How To Determine When To Engage With Non-Profit Donors

We all know that donations from generous individuals help sustain the mission of non-profit organizations. Throughout the year you find yourself promoting your non-profit through numerous emails, phone calls, social media posts, and more to receive donations. Once you’ve attracted a donor and received donations, when is the perfect time to follow up with them?

Today, we will answer the questions you’ve always had and will learn more about how to determine when to engage with donors.

How To Determine When To Engage With Non-Profit Donors

First-time and recurring donors want to know that you appreciate their contribution to your non-profit. While “thank you” goes a long way, there is a strategy that should go behind when to say it. Here is some insight on the best time to engage with your donors.

Prepare to Engage

As always, preparation is key to anything. Before you engage with a donor, it is essential to have a way to receive, track, and manage their information so you can maintain a positive donor relationship to foster continuous support.

Create a Donor Management System. This is a database where you will store all donor and gift information such as the date and time of the donation, the donor’s name, address and zip code. You can refer back to this information as needed to help customize donor communications in the future which will lead to recurring contributions.

Tip: Save this documentation and upload to a secure drive online. Once you create this database you will not want to lose it...trust me!

Same Day [Online Donation]

Express your gratitude immediately. 

When receiving an online donation, it is best to share your appreciation with a follow-up page as soon as the donor has finished the transaction.

The Following Day

Be sure to thank your donors for their contributions in a brief, yet compelling, email by the following day.

A great way to utilize your donor management system is to initiate this email after the donor's first gift automatically. Feel free to mention the campaign or project that their contribution will be supporting and attach a receipt for their records.

Note: This email should be sent from the director of the organization or a very well-known staff member that does well with maintaining donor relationships.

Within Four to Seven Business Days

An extra “thank you” never hurt, right? After a few days have passed, reinforce your gratitude with a heartfelt follow-up. This can be done via email or by letter. Take time to reiterate your appreciation and welcome them to your support team. Sharing an impactful story is always a plus!

Engaging with your donors is simple, easy, and rewarding! With so many ways to encourage giving, ExpressTaxExempt and our sister product TaxBandits are here to empower your nonprofit and be a helping hand with your nonprofit tax filing needs. You are in the business of helping others, now let us help you! Create a free account today and get back to making a difference in your community.

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How To Improve Relationships With Donors

Let’s be completely honest, donors are a nonprofit organization’s best friend!

Without donations from philanthropic individuals, businesses, and organizations, it is extremely difficult to effectively carry out the work of your organization.

Forming a good relationship with a donor can benefit your nonprofit organization significantly and allow you to help even more people in your community by connecting with a philanthropist.

Here are 10 ways to improve relationships with a donor:

10 Ways Your Nonprofit Can Improve Donor Relationships

What does it take to establish a good rapport and working relationship with a philanthropist or donor? It has to be more than a nicely written email or monthly newsletter, right?

Several of our clients shared their “secrets to success” when it comes to creating and maintaining a positive nonprofit-to-donor relationship. Being honest, transparent, authentic, trustworthy, and patient are characteristics that go furthest with a potential donor.

Once you have embraced these characteristics it’s time to put them into action. This can be done in 10 ways:

1) Take Risks - GO FOR IT!

2) Maintain open communication

3) Listen & Learn

4) Find common interests and build on them

5) Do a follow-up call or send a nice note after your initial meeting

6) Help promote their company at hosted events or online (social media/website)

7) Be interactive and open to feedback

8) Refrain from being defensive

9) Educate donors of your nonprofit organization

10) Be strategic

Utilize these characteristics and put them into action to help you grow as a nonprofit organization leader but also improve the overall reach and financial support of your beloved organization.

What To Do After You've Gained Donors

Once you’ve built a rapport with the donor(s) that you’ve been looking for, don’t forget to file your annual 990 Forms with ExpressTaxExempt. The last thing we want you to do is to gain a bunch of new donors and then lose your tax exempt status. ExpressTaxExempt will help you remain tax exempt and free from IRS penalties. Create an account or sign in today to handle your nonprofit organization’s tax filing needs.

What are some ways that you have attracted and kept a donor or philanthropist engaged over the years? Comment below so we can add them and share with others 😊.

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Tips for Reporting Supplemental Financial Statements

Each time your organization answers “Yes” to a question on Form 990, Part IV, you’re required to complete the applicable schedule and provide explanations that are relevant to the question.

If your organization doesn’t have any further information to provide with a schedule, then you should answer “No” to the corresponding question on Form 990, Part IV.

Submitting a complete and accurate 990 form is critical to remain compliant with the IRS and to avoid any penalties or audits. Here are some key rules from the IRS about reporting important supplemental financial statements.

Donor Advised Funds
Tax-exempt groups that managed donor advised funds at any time during the tax year need to answer “Yes” to Line 6, Part IV. A donor advised fund or similar funds are accounts in which the donor, or someone appointed by the donor, has advisory privileges over the use of any portion of the account.

If information about donor-advised funds applies to your organization, you must provide the total number of managed accounts for the year, the aggregate value of contributions made during the year, the aggregate value of grants given during the year, and total aggregate value of funds at the end of the year.

Conservation Easements
A conservation easement is an agreement established for the purpose of conservation and preservation of property held by the organization. If you answer “Yes” to Line 7, Part IV, you need to explain to the purpose of the conservation easement held by your organization.

If you indicate that your organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year, you’re responsible for providing follow-up information such as the total number of easements and total acreage restricted.

Art and Museum Collections
Answer “Yes” to Line 8, Part IV, if your tax-exempt group maintained collections of works of art, historical treasures, and other similar assets at any time during the tax year. Be prepared to indicate revenue related to collections and assets related to collections reported under SFAS 116 (ASC 958).

You’re also required to state the significant use of the collection items, a description of the organization’s collections, and an explanation how they further the organization’s exempt purpose. And finally, report if items from the collection were sold to raise funds rather than maintained.

Escrow or Custodial Accounts
Organizations that have funds in an escrow or custodial account for other individuals or organizations, provides credit counseling services or debt management plan services, or acts as an agent, trustee, custodian, or another intermediary for contributions or other assets should answer “Yes” to Line 9, Part IV.

If your organization acts as an agent, you’ll need to enter the escrow or custodian fund details including beginning balance, addition amounts, distribution amounts, and ending balance for the year and also provide an explanation of the arrangement.

Endowment Funds
If your organization held assets in temporarily restricted endowments, permanent endowments, or quasi-endowments, you should answer “Yes” to Line 10, Part IV. You’re required to enter the amounts of the current year and prior year contributions, grants, administrative expenses, and asset transfers to the organization's endowment funds.

Report the estimated percentage of your organization’s total endowment funds and also provide information on other endowment funds that are not in your possession. Near the end, you need to describe the intended uses of the organization’s endowment funds.

With ExpressTaxExempt.com, you are guided effortlessly through each of these sections. If you answer “Yes” to any of the initial questions, our application presents the required follow-up questions, and your answers are entered in the generated schedules automatically.

Contact our U.S. - based customer support team for any questions or further assistance with e-filing your 990 form through our cloud-based service. We’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST. Or reach us via email with support@ExpressTaxExempt.com.

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