Considerations for End-of-Year Giving
With the End-of-year giving season upon us, do you feel inundated by giving requests right now? As philanthropists (defined as anyone who loves humanity) this can be overwhelming and lead to shutting off the ‘noise’ that assaults our inboxes and social media channels.
And yet, what is a nonprofit supposed to do to remain viable financially? The current approach to giving has made beggars out of nonprofits. The perceived need to compete for limited resources pushes nonprofits to the point of desperation. This year in particular because giving by all types of donors is down mostly due to economic forces, like high interest rates, a dragging stock market and persistent inflation. This signals nonprofits to push even harder to put their message in front of your eyes.
We see how stressful this time of year is for both donors and the nonprofits they want to support. We are constantly battling the ‘need to compete’. Even within this competitive environment, we believe there are enough resources for all of us AND we need to start directing them differently.
For donors, the overwhelm can be helped by examining one's mindsets and behaviors, as these can be the key to managing the long list of decisions we face during the End-of-Year giving season. Below are some motivations that may undergird one's giving choices, and how they may keep us from giving to make true change.
"I expect my funds to have an impact."
As human beings, we all have a need to be recognized for the contributions we make to our community. Many nonprofits want to work hard to honor their donors, and many do. At Idaho Partners for Good, we work to show donors that giving to nonprofits goes beyond delivering a check. We also educate them on ways they can engage in the work of the nonprofits they love. This kind of partnership allows donors to see first-hand the value of their investment and also receive the recognition they desire. By focusing on partnership rather than simply investment, we can help nonprofits stay focused on their mission to do what they do best.
Pro Tip: Instead of dividing your giving to multiple nonprofits, consider giving larger lump sums to fewer nonprofits. Why? Spreading your charitable dollars across many nonprofits tends to diffuse your impact unless you are a high net-worth donor."I expect to be recognized."
As human beings, we all have a need to be recognized for the contributions we make to our community. Many nonprofits want to work hard to honor their donors, and many do. At Idaho Partners for Good, we work to show donors that giving to nonprofits goes beyond delivering a check. We also educate them on ways they can engage in the work of the nonprofits they love. This kind of partnership allows donors to see first-hand the value of their investment and also receive the recognition they desire. By focusing on partnership rather than simply investment, we can help nonprofits stay focused on their mission to do what they do best.
"I have time and talent but not a lot of money."
If these are the resources you have to invest then let us help you turn them into gold for nonprofits you love. We have multiple ways that you can volunteer
For nonprofits, the overwhelm with the End-of-Year giving season also resides in their leader's mindsets and beliefs. Typically, nonprofits concerns are related to believing that funds are inaccessible or already claimed. Below are some things we typically hear from nonprofits, and some ways for nonprofits to reframe their thinking.
"I can’t collaborate with others because we are tapping the same group of donors."
This idea is the epitomy of the scarcity mindset and upholds the nature of competition that exists between nonprofits. Collaboration is a great way to raise funds during this time of the year, AND by collaborating with others, a nonprofit can avoid wearing out their team by chasing resources that are better utilized collectively.
"Our Board members don’t know how to help raise funds for us."
This is typical and solvable. We have experts who do this for a living. Everything from assessing the funding IQ to helping put together scripts for them to use. But, start from a basic understanding of what a director’s 3 duties are (hint: L-O-C). Read here about the 3 Duties of a Board of Directors."We can’t afford to hire so how do we do this without a development director?"
We have found that AI is an incredible source of support in this arena! With the help of AI, the sector has shifted dramatically, giving small organizations like nonprofits an edge over larger corporations. Much of the behind-the-scenes labor-intensive work, especially grant writing, is now being done effectively by AI. In 2024, we will be offering education and consultation on how to use AI to your benefit. Stay tuned!
We are excited to let you know that we recently and successfully exited our first grantee, the Boise Bicycle Project. We are so proud of this work with them and issued our first "Gold Seal" for their hard work of developing a stronger, healthier, better-equipped nonprofit.
Thank you to all those who invested in this work! These investments included $45,000 of unrestricted grants matched with $45,000+ worth of pro bono consulting. And the impact that was had on the Boise Bicycle Project? Increased funding, decreased staffing turnover, improved work-trade program, analysis of governance policies and procedures, assessment of the organization’s adaptive intelligence, a new strategic plan, new DE+I committee, cleaned up Salesforce database, and an assessment of their current data evaluation efforts. These are the types of results that position a nonprofit for future success!
If you care about these kinds of results, we welcome you to support us in this End-of-Year giving season! Your giving supports the education and support that helps nonprofits like the Boise Bicycle Project.
There are ways to help nonprofits that go beyond End-of-Year giving. Here are some things to consider.
Donors and directors, please help the nonprofits you care about figure out how to diversify their revenue streams for long-term sustainability. There’s a lot of volatility in the philanthropic sector and a significant decrease in donor giving this year so figuring out how to monetize what they do best is a good option for most.
Directors on nonprofit boards should ask the question annually, “Is there a better business model we need to explore, like merging with another nonprofit with a similar mission?"
Donors who want more impact should join Idaho Partners for Good because we will help you maximize the impact of your charitable giving.
Nonprofit leaders should consider signing up for our next Transformational Leadership cohort where we help you understand how to position yourself and your nonprofit for long-term success.