Non-Profit Fundraising

Using The “Weapons of Influence” – for Good

 by Christian LeFer – I had heard about Robert Cialdini’s definitive work, a book called “Influence – The Psychology of Persuasion” referenced repeatedly by my favorite marketing gurus, including Eben Pagan and others but had not picked it up until recently; I regret not reading the book sooner. During my career as a copywriter and non-profit fundraising professional for political candidates and causes, I had learned by reverse-engineering and applying the tactics of getting people to “wake up” from what Eben Pagan calls an often “sleepy, boring existence” of much of everyday modern life – and to take some kind of action – by voting, giving, or volunteering. I had learned the practice, but not the theories, of influence. This is like playing guitar by ear without learning to read music: a limiting, (and frankly, lazy), way of being a musician.

Why “Influence” is a must-read for Non-Profit Fundraising

As a consultant to charitable organizations and businesses who helps organizations in obtaining IRS tax-exempt status, non-profit fundraising, and implementing effective marketing systems, I have been carefully going back and re-visiting (or in this case, just visiting for the first time!) the classics on relationships, sales, marketing and human motivation. “Influence” by Robert Cialdini is among my most valuable reads so far – read on to see why I call it a “must read” for non-profit fundraising and business leadership.

In the revised version of “influence” Robert Cialdini weaves a compelling and utterly readable fabric of what he boils down to “compliance” using analogy, anecdote and applied research. We learn why coercion doesn’t work as well as commitment, how people form and ultimately force themselves to live up to a certain self-image – a self-image often directed or influenced by an outside person or interest who then uses that image to induce behaviors – and we also discover many other truths that many of us would rather not confront or believe about ourselves.

The Moral Imperative of using Your “Influence”

What I like about the book, and Cialdini’s treatment of the sometimes disconcerting subject matter, is that he acknowledges that these “Weapons of Influence” are morality-neutral – they can be used for good or for evil. These six weapons, then, ultimately serve those who would use them. Being one who believes that I am fighting for good in this world (which I will admit, is often also the belief of madmen and used car salesmen), shouldn’t I then learn about and wield these weapons as deftly as is possible? Certainly. And I hold scorn and pity for the one who sticks his head in the sand and refuses to learn these arts for the betterment of their fellow man.

My biggest takeaway from this book is that, while we have all used the various weapons at times in our lives, I have a much better understanding of how they connect and reinforce each other. Cialdini uses the story of the Krishnas’ “flower gift fundraising” model to demonstrate how the weapon Reciprocity works with that of Commitment/Consistency. When an expert says we’re running out of some essential commodity, Authority is often powerfully coupled with Scarcity. Web platforms such as Facebook create an overwhelming elixer out of the remaining two two weapons, Social Proof and Liking. Whether you are involved with non-profit fundraising or simply as a traditional and foster parent, understanding these six human motivating values is invaluable, even indispensible.

Conclusion: Understanding Influence is the Antidote to the “Sheeple” Syndrome

The final truth is that everyone from Mother Teresa to your dear old grandpa has an agenda, and has the need to get someone to do something, at some point. It may be in child rearing, in asking for help in a time of need, or in saving someone’s life. The sooner any person understands the push and pull of using influence and it being used on them, the sooner they will lead a more rational, self-directed, and might I say more enlightened existence. Then, when the pitchman, the preacher, or the panhandler makes that momentous appeal in a way that will impact your wallet – or maybe even your very soul – you can go off into eternity having made the a more rational decision, and more likely for the right reasons.

Perhaps no greater contribution has been made to awareness and enlightenment as it pertains to influence than Dr. Cialdini; I predict that my copy will become dog-eared, the pages yellowed as I pick it up again and again over the years, marveling over how my understanding of Influence has benefited me in non-profit fundraising, in business, in parenting, and in life.

Tags: Non-Profit Fundraising, Sales & Marketing, Leadership, Book Reviews, Christian LeFer

I am very proud to announce the publication of my new eBook, 7 Deadly Mistakes of Filing Your IRS Non-Profit Application, written just for you. Just in time, since the IRS recently changed Form 1023 and made it a bit more stringent.

We’ll be releasing this eBook for Kindle and iPad soon,, but I wanted to give everyone who comes to the GetNonProfitStatus blog a chance to get it at no cost beforehand.

This beautiful eBook covers the pitfalls of filing your IRS Form 1023, the “Application for Recognition of Tax-Exempt Status.”

Brought to you by the same folks responsible for our 17,000-page tax code, Form 1023 submitted with just common, honest mistakes can land you in the briar patch of endless delays, frustration and lost opportunity – as your non-profit application languishes on the desk of an IRS bureaucrat in Covington, Kentucky.

One case study I include even chronicles the real-life situation of an organization whose hired attorney accidentally checked the wrong box. Their Form 1023 was held up for  three years waiting for a determination, while donors and staff wondered if they’d ever get non-profit status!

7 Deadly Mistakes started out as just another blog post and perhaps a memo for friends, who are always asking me about what mistakes to avoid when setting up a non-profit charity or ministry organization.

But I can never leave well enough alone, and I ended up wanting to make it a high-value product that would really help change the way people look at the Form 1023 Application and the IRS agents who review them.

Don’t get “owned” by Form 1023!

At around 32 pages, it’s no War and Peace, but it certainly delves into the primary delay-inducing errors that thousands of non-profit founders encounter.

If you haven’t yet, be sure to fill out the form below to grab your copy today. Don’t get “owned” by Form 1023! It covers:

Deadly Mistake #1: Failure to Clearly State Your Organization’s Mission and Purpose

Deadly Mistake #2: Failure to Describe How All of Your Activities Relate to Your Purpose

Deadly Mistake #3: Failure to Complete and Enclose All Applicable Schedules

Deadly Mistake #4: Failure to Include Your Organization Name and EIN on Each Page

Deadly Mistake #5: Failure to Include Proper Addenda and Policies

Deadly Mistake #6: Failure to Address Conflict of Interest Issues

Deadly Mistake #7: Violating IRS Rules by Indicating Non-Exempt Purpose or Activities

But more importantly, we’ll help you navigate your way past these rocky shoals and give you principles, some concrete advice and action items to help you put together a clean, properly formatted and presented Form 1023, IRS Application for Tax Exempt Status.

For nonprofits, Facebook can be a valuable marketing tool to spread the word. But isn’t marketing for profit companies? Yes, but as part of a new breed of ” social entrepreneurs” why not look at marketing your nonprofit on Facebook? You have a cause that can generate donations — so present it in a place where potentially millions of people can find out about you.

Organizations using Facebook include The American Red Cross, Nothing But Nets, (RED), Call of Duty Endowment, Easter Seals, Big Brothers Big Sisters of America. All of these have increased their global visibility and provided a new avenue for potential donors to find out how their donations are being used. Facebook has also given them another way to demonstrate the high transparency and accountability standards that government agencies and donors have come to demand. But is Facebook only for the “big ones”? Definitely not.

Your Nonprofit Marketing Plan

Facebook makes sense as part of a larger plan for small organizations that have wondered how to market a nonprofit effectively without breaking the bank.

When it comes down to it, Facebook for nonprofits knows no bounds. Why? You can send a message to all your Facebook friends announcing your nonprofit’s new Facebook page. Ask them to “like” or “share” your organization’s Facebook page with their friends. Their Facebook friends can share your Facebook page with their friends, and so on. That’s only the beginning. Do you see the potential of Facebook for nonprofits?

With a little time and effort, your organization can have a Facebook page people can “like” if not love! But keep in mind that it can take some time before measurable results surface.

Setting Up Facebook for Nonprofits

After first setting up a Facebook page for your nonprofit, you’ll need to enter “What We Do” (your mission statement) in the “About” section of the page. Your organization’s “What We Do” statement is the first thing people will see when they land on your Facebook page. Think “Power of First Impressions.”

The next step is to generate content. Put up examples of how your organization fulfills the “What We Do” statement – stories from people your nonprofit has helped, great people photos, statistics of money raised and number of people helped and other helpful tidbits about your organization and what it does. You’ll get the idea, and it will become an ongoing, enjoyable activity.

Is It Too Much Work? What If I’m Clueless?

Considering how to market a nonprofit – how much work is involved in setting up and maintaining your Facebook presence? Well, do you want your page to be simple and sweet? Or do you want it to have some pizzazz? If someone in your nonprofit possesses technical skills and interest, and has the time to make good use of them, you could save money. Otherwise it may be wise to outsource at least the technical aspect.

As with any idea, reaping the fruit of Facebook for nonprofits will first take time to bloom. Don’t let that stop your organization from exploring its potential.

Here’s a great place to see both what others are doing and explore exactly how Facebook works for nonprofits. And, if you’re ready to do it, here’s “Get Started.”

While you’re at it, see my video Fundamentals of Fundraising in case you need to hire a Facebook techie. And check out my other high quality nonprofit training videos – bookmark it so you can take advantage of my growing list!

Please, share your comments on using Facebook for nonprofits below.

The IRS uses non profit Form 990 for organizations to file a “Return of Organization Exempt From Income Tax.” This annual report to the IRS must be filed by non-profit organizations each year to document income and expenditures, demonstrating that the organization operates as a non-profit organization.

“Who needs to file non profit Form 990?” Simply put, any organization that wishes to retain their tax-exempt status. If your organization fails to file non profit Form 990 for three years in a row, the IRS automatically drops the organization from their list of tax-exempt entities. As you may have seen in one of our previous blog posts, “No Longer Tax-Exempt,” an organization dropped for this reason will have to file Form 990 and pay a nominal fee for regaining tax-exempt status retroactive to the date tax-exempt status was lost.

Why is non profit Form 990 changing?

Complex forms may not be the most compelling read on a blog. One thing to note, however, is that the IRS is always tinkering with how organizations should report their revenues and expenditures on non profit form 990. Many changes were made in 2009 and 2010, when the IRS worked on making non profit Form 990 simpler to understand and fill out. They want to do more, so earlier this year the IRS requested public input on proposed changes in order to facilitate a more user-friendly format for filing the non profit form 990 return.

Some of the previous comments have to do with transparency and accountability for non-profits and the way they document revenue and expenditures. The public is asking the IRS to hold non-profits at a higher level of transparency and accountability by disclosing the amounts paid to management and leasing companies that are, in turn, contracted to pay the salaries of the non-profit’s executive team.

On a related point, there are those who would like to see the new IRS non profit form 990 lower the reporting threshold for key employee salaries. A higher threshold, they say, inhibits organizational transparency and makes it easier for non profits to withhold information regarding those key employees whose salary might be unreasonably high.

Other issues regarding non profit Form 990 have to do with how an organization reports revenue from government funding and grants. As far as receiving revenue from a government agency, the IRS wants to know from the public how it would be easier for nonprofits to report revenue from the government. Some of the comments the IRS received about these new IRS forms center on itemizing the revenue for services the organization receives from the government and consolidating that into one line item on the form.

Non profit Form 990 comment period ended August 1

All comments will be made available to the public. Their announcement gives more detail about the areas of concern: IRS.gov – 2011 Form 990 – Issues for Public Comment Announcement 2011-36 (IRS Form 990 Announcement)

It’s vitally important for your non-profit organization to stay on top of the changes proposed and implemented by the IRS. By staying on top of new IRS forms for non profits and how they can impact your organization, and by filling out non profit Form 990 properly and according to IRS requirements, you’ll save tremendous headaches.

In what ways are you hoping non profit Form 990 will be changed?

Nonprofit fundraising is a hot topic in this shaky economy. With economic uncertainty looming, what has your organization been doing to raise funds to advance its cause? I hope your organization isn’t relying solely on government money.

Why?

Federal budget cuts and the future of nonprofit funding

Take a look at what happened recently in Minnesota. Their state government was shut down for over two weeks. Finally a tentative deal was reached between Democratic governor Mark Dayton and the Republican-controlled state legislature.

Take it step a further. Those of you keeping a close eye on Capitol Hill know about the political fisticuffs regarding cutting back federal spending and raising the debt ceiling. The debt ceiling got raised, but obviously that is not the end of our troubles.

What impact does all this political activity have on the nonprofit sector? How has cutting state and federal budgets affected nonprofit fundraising?

Nonprofit fundraising nightmare

Just to give you an example, the Western Resource Conservation and Development in Utah had their federal funding taken away due to federal budget cuts, turning them into a head without a body. Another nonprofit, Learning Ally, is in the same situation because the Department of Education slashed grant funding to nonprofit organizations they once funded. Learning Ally once provided a free At-Home membership for helping students with reading and other learning difficulties. They now have to charge for annual membership.

For organizations that once relied heavily on government grants to fulfill their dream of helping thousands, if not millions, of people, the dream is becoming a  nonprofit fundraising nightmare.

Social entrepreneurship and money for nonprofits

If your organization is one of those losing a substantial portion of your nonprofit fundraising potential, you have the opportunity to get out of this bad dream by engaging in what built America and made her great — entrepreneurship. In the realm of nonprofit fundraising, I call it social entrepreneurship.

What does social entrepreneurship mean?

Entrepreneurship isn’t limited to for-profit industries.

Learning how to raise money for a charity and fully fund your nonprofit organization has its seed in the spirit of entrepreneurship. Networking and meeting people who share your vision. Getting out and doing what some people only dream about doing.

You have a great idea for a nonprofit organization. Whether it’s providing eyewear for people in India, teaching English as a second language in northern Thailand, or feeding the hungry in your own neighborhood, it takes more than having a good idea. Your organization needs funding. Nonprofit fundraising means getting out of your comfort zone and taking action: Ask for donations.

Some people feel awkward about asking for donations for a nonprofit fundraising campaign. That’s natural. But how else are you going to raise the money to feed the hungry, teach people how to read, or help find a cure for cancer? When you receive a “no” from a potential donor, it’s easy to become discouraged. But take heart - that “no” is a step closer to a “yes.” With each “yes” the flywheel of making a difference in this world begins to turn with more speed.

“Fundamentals of Fundraising” instructional video

If you’re still uneasy about whether you can plan and launch a successful nonprofit fundraising campaign, see my free training video “Fundamentals of Fundraising“ to help you get started – and back to making the dream happen.

If you enjoyed this article, give it a “Like” and pass it on! And share your comments about your experiences – good or bad – with nonprofit fundraising.

The time has come to find board members for your nascent nonprofit organization. “But how do I do that?” you ask. Here’s how – don’t start looking until you do this:

First Things First: Your “What We Do” Statement

Before going out to find board members for your organization, you need to have a mission statement or, as I prefer to call it, a “What We Do” statement. Let’s say you want to start a nonprofit that rescues pets from cruelty and abuse and finds good homes for them. Your ideas for this nonprofit organization may be enough to flood an entire city, but you don’t want to articulate all of your ideas at once when you’re out to find board members for your nonprofit. If you flood potential board members, they will put up a wall of sand bags made up of reasons why they can’t be members of your nonprofit board. So formulate a clear, concise “What We Do” statement and commit it to memory.

Use the “What We Do” statement to recruit nonprofit board members. That will save you time and save them from getting bored with your recruiting efforts.

Conflict of Interest Can Cause IRS Conflict

A major issue that often raises an IRS red flag – and can have you seeing red because your tax-exempt status is denied or revoked – is having a conflict of interest among you and your nonprofit board members. The IRS looks at a number of different things related to conflict of interest among nonprofit board members. Here are a few:

• Does a board member stand to gain or profit from being on the board of directors?
• What type of relationship does the board member have with the founder — business, family, or otherwise?
• Does the board member receive excessive pay, benefits, or other compensation?

Find board members who will not have a conflict of interest with your organization. However, if any potential conflict of interest exists, fully disclose that on your IRS 1023 form. Being upfront with the IRS about the relationship of your nonprofit board members is easier than having to explain to the IRS later on what you are doing to mitigate and eliminate conflicts of interest.

Who Should I Ask to Be on the Board?

Usually I recommend asking friends before family. Why? The probability of a perceived conflict of interest with a friend is less likely than having a perceived conflict of interest with a family member.

That’s not to say you can’t ask family members to serve as board members. Many nonprofits have board members who are members of the same family. If you have family nonprofit board members, just be sure to disclose that to the IRS. You don’t want to slow down or halt the process when you get tax-exempt status for your nonprofit organization.

Nonprofit Board Members on Board? What’s Next?

When you find board members willing to serve as president, secretary, and treasurer of your nonprofit:

DO…

• Make your board members’ job as easy as possible.
• Have them sign a “consent to serve” form.
• Have your nonprofit board members disclose ANY potential conflict of interest.

DON’T…

• Make the task to find board members more difficult than what it needs to be.
• Forget to make yourself a board member as the founding member.

See my training video “Beginning Board of Directors” for more on how to find board members . And be sure to check out my free Training Videos and Resources on GetNonProfitStatus.com. There you will find examples of a nonprofit “Conflict of Interest Policy” and a “Conflict of Interest Compliance Form.”

If this article on how to find board members and set up your nonprofit board was helpful, give us a “like” and and tell your friends!

Reinstating Exempt Status

Is your nonprofit organization in search of what to do about reinstating exempt status with the IRS? As you’ve probably heard, the IRS dumped a truckload of nonprofit organizations from their list of organizations having tax-exempt status.

Roughly 275,000 non-profits were told they had better get busy reinstating exempt status after being revoked in June 2011 for failing to file Form 990 reports for three years in a row. This action by the IRS is in compliance with the Pension Protection Act of 2006 (PPA) that calls for more transparency and accountability for nonprofit organizations.

“To learn about a shortcut to reinstating exempt status in as fast as 30 days guaranteed, go here now.)

Some experts in the nonprofit sector justify this action, stating that many organizations have simply fallen by the wayside and ceased operation. You know how it goes: a group of committed individuals unite for a single cause fueled by the desire to help others, but sooner or later the drive and determination to maintain the organization dissipates. Inertia takes over. Form 990 reports don’t get filed three years in a row, and BAM! The organization is defunct.

Other organizations, run strictly by volunteers, have also had to worry about reinstating exempt status after being revoked by the IRS for one of the following reasons:

• Volunteer leaders miscommunicated about who would be responsible for filing their IRS annual report.

• Nonprofit leadership were unaware the organization had to file annual reports to maintain tax-exempt status.

•  “No consequences = no action” – for many years there wasn’t a penalty for failing to file 990’s, so many busy non-profit leaders didn’t file.

• As with many Big Brothers/Big Sisters chapters, local and state chapters assumed a national organization’s tax status had them covered. It didn’t.

You can bet that a number of organizations were surprised to learn their tax-exempt status was revoked. That means reinstating exempt status has become a priority – perhaps even for you.

How can my organization go about reinstating exempt status?

The IRS recognizes the conundrum nonprofit organizations have if their tax-exempt status has been revoked. Instead of making organizations jump through myriad hoops for reinstating exempt status, the IRS extended the filing period to the end of 2012 for reinstatement. They also greatly reduced the fee for filing for tax-exempt status from $400 and $850 down to $100.

An added bonus to filing for reinstating exempt status before the end of 2012 is the IRS lets your organization have tax-exempt status retroactive to the date your nonprofit’s exempt status was revoked. That means your organization doesn’t have to pay taxes for the time during which your organization did not have tax-exempt status. The benefit to the non-profit world is almost incalculable.

Your 501c3 organization must fill out IRS Form 1023 to regain what was lost – tax-exempt status. That means precious time, effort and money reinstating exempt status, ensuring that your paperwork is filled out properly. But now there is a fast, easy, and cost-effective solution. Our product, the Turbo 1023 Platinum, along with our team of experts can help put you ahead of the curve for reinstating exempt status so that your organization can do what it does best – provide services that touch an untold number of lives in a positive way.

What are you waiting for? Click here, and you can get a complimentary copy of my eBook which covers the dangers and pitfalls of filing your IRS Application for Tax-Exempt Status, and also find out about my Turbo 1023 Platinum Online 501(c)(3) Filing Service. You can also get access to some of our most popular online video training – FREE. We can make completing Form 1023 and all the addenda a breeze. Sign up now, and you can access the help of a trusted and proven professional, for 67-80% less than you’d pay an attorney, and get help reinstating exempt status ASAP!

And please, let me know if your organization’s tax-exempt status was revoked by the IRS and what difficulties your nonprofit has faced as a result at my personal email: christian@getnonprofitstatus.com. Reinstating exempt status may not be as difficult as you think.

Get started reinstating exempt status now!

“How do I pick a name for my non-profit?” – hardly a week goes by that I don’t get asked about non-profit organization names via email, phone call, or directly by friends. But while it’s important to select a good name for your charitable organization, it’s not something to get in the way of setting up a non-profit and achieving your mission.

(Click here to access our video on Non-Profit Organization Names)

Over the past 18 years, I’ve been involved in naming products and organizations, and brand-building in general. When I started my first “real” business (the kind with revenues),  certain enduring principles had emerged on how “winner” names are picked by “winner” companies and organizations.

But our world has become smaller, communication has sped up, and the competition for attention has increased exponentially. Solid principles of non-profit organization names and marketing are now even more essential.

THE #1 BEST PROCESS FOR SELECTING NON-PROFIT ORGANIZATION NAMES

Whether you’re setting up a non-profit or commercial venture – whether you want to be the next Red Cross or impact a few local neighborhoods – the challenges and principles of names for organizations are the same.

Keep this process simple and work through it. While non-profit organization names are important, naming is not nearly as crucial as getting your mission underway.

You’re setting up a non-profit because you want to give back to the world. The best way to honor the people you need to reach is to invest thought in your group’s name. You can do that by using my “Four Principles of Non-Profit Organization Names” under Step 2 below.

4 Steps to Selecting Non-Profit Organization Names

STEP 1: Generating names. I call this a “brain dump.” Just get a pen and legal pad (or open a Word Doc, but I still like a pad because you can carry it around and jot down ideas) and start writing. Don’t limit yourself! There are no good or bad ideas, just write as many different non-profit organization names as you can.

STEP 2: Refine your list. Whittle down the big list using my “Four Principles of Non-Profit Organization Names”:

• Principle 1: Simple and easy to remember – but avoid “cute.” You want to be taken seriously as an organization.
• Principle 2: Say & Spell. The name should be easy to say & spell.
• Principle 3: Illustrate the organization’s mission or function – that’s why I love “Big Brothers and Big Sisters” and “Adopt a Platoon” as non-profit organization names.
• Principle 4: Evoke hope or another positive core human motivating value.
• Principle 5: Avoid potential cultural or other less-than-obvious negative connotations, including potential acronyms. How will your non-profit organization name be shortened by reporters? How does it translate?

Once you apply those principles, you should have a nice short list of possible non-profit organization names to move on to STEP 3.

STEP 3: Focus Grouping – Make a list of friends, family, and local business people or other trusted folks in the community to contact. As you slowly read your list of non-profit organization names, ask them to tell you the first thing that comes to mind.

STEP 4: Search & Determine Availability – Three ways you should search:

• Google Search

• A name availability search for your state

• A relevant domain name for your website

(The last two can be done through our Non-Profit Organization Names Search resource page at GNPS.com: CLICK HERE)

Once you’re done with these, you’re ready to make a solid for-profit or non-profit organization name selection and move on confidently through the rest of the process of setting up a non-profit.

If you’re following “Create Your Non-Profit in 5 Days or Less,” here are the Next Steps:

Day 1 – We covered Naming an Organization right here [Video Link]

Day 2 – Covers Filing your Entity [Video Link]

Day 3 – Recruiting Your “Beginning Board” of Directors [Video Link]

Day 4 – EIN and Getting Your Bank Account [Video Link]

Day 5 – Developing Your “Elevator Pitch” [Video Link]

Thanks for visiting. If you enjoyed this post on Non-Profit Organization Names, please go down below and hit the “Like” button, leave a comment or ask a question – and tell your friends!

The idea of starting up your own non-profit is overwhelming, but when raising money – or even online fundraising –  comes up it can make even the most passionate charity founder assume the  fetal position. Traditionally, forming a non-profit has always been like starting up a for-profit enterprise, where one must find investors (donors), partners, office space – the whole enchilada.

But today, while many things are fundamentally the same, there are huge opportunities to embrace the future and use technology to make up for lack of size and experience. Case in point: online fundraising.

First, online fundraising is a great alternative for people who might be intimidated by the idea of to meet a complete stranger face-to-face and asking for money (I used to feel the same way, but now it’s my favorite thing to do!). Not only does online fundraising reduce the need for face-to-face interaction, but it makes your funding operations scalable without requiring extra employees.

How? Let me explain.

Once you test an online fundraising method that works and is cost-effective, whether it’s a rented email list, SEO (search engine optimization) strategy, or online advertising it’s easy to ramp up by increasing the number of people you are exposed to. In fact, it may become more cost-effective to go larger-scale with your online fundraising program because you are buying in bulk and learning how to use tools like banner retargeting to get a lot of impressions with your ad.

If some of this is over your head, relax, I’ll be teaching a lot more about online fundraising in the near future via blog posts and online video training.

(And don’t forget to sign up for my no-cost video training program on everything from filing your 1023 Application to fundraising by downloading my $27 ebook – free to you – just clickon the upper-right hand side of this screen to learn more about getting and maintaining your non-profit status.)

Next, online fundraising allows you to reach all sorts of people – you aren’t confined to your local neighborhood or even your metropolitan area. You’re confined to…what, exactly? People with internet connections? That’s no small pool of prospects!

Setting up a web site to receive donations or to sell products for online fundraising efforts can be a great way to raise funds more quickly than you ever anticipated – particularly if any part of your Web site goes “viral” and attracts a lot of visitors.

Another advantage of online fundraising is it’s highly automated. You can set up a “donate to us” button that collects donations 24 hours a day, seven days a week. No need to hire an office receptionist to answer phone calls. You can send out newsletters to your subscribers with the click of a button rather than printing out a monthly magazine.

Reducing your overhead is the greatest part about online fundraising. For a pittance in hosting fees every month, there’s a lot you can do online. Even if you’re not sure how to handle a web site yourself, web designers and programmers are relatively inexpensive and can be found at sites like Elance.com or oDesk.com.

Stay tuned to our blog and you’ll get a lot of high-value – and more importantly, FREE info on building a world-class non-profit organization, including: outsourcing your overwhelming tasks for less than you imagined, using social media (for both mission-oriented and online fundraising purposes), building a great website, one-to-one high-dollar donor development, and much, much more.

Starting up a non-profit can be challenging at times, but there are few obstacles in the road to online fundraising that you won’t be able to handle, if you just hang around. If you want to learn more, be sure to sign up to our free report in the upper-right section of your screen, and make sure you get on our email list. From there we’ll cover online fundraising and a lot more!

Stay tuned for more Online Fundraising training and information that will help you succeed in your 501(c)(3)!

Some disaster donations don’t help!

Reposted from goodintents.org given the recent earthquakes and tsunami. Goodintents is run by nonprofit consultant Saundra Schimmelpfennig
—–
The following is a series of dos and don’ts to help you make the best disaster donations decisions.

Do determine if the country is accepting international assistance.

With all the photos and videos of destruction on the evening news, it may seem impossible that governments would not want outside assistance via disaster donations. However, just because there has been a disaster does not mean that the local government and local aid organizations are not capable of reaching and helping those in need. Before sending your disaster donations, find out what specific assistance the government is allowing. Check to see if the aid organization you’re considering donating to is offering that.

Do look at a variety of nonprofits before making disaster donations.

Hundreds of organizations respond to most disasters. Take the time to evaluate a few before making disaster donations. Just because they have name recognition does not mean they’re best able to respond. Look for organizations that were operating in the country before the disaster – able to respond quicker, they will also know the local culture, politics, and needs better. Giving to local organizations is great. Unfortunately they can be difficult to find and may not have a website (or it may not be in English).
Places to find lists of organizations involved in the recovery efforts include:
InterAction for many U.S. organizations
Reliefweb.int for organizations from many different countries
Dochas for Irish aid organizations

Do look for organizations with prior experience and expertise.

There is a great deal of money after well publicized disasters. The ease of raising money makes it tempting for organizations without prior experience in that area to respond. After the 2004 tsunami, many organizations built boats or houses. I attended one handover ceremony where the boats actually sank during the ceremony because they weren’t properly sealed. There is a steep learning curve when nonprofits move out of their normal area of work, which may lead to mistakes and wasted money. Make sure the organization has prior experience in proposed projects before making disaster donations.

Don’t donate to a project just because it’s “sexy.”

Recovery projects that are inherently attractive to donors – such as orphanages or boats – are easier to fund but may not be what is most needed. After the 2004 tsunami orphanages were built in excess of what was really needed, I had an orphanage approach me looking for orphans to house. So many disaster donations were given to Indonesian orphanages that some families resorted to abandoning their children at the orphanages because they could not feed and clothe them. It would have been far better if  disaster donations had supported families so they could care for their children. Boats were also heavily funded, leading to far more boats being built than were lost and a concern for over-fishing.

Don’t earmark disaster donations.

The organization on the ground has a far better idea of what is needed than someone half the world away. Earmarking funds may force the organization to spend disaster donations where they’re not needed and keep it from funding the projects that are needed. After the tsunami in Thailand, an organization had disaster donations earmarked for two truckloads of rice. By the time they arrived four months after the tsunami, rice shipments were no longer needed. Because funds had been earmarked, they had to contact donors for permission to use disaster donations in different ways. If you trust the organization, allow them to make the decisions on how to use your disaster donations. If you don’t trust them, find another organization to donate to.

Don’t evaluate an organization based administration cost.

The amount an organization spends on administration is no indication of its quality. The pressure to keep administration costs low may lead to organizations understaffing projects or hiring unqualified staff without skills to do their job. They may equip their staff with the tools and resources needed to do their job well. Or they may focus use of disaster donations on inherently cheaper programs even if they are not needed. Additionally, project costs and administration costs are easy to manipulate.

Do ensure that the agency is legitimate before giving.

After the 2004 tsunami several fake charities were created. In Thailand a man took photos of houses under construction and posted them on his own website, saying it was his organization’s work. Verify that the nonprofit is real before giving disaster donations. Google the exact name – be careful that they haven’t used a name that is almost identical to a well known charity. If the organization has been in operation for a while there should be a history on the web, including links to conferences their staff have attended, newspaper articles about them, or meeting minutes.
Donate only through the organization’s website to ensure you aren’t giving disaster donations to someone sending out a sham email or creating a fake facebook page.

Don’t expect the funds to be spent immediately.

The initial relief phase encompasses search and rescue, immediate medical care, food, water and shelter. After that, the much longer recovery and reconstruction phase begins. Organizations that feel pressure from donors to complete their work quickly may try to speed their work by cutting corners, leaving aid recipients out of the decision-making process, avoiding coordinating with other organizations, or ending projects before they’re able to survive on their own. In Thailand there were numerous instances of houses being built before the land title was cleared requiring litigation. Some families faced losing their houses a few years later. Allow organizations adequate time to ensure they are providing help in the best way possible.

Do consider holding off some disaster donations until later in the rebuilding process.

Immediately after a disaster is prime fundraising time for nonprofits. Appeals for disaster donations are issued before they have a clear idea what is needed or how much they can help. If an organization receives more disaster donations than it can use for the type of help it provides, it has one of four options. 1) It can divert the excess disaster donations to other programs in other countries; 2) It can provide assistance in excess of what is actually needed; 3) It can move out of its area of expertise and do projects it’s not skilled at; 4) It can subcontract other agencies to work in other areas. Rebuilding after a disaster takes years, waiting a few weeks or months before donating everything you plan to give will allow you to make additional funding decisions once the situation on the ground is clearer.

Don’t take up a collection of goods to send over.

After the tsunami tons of used clothing were donated, much of it inappropriate to the climate and culture. There were winter hats, coats and gloves donated to southern Thailand and mountains of donated clothing dumped beside the road in India. Donated goods can clog ports and prevent more critical relief items from getting through. Ports can only hold and process so many goods and often the port authorities have difficulty sorting through everything arriving to get it processed and out the doors. Please do not take up collections of medicine, clothing, baby formula, or food for shipment, or show up on your own to hand out money or goods. Although well intentioned, this can actually make the situation worse as it adds to the confusion, diverts resources, and may lead to aid dependency.

Don’t go over individually to volunteer.

Many people want to volunteer in the recovery efforts, however unless you have a specific skill and speak the language, there is often very little the individual can contribute that local people could not do. Local people need the work as many of them lose their livelihoods in the disaster. Even if you have a specialized trade such as a doctor or an architect, your credentials may not be recognized in that country. You will likely not find an international charity able to take you on because of liability issues and the fact that you don’t have prior disaster experience and training. Small local organizations may be willing to use volunteers, but their needs are for website developers, grant writers, and other office jobs. Your chances of working in the villages are small unless you speak the language and understand the culture.

Do consider giving an equal amount for disaster preparedness programs and disaster donations.

Programs that help communities prepare for and respond to disasters save more lives and are more cost effective than large rescue operations after the disaster. This becomes even more important with the increasing rate of natural disasters. After each disaster the first people to respond are neighbors, friends, family, and local disaster response teams. Consider donating to organizations in other countries – or even your own home town – that help communities prepare for and respond to future disasters.

Don’t support any adoptions or evacuations of orphans.

After each disaster there are attempts to adopt or evacuate orphans. However, many of these “orphans” have parents or other living relatives desperate to care for them. Priority should be placed on efforts to reunite children with relatives. Evacuating the orphans from the country or putting them up for adoption may forever separate them from their family.

Don’t assume there is a body overseeing and regulating the aid.

Most people assume that some entity, probably the UN, oversees international aid to ensure that it’s well done and getting where it is most needed. In reality the UN has no direct control over nonprofits, which makes it difficult to coordinate the relief efforts and ensure all the aid provided is well done. Two attempts to create a regulatory body, once under the UN and once under the League of Nations, that proceeded the UN, have failed. Without this, it is up to the government hit by the disaster to monitor and control the  flood of assistance into their country. This can be impossible for many local governments. The best way to stop ineffectual or bad aid is to only make disaster donations to organizations proven to be competent and skilled at their work.

Do take the time to make informed decisions about disaster donations.

Take time to understand the situation and make educated decisions. There are many resources here to help you do that. Your decision as to which nonprofits receive your disaster donations matters.