Tag Archives: funds

Nonprofits & NGOs: you MUST give people a way to donate online

fundhuntingThe following quote is from a blog in 2013 by Sue Gardner (hi, Sue!!) of the Wikimedia Foundation, which administers Wikipedia. The quote is about how the many-small-donors-instead-of-a-few-big-ones works so well for Wikimedia, a nonprofit:

We don’t give board seats in exchange for cash… people who donated lots of money have no more influence than people who donate small amounts — and, importantly, no more influence than Wikipedia editors… We at the WMF get to focus on our core work of supporting and developing Wikipedia, and when donors talk with us we want to hear what they say, because they are Wikipedia readers. (That matters. I remember in the early days spending time with major donor prospects who didn’t actually use Wikipedia, and their opinions were, unsurprisingly, not very helpful.)

It’s not only that they have many, many donors of small amounts, rather than a few donors that give huge amounts of money, it’s also that their donors are users of their initiatives, primarily Wikipedia – in fact, many are volunteers for these initiatives.

This isn’t a new model. I worked in professional, nonprofit theater for many years, and this was their model as well; each theater had hundreds, even thousands, of donors that gave, for the most part, small amounts, and the vast majority of those donors were also performance ticket buyers. I learned that a healthy nonprofit theater has at least half of its expenses covered by such individual donors.

Of course, the many-small-donors models wouldn’t work for every nonprofit. But if your nonprofit had at least 100 clients, volunteers and/or event attendees in a year, you MUST have a way for those people to donate via your web site. There is absolutely no excuse for NOT having this way of giving, and no excuse for NOT encouraging such donations.

How about this: at least once a year, I have been ready to donate to a particular nonprofit, I’ve gone to the web site to do so, and, ta da: no way to donate online; the only way to donate is by sending a check or money order. And so, I end up not donating at all.

This happened to me last month regarding a nonprofit right here in Forest Grove, Oregon, where I live. I was going to say something to the nonprofit, but instead, decided to turn my thoughts into a blog for small nonprofits in particular. I hope they notice. I don’t have lots of money: when I donate, I’m giving up the price of a movie ticket and popcorn. Most nonprofits would claim that they would not say no to any amount of cash someone wanted to donate, including that small amount. Yet, that’s just what they do when they don’t have a way for people to donate online.

According to Blackbaud’s 2015 Charitable Giving Report, 93% of funds given to nonprofit organizations came from traditional means in 2015 – major gifts, annual funds, fundraising events, checks, snail mail and by phone. Only 7.1% of donations to nonprofits came in online. HOWEVER, online giving has been steadily growing over the last few years, up 9.2% from 2014 to 2015, and 14% of online giving in 2015 originated on a mobile device. I’ve no doubt the numbers are just going to keep going up. A good summary of the Blackbaud report is here. In addition, a study of younger supporters (age 20-35) found that 56% preferred donating online via an organization’s website.

The excuse I hear by most nonprofits for not having a way for someone to donate online?

We don’t want to have to lose some of the donation to processing fees. 

Let me be clear: you are losing ALL of the online donation by not having a way for people to donate this way to your organization. Those people that go to your web site and can’t find a way to donate online don’t say, “Oh, I’ll write a check then.” Nope – they just don’t give at all.

As of the time of this blog’s writing, Paypal charges 2.2% + $0.30 per transaction on any donation ($0 to $100,000) to a registered nonprofit with 501(c)(3) status. Wouldn’t you rather get most of a donation than none of it?

There’s no service that doesn’t have some kind of processing fee for donations to nonprofits, at least not in the USA. Some services, like Paypal or Google Wallet, just charge a transaction on every donation, but don’t provide any features, like a customized web page. Services like First Giving charge more, but also provide more services, like tracking and managing donor information and easily integrating into whatever donor database you are already using. Which should you use? That depends on the size of your nonprofit’s budget, how many donors you are expecting to donate online and how much information you need from those donors. Have a look at what other nonprofits in your community are doing in terms of allowing for online donations, and don’t hesitate to pick up the phone and give them a call and ask for advice (we need nonprofits collaborating together MORE!). Also, talk to your financial institution, the bank or credit union where you deposit your organization’s funds – they may have options as well.

And if you are looking for a magical third party crowdfunding site that will bring in lots of donations for your organization merely by your inputting all of your information and asking for money, forget it – that’s not how successful online fundraising works for 99% of nonprofits. Rare is the donor who goes to a third party web site with no idea of who he or she is going to give money to.  Most nonprofits that raise money through online means are raising that money through their own web sites, and raise that money from people in their communities that are familiar with their work and want to support them, from people that have attended the organization’s events, or from people that have seen an ad on TV or radio.

More: 

Excellent advice from someone else on how to encourage donations online to your organization

More advice for what should be on your organization’s web site

Also see Survival Strategies for Nonprofits

tips for fund-raising for NGOs serving the developing world

fundhuntingSome of the most frequently asked questions (FAQs) to online forums for non-governmental organizations (NGOs) in developing countries, no matter what the subject of the forum is supposed to be (urban disasters, HIV/AIDS, maternal health, water and sanitation) , are regarding funding.

In 2004, frustrated at seeing fundraising questions from NGOs over and over and over again, and no INGOs nor UN agencies trying to answer them, I drafted a short list of basic tips for fund-raising for NGOs serving the developing world. I was an online volunteer with the Aid Workers Network then (the organization is long gone, unfortunately). Several other AWN volunteers revised the draft, and we finalized and published a version online for the AWN community. But I kept updating the document, and it grew from 15 pages to 30.

I have no idea how many people accessed the document. I tried to track it through various means, but was never successful.

I have updated the document for the first time since 2011, and instead of asking people to write me for it, so I could get an idea of how many people accessed it, I now have it ready for download from my web site. It’s now 29 pages.

But the big news is that I’ve updated it for the last time. I’m not updating it anymore.

Most of the information is timeless; the web sites in the document will change over time, the organizations cited will come and go, but the basic advice will always be valid, I hope. Also, there are so many more resources now to help NGOs with fundraising than there were 10 years ago, as any search on Google will show – this document isn’t filling an information gap like it was when it was first drafted and published.

Some things that have been surprising in the decade I’ve maintained this document, some of which are also reasons I will no longer be updating this document:

  • I have regularly gotten funding solicitations via email from NGOs in the developing world because they’ve done exactly what this document says NOT to do: they’ve found my name in association with fundraising and sent me a grant proposal, unsolicited, despite the obvious fact that I am NOT a foundation. The emails aren’t even addressed to me by name; they are often addressed to “sir”, or they have 10 other emails listed in the “to” bar.
  • I make it clear that this document is for NGOs serving the developing world, yet I frequently get requests for it from nonprofits in the USA. Sure, some of the advice is universal for mission-based organizations, but the document talks about funding sources that are available only to organizations working in, say, Africa or the poorest parts of Asia and South America, sources that are NOT available to organizations in North America.
  • Several people and organizations have posted the document to their web sites without my permission, despite me asking on my web site and in the document for this not to be done. When I’ve written to ask them to remove it – they often are posting an old version, not the latest – they say they had no idea I wouldn’t allow the document to be posted. Which means they didn’t bother to read even the first two pages, or, they just don’t care.
  • Several people and organizations have passed this document off as their own. That hurts most of all. All I’ve asked in return for this document is credit for it – I have never asked for payment. For someone to go through it and take my name off of it and then publish it as their own, including people from at least two NGOs – it’s shameful. It’s disheartening. It contributes to a negative image of NGOs working in and for the developing world.
  • I’ve never received follow up from anyone saying how they have used the document. Has it been helpful? Did it result in funding? I’ll never know.

I sound bitter. Sorry. I’m frustrated that a decade-long effort didn’t seem to do any good. If this document does make a difference for your NGO, I hope you will tell me.

Also see:

Survival Strategies for Nonprofits , a guide for nonprofits facing critical budget shortfalls.

Survival Strategies for Nonprofits

I’ve seen two blogs in the last two weeks regarding survival strategies for nonprofit organizations (NPOs), non-governmental organizations, (NGOs), community based organizations (CBOs), charities, etc., per the current dire economic climate.

I was unimpressed with both of them. They were all big picture ideas that lacked specifics (Refine your mission! or Merge with another organization!). Mission-based organizations are looking for ideas to do next week, to save or make money now.

These blogs also talked about volunteers only in terms of saving money – get volunteers to do those things that, in better economic times, you would pay someone to do.

So I came up with my own ideas, based on what I’ve experienced or observed at other organizations, to help a mission-based organization survive these tough economic times:

  • Make sure your web site and all of your social media activities emphasize what your organization is accomplishing, in detail, rather than your desperate need for funds. If someone looks at your web site, it should exude impact and results, not desperation. People and organizations are cutting back on donations, but they are NOT eliminating giving altogether; they want to give where they know their money will make a real difference. If your web site & social media activities aren’t emphasizing results and opportunities, and isn’t showing exactly what donations pay for, you are regularly missing out on donations.
  • Are you charging for activities and services as you should? For instance:
    • Organizing an activity for a group of volunteers from the local branch of a national bank requires a huge amount of time and resources on your part, often to create an activity that your own employees could do more efficiently or an activity that’s actually not critical to the organization – the activity is to give the group a feel-good experience, but it’s at your expense. Are you charging the corporation a fee, even a small amount, to cover some or all of these costs? Be ready to show a detailed lists of what the costs are for your organization to create this group volunteering activity.
    • Corporations frequently ask nonprofits to collaborate on a project, to advise the company on an activity, such as the development of new software or the launching of an event. For anything that is going to require staff to spend more than an hour on a corporation’s project, ask the corporation to cover the staff person’s time. Consider this: if you wanted the company to do a project for your organization, they would most probably charge you for that service – so why not ask them for the same consideration?
    • What about training for volunteers – what are the exact costs of this, and should you be asking volunteers to pay for some of these costs, even a small amount? Would a corporation be willing to give you a donation in return for saying that they “sponsor” all volunteer training?
  • Does your organization have a service or activity it could sell, for a fee? For instance,
    • If you are a women’s shelter that involves volunteers as counselors to victims of domestic violence, could you market the training you provide to these volunteers to local businesses, corporations and large government offices, as professional development for their employees? Those organizations could pay to have your trainer come onsite to their companies and train their staff regarding recognizing domestic violence, how to make referrals if they see an employee in need, etc.
    • If you are an animal shelter, would area dog trainers be willing to come onsite for a seminar on pet safety or pet training, providing their one-day training for free, with the seminar fee going to your shelter, and the trainers being allowed to pass out advertising about their training to attendees?
    • Do you charge even a nominal fee to those that want to use your company lunch room or common room bulletin board to advertise local services? (restaurants, pet boarding, printing, apartment finders, etc.).
    • Do you have a large space you could rent to other organizations and companies for events, meetings or storage?
  • Ask employees and volunteers for ways to cut expenses in the coming weeks and the coming months. Have them look at their individual program and department budgets and come back to you with ideas of ways to eliminate expenses. Let them submit ideas on-the-record and anonymously. Open ideas up to discussion (on a private online discussion group, for instance, or over lunch – and, of course, staff should provide their own lunches). You might be surprised at just how much money could be saved per the ideas of your own employees and volunteers.
  • Give each department or program a required target for expense reduction. 10%? 20%?
  • Do the written job descriptions for every employee and high-responsibility, long-term volunteer role at your organization reflect reality? Have every employee and high-responsibility, long-term volunteer review his or her job description and edit it to reflect what they are actually doing, to note what they can’t do but feel is still essential, and to note what they aren’t doing, and don’t feel they should be doing, but that’s still listed in the description. Are some staff duplicating each others’ efforts? Should some roles be combined (and, therefore, some positions eliminated or cut back)?
  • Could your organization afford unpaid furloughs for employees? Many employees would welcome unpaid days off to lengthen their holiday time off or their paid vacations. Ask employees for their feedback about the consequences to your clients and programs if they took an unpaid week off — or two weeks off — in summer, for instance.
  • Look at your printing costs. How much of what you are producing in print form could be offered online, with anyone who wants such printing it themselves (and paying for that printing themselves, either from home, from their work, from a public library or from a copy center?)? How much of what you print is actually being read – and should you reduce the size of your printed publications? Is your printed annual report really necessary this year? Do any of your volunteers, including board members, or family members of your employees work at large companies or institutions that might be willing to donate their onsite printing equipment to produce your program brochure? Do you charge the public or donors for any printed report that is more than 10 pages?
  • Be specific on your web site about your organization’s costs. How much do you spend each month on electricity, for instance? Post the cost to your web site and note that you are looking for an Electric Angel – someone willing to sponsor your electricity bill for next month, which will allow you to do whatever it is you do to add value to your community or the planet. Before doing so, make sure your utility use is efficient – is the office thermostat set to a energy-efficient setting?
  • Put a temporary moratorium on furniture purchases of any kind. Post your furniture needs to your own web site and to a freecycle online group for your area. Use your social media to discuss such as well.
  • It may be in the best interest of your organization to scale back, postpone, or even eliminate a service, program or activity. A nonprofit theater may need to scale back its season by one show. Another organization may have to eliminate or scale back an annual onsite event. This may be your opportunity to become even more focused on your mission. Look at how much every program or activity costs, in detail, and think about way to reduce those costs, or evaluate the consequences of scaling back, postponing or eliminating that program or activity in relation to your organization’s mission.
  • If you are thinking of involving more volunteers, don’t think of it as a temporary solution; think of it as a permanent re-alignment of your organization. If you decide that you are going to reserve certain roles for volunteers – for instance, all pro bono consultancies that will support staff, all front desk/phone staff, all bloggers, all conference support staff, etc., make it a permanent change that will last even when the economy gets better. Volunteers aren’t free. In fact, this realignment regarding volunteer involvement will cost money – perhaps more money than you are probably spending now to support and involve volunteers (they will need to be screened, trained more than once, supervised and supported!), but perhaps the savings from elsewhere can pay for this.
  • Be explicit to board members and the press about any cut that is going to affect the scope or even the quality of your organization’s service. It may sound great to an outsider for your organization to eliminate paid positions, while you know that the consequences to clients, the community or the environment will be devastating – think about how you will make those potential consequences crystal clear and very public. That can affect the thinking of an annual large donor that’s considering scaling back on their donations to your organization soon.
  • Get the press, government leaders and corporate leaders onto your location and viewing your work. I don’t mean fundraising events – I mean you need to invite them all to observe program activities, to attend a volunteer training, or to view for themselves your organization in action. The press wants something visually-appealing: people moving or laughing, or people being very expressive. Government leaders and corporations want to see something that is representative of your organization’s impact. Make these invitations in a friendly, no-pressure way, and do NOT ask for donations in the invite nor during the site visit. All you are doing is building connections and interest, so that when the time does come to ask for a donation, you have a relationship with the potential funder, and the organization understands your organization’s work.

You should have detailed information about your current expenses and a tracking system that allows you to see – and share – exactly how much money you are saving each month and each quarter over the coming year. In sharing that information, tout not only how lean and efficient your organization is; also note what the consequences are of these cuts to clients and the community. When announcing cuts, you don’t want to give the impression that your organization had been wasteful or frivolous in its spending previously – and with these cuts, now it’s not. You also don’t want to send the message that your organization can cut and save its way out of its financial challenges.

If you do end up cutting back or eliminating a program – and cutting employee positions – be as generous as possible with departing staff. You are saving your organization from financial hardship but putting employees into financial hardship:

  • Contact a temp agency or any employment agencies in your city and ask to arrange immediate onsite interviews for staff you are laying off, so that when you lay off an employee, you can hand that person a card and say, “This person is waiting for your call after our meeting to set up an informational interview, review your résumé and talk about employment openings and temp opportunities.” If there are no temp agencies in your geographic area, talk to your board members and see if they work at companies that have highly-skilled HR people, and if the company would be willing to donate this person’s time to do at least two job-coaching sessions with departing staff, regarding preparing résumés and LinkedIn profiles, the best online job boards to use and using social media for job searches.
  • Write each person a letter of recommendation and write a recommendation on his or her LinkedIn profile.
  • Give laid off employees at least three weeks salary and payment for all unused vacation (and remember that they will be out-of-work for MUCH longer than that, in all likelihood).

What are your ideas for saving money ASAP for nonprofits, NGOs and charities, so that they can survive the ongoing financial crisis? Be specific.

Basic Fund-Raising for Small NGOs/Civil Society in the Developing World

Some of the most frequently asked questions (FAQs) to online forums for community-based organizations (CBOs) in developing countries, whatever the subject, are regarding funding.

In addition, the first impulse of many small non-governmental organizations (NGOs) seeking funding is to request the contact information for possible funders, and once they find the name of any company they think gives grants to NGOs, these NGOs often write immediately to the company with a desperate please for funds. This approach often harms the NGO, rather than garnering any support at all. Not only do these please rarely attract funding, they can turn funding sources against the NGO altogether.

After seeing these questions and messages again and again over several years (I’ve been on the Internet since about 1994) I drafted a list of basic tips for fund-raising for small NGOs – it was 15 pages long. Now, years later, it has evolved into 31 pages. It is a PDF file.

The document is meant to provide very basic guidelines for small NGOs in the developing world regarding fund-raising and adhering to the basic principles of good governance, and to point to other resources. By small NGOs, I mean organizations that may have only one paid staff member, or are run entirely by volunteers; and may or may not have official recognition by the government. These organizations are extremely limited in their resources, and are often in unstable environments and/or serving profoundly poor populations. Certainly medium-sized NGOs could use it as well – organizations that may have two or three paid staff members.

Please note that this document is NOT written for nonprofits serving the “developed” world — organizations serving communities in North America, Western Europe, Australia, New Zealand or Japan would probably not find this document particularly helpful, as it has been prepared to make recommendations relevant for nonprofits serving in a developing country.

This document is also not for organizations that send volunteers into developing countries to work. This document will not help you fund the trips of such volunteers. If you are such a volunteer-sending organization, see funding your volunteering trip abroad and fund raising for a cause or organization for more helpful information.

THIS DOCUMENT IS NOT A LIST OF FUNDERS/DONORS.

Let me repeat that: THIS DOCUMENT IS NOT A LIST OF FUNDERS/DONORS.

It is, instead, a set of guidelines on how to prepare an organization in a developing country to be attractive to donors, how to search for potential donors and how to approach such potential donors.

The document includes:

  • A list of activities an NGO should NEVER do regarding fund-raising
    (& how I know if an NGO has actually read this document!)
  • How to network among various sectors in your country and establish credibility to insure fund-raising success
  • The absolute essential preparations to solicit donations, both locally and from international NGOs working in your geographic area
  • Establishing credibility and a reputation of integrity, transparency and accountability
  • How to find donors that would be interested in your NGO and how to make contact with them
  • A warning about fund-raising scams
  • Online resources for detailed tips on writing funding proposals
  • Suggestions regarding volunteers in other countries fund-raising on your NGO’s behalf (new chapter added October 2011)
  • Online resources for further information

Once you have received this document, please do NOT distribute the document via a web site or on an online discussion group without my written permission. I frequently update the document, and want to ensure people are getting the most recent version.

Here is the web page for more regarding: Basic Fund-Raising for Small NGOs/Civil Societ in the Developing World, including how to access the document.