How To Communicate Fundraising for Nonprofits

The summer is in full force which means it is prime time to start fundraising for nonprofits that will support the financial needs for the year. The support of your nonprofit fundraising depends heavily on how well you communicate your efforts through written, verbal, or visual communication methods. Today we will cover how to communicate fundraising for nonprofits to help your organization reach its goal.

How To Communicate Fundraising for Nonprofits

The message you send to donors can easily affect the decision-making process. Here are some tips that help with communicating fundraising for nonprofits:

1) Know Your Audience

Before you send anything to your potential donors, make sure you have a strong understanding of your audience so you can send the right message. Determine the demographic that you want to reach and find out what your audience responds to best.

Once you learn about your audience, compelling them is much easier. Remember to keep tone, language, jargon, etc. in mind as you start crafting your message(s).

2) Know Your Goal

It’s almost impossible to reach any goal when you don’t know what it is. Set your goal early on in the planning process so you can effectively incorporate it in your communications and strategy.

3) Keep Text Brief

Effective communication does not equate to extensive text. When writing your message, be sure to share enough information to inform the reader, grab their attention, and compel them to support your fundraising efforts. If your message is too long, you could lose the reader’s interest or even their support.

4) Personalize the Message

Always keep your target audience in mind when writing and make a personal connection. Readers that feel connected tend to give more easily! You would never write the same message for a millennial as you would your elderly audience.

5) Be Consistent

Once you have established a tone for your messaging, stick with it! Readers like consistency and will get the message you are trying send. This will not only cut down on the time you spend preparing additional messages but will also save your marketing budget major moola.

6) Avoid using Jargon

Nonprofit organizations and professionals tend to have industry-specific jargon that isn't used in our daily vocabulary. Avoid using this jargon when communicating with your audience, because nine times out of ten they won’t have a clue what you are trying to imply. When your audience doesn’t understand they are more likely to skip the call to action and move on. As much as you wish they would simply ask, this is likely not the case.

7) Prompt Communication  

Give your readers an adequate amount of time to donate towards your fundraising efforts. If you wait until the last-minute to correspond with them, they will be more inclined not to give or simply “catch you next time,” which usually never comes around.

Set deadlines for when you want to send correspondence and stick to them. The more time you give the reader, the more support you may receive!

Next Steps

Once you have communicated your charity fundraising and collected donations to support the mission of your organization, be sure to keep a record of all donations for your annual IRS Form 990 filing.

ExpressTaxExempt is here for your nonprofit with all of its 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 the lives of others.

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What You Need To Know About Filing For Exempt Status With The IRS

As a non-profit organization, it is imperative that you file and maintain your tax-exempt status with the IRS. Since filing for your tax-exemption status is a detailed process we are sure you have a few questions. To avoid spending hours searching for accurate information, we have researched for you, so here is everything you need to know about filing for your tax-exemption status.

What You Need To Know About Filing For Exempt Status With The IRS

Here are the top seven questions most nonprofit leaders have when it comes to filing for exemption status. All information shared has been provided directly from the Internal Revenue Service at www.irs.gov:

1) Nonprofit and Tax-Exempt Status...Is There a Difference?

Nonprofit status is a state law concept. Nonprofit status may make an organization eligible for specific benefits, such as state sales, property and income tax exemptions. Although most federal tax-exempt organizations are nonprofit organizations, organizing as a nonprofit organization at the state level does not automatically grant the organization exemption from federal income tax.

To qualify as exempt from federal income tax, an organization must meet requirements outlined by the Internal Revenue Code.

2) How Can My Organization Be Recognized as Tax-Exempt?

To be recognized as exempt from federal income taxation, most organizations are required to apply for recognition of exemption. For section 501(c)(3) organizations, the law provides only limited exceptions to this requirement.

Applying for recognition of exemption results in formal IRS recognition of an organization’s status, and may be preferable for that reason.

3) What Form(s) Should I File For Exemption Status?

Most organizations must file one of the following specific Forms to receive tax-exemption status:

• Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code (for charitable organizations; see instructions)
• Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code (instructions)
• Form 1024, Application for Recognition of Exemption Under Section 501(a) (instructions).

Click here to find out which application your organization is required to submit.

4) Where Should Exemption Applications Be Sent?

Send your completed exemption application to the address stated in the instructions to the application form:

Internal Revenue Service
P.O. Box 12192
Covington, KY  41012-0192

Express mail or a delivery service address:

Internal Revenue Service
201 West Rivercenter Blvd.
Attn: Extracting Stop 312
Covington, KY 41011

5) Can My Application Be Expedited?

Generally, applications are processed in the order received by the IRS. Sometimes, however, the IRS will expedite the application process for valid, compelling, and legitimate reasons.

A request for expedited processing must be made in writing and must fully explain the reason. Reference Expedited Application Processing for more information.

6) Is it Required That My Organization Has a Tax-Exempt Number?

No, unlike some states that issue numbers to organizations to indicate that these organizations are exempt from state sales taxes, the IRS does not issue numbers specifically for exempt organizations. While the IRS does issue Employer Identification Numbers (EINs), these are merely a unique identifier, similar to a Social Security number.

Applying for and receiving an EIN does not indicate an organization's tax status; however, your organization needs an EIN to apply for tax exemption.

7) Do Government Entities Need To Apply For Exemption?

Most state and local government entities are not required to pay federal income tax. For non-tax reasons, though, government entities are sometimes asked to provide a tax-exempt number or determination letter to prove their status as a tax-exempt organization.

State and local governments are not required to apply for this exempt status, however. As discussed in ‘Affirmation of Your Tax-Exempt Status,’ the IRS will issue a letter describing the tax status of government entities. Most organizations and individuals will accept this letter as the substantiation that they need. No application is required, and no fee is associated with this letter.

Now that you have what you need to know about filing for exemption status be sure to sign up for your free ExpressTaxExempt account to handle all of your Form 990 tax filing needs! Sign up today and maintain tax compliance with ease!

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How To Make Your Non-Profit Board Meeting Engaging

Building your non-profit organization takes time, dedication, commitment, and a great team to support it.

Once you’ve built your team of volunteers and supporters, it is important to meet to discuss the various aspects of your organization. However, while meetings are beneficial to an organization’s growth, they can become ineffective if not run correctly.

Today, we will learn how to make your non-profit board meeting engaging.

How To Make Your Non-Profit Board Meeting Engaging

1. Have a Purpose To Meet

There’s nothing worse than gathering your team for a meeting that has no real purpose. Meet only when necessary. If you don’t, your team will become uninterested and disengaged because they feel their time is being wasted. If what you want to discuss can be accomplished in a simple email do so your team will thank you for it.

2. Know Who To Invite

Unless you’re having a “Come to Jesus Meeting” that requires your whole team meetings should involve only those who are directly related to the topic. Determine what needs to be discussed and invite the necessary members of your team to keep the meeting brief and productive.

Note: Authority figures within your nonprofit organization must be present when major decisions are made. 

3. Create an Agenda & Send in Advance

I can’t emphasize enough how beneficial a preplanned agenda can be for keeping your meetings quick and concise. Every meeting should have an agenda with clear objectives and a time frame for discussion. You should include an explanation of how each topic up for discussion and how you will be taking suggestions. This will help your team fully understand the conversation and improve the productivity of your meeting. 

4. Keep Attendees Engaged

Make your meetings meaningful and engaging by keeping things going at a brisk pace, but allow enough time for a thorough discussion. Call on your members by name when their participation is needed. Vague discussions lead to vague responses. Have everyone look at the same document throughout the meeting to keep them involved and ask for feedback.

5. Provide a Closing Summary at the End of Each Meeting

Keep your team on the same page before you leave each meeting by doing a quick summary of the discussion and decisions made. Allocating 5 minutes at the end of your meeting for this summary will ensure shared understanding and clear commitments.

Bonus Tip: End the Meeting Early If You’re All Done! Never waste people’s time. If you waste theirs they will waste yours.

Now that you know how to make your meetings super-efficient, don’t forget to file your annual 990 Forms with ExpressTaxExempt. If your organization operates on a fiscal tax year starting in February your IRS Form 990 is due this Friday, June 15th.

ExpressTaxExempt helps 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.

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5 Nonprofit Myths You Need To Leave in 2018

Do you remember getting in trouble for telling a “little white lie” while growing up? Well, a few white lies and myths are floating around regarding nonprofit organizations that we want to do away with, starting today. Here are five nonprofit myths you need to leave in 2018. 

5 Nonprofit Myths You Need To Leave in 2018

1) Form 990 only has to be filed every 3 years

Tax-exempt organizations are required to file Form 990 tax returns annually. If an organization fails to file IRS Form 990 for three consecutive years, their tax-exempt status will be revoked. 

2) My organization used all our donations for the year and has no money left. There is no way we can be penalized for failing to file

Myth! IRS penalties are calculated based on the gross receipts of an organization, not its income. For this reason, organizations must file a Form 990 [annually] regardless of the amount of money that remains after the organization’s tax year has ended. 

3) Nonprofits only report substantial contributions on IRS Form 990

Too easy, right? A tax-exempt organization filing IRS Form 990 must report all donations. You will also need to include contribution details for donations $5,000 or more.

4) All small nonprofits can file Form 990-N

Private foundations must file a Form 990-PF regardless of their size or gross receipts. To learn more about IRS Form 990-PF, click here.

5) Nonprofits focus on big donors, not small ones

Lies, lies, and more lies. Nonprofit organizations are thankful for any donation they receive! As a nonprofit leader, you know how hard it is to muster up funds to adequately impact your community.

Although large donors are great and help sustain the work of your organization, be sure to also focus on those that make smaller donations to keep a good “cushion” of donors.

The Truth Sets You Free

As you lead your organization into the second half of 2018 leave these nonprofit myths behind and walk in truth. Don’t forget to keep detailed financial records and documents so you can be prepared to file your organization’s Form 990 at the end of your tax year.

ExpressTaxExempt offers a simplified e-filing process to handle your annual 990 tax filings and takes pride in keeping nonprofits compliant with the IRS. If you have questions or concerns, please contact the experienced team of experts located in historic Rock Hill, SC. We are available by phone, live chat, and email in both English and Spanish for your convenience. Click here to contact us today! 

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How To Prepare For The IRS Form 990 May 15 Deadline

Tuesday, May 15th is the deadline for tax-exempt organizations operating on a typical calendar tax year to file Form 990. The key to stress-free filing is learning how to prepare for the IRS Form 990 deadline.

What is Form 990?

IRS Form 990 is the annual financial and informational return filed by all tax-exempt nonprofit and charitable organizations. Before we get into the information you are required to file let’s review the 990 Form Series. Your organization's type and financial situation will decide which nonprofit tax return Form 990 you will file.

There are four types of 990 Forms in the Form 990 Series. Select and e-file the appropriate nonprofit tax return Form 990 based on the following requirements:

Form 990-N (e-Postcard) - For organizations reporting gross receipts less than $50,000

Form 990-EZ (Short Form) - For organizations reporting gross receipts less than $200,000 and total assets less than $500,000

Form 990 (Long Form) - For organizations reporting gross receipts equal to or greater than $200,000 and total assets equal to or greater than $500,000

Form 990-PF - For organizations identifying as an exempt private foundation, taxable private foundation, or a nonexempt charitable trust treated as a private foundation. 

How To Prepare For The IRS Form 990 May 15 Deadline

Gather & Organize Necessary Documents

Before filing your organization’s 990 Form, take the time to gather all your required information. If you are not organized, you will find yourself wasting countless hours searching for financial information; which is never fun.

Depending on the Form 990 you are required to file, you may have to report various details such as revenue and expense amounts, program services, a list of employees, financial statements, governance and more.

Know What Information You Need

Well since we’re on the topic of required information let’s go ahead to get to it. Here’s what you will need when you file your 990 Form with ExpressTaxExempt:

Information Needed To File Form 990-N
Employer Identification Number  Legal Name Fiscal year period	Principal Officer Current Address Gross Receipts under $50,000

Information Needed To File Form 990/990-EZ/990-PF
EIN Legal Name Fiscal year period Current Address Contact number Exemption type List of Officers and Key Employees Prior year return Contributions for the past 5 years Other Revenue details Expenses  Investment Income details Numbers of Employees, Contractors & Volunteers	Organization’s Mission Accomplishments for the year (Grants Paid, Projects finished etc.) Donor Advised Fund Information Endowment Funds Information Assets (Art, Historical treasures etc.) Policies Details of Activities  (Political, lobbying, foreign transactions etc.) Related organizations

File Like a Pro with ExpressTaxExempt

Now that you know how to prepare your IRS Form 990 you can easily file your IRS Form 990. At ExpressTaxExempt we support your organization by providing a simplified, interview style filing process, automatic schedules and worksheets, retransmit rejected returns for free, support prior year filing and more!

Success starts with ExpressTaxExempt, so take the first step in maintaining your nonprofit’s tax compliance by signing in or creating your free ExpressTaxExempt account today.

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The Best Way To Encourage Online Giving

As a charitable nonprofit you rely on the support and generosity of donors for some or all your funding. While some of you are still using traditional giving methods, online giving has become the “new norm.” Here is the best way to encourage online giving.

Transitioning from traditional to online fundraising is simpler than you might think; plus it will increase your donor base from just your local community to national.

How To Create Online Fundraising Your Donors Will Love

Implement Online Giving

We spend hours on our cell phones or tablets each day, so it is safe to say technology reigns supreme. If you are not already using online fundraising, you are missing out on a major opportunity. 

As a nonprofit organization, it is critical to invest in simple online giving methods. Consider having a mobile version of your website created and utilize easy online donation programs such as PayPal, Square [Cash App is great too!], Givelify, etc. 

Keep Your Donation Form Short

Let’s be honest; no one wants to spend half an hour trying to donate to your organization. Simplify your donation form and eliminate unnecessary fields.

Typically donors will only briefly scan your donation forms before deciding to give. If your form appears long, extensive, and complex, you may be losing out on potential donors.

Test your platform. Ask a friend or third party to complete the form themselves to see what they found confusing, time-consuming, and flat out annoying. You have seen your donation form a million times, and you understand all the information asked. However, having someone unfamiliar with your donation process will gain a better understanding of what the average donor sees. 

Easy Access To Online Donation Form 

The easier it is to access, the easier it is for people to donate. 

Accessing your organization’s online donation platform should be a piece of cake for potential donors. If they have to go on a scavenger hunt to find a way to donate, they will likely give up in pursuit.

Large, colorful and clear “DONATE” buttons are always the way to go. Consider having a donate button at the top and bottom of your website or page, but do not go overboard with the donate buttons. The last thing you want to do is harass your potential donors and readers for an online donation.

Close With A Strong Call To Action (CTA)

Now that you have driven potential donors to your organization and informed them of the great things you do in your community, prompt them to donate.

This can be done through a “Donate Now” button or link that instruct donors on how they can make a difference such as, “Help Us Make A Difference In Your Community!”

Believe it or not, there are thousands of people that are looking for a charitable cause to donate to each year. Utilize these tips to attract potential donors and maintain your much-needed donor base. Once you have received donations be sure to keep accurate records so you can accurately file your 990 Form with ExpressTaxExempt at the close of your organization’s tax year.  

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