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.
1. Cash
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.
2. Qualified Charitable Distribution (QCD)
– 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.
Company News
Market Commentary
Retirement Planning
Tax Planning
Cyber Security
Important Disclosures
Leonard Rickey Investment Advisors, PLLC (“LRIA”), is an SEC registered investment adviser located in the State of Washington. Registration does not imply a certain level of skill or training. For information pertaining to the registration status of LRIA, please contact LRIA or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov).
This is provided for general information only and contains information that is not suitable for everyone. As such, nothing herein should be construed as the provision of specific investment advice or recommendations for any individual. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. There is no guarantee that the views and opinions expressed herein will come to pass. This newsletter contains information derived from third party sources. Although we believe these third-party sources to be reliable, we make no representations as to the accuracy or completeness of any information prepared by any unaffiliated third party incorporated herein and take no responsibility therefore.
Any projections, forecasts and estimates, including without limitation any statement using “expect” or “believe” or any variation of either term or a similar term, contained here are forward-looking statements and are based upon certain current assumptions, beliefs and expectations that LRIA considers reasonable or that the applicable third parties have identified as such. Forward-looking statements are necessarily speculative in nature, and it can be expected that some or all of the assumptions or beliefs underlying the forward-looking statements will not materialize or will vary significantly from actual results or outcomes. Some important factors that could cause actual results or outcomes to differ materially from those in any forward-looking statements include, among others, changes in interest rates and general economic conditions in the U.S. and globally, changes in the liquidity available in the market, change and volatility in the value of the U.S. dollar, market volatility and distressed credit markets, and other market, financial or legal uncertainties. Consequently, the inclusion of forward-looking statements herein should not be regarded as a representation by LRIA or any other person or entity of the outcomes or results that will be achieved by following any recommendations contained herein. While the forward-looking statements here reflect estimates, expectations and beliefs, they are not guarantees of future performance or outcomes. LRIA has no obligation to update or otherwise revise any forward-looking statements, including any revisions to reflect changes in economic conditions or other circumstances arising after the date hereof or to reflect the occurrence of events (whether anticipated or unanticipated), even if the underlying assumptions do not come to fruition. Opinions expressed herein are subject to change without notice and do not necessarily take into account the particular investment objectives, financial situations, or particular needs of all investors.
For additional information about LRIA, including fees and services, please contact us for our Form ADV disclosure brochure using our contact information herein. Please read the disclosure brochure carefully before you invest or send money.
Presidential Elections and the Market