Technology is making it easier and affordable for charitable communication
Despite what we know are challenging times, Canadians continue to give of themselves through philanthropy to enrich the lives of others, meeting critical needs at home and abroad. But the pressure to stretch donor dollars further has never been felt more keenly by the not-for-profit charitable sector than it is right now. Resources are scarce and every dollar counts. Increased competition, scrutiny and economic uncertainty are putting pressure on charitable organizations to maximize every contribution, large and small. Donors crave a more meaningful experience and want to give beyond traditional "chequebook philanthropy." Happily, these trends can be combined to everyone's benefit, and the best strategies range from simple to sophisticated.
Technology makes it easy and affordable for charities to communicate. Their online efforts are more than just a marketing strategy and deliver the messages donors crave. Rather than see these efforts as intrusions, help them save on printing, postage and staff time and "opt in" electronically. Be sure to tell them how you want to hear from them or when you don't want to hear from them anymore. Talk about your favourite causes – people give to other people, and finding new donors is a very costly activity for all charities.
The best-run charities are transparent with their finances. Focus on the positive outcomes vs. the bottom line. It costs money to do good work, deliver great services and do it well year over year, so invest in sound charities that successfully accomplish their mission and do what they said they would. If you can, make a multi-year pledge and fulfill it to help a charity sustain or introduce an important new program.
Tally your annual donations and consider the net cost to you after all the tax credits are applied and consider whether or not you can afford to stretch your own donations budget a little bit further.
Smart charities will accept your gift in a variety of ways through instalments or online giving, which saves on staff, receipting and postage costs. If you give by credit card, consider adding three per cent to your donation to make up the service charges. Cheques are sometimes preferable, and this is especially true for large donations. Double your donation by setting up or taking advantage of any matching gifts, workplace and/or government incentive programs. If you're cash strapped, buy a membership and use the benefits.
Donate publicly traded shares or stock options to avoid capital gains tax. Smart charities are set up to accept these gifts and will have the proper forms and instructions to make it easy for you to donate them. A financial adviser can also help you with these decisions.
Donate intangibles like air miles, affinity or credit card points, or redeem them for needed items. If you have goods that your chosen charity is not actively soliciting, sell them and donate the proceeds instead. Decline any form of costly recognition and opt for a handshake or mention in a newsletter. This holiday season, consider designating a one-time donation on behalf of a loved one or client in lieu of gifts. It won't be regifted!
Get involved – volunteerism is the most effective way to maximize your gift. Aside from the obvious benefit of offsetting labour costs, it gets you closer to the organization and helps you understand how it meets its challenges. Join a board or a committee, offer a service, or host a third party
fundraiser where you do all the work (just be sure to check with them first!) In fact, many employers will give you time off to volunteer.
Remember that you are in the driver's seat, so begin by asking yourself two simple questions: are the decisions I'm making good for me? – and – are they good for the charity? If the answer is "yes" to both, then you've reached common ground. This is the best place in the world for charities and their donors to meet because, ultimately, everybody wins!
GIVING WISELY
The Association of Fundraising Professionals (AFP) understands the dilemma that many donors face: the want to give to worthy causes, but sometimes they are unsure of what is a legitimate charity and what is not.
"We all want to give, but we also want to be sure that our gifts go to legitimate, worthy organizations that will use our money to support valuable programs," says AFP's vice president, Public Affairs, Michael Nilsen. "So to help donors make the right decisions, we have created a 25 point checklist that walks them through the process."
The list informs donors of the things to look out for and be cognizant of when considering making a gift to a charity. In essence, it provides good common sense advice on how to give in a way that meets the needs of donors and charities.
For the full list visit: www.afpnet.org/files/GivingHeart/GivingHeart_GiveWisely