Muhammad Babangida is a committed philanthropist from Nigeria

Tag: Non-profit

Maintaining Financial Integrity as a Nonprofit

Nonprofits can build flexibility and stability by implementing financial management techniques to improve their financial performance. This resource explains the golden rules for financial management. Nonprofits play a vital role in communities by delivering essential services and building solid relationships with individuals and groups. Their financial activities support programs and volunteers and help shape their organizations’ future. Healthy organizations use financial management techniques to maintain their stability and flexibility.

 

Budget Well

Budgets are significant because they provide financial information to support planning and operations. They are realistic and use clear and sound accountability to achieve their goals.

 

Know the Cost of Your Programs

Sound financial decisions are made based on the information that they gather. Nonprofits should also understand the costs of their programs so that they can make informed decisions regarding their fundraising needs and contract terms.

 

Diversify Your Funding Sources

Although it’s a good idea to diversify your funding sources, it can be very challenging due to the various factors that make a successful move.

 

Monitor Your Cash Flow

One of the most critical factors a nonprofit should consider regarding financial management is its cash flow. A steady flow of money can help them manage their expenses and keep their financial operations running smoothly.

 

Teach Financial Information

Developing financial literacy is also a must for influential leaders. This can be done by encouraging everyone to learn the ins and outs of financial management. The necessary skills can help them make informed decisions and manage their finances.

 

Keep an Emergency Fund

A steady flow of money can help a nonprofit manage its expenses and keep its financial operations running smoothly. A good reserve number can also help a nonprofit respond to unexpected events.

 

Maintain Accountability and Transparency

Due to the increasing number of government agencies and foundations demanding information about how a nonprofit uses its financial resources, many organizations are now adopting transparency as an essential part of their operations.

 

Remain Interdependent

The financial management of a nonprofit is tied to every aspect of its operations, such as planning, evaluation, and governance. Having the necessary skills and resources can help keep the organization running smoothly.

Tips for Growing a Philanthropic Organization: Part 2

This is part two of the discussion on how to grow a philanthropic organization.

 

Demonstrate Your Impact

Building trust is also vital when it comes to establishing a charitable organization. A study by Root Cause revealed that 75 percent of donors ask for information about an organization’s impact before making a financial contribution. This is significantly higher than the 68 percent looking for information about an organization’s overhead costs and 63 percent looking for information about an organization’s social issues.

 

One of the most critical factors you should consider when establishing a charitable organization is making sure that the organization is transparent. This is very important because it lets donors know that the money they give goes directly to the cause. For instance, through the website of DonorsChoose.org, donors can see the exact titles of the books an organization has sent to the classroom. They can also see the thank-you notes that the students write after reading the books.

 

Since the inception of DonorsChoose.org, the organization has been committed to providing transparency and accountability to its donors. This is because they know they can see their impact and make an informed decision when giving.

 

Stick to Basics

Although it may seem like the basics are boring, these things will work when you start a charitable organization. While trying new social media platforms or methods may be tempting, you should not prioritize these things over the organization’s fundraising fundamentals.

 

New tools may be tempting, but they should not be considered a replacement for the organization’s existing resources. Instead, they should be focused on developing a deeper understanding of the relationship between donors and the organization. When you deeply understand the relationship between the organization and its donors, you can make an informed decision regarding investing in new technology.

 

One of the essential factors that you should consider when it comes to establishing a charitable organization is developing a solid direct mail acquisition strategy. Although it may seem daunting, Grow noted that it is crucial to be smart about it. She said that one should be able to understand the market, and the other should compensate for what is beyond their expertise.

 

One of the most critical factors you should consider when establishing a charitable organization is developing a robust direct mail acquisition strategy. This strategy should be able to generate solid leads and grow the relationship with its donors.

Tips for Growing a Philanthropic Organization: Part 1

The goal of a charitable organization is often to get bigger. This makes sense, as the more it can grow, the more it can make a difference. Unfortunately, growing a nonprofit organization can be challenging. 

 

Even though most nonprofit organizations are small, the big organizations have to start somewhere. This is because growth is achievable, especially if you are willing to put in the work required to get the job done. Unfortunately, many factors go into running a successful nonprofit, and we won’t try to solve them here. However, we can help you navigate through these obstacles and give you some ideas on how to grow your organization.

 

Utilize Your Existing Resources

Even the most prominent organizations can operate on a tight budget. However, smaller organizations have more difficulty attracting and retaining the right staff members. One of the most critical factors you should consider when growing a nonprofit is having the proper amount of staff time. Having the proper amount of staff time is also vital to ensure that the organization can reach its goals. 

 

Smile Train, a New York-based organization that provides cleft lip and palate surgery to children in developing countries, uses a model known as a “teach a man to fish” method. This goal is to train local surgeons with a small team from the organization. The organization uses this method to help expand its operations.

 

Stay Mission Focused

There is a fine line between spreading yourself too thin and doing more with less. It may take time to balance doing more with less and ensuring that the organization is focused on its mission. One of the essential factors you should consider when it comes to growing a charitable organization is ensuring that the new initiative or task is in service of the mission.

 

Establish Trust

Many organizations are involved in the charitable world and must maintain their integrity. One of the most critical factors you should consider when it comes to growing a charitable organization is making sure it is transparent. This is very important to ensure the public can see how the organization runs.

 

An increasing number of philanthropists expecting more transparency from their organizations also contributes to the growth of charitable organizations. The younger generation of donors is more likely to donate when the organization has a connection to its mission.

Engaging with Nonprofit Donors

Although every contribution is essential to a nonprofit, recurring donors are the organization’s most valuable asset. They are the ones who give year after year and are typically cheaper to acquire than one-time donors. They also give 42% more annually. Nonprofits can also benefit from the lower cost of acquiring and retaining these types of donors.

Over a lifetime, recurring donors can give more than one-time donors. They are also more likely to give more than they did one year ago. However, this type of giving requires more than just a set strategy and a good website. It involves cultivating a relationship with the donors and making them feel valued.

The concept of donor engagement refers to the interactions between a nonprofit and its donors. It involves developing a strategy that includes the various activities and methods that you use to make sure that the donors feel valued and that they are receiving the best possible service.

Aside from regular donations, having a well-designed and executed donor engagement strategy can also help nonprofits secure in-kind gifts, as well as other support. It can also encourage more giving by sharing your message with potential new donors. Having a good website can also help a nonprofit expand its reach and attract more potential donors.

  1. Utilize Social Media

One of the most frequent actions that a donor takes is interacting with an organization’s social media. Having a good website can also help a nonprofit expand its reach and attract more potential donors. It can also help the organization share information about its programs and services.

  1. Make Interesting Multimedia

Instead of writing long emails or Facebook posts about everything that’s happening in the organization, use interactive or video content to help your website visitors engage with your message. Use various forms of media to capture the attention of your audience and make them engage with your content. Doing so can help keep your website visitors coming back to it. One of the most important factors that you should consider when it comes to developing multimedia content for your website is ensuring that it meets accessibility standards. Having a well-designed and executed website can also help boost the donations of your organization.

  1. Be Authentic

Trust and transparency are becoming more important to donors due to the increasing number of questions they have about the messages that are presented to them. For instance, Gen X and millennials have grown up questioning the messages that are presented to them. Having peer testimonials can also help boost the credibility of your message.

  1. Make New Donors Feel Valued

One of the most important factors that you need to consider when it comes to converting one-time donors into recurring supporters is finding a way to make them part of the organization’s long-term strategy. Having a donor stewardship plan can help you develop a strategy that will allow them to follow the donations they make.

A donor stewardship plan can also help you develop a strategy that will allow you to engage with one-time donors in a variety of ways. It can help you identify the types of people who are interested in giving, as well as the times and activities that they can participate in.

Characteristics of the Best Philanthropists

People who are philanthropists are individuals who want to make a positive difference in the lives of others through the donation of their assets and services. They come from various socioeconomic backgrounds, and there are many characteristics that they share.

  1. Desire to Improve Lives

People who are philanthropists show a deep concern for the well-being of others. They do not expect recognition or compensation for their efforts.

  1. Understand Others’ Struggles

Philanthropists are likely to be sensitive to the struggles of others. They are obligated to do what they can to make them better.

  1. Strong Social Awareness

Philanthropists are also open-minded individuals who are aware of their surroundings. They seek to understand the motivations of others in order to improve their lives.

  1. Future-Focused

People who want to make a positive difference in the world tend to look beyond the immediate issues and focus on the long-term goals of improving society. They realize that it is important to address the underlying issues in order to make lasting changes.

  1. Involved in Government

As philanthropists, they are also advocates for political change. They believe that it is important to advocate for social change in order to make it happen. This is because it allows for progress on a broader scale.

  1. Tackle Individual Issues

Instead of supporting organizations, successful philanthropists seek to support specific causes. They first identify the issue they would like to see change in, then look for organizations that can help make it happen. They then use their own resources and those of other groups to find the best solution.

  1. Utilize Business Principles

Philanthropists typically look at their contributions as an investment in society, and they use the money and resources efficiently. Similar to business leaders, successful philanthropists use their networks to promote a cause. They do not exclusively support nonprofit organizations, but they also support for-profit ventures and legislative initiatives.

 

How to Make the Most of Crowdfunding

Many organizations rely on crowdfunding to raise money in today’s economic climate. In the case of organizations like museums and other cultural institutions, crowdsourcing is a viable option that they can use to create an educated and diverse audience and a robust network of financial supporters. How then can they make the most of crowdfunding?

 

Deciding What to Crowdfund

Before going any further, it is essential to understand what they are attempting to get funding for. Depending on the nature of the project and its level of interactivity, several different goals could be established. From an institutional perspective, one could create a foundation for future development or provide a platform for current events.

For an individual project (such as a film), the backing would be used as an element of motivation or perhaps as seed money to get things moving in the right direction. Other objectives, such as those that are more altruistic, might include using crowdfunding to start or bolster nonprofit initiatives or simply bringing in additional funds to support an important cause.

 

Selecting the Right Crowdfunding Platform

There are several different crowdfunding platforms and sites available to use. One option would be to set up and run one’s platform. However, this is often impractical if one attempts to raise capital for an event or project that can occur over a reasonably short period. For that reason, several options are available to help facilitate the project and meet the funding goal. One option would be to partner with a platform that has already built up a large volume of backers and investors. Of course, in some cases, the platform may not have the right features, or it may not have enough of them to meet the required specifications. In that case, it may be better to create a site of one’s own.

Whatever the case may be, it is vital to have a platform to meet the project’s needs. In some cases, this will mean integrating crowdfunding into an existing site or creating a dedicated platform for crowdfunding. Regardless of the potential drawbacks and costs associated with such action, the end goal should be getting as much money through crowdsourcing channels as possible.

 

Identifying Potential Backers

Backers are located once a crowdfunding campaign is launched and the goal is set. There are a variety of methods that they can use to identify backers. One can use a dedicated page for advertising the project by reaching out to various groups and organizations or social media. Another option would be through a site that has been designed exclusively for this purpose.

These sites often require a small fee for the use of the platform. However, getting a single site to handle all needs can be worth it. The site also serves as an excellent way to update backers and keep them engaged throughout the campaign. It is essential that backers are kept informed about the project and provided with opportunities for involvement in both aspects and events related to said project.

Growing Community Engagement For Your Small Business

Just as your business is integral to building a thriving economy for your community, a community is vital to succeeding as a business at all. Community involvement allows businesses to build relationships with their consumer base, increase brand awareness, and further their visibility and outreach. No matter how it’s done, business owners should encourage community members to get involved with their business to build customer loyalty and increase the overall benefits for both the community and the business

 

That being said, it’s not as easy as someone snapping their fingers to create an engaged community, nor can a business expect its community to engage with it at every opportunity presented. Business owners need to put in work if they want their community to actively engage with them and further their presence in the community.

 

One thing many business owners forget is that their community is made up of people. Social media makes it easy to forget that a community is more than accounts on a screen; though beneficial, the human aspect of engagement should never be forgotten. This goes for both the consumer and the employees running the social media accounts: everyone is human, so everyone should be treated as such. Additionally, social media takes away the all-important face-to-face interaction that many clients and businesses need to build a lasting relationship. When possible to meet face-to-face safely, encourage in-person interactions, and take advantage of the human aspect of relationships.

 

Engagement doesn’t all fall onto the business owner, however. Employees are just as vital in creating community engagement and connecting with others, so they should be encouraged to become involved with local organisations related and unrelated to work. Connections aren’t kept to one place—they can form anywhere. It’s vital that businesses support their employees, then, so that they can pursue interests outside of work and create these lasting connections.

 

Another way to engage with the local community is by being completely transparent with customers and overcommunicating. If there are big changes coming to the business, communicate those changes and the reasoning behind said changes prompt; if possible, let people know about it in advance. Overcommunicating is better than under-communicating, and customers deserve to know what decisions are being made. If they are kept in the loop, they are much more likely to be supportive of a business. 

 

For the biggest impact on a community, business owners should get themselves involved in community initiatives. These can often be found on the local municipality website; cities, villages, and townships are likely to post important initiatives to their municipality site. If any questions arise, simply talk to the local city administrator or clerk to ask how to get involved.

How Your Company Can Include Philanthropy in its Culture

Corporate philanthropy can be extremely beneficial not just for your community, but for your business’s visibility and reputation within the community you’re located in as well. Whether you’re volunteering in your community, supporting causes you care about, or donating to charitable causes, partaking in corporate philanthropy has an abundance of positive benefits that make it worth considering. You can build a strong sense of community with your employees and customers, give back to your community at large, and become more appealing to younger employees who seek out businesses that hold philanthropy in high regard. 

 

How can you start getting involved in corporate philanthropy?

 

An easy way to start on your business’s philanthropic journey is to offer volunteer time off to your employees. This will give your employees time to support organisations and causes that they hold dear to their hearts while not having to worry about using up precious PTO or taking an unpaid day off to get involved. Having volunteer time off, or VTO, will encourage your employees to become socially responsible and dedicate their time to charitable causes. It will also help attract and retain talented employees for your business.

 

More internally, corporate philanthropy should start with ethical labour practices. You must adopt fair pay for the work your employees put in—their time isn’t worth nothing, after all. Once you adopt ethical labour practices, you can go to your company’s social media pages and encourage your followers and other industry leaders to follow in your footsteps. You can even take it a step further by creating and hosting events that surround this topic for other companies.

 

Perhaps your product or service will be beneficial to others when offered charitably. Businesses can participate in philanthropy by offering their services to others pro bono; ideally, you’ll be offering these services to organisations that are involved in charity work. It’s a great way to build awareness for a cause you care about while helping those around you by doing something within your field of business.

 

Lastly, you could partner your business with a charitable organisation that means something to you. This will offer ongoing opportunities to become involved in philanthropic deeds and show your community that your business is committed to giving back. Charitable organisations can become an integral part of your business model and give new meaning to yourself, your products or services, and your efforts at large.

Is Your Board Ready to Get Hands-On?

A problem with boards across the United States is that they lack diversity. The reason is likely that boards recruit members that have similar thought processes as the existing members. However, it is important to note that a diverse board can lead to many successes

 

To get the board ready to be hands-on, a few things will have to occur. 

 

  1. An open mindset.

To get hands-on, the board has to open their minds to new thought processes. Things will be uncomfortable at first because change is not comfortable. However, once this period of discomfort passes, the board will reap the successes of multiple viewpoints. 

 

  1. Organizational Goals

Once a more diverse team is established, it will likely be necessary to reflect on the organizational goals and possibly expand them. This will allow room for growth within the organization and allow all members to feel a sense of belonging and inclusion. 

 

  1. Time Commitment

Establishing a diverse team and equity is no easy task. The board members have to be ready to put the time in to achieve this huge goal. This will likely need to be a discussion in which all board members are present, and the expectations are clearly outlined. 

 

  1. Multiple Leaders

The board cannot set out on this journey with a sole leader. To be effective, multiple people on the team will need to be passionate about this change and dedicate themselves to the project. This will put the board on the right track for success.

 

Guide to Founding a Charity

Section 501(c) (3) of the Internal Revenue Code (IRC) exempts nonprofit charitable groups from taxation, allowing financiers to deduct their donations to the groups while filing tax returns. Here are important steps to follow when starting a certified charity.

1. Know the different types of charity organizations you can start

There are different organizations based on missions. For instance, animal charities are concerned with the welfare of animals. Public charities receive most of the funds from the government while private foundations receive funds from small groups.

2. Confirm if your organization qualifies to be an IRC §501(c)(3) compliant

Your charity must be organized and managed just for “exempt purposes.” The exempt purposes include that the organization should run for public interest only.

3. Name your charity

The name to be used must adhere to rules set and be accepted by the Office of the Secretary of State among other conditions.

4. Set up a mission statement

A mission statement summarizes the importance and purpose of your organization. It is used in the filing of IRS and state files for the entity.

5. Incorporate the organization

This stage involves steps such as naming the corporation, the state of incorporation, and Articles of Incorporation among others.

6. Request a Federal Employer Identification Number (EIN)

In all your communications with the IRS, EIN must be used. An EIN is applied by filling the IRS Form SS-4. You should only apply for an EIN after your company is legally incorporated.

7. File to get tax exempt status

Send the correct IRS files to be considered for tax-exempt status by the federal and state government. You can use IRS FORM 1023-EZ or IRS FORM 1023.

8. Comply with charity regulations in your area

Different states, counties, and cities have different rules for charity organizations. You need to license and file the necessary annual reports.

9. Create a website

A great website enhances the credibility of your charity and ability to raise more funds. Your website should have your mission, testimonials, and charity activities you have undertaken.

10. Insure the charity

Choose the best insurance for your charity. You may need property and general liability coverage.

11. Plan how to raise money

The most difficult thing for many charities is to raise funds. Plan how to use various avenues such as social media and marketing to raise funds.

12. Minimize your costs

Many donors are concerned about how their contributions are used. Keep the administrative costs low to attract more donors.

13. Look for volunteers

Volunteers are crucial as they expand your mission and help in raising funds. The main advantage of volunteers is that they are not paid.

14. Deal with your employees appropriately

This involves offering your employees a fair salary. Look for employees who believe in your mission.

15. Other things

This involves activities like opening a bank account among others.

Powered by WordPress & Theme by Anders Norén