Tips for Nonprofits Struggling to Gain their Financial Footing
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As a nonprofit, you’re always looking for ways to get more donations of money and goods, depending on the type of nonprofit. In the wake of COVID-19, you may find yourself on shaky financial footing, between people needing the help of nonprofits and others unable to donate. Without money or goods, your nonprofit can’t help its clients. So how do you get back on sound financial footing? Here are a few tips to get you started.
If you run a small nonprofit in your local area, you might think that a large corporation, such as Apple or Amazon, wouldn’t give you money to help your cause. However, many corporations offer grants to nonprofits of all sizes. Most corporations look for nonprofits that match their ethics and philanthropy goals.
With a little research, you can find a couple of corporations that might provide you with a grant. Many of these corporations have a grant application and review committee so you may need to fill out a grant proposal.
In-Kind Gifts From Corporations and Local Businesses
Sometimes, corporations and local businesses don’t want to hand out cash to nonprofits, but they are still willing to make in-kind donations. For example, say you run a nonprofit that feeds school kids breakfast. You might be able to get Kellogg to donate cereal and local fast food places to donate plastic silverware and napkins.
Each time you receive an in-kind donation, you don’t need to spend your cash on those items. It’s a good idea to create a letter of introduction to present companies when asking for an in-kind donation and make changes to it as needed, based on the business you’re approaching.
Hire a Financial Manager and Tax Attorney
A financial manager can help you make the most of the donations you have. When times are good, they can help you invest to grow your funds. You always want to make sure that you’re filing the correct paperwork and reporting your expenditures properly to keep your nonprofit status with the Internal Revenue Service (IRS). A financial planner can help you make the best decisions with the funds that you have available.
Text Donation Campaign
According to Pew Research, in 2018, 81 percent of American adults had smartphones and 96 percent had a mobile phone of some kind. This means Americans spend a lot of time on their phones, making calls, checking emails, and shopping. It’s an excellent way to solicit donations for your nonprofit. There are two options for text donations:
- Text-to-give: This donation campaign is run through the person’s phone carrier. With a keyword, donation amount, and shortened phone number, the person simply texts your nonprofit a donation, and they pay through their mobile phone carrier.
- Text-to-donate: With a shortened phone number and a keyword, the person texts the keyword and amount. They get a link to set up an account. Account setups only take a few minutes, and the donors only need to do it once. After registering, donors can text the keyword and amount to donate multiple times.
Text campaigns are a great way to raise funds and are usually popular during emergencies, such as following a hurricane or wildfire. Depending on the type of nonprofit you run, this might be a good fit for you.
If you’re running a nonprofit, you’re always looking for new ways to raise funds or donations of products and services. You might find yourself struggling financially after a natural disaster, economic downswing, or global pandemic. There are ways to return your finances to a firm footing. You might be able to raise funds and or in-kind donations through corporations or use a financial planner to help you weather downturns. It’s always a good idea to let technology help you raise funds, such as text donations. With a game plan and hard work, you can get your nonprofit back on firm ground.
At Cavanaugh & Co., we work with nonprofits to help them make smart financial decisions. Contact us today to schedule an appointment.