Partnering is Just Good Business

I think we all recognize that larger organizations whether commercial ornonprofithave brand recognition. Sometimes the brand recognition is so strong the name of the brand has replaced the name of the product such as Kleenex® for a facial tissue or in many parts of the country Coke® means any carbonated beverage and not just cola-flavored. The larger more well-known charitable organizations also have ‘brand’ recognition perhaps the most famous being the color pink with breast cancer awareness; regardless of the specific fundraising entity pink ribbons, shoelaces, hats, shirts, etc. are immediately recognized for their alliance with breast cancer awareness.So as a business person why would I want to align with your nonprofit? To coin the old adage “what’s in it for me?”—a lot is whats in it for you. Connecting your business and brand with a nonprofit can have a major impact on your business, creating stronger loyalty with existing customers and reaching potential new ones.Consider increased community brand recognition. By aligning with a nonprofit that shares your values, your business will grow its recognition. As a local craft brewery, you can form a natural partnership with the Alex’s Lemonade Stands to Fight Childhood Cancer. Without any upfront investment, you offer a free pint of a specific brew for a $10 donation. The donor gets their ‘coupon’ and comes into your Brew Pub. There is a good chance on top of the one free pint; they’ll have another and maybe something to eat. Since people rarely drink or eat alone that person will also likely drink and eat. If you are really committed you have your staff offer the companion the opportunity to donate the $10 and get the same ‘free pint,’ and you have solidified your position as a caring and supportive member of your community. Right there you are growing your brand loyalty and recognition, connecting emotionally with your customers and very likely creating a brand advocate. Now that’s a true win-win, all for the cost of a draft pull.There are plenty of other opportunities for a small business to partner up with a local nonprofit; a health-food store with a diabetes program, a bicycle shop with a heart-health organization or a pet food store with the local animal shelter. There are many organic partnerships where the business and the nonprofit have a similar focus.There are also plenty of business that may not have a natural partner, but that doesn’t mean that you can’t work with a local non-profit – start by identifying a cause you care about and go from there. Or select a cause that impacts a member of your team or family.People are, by nature generally charitable, but they do spend much of their lives as consumers, making them more apt to respond favorably to fundraisers that are linked to specific rewards. Offering your customers rewards in conjunction with their donations demonstrates your appreciation of their willingness to support your cause with their hard-earned funds.A study byCone Communicationsrevealed that 85 percent of consumers view businesses that give to a charity more favorably. Take the time to do some market research to identify the most popular charitable causes in your area and approach them about forming a partner program. Some interesting statistics to consider:

54 percent of consumers bought a product associated with a cause during the last 12 months89 percent of Americans are likely to switch brands to one associated with a cause, given comparable price and quality91 percent of consumers are willing to purchase more products and services that support causes88 percent of consumers want to learn more about companies supporting social and environmental issues

Ready to get started connecting with consumers while making a difference in your community? Drop us anemail.

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Fiscal Sponsorship – An Alternative to Becoming a 501c3 Charity

Fiscal sponsorship is an alternative to the 501c3 for groups or individuals who want to solicit donations from their supporters. Many people are performing charitable activities in their communities but do not want to take on the expense, reporting requirements and legal obligations of becoming a Registered 501c3 Nonprofit Corporation. They just want to continue to make a difference. This eliminates the need for the expense and time necessary for the extensive filing requirements, tax compliance, and other legal obligations associated with incorporation and tax exemption.

Fiscal sponsorship typically involves an arrangement with an existing 501(c)(3) tax-exempt public charity (commonly referred to in this context as a “Sponsor”) that assists an individual or organization with a charitable program (commonly referred to as a “Project”) by permitting the Project to solicit tax-deductible contributions or grants through the Sponsor that the Project is not eligible to receive on its own. Through such an arrangement, funds intended for the Project are deposited with the Sponsor, which then disburses them to the Project.

When is Fiscal Sponsorship Appropriate?

Fiscal sponsorship works well when a charitable program is in its beginning stages and relatively small in scope. For example, a group of volunteers who collect toys for needy children during the holidays, using the garage of one of the volunteers as a storage and wrapping space. The second type of program that can benefit from this structure are groups with expertise in performing social services but do not have expertise in corporate, financial or tax matters. Additionally, they do not have the bandwidth or resources to add staff to conduct or manage these compliance activities. After a few years of operating with the support of a Sponsor, some groups are in a position to form a separate charitable entity and terminate the fiscal sponsorship relationship. However, fiscal sponsorship is not necessarily suitable only for new programs or new ideas. Many projects have existed for years and years under Sponsors, declining to incorporate and obtain separate tax-exemption after realizing the advantages of fiscal sponsorship.

What are Some Advantages of Fiscal Sponsorship?

1. Ability to Receive Tax-Deductible Donations.A donor that contributes to a Project through a Sponsor with 501(c)(3) status may normally deduct the contribution as a charitable contribution deduction.

2. Ability to Get Off the Ground Faster.Typically, a Sponsor permits a new project to test its new ideas more quickly than it otherwise could by providing administrative and capacity building support and permitting charitable fundraising without the delays associated with incorporating and filing for tax exemption.

3. Wider Base of Support.If the organization that acts as a Sponsor has a solid track record with foundations and other funders, this may benefit a “Project” of that organization. Projects that don’t already have pre-existing relationships with funders may be in a better position to secure some grants or charitable donations if they have a fiscal sponsorship relationship with a reputable charity.

4. Technical Support / Administrative Support.Many Sponsors may also provide Projects with additional support such as marketing, technology, insurance, payroll and accounting services, office space, publicity, capacity building or fundraising assistance. This support not only makes it possible for Projects to focus more time and energy on their missions and less on administrative matters, but, due to economies of scale, may also be provided at lower cost to a Project than the Project might have to pay if it incorporated on its own.

5. Potentially Lower Insurance Costs.Often, Sponsors will be able to obtain lower insurance rates than would be available to a small start-up nonprofit corporation, and these savings can be passed along to the Project.

If We Choose Fiscal Sponsorship Now, Could We Still Incorporate as a Nonprofit Later?

The decision to contract with a Sponsor does not have to be final. The agreement can be structured so that a project can terminate the fiscal sponsorship relationship at any time and for any reason as long as it gives the Sponsor a reasonable amount of notice. Some Projects never terminate the sponsorship relationship. Others, after a few years of operating under a Sponsor, are ready to form a separate charitable entity, obtain tax-exemption for that entity, and terminate the fiscal sponsorship relationship. A Project should pay close attention to the termination provisions of the fiscal sponsorship agreement to ensure that it has the right to terminate the agreement for any reason with a reasonable amount of notice to the Sponsor.

INTERESTED IN LEARNING MORE ABOUT BECOMING A REGISTERED 501c3? Please contact us atinfo@digitaldonations.org

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Thank your donors with a video

Am I Dreaming?

There was a nonprofit still kinda new, that had so many donors it didn’t know what to do. . .and then you WAKE UP!

I understand you are busy, busy, busy but you have to find time to thank your donors, or you are going to have find the time to get new ones. Let your donors know how important they are and you might be surprised by just how generous they can be!

Even if you have a huge and supportive list of donors, chances are you aren’t meeting your fundraising goals. Most nonprofits have at least a few challenges finding new donors and keeping their existing ones. The statistics are a bit scary; according to the Chronicle of Philanthropy for every 100 donors gained, 103 are lost! And worse, for every $100 in new gifts, only $5 was an actual increase. Taking two steps backward for every step forward is not a recipe for success.

How do you make first-time donors into loyal supporters of your organization?

To generate loyalty, you must first thank your donors, and the sooner, the better. In today’s digital world of immediate response; there is no excuse for a delayed thank you. In this case, we are talking about a sincere thank you, not a generic tax receipt with ‘thank you’ on it (though they need that too).

Take advantage of the digital world and use social media as a conduit to express your thanks. A great way to say thank you is with a video post on social media and your website.

It doesn’t have to be long or fancy, (90 seconds or less) a compilation of staff or volunteers saying “Thank You” and ending with a group picture to show your donors how much you appreciate them. Tell them how their gift is helping at the specific program level and the impact it helped provide.

You can significantly up the impact by having the beneficiaries of your donor’s gifts appear in the video. That can truly be an emotional connection for your

supporters. You may want to include a white board with some information about the use of their donations, again don’t go fancy – just the basic “because of your generosity we fed more than 5,000 meals to disenfranchised youth in our community”. Make sure to write big as most people will look at this on their cell phones.

As good as it can be, social media cannot replace personal communications. Of course, most organizations do a more personal thank you to their larger donors, but don’t forget the smaller ones completely. Dedicate a Saturday morning to having a volunteer (and Board Member) thank you call, calling as many donors as you have contact information for in three or four hours. A simple, personal thank you can go a long way towards getting your next gift. You never know who’s $10 gift today, can become $100 tomorrow and a $1000 the day after.

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Partner Rewards for All!

​Partnerships – especially successful ones – can make a real difference in your nonprofit’s fundraising results. Strategic partnerships with corporations have been successful over the years; “Ronald McDonald House”, Coca-Cola and the Olympics/Special Olympics and ChildFund with Tom’s Shoes. These alignments demonstrate not just philanthropic commitment but also do ‘good’ things for the brand. A recent study by Cone Communications revealed that 85 percent of consumers view businesses that give to a charity, especially one that they already support, more favorably.

So how does your nonprofit get a partnership going? Well, of course, you can try to get aligned with one of these large corporations, but that can take much work before, during and after. Moreover, you’re competing with lots of other organizations.

An alternative and much more do-able option is to form a partnership with a local business. Every community has retailers, restaurants, service providers and other local businesses that would benefit from a nonprofit partnership. There is very little if any up-front investment on the part of the business. And when the donor does utilize the reward, he/she can be a potential new client. Existing clients as per the Cone Communications study are very likely to become even more loyal to your brand. Rewards can include percentage or dollar discounts, buy-one-get-one (BOGO) programs and even the occasional ‘free’ product or service.

On the nonprofit side, integrating a local business reward with your fundraising has several benefits. Not only do you gain access to the business clients to extend your donor base, but the volume and dollar amount of donations will likely increase. If a donor was planning to make a $20 donation, but realizes they can get a discount for a local merchant if they increase the donation to $25 they are very likely to do so.

So how do you go about setting up a partnership with a local business? Start by looking in your own organization for connections; it is very possible that a board member, volunteer or donor has a business that would be an excellent partner. The existing commitment and interest in your cause can make this a very doable option.

If you don’t have a potential business partner already in your organizations, consider local businesses that you work with now. Is there a local restaurant you patronize frequently, are your company vehicles maintained by a local mechanic shop or do you use a specific supply vendor that also has a personal consumer base? Just knowing someone in the business can make things flow more smoothly.

The more likely scenario is identifying and reaching out to local businesses and sharing the value of participating with them. This is surprisingly easy, remember the business partner benefits in three ways – potential new clients in the donors who receive the reward and use it, increased loyalty from existing customers who also receive the reward when they donate and the overwhelmingly positive response to their increased philanthropy. Oh, and don’t forget that the value of the reward they offer may be a charitable deduction for the business – be sure the business verifies this with their accountant.

Consider taking your partner rewards even further by partnering with more than one business and offering a variety of rewards. This is another way to expand the opportunity for your organization – some donors will make an increased donation to get additional rewards and may also try new businesses in the same way.

Business-charity partnerships are making a difference in communities throughout the United States – find your partners and increase your fundraising!

Digital DonationsPledge participants, add the CrowdGIV Partner Rewards program to your crowdfunding campaign today! Contact us at 888-705-2220 oremailing us.

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Everybody into The Pot

Image credit:JV_springer

Kudos to Ezekiel Elliott for ‘jumping into the pot’ – literally! Despite the fact that the NFL will not be fining him, he will still donate to theSalvation Army. His original commitment after celebrating his touchdown on Sunday by jumping into the red kettle at AT&T Stadium was double the amount of the fine. Looking forward to hearing the amount!When asked why he jumped into the red kettle, “I mean it’s just sitting there right in the end zone, you know. It’s the perfect celebration,” Elliott said. “They’re one of our biggest partners, so I had to show them a little bit of love.”

One of their biggest partners – now that’s enough to bring tears to a fundraiser’s eyes. The halftime celebration on Thanksgiving Day is theRed Kettle Kickoff. The Cowboys have helped raise over $2 billion (that’sbillionwith a ‘B’), reaching more than 500 million people in need. Now there’s a partnership any nonprofit would love! A big name NFL team with millions of loyal fans and a large well known charity – a true recipe for success.

But what if you aren’t a big name brand or a large well known charity, how do you make a partnership work for your organization? Is it possible to make a scaled down version work? Absolutely, in fact, a well designed partnership program can be a win-win-win; for your organization, the business, and your community.

One very successful model for a small partnership is areward program. The nonprofit and a local business or businesses work together to develop a program where a ‘reward’ is offered in conjunction with the donation. An example might be a local restaurant offering a discount (percentage or BOGO) for a donation of $x amount. A donor may consider increasing the size of their donation based on acquiring the reward; a new potential donor may decide to make a donation to get the reward and existing loyal restaurant clients can become donors.

If you are a 501c3 organization and would like to know more about the CrowdGIV Partner Program contact Digital Donations at 888-705-2220 or byemail.

Connecting Cause with Commerce to Make a Difference in Your Community

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Is Your Website Hurting Your Fundraising Opportunities?

Anyone who has the passion to start a nonprofit does so with the intent of doing good, but unfortunately the intention to do good doesn’t always come with the ability to run a nonprofit. The big surprise to many founders is that they need expertise and capital to develop the basic foundation to fulfill their mission, making it almost impossible to be noticed in the very crowded world of philanthropy.

To gain recognition and ultimately receive the support of donors, an NPO must be able to create and effectively communicate their vision. There has to be more than passion, you have to share your story in a way that impacts people – enough to want to support your cause! The most cost efficient and impactful way of sharing your message is with a strong digital media strategy. Unfortunately, without a professionally designed website and social media presence, it is nearly impossible to gain the attention of potential donors. Well written content telling the story of your organization and its programs, makes it easier to compete with organizations that have similar missions, more funding and larger staff.

In today’s world of short attention spans, you don’t get a second chance to make a good first impression. Think of your site as a billboard to your online audience of potential supporters, donors and volunteers. And just like a torn and tattered billboard, a dated unattractive website sends a terrible message for anyone who visits and is considering making a donation. By not presenting your organization in the best way possible you aren’t going to attract the ‘right’ people.

There seem to be two prevalent myths about websites – the expensive version where you need to spend a lot of money with a web designer and content writers. And then there are the ‘do-it-yourself’ options, there are countless products and services but you really do need to know what you are doing to create a website that presents your organization as professional and a good steward of the donations you receive. Worst of all you can spend a lot of money with either the web designer or the DYI version and end up with a web site that just doesn’t resonate.

Thanks to the internet, nonprofits have extraordinary access to information and resources that provide fresh content to promote their online presence. With multiple platforms and channels of communication available, organizations have a growing means of spreading their message and interacting with supporters. An outdated web presence with content that hasn’t changed in a number of months or even years suggests to visitors that you are not a serious organization. Potential donors and supporters want to know what’s going on with your organization now, not last week, last month or last year!

But it’s hard to figure out how you are going to create this amazing on-line presence when you have no funds. That is exactly the reason you need an ongoing fundraising plan. Too often charities fear they will be judged solely on the percent of their donations that go to administrative and fundraising costs. Although it is important that the majority of every dollar raised go towards your programs—most charity watchdog agencies recommend a minimum of 75%, it is impossible to survive and thrive without covering the costs to operate your organization. The true cost of ‘delivering’ your service includes the administrative and marketing costs to support and fund the programs.

At the end of the day, the user experience you provide will determine whether your website and social media presence helps or hinders your organization.

To find out if you qualify for The Pledge and an in kind donation towards the purchase of a complete branding and website makeoverclick here.

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Payment Alliance International Adds Digital Fundraising Capabilities to ATM's

LOUISVILLE, Ky.--(BUSINESS WIRE)--Payment Alliance International (PAI), a leader in electronic payment processing solutions, today announced the release of the Digital Donations™ program, a new ATM fundraising capability powered by Digital Processing Solutions (DPS). This exciting advance in charitable giving is now being offered directly to retailers and the PAI market partner reseller network nationwide. Consumers will be able to make tax deductible charitable donations to national and local organizations at ATMs, in addition to conducting common activities such as cash withdrawals, account balance inquiries, foreign card currency conversions and more.

“Digital Donations fundraising technology enables donations via ATMs during cash withdrawals. This is a big step forward in facilitating easy and painless fundraising for charities across the country.” “Adding the Digital Donations technology to ATMs is a game changer for everyone involved,” stated John J. Leehy III, president and chief executive officer for PAI. “There are so many worthy causes that deserve our support. Now retailers and ATM operators have an efficient way to get involved and really do some good,” added Leehy.

Keith Orlean, president of DPS, stated, “Digital Donations fundraising technology enables donations via ATMs during cash withdrawals. This is a big step forward in facilitating easy and painless fundraising for charities across the country.” Orlean added, “Nonprofits and their constituents will certainly appreciate the convenience and simplicity of this type of fundraising.”

Making a contribution with Digital Donations is quick and easy. At participating ATMs, consumers have the option of donating to one of seven 501(c)(3) charitable organizations listed or selecting the “No Thanks” option. When a charity is chosen, consumers pick from a preset list of donation amounts. Donations, as small as $2.00 to as much as $50.00, make the act of giving affordable for most people. After processing, a receipt, which can be used for tax purposes, is generated containing all transaction activity.

With the PAI Digital Donations ATM program, up to five national charities, one national emergency relief agency and one local cause may be supported simultaneously. Current program partners include, the Alzheimer’s Foundation of America, Champions for Kids, National Multiple Sclerosis Society, The American Heart Association and The Humane Society. Other qualified 501(c)(3) charitable organizations can be quickly added after approval.

For more information about Digital Donations ATM capabilities, please telephone 877.271.2627 option 5, or emailATMSales@GoPAI.com.

About Digital Processing Solutions

Digital Processing Solutions, dba Digital Donations develops and distributes creative and innovative fundraising technologies that connect charities and foundations, with consumers and corporate America. Through the process of integrating a donation request as part of a financial transaction, ATM owners, Retailers, e-tailers and Service Providers have the ability to create a new or enhance their existing cause-marketing program. Digital Donations™ mission is to continuously develop fundraising solutions that change the way charities and foundations reach donors. Our passion for supporting philanthropic efforts through non-traditional methods provides a platform for those who wish to make a difference in the communities where they reside and transact business. Please visit www.digitaldonations.org.

About Payment Alliance International (PAI)

Payment Alliance International (PAI) is one of the nation’s largest deployers of ATMs, provides ATM processing and maintenance services, ATM equipment sales and support, and ATM branding programs. PAI also offers comprehensive payment and small business solutions including credit, debit and prepaid card acceptance services…all designed to maximize customer success and make business easy. Payment Alliance International is based in Louisville, Ky. For more information, please visit www.GoPAI.com or follow us on Facebook and Twitter.

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