Turn Your Nonprofit Obstacles Into Opportunities

Nonprofit organizations serve a great purpose and make a significant difference in the community daily. Although the mission of nonprofits is positive, they are faced with various challenges along the way. Each challenge presents it own obstacles but can turn into opportunities for growth and overall victory. Here are some challenges that nonprofit organizations face and how to turn them around to make it work for your organization:

POLITICAL LEADERSHIP CHANGES

Regardless of the political party that you or your team may side with, a level of uncertainty comes with a new direction of local, state, and national governmental leadership. Groups such as nonprofits can be impacted by these changes due to the difficulty in being able to adequately conduct any long-term planning for their organization.

The best way to face this challenge is to sketch out annual objectives and goals for the upcoming year while also including backup plans that will allow you and your group to have another option to fall back on in case you have to derive from your original plan.

ADEQUATE FUNDING

Along with new technology comes new ways that donors can give donations. A way to increase donations for your organization is by having an online portal that accepts donations. By accepting financial donations online, donors will feel that they can give in a more convenient way through their tablet or mobile devices. Also invent in a Square Chip Card Reader, a device which will allow your organization to receive payments through your mobile device or iPad.

LACK OF VOLUNTEERS

In order to reach the goal that your non-profit organization has set, a few extra helping hands may be needed. An easy way to gain these helpers is by reaching out to college clubs and organizations to receive some young, vibrant volunteers. Many college students are interested in lending a helping hand and gaining some community service at the same time. Also, a good bit of college organizations have a community service initiative that they strive to complete each semester. When it comes to community service, “the more, the merrier” is sometimes best.  

It is also important to keep record of any individual or group that volunteers with you, as most will need a signature or some form of verification from a designated leader within your organization validating the time they volunteered.

RETAINING/ENGAGING DONORS

Without donors, nonprofits cannot survive. The organization-to-supporter relationship is very important. Today’s donors do not want to think that all you want from them is their money. Rather than asking for money right away, find ways to engage conversations with supporters and give them an opportunity to get to know your organization and build an emotional attachment to your work and mission. These are some good ways to keep donors invested:

• Keep them engaged and let them know that they are an integral part to the organization.
• Let donors know where their money is going and what it is supporting. Give monthly or quarterly updates via email or newsletter.

INNOVATIVE & EFFECTIVE COMMUNICATION

Many aspects of today’s communication are focused on digital outlets like social media, text messaging, and mobile app usage. Although the ways of communication have changed, that doesn’t mean that your donors have adapted or changed their preferred type of communication.

Due to this dilemma, organization leaders are having to find new ways to communicate their needs and announcements to various demographics. The best way to tackle this issue is by sending one message but taking an omni-channel approach.

Messages sent through social media would use a more “trendy” approach with non-extensive writing vs. a professional email or phone call that would be more conversational. It is also suggested and very important to survey the key constituents of your organization to see which method they prefer.

FINAL STEPS

By facing these challenges and turning them into opportunities, your organization can have an awesome year of philanthropy and service! As a nonprofit organization, it is crucial that you maintain your tax-exempt status with the IRS. ExpressTaxExempt, the #1 IRS-authorized tax e-filing solution for tax-exempt organizations, allows you to do just that. Providing security, ease, and peace of mind to organizations and its leaders, we respect the services that nonprofit organizations give to communities and are motivated to help with e-filing so you can get back to proudly making a difference in your community. With newly reduced rates, organizations can now save funds annually when e-filing. Pay us a visit at www.expresstaxexempt.com today and begin your e-filing process.

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Unique Ways to Fundraise for Your Nonprofit

Any leader of a nonprofit organization will tell you that receiving adequate funding for their organization can be somewhat of a challenge. Although charitable nonprofits usually rely on the generosity of donors to support their annual efforts, fundraising initiatives are sometimes necessary to assist with supporting the financial needs of the organization. We’ve provided some fundraising techniques that your organization can utilize for years to come!

FUNDRAISING TECHNIQUES

Collaborate with other Organizations

Reach out to other organizations in your area to host events and support each other’s endeavors.

Supporting each other can assist with finances by cutting the cost in half as well as unique ideas, planning, and execution and follow through.

Have Fun Activities Become Fundraisers

Find out what your community enjoys doing during their free time and turn it into an enjoyable fundraiser. People don’t mind giving or setting aside a few dollars to do what they enjoy.  Let’s take a Talent Show/Competition for example -- the cost of hosting a local talent show can be very inexpensive and if you have a few members of your organization that like to bake, you could sell light refreshments during the intermission of the event to make an extra few dollars. Other events such as a cook-off, charity tournament, scholarship banquet, or even the latest current trend, an escape room puzzle event.

Be Involved in Your Community

Giving back to your community is always beneficial in more ways than one. It pays to educate the community about what your organization does. By making donors aware of your community service initiatives, many will feel comfortable supporting your various endeavors and fundraising efforts. People tend to not give to groups that they know nothing about. The more exposure your organization receives, the better.

Crowdfunding

This is considered to be peer-to-peer fundraising by way of members asking their friends, family members, and coworkers for donations prior to an event and then having them participate in the event.

This type of fundraising is ideal for a marathon, walkathon, pageant, etc., and is a great way to directly involve donors.

FUNDRAISERS

When conducting planning for your organization annually, it can be a challenge to find different ways to raise money. Here are some various fundraising ideas that can be done:

FUNDRAISERS	FUNDRAISING EVENTS
50/50 Raffle or Basket Raffle Bingo	Silent Auction
Sip and Paint	Talent Show / Lip Sync Competition
Recipe Books	Battle of the Bands
T-Shirt Sales	Comedy Night / Karaoke Night
Polar Plunge	Gala
Engraved Bricks	Marathon / Walkathon
Wrapping Paper Sale (Holiday Seasons)	Rainbow Tea
Car Wash	Classic Car Show
Baby Photo Contest	Cooking Class
Penny Drive	Trivia Night
Appreciation Grams	Dinner Theatre
Pie Throwing Contest or Dunk Tank	Date Auction

For more neat fundraising ideas, click here.

Be sure to save those receipts when planning a fundraising event and know that ExpressTaxExempt is always here to be a consistent resource to you and your organization for all things tax exempt! Visit our website for any tax forms that your tax-exempt organization may need throughout this year and save even more when you e-file with our recently reduced filing rates! We’re available to assist you via phone at 704.839.2321 on Monday through Friday from 9 a.m. to 6 p.m. EST or reach out to us 24/7 via email at support@ExpressTaxExempt.com.

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4 Surprising Tax Tips for Nonprofits

Successfully running a nonprofit or charitable group comes with many responsibilities - not only with your organization’s mission and activities, but also all the requirements to remain compliant with the federal government.

You already know to file a tax report to the IRS every year. You know that failing to do so for three straight years can void your exemption status. You know what to look for and how to report it, but here are a few less known tax tips found online that can benefit your organization in various ways.

Deductions for Volunteers
A great incentive for attracting volunteers to your organization is the tax benefits they receive for their service. Inform your volunteers how they can deduct various travel expenses such as oil changes, fuel, and mileage. Flight costs, food, lodging, and just about any other out-of-pocket expenses required for your volunteers to complete their tasks are tax deductible.

Receipts for Charitable Donations
It may be difficult at first, but try to establish a habit of writing acknowledgments for each donation your organization receives - you can create something as simple as a receipt or a “Thank You” letter that contains the following:

• Donation amount
• Date the donation was received
• Proof or a reassure of exemption status
• A statement of exchange for the donation, if necessary

You might not be obligated to acknowledge every $5 or $10 that comes to your nonprofit, but you should properly recognize anything in the hundreds of dollars or more.

Detailed Financial Documents
You never want a situation in which the IRS has you audited. But if you are, be sure you can account for every donation, expense, and revenue. With the various tax software available, you can organize and have your information readily available for any scenario. Make a habit of documenting your financial reports as soon as you get them. At the very least, it makes your tax season less stressful.

Fundraising through Crowdfunding
Though crowdfunding is proving as a viable alternative to traditional fundraising, it’s still subject to customary tax laws regarding donations. But just like regular donations, you’ll report the same information about contributions from crowdfunding. Whatever crowdfunding platform you choose, you can track donors, their monetary amounts, and even set up rewards for each donation.

Just as each nonprofit is different from the next, so is the tax situation for each exempt organization. Check with a tax advisor for any other surprising tax advantages - and when you’re ready to e-file IRS Form 990/990-EZ come to ExpressTaxExempt.com. Our streamlined, cloud-based service asks interview-style questions which report your organization’s revenue, expenses, and other activities for the year - without the time-consuming hassles of paper filing.

Contact our U.S. - based, e-file professionals for any questions or assistance with our services. You can speak with us at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or send a message to support@ExpressTaxExempt.com.

Related Blog: Start a Nonprofit in 3 Simple Steps 

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Are You Making These 5 Crowdfunding Mistakes?

Back in the day, fundraising was usually a face-to-face, spoken word kind of venture. But in the digital age, things have changed.

In order to maintain competitive fundraising, you need to look towards the Internet! But with great crowdfunding comes great responsibility.

I mean, there are certain rules, drawbacks, and benefits to Kickstarter, IndieGoGo, and GoFundMe. But no matter what, there are mistakes you can make on every crowdfunding site.

Your Campaign Is Not Clearly Defined

Don’t use a crowdfunding campaign for general fundraising.

Instead, focus your crowdfunding to a specific project, and how it will inspire donors to be a part of it.

Also, a specific project will have a smaller goal ($10k is a lot more palatable than $100k).

You Have No Mass-Market Appeal

Be realistic. You’re a big supporter of your cause, but the Average Joe isn’t.

If you do your market research, you can find the broadest appeal for your project. Research allows you to target your fundraising efforts.

You Have No Dedicated Resources

After you research, you need to make sure you have the capabilities to manage a big campaign.

If you don’t have a dedicated marketing professional on your team, you need to split the duties of a marketer between your current staff.

Also, you need to spend a little to earn a little in most situations, so make sure you have a budget that accounts for marketing.

You Don't Have a Plan

With proper resources, a real plan comes together.

Every plan has a before, a during, and an after. Start by setting goals you plan to meet, metrics you will measure with, and a time frame for all of this to occur.

With prepared content and continuous outreach, you can build relationships with your new donors even after your campaign ends.

You Have No Existing Donor Network

In order for your campaign to succeed, you need a relationship with your existing donors. First of all, they’re passionate about your cause.

Second, they have friends and family to share your project with. New donors are more likely to give if their loved ones have vetted the cause already.

Once you have your crowdfunding road-map in order, you can implement your plan!

With a solid crowdfunding campaign, your project is sure to be successful.

And it’s never too early to start planning your tax exempt return—once all these donations roll in, use the awesome recordkeeping features of ExpressTaxExempt to import donations. If you have any issues e-filing your 990 form, contact our support team at 704.839.2321.

Are you making these crowdfunding mistakes?

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Increase Donations with Social Media

So you started a nonprofit organization, and now it's time to earn those donations. What do you do? The traditional route of holding fundraisers, networking with local businesses, and using postal mail to communicate with your potential donors are time-tested strategies that work. But marketing through social media is now a serious contender for nonprofits.

Just in the last few years, large scale nonprofit and tax exempt organizations have had successful campaigns through social media. Remember #GivingTuesday? Events like that are near impossible without the social aspect. 

With the ever-growing popularity of Twitter and Facebook, your tax exempt organization needs to have a social game plan. Follow these tips and tricks to boost donations to your nonprofit.

Inform Your Donors

Openness can take you far! Want to keep your donors interested in your mission? Update your followers on how you allocate donations. By tweeting your numbers or posting a photo to Facebook, you create an informed audience. When followers see their donations going to the mission, they’ll know your organization is trustworthy. What better way to inspire more donations than to show your donors with the fruits of their labor? You can also tweet out promotional images, keeping your followers informed of upcoming events.

When you update your donors on your mission, you keep things conversational. This is why for-profit businesses have such a strong presence on social. Best of all, social media is free, but it does have both organic and paid methods of boosting your reach.

Improve Interactivity and Engagement

Want to mobilize action fast? The high speed reaction time over social media lets donors know when you need funds, goods, or volunteers. Of course, for this you need engagement. With engagement and interactivity, your organization will take a campaign to the next level.

There are major benefits from social media for your organization, too. Not only can you interact with your audience, you can measure engagement and see what works best for messaging. When you engage your supporters, you create a conversation that you can use to refine your mission.

Improve your Fundraising and Crowdfund

When it comes down to it, you need to establish a relationship of communication with your donors so you don’t come off as another bill. By building a community, your donors will feel more inclined to give. With multiple channels, you can promote your fundraiser and crowdfund across Twitter, Facebook, YouTube, and even LinkedIn. This increased reach will boost your fundraising without question.

Have questions about e-filing Form 990? Contact our US-based customer support team at 704.839.2321, or email us anytime at support@expresstaxexempt.com. And be sure to check out our social media footprint on Facebook and Twitter!

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Boost Fundraising Through Crowdfunding

As the future of crowdfunding is becoming more promising, there are many nonprofits and charities that are realizing the potential of incorporating crowdfunding within their fundraising efforts. To keep it short and sweet, crowdfunding uses an online platform in which anyone can easily contribute a donation with just a few clicks of the mouse. With some sites, you can even set donation levels, give prizes at certain amounts, and create teams.

When used properly crowdfunding can produce revenue greater than traditional fundraising means. But it’s not as simple as creating a page and then reaping the rewards - nothing is ever that easy. For your fundraiser to be successful through crowdfunding, there is a level of effort required to get your campaign seen and heard. And with these three steps, you can build a solid campaign or save an existing one.

Step 1 - Set Clear Goals
Keep in mind - this isn’t a get rich quick scheme, or get funds rather. Hundreds of thousands of dollars aren’t going to miraculously fall into your organization simply because you kicked-off a crowdfunder. And while you’re probably thinking “It’s possible,” the point is that asking for “hundreds of thousands of dollars” won’t yield favorable results.

The best outcomes are going to come from setting a reasonable amount to reach, a clear deadline to reach that amount, and stating how the money will be used. Keep your expectations grounded, and your goals realistic. Worst case scenario - you raise much more funds than you thought you would because the goal was set low.

Step 2 - Nurture Your Campaign
This cannot be stressed enough; you can’t just create your crowdfunding event and then casually go about your business… This fundraiser is your business! Get the word, and the link, out to your donors, to your volunteers, to everyone. In hindsight, all of your regular contributors should know about your campaign weeks before it goes live so they can initiate donations.

A little notice here and there isn’t going to do too well. Get creative on how you get the word to others. The donation page is already created, so what are 101 ways you can share a URL link to people? For some helpful and easy tips to promote your campaign, check out our blog:
Promote Holiday Giving

Step 3 - Use Social Media
It should come as no surprise that social media plays a part in the marketing or promoting of anything. If big name businesses and Fortune 500 companies are using it, then why should you shun away from it? Crowdfunding and social media are like two sides of the same coin.

Create a plan to engage with your followers on a regular basis, or organize online contests with a prize to get people donating. Studies have shown that Facebook can increase crowdfunding donations by 350 percent - how’s that for some serious motivation?

Crowdfunding can work as a great alternative to traditional fundraising, if you know what you’re doing. And with those significant donations pouring in, you have to report it all come tax season. That’s where we make it easy for you; ExpressTaxExempt offers the most simplistic way to report contributions from fundraising events with your Form 990. Not only that - it will automatically subtract any expenses entered from your event and factor the net income into your overall, total revenue.

Learn step-by-step how to report fundraising events with ExpressTaxExempt.

For more assistance, or for questions in regard to e-filing any of our available 990 forms, our live support team in Rock Hill, South Carolina can help with the filing process. We’re available at (704) 839-2321, Monday through Friday from 9 a.m. to 6 p.m. EST, or email us anytime from anywhere at support@expresstaxexempt.com.

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