Nolo’s Fundraising Tips for Busy Nonprofits

As reported by MarketWatch, Schwab Charitable recently released eight tips for donors wanting to stretch their charitable dollars during this giving season. While many of the tips are more financially sophisticated than the average donor is likely to use, one of them is simple enough for anyone: "Give time and expertise."

In fact, people I know who've recently lost jobs have mentioned volunteer work as a way to fill the gap and make new contacts. As a nonprofit, now is a great time to reexamine how you're using volunteers, and what opportunities you can offer that will help both your organization and the volunteer.

For those of us still working full time -- and working harder than ever, to keep our companies productive during a down economy -- the right choice of volunteer work can offer a great balance to a busy day. I'm still enjoying the break from work that volunteer dogwalking gives me; here's on of my latest furry friends. His name is Capo, a Chihuahua mix available at the Berkeley East Bay Humane Society.

Sometimes a simple "thank you" is the best way to forge connections between a nonprofit and its supporters -- and that's just what People's Grocery recently did, with its "Flavors of the Garden" party. People's Grocery is a relatively new organization, developing creative solutions to the health problems in West Oakland stemming from a lack of access to and knowledge about healthy, fresh foods. Their projects include operating community gardens to grow and distribute organic fruits and vegetables, youth training, nutrition and cooking classes, and more. You can also sign up for a regular "Grub Box" of organic seasonal produce, the cost of which helps sponsor similar boxes going to low-income residents of West Oakland.

The party was billed as "a special thank you celebration for all our Harvesting Justice Table Captains, volunteers, donors, & supporters with delicious appetizers and yummy beverages crafted by local Bay Area chefs from organic seasonal produce grown at People's Grocery's gardens and farm. See the new Grub Box, meet the people who are People's Grocery, listen to live music and taste the flavor of summer with People's Grocery."

It lived up to its billing -- great food and music, good company, all in a lovely urban garden setting. But, the cynic might ask, did it directly contribute to their bottom line? Well, from my limited one-person view, I'd say yes. For starters, I was there as the guest of a volunteer, but the entry person was prepared for folks like me, and put my name on their mailing list. I know I'll be hearing more from them, but that's good -- I encourage organizations to make sure everyone who shows the slightest interest has their name captured for future contact.

And I heard one volunteer, perhaps inspired by the good time she was having, say, "I want to give People's Grocery more money after I get my next disability pension check -- I hope it doesn't go down too much with the whole economic crisis, but I'll try to give anyway." I'll let that one speak for itself.

Leyna Bernstein, of The CBO Center in California's San Francisco Bay Area, is passionate about getting board members to not only agree to but enjoy the money-raising part of their role.

But, as she notes, many board members shy away from anything to do with fundraising, perhaps picturing themselves sitting uncomfortably across the table from someone and asking them for a $25,000 check.

To hear Leyna's discussion about how to assuage board members' fears, find creative ways for them to support your fundraising efforts, and ultimately turn around an unwilling board, listen to my recent podcast.

Is a newsletter for members in your nonprofit's future? Or are you wondering why your existing newsletter isn't getting the results it should?

Check out the latest of my interviews with expert nonprofiteurs. This time you'll hear from Cheryl Woodard and Lucia Hwang, authors of Every Nonprofit's Guide to Publishing, talking about how your nonprofit newsletter can make money. Some of Cheryl's clients bring in money with every newsletter they publish, and you can do the same -- by first paying attention to important tips on budgeting, using volunteers, and writing text that excites -- rather than bores -- the reader. 

Here's an interesting blog post by Christopher Campbell on Cinematical, talking about the practice of enlisting movie theatre ushers in efforts to collect donations for nonprofits.

At first glance, it sounds like a reasonably creative idea: The ushers will be walking the aisles anyway, among theatre-goers in a presumably good mood. Why not have these ushers carry a can to collect some coins for a cause?

But as Cristopher's blog points out, the results have made some patrons feel they were being hassled -- especially when ushers were given incentives to "do whatever they could to get as much money as they could." He describes some ushers' aggressive tactics, including name-calling behind the non-givers' backs, and other ushers who may have skimmed money from the donation jar, referring to it as the "cigarette fund."

If ever there was a reminder that every volunteer needs proper training, this is it. I'm guessing those ushers didn't feel they had much choice in their charity collection activities. Did they receive an in-depth orientation from actual members of the charity, to inspire them about the cause and make sure they were committed to helping out? The blog doesn't say.

Before your organization says, "Wow, free volunteer help!" in any similar way, make sure to do the training first, to avoid the need for damage control and retraining later. And if it's going to be an ongoing effort like this one, follow up to see how it's going.

I seem to have been attending a lot of meetings lately, both in for-profit and nonprofit settings. That's given me a chance, while I wait for people to file in, to notice that it's often the meetings where the announcement contained the magical word "food" that draw the most attendees.

That's hardly a headline-worthy revelation -- but then why are some organizers still missing their chance at a little bribery? Particularly when the weather is getting better and motivation to sit around inside is going way, way down?

Maybe bribery is too harsh a word -- anthropologists can give us plenty of examples where the first words out of a host, even when greeting a stranger, concern whether the person would like some food. It's a primal welcoming thing.

Anyway, if the reasons are budgetary, that doesn't seem like much of a barrier. No one needs to promise a hot gourmet meal, just some snacks. In fact, two or three people planning to come (board members or other volunteers, for example) can be asked to bring those snacks. Some cookies, fruit slices, nuts, and cheese and crackers will not break anyone's budgets.

Here's a dog I've been walking for weeks who still hasn't been adopted. I think of her as a metaphor for some nonprofits -- nothing out of the ordinary on paper (she's 8 years old, which is a hard sell), but amazing once you get up close.

Colleen has a hilariously cute habit of greeting people with a chew toy in her mouth, running back and forth making an odd sighing sound that may be due to a past owner having cut her vocal cords. Unlike many dogs I meet at the Humane Society, she remains good natured even as the weeks go by -- doesn't get jealous when I go to walk other dogs, doesn't act demanding or desperate.

On the radio this morning, a caller to a talk show raised the issue of why people choose certain charities or causes and ignore others. The example given was that people in Britain give more to animal charities than to those helping victims of domestic violence. I do sometimes ask myself whether there isn't something more immediately useful I should be doing than dogwalking. And I haven't come up with a brilliant answer, except to say that spreading happiness can't be a bad thing, even if it's via a lonely dog.

I got a nice surprise the other day while filling out my federal tax return: That $10 apron I'd had to buy in order to walk dogs at my local Humane Society (modeled at right) was tax deductible! (And I was looking for every deduction I could get, given the number of unpleasant surprises in this year's return - but that's another story.)

It occurred to me, however, that while most nonprofit organizations do a good job of reminding contributors of money about the tax deductions they'll enjoy, very few say much about tax deductions their volunteers can take. And these volunteers might include everyone from board members to advisory council members to those who assist at special events or commit to regular activities.

True, we're probably not talking about big bucks, since there's no tax deduction for the very thing these volunteers contribute the most of -- their time. However, on the "every penny counts" theory, here's what the IRS will allow volunteers at nonprofits to add to their list of deductions:

• Car and transportation expenses. Volunteers might need to get back and forth from home to your office, or to meetings or other sites (such as a special event or to deliver food to a homebound AIDS patient). If driving, they can choose between deducting gas and oil, or mileage at the standard rate of 14 cents per mile. As Stephen Fishman advises in Lower Taxes in 7 Easy Steps, however, "Given the cost of gasoline today, the 14 cent per mile limit is absurdly low, so you'd be better off keeping track of your actual driving expenses." Volunteers can also add in parking fees and tolls. But they can't claim general car repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. The public transport-minded can, of course, deduct subway, bus, or taxi fare.


• Travel expenses. In cases where the volunteer is away from home performing services -- perhaps attending a convention or board meeting, taking underprivileged kids on a camping trip, or monitoring environmental destruction -- they can deduct their related expenses, such as airfare and other transportation, accommodations, and meals. However, there are important limitations on this one: The volunteer must gain no significant personal pleasure, recreation, or vacation in the travel. (Going on a fun trip and refusing to enjoy it probably won't make it deductible, either.) And the volunteer must really be working -- tagging along on an outing while performing nominal duties, or even no duties for significant parts of the trip, won't cut it.


• Other out-of-pocket expenses. For example, board members might deduct unreimbursed phone, postage, and copying charges associated with preparing for meetings. I can deduct the dog treats that I'm asked to provide in order to help train dogs while walking them.


• The aforementioned uniforms. This includes both their cost and their upkeep, so long as they're not suitable for everyday use (i.e. a T-shirt with a logo won't fly). Also, your organization must require the volunteers to wear the uniforms while performing services.

Some limitations apply to all deductions associated with volunteering. Volunteers must be itemizing their deductions to take advantage of this (so people who fill out a 1040EZ won't get any benefit). Volunteers cannot double-dip by claiming expenses for which the nonprofit already reimbursed them. The expenses must be directly related to the volunteers' work, and incurred only because of that work. They can't be personal, family, or living expenses (such as meals for children while they accompany the volunteer to a convention). And volunteers must keep reliable written records of the expenses.

Of course, in alerting volunteers to their potential tax deductions, you don't want to get into the business of giving personalized tax advice. For more information, suggest that they see IRS Publication 526, Charitable Contributions, or talk to a financial adviser. Tax-preparation software programs also provide guidance on this deduction.

I've had some inquiries about whether I'm still walking dogs for the Berkeley-East Bay Humane Society. The answer is yes, though they've been able to take in fewer dogs lately due to a fabulous remodeling project. (The dogs are getting new enclosures, and the whole place got a new paint job.)

But here's Boston, a nine-year-old black lab whose owner had to give him up because of medical problems. He's facing the camera because there's nothing he likes better than to press the top of his head against your stomach for a hug. Sigh.

Want to guess at the biggest line item in your organization's budget? It's probably salaries. No wonder layoffs are often an inevitable consequence of lost funding. That's where volunteers can be such a boon -- they add to the man-and-womanpower of your staff without costing a dime. (Well, maybe enough money for a stipend; for example, if you successfully apply for the services of a Jesuit volunteer, who serves full-time for one year.)

But we all know the flip side: If you don't pay people, they can up and leave whenever they get bored, have exams to study for, or get a better offer. So, here are some hot-off-the press tips for keeping volunteers around, drawn from the newly released 2nd edition of Nolo's Effective Fundraising for Nonprofits.