Jun 4, 2021 6 Ways Your Non-Profit Can Increase Giving And Make Donations Easy
This article will look at 6 ways you can increase giving at your non-profit as well as helpful hints to put on your website to make donations easy.
The first way to increase your giving is to make sure your patrons can sign up to make a one-time or ongoing contribution. For many people, this will be the first way they give. Help them find ways to get more involved. They may be your future champions. The first $300 cash donation per person is also eligible for an above-the-line tax deduction.
Ways to make it easy: Consider Setting up direct giving through a service like fundly or PayPal. This option is perfect for small gifts or monthly support. It is great on a website and can accompany any information on the services your non-profit provides.
– For all of your donors 70.5 or older, they can give with a tax-free distribution from their IRA. Gifting via a QCD counts towards a Required Minimum Distribution (RMD) without creating any taxable income. QCDs can result in a significant tax savings when people are barely able to itemize or taking only the standard deduction. It is a way to give “income tax-free” from an IRA, as long as they are older than 70.5.
Ways to make it easy: These checks often come directly from the custodian and need to include information on the memo line to be able to match the checks up with the right donor. Make sure your website has the information you want your donors to include on the memo line as well as any specific mailing instructions.
3. Gift of Appreciated Securities
If your supporters are not old enough to do a QCD, consider gifting shares of stock. Gifting highly appreciated securities lets them give without having to realize the capital gain. You will need to establish a brokerage account for your charity. Once established, donors can electronically send shares of stock via DTC directly to the account. The shares are sold without any tax due for the non-profit. (Note: Deductions of appreciated securities held more than a year are generally limited to 30% of AGI. The IRS allows unused deductions to carry over up to five years. (There are special rules for 2020-2021)
Ways to make it easy: Your website can include the account name, account number, DTC number and your Broker/Financial Advisor contact information. To protect privacy the broker will not be able to tell the charity the name of the donor, so make sure you have a method in place to confirm the donation so you know where to send the gift receipt.
4. Beneficiary Designation
Ask your members to consider making you a beneficiary, or partial beneficiary on their IRA. This will allow the assets to pass without paying any federal income tax. This is perfect for someone who wants to make sure they have access to all their resources while alive, but wants to be a meaningful contributor after they are gone. This can also cut the IRS out of a significant portion of their retirement account and potentially leave more tax advantageous assets to family members.
Ways to make it easy. Educate your clients about the tax free nature of the beneficiary designation. Include specific beneficiary language and contact information. You may even consider a form so they can log their intentions and provide their contact information.
5. Name as Beneficiary in Their Will
A legacy can be created by your donors remembering their favorite charity in their will. Consider using contributions to set up a memorial fund. It is really important here to have a clear vision on how the funds will be used. This is planned giving and may be the start of a sustainable endowment fund. While not required, consider developing a way to help people share their intentions early.
Ways to make it easy: You may offer access to an advisor or tax professional on your website. Proper planning can help keep any administrative costs as low as possible and optimize the tax savings and intentions of the donor. This type of gifting can be complex. It may also be helpful to include the range of gift that would trigger a conversation on customization. For example: All gifts over $100,000 include a named scholarship and private meeting to discuss how the funds will be used.
6. Business Sponsorship
Consider approaching businesses or supporters who own small businesses. They can sponsor events and spend their tax-deductible marketing dollars getting their name out and supporting a good cause. Possibly they are open to providing employee volunteer hours as well.
Ways to make it easy: Create packages that support your efforts over the course of the year. Let businesses subscribe to advertising packages at various levels for the entire year. The National Council of NonProfits has a great directory of resources on corporate sponsorship.
Tips and Tricks to Fundraising
It is probably not enough to just put this information on your website. Here are a couple of other fundraising concepts to help turn this into real support:
1. How you ask for the funds is the most critical component. Identify who you need to ask, how much you need, and then the best person to make the request.
2. You tend to get most of the contributions from very few donors. Raise funds from the top down.
3. Think of the needs of the donor. What is important to them? The Cause? Legacy? Recognition? Anonymity? Business deduction?
4. Make a case for how the money is being used now. The legacy of giving starts in the present. What greater purpose does the organization serve in your community?
If you have questions or would like to find out how we might be able to help, please contact us.
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