

Keep in mind that the more flexible your volunteer events are, the more members you’ll be able to get involved. 

Bonus Member Event Planning Tips

No matter the type of event you’ll host, it needs careful preparation to become a success that will keep members engaged for years to come. 

Follow these three practices when kicking off your event planning:

1. Send out pre-event member surveys to guide your planning. Send your members several survey questions to help shape the event you’ll host. For example, you can ask your community about the industry topics they’re interested in, what they’re hoping to experience at your events, and what you can improve upon from your previous events. Collecting this information lets you create events members will be eager to attend. 

2. Create a marketing plan. Every type of event needs a marketing plan so members can learn about the event, see how to register, and know what to expect, especially if you’re hosting a virtual or hybrid event. Your marketing plan should include how you’ll spread the word across your communication platforms such as social media pages, email newsletters, websites, and direct mail messages. 

3. Track engagement metrics and gather member feedback after the event. Once your event ends, collecting feedback is essential. With a post-event survey, you can learn what members enjoyed and where you can improve. Be sure to also review your event’s metrics like attendance rate vs. RSVPs and live poll engagement. 

By following these tips, you can offer members a well-run experience that will motivate them to stay involved in your organization and attend future events. 

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Your members are looking to you to provide a variety of opportunities that will help them succeed personally and professionally. By implementing membership events, your members can network with fellow industry professionals, discuss the latest trends, and propel their development. 
For the most accurate data, be sure to lean into your membership software. This allows you to confidently review metrics and determine improvements moving forward for creating events that will exceed members’ expectations.

The preceding post was provided by a guest author unaffiliated with DonationMatch. The views expressed within do not directly reflect the thoughts or opinions of DonationMatch.

Nonprofit HR: A Beginner’s Guide to The Basics

Guest post by Astron Solutions

Whether you’re new to the nonprofit world and just getting ready to hire your first staff members, or yours is a well-established organization with a large team of employees, you know that your internal team is what powers your mission. 

And while you wear a number of different hats as a nonprofit leader, one of the most important is being an employer. This is because effectively managing your human resources (HR) is imperative for providing a great employee experience and, consequently, having a well-run organization that is able to meet your beneficiaries’ needs and further your cause. 

In this beginner’s guide, we’ll walk you through the basics of nonprofit HR and help you prepare to level up your nonprofit’s HR strategy. Let’s begin! 

Do Nonprofits Even Need HR? 

Yes, nonprofits do need to have HR practices and policies in place. Even though the setup and tax landscape for your organization looks different from that of a for-profit company, and you raise money for a specific cause instead of selling goods or services to customers, you have one big thing in common: just like a company, your nonprofit is an organization with employees. 

According to Astron Solutions, this means your nonprofit must comply with any applicable employment regulations or policies, which makes having a strong HR strategy in place critical. In addition to complying with the law, an HR strategy also empowers you to keep your employees’ needs top-of-mind, which can positively impact your recruitment and retention efforts. 

There are a number of unique challenges that your nonprofit will face as an employer, including: 

• The mission-driven nature of your organization. In a for-profit organization, the focus is on pulling in revenue, and HR helps to support the organization’s efficiency and profitability. But for nonprofits, your mission is at the heart of everything you do, and it can be much more challenging to tie all of your HR efforts to that mission. 

• Limited resources for HR work and compensation and benefits. Many nonprofits find it difficult to make time for HR responsibilities and to have enough in the budget to put toward employee compensation and benefits. This makes it hard to compete with for-profit organizations for talent. A popular approach to tackle this challenge is to emphasize total rewards in your compensation strategy, where you focus on both direct and indirect forms of compensation. 

• Complex staffing needs. Many nonprofits turn to grants to help fund specific programs or projects. These sometimes leave nonprofit organizations more limited in how they schedule and staff different initiatives as they meet the requirements of funders and work on tighter budgets and stricter timelines. 

In addition to considering your employees’ needs and the challenges your organization is faced with as an employer, think about how a strong HR strategy can empower you to do more for your mission. When you have the policies and practices in place to optimize the employee experience, your employees will be satisfied in their jobs, and your team will be in a position to do more for your beneficiaries.

HR Responsibilities for Nonprofits 

If your nonprofit doesn’t currently have the resources to support an entire HR department or hire an HR professional, consider planning ahead to hire an expert in the near future. For the time being, you could outsource your HR needs or work with a consultant. 

Regardless of what HR looks like at your organization, here are the responsibilities that your HR professional will need to take on:

• Talent management. From writing eye-catching job descriptions to hiring the right candidates to onboarding and engaging employees, there’s a lot that goes into the employee lifecycle. Your HR team will develop the strategies your organization needs to find great employees and retain them. 

• Compensation strategy. Compensation will greatly affect your organization’s ability to attract, hire, and retain top talent. Take a total rewards approach to make the most of limited resources, and ensure that you have a strong communication strategy in place to ensure that your employees understand how performance impacts pay and how they can advance their careers at your nonprofit. 

• Compliance, documentation, payroll, and tax reporting. One of the most important things your HR team will help your organization manage is avoiding risk and documenting and maintaining compliance with all employment regulations, such as employee classification. Your HR team also may be in charge of payroll or be involved in submitting your 990 form to the IRS, though these responsibilities often fall to financial professionals. 

• Culture building. Internal culture plays a big role in how satisfied employees are with their jobs, and your HR team will take on the task of developing a positive, collaborative culture within your organization. For example, your HR team may implement an employee recognition program, lead trainings in diversity, equity, and inclusion (DEI), or promote a healthy work-life balance. 

• Volunteer management. While larger nonprofits usually have a dedicated volunteer coordinator or program manager, your nonprofit may be in the position where your HR team manages your volunteers, helping to recruit and retain individuals for your program and ensure they have a positive experience working with you. 

While your HR team will be primarily responsible for managing all of these different tasks, remember that it will take a concerted effort by everyone at your organization to make your nonprofit a great place to work and to keep it that way!

3 Best Practices for Stronger HR Management at Your Nonprofit

Whether you’re getting started with HR responsibilities for the first time or you’re fine-tuning your current strategy, there are three best practices you can leverage to take your efforts to the next level: 

1. Partner with an HR consultant. Whether or not your organization has a full HR department, a nonprofit HR consultant can be a valuable partner for improving your HR strategy. These experts can take a critical look at your existing HR structures and policies and give you tailored recommendations for how to improve, whether you need assistance with your compensation strategy, employee communication efforts, or another aspect of HR. 

2. Prioritize employee engagement and health. Double the Donation suggests providing opportunities for continued learning and career development, giving employees meaningful and challenging work, and celebrating milestones and special occasions. You also can champion mental and emotional well-being by doing things like encouraging employees to use their PTO, holding seminars on the importance of self-care, or leading weekly meditation sessions. 

3. Solicit employee feedback. HR is all about focusing on the people who make your nonprofit’s work possible. So, if you’re wondering how your employees feel about a certain policy or initiative, don’t hesitate to ask them. Collect feedback in meetings with employees or through anonymous surveys. Then, ensure you’re acting on that feedback to make your HR strategy even more effective. 

Another general best practice is to be open and transparent with your employees and to encourage two-way communication. This will help employees develop trust in and loyalty to your organization, which will lead to better retention rates and better outcomes for your cause. 

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Just like their for-profit counterparts, nonprofit organizations need HR policies and practices in place to ensure they’re being the best employers they can be. Use the tips in this beginner’s guide to kickstart or strengthen your HR strategy, and remember that you can always turn to an expert consultant for assistance. 

The preceding post was provided by a guest author unaffiliated with DonationMatch. The views expressed within do not directly reflect the thoughts or opinions of DonationMatch.

Raising More with Less: Fundraising Efficiency Essentials

Guest post by Kristin Fehrenbach, Senior Consultant at Graham-Pelton

Does your nonprofit fundraise efficiently? At the end of a campaign, do you come away feeling that you generated the most possible revenue for the resources and time that you put into it?

You might not have a confident answer one way or the other. Few organizations do. It’s always possible to find new and more efficient ways to generate revenue by streamlining processes and better prioritizing the allocation of resources. 

We see the concept of efficiency crop up time and again in the nonprofit overhead debate. A blind focus on reducing overhead costs, and therefore operating more efficiently on paper, can bring negative outcomes for nonprofits, their partners, and the sector as a whole. 

But there’s a big difference between cutting costs to the point of harming your mission and adapting your strategic plans to raise more with the resources already available to you. Making the most of your opportunities simply makes you a better steward of your organization’s mission and good work. 

What are the foundational strategies and practices that organizations (of all sizes) should adopt in order to maximize their fundraising returns on investment? Let’s take a look.

Robust Development Strategies

Nonprofit development consists of all fundraising activities, but it often refers specifically to forms of revenue generation that involve strategic relationship-building, like major gift fundraising and grant seeking. 

This area of development is an important place to focus your efforts because it can be particularly efficient—the work of one team member to secure a major gift can result in more revenue than you might raise from a short organization-wide campaign. It’s labor intensive but often results in bigger returns than broad campaigns that target larger segments of donors. 

Even if your nonprofit doesn’t have a dedicated development department or major gift officers, understanding and adapting development fundamentals will help you raise more, and more efficiently. Here are the essential concepts to keep in mind:

• Segmentation. The process of grouping your donors into discrete segments based on shared characteristics (e.g., average donation amount, length of relationship, age, location, etc.) allows you to easily focus your outreach to particular audiences. This then leads to reduced costs and an increased likelihood of success, as you’ll only be targeting those who are most likely to respond to your ask. Segmentation also gives you a valuable framework for learning more and continually improving. By measuring success among particular segments, you can better understand your performance and refine your strategies over time.

• Qualification. Prospect qualification involves frequently reexamining what you know about major gift prospects to ensure they’re still top candidates for outreach. This helps you avoid wasting both their time and yours, and it ultimately leads to better experiences. You’ll need to determine the criteria for qualification or disqualification, like active engagement over the past X months or an explicit “no, thanks.” Then, set up a process for regularly requalifying your prospects to keep your outreach lists effective.

• Stewardship. You already express appreciation for all your donors, but stewardship goes a step further. By intentionally fostering and growing your relationships with your most impactful donors, you can drive increased engagement and retention. Securing gifts from retained donors is much easier than depending on constant outreach and acquisition, making stewardship an important part of fundraising efficiently. A portfolio-based prospect management system can help keep the stewardship process as organized as possible.

Development comes in all shapes and sizes. You might have a large team dedicated solely to finding and building relationships with high-impact donors, or you could be a small shop that finds the time to stay in touch with its biggest supporters. 

Either way, infusing your efforts with these fundamentals (and backing it all up with proper data collection and hygiene) will help you secure larger, higher-ROI gifts.

Forging and Strengthening Partnerships

Nonprofits rely on all kinds of external partners, including corporate sponsors, foundations, peer organizations, government offices, and major donors, to engage the community and make progress toward achieving their missions.

If you’re looking for ways to fundraise more efficiently, remember that you don’t have to go it alone. 

Partnerships can unlock new ways to generate revenue while sharing the work or lowering the costs of rolling them out. Your community is probably full of individuals and other organizations that want you to succeed or that would benefit from collaborating on a program or campaign. Here are a few common examples of revenue-generating partnerships:

• Corporate sponsorships, either as structured ongoing agreements or one-time campaign or event arrangements

• In-kind gifts of supplies, equipment, services, food, entertainment, and event space

• Fundraising match challenges in which a sponsor or major donor matches all gifts made to a campaign within a particular timeframe

• Co-hosted events with partner organizations, lowering upfront costs

• Workplace giving programs, like ongoing matching gift programs or special campaigns

• Cause marketing or commercial co-ventures with businesses

Take stock of your nonprofit’s current partnership roster. How are you sourcing potential partners? Can you go further or be more intentional about identifying and stewarding your relationships with partners? Even a small amount of extra work to build your partnership program can result in beneficial connections that help you raise more and reach larger audiences.

On a related note, remember to look to your internal partners, as well! Your staff members keep your organization running and growing. Retaining them and developing their skills over time can significantly reduce what can be a major drag on nonprofits’ growth—employee churn and training costs.

Diversified Revenue Sources

Generating revenue from a variety of diverse sources is always important for nonprofits. This is especially true amid today’s turbulent economy and as the philanthropic landscape recalibrates from the drastic impacts of the pandemic.

Specifically, nonprofits should stay on the lookout for new revenue streams or forms of fundraising that can deliver high ROI. The benefits or returns of these activities should outweigh the new inputs they require, at least once you get your new strategies established and running smoothly.

Major gift fundraising is an excellent example, but what else? Consider these examples:

• Peer-to-peer fundraising. Although they still require careful management and input, well-targeted P2P campaigns can help you reach much broader audiences organically. Do-it-yourself peer-to-peer fundraising, in which supporters can launch their own giving pages at any time, can also become a reliable passive revenue stream when effectively promoted.

• Planned giving. Bequests and other forms of planned gifts are often larger than cash donations that donors would otherwise consider. They usually require individualized attention and cultivation, but they bring the benefit of being accessible to more of your donors because planned gifts are given from assets rather than cash on hand. Once established, a planned giving pipeline can provide stable, predictable future income.

• Grant seeking. Grants often make up a sizable portion of nonprofits’ revenue. If your nonprofit hasn’t devoted much time or strategy to grant seeking, this should be an area to examine. Putting in the work to identify ideal opportunities, prioritize them, build relationships with funders, and hone your proposal skills can result in steady future support that becomes more efficient over time.

• Online merchandise sales, particularly through platforms that facilitate the process for you. For instance, platforms that allow you to design merchandise that is then printed and shipped as needed (and that charge you a percentage of the sale) can create a helpful revenue stream without requiring you to cover upfront costs, keep an inventory, or invest in eCommerce capabilities.

Of course, all new revenue-generating activities require some amount of upfront and continued investment. But practice and dedication (even if only a couple of hours a week) can go a long way to set your nonprofit up for success with grant seeking and planned gifts, for instance.

If you want to diversify your revenue streams, start exploring your options! Understand the gaps in your current strategies and what the necessary investments will be, then use those insights to determine your best opportunities.

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Remember, operating efficiently and generating healthy returns don’t always mean cutting expenses. 

The most sustainable way to strengthen your nonprofit’s bottom line will actually be to start fundraising in smarter ways with a focus on the long term. Implement development best practices, ensure your data collection processes are up to par, rely on your partners, and look for new, high-ROI fundraising opportunities.

What to Know If You Want to Start a Nonprofit: A Quick Guide

Guest post by Donorly

Creating your own nonprofit organization holds a lot of appeal. When you operate a nonprofit, you can make a measurable difference toward a cause that’s close to your heart, engage your community in meaningful ways, and inspire positive action from supporters. 

However, starting a nonprofit is a major commitment. There are many important considerations to keep in mind, and you may not be aware of all the legal steps it takes to found a nonprofit. In this quick guide, we’ll cover four things you should know before making your decision:

1. Your Nonprofit’s Feasibility

2. A Clear Mission

3. Initial Sources of Funding

4. The Role of Your Board

5. Legal Requirements

Taking time to think through your decision and make preparations now can save you from stress and confusion later. Let’s dive into these considerations to make sure you’re ready to start a nonprofit.

Your Nonprofit’s Feasibility

According to Donorly’s guide to starting a nonprofit, the first thing you need to address is whether or not your idea is feasible and needed. Do research to make sure there’s an established need in your community for your proposed nonprofit. Check that there isn’t another organization that already exists that serves the same need. If there is, it may not be worthwhile to move forward—you may need to find some other way to give back to the community.

If there is a clear need for your nonprofit, the next step is to determine if it’s feasible. Do you have enough resources, support, and time to make your nonprofit a reality?

For example, consider the costs you’ll need to cover before you can even begin fundraising, such as:

• Incorporating your organization: The total costs of incorporating and registering your nonprofit across various states could add up to hundreds or thousands of dollars.

• Leasing a space: Consider the costs of a lease for office space, along with utilities, office furniture, and supplies. Even if you work remotely, there may be a need for software, tools, association memberships, technology, and other operational tools.

• Hiring staff: Even if you start with a small team, you’ll eventually need substantial room in your budget to cover your staff’s pay, payroll and accounting services, and benefits. 

• Initial marketing: In order to get the word out about your new nonprofit, you’ll likely need to spend some time and funds on spreading the word early on, which may also include attending events and networking expenses

Along with the funds to cover costs, you’ll need to have enough people to establish an initial support base. This includes people willing to serve as board members, volunteers, and your first donors. Plus, you need to personally have enough time to commit to starting and running the organization, which could be a full-time job.

A Clear Mission

While you may have a general idea of the cause you want to support or the issue in your community you’d like to solve, you should take time to clarify exactly what your mission would be before moving any further. 

To establish a clear mission statement, ask yourself questions like:

• Why do you want to start a nonprofit?

• What specific issue do you want to raise awareness of and help solve?

• Who exactly will your nonprofit serve?

• What action will your organization take to help this community?

Using your answers as a guide, develop a single sentence that describes who you serve, why, and how you aim to help. Ensure that your mission statement is actionable, relevant, and straightforward. 

Initial Sources of Funding

Starting and running a brand new nonprofit takes money, so it’s worthwhile to think ahead and determine how you can secure a few initial sources of funding to get your nonprofit off the ground. Most often, this takes the form of:

• Fiscal sponsorships: While you can’t accept tax-deductible donations until your nonprofit is registered as a 501(c)(3), you can recruit the help of a fiscal sponsor. This is another organization that fundraises on your behalf and essentially offers the funds to you as a supervised grant.

• Help from your personal network: Look to friends, family, and existing personal supporters who may be willing to help your organization get started. 

Once your nonprofit is fully established and legally allowed to request donations, you’ll have many more fundraising opportunities available. This doesn’t mean that it’ll be easy, though! Be sure to develop audience-informed fundraising strategies to effectively raise the money your organization needs.

The Role of Your Board

As mentioned earlier, you’ll need a few people willing to support your nonprofit by serving as board members. The board of directors you recruit will serve as your nonprofit’s leadership and governing body, so it’s hard to understate their importance.

eCardWidget’s board member appreciation guide explains that a nonprofit’s board handles everything from managing the strategic plan to supervising budgets and programs to ensuring ethical and legal integrity. Because these responsibilities are so important to your organization’s success, you should choose board members carefully.

As you recruit people to serve on your new nonprofit’s board, consider their:

• Commitment to your mission: Every board member should feel personally aligned with your nonprofit’s mission. When deciding who should serve on your board, ask them why they’re interested in the position and if they have any experience supporting similar causes. 

• Diversity: Diversity, equity, and inclusion (DEI) is a major priority in the nonprofit sector, especially in terms of nonprofit boards. Make sure that your board is diverse and reflective of the community you aim to serve. This will help eliminate bias, ensure your beneficiaries and supporters feel well-represented, and lead to more ethical decisions.

• Skills and experience: The board has a variety of responsibilities that require different skill sets. Try to create a balance of members with experience in financial management, marketing, and fundraising. Look for anyone with skills that might differentiate them and bring something new and valuable to the table. 

After choosing enough people to fill all necessary roles on your board, provide training that covers nonprofit basics like fundraising strategies and budgeting. Your board will be fundamental in your nonprofit’s foundation and first campaigns, so make sure they all feel prepared to handle their responsibilities.

Legal Requirements 

Finally, you’ll need a solid grasp of the legal requirements, procedures, and tax regulations involved in starting and operating a nonprofit. Legally establishing your organization is a lengthy process that includes:

1. Filing articles of incorporation in your home state to officially register your organization.

2. Applying for a federal EIN number that the IRS will use to identify your nonprofit.

3. Filing for federal tax-exempt status as a 501(c)(3) organization using Form 1023. 

4. Filling out charitable solicitations registration in every state you intend to fundraise in/accept funds from.

Along with these initial legal procedures, be prepared to abide by all the nonprofit legal requirements and federal reporting guidelines going forward. For instance, you’ll need to file an annual IRS Form 990 that details where all of your organization’s funding came from and how you spent it the previous year. 

Filing the right forms and maintaining proper compliance can be complicated. To take work off your plate and ensure you’re not missing anything, consider reaching out to a nonprofit consultant who’s well-versed in all the requirements. 

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If your thinking aligns with all of these points and you feel prepared to get started, congratulations! You’re well on your way to starting a nonprofit. If you’re not fully sure yet, don’t be afraid to take more time to get familiar with nonprofit operations before moving forward. Volunteer with local organizations, and ask plenty of questions. Even if you don’t end up starting your own nonprofit, you may find an organization that you love working with!

5 Tips to Build Community Around Your Monthly Giving Program

Guest post from Bloomerang

Some nonprofits that offer monthly giving programs take a “set it and forget it” mindset to monthly donor engagement. The idea is that monthly donors are already engaged in ongoing giving, so they may require less hands-on stewardship than donors who give with less regularity. 

But imagine how much more connected donors will feel to your nonprofit when you foster a sense of community around your monthly giving program. Instead of just observing your nonprofit’s activities, donors will be actively engaged in your work and see up close how their monthly gifts make a difference in your mission. 

With that in mind, let’s review five top tips for fostering community among monthly donors to improve your retention rate:  

1. Brand your program

2. Create a monthly donor newsletter.

3. Offer exclusive opportunities to monthly donors

4. Ask for donors’ input

5. Create personal connections through your appreciation efforts 

Throughout this post, we’ll pull tips and examples of successful programs from Bloomerang’s roundup of monthly giving best practices. Let’s start by reviewing top strategies for branding your monthly giving program to promote community. 

1. Brand your program

Creating a brand for your nonprofit’s monthly giving program helps donors feel like members of an exclusive group. Take the following steps to develop a cohesive brand for supporters to rally around: 

• Name your program. Giving your program an easily recognizable name helps foster brand awareness. For example, charity: water is a nonprofit focused on improving access to clean water for communities in need. The organization’s monthly donation program is called The Spring. This name is related to the organization’s mission and is short and snappy enough to be easily remembered. 

• Name your monthly donor group. Instead of giving your monthly giving program a name, you can also name your monthly donors themselves. For example, Doctors Without Borders’ monthly donors are called Field Partners, while CARE refers to its recurring supporters as Partners for Change. 

• Brand the program uniformly. Your online donation page and monthly giving program marketing materials should incorporate uniform brand elements. NXUnite recommends creating a branding strategy guide with information about how to use your logo, color scheme, typography, and tagline to ensure cohesion

Brand consistency gives your monthly giving program greater legitimacy and authority. Donors will feel like members of a close-knit community united by a common cause. 

2. Create a monthly donor newsletter 

One of the most important aspects of building a strong monthly donor community is maintaining consistent communication. Most donors appreciate ongoing updates about your nonprofit’s progress and goals. A monthly email newsletter is an effective way to keep monthly donors in the loop. 

To speed up the process of crafting your newsletter each month, you can create a newsletter template that includes spots for the following types of content: 

• Updates on what donors’ gifts have allowed your nonprofit to accomplish. Include progress photos or written updates on how you use recurring donations to grow your programs or advance your projects. 

• Donor spotlights. Highlight long-time or particularly engaged donors using thank-you messages or donor interviews. 

• Upcoming events. Include information about upcoming donor appreciation events, fundraising campaigns or volunteer opportunities. 

Use your email marketing platform to track email metrics and determine which types of messages are most engaging for your audience. For example, you can track metrics such as your open rate and click-through rate. Taking a data-driven approach will allow you to tailor your outreach to meet donors’ needs, improving your engagement rates. 

3. Offer exclusive opportunities to monthly donors

In addition to highlighting your nonprofit’s general activities using your monthly newsletter, you can also invite monthly donors to engage in exclusive opportunities designed just for them. 

Use marketing platforms like email, text and social media to highlight opportunities like: 

• Exclusive events, such as networking opportunities or appreciation galas

• Early access to registration for your organization’s major events, such as your annual music festival or charity run

• Specialized volunteer opportunities where monthly donors can interact with one another and complete hands-on work to support your mission

Not only will donors feel special for getting invites to these exclusive opportunities, but they’ll also be able to meet and interact with their fellow monthly supporters. This can help foster camaraderie within your monthly giving program

4. Ask for donors’ input

Requesting feedback from donors is a central tenet of a powerful donor management strategy. Asking for donors’ input shows them that you consider them equal partners in working toward your nonprofit’s goals.

Monthly donors can be especially helpful when it comes to offering advice because they are typically among your most engaged and committed supporters. Send monthly donors occasional surveys that request feedback on things such as: 

• Suggestions to improve your upcoming fundraising drives and campaigns

• Feedback about your communication frequency or the content of your email newsletters

• Input about how you can improve your appreciation strategy 

Follow up with donors after compiling all responses to thank them for their input and highlight your plans to implement their feedback. 

5. Create personal connections through your appreciation efforts

Monthly donor appreciation should be an ongoing process rather than a one-time task. You can use your appreciation efforts to build personal relationships with donors that encourage them to continue giving for the long term.

Here are a few ideas to send more meaningful thank-you messages: 

• Personalize thank-you notes to each donor. Use the data stored in your donor management system to personalize thank-you messages with monthly donors’ names and giving amounts. 

• Send handwritten thank-you notes. Handwritten appreciation messages stand out and show donors you’ve taken the extra time to write something from the heart. Consider asking volunteers, board members or beneficiaries to write a few thank-you notes to make these messages even more meaningful. 

• Create appreciation videos. Ask a volunteer to film a quick thank-you video to send to monthly donors. Videos can be an impactful way to introduce donors to someone that they’ve supported through their gifts. 

• Offer gifts or prizes for long-time donors. Consider sending long-term monthly donors gifts like free merchandise or gift cards to local businesses or restaurants. Unexpected gifts can provide a special touch for donors who have been loyal to your organization for many months or years. 

Use your donor database to note the types of appreciation messages each donor responds best to, whether a gift, handwritten note, video, or another type of communication. You can then continue thanking each donor using their preferred method, further building a positive connection.

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These efforts will help make your monthly donors feel like true partners in your quest to achieve your organization’s mission. By building closer ties to your organization and their fellow supporters, monthly donors will be much more likely to stay involved in your program for the long haul.