Some Lessons for Nonprofits After Doing my Taxes

I just finished tallying our 2020 donations for our taxes. Always a fun task. Going through all the donation letters and emails triggered a few insights I’d like to share.

Sending a yearly donation summary is very helpful

Most of the gifts I make are monthly donations, and organizations that sent a summary of all those gifts made it so much easier for me. I made some additional contributions when the pandemic started and those were also included.

You may not need to send a summary if someone just made one gift. Your thank you letter can include the important tax information, but there’s no guarantee your donor will keep that.

My suggestion is to send all donors a yearly summary of their gifts the following January. Send it by mail, if you can. This is also an opportunity to reach out. Make it more than just a receipt. Thank your donors and let them know how their gift helped your clients/community during the past year. Some organizations send two pages – one is a thank you letter and the other is a list of all the donations.

Did you forget about me?

I make a spreadsheet of all our donations. I’ll copy the one from the previous year and make changes as needed.

While I was doing this, I discovered I never gave to an organization that I had the previous two years. I forgot about them, but they also forgot about me.

My speculation is they never sent me an appeal. If they sent one by mail, I would have noticed it and made a point to donate again. If it came by email, who knows since I get so much of it.

I also don’t remember this organization communicating in other ways, such as showing gratitude and sharing updates.

I’ve now set up a monthly donation for this organization, so I won’t have to do anything until the credit card expires.

If you don’t even bother to send an appeal letter (and you should send at least one by mail for each campaign), you can’t expect your donors to always remember to give. Running a multichannel campaign with scheduled reminders will help. But you do need to ask, as well as communicate in other ways. 

Don’t let your donors forget about you.

No monthly donor hiccups last year

In past years, I noticed my monthly donations sometimes stopped getting charged to my credit card. Most likely it was because the organization changed their donation platform.

I’m happy to report that this year none of them mysteriously stopped charging. A few organizations did change their donation platforms, but contacted me ahead of time so I could switch to the new system.

If you’re planning to change your donation platform, be sure to give your donors a heads up so you don’t lose any donations. And, be sure to flag expiring credit cards, as well.

Pay attention to what’s going on with your monthly donors. These are some of your most valuable donors.

Donor communication is a mixed bag

It’s not surprising that some organizations do a better job of communicating with their donors than others. A few knock it out of the park, but most range from okay to nonexistent.

If you use PayPal for your monthly donations, they send a receipt each month. In some cases, that’s the only time I hear about that gift. Are you letting PayPal do your work for you?

Other organizations do send their own automated monthly gift receipts and that’s about it. I’ve mentioned before that these can be helpful, but don’t count as a legitimate thank you or any type of donor communication.

Besides monthly donations, I gave some additional donations last year to emergency campaigns when the pandemic started. Some organizations noticed, some didn’t – typical. One organization thanked me by sending a personalized video. Others sent handwritten thank you cards, as well as some pre-printed ones, but they were cards I received in the mail! 

It’s often the same few organizations that go the extra mile, so the rest of you need to step up.

Always remember that better donor communication will help you raise more money. 

Photo via www.audio-luci-store.it

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