Muhammad Babangida | Philanthropy

Muhammad Babangida is a committed philanthropist from Nigeria

Tag: Donor Intent

Some Vocal Terms You Need to Know as a Nonprofit Leader

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On August 16, 2023

In Community Engagement, Muhammad Babangida, Philanthropy, Youth Philanthropy

Navigating the world of nonprofit leadership requires an understanding of specific terminology and concepts unique to the sector. Familiarizing yourself with these vocal terms is essential for effective communication, collaboration, and strategic decision-making within your nonprofit organization.

Here are some key vocal terms you need to know as a nonprofit leader:

Mission and Vision Statements:

These are foundational statements that define the purpose and goals of your nonprofit. The mission statement outlines the organization’s aims, while the vision statement paints a picture of the desired future impact.

Board of Directors:

The board of directors is a group of individuals responsible for overseeing the nonprofit’s strategic direction, governance, and financial health. They provide guidance, make key decisions, and uphold the organization’s mission.

Fundraising:

Fundraising involves soliciting and collecting financial resources to support the nonprofit’s programs and initiatives. It involves various strategies, such as grant writing, individual donations, events, and corporate partnerships.

Grant:

A grant is a financial award from a foundation, government agency, or other institution to support specific projects or initiatives. Grant writing involves submitting proposals to secure funding.

Donor Relations:

Donor relations encompass the strategies and practices for building and maintaining positive relationships with individuals, foundations, and corporations that contribute financially to the organization.

Impact Measurement:

Impact measurement involves assessing and quantifying the outcomes and effectiveness of the nonprofit’s programs and activities. It demonstrates how the organization is fulfilling its mission and making a difference.

Nonprofit Compliance:

Nonprofit organizations must adhere to various legal and regulatory requirements to maintain their tax-exempt status. Compliance involves following reporting, financial, and operational guidelines set by relevant authorities.

Constituent Engagement:

Constituent engagement focuses on involving and connecting with the various individuals and groups your nonprofit serves or interacts with, such as beneficiaries, volunteers, and community members.

Strategic Planning:

Strategic planning involves setting long-term goals and outlining the steps required. It helps nonprofits align their activities with their mission and create a roadmap for success.

Advocacy: 

Advocacy refers to actively promoting a cause, policy, or issue to effect change. Nonprofits often engage in advocacy to influence public opinion, policy decisions, and legislation related to their mission.

Capacity Building:

Capacity building involves strengthening an organization’s ability to fulfill its mission effectively. This can include enhancing leadership skills, improving operations, and expanding resources.

Nonprofit Sustainability:

Nonprofit sustainability focuses on ensuring the organization’s long-term viability. It involves diversifying funding sources, developing earned revenue streams, and building a solid supporter base.

Volunteer Management:

Volunteer management encompasses recruiting, training, coordinating, and recognizing volunteers who contribute their time and skills to the nonprofit’s activities.

Understanding and using these vocal terms will enable you to communicate effectively within the nonprofit sector, collaborate with stakeholders, and make informed decisions that advance your organization’s mission and impact. As a nonprofit leader, mastering these terms will enhance your ability to lead with clarity, confidence, and a deep understanding of your organization’s unique dynamics.

Nonprofit Scams to Be Aware Of

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On August 16, 2023

In Muhammad Babangida, Philanthropy, Youth Philanthropy

Nonprofit organizations play a crucial role in addressing social and humanitarian issues, relying on the generosity of donors to support their missions. However, the noble intentions of donors can sometimes be exploited by individuals or groups engaging in nonprofit scams. These scams undermine trust, divert resources from legitimate causes, and can have far-reaching negative impacts.

Donors and the general public need to be aware of common nonprofit scams to ensure their contributions are genuinely making a positive impact.

Fake Charities:

Scammers create fictitious nonprofits with names that closely resemble well-known, legitimate organizations. These fake charities often claim to support prevalent causes, exploiting donors’ desire to contribute to important issues.

High-Pressure Tactics:

Some scammers use aggressive tactics, such as cold calls, emails, or even door-to-door visits, to pressure individuals into donating quickly. Legitimate nonprofits respect donors’ decisions and provide ample time to research and make informed choices.

Emotional Appeals:

Scammers often use heart-wrenching stories and emotional appeals to manipulate donors’ emotions and prompt immediate donations. While emotional connections to causes are natural, verifying the authenticity of the organization and its claims before contributing is essential.

Misuse of Funds:

Scammers sometimes collect funds to support a specific cause but divert the money for personal gain. Transparent nonprofits provide financial reports demonstrating how funds are allocated to various programs and initiatives.

Impersonation of Legitimate Organizations:

Scammers might impersonate legitimate nonprofits by sending fake emails, creating fake social media profiles, or setting up fraudulent websites.

Overhead Fee Scams:

Some scammers claim that significant donations go toward administrative costs and overhead fees rather than the intended cause. Transparent nonprofits disclose how donations are used and balance administrative costs and program expenses reasonably.

Inaccurate Tax Deduction Claims:

Fraudulent nonprofits might promise exaggerated tax deductions for donations, exploiting individuals’ desire to receive tax benefits for their generosity.

Prize or Sweepstakes Scams:

Scammers send unsolicited communications claiming donations will enter individuals into a sweepstakes or contest. Legitimate nonprofits do not use donations as an entry fee for such contests.

Fake Disaster Relief:

Scammers exploit people’s willingness to help by creating fake relief funds during natural disasters or emergencies. To ensure your donations reach those in need, contribute to well-known and reputable disaster relief organizations.

Lack of Transparency:

A genuine nonprofit maintains transparency by providing information about its board members, financial reports, and accomplishments. Scammers often avoid giving such details to prevent their fraudulent activities from being uncovered.

Protect yourself from nonprofit scams by following these guidelines:

Research Thoroughly:

Before donating, research the organization’s name, mission, and reputation.

Use Secure Payment Methods:

When donating online, use secure payment methods and avoid sharing personal or financial information through unsecured channels.

Check for Accreditation:

Look for accreditation from reputable organizations, such as the Better Business Bureau (BBB) or the GuideStar Seal of Transparency, which indicate a nonprofit’s legitimacy and transparency.

By staying vigilant and informed, donors can protect themselves from falling victim to nonprofit scams and ensure their contributions positively impact the causes they care about.

Bitcoin and Nonprofits: How They Work Together

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On August 16, 2023

In Community Engagement, Muhammad Babangida, Philanthropy, Youth Philanthropy

At first glance, Bitcoin, the pioneering cryptocurrency, and nonprofits might seem like an unlikely pairing. Still, upon closer examination, their collaboration can significantly benefit charitable organizations and their philanthropic endeavors. Bitcoin’s unique attributes, such as transparency, security, and ease of cross-border transactions, align well with the needs and goals of nonprofits, enhancing their fundraising efforts and operational efficiency.

Borderless Donations:

Nonprofits often operate globally, aiming to address issues that transcend geographic boundaries. Bitcoin’s decentralized nature and digital format make it an ideal vehicle for cross-border donations.

Transparency and Accountability:

The blockchain technology underlying Bitcoin ensures a transparent and tamper-proof record of all transactions. This transparency can build trust between nonprofits and donors by providing clear insights into how donated funds are used. Donors can verify that their contributions are being utilized as intended, enhancing the accountability of charitable organizations.

Reduced Payment Processing Fees:

Traditional payment methods involve intermediary financial institutions that charge processing fees. Bitcoin transactions can significantly reduce or eliminate these fees, allowing nonprofits to donate more directly to their programs and initiatives.

Increased Donor Base:

Embracing Bitcoin donations can attract a new segment of tech-savvy and crypto-interested donors who might not have engaged with traditional fundraising methods. Nonprofits can expand their reach and connect with a broader audience by tapping into the growing cryptocurrency community.

Innovative Fundraising Campaigns:

Nonprofits can leverage Bitcoin’s technology to create innovative fundraising campaigns. For instance, they could issue unique digital tokens or NFTs (non-fungible tokens) as rewards for donations, fostering engagement and excitement among donors.

Swift Disaster Relief:

In times of natural disasters or emergencies, speed is of the essence in delivering aid. Bitcoin’s quick and borderless transactions enable nonprofits to receive funds rapidly, facilitating immediate relief efforts when needed.

Holding and Appreciation Potential:

Nonprofits holding onto donated Bitcoin can benefit from its appreciation over time. If the cryptocurrency’s value increases, the organization’s financial resources could grow, enhancing its ability to pursue charitable initiatives.

Educational Initiatives:

Nonprofits focusing on education can leverage Bitcoin to teach their target audience financial literacy and blockchain technology. This aligns with the mission of promoting awareness and knowledge among communities.

Early Adoption Advantage:

Nonprofits that embrace Bitcoin and other cryptocurrencies position themselves as innovative and forward-thinking organizations. This can attract attention, partnerships, and collaborations from within the crypto space.

As with any emerging technology, there are also considerations to consider. Bitcoin’s price volatility might affect the value of donated funds, prompting nonprofits to consider converting some of their Bitcoin donations into fiat currency to mitigate risk. Additionally, nonprofits must navigate regulatory and compliance frameworks related to cryptocurrency transactions in their jurisdictions.

The collaboration between Bitcoin and nonprofits can be mutually beneficial. Bitcoin’s features align well with the goals of charitable organizations, offering streamlined cross-border donations, transparency, reduced transaction costs, and the potential for financial inclusion. By embracing this technology, nonprofits can amplify their impact, engage new donor segments, and create innovative fundraising strategies that advance their missions.

What Are Some Reasons Nonprofits Might Not Accept Donations?

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On March 2, 2023

In Muhammad Babangida, Philanthropy

When a tech company from Silicon Valley wanted to give a $250,000 grant to an organization that helps reunite immigrant families separated at the US-Mexico border, the RAICES organization immediately rejected the donation. They did so because of the doner’s political ties to US Customs and Border Protection, criticized for its policies against immigrants. 

Regardless of the political issues that affected the company’s decision, it is an excellent example for other charitable organizations. Nonprofits should consider how their donations affect their mission and goals before accepting them. Donations need to align with the organization’s values or goals to be beneficial.

When a donation goes against the organization’s core values, it should be considered a red flag.

Reputation is one of the most critical factors a charitable organization should consider when accepting donations. If a potential donor’s values go against the organization’s core principles, it could affect the trust that its supporters have in it.

Before accepting a certain type of donation or partnership, an organization should thoroughly consider the potential damage to its reputation caused by the donor’s values. Having clear and published guidelines on its core principles with help. 

Good360, a product philanthropy firm, aims to find the right products at the right time to help people. Through our evaluation process, we aim to find the appropriate donations to send to the right people. They will refuse gifts that aren’t the right fit for disaster victims. 

If a nonprofit receives an offer of a product or service that doesn’t meet your expectations, it might not fit your organization’s goals. In the worst cases, accommodating the request could cost you a lot of money and time. 

Make sure your organization’s mission and goals are clear, as well as the issues you’re working on, before accepting donations. This information helps potential donors know if you’re the right fit for their giving programs.

The Donations Comes with Too Many Restrictions

Significant gifts can come with strings attached, and donors may ask for the funds for specific purposes or one location. While it’s important to keep donors happy, sometimes it’s necessary to say no thanks when these restrictions threaten the mission or values of the organization.

Saying No Opens Doors

When an organization says no to a gift because of a specific condition, it means saying yes to something better.

It can be difficult to decline a gift, but it’s also essential to consider the organization’s long-term goals and the community’s needs. Being selective about the types of donations you receive can help you achieve these goals.

Engaging with Nonprofit Donors

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On May 26, 2022

In Muhammad Babangida, Philanthropy

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.

Is it Important to Reward Donors?

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On February 19, 2020

In Community Engagement, Muhammad Babangida, Philanthropy, Youth Philanthropy

The short answer is yes, it is extremely important to reward donors! When an organization takes the time to reward its donors, they create a long-lasting healthy relationship where both parties feel valued. What exactly is an appropriate donor reward? Keep reading to find out.

 

When considering a donor reward, it is important that the reward does not make the impression that the organization is wasting the donor’s money. The reward needs to be meaningful. This means that the person or organization giving the gift will have to go a bit deeper than a mug, t-shirt, or magnet.

 

One great way to make a connection through a reward is to show that a lot of time has been put into it. For example, make a journal and make specific entries throughout the year that reflect what the donor’s money is helping to do. This will need to be specific for each donor, so get a plan before getting started! Remember, handwritten is always more meaningful than something that is typed. If the time is available, go ahead and handwrite the journal entries.

 

Remember to show personality through the entries. Act as if you are writing to a friend. This will create a conversational tone to the journal and create a deeper connection with the donor. After the donor explores the journal, they’ll feel great knowing where their money went. They’ll also likely look forward to reading another journal next year! This is a great way to form a long-lasting relationship with donors.

 

If the organization has too many donors to provide each one with a handwritten journal, this idea can easily be taken to a digital level. Create a password protected webpage that can serve as a digital journal. Reward your donors with the password so that they can read the journal entries at their leisure. This will serve as great motivation for the organization to keep the journal updates since donors can be checking it at any time. This is also a great way to provide donors with an exclusive look inside the organization. Plus, it is inexpensive for the organization itself!

 

Busting Myths Between New and Long Time Donors

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On August 18, 2017

In Muhammad Babangida, Philanthropy

When it comes to donations, some factors are predictable. Organizations, in fact, can benefit from having some level of predictability when account for the upcoming year’s income. However, myths can plague these predictions, and businesses want to make certain that they know what’s wrong with certain myths about new donors.

Unbridled Spending

One common assumption about new donors is that they will virtually engage in unbridled spending. Organizations might expect that these donors will be the only ones to provide tremendous sums since they are new in this business. However, evidence doesn’t necessarily support that claim. Donors both old and new may contribute in similar ways.

Longer Relationships

Businesses may often feel as though they can inspire longer relationships with new donors than with old ones. While the way the business owners act will likely play a role in the longevity of the relationship, the company’s own personal interests do too. The length of time that a relationship stays intact can vary, and it may have nothing to do with whether the company is old or new.

Riskier Beginnings

Another perception that organizations might have of new companies is that they are risky to rely on. Organizations might see an new business provide a generous donation but then remain skeptical if the business can continue with such donations in the future. However, organizations should remember that new companies may have tremendous financial support. They may also have started as a smaller businesses that has been growing itself into a giant for decades. Getting to know the history of donors can help companies to determine if they can rely on them in the future.

Modern Methods of Payment

Companies may also assume that newer entities are ready to use more modern methods of payment. For example, they may think nothing of sending donations through online payment services or via apps. However, when entities are making large donations, they may prefer to use paper methods. Staying open to different methods of payment and allowing for these channels can help a company to garner donations on a regular basis and to encourage them from a variety of different places.

Making assumptions about new donors is not the best idea because doing so closes off people to possibilities. Keeping an open mind is one of the best ways to prevent myths from getting in the way of potential donors from all types of businesses.

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