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Nonprofit

Highlights of the 2018 Nonprofit Leadership Impact Study

By | Nonprofit | No Comments

Did you know there are over 1.8 million nonprofits in the United States? How do nonprofits move from startup to leaders? What characteristics do successful nonprofit leaders exhibit and how do they manage with excellence?

The 2018 Nonprofit Leadership Impact Study authored by Nhu Te seeks to answer these questions and more. We think the study bears reading and have included a link to it so that you can read the full report. Here are the highlights.

Nonprofits Aren’t Focused Enough on Donor Loyalty

Most nonprofits spend considerable time, energy, and resources on cultivating new donors. However, it is a truism in marketing that it costs more for acquisition marketing than retention marketing. Increasing donor loyalty is one way to reduce marketing costs while increasing donations into the organization.

According to the report, 45% of the study’s respondents cited “donor acquisition” as an area of concern, while 31% cited “donor retention.” Those two areas go hand-in-hand. Improving retention offsets much of the worry over acquisition since funds continue into the organization with less effort. It’s all about communication and nurturing relationships, rather than leads, for new donors.

Events Are Popular for Fundraising – But Not Necessarily Profitable

What would a nonprofit be without the annual charity dinner, the church carnival, the library book sale? These and other nonprofit fundraising events are quite popular, but are they profitable?

The survey data doesn’t support the assertion that events are as profitable as many nonprofit leaders think. While 86% of the respondents use events as fundraising opportunities, other fundraising activities such as mobile fundraising outstripped events in their ability to raise money. The bottom line? Events may be popular, but they don’t raise quite as much money as nonprofit leaders think they do.

Nonprofits Lack In-Depth Strategic Plans

Plans? Who needs strategic fundraising plans? You do if you’re running a nonprofit. The report found that 74% of nonprofits do not have a strategic fundraising plan. Remember, “Those who fail to plan, plan to fail!” Time to work on your strategic fundraising plan.

Nonprofits Need to Be More Selective When Choosing Their Boards

Serving on a nonprofit board of directors carries a great deal of responsibility. Among their many responsibilities, fundraising should be an integral part of the total package. Yet 72% of nonprofits struggle with making sure that their board members are actively fundraising. They also struggle with keeping board members motivated to help with fundraising activities. Another 53% struggle with finding quality board members who are passionate about the nonprofit’s cause. 52% struggle with establishing clear roles and expectations for each board member.

Nonprofits Aren’t Utilizing Technology to Its Fullest Extent

This point from the study is one that we’ve seen many nonprofits struggle with – using technology. It’s not that nonprofits are averse to using technology. It’s that they are slow to adopt it, especially in the realm of fundraising.

For example, the study found that 80% of nonprofits are not utilizing mobile fundraising in their fundraising strategy. Another 63% of nonprofits estimate that their organization’s digital fundraising falls under 20% of their overall fundraising.

Putting It All Together: Fundraising Is Changing

If you step back and look at the big picture that emerges from the study, you’ll see a few macro trends. First, fundraising is changing. It’s no longer about events, but about using technology such as mobile fundraising and other tech-enabled tools to raise money. Events may continue to be an essential part of awareness and brand-building for your nonprofit, but events aren’t as profitable as everyone seems to think they are. If you continue to run events, keep a close eye on the profit/loss ratio for the event and ensure that you aren’t hosting events just because that’s what you’ve always done.

Technology can be used in so many ways to help with fundraising. From automating grant tracking to using email to keep donors engaged in your nonprofit’s mission and story, smart technology use can go a long way towards helping your nonprofit reach its fundraising goals.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

Five Super Fundraising Tips to Boost End of Year Giving

By | Fundraising, Nonprofit | No Comments

It’s “pumpkin spice everything” season and autumn leaves are falling in many parts of the country. As the pumpkins appear on doorsteps and leaves tumble from trees, you know that the end of the year – and possibly the end of your organization’s fiscal year – is right around the corner.

With that deadline looms the specter of fundraising goals. Will my organization achieve its goals for the year?

These five “super fundraising” tips can propel your organization’s donations into hyperdrive and help it achieve its annual fundraising goal. Each can be implemented on its own. Together, it forms a solid strategy for boosting donations and getting you one step closer to your annual financial goals.

  1. Participate in Giving Tuesday

Giving Tuesday (#givingtuesday) is the first Tuesday after Thanksgiving. Thanksgiving always takes place on the third Thursday of November in the United States. This annual event began in 2012 as a response to the growing commercialism and consumerism surrounding the Christmas season. It’s a day when nonprofit organizations see a significant surge in their donations. In 2017, approximately $274 million was donated as part of #givingtuesday with $45 million raised through Facebook alone. Begin a #givingtuesday campaign by revamping your donor page, adding plenty of social media posts with the hashtag #givingtuesday to your social media roster several weeks ahead of the event, and alerting your donor list that you are participating.

  1. Amazon Smile

Amazon is a retail giant with approximately 197 million shoppers visiting the site monthly. The Amazon Smile program lets those shoppers choose a participating nonprofit organization to which Amazon donates a portion of  that shopper’s sales. With the slogan, “Customers shop. Amazon gives,” the program offers an easy way for people to donate to your organization. Set it up at the link above and encourage donors and friends of your organization to choose your nonprofit as the recipient. Do this now so that all people who shop Amazon for Christmas presents can opt into Smile and contribute to the fundraising activities of your nonprofit.

  1. Update Your Nonprofit Profile

Your “About” page, website, and external pages such as social media profiles and others should all be supporting your fundraising goals. Make sure they are all in alignment around your messaging, branding, and images. Be sure to update your IRS profile too.

  1. Update your GuideStar profile

GuideStar offers potential donors a neutral third-party site that provides factual information on nonprofits. Many people, jaded by too many stories in the media of nonprofits spending money irresponsibly, prefer to research a nonprofit before donating. If your GuideStar profile isn’t up to date, it may be a deterrent for donations. Update your GuideStar profile as soon as possible and pencil it on your calendar for annual updates.

  1. Update Your Facebook Page

Love it or hate it, Facebook is a must-use platform for nonprofits looking to reach the largest potential audience. More than 1 billion people use Facebook, or fully 1 out of every 7 people in the world today. Almost nowhere else in the world can you reach so many potential donors and constituents. Be sure to update your Facebook profile and post often. Share pictures, stories, and inspirational ideas that support your nonprofit’s mission. A good rule of thumb is to make 80% of the posts informational and inspirational and 20% donation related.

We’re approaching the most wonderful time of the year when peace on earth and goodwill to all reigns worldwide. Now is the time to tidy up your nonprofit’s online presence and image so that you can help your organization achieve its mission, by maximizing donations.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

National Defense Authorization Act Raises Micro-Purchase and Simplified Acquisition Thresholds

By | Accounting, Government, Nonprofit | No Comments

If you work with tribes or are part of a tribal government, you should closely follow the changes made to the National Defense Authorization Act. On June 30, 2018, the NDAA issued changes that  increased the minimum thresholds for micro purchases and simplified acquisition.  These changes impact many individuals and groups, as well as impact tribal governments.

Raising the minimum threshold should ease some of the reporting burden on those receiving federal funds.

What Are the Exact Changes?

  • The threshold for micro-purchases is increased from $3,500 to $10,000
  • The threshold for simplified acquisitions is increased from $100,000 to $250,000

What Should You Do?

Groups currently receiving federal awards, including tribal governments, may wish to immediately revise internal procurement policies so that they can implement the new thresholds.

Memorandum M-18-18 also outlines changes for institutes of higher learning, nonprofit research organizations, and independent research organizations that wish to use a micro-purchase threshold higher than $10,000.

Specific Recommendations

There are some specific recommendations that can help you follow the new guidelines as stated in M-18-18.

  • Micro-purchase: You should include purchases when the aggregate dollar amount does not exceed $10,000. It may be helpful to distribute micro-purchases fairly among qualified suppliers if you can. You don’t need competitive quotes if management determines that the price is reasonable. Document a definition of how you define ‘reasonable’ prices so that you have something to reference to confirm your choices.
  • Small purchases: You can use simplified acquisitions for the purchase of property services that do not exceed an establish amount pursuant to 200.88 in the Uniform Guidance. This also includes purchases up to $250,000 according to M-18-18. Informal purchasing procedures are acceptable under the guidelines, but you should always obtain several price or rate quotes before making your choice. This is just good business practice that will also help you comply with the new requirements.
  • Sealed bids: Large projects, such as construction projects, commonly exceed $150,000. A formal RFP or bid solicitation process is required. The fixed price, lump sum, or unit price should be awarded to the best bidder who conforms to all the material terms and provides the best price.
  • Competitive bids and proposals: A formal bidding or solicitation process is required. Competitive bids and proposals covers purchases over $150,000. Fixed-price or cost-reimbursement contracts, as well as a formal bid process, should be used when sealed bids aren’t appropriate or warranted. Awarding the contract should be based on the quality of the program with price being one, not the only, factor.
  • Sole source: You can only use the sole source designation when specific criteria is met. The criteria includes:
    • The product or service is only available from a single source – no one else offers what you need
    • There is a public emergency, and the fastest or best way to handle the emergency is to buy from one source
    • Federal warding agency authorization, or the awarding agency specifically authorizes a non-competitive procurement. This is usually after a written request from the non-federal entity.
    • There’s not enough or inadequate competition after you’ve asked for bids from multiple sources.

Can you request an even higher threshold than these new amounts? Yes, but with a catch. You’ll need to request approval from your institution’s appropriate Federal agency for indirect cost amounts. They will then assign you to the appropriate office inside the agency who can approve the new amount and maintain records indicating compliance with the new amount. It’s also a good idea to keep records on your own to support any moves you make when it comes to micro-purchases.

The world of nonprofit accounting is always changing, and new thresholds and guidelines like these are important to understand and follow. Welter Consulting can help you if you have any questions about these guidelines or other nonprofit accounting and software needs.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

Charities Advisory Council Update

By | Nonprofit, Training | No Comments

Training, Professional Development Opportunities and More

The Washington State Charities Advisory Council was formed in 2007 to advise the Washington Secretary of State as to: 1) training and professional development programs needed for charitable programs; and 2) model policies related to governance and administration of charitable organizations in accordance with fiduciary principles. The Council also advises the Secretary on industry trends in the nonprofit world so that charities and nonprofits can prepare in advance for these trends. The Council’s latest updates are now available.

Members of the council appointed by Secretary Kim Wyman represent a broad and diverse range of nonprofit charities, both big and small, and  with a wide range of missions. The idea is to be as inclusive as possible so as to address all the needs and potential needs of charities for information pertaining to industry trends, training, and professional development.

Free Webinars for Nonprofits

Interested in continuing education? The Washington Secretary of State’s office provides free webinars to help nonprofits increase their knowledge in a range of areas. Upcoming topics include financial issues, legal compliance for nonprofits, and board development. The link to the upcoming webinars may be found here.

Tax Update

The Washington State Department of Taxation provided an update on guidelines for nonprofits. The state produces a valuable online publication which may be found on the Washington Taxation Department site. The guide is provided at no charge to the public and offers an overview of registration requirements, tax exemptions, reseller permits for fundraising events, and taxability of various nonprofit activities.

Renewing Nonprofit and Charities Registration

Washington state has successfully issued a soft launch of their new online registration system for nonprofits and charities to renew their status. The old postcard reminder system isn’t going away – yet. But nonprofits may wish to log into the system soon and learn the process. It’s probably going to be the way of the future for all Washington state charities. Log in with your UBI number to start the renewal process.

Tiered Financial Reporting

SOS Charities Program Liaison, Rebecca Sherrell, spoke at the meeting and provided a summary of the Revised Code of Washington (RCW 19.09.541). This code establishes a set of tiered financial reporting requirements for charitable organizations. The statute requires that charitable organizations with annual gross revenue over $1 million have a professionally prepared federal tax return and organizations over $3 million obtain an independent, third-party audit of their financial records. This audit report must be made available in paper form to the public upon request or accessible to the public on the internet. Nonprofits that receive most of their support from noncash donations. An organization receives less than $500,000 cash can waive the audit requirement.

Asking for Donations? Check out the Attorney General’s Site

The Washington State Attorney General’s office provides guidelines for charities and nonprofits that are requesting donations. To remain compliant with state law, it’s a smart move to review the guidelines and discuss them with your entire team, especially those in marketing and donor relations. The full guidelines are available on the AG’s site.

The next meeting of the State Charities board will take place in January 2019. This meeting has provided plenty of food for thought and interest to those in the Washington nonprofit world. Whether you’ve just started a nonprofit organization or you’re working for a mature organization, there is something to learn from the various people and groups who participated in this meeting.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.