Probably! If your nonprofit hired one or more independent contractor who was paid $600 or more in the previous tax year, then you have to issue a Form 1099 to that independent contractor so they can use it to file their taxes. While some nonprofits who do not hire independent contractors may not need to send out any 1099s, many nonprofits are required to file 1099’s. The deciding factors in whether a nonprofit needs to issue a Form 1099 to someone is whether the nonprofit paid more than $600 to the individual in the previous tax year and if the person is an independent contractor (or an employee, in which case they would receive a w-9 instead).

Few nonprofits operate without some type of paid staff, whether it’s employees or contractors. For many new and small nonprofits, having full-time employees may be costly, and hiring itself is a big risk. While the IRS has clear guidelines on what when someone is an employee vs an independent contractor, it’s not uncommon for nonprofits new and old to hire independent contractors.

Should my nonprofit issue a 1099 or a W-2?

Anyone who does not meet the employee test is an independent contractor. The guidelines for nonprofits around independent contractors and 1099’s are the same as for the private sector: Any independent contractor who is paid more than $600 per year should be issued a Form 1099. Find out more about how to tell if someone is an independent contractor or an employee here.

How to issue a 1099:

1. Collect a completed Form W-9 from your independent contractor(s) with their business type, name, address, and signature. This document provides you the information you need to complete the Form 1099-NEC.
2. Calculate the total amount you paid them for the year.
3. Complete the Form 1099-NEC in and file it with the IRS by January 31st. If filing by paper, include a Form 1096 to transmit the 1099-NEC.
4. Send a copy of the Form 1099-NEC to the Independent Contractor as well. They will use it to file their taxes.

Step 1: Getting a W-9 from an independent contractor

When getting a W-9 remember to start early! You need to issue 1099’s to independent contractors for last year’s payments by January 31st of the following year, so you’ll do everyone a favor by collecting the W-9 in advance. If you know when you start working with a new independent contractor that they will be paid more than $600 this calendar year, then you might as well just collect it when you hire them for the job!

You also need to make sure they actually filled the whole form out. It’s important to have their business type, name, address, and their signature. If they didn’t fill out the whole form you’ll have trouble issuing the 1099 later!

When storing the filled-out W-9, be sure to store it in a secure place as it includes sensitive information, so be sure to store it securely! Some bookkeeping software includes services to manage these forms. Larger, more established nonprofits may use such software, but often newer, smaller nonprofits may manage these files manually.

Step 2: Figuring out how much you paid an independent contractor.

Almost every nonprofit will have a bookkeeper who should be able to answer this question. It’s as simple as adding up all the payments you made to this independent contractor. If you use a bookkeeping program like Quickbooks they are likely entered as a vendor, and you may need to generate a report. Your bookkeeper or accountant should be able to help get this information.

Step 3: Complete and file Form 1099-NEC with the IRS

There are actually many different 1099 forms for different types of payments. While there could be special cases where a nonprofit may need to fill out something other than a 1099-NEC, when dealing with independent contractors you need the 1099-NEC, which stands for “non-employee compensation”.

Where do you find the form 1099-NEC?

You can find the general instructions for paper and electronic filing here. You can find both the e-File links and printable PDF versions here on the IRS Forms, Instructions and Publications Search.

How do you file the 1099-NEC with the IRS?

The IRS recommends that you E-File the 1099-NEC. The IRS has links to the E-Filling page and downloadable PDFs of the 1099-NEC here on the IRS Forms, Instructions and Publications Search.

Step 4: Send a copy of the 1099-NEC to the Independent Contractor

This one’s pretty straightforward: after you have completed the form, there will be a copy of for the independent contractor. Send this to them either in the mail or digitally.

Many people add a password to the digital document or share it via a secure platform. Some bookkeeping tools even manage this for you!

The post 1099’s for 501(c)(3)s: How to issue 1099s and more! 1099 Basics for Nonprofits appeared first on CANDO 501c3.

The simplest way to ensure that board meetings are spent productively carrying you forward to meet your goals, is by outlining an agenda and redirecting to that agenda when you notice people getting off topic. The Board President and Executive director should connect to establish agenda items, and follow a standard agenda template (illustrated below).

Board Meeting Agenda Template 
ORDER OF BUSINESS (stated in bylaws)

1. Roll Call for quorum
2. Read Vision and Mission Statements
3. Approval of the Minutes of the preceding meeting
4. Reports of Committees
5. Report of Executive Director
6. Reports of Officers
7. Old and Unfinished Business
8. New Business Items
9. Announcements and Adjournments

As we have determined, crafting the agenda is the single most important element of facilitating a productive nonprofit board meeting. 

Establishing a Quorum

A quorum refers to the minimum number of nonprofit board members that must be present at any meeting to validate and implement the proceedings. Each state sets a quorum as a majority of voting board members. Some allow a quorum to be as low as one-third of the board, but it is important to familiarize yourself with the exact standards of procedure in your state. These laws often include other important information, such as the particulars about proxies/delegation of authority to vote. The established quorum should be included in your bylaws, along with your organization’s mission or vision statement.

Reading Mission/Vision Statements

All decisions by the board must be guided by the organization’s mission statement. The mission statement is the core value (or nucleus) around which a nonprofit functions, so every action-oriented goal must ultimately support this mission in some way. The mission statement should be the common thread in all messaging and marketing, communications, and community relations.

Reading the mission statement at the beginning of each board meeting serves to strengthen this essential core, and acts as a strong beginning to the consistent story arc your board meetings follow. This not only supports the overall structure and consistency of the meetings, but reinforces the shared purpose of the organization and inspires attendees to continuously re-center that purpose and how the board can work to better actualize it.

Taking Meeting Minutes

Board meeting minutes record the board’s actions and decisions, functioning as a legal record, template for future board meeting agendas, and strategic planning device for utilizing time and resources more efficiently in the future. This historical log of decisions is crucial for upholding your nonprofit’s legal requirements, and protecting your organization from any legal issues that may arise. All minutes should be sent out to board members following each meeting in order to be approved and officiated as record.

Minutes illustrate that your nonprofit followed procedures, complied with state law, and obeyed established bylaws in alignment with the mission statement. In general, meeting minutes should include:

• The date, time, and location of meeting

• Type of meeting

• List of attendees, including names and titles of nonvoting attendees and their reasons for attending 

• When the meeting was called to order and when the meeting was adjourned 

• A record of motions, seconds, and whether or not the motions passed

Just as important as knowing what to include in your meeting minutes, is what not to include. Because minutes function as a legal record, it is essential that they do not inadvertently include any information that may misrepresent or tarnish the reputation of your organization. Examples of this are:

• How individuals voted or particular board members’ opinions

• Personal or off-the-record conversations

• Extraneous or irrelevant details

• Personal opinions or interpretations of the minute taker

Meeting minutes should be written in an objective voice, proofread upon completion, and securely shared with board members. Minutes can be shared with prospective sponsors, donors, and other funders, and should not be underestimated in their importance as a display of organizational efficiency and competency.

Nonprofit Board Meetings Should Carry Your Organization Forward

One of the most useful points of advice for any endeavor can be summarized as: keep iterating forward. Board meetings are a crucial part of establishing forward momentum towards meeting your nonprofit’s goals. Fulfilling a nonprofit’s mission statement is akin to a for-profit entity meeting its goals for financial growth.

 A board’s role in a nonprofit is strategic. Each task implemented by the board supports the completion of projects which should ultimately achieve the organization’s mission statement. In other words: board meetings are the conveyor belt upon which purpose becomes action becomes fulfillment-of-purpose. These meetings may seem mundane on the surface, but becoming a strong board meeting facilitator can make or break your organization’s success, cultivate a productive and positive team atmosphere, and help track ways to improve the efficacy of organizational strategy over time.

Remember: nonprofit board members are often people who volunteer their time despite other pressing life demands and responsibilities. These are generous, passionate individuals who are willing to put their best foot forward and offer their most valuable skills and resources, if they are properly supported by a healthy and functional work culture. Board meetings are one way to create this culture, and in many other ways provide both the foundation and framing for your nonprofit’s organizational efforts. Putting in time and effort upfront to be a strong facilitator and make the most of your nonprofit’s board meetings will sow the seeds for future growth.

For more tips on facilitating board meetings, check out our blog: How to Run a Productive Nonprofit Board Meeting.

The post Nonprofit Board Meeting Basics: Agendas, Establishing a Quorum, Minutes appeared first on CANDO 501c3.

While board meetings may occupy the realm of the mundane in our minds—a task that carries undertones of obligation rather than inspiration, nuts-and-bolts rather than boots-to-the-ground—the purpose and importance of these meetings should not be overlooked. In many ways, board meetings are a cornerstone of nonprofit operations, and can make or break an organization’s ability to translate vision into real world impact. 

In plainest terms: board meetings should accomplish something. While this may seem obvious, unproductive board meetings are such an epidemic, the effective facilitation of meetings is a skill in and of itself. Because time spent in these meetings is essential for moving your nonprofit forward with its goals, it is crucial to plan ahead in order to establish a strong structure. Board meetings are, essentially, an opportunity for everyone to get on the same page about goals and next steps.  Strong group consensus is crucial for success in any organizational effort.

The established structure of these meetings not only helps mitigate and minimize unnecessary distractions and make the most of the allotted time, but is an opportunity to support a healthy work culture. Board meetings are a reflection of the organization itself, including how gracefully interpersonal elements are managed, a sense of mutual respect between board and staff, and an ability to clearly define and rally shared values as a source of motivation.

Who Should Attend Nonprofit Board Meetings?

Ideally, attendance of board meetings should be limited to the board of directors, executive director, and executive staff. (Executive directors and paid staff legally should not serve on the board, but their attendance of meetings is often beneficial. Read more here.) With the exception of occasional guest speakers, the people who spend the most time talking in meetings should be the executive director and board members, with attending staff taking on a more secondary, listening role. Having clear boundaries about who holds the floor can help mitigate the temptation for irrelevant conversation, or eating up time grappling with issues that would be better addressed elsewhere. 

How Often Should Your Nonprofit Hold Board Meetings?

It is common for boards to meet monthly or quarterly. This frequency allows for everyone to decide on a date and time beforehand, and encourages board members to focus on overall strategy rather than get hung up on the less-relevant details. Meeting too often will often result in poor attendance and a sense of redundancy or pointlessness. Likewise, meeting too infrequently will make it more difficult to achieve organizational goals, as precious time will be spent recalling where previous meetings left off, before everyone can begin to determine how to move forward. 

Facilitation of Nonprofit Board Meetings

Holding a Strong Container

Regularity and consistency is important. This not only applies to how often board meetings occur, but to the structure of the meetings themselves. A strong meeting structure has all the basic elements of a story: a beginning, a middle, and an (open) ending. It has a beginning that functions to get everyone present and focused onthe task at hand, re-centering shared goals and values. It has a middle that helps move the “plot” forward, determining next steps or outlining an action plan. It has an open ending that dictates where the group will pick up again during the next meeting.

Facilitating a productive board meeting requires using allotted time as effectively as possible. This means keeping attendees on task, reigning in rabbit trails and irrelevant detours in conversations, and continuously returning to the pre-established agenda.

The basic facilitation of a board meeting is as follows:

• Create an agenda and share with board members beforehand. 

• Begin meeting on time.  

• Establish that there is a present quorum.

• Read mission/vision statements. 

• Reiterate meeting goals and keep everyone on task. 

• Designate a timekeeper and person to record meeting minutes.

• Discuss the next meeting’s agenda items and conclude the meeting on time. 

Creating an agenda and sending it out to attendees beforehand will do a lot of the legwork of getting everyone on the same page, so that when people enter the meeting time they are already oriented and more quickly able to dive in. It can be helpful to discuss the most important agenda items early in the meeting, when members are most engaged. 

The meeting agenda and all pertinent attachments should be provided at least one week in advance. This includes past meeting minutes, financials, the Executive Director report, and all other relevant reports or documents for that particular meeting agenda. This will help keep the meeting more orderly and efficient, and allow board members to be more prepared with questions or comments. 

If the meeting begins to feel a bit unfocused and disorganized, simply refer back to the agenda and calmly interject to re-center the next task at hand. Again, establishing an agenda upfront is extremely helpful in this regard, so that attendees have an opportunity to adjust priorities and come to agreement about how to use that time, and this negotiation will not have to intrude on the meeting itself. 

Keep things formal, well-boundaried, and professional in order to discourage eating up time to address interpersonal issues or dynamics. The interpersonal element of running a nonprofit is always present, but board meetings are not the ideal place for this kind of organizational management. Remember: the more clearly you define and reiterate the goal of the meeting, the better able you are to rally the troops to achieve that goal.

Delegate responsibilities to ensure people feel like their participation is needed. Traci Kantoski’s concept of assigning “board champions” in which one board member will champion a specific project/task to completion is one such example, but there are many ways to support a culture of delegation. The key here is that by assigning roles and responsibilities for individuals to carry out in order to achieve a group goal, they are naturally motivated to do what they are supposed to do. 

Time Management

Starting and ending your meeting on time will encourage punctuality, as well as illustrate respect for one another’s time as part of your work culture. It can be helpful to designate a timekeeper who can monitor and signal time constraints to the group. Time frames can be integrated into the agenda for each topic. For example:

1. Roll Call  (3 min)
2. Reading of Mission Statement (2 minutes)
3. Approval of past meeting minutes  (5 minutes)
4. President’s Report (5 minutes)
5. Treasurer’s Report (5 minutes)
6. Committee Reports (15 minutes)
7. Executive Director Report (15 minutes)
8. Old/unfinished business  (20 minutes)
   • Put detail of what will be discussed
9. New Business     (20 minutes)
   • Put detail of what will be discussed
10. Announcements (10 minutes) 
11. Adjournment (1 minute)

Of course, these time allocations act as basic parameters, and some topics may need more discussion. Be realistic about time frames when crafting the time limits into the agenda, and pad time wherever it is likely you will need to be flexible, or you know people will have a lot to say. Having time limits clearly broken down in advance will keep each topic discussion shorter and support ending the meeting on time. 

When people have a sense of the time boundaries, they are more likely to self regulate and get to the point. If possible and practical, encourage a culture where everyone has a chance to speak. If meetings tend to be monopolized by one or two speakers, adjust time boundaries to limit how long each person can speak (such as 2-3 minutes per person) and limit the number of times one person can speak (such as  2-3 times per topic). 

A simple technique for supporting self regulation is to invite people to “step up, or step back.” This means that before people take the floor, the meeting facilitator can clearly state something to the effect of: “People who tend to have a hard time taking up space are encouraged to step up, and people who tend to talk a lot are encouraged to step back.” Most people are fairly self aware in this regard, and will rise to the invitation to be self responsible for respecting the group’s time limits.

To dive deeper into essential elements of productive board meetings, check out our blog Nonprofit Board Meeting Basics: Agendas, Establishing a Quorum, Minutes. 

The post How to Run a Productive Nonprofit Board Meeting appeared first on CANDO 501c3.

For an individual, contributing to a meaningful cause can provide a sense of connectivity and usefulness–a feeling that they are helping. It can also provide a sense that their skill and knowledge is a benefit to the community, affirming the inherent value of all the time they have spent developing their skills and acquiring their assets. For an organization or business, the ability to provide goods or services can illustrate core values and enhance brand identity. Many businesses know the value of giving back to their clients/customers, and seek to espouse brand integrity by aligning business practices with core values shared by the larger community.

In-kind donations are a natural way for humans to organize themselves around community causes. Harnessing these resources means tapping into the village mindset that has supported the larger human family for generations. It’s also an excellent way to develop social networking and establish relationships, giving a “face” to your nonprofit and the importance of its work.

What is an In-Kind Donation?

An in-kind donation is a non cash donation of goods, services, expertise, or time. This includes tangible goods (such as office furniture, supplies, rent-free use of facilities, technology and equipment, property, items for auction, food, clothes, office furniture, vehicles, etc.) and intangible goods and services (such as accounting, legal consultation, fundraising, IT, advertising, etc.). Tangible goods may be used, new, or loaned. Intangible goods may include things like patents, royalties, and copyrights. In-kind donations can be contributed by individuals, organizations, or companies.

Encouraging In-Kind Donations & Asking for What You Need

A strong word-of-mouth network can be just as effective as an on-point social media campaign. Indeed, both of these methods of asking for what your nonprofit needs can enhance one another; getting the message out there in a way that inspires a call to action will almost certainly translate to making a vision a reality. When action steps are laid out succinctly, donors know exactly where to show up, what to bring, and how they can help.

To encourage an influx of in-kind donations to your organization, focus on messaging that appeals to the direct impact the goods and services will provide. For example, if your organization works to support single mothers and you are asking for donations of children’s clothing and baby supplies, you can lay out exactly how much money per year these donations save families, or express the tremendous relief that having basic household items will provide to people who are juggling overwhelming responsibilities. You can also emphasize gratitude and the impact these donations have on your organization’s well being, e.g. “We would not be able to do what we do if it were not for the staggering generosity and dedicated efforts of our amazing volunteers.”

In any exchange, it is important to make specific requests and uphold healthy boundaries. Sometimes nonprofits encounter the issue of receiving more donations than they can manage, or donations of items and services they cannot use. Be specific in your requests to help reduce the amount of literal or proverbial clutter to contend with. State clearly what sort of donations you accept, and what sort of donations you do not accept, as well as your organization’s most pressing, current needs.

As any astute mother can attest, one should never underestimate the importance of good manners. Simple gestures can go a long way in refining your messaging. There are many ways to ask for in-kind donations, including letters, social media campaigns, advertisements, email announcements, and events. People want to help, they want to be useful, and they want to be generous, because it feels good! Appealing to how good it feels to help will likely be more successful than relaying urgency (which is stressful and can even come across as coercive). Sincerity is easy, and is easy to recognize in others. Almost everyone will respond well to a sincere request, a polite declination, and an authentic ‘thank you.’

Setting Up a System to Receive & Record In-Kind Donations

Anything is possible with proper planning and organization. Setting up a system for receiving and recording in-kind donations will streamline the process, reduce stress, and help establish graceful practices around saying ‘yes’ to what is needed and ‘no’ to what is unneeded. For any kind of business or organization, setting up proper recordkeeping is half the battle.

Nonprofits need to have a Gift Acceptance Policy that indicates what sort of gifts they will accept. This policy clearly articulates the nature of the donations the organization can and cannot receive, as well as educates staff and board about issues that may be triggered by certain gifts. A Gift Acceptance Policy should also include parameters for the circumstances under which a gift will be received, how gifts will be recognized and accounted for, and how major gifts like insurance policies or stocks will be handled.

The simplest way to track non cash gifts and their use is with a donation spreadsheet. If a donor gives you an item and tells you what you can or cannot do with it, then you should record the donor’s intent on a spreadsheet. For example: If an artist gives a nonprofit a $5,000 sculpture for their silent auction and says “You can sell it for $2,500 or above, and if you don’t I want it back,” then you should record that information. Whatever the terms are of the item being given should be tracked.

For bookkeeping purposes, in-kind donations can be recorded in a separate revenue account as ‘Gifts In-Kind/Services,’ and the expense can be categorized as ‘Professional Services.’ There are many spreadsheet templates available online for tracking donations and keeping financial records of in-kind gifts. All of these records can be considered part of the ‘intake process,’ whereas offering tax deductible receipts to donors or returning loaned items in a timely manner are part of the ‘return process.’ Laying out this process from start to finish in a way staff can implement easily will ensure the ease of the exchange, and encourage donors to keep on giving!

Are In-Kind Donations Tax Deductible?

Donors can deduct tangible goods. They have to apply a fair market value to the items, which is how much you can realistically sell the item in the market. Donors cannot deduct time, services, or money for raffle tickets, bingo, or lobbying activities.

If a donor receives something in exchange for their donation like a silent auction item or a “giveaway item” (such as a T-shirt), the nonprofit must give a receipt that states the donor received an item valued at $XXX for their $XXX donation. For example, If you hold a fundraiser giving away a free T-Shirt for a $20 donation, then you must state that in the receipt. If it cost the nonprofit $10 for the T-Shirt then the receipt would say: “Your generous donation of $20 included your receipt of a $10 T-Shirt.” The donor would only be eligible for a $10 tax deduction which is the difference between the donation and the cost of the item received.

In-Kind Donations Cultivate Meaningful Relationships

Taking inventory of free, available, abundant resources is one of the best ways to achieve your nonprofit’s mission. It’s not only practical, it taps into a way of relating that contextualizes your organization in a community of mutual aid. Any successful organizational effort is supported by the generosity of others. In this sort of exchange, giving is just as valuable as receiving. When people give, and their gift is received, their altruism rewards them with a sense of enlivenment. Being able to relax into the pleasurable nature of service to others, and having good faith that you can find what you need, will go a long way towards achieving nonprofit goals.

The post Everything Your Nonprofit Needs to Know About In-Kind Donations appeared first on CANDO 501c3.

Nonprofits often wonder how they can get started to write for grants in the first place or, if they have written grants but not received one, how they can set themselves apart from other nonprofits pursuing the same funds.

Foundations are seeking to partner with nonprofits whose programs show proven results or a strong capability of fulfilling their mission through their programs. In order to evaluate nonprofits they look for organizations meeting basic requirements and those exceeding nonprofit standards and guidelines in their operations.

Implementing Nonprofit Standards And Guidelines

Before writing for your grants, make sure you are implementing these requirements in your organization which may increase your success in receiving grants.

Grant Readiness is the process of ensuring the nonprofit organization has met all organizational needs to be a successful and sustainable organization.

Foundations desire to fund organizations who have the capacity and resources to deliver their programs and create desired changes in the community they serve.

Being prepared as an organization before writing for grants will increase the changes for grant funding success.

To be grant ready, nonprofits should ensure all aspects of their organization operations are working:

1. Meeting IRS and State laws, rules and regulations
2. Have compelling vision and mission statements that truly reflect the organization in a clear and concise manner
3. A board of directors that is engaged, meeting regularly, and following the mandated Duties: Duty of Care, Duty of Loyalty and Duty of Obedience
4. The day to day operations of the organization is efficient and properly staffed
5. Programs are meeting the community need and conducted regularly
6. Has financially stable with a variety of income sources
7. Is marketing to increase public awareness of your mission
8. Has partnerships and collaborations with local government, businesses and other nonprofits

Grant Readiness Checklist

Of course in each of these areas there are several considerations which can be found in our Grant Readiness Checklist.

Get the Grant Readiness Checklist

Sign up for our newsletter and get the Grant Readiness checklist!

Consulting

Some nonprofits need professional help to ensure the areas are all properly implemented.

Grant Templates And Grant Strategic Plans

Once in place, the nonprofit should complete a grant template that provides a narrative of programming, compiles all documents into a grant notebook and prepares for customization into grant proposals. The nonprofit board and staff should work on developing relationships with foundation staff by calling them, attending founder forums, trainings and attending networking events.

Grant Strategic Plans are used to identify, prioritize and track grants you will pursue.

Be Prepared

Writing for grants requires preparation. A nonprofit who wants to have a successful grant program should be ready for the scrutiny funders will bring to the organization. The checklist helps organizations understand and implement standard policies and procedures evaluated by funders.

The post How Do I Know If My Nonprofit Is Grant Ready? appeared first on CANDO 501c3.

This year, nonprofits are trying all kinds of fundraising events—virtual, hybrid, and in-person. Since there is a different level of COVID-19 risk in every community, it’s more important than ever to tailor your events to your community of donors’ needs. So, we created a list of fundraising event ideas to help your nonprofit make the most of year-end. 

Year-end is one of the best times of year to gather and share your organization’s mission and impact with your donors. In fact, research shows that 31% of annual giving takes place during the last three months of the year. And, there’s no better time to celebrate your organization’s accomplishments. 

The face of event planning is changing and there is A LOT of room for creativity when planning your year-end event. Events are no longer one-day affairs—your online fundraising event can last several days. You can even pair an online campaign with an in-person event for maximum impact. There are limitless ways to make fun and engaging donor experiences that keep everyone safe. 

Here’s our list of year-end and holiday event ideas for engaging your community in your nonprofit’s work: 

Virtual Event Ideas

Online Ugly Sweater Contest

Ask your supporters to submit photos of themselves in their favorite “ugly” sweaters and hold a vote for the ugliest sweater. The winner(s) get a prize! This is a great way to engage donors on social media. Turn it into a fundraising event by adding a suggested donation during the photo submission or encouraging supporters to host Facebook Fundraisers.

Themed Online Gala

Organizations that pivoted to host their annual galas online actually raise more money than they had in years past. If you want to give your donors an elegant experience, send a high-end gift box to each registrant and host a 30-45 minute virtual program that includes an exciting speaker and a live paddle raise. 

Online Christmas Movie Night 

Pick a Christmas classic (bonus if it relates to your organization’s mission) and encourage your donors to log on and watch the movie with you. Make it extra special by sending participants a movie night box. Give a few ticket levels that add on donation amounts. Hint: this could also be done in person as a drive-in movie night! 

Virtual Holiday Concert

Give your donors a special online experience with a holiday concert! Engage a local artist (or a big name artist) to deliver an intimate living room concert. 

Hybrid Event Ideas

Polar Plunge

Put a new twist on this classic fundraising challenge by inviting your supporters to take videos of themselves doing a “polar plunge” AND hosting an in-person polar plunge. 

Ski-A-Thon

If you’re in a wintry area, encourage supporters to set a goal of how many miles they will ski or snowboard in support of your nonprofit. Participants ask peers to “sponsor” them (think $1 per mile) and then they ski throughout the winter! Participants can submit videos of themselves on the mountain and you can host a community ski day at a local resort to encourage folks to gather and support your nonprofit safely. 

Restaurant Fundraiser

Talk with your local restaurants about offering a dine-in or take-out fundraiser.  If they agree, let your donors choose to dine-in or take out. Encourage them to order with a special code that gives a percentage of the sale to your nonprofit. 

COVID-safe In-Person Event Ideas

Sledding or Ice Skating Event

Sledding and ice skating are both family-friendly activities great for getting people out of the house and involved in your nonprofit. Charge a ticket price and create fun games and contests for donors to participate in. 

Snowman/Snow Fort Contest

Get the whole family involved with a snowman or snow fort contest! Sell entries to the contest and take it online for a vote! 

Holiday Lights Tour

Many local neighborhoods put on a spectacular show of lights. You can partner with them to make it an unforgettable experience for your donors! Host a tour with a low ticket price and suggested donation, and offer hot holiday drinks and information about your impact during the tour. 

With all of these fundraising event ideas, adding the flavor of your organization is what will make them a success. 

While you’re planning the event, be sure to think about how to engage corporate partners as event sponsors and how you are planning on accepting donations. If you’re looking for advice on planning your nonprofit’s end-of-year event, look no further than a free consultation with Linda Akey, Competent Assistance for Nonprofit’s Founder. 

The post 10 End of Year Fundraising Event Ideas for Virtual, Hybrid, and In-Person Events appeared first on CANDO 501c3.

Did you know that you can likely get a discount on mailings for your nonprofit?  The USPS has special pricing for nonprofit mailings. This means you can cut down costs by 54%-80% on mailing your annual appeal letter, event invitations, and more. However, nonprofits interested in creating an account with the USPS and taking advantage of nonprofit pricing must apply and adhere to guidelines set forth by USPS. 

Eligible Nonprofits

Eight categories of nonprofits are eligible for nonprofit pricing on mailings: 

• Religious
• Educational
• Scientific
• Philanthropic (Charitable)
• Agricultural
• Labor
• Veterans
• Fraternal

To determine eligibility, the USPS examines the following documentation: 

• The organization’s primary purpose
• The organization’s nonprofit status

Applying for Authorization

A nonprofit must apply for authorization at all mailing offices from which it plans to send bulk mailings. The application is called the “Application to Mail at Nonprofit Standard Mail Rates” and required documentation includes your nonprofit’s 510(c)3 letter and proof of its purpose, for example, your by-laws. 

Requirements for Mail Sent at Nonprofit Prices

Mail sent at nonprofit prices looks just like regular USPS Marketing Mail. The only difference is the required marking for nonprofit mail. NONPROFIT ORGANIZATION, NONPROFIT ORG, or NONPROFIT must appear:

• In the imprint indicia – this is for organizations that have an “advance deposit account” who send mostly identical mail pieces, 
• On a nonprofit precanceled stamp, OR
• As part of the meter impression, AND
• Printed on the mailpiece, adjacent to the postage area.

(The option your nonprofit chooses depends on how you choose to pay for your bulk mailings). In addition, the nonprofit’s name and address must be clearly visible, either on the envelope or prominently placed in the contents. And, if a return address is included on the mailpiece, then the name and address must be that of the authorized organization.

There are some requirements for what type of content your mailing can include. The most notable are: 

• No handwritten content, except in specific instances. 
• Stickers, labels, and perforated handouts must not exceed .007 inches in thickness. 
• You cannot send mailings selling a product for a price. 

Bulk Mailings

Nonprofit mail is sorted and prepared the same way as regular USPS Marketing Mail. However, there is a special permit required for bulk mailings, at least 200 pieces or 50 pounds of identical mail. Many organizations use a mailing service that already has a permit and don’t have to apply for their own. However, if you’re processing your bulk mail in-house, your nonprofit will have to apply for a permit. 

How much will it cost?

You can calculate an estimated price of your mailings using the USPS calculator, found here. 

Not sure what to mail? We cover annual appeal letters for nonprofits here. 

The post Compliance Corner: Discounted Mailings for Nonprofits: How to Apply and How to Comply appeared first on CANDO 501c3.

It’s October, the season when many nonprofits organize an annual letter campaign. Letter campaigns can be a great fundraising tool when there is enough planning and personalization. 

How Letter Campaigns Can Go Wrong

However, letter campaigns can also be disastrous. Once, we saw an organization use an old mailing list to send a generic appeal letter to 500 supporters, some of whom hadn’t supported the nonprofit for several years. The organization opted not to use a mailing service, and instead, asked their staff to print the 500 letters and stuff the 500 envelopes by hand. Not only was this expensive for the organization (about $1 per letter), it took up a TON of staff time.

Once the letters were sent, the nonprofit started to receive phone calls from angry donors who received letters addressed to deceased loved ones and donors who had never signed up for a mailing list and didn’t like being solicited. In the end, the organization received a few checks from donors totaling $475, just a few dollars short of what they had spent on the campaign. So overall, the organization lost time, money, and their reputation among certain donors. 

Make Your Letter Campaign a Success

All nonprofits want to avoid this nightmare and the good thing is there are ways to plan and implement a letter campaign that is truly successful and engages donors in meaningful ways. Here is our guide on how to implement a successful annual letter campaign this fall.

1. Plan Your Year-End Campaign

Your year-end giving letter should only be one part of your year-end campaign. While some donors (especially older generations) appreciate a formal letter in their mailbox, it’s better to reach other donors via email, phone, or social media. Think about what segment of your donors is most likely to give because of a letter and only send the mailing to that group of supporters. For the donors you do send letters to, it’s important to follow up the letter with an email, or even better, a phone call. 

To fully prepare for your year-end campaign map out a timeline describing when you will complete each task.

Sample Timeline:

• AUGUST: Set Goals, Outline a Theme
• SEPTEMBER: Segment Your Donor List
• OCTOBER:  Write Your Year-End Appeals, Prepare online giving channels and envelopes
• NOVEMBER:  Review and Finalize letter content AND send the first round of appeals
• DECEMBER:  Update donor progress, send follow up asks, and thank donors
• JANUARY:  Report progress and year-end success to donors

2. Define and Segment Your Audience

Decide who among your donors you will be sending letters to. While every nonprofit is different and has to think about what will be best for their donors, a general rule of thumb is to send letters to older donors and supporters who have opted to donate via mail in the past. Once you’ve chosen who you will send letters to, you may consider segmenting your audience further. You could base these segments on how much donors have given in the past, when they last gave, or what programs within your organization they have given to. The more personalized each appeal is, the better. Make sure you are calling each donor by their preferred name and that it is spelled correctly. You can also add acknowledgment of the donor’s past giving and impact to make it especially personalized. 

3. Get Your Donation Forms Ready

Every good mailing comes with an easy way to donate by mail. Include a pre-paid return envelope where donors can enclose cash or a check. Read our Compliance Corner about mailings to learn about how to send mailings in bulk and navigate the legal requirements around pre-paid envelopes.

4. Give Thanks and Stay Positive

Make sure to promptly acknowledge mail-in donations with a phone call and follow up with a letter that doubles as a tax receipt. Acknowledging donations is an important part of building a long-term relationship with your donors, and failing to thank your donors can result in them feeling unappreciated and deciding not to make further gifts.  

5. Language Matters

The language you use in your appeal letter is a reflection of your organization’s brand and values. Use simple language in a consistent tone that is in line with what your organization cares about. Don’t use elaborate, difficult-to-read wording and stay concise. The letter shouldn’t exceed one page in length.

6. Create a Sense of Urgency and Highlight a Call-to-Action 

An effective appeal letter includes a clear, urgent call to action. Appeal letters are more effective when you are fundraising for a specific need instead of for your organization in general. Think about why this funding is important to your organization now and verbalize it in your appeal letter. Here are some examples of calls to action that we love: 

• Give $50 on Giving Tuesday so that one family gets a holiday meal. 
• Please use the enclosed pre-paid envelope to contribute $100 to our afterschool arts program. 
• Please donate online or by check to our effort to raise $100,000 for 100 children with cancer.

7. Use Storytelling to Make It Compelling

Donors are often used to receiving dry, lifeless appeal letters. Imagine what it would be like to receive the letter in the mail, and what would keep you reading the letter. The most effective way to capture a donor’s attention is to tell a compelling story about your organization or a program participant. Including a photo goes a long way. 

8. Try a Postcard Instead

Postcards are less expensive, leave more room for compelling imagery and force you to be concise about your story and call to action. Think about whether it’s time for your organization to say goodbye to the classic appeal letter and opt for a postcard instead. 

9. Don’t Let Yourself Spend Too Much Time on the Appeal Letter

We often see nonprofits sink a lot of staff time into their appeal letters. Luckily, there are many resources to help you get started on a quality cover letter. One of our favorites (and one of the best-kept secrets in the nonprofit industry) is www.fundraisingletters.org, where you can find templates for every kind of fundraising letter you can imagine and even more good advice on how to run an effective annual letter campaign. 

Is this your first annual letter campaign? We recommend understanding how to comply with the legal requirements for nonprofit mailings. If you’re looking for guidance on your annual campaign, schedule a free consultation with Linda Akey. 

The post Make the Most out of Your Nonprofit’s Annual Letter Campaign appeared first on CANDO 501c3.

Making sure your organization is set up to accept online donations on Giving Tuesday can be as labor-intensive and technical as compiling a grant application. Here’s your checklist for ensuring that your organization is ready to go on November 30, 2021. Our advice—complete this checklist well in advance of Giving Tuesday. Start in September.

1. Set up donations on your Facebook Page.

Setting up donations on your nonprofit’s Facebook page takes more than just adding it in your settings. Every organization must fill out an application that takes 2-3 weeks to process. Setting up a donation button will allow individuals to set up Facebook fundraisers for your organization and allow people to donate directly through your page. You receive proceeds from Facebook donations through Network for Good on a monthly basis.

2. Set up online giving on your website.

There are many options for nonprofits to accept online donations, so you’ll want to choose a payment processor that meets your organization’s needs. One simple option is PayPal, but if you are a larger, more complex organization, you may want to look into more comprehensive fundraising tools.

3. Check to see if you have a local GivingTuesday chapter with its own registration process and register.

While participating in GivingTuesday doesn’t require registration, some local efforts have special online platforms that do! Make sure you know how GivingTuesday is celebrated locally and how to participate.

4. Register on your state or regional-specific giving day pages.

Some states, cities, and counties have their own giving days. Colorado Gives Day, Georgia Gives Day, and Give to the Max (MN) are some that happen in November and December this year. Oftentimes, local giving days have a special online platform where you will need to set up a profile for your organization.

5. Participate in workshops.

There are many workshops available that take you through the steps necessary for successful online fundraising. Here are a few of our favorites: 

• Candid – Build a Giving Tuesday Campaign that Inspires and Converts 
• Network for Good – Year-End Preparation Outreach You Can’t Go Without
• CauseVox – How to Launch a #GivingTuesday Campaign

Want advice on your year-end fundraising? Schedule a free consultation with Linda Akey today.

The post Grant Heartbeat: Getting Ready for Giving Tuesday appeared first on CANDO 501c3.

Have you considered co-branding with a company in support of your nonprofit’s mission? Co-branding can be a highly effective strategy for nonprofits to raise funds, engage volunteers, and build wider support for their cause. There’s more to co-branding than you might think, and in this article, we walk through everything you need to know to get started with co-branding.

First, what is co-branding?

Competent Assistance for Nonprofit’s Founder and Principal Linda Akey has a simple definition of Co-Branding.

“Co-Branding is the development of long-term relationships between for-profit and nonprofit organizations that identify the various ways they work together to meet each other’s needs.”

The key to a successful co-branding partnership is that both the nonprofit and the company involved benefit from the relationship. A recent example is Target and UNICEF’s co-branded campaign, Kid Power. Target introduced a new product, a fitness band to encourage kids to be active. Kids with the band could use an app to track their activity and earn points, which unlocked funding to support children in underserved communities around the world. UNICEF got exposure and funding, and Target got to align a product that benefits kids with a cause that benefits kids. It was a win-win. Within the first six months of the partnership, Target sold over 135,000 Kid Power bands.

So why exactly do corporations—even small businesses—want to partner with nonprofits?

There are many ways to build a successful relationship between a nonprofit and a company. Both have experience, resources, knowledge, and value to share with one another. Nonprofits are in a unique position to show businesses the link between philanthropic work, and their for-profit purpose.

Corporations often seek brand recognition, new customers, increased sales, public recognition of their social responsibility, increased revenue, lower expenses, community awareness, more community connections, and tax breaks. Additionally, corporations are navigating a climate where consumers expect more from them than ever.

• 78% of Americans believe companies must do more than just make money; they must positively impact society as well. – 2018 Cone/Porter Novelli Purpose Study
• 64% of consumers choose, switch, avoid or boycott a brand based on its stand on societal issues. – Edelman’s 2018 Earned Brand Study

When companies partner with nonprofits, many desire active roles in nonprofits’ programs and fundraisers. They appreciate visiting the nonprofit, participating in workgroups, providing insight on how the nonprofit can improve, and share ideas about program development or fundraising opportunities.

So how can your nonprofit benefit from a co-branding partnership?

Nonprofits seek funding for their services and events, increased awareness of their mission, brand solidification, volunteers, in-kind donations, and long-term donors.

The best co-branding partnerships creatively provide more than one of these benefits to the nonprofit.

How to Get Started

Like any relationship, the hardest and most important step is finding the right partner and building trust. This requires time, honest and straightforward communication, and commitment on both parts.

Step 1: Find a company that matches your mission. When first approaching a company, it is important to do your research by going to their website and seeing what they say about their philanthropic work. You can also research other nonprofits they sponsor to determine if your nonprofit is the kind of organization the company supports.

Step 2: Know what you want and need from a corporation. Clearly outline what you need—board members, volunteers, in-kind donations, funding, and whatever else—in a one-page document.

Step 3: Prove your worth. Companies want to partner with sustainable nonprofits with proven results. Like foundations and grantmakers, corporations appreciate when you share evaluation data about the success of your services. In addition, companies look for a Return on Investment (ROI). They want details on how the partnership will help them.

• How many people will they reach?
• How many marketing impressions will they get?
• Can their employees participate?
• How can they measure sales from the relationship?
• How will this help them achieve their goals?

You’ve found the perfect match. Now what?

Once you have identified your partner, your next step is to build the foundation of a sound relationship that can grow in the long term. There are a few important steps to ensuring a strong partnership:  

Step 1: Put it in writing. Create a contract that includes the partnership’s key objectives, success measures, duration, and what each party receives, and other important information. 

Step 2: Set up an evaluation plan, including communication. Find ways to record and share metrics. This ongoing evaluation plan may include meetings and regular communication to ensure both organizations feel comfortable with the relationship.  

Step 3: Appreciate your partnership. Take steps to let the company know how much you appreciate your relationship.  Invite them to a donor appreciation event or write an online review about the company. 

Now is the Time to Cultivate Corporate Partnerships

Fall is when many companies set their philanthropic goals and budgets for the coming year. It is a great time to reach out to companies who are aligned with your mission to begin to explore a relationship. 

If you already have a great corporate partner, there are many ways you can leverage the partnership to help you with your year-end fundraising efforts. 

1. Secure a match. Many companies are open to pledging a match to motivate your donors to give. There are many ways to structure a match. The company may want to give dollar for dollar up to a certain amount or set an amount that your nonprofit has to raise to get any dollars. Knowing their dollars will go twice as far is certainly motivating to donors, as research shows. 
2. Ask the company to sponsor a fall fundraising event. Event sponsorships are a great way to begin a relationship with a company because they can attend the event and see the tangible impact of the partnership. Before soliciting sponsorships, make sure you know how to comply with laws regarding sponsorship benefits.

Co-Branding with a corporation can provide a multi-year partnership that will benefit your nonprofit, and the company, for maximum success. By learning what the corporation wants from the relationship, and being clear on what you want,  you can develop a successful partnership. Linda Akey shares even more important information about co-branding on the Butterflyly Podcast. Subscribe on Spotify or Apple Podcasts to get the episode when it’s released later this month.

If you are curious about how corporate partnerships can help your new nonprofit, schedule a free consultation with Linda Akey.

The post How Your Nonprofit Can Benefit from Co-Branding and Corporate Sponsorships appeared first on CANDO 501c3.