Tracking In-Kind Donations for Nonprofits & Businesses

Please note that the following article is not meant to be taken as tax or financial advice. Everyone's situation is different, and your tax advisor should ultimately be consulted before making decisions.

In-kind donations are an important part of the mutually-beneficial relationship between many nonprofit organizations and businesses. Through in-kind gifts, nonprofits receive essential goods, products, and services, while businesses reap the rewards of corporate philanthropy—from increased customer loyalty to tax deductions.

However, while everyone may enjoy receiving (or giving!) in-kind donations, the task of tracking, recording, and reporting them is a chore that few are excited for. Accounting for in-kind gifts may be important for internal operations and tax purposes, but you’re among good company if part of you dreads this process.

To make things a little easier, we’ve created this short guide for nonprofits and businesses to get their records in order and simplify in-kind donation tracking. We’ll review the following topics:

• What Are In-Kind Donations?

• Why Should You Track In-Kind Donations?

• How Are In-Kind Donations Accounted for & Reported?

• What’s the Best Tool to Track & Account for In-Kind Donations?

Ready to learn how to effectively track, report, and manage your in-kind gifts? Let’s dive in with a brief overview of in-kind donations.

What Are In-Kind Donations?

To take a page from our Guide to In-Kind Donations, “in-kind donations are just non-cash contributions… This typically includes goods such as your own company’s products, gift certificates, supplies, or equipment.”

For example, say that a wine sampling company decides to package up its extra inventory and create gift baskets for local nonprofit raffle fundraisers. Alternatively, a theme park could donate “experiences” by providing special day passes as prizes for charitable programs. 

While these two scenarios may seem to fall under very different umbrellas of corporate philanthropy, they are both completely valid and effective examples of real-life in-kind donation programs that the DonationMatch team counts among our corporate success stories.

To clarify things a bit more, let’s briefly dive into the different kinds of in-kind gifts, as well as what doesn’t qualify as in-kind giving.

Types of In-Kind Donations to Nonprofits

Describing in-kind donations as simply “non-cash contributions” leaves a good bit of wiggle room for a variety of different gifts that a business might donate to a nonprofit, including:

• Goods. These are tangible products. One of the most desired types of donations by events, DonationMatch often enables the distribution of product samples or merchandise from brands to attendees at nonprofit events.

• Experiences. Experiential donations are typically tickets or passes that are redeemable for engaging experiences, such as a day at an amusement park, a hot air balloon ride, or even a destination vacation. 

• Services. The intangible donations of time and labor also qualify as in-kind giving. From pro bono legal work to free social media marketing consultation, the donation of professional services is another valuable form of corporate philanthropy.

While they are all very different and benefit both charities and companies in unique ways, these donations are all common and important forms of in-kind donations. So, what donations fail to qualify as in-kind gifts?

What Is Not Considered an In-Kind Donation?

Not every non-monetary product, service, or experience transferred from a donating organization to a nonprofit necessarily meets IRS requirements of an in-kind donation. In particular, the following gifts are disqualified from being officially reported as in-kind donations by the IRS:

• Volunteers hours (unless the volunteer is performing a specialized skill)

• Donations with stipulations on how they will be used 

• Gifts that have been earmarked for specific individuals or other organizations

• Donations given in exchange for something that exceeds their fair market value (FMV)

Of course, these charitable gestures provide their own advantages for the nonprofits and businesses that use them. For example, creating a volunteer grant program and incentivizing employees to donate their time to noble missions is a great way to increase employee engagement and positively market your brand. 

That being said, at least for your own records and for taxation purposes, these donations should not be tracked, accounted, or reported as official in-kind donations.

Why Should You Track In-Kind Donations?

In-Kind Donation Tracking for Nonprofits

For nonprofits, tracking what donations are given to the organization is an essential part of following Generally Accepted Accounting Principles (GAAP). GAAP is a set of official standards by which most nonprofit and for-profit organizations publish their financial statements. On the nonprofit side of things, this: 

• Allows donors and donating organizations to understand and share their impact on the nonprofit and the nonprofit’s mission.

• Enables grantmakers and other funding organizations to assess the nonprofit’s qualifications for certain grants, funds, and awarded gifts.

• Enables government entities, particularly the IRS, to assess the nonprofit’s qualifications for tax-exempt status.

Additionally, knowing the resources you have at your disposal is an important part of internal management and acknowledging gifts. Beyond showing gratitude to donors, gift acknowledgments are essential documents that donors and donating corporations need to present on their taxes to be eligible for tax deductibility. They must include:

• The name of the donor or donating entity

• The name of the nonprofit organization

• A declaration of the nonprofit’s EIN and 501(c)(3) tax-exempt status

• The date of the gift

• A description of the gift itself

Without a robust and organized in-kind donation tracking system, it would be impossible to create these acknowledgments, as well as complete the other important reporting tasks that we’ve named. For nonprofits to manage this process effectively, technology can be an incredibly valuable resource.

In particular, a dedicated in-kind donation platform is an especially useful tool for in-kind gift tracking. This will not only allow you to easily find and submit requests to corporate donors, but also automatically record dates, names, times, values, descriptions, and detailed reports of in-kind gifts that can be easily accessed and published in a matter of seconds.

In-Kind Donation Tracking for Businesses

For businesses, tracking the movement, amount, and type of in-kind donations can affect operations on multiple levels. For one thing, knowing the precise impact that you’ve had on your nonprofit partner can go a long way in cultivating an effective cause marketing campaign. 

Cause marketing is a form of marketing performed by for-profit businesses through their collaborations with nonprofit organizations. From engaging in matching gifts programs to hosting robust in-kind donation programs, corporate philanthropy and charitable donations can strengthen your business by:

• Boosting customer loyalty through increased trust and respect in your brand.

• Creating unique tax deductions for your business to take advantage of.

• Raising brand awareness through the public promotion of your philanthropy.

By knowing the details of the donations you’ve sent to your nonprofit partners, you can more precisely and effectively market your philanthropic efforts, manage your nonprofit partnerships, and regulate your internal operations.

Of course, you can’t forget about taxes! 

As we mentioned, the tax-deductibility of in-kind gifts is another big reason to carefully track your in-kind donations to nonprofit partners. Depending on the filing status of your business, you may be eligible for a range of different deductions, such as:

• A 50% to 60% deduction ceiling for sole proprietors, S corporations, and some other businesses and pass-through entities, deducted as business expenses

• A 10% to 25% deduction ceiling for C corporations, deducted from federal income tax returns

Just like nonprofit organizations, businesses can reap a host of benefits by properly tracking and organizing their in-kind contributions, a process that can also be far more easily managed with the right technology. 

A powerful corporate giving platform can help streamline and enhance your corporate philanthropy initiatives. For example, DonationMatch boasts a powerful in-kind giving platform that can help you to easily find the right, qualified nonprofit partners among thousands of potential organizations, as well as track, manage, and create custom reports on key pieces of data throughout your in-kind partnership program.

How Are In-Kind Donations Accounted for & Reported?

How Nonprofits Account for In-Kind Donations

When a nonprofit accepts an in-kind donation, the organization must record and report its fair market value (FMV) as contributed revenue to the organization. The process of doing so depends on the type of in-kind gift, for example:

• For goods and products, the nonprofit could ask the donor for the open market value or retail price of the items at the time of the donation.

• For professional services, the nonprofit could estimate the hourly rate of the specialized work being provided and multiply that by hours donated.

• For experiences, the nonprofit could find out what the open market value or potential cost of the ticket or experience is at the time of the donation.

This information allows nonprofits to report (according to GAAP standards) the total organization’s annual revenue and value of contributions received. This is an important factor for financial reporting, auditing, grant applications, and a number of other financial and legal functions.
On top of that, reporting the FMV of tangible in-kind donations is a requirement for completing Form 990, the document that determines the tax-exempt status of nonprofit organizations.

How Businesses Account for In-Kind Donations

Companies have the choice to report their in-kind contributions as either an operational/marketing expense or as a deductible charitable donation. Both options have their own potential tax deductions for your business, though reporting your gifts as donations has the added benefit of bolstering your reported totals for charitable giving and improving your public image.

Your business will need to determine the fair market value of your in-kind donations; providing this to recipient nonprofits will save them effort as well. For many goods and products, this will often be the same as their open market retail value. However, for services donated, the expense can vary and is usually closer to what your business actually spent, as personal time can’t be deducted but employee wages can be.

Once you’ve determined the value of your in-kind donations, you will fill out the proper IRS documentation based on your filing status. For instance:

• Sole proprietors, S corporations, and pass-through entities fill out Form 1040, Schedule A

• C corporations and most other businesses fill out Form 1040, Schedule C

• If your tax-deductible value is between $500 to $5,000, complete Form 8283 Section A

• If your tax-deductible value exceeds $5,000, complete Form 8283 Section B and perform an appraisal

• If your tax-deductible value exceeds $500,000, complete Form 8283 Section B and attach an official appraisal to the form

For more information on this subject, check out the DonationMatch tax deduction guide, contact your tax advisor, or visit the official IRS page on reporting charitable contributions.

What’s the Best Tool to Track In-Kind Donations?

Using the right software or platform to track your in-kind donations can make a huge impact on the speed, accuracy, and efficiency with which you manage your in-kind giving program and fill out your financial reports.

Of course, getting a professional tax advisor is ideal for navigating the annual in-kind accounting process. But on a day-to-day level, it’s important to have a dedicated tool in place that is tailor-made to manage, record, and keep track of your in-kind gifts.

DonationMatch: The Only True In-Kind Giving Platform

While many CSR software solutions deal very generally with the ins and outs of in-kind donations, DonationMatch is the only true, dedicated in-kind giving platform that tracks and helps manage every step of the in-kind donation process between businesses and nonprofits.

Take a look at a handful of the intuitive features offered by our intelligent in-kind giving and matchmaking tools:

• Proactive, custom search portals that allow you to finetune your giving parameters to enable the perfect nonprofit partners and giving opportunities to qualify

• True automation of the entire giving process, streamlining everything from the request screening process to secure e-delivery and tracking your donations

• Robust data tracking and reporting, providing you with up-to-date, key metrics and information about your in-kind donations, events, and nonprofit partnerships

Without our turnkey in-kind platform, you can effortlessly generate custom reports, track key performance indicators, and easily access the most important metrics and data you need to report and account for your in-kind donations.

Additional Resources

Recording, reporting, and accounting for your in-kind donations can feel like an impossible series of hoops to jump through. Fortunately, these insights and tools should help your organization to more confidently balance your books and keep track of your in-kind donations.

Eager to learn more about in-kind donations and tax reporting? Check out our other resources: 

• In-Kind Donations and Tax Deductions 101 | DonationMatch. Explore the intricacies of tax reporting and potential tax deductions for in-kind gifts.

• In-Kind Donations: Everything Your Organization Should Know. Learn everything there is to know about in-kind giving with our definitive guide to in-kind donations. 

• 6 Nonprofit Tax Tips for Reporting In-Kind Donations. Save money and perfect the tax reporting process for your in-kind donations with these essential tax tips.

In-Kind Donations and Tax Deductions 101 | DonationMatch

Please note that the following article is not meant to be taken as tax or financial advice. Everyone's situation is different, and your tax advisor should ultimately be consulted before making decisions.

To encourage the support of social betterment programs and charitable organizations, the U.S. government incentivizes nonprofits, businesses, and individuals alike with unique tax benefits. For qualified 501(c)(3) organizations, this means income tax exemption. And for donors and companies that support these charities, deductions on federal income taxes are available!

However, actually calculating your tax deductions, especially for in-kind donations, can be a bit of a challenge. From reporting the market value of your contributions to differentiating what is and isn’t tax-deductible, there are multiple factors to take into consideration.

To lend a hand, we’ve compiled this simple guide to navigating tax deductions for in-kind donations. We’ll cover:

• Charitable Gifts: In-Kind vs Monetary Donations

• FAQs: The Deductibility of In-Kind Donations

• 3 Tips to Save Money on Your In-Kind Donation Tax Reporting

Maybe you feel a personal obligation to support nonprofits that champion missions close to your heart. Or, your in-kind giving may be more strategic—donating helps businesses positively market their brand and increase customer loyalty. 

Whatever your reason and whoever you may be, these insights can enable you to make the most of your in-kind contributions and save revenue. Let’s dive in.

Charitable Gifts: In-Kind vs Monetary Donations

Tax-deductible donations are typically gifts contributed to organizations that, in the U.S., the IRS recognizes as “exempt organizations.” These contributions can take a variety of forms, from money to products and services. 

All of these methods of charitable giving are potentially eligible for tax deductions, but they must meet certain criteria. For example, your donations:

• Cannot be made out to political organizations, candidates, or campaigns

• Cannot be made in return for benefits, such as event access, that exceed the fair market value of your contributions

• Must be made out to officially registered or recognized tax-exempt organizations

Contributions to registered 501(c)(3) organizations are potentially tax- deductible, based on your filing entity’s tax situation, but they aren’t the only organizations that qualify. If you’re unsure whether an organization has 501(c)(3) status, you can always take a look at the Tax Exempt Organization Search from the IRS.

After your donations meet these basic requirements, you can begin considering how to calculate and report them for tax purposes. This is where monetary and in-kind contributions start to differ.

Reporting Monetary Donations for Tax Deductions

For cash, checks, and other monetary donations, the process is more straightforward. This is because your cash gifts already have an explicit value. A dollar is a dollar. 

However, from one-time cash donations to donated products to matched employee gifts, you should keep track of all charitable contributions throughout the year. 

Maintain organized receipts of your donations, such as bank records or written acknowledgments from the nonprofits that receive your donations. When the time comes for reporting, the forms that you fill out will depend on whether or not you are filing as a business, and how your business is structured. For example:

• Individuals and sole proprietors attach donation receipts to Form 1040, Schedule A; Individuals are subject to a $300 per-person limit before they must itemize deductions while proprietors itemize deductions immediately

• Partnerships, S Corporations, and pass-through entities attach receipts to personal returns (Form 1040, Schedule A), with deductions processed as business losses

• C Corporations attach receipts to Form 1040, Schedule C, deducting donations from federal income tax returns

For more information on how you or your business would report charitable contributions, check Tax Topic No. 506 from the IRS.

Reporting In-Kind Donations for Tax Deductions

For in-kind contributions, companies typically can choose to write off products provided to charitable events or programs as either a marketing expense or charitable donation, whichever is easier or more advantageous. For example, classifying items as donations can help when wishing to communicate higher charitable giving totals.

There are a few more things to consider about in-kind donations in tax reporting. Namely, you need to determine the fair market value (FMV) of your donations. This is a calculation of the amount of money that a donated good—like a raffle fundraising basket full of your products or pallets of products—would reasonably be worth. 

After all, you can’t very well declare “auctioned vacation experience” on your tax returns. The donor is responsible for determining and giving the IRS a tangible, calculable value to factor into your tax deductions. For physical products, retail value could work. For services like spa treatments, the amount eligible to be written off may be different and closer to what providing the service actually costs the business, since personal time cannot be deducted, but employee wages can. To learn more about fair market value and how to determine the FMV of your in-kind gifts, reference IRS Publication 561. 

Additionally, if total tax deductions exceed $500, Form 8283 (for non-cash charitable contributions) is required in addition to Form 1040. Take a look at the section “How do I report my in-kind donations for tax purposes?” for more information about completing IRS Form 8283.

That being said, there are some exceptions to these standards! For example, special rules apply to select types of charitable donations, like inventory and similar items, pre-valued. 

But don’t be discouraged! There are hundreds of IRS resources that delve into the finer details of charitable donation reporting to help you make the most of in-kind donations.
Furthermore, if you’re a business professional managing a robust in-kind giving program, investing in a dedicated in-kind giving platform can streamline the entire vetting and reporting process through intuitive data tracking and record-keeping.

FAQs: The Deductibility of In-Kind Donations

If you’re still buzzing with questions about the tax deduction potential of in-kind donations, you’re not alone! Tax deduction reporting is a complex process with unique standards, rates, and rules to consider. Let’s tackle a few of the most frequently asked questions regarding tax deduction and charitable donations.

Can businesses deduct charitable contributions?

The simple answer is yes, businesses can absolutely deduct charitable contributions (both monetary and in-kind) from their taxes. While you will not receive a deduction for the donation of services, physical products and costs associated with donated experiences are eligible for deduction.

How much can you deduct for charitable contributions? 

The answer depends on several factors such as how you are filing, other deductions, and what kinds of donations are being reported. At the time of this article’s publishing, in-kind donations have a deduction ceiling of about 50% to 60% of gross adjusted income (AGI) for some businesses and most individuals.

Up to 100% of monetary donations can be potentially deducted, but actual allowances still depend on the classification of organizations you donate to and other factors on your own tax returns.

Take a look at the different kinds of deduction ceilings depending on how you file your taxes and to whom you donate:

• A 30% deduction ceiling is imposed for donations to certain veterans groups, cemeteries, fraternities, and private foundations

• If you receive something in return for your donation, like event access, you can only deduct the leftover fair market value after subtracting the value of what was received

• C corporations have a deduction ceiling between 10% to 25%, which they must affirmatively elect for each contribution

For more information on your specific access to in-kind tax deductibility, consult the IRS website and your own financial/tax advisor.

What in-kind donations are not tax-deductible?

If you want your in-kind gifts to qualify for tax deductions, you’ll have to do a bit of research in advance. For one thing, time and services do not typically qualify for a deduction. However, you can deduct additional expenses incurred during your hours of service—a great reason for businesses to promote employee volunteering!

Additionally, you’ll want to pay very close attention to the organizations you’re donating to. Once again, the following kinds of gifts are not eligible for tax deductions:

• Political gifts

• Donation amounts that are exceeded by the FMV of benefits you receive in return

• Donations to organizations that the IRS does not recognize as exempt

This is one of the reasons it’s so important to partner with the right nonprofit organizations!

To ensure that your business is sending its valuable in-kind contributions to qualified nonprofits, consider investing in DonationMatch’s turnkey donation matchmaking software. Our intuitive corporate giving platform allows you to be strategic about giving to nonprofits that are vetted and have upcoming event opportunities, maximizing your chances for fit with your goals and tax deductibility.

How do I report my in-kind donations for tax purposes?

As we mentioned, you will first determine the FMV of your donations. Remember, FMV describes the appraised cost of a non-cash charitable contribution. 

Once you’ve determined the value of your in-kind donations and collected the proper donation receipts, you will complete the appropriate form(s) to report it. 

In addition to Form 1040 (Schedule A for individuals, sole proprietors, and pass-through entities; Schedule C for most other businesses), you will be asked to fill out Form 8283. Fill out Section A if your tax-deductible value is between $500 to $5,000. For deductible values of single items exceeding $5,000, complete Section B and perform an official appraisal. For deductible values exceeding $500,000, fill out Section B and attach the appraisal to the tax form.

3 Tips to Save Money on Your In-Kind Donation Tax Reporting

Now that you’ve considered when, how, and under what circumstances your in-kind donations are eligible for tax deductions, it’s time to top off your understanding with a few best practices. Follow these essential in-kind donation tax tips to begin tackling the in-kind donation deduction process like an expert.

1. Record and document your contributions.

It’s impossible to stress this point enough—keeping organized records of your contributions is one of the first and most important steps to successfully securing tax deductions. 

While there are hundreds of resources to guide you through the tax reporting and form-filling process, none of them can do you much good if you’ve lost the details and proof of your charitable giving.

Be sure to practice good data hygiene with your personal or organizational records—remove outdated or unhelpful information, utilize effective database software, and perform data audits when necessary. 

2. VeT Organizations for fit and compliance. 

While you can technically donate to organizations, people, or causes that are not IRS-recognized 501(c)(3)’s, your potential ceiling for tax deductions may be significantly lower.

Furthermore, if you are a business owner, other advantages of corporate social responsibility—such as positive impressions, cause marketing, and increased customer loyalty— work best when you partner with qualified, well-respected nonprofits. 

To maximize the benefits of in-kind giving for your business (and your nonprofit partners!), take the time to verify the validity of your potential donation recipients’ 501(3)(c) status and the person reaching out to you to ensure they are legitimately connected with the organization. DonationMatch’s built-in vetting finds 10-20% of donation solicitations to be questionable or unauthorized, most commonly due to contacts soliciting donations without permission or lack of IRS-recognized exempt status.

3. Leverage dedicated software to manage in-kind donations.

From automating communications to simplifying data tracking, the right in-kind donation software can completely transform how you manage your in-kind giving processes. 

While individual people can get by with a simple spreadsheet of their occasional charitable giving, your business and its more robust, complex giving programs would greatly benefit from specialized software. 
In-kind giving platforms like DonationMatch are built to easily facilitate, record, and manage the in-kind giving process for companies that distribute thousands of donations a year. This means that everything from vetting and picking out the targeted nonprofit recipients of donations to printing out detailed reports of your contributions is made possible with just a few clicks.

Wrapping Up

Reporting tax deductions is an essential tax duty for countless businesses, yet it’s something surprisingly few people have a firm grasp of—and it’s no wonder why. Tax deduction reporting, and specifically reporting for charitable contributions, is a delicate process that takes careful attention. 

However, with the help of these insights and best practices, you should be far better equipped to tackle your in-kind donation programs, assess their tax deductibility, and make the most of your charitable giving!

Interested in learning more about in-kind donations, in-kind giving software, and tax filing best practices? Check out these additional resources:

• In-Kind Donations: Everything Your Organization Should Know. Beyond a tax deduction, there are far more ways that in-kind donations can benefit your organization. Dive into the fundamentals of in-kind giving, from business benefits to essential tools.

• 6 Nonprofit Tax Tips for Reporting In-Kind Donations. Learn more about the nonprofit side of the tax process with these expert tips for in-kind donation tax reporting.

• Corporate Giving Platform | Give Smarter with DonationMatch. Invest in corporate giving software that can not only help you organize your in-kind donation program, but completely optimize it. Give smarter with DonationMatch.

3 Simple Steps to Protect Your Nonprofit From Financial Fraud

Financial corruption is a specter that haunts every sector of the working world. However, nonprofits are not only at great risk of falling victim to fraud, but they suffer the most from its consequences.

After all, nonprofits are mission-driven, faith-based, and rely heavily on grants and donations. A financial corruption scandal can completely dry up goodwill, making it impossible to retain donors and acquire future support in the form of volunteering, corporate sponsorship programs, or other reputation-driven engagements. 

Yet, as frightening as fraud may seem, you don’t have to curl up into a corner and wait for the inevitable. There are options available to you to not only prevent fraud, but efficiently deal with these situations if and when they occur. 

Over the course of this short guide, we will break down the following essential techniques to quickly and effectively maneuver around financial and data corruption: 

1. Employee and Volunteer Training 

2. Internal Oversight

3. Secure Payment Technologies

Fraud is a complicated reality for any professional to tackle, especially for those working in a sector that relies so heavily on good faith and digital transactions. When your donors decide to give, they shouldn’t have to worry about providing financial details in your forms. However, with the following preventive measures, you should be able to brave these attacks with complete confidence.

1. Employee and Volunteer Training 

If fraud does occur within your organization, the sad truth is that much of the time it will be a betrayal of trust from one of your employees. Sometimes these transgressions will be intentional, and other times entirely unconscious, but all the same they can often be linked to staff. That being said, your best resource to manage organizational purity and keep clean books are those very same staff members. 

This may sound like a paradox, but the reality is that there are few greater drains on your organization’s time and resources than burdening a small circle of upper management with fraud detection. For the most part, your team is a dedicated and passionate group of individuals working towards the same goal. 

By providing anti-fraud training to all of your employees, you spread financial responsibility to corners of your organization that you never would have been able to effectively manage. 

Here are some of the essential anti-fraud employee training tools and resources that you should consider implementing: 

• A learning series. In order for your team to effectively deal with fraud, you need to be able to recognize it. Educate current and incoming employees on common types of scams that they may come across, such as embezzlement, fund misappropriation, and vendor schemes. These courses will not only tighten up your financial defenses, but they can be used as an opportunity to engage your employees and create a sense of team solidarity. 

• A fraud protection manual. Draft up a dedicated resource for employees to regularly turn back to if they ever have questions or need further clarification on what constitutes fraud. This guide should also include a clear plan of reportage and a point of contact for staff to follow if they do encounter fraudulent activities. 

• An audit committee. In the event of fraud, a team of dedicated staff must already be organized to address the issue. This committee should comprise professionals across multiple departments, eliminating the potential for corruption. Additionally, they should undergo extensive coaching to understand how to confidently, quickly shut down the scam and minimize any bad press that might arise. 

We also encourage you to set up a similar system for volunteers. Many nonprofits tend to be laxer on training and managing their volunteers because these helpers are unpaid and the organization is eager to raise volunteer recruitment rates. 

While it may seem inconvenient, these programs should be common practice for anyone that is granted organizational access higher than a common member of the public. Of course, this is especially important for volunteers who join special committees or become involved in financial management. 

Your staff is your first line of defense against fraud. Your own attempts to individually police fraudulent activity will never outperform their readily available support. 

2. Internal Oversight 

No amount of bad intentions can facilitate a successful fraud scheme—the scam can only occur if the opportunity is present. Disorganization and poor account management provide that opportunity. This is part of what makes nonprofits more susceptible to fraud than corporations. 

After all, while profit-driven entities are more centralized and closely managed, nonprofits tend to be run with a bit less oversight and far more trust. There is a natural assumption that everyone involved with the organization is concerned with the mission, rather than their own self-interests. 

While this trust and solidarity are essential, there shouldn’t be large gaps in your operations that lend themselves to potential exploitation. 

We recommend some of the following strategies to tighten internal oversight and safeguard your finances from opportunistic corruption: 

• Pay attention to your tax returns. This may seem like a no-brainer, but too many nonprofits have prolonged the lifecycle of a scam by not reviewing their tax statements. Treat these tax reportings as a diagnostic of your financial health and retain an account team that will be able to recognize the symptoms of fraud. 

• Minimize individual management. Even the most trusted employee shouldn’t be managing significant financial data alone. On the other hand, you shouldn’t be giving out data permissions to just anyone, as sharing a blanket of access to financial accounts also poses a risk to security. The solution is to make sure that you have multiple, dedicated team members trained in handling financial data who can hold one another accountable and more efficiently monitor your finances. 

• Leverage your technology. You don’t have to completely rely on manual oversight. For one thing, you can invest in special applications to help you manage data, track finances, and delegate tasks. The iATS Payments buyer’s guide to Salesforce apps provides a list of tools and solutions that can help protect the data of Salesforce users. It’s also a good idea to optimize your nonprofit website to more effectively manage backend operations. 

For the most part, fraud is a crime of opportunity. With these operational management techniques, you eliminate the major safety gaps that might catch the attention of a would-be fraudster. 

3. Secure Payment Technologies 

If your own human approaches to fraud prevention aren’t enough, strengthening your payment system itself is a good back-up against various kinds of schemes. In fact, some types of fraud are specifically facilitated by a weak payment processor security, such as phishing, pagejacking, and merchant identity theft. 

To maximize the security of your payment system, we suggest that you opt for a dedicated payment processor, rather than an aggregate system. This ensures that your payment processing is carried out through a closed channel, rather than a third-party platform running payments concurrently with thousands of other clients. 

Additionally, you should be mindful of the following key safety features when assessing your own payment technology: 

• Dedicated anti-fraud processes. Rather than just assessing the general security of a processor, look for features that are specifically built for fraud prevention. This iATS Payments article on donation page best practices goes into a bit more depth on ideal features for donation processing, such as BIN and CVV2 verification.

• Tokenization and encryption. These encoding systems disguise precious financial data, rendering them unreadable to fraudsters, black hat hackers, and malware programs. 

• PCI compliance. This is a system security certification that must be officially verified and administered by the Payment Card Industry Security Standards Council. This is as close to a guarantee of security that is possible, according to the highest standards of the credit card industry. 

There are some scams that could slip past even the most prudent team of nonprofit professionals. However, your first line of defense shouldn’t be your only defense—these technical safeguards can help to repel thieves and end many scams before they even begin. 

The possibility of fraud is a chilling prospect, but it doesn’t have to be a boogeyman that stops organizational operations in their tracks. When or if fraud takes place, you will now be able to minimize its scope and effectively take action. 

These measures should not only put you more at ease, but allow your entire team to capably navigate your financial operations with more grace and precision than ever before.

Corporate Philanthropy: What Your Business Needs to Know

With social activism and ethical business practices taking center stage in national conversations, it makes sense that corporate social responsibility (CSR) and corporate philanthropy programs are on the rise. Instead of just selling valuable products and services, your business is now expected to take an active role in social causes. 

In fact, according to a Cone Communications study on CSR, 63% of Americans hope businesses will take charge in driving social and environmental change in the absence of government regulation. Corporate philanthropy is increasingly becoming less of a “nice-to-have” offering and more of a “must-have” element for businesses to keep up with consumer desires. 

But while your organization may be facing pressure to implement these programs, you don’t have to view them as a burden. In fact, if implemented correctly, your corporate philanthropy programs can be a driving force for customer loyalty, cause marketing, brand awareness, and employee engagement. 

This guide will provide a roadmap for marketing managers, community giving managers, and HR professionals taking the dive into the world of corporate philanthropy. You’ll not only learn what corporate philanthropy is and its different types, but how to start a successful CSR program of your own by going over the key essentials of CSR, including:

• What Is Corporate Philanthropy?

• How Corporate Philanthropy Benefits Businesses

• Types of Corporate Philanthropy

• 5 Steps for Creating a Corporate Philanthropy Program

No matter your business’s products or services, these strategies should help you take action and launch your own robust corporate philanthropy program. Let’s get started with a brief overview of what corporate philanthropy is and what it might look like for your business!

What is Corporate Philanthropy?

Corporate philanthropy is the voluntary actions that businesses take to improve their impact on the environment, their communities, and society at large. These programs have become incredibly popular in the business sector, with over $21 billion in corporate gifts given to nonprofits last year alone. 

This may seem like a hefty investment to please your customers, but the benefits of corporate philanthropy go far beyond presenting a positive image for your business. 

For instance, corporate philanthropy can provide an essential boost to your employee engagement rates. Over 71% of employees say it is imperative or very important to work at a business where the culture supports giving and volunteering.

This statistic might seem surprising if your idea of corporate philanthropy is just cutting a check to a local charity. For many people, the first idea that comes to mind when thinking of philanthropy is a cash donation. But there are a variety of different corporate giving programs that provide aid to nonprofits in different ways—which we’ll later discuss in more depth. 

How Corporate Philanthropy Benefits Businesses 

You may wonder if the cost of investing in corporate philanthropy is worth the benefits. After all, every single one of the corporate philanthropy programs we’ve discussed, with the exception of in-kind donations, involves donating money to an organization without necessarily receiving anything tangible in exchange. 

So, how can corporate philanthropy strengthen your business and earn back its return on investment? 

In addition to providing crucial support to worthy causes in your community, corporate philanthropy offers businesses many advantages such as: 

• Increased employee engagement. As mentioned earlier, corporate philanthropy can significantly improve employee engagement and retention rates. This Re:Charity report on corporate giving shows that employees who engage in corporate giving programs tend to have 75% longer tenures with their employers. The message is clear: your employees want to be a part of a business that improves their communities and creates change beyond the walls of their office. Your corporate philanthropy programs aren’t just for public vanity—they can and do create real, positive changes in your work environment’s quality and overall team member satisfaction. 

• Better engagement with customers. In an age when mass media is instantly available at everyone’s fingertips, customers have become increasingly mindful of the companies they support through their purchases. As quickly as bad news about a company will spread, good news about your company’s involvement in charitable causes will also reach customers. In fact, 87% of customers will purchase a product because a company advocated for an issue they care about. 

• A marketing and reputation boost. When you partner with nonprofits and other charitable organizations, you can expand your marketing reach. These joint efforts, such as charitable events or fundraisers, expose both of your organizations to audiences that may have otherwise been difficult to reach. Additionally, these activities can lead community members to view your organization as a philanthropically-minded force for good. For example, this America’s Charities workplace giving survey shows that 69% of respondents reported increased sales after launching CSR programs. 

Creating an effective cooperative giving program may require a bit of investment, but it will more than make up for the initial planning and donations required to keep these initiatives running. 

For example, Six Flags North America has used its corporate philanthropy program to engage employees, partner with community leaders, and create a sense of customer loyalty that will last a lifetime. From its Project 6 program to its Make-a-Wish sponsorship, Six Flags has leveraged the power of in-kind donations to share thrilling theme park experiences with children and community members in need, cementing itself as a pillar of social good in its communities.

Types of Corporate Philanthropy

Corporate philanthropy programs can vary widely depending on a business’s industry and community engagement goals. Just as each business’s day-to-day operations, products, and services are different, every corporate philanthropy program will work differently. 

That being said, there are several common corporate philanthropy initiatives, including:

Monetary Donations

DIRECT MONETARY DONATIONS

Direct monetary donations, sometimes structured as grants, are payments that your organization makes to nonprofits. This is one of the most common and straightforward forms of corporate philanthropy.

Direction donations can be as simple as writing a check to a charity. Alternatively, you could partner to contribute a portion of your sales during a given time period to a designated nonprofit or host an ongoing donation drive. 

MATCHING GIFTS

Matching gifts are donations that businesses make to match their employee’s monetary contributions to charitable causes. This allows you to engage your employees on a one-on-one basis, showing support and giving to organizations that each of them finds personally important. 

The process of actually facilitating these matching gifts is usually a shared, online exchange between your matching gift system and the nonprofit’s matching gift database software, where:

1. Your employee logs into the nonprofit’s donation page to submit their gift.

2. Employees search for your company’s matching gift form through the matching gift database embedded in the donation page.

3. Employees can automatically submit a request for you to match their donation. 

The ratio and maximum amount of these matches vary for each organization. For example, many businesses offer 1:1 matches, but some provide 2:1 or even 3:1 matches. 

However you go about setting up your match ratio or your matching gift form, just be sure to make sure that employees know about the program!

SPONSORSHIPS

Corporate sponsorships are a form of corporate philanthropy where your business supports a nonprofit during an event or specific fundraising effort. 

This time-based type of philanthropy is flexible and can be mixed and matched with other philanthropic initiatives, such as a holiday direct donation campaign, to build up a more concentrated wave of support. Consider implementing sponsorships into your current corporate philanthropy program to complement and enhance your other campaigns.

In-Kind Donations

IN-KIND DONATIONS

In-kind donations are the donation of goods, experiences, or services rather than money. 

For example, DonationMatch has helped many product-based businesses donate their extra inventory and product samples to charity events, turning unnecessary overhead into a marketing opportunity. 

On the nonprofit side of the engagement, these charitable organizations are able to get in touch with businesses and immediately receive valuable or otherwise unattainable items that can be put directly towards fundraising for their mission. 

Even businesses that don’t sell physical products, such as the Chicago Museum of Contemporary Art, have been able to participate in in-kind giving by donating tours, tickets, and valuable experiences to local community programs. 

SPONSORSHIPS 

As we mentioned, corporate sponsorships involve your business offering support to a nonprofit during a specific event, campaign, or project. For instance, you might donate dining gift certificates to be put up for bid at a charity auction or send employee volunteers to help facilitate a 5K. 

Corporate sponsorships intersect with several other types of corporate philanthropy. For example, donating those auctionable gift certificates would count as both a sponsorship and an in-kind donation program.

You can pair corporate sponsorships with all of the other types of corporate philanthropy on this list to create a concentrated, time-sensitive campaign that will bring attention to your philanthropic efforts. 

talent donations

VOLUNTEER GRANTS

Volunteer grants are contributions that employers make to nonprofits that their employees have volunteered with for a specific amount of time. 

Volunteer grants, volunteer grant funds, or dollars for doers programs are a particularly effective way to engage your employees, rewarding them for actively helping charitable missions.

No matter the most compatible corporate philanthropy program, be sure to choose one or two well-suited nonprofits with which to create ongoing partnerships. As you learn more about your nonprofit partners, you can understand what types of donations and giving initiatives are most helpful for them. 

Additionally, partner with charitable causes that align with your business’s mission or sector. Doing so will help create a more consistent, positive public reception of your brand. Before getting started, be sure that your business has the right tools to find the best nonprofits for your philanthropic partnership.

5 Steps to Create a Corporate Philanthropy Program

Launching your own corporate philanthropy program can be difficult without a bit of guidance. The DonationMatch team has had years of experience organizing and facilitating in-kind corporate philanthropy initiatives for businesses, and with these fundamental strategies, you should be well on your way to starting your own program: 

1. Establish your goals.

Before you decide what type of corporate philanthropy program to pursue, you need to establish your CSR campaign goals. Think about what you’re hoping to gain from your campaigns, such as increased employee engagement or a reputational boost. Only then can you really begin to build out your corporate philanthropy program. 

Here’s how you should walk through the goal-setting process:

1. Determine target benefits. What are you looking for in your CSR program—employee engagement? Brand exposure through cause marketing? 

2. Assess CSR strategy’s compatibility with your business. How does the giving program you’re considering help you achieve the goals in step 1? Are there other types of corporate philanthropy that might be more beneficial for your target goals?

3. Establish specific return on investment markers. In other words, figure out what specific key performance indicators (KPIs) you can measure to assess whether your program is doing well. We’ll touch more on this later. 

For example, if your main goal is to create a more active and more public partnership of giving between your business and community organizations, then an in-kind donation program may be the best fit for you. By contrast, if you want to improve employee engagement, then a matching gifts or volunteer grant program may provide better results. 

2. Gather the necessary technology.

Gathering the right tools is a must for building your corporate philanthropy program. While smaller businesses may be able to run a rudimentary corporate giving program through manual means, CSR software tools can optimize your campaigns and maximize their effectiveness. 

To ensure that your program will run smoothly, reach the widest possible audience, and facilitate relationships with the right nonprofits, invest in these software solutions: 

• In-kind donation portal. There are thousands of charitable organizations and nonprofits that are eager for your donations. However, qualifying and choosing organizations that are well-suited for your program is a far greater challenge. Fortunately, an in-kind donation platform can help. This tool allows you to cut through the clutter and match your business with qualified nonprofits that meet the specific criteria that you’ve entered, which may include location, cause type, and supporter demographics that match your own customers. 

• Communication platforms. How you communicate with your customers and employees about your philanthropic initiatives can determine your program’s success. For example, a volunteer grant program won’t succeed if no one in your organization is aware that you are offering grants. Leverage communication platforms, such as your email marketing tools and social media strategies, to promote these opportunities.  

• A tracking and reporting system. Data tracking and data reportage are two of the most fundamental tools necessary for tracking your program’s performance. This data will show you where your program can improve and where you’re doing well. For instance, tracking data for your in-kind giving program will allow you to determine which nonprofit partnerships have been the most rewarding and what products you should continue to allocate to your partners. 

Investing in these tools may seem like a costly investment. Fortunately, there are comprehensive platforms that can help you achieve all of these goals. 

For example, the DonationMatch platform is able to automate and streamline nearly every step of the in-kind giving process, from partnership matching to facilitating donations and performance tracking. 

When you begin searching for your own corporate giving tools, look for effective, turnkey platforms that centralize all of these features into one or two powerful solutions. 

3. Connect with nonprofit partners. 

Finding nonprofit partners that fit your corporate giving goals can be a challenge. 

The number of nonprofits you want to engage will greatly influence the reach and depth of your campaigns.

Here are a few key features you should consider when choosing your nonprofit partner:

• Years in operation

• Community reach and impact

• How their mission aligns with your business

• Past corporations they’ve partnered with

• What types of programs they might be open to

If a deeper, long-lasting, integrated relationship is desired, take your time to choose the right partner and foster a relationship. If you want to maximize brand visibility and reach, then engaging more organizations with a turnkey program will be more effective. The beauty of these programs is that you can do both. For instance, as we mentioned earlier, Six Flags North America chose to partner with Make a Wish to nurture a robust and highly beneficial relationship over years, yet continues to donate tickets to thousands of charity fundraisers each year.

4. Build excitement around your initiatives. 

Your corporate philanthropy programs may serve a practical purpose, but that doesn’t mean that they can’t be fun and engaging. In fact, that’s one of their most important benefits! 

Stir up excitement amongst your employees and customers by: 

• Gathering employer and customer feedback

• Promoting your initiatives during team gatherings

• Creating an employee and/or customer-led corporate philanthropy council

• Sharing information about your programs on your company website

This will help to better guarantee that your programs will perform successfully and make the most positive impact!

5. Track your progress. 

We’ve said it once and we’ll say it again: data tracking is one of the most fundamental parts of running an effective corporate philanthropy program. How else will you know how to avert failure or repeat the success of past campaigns?

Track the following key statistics to help measure the impact of your program and the level of engagement: 

• Total contributions annually 

• Participation rates (such as who took advantage of matching gifts!)

• Changes in rates of employee retention and overall satisfaction

• Changes in rates of customer retention and overall satisfaction

• Changes in sales and net revenue

• Changes in sources of new customers

• Associated costs, savings, and ROI

• Expressed feedback and appreciation for giving programs (through survey responses)

These essential metrics should give you a good starting point, but you’ll want to sit down with your team to decide what data points from your campaigns you should focus on. After all, your own corporate philanthropy is unique, and will have its own unique goals and objectives.

Wrapping Up

Appealing to your customer base, engaging employees, and positively promoting your business are worthwhile goals to strive for. The social changes that have begun to rock the corporate world have only accelerated the rise of corporate social responsibility as a necessary cornerstone of your business practices. 

With this guide and the right, intuitive corporate giving tools, take your business one step closer to launching your own effective corporate philanthropy program. 

For more information on corporate philanthropy, different CSR programs, and DonationMatch’s solution to corporate philanthropy, check out these additional resources: 

• Top 3 Things Donating Can Do For Your Business. Take a deeper look into the benefits of corporate giving and how it can generate greater exposure, customer loyalty, and even increased revenue for your company. 

• Corporate Philanthropy Made Easy — DonationMatch. DonationMatch is dedicated to your corporate philanthropy endeavors. Explore how our turnkey platform has revolutionized the in-kind donation process. 

• Workplace Giving: Explore Matching Gifts From the Other Side. Employee engagement is a high priority for all corporate philanthropy programs. Dive into tips, tools, and software solutions to initiate your workplace giving campaigns and engage employees.

It's Time to Embrace Automated Communications: 4 Arguments

We’ve all been there: you go to troubleshoot a technology problem, and the voice on the other end isn’t a voice at all—it’s an automated messaging system. After many “hit X number for [name of department]” interactions, you find yourself asking to speak with a representative instead. Or maybe, you’ve been inundated with automated text messages from voter outreach groups.

The truth is, automated messaging has a controversial reputation. However, that doesn’t mean that you shouldn’t incorporate it into your nonprofit’s communications strategy heading into 2022.

From increased capacity to increased control over the supporter experience, there are a variety of ways that modern automated messaging can improve your nonprofit’s communications strategy. Whether you use social media messaging, email automation, or another online outreach method, modern automated messaging has grown far beyond the robotic bots of years past.

Your nonprofit is already using video-conferencing to go virtual and social media for peer-to-peer efforts. Why not use innovative messaging automation as well? Here are four arguments for why you should consider embracing automated messaging: 

• Automated communications solve the problem of low staff resources.

• Communications can be optimized using data.

• You can decrease variability in the supporter experience.

• Automation no longer equates to robotic and stale. 

GoodUnited’s expertise in automated communications focuses on Facebook fundraisers, so this guide will discuss using automated messaging primarily on social media. However, these same arguments apply to all sorts of communications channels, including email, text messaging, and even website chat boxes.

As you read, consider the many communications channels your nonprofit uses to reach out to donors, volunteers, advocates, and more, and how automated messaging can improve your strategy. Let’s dive in.

Automated communications solve the problem of low staff resources.

As the internet grows increasingly intertwined with your nonprofit’s outreach, you’re able to communicate with a significantly larger audience than ever before. Consider when you were marketing solely to regional supporters via direct mail. Now, you can have virtual event attendees joining from continents away. In the past few years, we’d guess that your supporter base has increased exponentially.

The possibilities are endless. Unfortunately, your staff’s time is not.

Of course, it’s not like you’re asking staff members to hand-write thousands of letters and mail them one by one (though a resource like fundraising letters can help if you are). By nature, sending an email, commenting a thank-you note on a Facebook fundraiser, and answering questions that come through via Facebook Messenger are all fairly quick tasks.

However, let’s say each of those tasks takes approximately one minute to complete. Multiply that by the thousands of (or more) supporters that you’re able to connect with on the internet, and your team simply won’t have the capacity to keep up.

That’s where automated communications step up to the plate. The last thing you want to do is allow supporters to fall through the cracks and not receive the responses they deserve.

For example, let’s say you have an influx of supporters starting Facebook fundraisers on behalf of your nonprofit. With automated communications, you can post a comment on 100% of those fundraisers thanking the individual user for their contributions. This drastically improves their experience supporting your nonprofit and therefore, increases the likelihood that they will continue doing so.

Communications can be optimized using data.

Think about when you were interviewing for your first job. We’d guess that for every one interview that extended an offer, there were 10 (or more) that didn’t go quite as successfully. Why did some interviews go wrong? Why did the successful interviews go right?

In this scenario, there are simply too many moving parts to answer those questions. The interview questions, the mood of the interviewer and interviewee, the company’s expectations—these variables are different in each and every conference room you walked into, making it impossible to understand what, exactly, was the equation for success.

The same holds true for non-automated communications. The specific phrasing that a staff member uses when communicating with a donor, the pacing of their responses (for example, quick responses versus hours-long delays), and even the tone conveyed can not only have a major impact on the communication’s success, but can vary drastically across team members and volunteers.

This variation makes it impossible to tune into your donor communications and understand what works and what doesn’t. However, with automated communications, you can adjust one variable at a time to find the right answer.

Let’s say you want to increase the number of users who started Facebook fundraisers on your behalf that are later added as full contacts into your CRM. So, you test two messaging variations:

• Variation A: “Thank you for starting a fundraiser on behalf of [Name of Nonprofit]! Want to learn more about future opportunities? Fill out this contact survey: [Link to Survey].”

• Variation B: “Thank you for starting a fundraiser on behalf of “Name of Nonprofit]! Supporters like you are integral to advancing [Mission], and we’d love to keep you around. To learn more about future opportunities, chat with us here: [Link to Survey]!”

Some supporters receive variation “A,” while others receive variation ”B.” Regardless of the variation, the supporter receives the note exactly 15-minutes after starting their Facebook fundraiser. The note is left as a comment on the fundraiser itself.

With this, you can test just the impact of the message and no other variables. Collect data on your marketing strategy to learn what’s making it successful and what could be improved, and then make adjustments accordingly. Plus, the “successful” variations can be used immediately, rather than waiting for them to filter through your team and get slowly rolled out across staff members’ individual processes.

You can decrease variability in the supporter experience.

We’ve discussed how automated messaging allows you to control all variables in a communication and therefore, measure the success of changes to your strategy. However, this control also allows you to ensure each and every supporter has a positive, routine experience with your nonprofit.

For each supporter:

• The initial script can be the same

• Communications can be sent within the same interval of time

• The same questions and resources can be shared

Let’s say one of your staff members is having an uncharacteristically tough day (we’ve all been there!). This staff member is tasked with posting thank-you notes to your social media supporters. However, their bad day is leaking into their messaging, leading to comments that are downtrodden at worst and unenthusiastic at best.

With automated messaging, you don’t need to worry about the impact of cloudy days. Instead, you can use a template for thanking donors on Facebook (GoodUnited has a variety available here), and ensure that every supporter has a positive interaction with your nonprofit. This reputation of proven positive experiences can increase your supporter retention.

Automation no longer equates to robotic and stale.

Even if you have read all of these arguments and largely agree with them, you may still hesitate to use automated communications. The reasoning is simple—many people have had bad experiences with automation! Whether you’ve had issues with a robotic customer service recording when trying to set up your cable and internet, or a website chatbot that was a little too unhelpful, automated communications have a somewhat bad reputation.

In nonprofit fundraising, which relies on the foundation of positive relationships with donors, the last thing you want is to strike out on the communications front. However, the automated communications of modern nonprofit fundraising are far different from what you may be familiar with—robotic, stale, impersonal conversations are a thing of the past.

Let’s take the example of automated messaging via Facebook Messenger. There are now turnkey social fundraising solutions that allow you to have one-on-one conversations with each and every social supporter. The messaging sequences are not only customized to your nonprofit’s branding and values, but they also can adjust depending on a supporter’s responses.

So for example, let’s say you want to target matching gift programs in your next social fundraising push. Your automated messaging sequence can ask fundraisers who they’re employed by. If it’s a company that has a matching gift program, you can share educational resources about that company’s program.

This is just one example of how the messaging can be tailored to both your nonprofit and the supporter alike. Essentially, you can now employ automated messaging that feels like a conversation for the supporters you’re contacting.

Automated communications have come a long way from the bland, robotic messages that you may have encountered in the past. Now, you can improve your communications using data, reduce variability in the supporter experience, and provide an engaging experience for all. Perhaps most importantly, automation solves the challenge of low staff capacity, meaning you can do more for your mission with the team you already have.

It’s time to embrace automation and innovate your nonprofit’s communications strategy. 

In-Kind Donations: Everything Your Organization Should Know

COVID-19 has thrown a spotlight on the corporate sector, and maintaining high team morale, employee engagement, and positive community relationships have all become major concerns for business leaders. So, in an age when your business is under the magnifying glass of public scrutiny, how can you reach all of these goals without diverting funds from other important projects? 

For many businesses, the answer is in-kind giving. All corporate philanthropy programs, such as matching gifts and volunteer grants, are great ways that your organization can support local charities, positively promote yourself to customers, and boost employee engagement. However, in-kind donations can be an especially cost-effective and simple method to gain extra visibility and secure customer loyalty using your own extra inventory of products and services. 

In fact, the only obstacle standing between many businesses and this incredibly efficient giving type is identifying the right nonprofits and causes at the right time to use your donations. Luckily, we have a solution for this, too. 

If your business is eager to revamp its corporate philanthropy and launch a successful in-kind giving program right off the bat, then you’ve come to the right place. Here’s everything you need to know about in-kind donations, as well as software solutions to help you engage the right nonprofits as quickly and easily as possible: 

• What are In-Kind Donations? 

• Examples of In-Kind Donations

• Benefits of In-Kind Giving

• Tips for Starting an In-Kind Giving Program

• How DonationMatch Can Kickstart Your In-Kind Donation Program

Whether you’re just getting started with an in-kind giving program or you’re struggling to improve your current program’s operations, anyone can benefit from these essential in-kind best practices and tools. Ready to revamp your own corporate philanthropy campaigns through in-kind giving? Let’s dive in with a quick overview.

What are In-Kind Donations?

In-kind donations are just non-cash contributions. That’s it, plain and simple. This typically includes goods such as your own company’s products, gift certificates, supplies, or equipment. 

While terms like “non-monetary corporate social responsibility” may make in-kind donations seem like an overly-complicated addition to your corporate giving programs, this giving type is surprisingly simple.

When you know what nonprofits in your community are looking for, you can simply provide them with that resource so that they can continue advancing their mission. Many restaurants donate dining gift certificates, theme parks often donate admission tickets, and donated food and beverages are popular either served at events or in swag bags.

If your business doesn’t have material inventory or products to donate, don’t fret—your support doesn’t even need to be physical. Services like volunteer time or pro-bono work also fall under the in-kind umbrella. 

More often than not, the organizations that receive in-kind donations will be nonprofits. But the sources for these gifts can include anyone and anything from individuals to businesses to associations and major organizations like colleges and universities. 

Essentially, almost anyone can start participating in the in-kind donation process. But your organization can stand out from the crowd in what you choose to donate and how you carry out your own in-kind campaigns.

Examples of In-Kind Donations

 Depending on what your own business has to offer and what local nonprofits need, in-kind donations can take many different forms. We’ve already mentioned a few types of gifts you might encounter, from physical goods to intangible services. However, there are several other common forms of this giving type that you may not have been aware of. 

Here are the most common examples of in-kind contributions that nonprofits are looking for: 

• Goods. Most businesses will offer in-kind contributions in the form of physical goods, such as supplies, equipment, technology, and even software tools. Here at DonationMatch, we often help to facilitate the movement of a companies’ own products, samples, or extra inventory that they may not have room for. This allows companies to expand their corporate philanthropy programs, clear storage space, and truly provide help for a nonprofit in need. 

• Experiences. Experiential donations may include tickets to a concert, sporting events, or exciting activities like bungee jumping or a hot air balloon ride. These initiatives not only provide an opportunity for local causes to host exciting events, but they also engage local supporters and expose potential customers to your brand in a fun and unique way. For example, if you work at a hot air balloon company, you might give a free ride in kind for a nonprofit to sell at their next charity auction. The nonprofit will raise funds and your brand will suddenly reach their entire audience as they bid. 

• Services. If your business isn’t product-based and it wouldn’t align with your brand to offer experiential donations, consider contributing your services in kind instead. Conducting pro-bono work, developing nonprofit brands, designing logos, providing accounting services, and even offering your business’s building as a meeting or event location are all ways that you can participate in the in-kind giving process. 

No matter what kind of business you conduct or what your local missions may need, you can find a way to support charitable causes. If your organization isn’t able to directly contribute its inventory or products to nonprofits in your area, you can rest easy knowing that there are myriad other ways to offer support through in-kind giving.

Benefits of In-Kind Giving

When some people hear the word “corporate philanthropy,” the first thing to come to mind is monetary donations or sponsorships. But before you start writing checks left and right to your local food banks and animal shelters, consider the unique benefits of in-kind donations. 

The in-kind donation process doesn’t just assist nonprofits in need by providing a source of direct goods and services. Both nonprofits and companies alike can benefit from a robust in-kind giving program.

For Businesses

Corporate philanthropy is a long-standing tradition for many organizations. As pillars of their communities, business leaders are expected to not only provide their own valuable services but also give something back to the people who supported them in their journey toward success. 

That said, corporate social responsibility doesn’t just mean that you’re throwing support to other organizations with no benefits in return. Corporate philanthropy, and specifically in-kind giving, can increase your sales, boost employee retention, and save precious revenue for your business.

Consider these key ways in which in-kind donations can directly benefit your own business: 

• Earn positive publicity within the community. A good public image for your business is more than just a source of personal pride. Companies that support local, charitable causes are far more likely to gain the respect and appreciation of not only the nonprofits they’ve helped, but also other businesses and potential customers. 

• Gain greater loyalty from customers. When a customer chooses to support your business, their decision will be backed by more than just whether or not they like what your organization is selling. A Cone Communications corporate social responsibility study found that 87% of customers will choose to purchase a product if a business advocates for a cause they care about. Social good initiatives will allow your business to stand out by standing for causes that your supporters believe in. 

• Engage employees with philanthropy. Boost your employee engagement by involving them in causes and campaigns that matter to them. By providing volunteering and in-kind donation initiatives, your business will show your value beyond simple, corporate interests, and satisfy your employees’ desires to be a part of something bigger and more important than themselves. 

• Earn a tax write-off. On top of all of the other workplace and customer-relation advantages, in-kind giving could also qualify your organization for a tax break. The IRS allows companies to potentially deduct the fair market value of their in-kind contributions on their annual reporting. 

In-kind giving is far more than just a moral responsibility for your company. It provides an engaging, unique, and fulfilling opportunity for your business to cement itself as a benevolent and essential force in your community.

For Nonprofits

It’s not enough for you to understand how in-kind giving can help your own business. After all, there’s an entirely separate side of the donation process beyond just organizing and sending out your gifts: the nonprofit’s perspective. 

When you’re also able to understand how in-kind giving can help nonprofits on the receiving end of your aid, you can build a more accurate and effective strategy to begin launching your charitable community efforts. 

The benefits that nonprofits will encounter from in-kind giving include:

• Accessing goods and services that may have otherwise been too expensive to buy outright. 

• Obtaining items and packages that can be utilized in a silent auction or raffle to raise money.

• Freeing up funds to be reallocated and used for other important initiatives. 

• Enabling product or item-based nonprofit organizations, such as thrift stores, to continue their operations at a higher quality and better serve the community. 

• Gaining access to vital supplies or services immediately, rather than having to wait for monetary donations to come in and then purchasing the necessary supplies.

Don’t forget about your gift recipients in the in-kind donation process! These organizations rely on your contributions to improve their operations, and it’s up to you to provide the right goods, services, and aid that will allow them to take one step closer towards mission success.

Tips for Starting an In-Kind Donation Program

It’s one thing to theoretically weigh the pros and cons of a corporate philanthropy project, but actually launching your own in-kind donation initiative can be intimidating. 

Follow these insightful tips and tricks to carefully manage your own communication, marketing, and event operations and pave the way for program success: 

• Talk to nonprofit partners to determine the types of in-kind donations that are most helpful for them. This ensures that you’ll have the most effective impact on their missions and will maximize the chance that your business will be remembered for creating a positive, memorable experience for your local community. 

• Use an in-kind donation platform to manage your giving program. The right in-kind donation software will both facilitate your operations and offer unique, intuitive solutions to optimize your CSR initiatives. Be on the lookout for an in-kind donation program that allows you to screen in-kind donation requests, track giving statistics, and facilitate introductions to other organizations that fit your desired criteria. 

• Promote your giving opportunities to the wider community. If no one knows about your business’s philanthropic initiatives, did they really happen? Supporting your community and providing aid to a deserving cause is one of your responsibilities as a business leader. However, by not efficiently marketing your giving program, you are missing out on some of the greatest benefits of engaging in corporate giving, such as brand loyalty and positive exposure for your business! 

• Maintain accurate records to be able to write off your contributions on your taxes. Considering the requirements of the IRS and all the hoops your organization may have to jump through, the reporting process for any CRS program can be a pain. That’s what makes it so important to invest in a software that will carefully, automatically track and organize this important data. This will simplify the reporting process later on down the road and cut down your organization’s annual operating costs. 

Confidently dive into your future corporate philanthropy endeavors with these in-kind donation best practices. These CRS fundamentals should guide you in your optimization of the in-kind giving process and ensure that your program is a success from the outset. 

However, if you’re still hesitant on how to make the most of your in-kind contribution efforts, our intuitive software solution has you covered.

How DonationMatch Can Kickstart Your In-Kind Donation Program

There are many corporate social responsibility services on the market, but DonationMatch’s platform is the only dedicated in-kind donation network that will streamline the process and introduce your business to new, targeted opportunities for in-kind giving. 

DonationMatch is a turnkey in-kind donation platform that helps businesses easily manage how products and services are distributed to deserving organizations within their communities. With our donation and marketing solution, your organization can tackle its corporate philanthropy programs with intelligent, data-driven strategies. 

For example, we offer services such as:

• Built-in contact and organization vetting 

• A streamlined application review process 

• Detection and prevention of duplicate requests 

• Automated reminders and messaging with your nonprofit and community partners

• Integrated solutions for e-delivery of barcoded tickets and gift certificates

• Real-time reporting and giving statistics 

• One-on-one support from our team to help your organization thrive 

Our software is made to suit the needs of every business ready to break into the realm of corporate social responsibility. We’ve helped thousands of organizations, both big and small and spanning across every sector of the economy. Take a look at just a few of the generous corporations that we’ve helped in the past: 

• Six Flags North America. From experiential ticket donations to Project 6 and their Give Kids the World Passport program, Six Flags North America has been able to maximize the reach of their renowned Six Flags Friends program with the power of our in-kind matchmaking network.

• The Museum of Contemporary Art in Chicago. Since partnering with DonationMatch, Chicago’s MCA has been able to roll out its Household Membership program with ease. This partnership program with various 501c3 organizations allows the museum to quickly and efficiently share experiential tours and admission opportunities to deserving missions across the state.

• Medieval Times. With DonationMatch as their donation portal, the Medieval Times corporate office enabled each of the company’s ten locations to efficiently accept and fulfill requests from qualified, well-suited nonprofits in each of their North American markets. They have since been able to distribute hundreds of thousands of dollars in ticket donations in a trackable, streamlined manner, making a positive impact in each individual community.

With the help of our specialized in-kind donation solution, these organizations were able to cement themselves in and beyond their communities as changemakers and philanthropic giants. To take your own corporate social responsibility efforts to the next level, reach out to us and begin a free trial of our comprehensive donation platform.

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Additional Resources

Especially now, as COVID-19, the Great Resignation, and our changing corporate culture is throwing attention on company practices, your business must take a moment to reflect on how you can create more robust corporate social responsibility programs. 

In-kind donations provide that solution, and so much more. And with DonationMatch’s intuitive CSR solution, your business can launch its own in-kind giving program with intelligence and insight. Our software is tailor-made to match your business with the best requests, events, and nonprofit organizations to suit your needs, and our dedicated team is here to help you through the corporate philanthropic journey every step of the way.

To learn more about corporate social responsibility, best practices, and different programs and software solutions, visit these resources: 

• Corporate Philanthropy Made Easy. Check out this page to learn more about the most common challenges of corporate social responsibility, how the DonationMatch network can overcome these pitfalls, and different plans that might fight your needs. 

• Top 3 Things Donating Can Do For You and Your Business. How can donations strengthen your business and boost exposure for your brand? Click here to dive further into this topic. 

• GiveBack Programs. Interested in exploring more of DonationMatch’s unique corporate giving services? Check out this article to learn more about the marketing capabilities of our GiveBack program.

Tips for Turning Volunteers Into Donors

Guest post by Amanda Winstead

As a nonprofit organization, your volunteers and donors are your lifeblood. You need them both to keep your organization up and running, and it’s hard to say that one is more important than another. 
But, at the end of the day, your volunteers won’t have anything to do unless your nonprofit is adequately funded. Without donations, things can’t keep running. Unfortunately, it isn’t always easy to ask someone who is already giving their time to open their wallet, too. 

So, how can you convert volunteers into donors without losing them altogether? What can you do to keep them passionate and on board with your cause while reaching into their pockets for even a small donation? Let’s cover a few practical tips that can make a difference with your volunteers, and keep your organization growing. 

Create a Positive Experience

If someone is already volunteering with your organization, they’re probably passionate about your cause. They might even like the people they get to work alongside. Or, maybe they’re doing it for personal reasons. 

Whatever the case, you should have a goal of attracting recurring volunteers. Whether you have events that need attention or you need people to cover your daily operations, volunteers are more likely to keep coming back – and more likely to donate money – if they have a positive experience each time they’re working. Some ideas to keep your volunteers coming back include: 

• Learning more about their motives

• Explaining your expectations clearly

• Making sure their experience isn’t burdensome

• Making it fun for them

• Showing them your appreciation

It’s also a good idea to promote a rewarding experience. Your volunteers already know who you are and what you do. But, if you can make it clear to them how much their work is impacting the community, not only will they come back repeatedly, but they’ll be more willing to go one step further and donate to the cause. Everyone feels good about serving the community, especially in times of need, so don’t be afraid to talk to your recurring volunteers about how far their donations would go. 

Build Lasting Relationships

No matter the size of your organization, it’s a good idea to build positive professional relationships with your volunteers. If they feel like they’re just coming in to work for a few hours and they aren’t getting to know anyone, they’re less likely to enjoy the full experience. They might even start to lose the passion they have for your group. 

Having steady relationships with your volunteers is one of the best ways to convert them to donors. Not only that, but it’s one of the best ways to make sure they continue donating, time after time. 

You can build better relationships by trying some of the following: 

• Making sure they understand their connection to your organization

• Setting them up for success

• Keeping your promises

• Promoting their positions

With these positive relationships, your volunteers will do so much more than donate their time and money. They’re also more likely to talk to others about your organization. It’s not just about the experience, it’s about the people. If you can showcase the importance of relationships and gratitude in your organization, your volunteers will spread the word for you, which can help to increase donations almost immediately. 

Offer Your Support

The last thing you want is for your volunteers to burn out. They might love what they’re doing, but if you ask too much of them without the right amount of support, they can feel overwhelmed and want to take a step back. 

Your volunteers support your nonprofit. You need to support them in return. Check in with them as often as possible, and offer your assistance however you can. That’s especially important on “event” days when things might feel busy and overwhelming. Equip them with resources that can make their volunteer experience(s) easier and more meaningful. 

Finally, celebrate them! Host occasional events that allow your volunteers to have fun and be acknowledged. Or, send them periodic gifts of gratitude. Even small “thank yous” can go a long way for someone who is donating their time. Feeling that kind of recognition and gratitude from your organization may encourage them to do more. 

With 1.5 million nonprofit organizations in the U.S., not everyone can donate their time and/or money to every cause. That’s why it’s so important to find ways you can turn your volunteers into donors. 

The people who volunteer for your organization obviously already have an interest. If you’re trying to convert them into donors, explain to them how and where their money would be used, and why the funds are needed. Being open, honest, and continuing to show gratitude to the people who keep your organization running will help more volunteers be more charitable with their money, as well as their time. 

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About the Author

Amanda Winstead is a writer from the Portland area with a background in communications and a passion for telling stories. Along with writing she enjoys traveling, reading, working out, and going to concerts. If you want to follow her writing journey, or even just say hi you can find her on Twitter.

6 Best Practices for Asking Board Members for Contributions

Guest post by Amy Eisenstein, ACFRE, CEO & Co-Founder of the Capital Campaign Toolkit

When someone joins your nonprofit’s board of directors, they may be expected to give annual monetary donations to the organization in addition to fulfilling their governance duties. 

Securing those gifts can be a source of stress for nonprofit teams, especially because potential strategies can vary widely. Here are a few examples: 

• Including the ask in onboarding agreements when they first join

• Having a “give-get” policy that asks every board member to be responsible for a specific amount of money, whether they give it themselves or get it from other sources

• Asking board members to give a gift of an amount that is personally significant to them 

• Asking for personal gifts of an unspecified amount 

• Discussing board giving in person with each board member

• Tucking a pledge form in the board packet at the appropriate time of year and encouraging members to return them by a certain date

With so many approaches, you might feel like having a specific strategy doesn’t make much difference. However, through our work on many capital campaigns, we have learned that how you approach your board about their annual gifts makes a vast difference in how much board members give and how they feel about their giving.

Let’s explore six best practices for refining your own approach to board member annual giving. 

1. Create a small ad hoc committee on board giving.

The board giving process shouldn’t be driven by staff. That’s a bit awkward for your board members. And unless you have an enlightened board chair who really understands fundraising and how to do it effectively, you shouldn’t just turn the responsibility over to them. 

Instead, your executive director or development director should ask three or four board members to serve on an ad hoc committee to develop and implement a board giving plan. 

The ad hoc group should meet three times over one or two months. The meetings might be organized as follows: 

• Meeting 1: Discuss and agree on board giving goals and the process for presenting the giving process to the board. 

• Meeting 2: Review progress toward the goal and follow up with board members about their gifts. 

• Meeting 3: Review the results of the solicitation process and develop a plan for thanking board members and conducting ongoing stewardship. 

2. Determine a collective board giving goal.

Having a dollar goal for board giving helps board members make informed decisions about what their gifts might be. But because most board members have little or no idea of the capacity of their fellow board members, you must be clear and intentional about the process of determining that goal.

We recommend having your ad hoc committee review the list of board members and, using available information about each person’s giving history and other indicators of giving ability, determine a possible high and low for each member. 

Add those numbers up and you will have a collective giving range for your board. Present those results to the board and invite a discussion to determine a board giving goal.

3. Discuss board giving at a board meeting.

Designate a portion of your next board meeting to discuss board giving to the campaign. Topics to be discussed should include: 

• Relationship of the campaign goal and board giving to annual giving and larger strategic priorities

• Collective board giving goal

• Rate of board participation, with 100% being the ideal

• The process of soliciting gifts

• Deadline for when all gifts should be in

Your goal with these discussions is to get your board thinking about giving collectively. This helps your board members create a sense of accountability among the group and sets everyone up to motivate and encourage one another to meet the collective goal. 

4. Solicit each board member in person.

Following the meeting, members of your ad hoc committee should meet with each board member to make a case for annual giving and discuss the board member’s gift. Each person should be asked to consider a specific amount or a range that is personally meaningful to them. Remember: 100% participation in board giving is ultimately the most important part of the board campaign, even if you have to adjust your goal along the way. 

If it is indeed your policy that each board member has a responsibility to give to (or get for) your organization, be sure to have a plan of action for board members who do not participate in any way. Ideally, this expectation would be set before they join so it is not a surprise.

5. Report on progress toward the board giving goal.

The board chair or chair of the ad hoc committee should track the board giving process and gently nudge everyone to make their contributions before the scheduled deadline. 

They should also send progress updates to the board and push for a timely conclusion to the giving process. Frequent updates will keep the giving goal top of mind and reinforce the important responsibility each board member has to contribute a gift.

6. Celebrate reaching the board giving goal.

Once the board has reached its collective goal and has 100% participation, take the opportunity to celebrate your success! 

For some organizations, that means popping a couple of bottles of champagne after the next board meeting. For others, it might mean something more official. 

You should also recognize the people who served on the ad hoc committee and worked on the board giving process. For example, consider creating special recognition strategies for various roles people played during the board campaign.

Setting the Stage for Success

The way you solicit your board members can set your campaign up for success. If you take it seriously and leverage effective fundraising best practices like the ones above, you can lay the foundation for success for your annual campaign and future fundraising endeavors. 

For instance, when your board feels that giving is important, and when they are solicited in a way that respects them and their generosity, they will feel less anxious about reaching out to your supporters during other campaigns. This will make success with future fundraising initiatives much more feasible. 

If you’re on the board of an organization that is considering a capital campaign, there are a few things you should know. Get Capital Campaign Pro’s free guide for board members!

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Board Member’s Guide to Capital Campaign Fundraising

If you’re on the board of an organization that’s considering a capital campaign, there are things you need to know. This guide will help you understand your own role, and that of the entire board, during a campaign. Download this free guide today!

Amy Eisenstein, ACFRE, and Andrea Kihlstedt are co-founders of the Capital Campaign Toolkit, a virtual support system for nonprofit leaders running successful campaigns. The Toolkit provides all the tools, templates, and guidance you need — without breaking the bank.

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About the Author:

Amy Eisenstein | CEO & CO-FOUNDER

Amy Eisenstein, ACFRE, is CEO & Co-Founder of the Capital Campaign Toolkit. She is a veteran fundraising consultant. With over 20 years of experience in the nonprofit sector, she’s published a number of books, including Major Gift Fundraising for Small Shops. Amy is also an in-demand keynote speaker and an engaging board retreat trainer and facilitator.

5 Ideas to Launch Your Next Data-Driven Marketing Campaign

Guest post by Gabrielle Perham, Director of Marketing for AccuData Integrated Marketing

As a nonprofit fundraising professional, you know the importance of understanding your target audience. By tuning in to what makes donors tick, you can craft outreach materials that are more likely to resonate with them. 

One of the most effective ways to get to know donors on a deeper level is to dive into your data. With data marketing, you can take a categorical approach to donor management and stewardship using information that you know to be true, rather than guesses.

There are a few different ways to put your donor data research into practice to launch a successful marketing campaign. Use these tips to kickstart your next campaign:

1. Take a more strategic approach to your email campaigns. 

2. Give digital targeting a try.

3. Revamp your direct mail strategy. 

4. Refine your supporter segmentation practices.

5. Put your prospect research to use.

Data marketing opens up untapped opportunities for your organization to explore. It allows you to tailor your marketing materials to align with your audience’s interests and preferences. Whether you’re looking to raise awareness of your nonprofit or launch a full-fledged fundraising campaign, these tips will help you make the most of your donor data.

1. Take a more strategic approach to your email campaigns. 

Email marketing has quickly advanced in the past several years. A basic email strategy will no longer cut it. If your email approach is generic or lackluster, your supporters will send your messages right to the trash. In addition, upcoming changes related to consumer privacy mean that emails will have a harder time making it to the inbox.

Whether you’re looking to promote an upcoming fundraising event or initiative, engage donors in your monthly giving program, or promote another aspect of your fundraising efforts, you can kick off your campaign with an acquisition email marketing strategy. 

Acquisition email marketing is the process of engaging new supporters using email communications. If you’re interested in kickstarting your next data-driven marketing initiative with an email acquisition campaign, there are a few best practices to keep in mind: 

• Craft your ideal audience with the help of a data marketing firm. You can build your organization’s database by partnering with a dedicated data marketing provider. These specialists help organizations craft their ideal target audience using prospect lists. Prospect lists are lists of potential supporters who are most likely to be interested in your cause. 

• Send prompt welcome emails to prospects. Whenever a supporter signs up for your email list, send a warm welcome email thanking them for their support. 

• Re-engage lapsed audience members. If certain prospects open your emails less frequently, reach out to them with a targeted message to win back their support. For example, you might send an email along the lines of “We missed you! Here’s what’s been happening since we last talked.” 

With a strategic email approach, you can capture your audience members’ attention, especially your millennial audience. Don’t underestimate the power of email marketing  — you can use this channel to speak directly to supporters and maintain their support. 

2. Give digital targeting a try.

Did you know you could send digital advertising to individuals based on their home address? IP Targeting/Addressable Geofencing is the process of identifying and marketing to audience members based on their physical location. 

According to AccuData’s guide to IP targeting, this process is an effective way to put your data research to use. You can pinpoint your organization's exact target audience based on their physical location and get your marketing materials directly in the palms of their hands.

You can use IP Targeting/Addressable Geofencing to access supporters on a certain network. Let’s say you’re looking to ramp up your marketing campaign ahead of your nonprofit’s next local donation drive, and you’re specifically seeking donations from college-aged students. Using these digital targeting techniques, you can market your event to individuals who access the network of a local college. You can do this by sending digital advertisements to all devices on the university’s network.

When conducting digital targeting strategies, keep these best practices in mind:

1. Don’t over-target. Keep your specifications for the audience members you are targeting to just two or three parameters. This ensures that you’re casting a wide enough net and not excluding valuable supporters.

2. Use A/B testing to refine your ads. A/B testing is the process of creating two ad campaigns with slight variations and determining which receives more engagement. In the context of digital targeting, you can change your audience parameters to determine which segments engage the most with your outreach.

3. Deploy effective ad copy. Even if you reach your target audience, they won’t respond to your messaging if it’s not compelling. Ensure your ad copy is streamlined and inspirational. You can also use A/B testing to create different versions of your ads and assess which is more effective.

This is another area where working with a data marketing firm can provide a boost to your strategy. Digital targeting is a more advanced marketing strategy, but it can be highly effective for reaching your desired audience. 

3. Revamp your direct mail strategy. 

Although it might seem old-school, direct mail is still a highly effective marketing channel for nonprofits. Direct outreach campaigns that combine direct mail with at least one digital media element have a 118% increase in response rate. 

Using your supporter data, you can revamp your direct mail strategy to only reach out to those who are most likely to engage with your content. This can decrease direct mail expenses significantly, as you won’t be sending mailers to individuals who are unlikely to respond.

For your next data-driven marketing campaign, pursue a combination of a housefile campaign and a prospect campaign:

• A housefile campaign involves sending direct mail to addresses already in your database. Marketing experts recommend starting your direct mail campaign with a housefile effort because it has a higher chance of success. You can reinforce and grow relationships with your existing audience. 

• A prospecting campaign involves sending mail to audience members who don’t have a previous relationship with your nonprofit. The objective of prospecting campaigns is to establish contact with those who are most likely to support your organization. This allows you to add more supporters’ information to your in-house database, growing your audience. 

Use your digital marketing efforts to supplement and support your direct mail campaign and vice versa. For instance, include a QR code on your direct mail materials that sends audience members to your website or online giving page. 

Additionally, you should use uniform branding across all marketing materials to promote cohesion and unity with your marketing strategy. Doing so helps you foster greater brand recognition and awareness. 

4. Refine your supporter segmentation practices.

Donor segmentation is the process of grouping supporters based on shared characteristics. 

The point of supporter segmentation is breaking your audience into smaller categories and marketing to them based on their unique circumstances or preferences. 

There are plenty of different options for grouping your donors based on your nonprofit’s marketing and fundraising goals. You may choose to group them based on their:

• Engagement type: You may have audience members who are donors, volunteers, advocates, or peer-to-peer fundraisers. Grouping supporters by engagement type allows you to send messages with information that each group is more likely to be interested in. 

• Demographics: Depending on your marketing goals, it may be helpful to divide audience members into categories based on demographics, such as age, gender, or location. 

• Communication preferences: You can segment supporters based on their preferred communication platforms and frequency. You may find some supporters prefer digital platforms, while others favor direct mail or phone outreach. 

• Engagement frequency: You likely have donors who give regularly, such as your monthly donors, along with those who give more infrequently. Most nonprofits also have plenty of lapsed donors who have gone longer without giving. Segmenting supporters based on how frequently you hear from them allows you to craft different stewardship strategies for each level of engagement. 

You can tie advanced supporter segmentation strategies into your next fundraising or marketing campaign. These techniques can be used on multiple platforms, from your direct mail outreach to your email marketing campaigns. 

5. Put your prospect research to use.

Prospect research is the process of identifying audience members who may or may not have a relationship with your organization yet, but who exhibit characteristics that indicate they would be willing and able to donate to your cause. 

Approaching your next data-driven marketing campaign through a prospect research lens offers many benefits. You can use prospect research to identify opportunities for:

• In-kind donations: Using prospect research, you can identify audience members who work for companies that offer in-kind donations or other forms of corporate giving. Then, you can specifically reach out to these individuals and encourage them to donate or participate. Your organization will benefit from greater access to necessary goods or services that support your mission. 

• Matching gifts: Similarly, prospect research can reveal supporters who work for companies that offer matching gifts. According to Double the Donation’s corporate matching gifts guide, these programs involve companies pledging to match donations that their employees make to eligible nonprofits. Matching gifts allow your supporters to maximize the impact of their single donations and provide your organization with a funding boost. You can reach out to individuals who have made match-eligible donations and encourage them to begin the gift match process.

• Major gifts: You can also use prospect research to identify audience members with a greater level of wealth and a high affinity for your organization. Search for individuals who exhibit certain wealth indicators such as stock ownership, real estate holdings, or a higher-up job title. Then, craft a dedicated strategy specifically for reaching out to and stewarding major donors. 

When you conduct your data-driven marketing campaigns through the lens of prospect research, you can save your organization time and money because you’re sending marketing materials to those who are actually interested and willing to give. 

By focusing on wealthier prospects or those whose companies offer corporate philanthropy programs, you can refine your marketing outreach efforts even more and create messages that resonate with these specific audiences. 

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There are plenty of ways to incorporate data-driven marketing strategies into your next campaign, from firing up your email approach to segmenting your audience for more targeted outreach. Consider your organization’s goals and needs to choose the best idea for launching your next campaign. A combination of these strategies will provide your organization with the reach it needs to market your cause effectively. Good luck!

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About the Author:

Gabrielle Perham, MBA, Director of Marketing

Gabrielle is the Director of Marketing for AccuData Integrated Marketing. She joined the organization in 2017 and possesses more than 15 years of experience in strategic marketing, branding, communications, and digital marketing. She earned a B.S. in Marketing and an M.B.A in Marketing Management from the University of Tampa.

6 Nonprofit Tax Tips for Reporting In-Kind Donations

Guest post by Mathew Tooker at File990

If you’re looking for charity fundraising strategies with substantial untapped potential, consider in-kind donations. An in-kind donation is characterized as any non-monetary gift provided to a nonprofit organization. These types of gifts offer significant benefits to nonprofits, yet they’re often overlooked when it comes to soliciting donations, creating detailed fundraising plans, and mastering nonprofit finances.

Picture this: you run a nonprofit animal shelter in your community and a local business owner tells you they want to donate pet food and a gift certificate to their store  to your organization’s upcoming fundraising event. That’s great! But now you have some questions: Can they write off their donation as a tax deductible? How do you record the gift in your accounting and bookkeeping systems? Must you report the in-kind contribution in your annual Form 990?

Determining how in-kind donations play into your overall nonprofit taxes can be a challenge—which is why we created this guide. In order to keep your organization above board, it’s important that you consider the following in-kind donation tax tips:

1. Understand what is considered an in-kind donation.

2. Determine whether you’re required to acknowledge in-kind gifts.

3. Keep up with new regulations.

4. Calculate the donation’s fair market value.

5. Track and record in-kind donations throughout the year.

6. E-file your Form 990 with an IRS-authorized e-filer.

Are you ready to take a crash course on ensuring accurate nonprofit finances when it comes to in-kind donations, and uncover how to record these gifts in your nonprofit tax returns? Let’s get started.

1. Understand what is considered an in-kind donation.

It’s nearly impossible to report your in-kind gifts accurately if you’re unsure of what is actually considered an in-kind donation. The basic definition of in-kind gifts can even be a bit misleading (i.e. donations of time, goods, or services instead of money). That’s because, unfortunately, not all donations of time, or volunteerism, count as in-kind contributions. 

For example, general volunteer hours (such as setting up for an event or checking in guests) do not count as in-kind gifts, while individuals volunteering more specialized services (such as accounting, marketing, or catering) do.

On the other hand, product donations and other goods might include auction baskets, event swag, tickets to a theme park or play, clothing, food, supplies, equipment, and more. Gifts of goods like these are also considered in-kind donations, and should be reported as such.

Finally, in-kind donations can also be intangible goods as well as items loaned to nonprofits. In this case,  gifts like free or discounted advertising space, gift certificates redeemable for services, or use of an event venue may be considered in-kind gifts.

2. Determine whether you’re required to acknowledge in-kind gifts.

One of the first steps in understanding how to record and communicate your in-kind gifts is determining whether you have to acknowledge and provide donor tax receipts for these types of gifts. Whether you’re required to report in-kind donations can depend on a number of factors, including:

• The state from which your organization is based

• If you are subject to an external audit

• Requirements from lenders, grantors, or other key stakeholders

• The value of the in-kind donation in question

According to GAAP guidelines, the IRS requires tax receipts be provided for gifts of $250 or more. When it comes to in-kind donations, you don't have to value the gift yourself; just provide the receipt with the description of the donation and other basic information.

Even if you determine that your organization is not required to acknowledge these types of non-monetary donations, it’s a good idea to do so anyway. Effectively communicating your appreciation to donors allows them to better understand their impact and increase the likelihood of them giving time and time again.

This also means you’ll have detailed records of all in-kind donations for streamlined and improved ongoing financial management.

3. Keep up with new regulations.

Nonprofit fundraising and tax reporting each come with their own unique set of compliance requirements that can be difficult to keep track of. And unfortunately, these regulations are constantly changing as well to provide increased levels of transparency and accountability for charitable organizations to their stakeholders.

For example, the Taxpayer First Act signed into law in 2019 requires nonprofits to file their tax returns online rather than send a paper copy in the mail. While many organizations have already begun e-filing their taxes, most were not required to file electronically until December 15, 2020. Since then, there has been a transition period ending on July 1, 2021, effectively requiring all Form 990s (including Form 990-N and Form 990 EZ) to be filed electronically going forward.

On the other hand, regulations pertaining to gifts in-kind in particular are changing as well, including with new legislations across a number of states. For example, new rules in key states like California require nonprofit organizations to report in-kind donations where they were previously not required to do so.

That being said, it's a good idea to keep up with new and relevant tax regulations to ensure your organization continues to stay above board. Just because you are not required to record your gifts in-kind one year does not mean you'll be free from the same requirement the following year as well. Stay up to date with nonprofit news or consult a financial expert to determine how your organization will be affected by changing guidelines.

4. Calculate the donation’s fair market value.

Now you’ve determined whether you’ll need to report your organization’s in-kind donations in your yearly tax returns. But how? It’s not so cut and dry as with monetary donations that come with the financial value attached.

According to the FASB, or the Financial Accounting Standards Board, you must start by determining the donation’s fair market value (or FMV). This is defined as, “The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” In other words, it’s what the donation is worth in dollars.

Sometimes this is simple to calculate. For example, a brand new computer donated by a local tech retailer is worth the amount that would have been listed on its price tag should you have purchased it yourself. Additionally, a lawyer’s time donated to your organization would be worth their hourly wage multiplied by the amount of hours volunteered.

Determining a donation’s FMV is important for more than just your nonprofit tax return, too. In fact, this detail can be critical for choosing an opening bid for an auction item, creating individual tax receipts for donors, and maintaining detailed and accurate records of your finances. Do your research when receiving gifts in-kind, explore how other organizations credit similar items, and consider what value the donations offer your organization.

5. Track and record in-kind donations throughout the year.

One best practice to keep in mind leading up to tax season is to maintain detailed and accurate reports of donations throughout the year. This goes for both monetary gifts and for in-kind donations as well. This way, you won't have to worry about scrambling at the last minute to get your records in order prior to your Form 990 deadline.

After all, you’ll want to get started on your nonprofit tax return as early as possible. And having the information you need readily available can make a big difference—especially when it comes to choosing the right tax form! Most organizations determine the version they file based on gross annual receipts. Because your in-kind gifts count towards your total gross receipts, they can play a significant role in ensuring your tax returns are filed completely and precisely. 

In fact, this File990 resource on the 990-N vs. 990 EZ takes a closer look at the differences between the two abridged versions of a nonprofit tax return and how to determine which form you need. 

6. E-file your Form 990 with an IRS-authorized e-filer.

As previously mentioned, organizations are now required to file their tax returns online. Not only is this a new regulation put in place by the IRS to streamline the entire tax process as a whole, it also makes preparing and filing your annual Form 990 simpler than ever before. Plus, you can work with an authorized e-filing service for additional assistance!

When choosing your service, be sure to consult this list of approved Modernized e-File (or MeF) Providers from the IRS. This way, you know your organization’s financial information is in the right hands.

Re:Charity’s guide to Form 990 software also explores a few suggested solutions as well as an overview of why the right software is important. Whether your organization is e-filing for the first time, reporting a substantial amount of in-kind donations, or are affected by the constantly changing financial regulations, a certified tax expert can make a big difference and guide your nonprofit team through the process.

All in all, effectively recording, tracking, and reporting in-kind gifts to your organization doesn’t have to be difficult for your nonprofit. 

When you understand the nuances of these non-traditional donations and have the tools you need to record and track them, as well as ultimately submit your organization’s annual tax return, you’ll set your nonprofit up for better organized finances and overall success. Good luck!

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About the Author:

Mathew Tooker is an expert in sales forecasting, analytics, goal-setting, client growth, and business development. With experience serving the Greek life community, nonprofits, and other member-based associations, Mathew is dedicated to providing tremendous value to his clients. 

When he’s not moving organizations forward, you can find him on the golf course, spending time with his two dogs, Reagan and Teddy, running marathons, and watching the Atlanta Braves. He’s also a graduate of Auburn University and a part-time MBA student at Florida State University.

Leveraging Data to Support Donor Retention: 6 Takeaways

Guest Post by Jay Love, Co-Founder and current Chief Relationship Officer at Bloomerang

As a nonprofit professional, there are a few ways that you can leverage data to support your organization’s retention efforts. These strategies fall under two primary umbrellas: how you’ll use donor data and how you’ll use organizational data. 

Donor data is all about relationship-building. When you use the information you know about your supporters, you can develop connections with them. You can personalize your outreach to each supporter, appealing directly to their needs and desires to convince them to give and give again. 

Organizational data can help identify gaps in your nonprofit’s strategy. If supporters are leaving for specific reasons, you can strategically address those issues and fill the gaps. This is an internal view of your nonprofit that can give you ideas on how you can streamline your strategies to better reach your goals. 

In this guide, we’ll explore each of these types of data and various strategies for how your organization can leverage data to enhance your donor retention. 

Donor retention is important to nonprofit fundraising strategies and is the key to unlocking additional revenue for organizations. As Bloomerang’s retention guide explains, “Nonprofits with a low donor retention rate need to continually acquire new donors or larger gifts to keep up.” Meanwhile, high retention rates lead to lower acquisition costs and higher gift amounts. 

Let’s dive deeper into the types of data available to nonprofit organizations and how they can help improve your retention rate. 

Donor Data

In your nonprofit’s donor database, you should actively collect data about each of your supporters, organize it in individualized donor profiles, and leverage it to form personalized connections with your supporters. 

Here are some strategies that we recommend employing when it comes to your organization’s use of donor data: 

Collect donor contact information

Contact information is the most basic data that nonprofits need to collect from their donors. Without this data, it’s next to impossible to reach out to supporters and continue engaging them in the future.

As a nonprofit professional, you know the importance of collecting supporter contact information. But keep in mind that you might need to collect more than just your supporters’ email addresses to get in touch with them. In fact, we recommend trying to get in touch using several different platforms, including: 

• Email. Email is often the backbone of nonprofit communications strategies, so you will need to leverage this platform to reach your supporters. 

• Phone calls. Bloomerang’s study shows that donors who did not receive a phone call after their first donation were retained at around a 33% rate. Meanwhile, those who received a single phone call were retained at 41% and those who received more than one were retained at 58%. 

• Social media. Ask your supporters if they’ll opt into messaging on Facebook or other platforms, so that you can take one-on-one conversations onto these social networks. 

• Direct mail. Physical letters pair well with digital strategies, increasing brand awareness and creating a more memorable experience for your supporters. 

When you reach out via these various marketing platforms, you can invite supporters to further engage with you in person as well. Don’t forget that you don’t only have to communicate at a distance. Invite supporters to meetings or to attend events so that you can have face-to-face conversations with them, especially with your major supporters. 

Segment your supporters

Some of the data you’ll receive about your supporters will relate specifically to their interests, values, and engagement with your organization. From this data, you can segment your supporters to create a more relevant experience for them in conversation with your organization. 

For instance, you might decide to segment your supporters based on their past engagement with your organization, such as separate segments for donors versus volunteers. Let’s consider the following examples of outreach to each of these groups. We’ll use the example of encouraging supporters to research their eligibility for corporate philanthropy programs: 

Dear Lizzy, 

Thank you so much for your continued support of the Build-a-Home organization. Your contribution of time and energy spent building houses has helped three new families find a place to live. 

But did you know that your time could make an even greater difference for these families? If you’re eligible for a volunteer grant, your employer might offer a financial contribution to the mission without requiring anything more from you! Click here to research your eligibility and to grow your impact. 

As you can see, this type of template is well designed for volunteers, but would not be an impactful message for your donors to see. Meanwhile, you might send your donors a different type of message, such as the one below: 

Dear Timmy, 

Thank you so much for your continued support of the Build-a-Home organization. Your contribution of $100 helped obtain the piping and supplies to install running water in two homes, providing this valuable resource for the families who just moved in. 

But did you know that your gift could make an even greater difference for these families? If you’re eligible for a matched gift, your employer might offer another financial contribution to the mission in response to your generous gift. Click here to check your eligibility for these programs and grow your impact. 

As you can see, segmentation creates a more relevant outreach strategy to connect with nonprofit supporters. 

Many organizations make the mistake of trying to lump together their various segments. We refer to this as “seglumping” when you might address a group of supporters as such: 

Whether you recently gave money, volunteered, or attended one of our events, thank you!

Compare this statement to those above and put yourself in your supporters’ shoes. Which would make you feel more welcomed and acknowledged by your organization? Use the data that you’ve collected about your supporters and leverage it for differentiating your supporters and making them feel unique, not “seglumping” them together. 

Leverage personalized engagement data

Segmenting your supporters is one way to make messages resonate due to relevance. The other way to make them compelling for your audience is by personalizing supporter messages as much as possible. 

Use the personal data you collect about your supporters to show them that they’re not just one member in a crowd—they’re a unique and special supporter who deserves your individualized attention. For example, when you craft a message, you might decide to include information such as: 

• The supporter’s preferred name

• The last campaign they contributed to

• The most recent event they attended

• An interest you know they have related to your mission

• The impact of their most recent gift

• The last advocacy campaign they participated in

Much of this information can be automated to be included on your communication templates. However, be careful when you automate this information. The last thing you want is for the automation to malfunction so that your supporters receive a message with the salutation “Dear %%valued supporter%%.” This can actually harm your relationships more than help them. 

Be sure you’ve built out your marketing strategy manually and optimized the process without automation before adding this valuable resource into your strategy. 

Organizational Data

As we mentioned, you can leverage individual donor data to build individual relationships with your supporters. Organizational data can be used for a slightly different purpose. 

When you collect organization-wide data from your various campaigns and interactions, you can determine what internal strategies you should employ to appeal to your supporter base as a whole. 

One of the great opportunities that accompanies organizational data is that you can determine the reasons why supporters stop giving to your organization and address those reasons. Bloomerang’s donor appreciation guide provides the following graphic showing the industry-wide reasons that supporters might stop giving to organizations like yours: 

By tracking your own campaign and marketing metrics, you can compare your organization to these industry-wide metrics, determining where your strategies are weakest. Then, you can address those weaknesses, creating a stronger, more holistic outreach approach. 

We recommend reviewing metrics such as your campaign success rate, donor lifetime value, and average engagement rate to start.

Campaign Success Rates

Which of your nonprofit’s campaigns produce the most revenue for your organization? Is it your annual auction? Your peer-to-peer campaign? Your Giving Day celebration? Year-end fundraising?

By tracking the revenue from each of your fundraising campaigns, you can determine which ones are the most impactful for your organization. From here, you can: 

1. Improve your top-performing campaigns. These are the campaigns that your supporters are most interested and engaged in. Make sure you look for opportunities to improve those campaigns and maximize that engagement for continuous improvement. For example, if your annual gala brings in the highest ROI for your organization, send out a survey after the event to determine any opportunities for improvement, whether it be the food, auction items, or other elements. 

2. Determine next steps for under-performing campaigns. For some underperforming campaigns, you may determine that it’s not worth it to continue hosting them in the future. For others, you might just need to determine the best ways to improve the campaigns to make them more impactful and effective in the future. For example, you may discover that your website donation page underperforms for mobile visitors and decide to conduct A/B testing for new mobile designs to improve the resource.

When analyzing the success of your various fundraising campaigns, be sure to consider the return on investment of your campaigns in addition to the raw revenue generated. 

By analyzing these metrics, you can determine ways that you can improve your wide-scale strategies, appealing to a large number of your supporters at once. This will create a better experience overall and encourage people to continue coming back to your campaigns. 

Donor Lifetime Value

Your donor lifetime value is the metric that estimates the amount of money donors contribute to your organization over the course of their lifetime as supporters. You can break this down further into different segments at your organization, such as the lifetime value of your major donors, mid-tier supporters, and low-level donors. 

As your donor retention rate increases, this value will grow. For one, the longer a donor gives to your organization, the more they’ll give over time. Plus, when donors give over time, they’re more likely to increase their gift size to your mission. 

Therefore, donor lifetime value is a great way to see the impact retention is having for your organization and to determine if it’s making a difference. 

In a previous section, we reviewed the reasons that supporters stop their contributions. You can address any and all of these to help increase retention and ultimately your lifetime value of supporters. Consider the following stats from that graphic: 

• 8% of donors stopped giving because they didn’t know how the money was used. When you address this issue and explain the direct impact of their donations, supporters are more likely to stick around. 

• 9% of donors stopped giving because they had no memory of supporting. When organizations don’t have adequate follow up after contributions, supporters are likely to forget about them. This leads to more one-time donations and a lower average lifetime value. 

• 13% of donors stopped giving because they were never thanked. Appreciation is important and helps donors feel good about their contributions. Giving supporters the appreciation they deserve helps them feel warm and fuzzy inside, increasing the likelihood they’ll give again. Therefore, simply saying “thank you” can greatly increase their value with your nonprofit.  

As you can see, the average donor lifetime value shows how well you’re keeping supporters around and the importance of encouraging them to continue giving. If you increase retention, but your lifetime value doesn’t increase, there is something amiss in your strategy.

Average Engagement Rate

The path to increasing your donor retention is not to pester them for donations over and over again. Increasing your number of asks could make your supporters feel like they’re ATMs for your nonprofit, actually harming your relationship with them. 

Instead, you should vary the interaction and engagement opportunities you provide for your supporters. Then, track the average engagement rate. When you have a donor database that measures this engagement rate for you, this metric becomes much easier to keep front-of-mind. 

A holistic approach to supporter relationships increases their commitment to your cause and their likelihood to continue contributing. For instance, volunteers on average give 10 times more than other supporters. 

To increase the engagement of your supporters, provide additional opportunities for them to get involved with your organization, such as: 

• Participating in volunteer opportunities

• Taking part in advocacy campaigns

• Attending stewardship events

• Reading educational resources

• Having conversations with your team

• Sharing campaigns on social platforms

• Raising funds for your organization in a P2P campaign

In addition to strengthening the commitment of your supporters, increasing your engagement rate can also boost the number of major gift prospects at your nonprofit. Major prospects are those with high engagement rates and high capacity to give. By increasing one of these factors among your supporters, you’ll increase your prospects for major and mid-tier support as well.

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Data plays a major role at your nonprofit. From understanding donor data and improving relationships to understanding organizational data that can help you improve your strategies, you can use hard metrics to help support your nonprofit’s donor retention efforts and amplify fundraising. 

These takeaways should give you some insight and ideas for how your nonprofit can use the data you have collected. However, before you can do that, you will need to make sure all information you have on hand is well organized, which is where an effective donor database comes into play. 

Make sure you can track both donor and organizational data in your database for a centralized location of information and an easy resource for improving your retention rate. 

About the Author:

Jay Love, Co-Founder and current Chief Relationship Officer at Bloomerang, has served this sector for 33 years and is considered the most well-known senior statesman whose advice is sought constantly.

Prior to Bloomerang, he was the CEO and Co-Founder of eTapestry for 11 years, which at the time was the leading SaaS technology company serving the charity sector. Jay and his team grew the company to more than 10,000 nonprofit clients, charting a decade of record growth.

Jay is a graduate of Butler University with a B.S. in Business Administration. Over the years, he has given more than 2,500 speeches around the world for the charity sector and is often the voice of new technology for fundraisers.

5 Tips For Creating Websites for School-Associated Orgs

Guest post by Murad Bushnaq, Founder and CEO of Morweb

Your website is the face of your school-associated organization, significantly enhancing your ability to connect with potential supporters and engage your audience. Building an effective website can be time-consuming, including researching design tips and gathering analytic information, especially without web design expertise. 

With years of working alongside hundreds of nonprofits, associations, and educational groups, Morweb has built websites for colleges, high schools, and other school-associated organizations. To help you get started building your new website, we’ve put together five key tips specifically for educational organizations.

Your organization should be able to implement each of these tips into your website with a bit of work and research. However, if you find yourself in need of additional advice or help, don’t hesitate to reach out to a professional web design agency that can answer all of your organization’s specific questions about your website. 

1. Find an affordable, intuitive website builder. 

Some website builders are more effective than others for different professional sectors. For example, nonprofits may use a website builder to build donation pages and establish trust with their donors, while schools need a solution that can enhance their educational effort and build smooth communication with all stakeholders including their supporters, parents and students.

While each organization will have its own priorities for what it's website needs to accomplish, here are a few key features to look out for when assessing different school website builders:

• Multimedia support. For many school-related organizations, sharing resources such as educational and how-to videos is a necessity. Assess potential website builders on how well they support these features and how they accommodate the slow loading times that multiple images and videos can cause. For instance, some website builders will automatically compress images, which decreases the file sizes and speeds up page load time.

• Customizable layouts. Your website builder should give your team options. If your team lacks experience designing websites, check out website builders that come with multiple school-specific templates and prioritize ease of use for front-end designers. 

• Mobile optimization. If you’re running a parent-teacher association, your members already have full-time jobs and will likely need to use your website while on the go. Many website builders have mobile options, but be on the lookout for one with automatic mobile optimization that prioritizes usability and fast loading times. 

Additionally, be sure to assess potential website builders’ security. Some platforms perform regular security updates for all websites they support, while others leave it up to individual organizations to protect themselves. If your team is less experienced with cybersecurity or would prefer to limit the number of responsibilities your team takes on, make sure to find a website builder that takes care of security issues for you. 

2. Make your mission clear. 

If you accept donations, recruit volunteers, or encourage website visitors to participate in your organization in any way, you’ll need to make sure your mission is straightforward and easy to find. Remember that your mission isn’t just a summary of your organization, but an external-facing document that new web visitors will want to see. 

A clear mission statement is especially important for fundraisers and donation drives as supporters will want to know how their contributions are making a difference. You can ensure that supporters will find and understand your mission on their first visit to your website by:

• Creating a clear navigation system. Your website will have a few core pages that the majority of visitors will navigate to at some point while browsing your website. For many organizations, these will include donation, services, and about pages. While getting creative with website design can create a new and positive experience for visitors, it’s best not to experiment with your navigation and ensure users will find your mission exactly where they expect to. 

• Branding all additional websites and other online marketing materials. Your website hosts your mission, but all additional websites and platforms (including microsites and social media) should also be branded to your organization and offer a brief explanation of your mission. There are numerous fundraising ideas for schools that your organization can host, and all of them benefit from presenting your mission as clearly as possible. 

• Using images and videos to demonstrate your mission. A plain text description of what your organization is and what your goals are is necessary, but sometimes, videos and images can help supporters visualize your services and role in education more clearly. For example, if your organization helps schools manage after school programs, you might feature photos from past programs you organized. 

Your mission will also be conveyed through other elements on your website outside of your mission statement. For example, the first piece of text on your website will form many visitors’ first impressions of your website, so carefully consider your homepage’s title, subtitle, and descriptive text. 

3. Ensure your website is accessible. 

The best organizations’ websites reach the widest possible audience by implementing accessibility features. Accessible websites improve the user experience and allow visitors using screen readers and other assistive technologies to engage with your content. You can make your website accessible by including the following features:

• Video captions and scripts. Videos are an effective way to break up text and get your organization’s message across in new ways. However, not every user can watch videos or rely on their audio. Subtitling your videos with closed captions or providing a separate script helps these users interact with your video. Similarly, providing captions and alt text for images can also help visitors understand what your images are displaying and why they’re important. 

• Meaningful text hierarchy. Dividing your content up by headers helps keep topics organized and prevents visitors from getting overwhelmed by big blocks of text. Make sure that your headers follow a sequentially descending order with no skips between them (e.g. heading four appearing before heading three). Otherwise, readers using screen readers may get confused since they typically tab through the different headings to understand what content is grouped together on the page.

• Legible text. Text can be unreadable if it’s too small, lacks sufficient color contrast, or is in a hard-to-read font. Use a legible font for the bulk of your page, and save fancy fonts for titles if you decide to use them. Ensure your site builder allows users to resize text up to 200% and adjust the page to greyscale to improve color contrast. 

When performing website maintenance, make sure to include accessibility checks, especially for new content. Doing so will make sure all of your visitors are able to use your page and help you quickly catch any minor slips that might occur during website updates. 

4. Identify key features to include.

Rather than thinking of your website as a collection of pages with text and graphics, try contextualizing it as a place where users accomplish specific tasks. After all, users don’t visit your website to read text; rather, they read text to learn about your organization. 

The features you choose to include on your website will shape your users’ experiences and how they go about completing their tasks. Exactly what those tasks are will vary depending on your organization. CommunityPass’ after-school software page outlines a few common features school-related organizations’ websites should include:

• Registration forms. School-related associations and any participant-based programs need to manage registrants and members, collect fees, and attract new participants. Your registration forms should be as streamlined as possible to encourage additional signups and include time-saving features such as automatic payment reminders and collection.

• Merchandise store. Whether you’re selling event tickets, merchandise for your school’s sports team, or school supplies, an integrated storefront lets your organization quickly update its catalog of items, adjust prices, and collect payments. 

• News page. Regularly updating your website signals to supporters that your organization is healthy and still operating. Plus, maintaining an active posting schedule looks good to search engines, too. Rather than producing brand new content pages every week, your organization can keep a news page or blog that updates supporters on recent events or provides them with new information about your school or organization.

You can monitor how effective these features are at assisting visitors by monitoring analytics. The analytics tools within your website builder will allow you see which pages users are navigating to and how they’re finding your website in the first place, helping you identify things your website is doing well and places where it can improve. 

For example, you might discover that your email campaigns are the most effective way to reach supporters, but that your registration forms are experiencing a higher rate of page abandonment than you prefer. 

5. Create valuable content for your website. 

To attract and engage your website’s audience, you’ll need to create valuable content that provides the insights and details visitors are looking for. This helps you build credibility and also enhances your organization’s visibility on search engines. 

Morweb's guide to nonprofit website builders recommends populating your website with blog posts, interactive content, and other engaging content. Once you’ve developed high-quality content, you can use tools like Google Ads (or, the Google Ad Grant, if your organization is eligible) to get your website in front of as many eyes as possible. 

The Gist

Building a new website requires dedicated time and research. Establish a website maintenance routine early and invest in a robust website building tool to save your team future headaches. 

With the right website builder and a clear, user-friendly design, your website can leave a positive impression, boosting your organization's credibility and trustworthiness.

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About the Author:

Murad Bushnaq is the Founder and CEO of Morweb, a custom-built website design and CMS solution that empowers nonprofits worldwide to achieve their missions through software, design, and strategy. Since its inception in 2014, Murad has acted as CEO & Creative, helping nonprofits amplify their online impact through engaging web designs, intuitive software, and strategic communication. Backed by expertise in both creative and technical services, Morweb is a trusted partner for nonprofits seeking to maximize their online presence.