Muhammad Babangida is a committed philanthropist from Nigeria

Tag: Charity

Millennials and Philanthropy

Wondering how to better market your non-profit or social cause to what has been called the most philanthropic generation yet? Read on to find out about the giving trends of millennials and what causes Millennials care about.

Here we have compiled a brief overview of the research on the general outlook of Generation Y on donations and philanthropy.

Millennials are close to running the world

Millennials or Generation Y are those born roughly between 1980 and 2000, succeeded by Generation Z or Centennials. As of now, Millennials constitute the biggest part of the global workforce – they are also the biggest buyers, driving consumption in most economies.

The engagement of Millennials in philanthropy is not the highest right now – Boomers and Matures or “The Silent Generation” make larger donations and greater overall donations annually. Generation Y’s paying capacity is going to increase greatly by 2020, as they mature and inherit more wealth from their predecessors.

Engaging the cautious Millennial in your cause

With millennials contributing to a growing share of the economy, they are an important source for fund-raisers. However, they are cautious investors and usually like to stay very involved in the activities of the organizations they donate to.

The “me me me” generation is perennially connected via social media. Any organization worth its salt in the 21st century needs to have a strong online presence. It adds a great deal of credibility to your brand image. Having 3 or 4 posts per year on your Twitter feed makes it seem like your company is either defunct or not very active. Updating your social media handles on a consistent weekly or even daily basis is essential to keep your audience involved.

Your biggest resource – The Millennial Impact Report by Achieve

The US national research group Achieve releases a comprehensive report on the habits of the Millennials and the causes they invest in. The Millennial Impact Report is a rich source of information on engaging this highly socially conscious generation. The 2016 Impact Report focused mostly on observing how the presidential elections would affect the issues that Millennials are interested in.

The main findings were along these lines:

Millennials don’t believe in the ability of government to bring about any change. The disillusioned generation places more emphasis on their personal responsibility to make the world better for everyone.

Despite willing to take more responsibility for the state of the nation, Millennials are less vocal about their stances than previous generations like the Boomers. Millennials tend to avoid conflict and argument.

Millennials display less allegiance to any particular political party and instead are more supportive of political figures who touched more on the issues they care about.

How all of this translates to your marketing campaign

Possibly because of the nature of social media and the availability of more information to us at any point of time, millennials are at any point aligned with 3 to 5 causes. The initial investment in any cause is small in most cases, the ones who stand out urge individuals to take further action and be more deeply involved. Acknowledgment from peers is highly impactful in helping the process along, and deeper involvement can be incited by making further action beyond the initial investment easier.

Millennials are deeply invested in social issues; this comes from an empathy knowing that they themselves or people close to them could be similarly affected. They are more responsive to cause-based marketing that directly invokes their empathy via human-centric imagery. Make your audience aware of the real issues that and struggles that people face and how your cause can alleviate them.

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.

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