We often assume the best and rely on personal relationships or emotions to make donations. In fact, the number one reason people donate is because they are asked. And the person asking makes a big difference in whether a donor gives and how much. Donors and nonprofit organizations are essentially in the dating game. It’s easy to get excited about your match, but it’s reasonable (and advised) to do a little digging before you commit. The warm fuzzy feeling or alignment with a mission is easier than understanding an organization’s governance or fiscal accountability. They are all important.
A donor checklist, or, at the very least, a few quick seek-and-finds, ensures the organization you think is the right fit is, in fact, the right fit before pushing the “I trust you; here’s my money” button.
Donors and organizations have a responsibility—to themselves and their partners—to be honest and transparent. Maybe I want to donate $20 but not talk again. But maybe I want to test the $20 water and see if we can do more together. A $20 kiss can lead to a $2M marriage or Legacy Gift. It’s important for both parties to build a trusting relationship if it’s going to endure.
When donors decide they want to support a mission, they can look on the Estes Nonprofit Network’s List of Nonprofits that serve the Estes Valley, search by keyword on COGives.org for state-wide organizations, or research further afield for national or international organizations. When a donor finds an organization that piques their interest, they should be able to easily find basic information on a website: mission statement, contact information, and donor information. Essentially answering the questions of “What do they do, how do I pay online, or who do I write the check to and where do I send my money?” Also, donors have the right to privacy. Check for a statement about how—or if—personal information will be shared.
So, donor, you like the looks of an organization, but do they have their ducks in a row?
Organizations that are committed to their fiduciary responsibilities often get outside verification. They will post on their website if they are a BBB Accredited Charity or earn “seals” on Candid. The BBB requires a rigorous 20 standards of accreditation. Candid’s higher-level seals are awarded after sharing audited financial statements and strategic plans. Charity Navigator and CharityWatch are other examples of organizations that rate nonprofit effectiveness.
Candid has clear advice for nonprofits, “Donors and funders have questions—don’t make them ask, tell them.” First and foremost, best practices say that organizations should post their last two to three years of tax filings online. Individuals’ federal tax returns are private, but a charitable organization’s tax return (form 990) is public; it also includes salary information.
Donors, if the organization has not posted tax returns online, sleuth around a little.
The tax-exempt organization search tool on the IRS.gov’s charities and nonprofit section shows 990s, any information on loss of status, and an IRS determination letter proving 501c3 status. Organizations may also provide an impact report (formerly and commonly called an annual report): digestible financial reports, simple data summaries, and storytelling of their mission-based impact. They may post self-assessments by their peers, staff, or board. These reports are all created by the organization, whereas taxes and “in good standing” documents are legal oversight measures. Both are valuable.
Some nonprofits in the Estes Valley have bare-boned websites. They are small groups of people doing great work. They need donations, but may not have the internet chops to share their details online. Call them. Don’t be afraid to ask questions before you “buy in” to an organization. It’s not intrusive; it’s not prying. It’s like asking a future partner if they want to have kids. It’s completely reasonable to ask any organization what your money will be used for. You might want to give more next time if you feel your money made a real difference. Whether it’s $20 or $200, an organization should be able to share an impact report they publish regardless of your personal inquiry. And organizations, this inquiry is an opportunity to dig deeper and possibly discover a program or pursuit that lights this donor up and invites a deeper partnership.
On the other hand, let’s get a temperature check. Donors: ask what you want, visit the office, and meet the staff. But don’t distract the organization from the work you theoretically want to support. At some point, the organization has to weigh the time it takes to date a donor (or funder) vs executing the mission. Organizations: in some situations, it is ideal to have an advocate or board member dedicated to donor development and inquiry.
Sure, it can be awkward to get to know one another. But a solid relationship between organization and funder can help smooth over bumps that come up (and they always do). It allows the donor to feel genuinely invested in the mission. It allows a director to be able to call a donor in confidence and ask for their support to launch a new program. In the end, these relationships can build a mountain of GOOD WORK.
If donors or organizations have any questions about how to engage or what to expect in the wild world of “development,” please contact cato@estesnonprofitnetwork.org. Don’t be shy!
970-480-7805
info@epnonprofit.org
Find a nonprofit
We often assume the best and rely on personal relationships or emotions to make donations. In fact, the number one reason people donate is because they are asked. And the person asking makes a big difference in whether a donor gives and how much. Donors and nonprofit organizations are essentially in the dating game. It’s easy to get excited about your match, but it’s reasonable (and advised) to do a little digging before you commit. The warm fuzzy feeling or alignment with a mission is easier than understanding an organization’s governance or fiscal accountability. They are all important.
A donor checklist, or, at the very least, a few quick seek-and-finds, ensures the organization you think is the right fit is, in fact, the right fit before pushing the “I trust you; here’s my money” button.
Donors and organizations have a responsibility—to themselves and their partners—to be honest and transparent. Maybe I want to donate $20 but not talk again. But maybe I want to test the $20 water and see if we can do more together. A $20 kiss can lead to a $2M marriage or Legacy Gift. It’s important for both parties to build a trusting relationship if it’s going to endure.
When donors decide they want to support a mission, they can look on the Estes Nonprofit Network’s List of Nonprofits that serve the Estes Valley, search by keyword on COGives.org for state-wide organizations, or research further afield for national or international organizations. When a donor finds an organization that piques their interest, they should be able to easily find basic information on a website: mission statement, contact information, and donor information. Essentially answering the questions of “What do they do, how do I pay online, or who do I write the check to and where do I send my money?” Also, donors have the right to privacy. Check for a statement about how—or if—personal information will be shared.
So, donor, you like the looks of an organization, but do they have their ducks in a row?
Organizations that are committed to their fiduciary responsibilities often get outside verification. They will post on their website if they are a BBB Accredited Charity or earn “seals” on Candid. The BBB requires a rigorous 20 standards of accreditation. Candid’s higher-level seals are awarded after sharing audited financial statements and strategic plans. Charity Navigator and CharityWatch are other examples of organizations that rate nonprofit effectiveness.
Candid has clear advice for nonprofits, “Donors and funders have questions—don’t make them ask, tell them.” First and foremost, best practices say that organizations should post their last two to three years of tax filings online. Individuals’ federal tax returns are private, but a charitable organization’s tax return (form 990) is public; it also includes salary information.
Donors, if the organization has not posted tax returns online, sleuth around a little.
The tax-exempt organization search tool on the IRS.gov’s charities and nonprofit section shows 990s, any information on loss of status, and an IRS determination letter proving 501c3 status. Organizations may also provide an impact report (formerly and commonly called an annual report): digestible financial reports, simple data summaries, and storytelling of their mission-based impact. They may post self-assessments by their peers, staff, or board. These reports are all created by the organization, whereas taxes and “in good standing” documents are legal oversight measures. Both are valuable.
Some nonprofits in the Estes Valley have bare-boned websites. They are small groups of people doing great work. They need donations, but may not have the internet chops to share their details online. Call them. Don’t be afraid to ask questions before you “buy in” to an organization. It’s not intrusive; it’s not prying. It’s like asking a future partner if they want to have kids. It’s completely reasonable to ask any organization what your money will be used for. You might want to give more next time if you feel your money made a real difference. Whether it’s $20 or $200, an organization should be able to share an impact report they publish regardless of your personal inquiry. And organizations, this inquiry is an opportunity to dig deeper and possibly discover a program or pursuit that lights this donor up and invites a deeper partnership.
On the other hand, let’s get a temperature check. Donors: ask what you want, visit the office, and meet the staff. But don’t distract the organization from the work you theoretically want to support. At some point, the organization has to weigh the time it takes to date a donor (or funder) vs executing the mission. Organizations: in some situations, it is ideal to have an advocate or board member dedicated to donor development and inquiry.
Sure, it can be awkward to get to know one another. But a solid relationship between organization and funder can help smooth over bumps that come up (and they always do). It allows the donor to feel genuinely invested in the mission. It allows a director to be able to call a donor in confidence and ask for their support to launch a new program. In the end, these relationships can build a mountain of GOOD WORK.
If donors or organizations have any questions about how to engage or what to expect in the wild world of “development,” please contact cato@estesnonprofitnetwork.org. Don’t be shy!