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The office holders of not-for-profit organisations have the same legal responsibilities as board members of larger, incorporated associations. Regardless of your nonprofit’s size, or mission, you are accountable to all of your stakeholders. This includes your donors, and the various state governments and regulatory bodies that oversee charities where you are located.

At all times, your NFP must operate in a manner that ensures your finances are sound, as well as act in ways that support your stated mission, and under which you receive any tax exemptions. This means that not only do you have to keep up with the books and reporting requirements, but you also need to take steps to protect your nonprofit from a myriad of potential financial losses.

Loss of Tax Concessions One of the Many Consequences

When the treasurer and other officers fail to follow through on their fiduciary duties, such as when internal fraud occurs, they can face severe penalties, including criminal prosecution. However, the folks that suffer the most are the nonprofits themselves and the people who benefit from their services.

For example, a loss of tax concessions can lead to a loss of donations, and, can make it more difficult for nonprofits to fund their operations and services. In 2017 the news was filled with stories about Australian nonprofits losing their preferred tax status for failing to meet their financial obligations.

In 2017, it was widely reported in the Herald, and other news outlets, that six nonprofits in Northern and Central Victoria lost their Commonwealth tax concessions after failing to provide the Australian Charities and Not-for-profits Commission (ACNC) with required financial statements for over two years.

The article stated that these NFPs join 590 other nonprofits that had recently lost their concessions for similar reasons. Over 1,300 not-for-profits were also warned earlier in the year that they were in danger of losing their tax preferred status.

Protect Your NFP with Updated Software

Admin Bandit’s software suite can help your nonprofit avoid a similar fate because it makes it so easy to stay on top of all your required tasks, from keeping up with the books, to creating budgets, filing GST and other required statements.

Using an updated software system that stores everything in the cloud can also protect your NFP from losses due to internal theft and fraud. It can also make it easier to spot these types of losses, and help you make sure that someone is keeping up with the books on a regular basis, especially if they are occurring outside of your direct control, such as in an affiliated branch office.

For example, with Admin Bandit, parent organisations can run an operations report that allows you to see when transactions occurred, when they were entered, the amount, and when the account was last reconciled. Information like this can point the way to potential trouble that may be occurring in your main office, or in NFP’s branch offices.

Contact us today to learn more about how we can help your NFP fulfil its reporting requirements, reduce risk, and meet other legal requirements.

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We would like to take this opportunity to wish you all a very Merry Christmas and a happy new year. As always, we appreciate your support and hope to assist you in 2018. What an exciting year it is going to be!

But for now – put your feet up, enjoy that glass of wine and we will see you back in the New Year!

Living in a digital age means that it’s increasingly important for nonprofits to be aware of the latest technological advances and how to use these tools to grow their NFP’s base of support. Some of the following ideas might be just the inspiration that your nonprofit needs to find new opportunities to encourage greater giving and expand the services that you provide.

Improve Your Storytelling and Increase Your Reach

Social media is a great way to bring together increasingly diverse groups of people. Use this tech to reach out to the individuals connected with your NFP and discover more about their personal experiences. Use this information to inform your storytelling.

When you allow everyone’s unique voice and experience to shine through, it increases the variety of perspectives and points-of-view you offer supporters, making your stories more relevant, and interesting, to them.

Once you have some great stories to share about your nonprofit, encourage everyone connected with your organisation to use multiple digital channels to share your posts with their networks to increase awareness about your NFP and its work.

Embrace Big Data

Larger, for-profit organisations are known for using “big data” to help them identify trends to drive greater creativity and innovation. Nonprofits can benefit from this technology by using both data and its related analytics to shape their strategic planning, test and adjust messaging, and develop more effective processes.

Using data can also increase transparency in the decision-making process while making it easier to identify areas for potential collaboration with others. Since most NFPs are constantly under pressure to use their scarce resources more wisely, collaborations make it possible for nonprofits and their partners to share their limited resources and accomplish more together than they would have on their own.

Big data’s analytic tools even make it easier to identify your NFP’s current key social influencers, as well as identify and recruit new ones that can make it even easier to spread messages about your work, and how others can join your efforts.

Use the Cloud to Increase Access and Security

Saving your nonprofit’s data in the cloud makes it easier to secure your nonprofit’s sensitive information. If your NFP’s data is only stored on a local computer, external drive, or physical printouts, it’s more likely to be damaged by a fire or flood. It’s also easier to manually alter information when it’s stored locally, or to steal it outright.

NFPs can also control access to cloud-based documents and programs more easily. Most cloud-based drives create a record of what user logs in, when they do so, and what specific information they view, offering a further deterrent to fraud and other forms of theft.

Many cloud drives make it easy for you to invite other users to collaborate on specific files. This makes it easier for others in your organisation to work together on projects and other shared activities, and increases productivity.

While your nonprofit should be showing gratitude to your supporters throughout the year, holidays like Christmas are a special time. Get into the spirit of the season by putting some extra thought and effort into the ways you thank others for their donations.

The following tips add a festive touch to the ways you acknowledge others for their contributions to your organisation.

Celebrate Recurring Donors

Reward your donors’ loyalty to your organisation by sending a personalised thank you note that recognises the anniversary of their support. For example, if a supporter has sent you a contribution every year for the past ten years, be sure to thank them for supporting your NFP over the last decade. Talk about the impact that has been made due to their support, and recount some of the progress that your organisation has made during that time.

Remember Their Name, and Use It

Nonprofits collect a lot of demographic information about their supporters. Use this information to make your donors feel appreciated. Always personalise your notes of gratitude by using your donor’s name.

Include handwritten notes inside your Christmas cards and other communications. Continue reaching out through the entire year. For example, if you collect donors’ date of birth, reach out on their birthday with a note or phone call congratulating them and wishing them all the best!

Customised Stocking Stuffers

A number of novelty gift shops and speciality printers make it easy, and budget-friendly, to give customised items like mugs, calendars and more at a reasonable cost. While you could personalise these items with your NFP’s logo and tagline, consider going the extra mile for your VIPs and include your donor’s name on the gift item as well!

Give Sweets and Other Treats

If you have some skilled bakers on your team, recruit them to make smaller versions of holiday cakes and breads that you will wrap and send to supporters. Include a handwritten card or note thanking them for their contributions. If no one has time for cooking, you could also send out some attractive chocolate bars, or other prepackaged, but delicious, holiday candies or cookies. Wrap them up in a festive bow or package them in a holiday-themed tin.

Videos and Highlight Reels

Because of the hard work of your volunteers, staff and donors, your organisation has accomplished a lot this year. Make a video to send to your donors and other supporters that thanks them for their efforts and visually shows the impact created by their work.

Ideally, this video should include several candid snapshots along with short snippets of footage you’ve shot during many of your NFP’s service projects and events. Include parts of testimonials from some of your beneficiaries, board, staff, volunteers and, your donors. Gather together some of the folks connected with your organisation and ask them to hold up signs or letters that spell out the words thank you in the closing moments of your video.

If you want to build authentic relationships that lead to increased loyalty and participation, then you need to be present in the same place as your supporters, and, be a part of their conversations. Blogging is an easy way to accomplish this task.

According to statistics provided by blogging.org, there were nearly seven million blogs in 2016. Blogger, one of the most popular blog creation sites, has over 47 million unique visitors to its blogs each month. It’s also been shown that organisations that blog generate 67% more leads, and views, than those who do not have a blog and fail to post regularly.  

This data perfect illustrates exactly why blogging is the perfect platform for nonprofits to engage with others. It’s the one online location where many of your potential supporters already happen to be!

Nonprofits that blog regularly benefit from the following advantages.

Build Trust in Your NFP’s Brand

When you share your knowledge with others through your blog posts, you quickly become a reliable source of information for those that share your values and are interested in the issues your cause is trying to address.

Establishing trust is essential, because, when others view you as trustworthy, they are more likely to become supporters and take action to help. This is true whether that action is jumping on board as a volunteer or advocate, or making a financial contribution that enables you to continue our work.

Once someone makes the conversion from being just another visitor to the site to becoming an actual supporter, they are also more likely to share your posts with others and help spread the message about the issues and the change that you are trying to create.

Keep Your Supporters Updated

What’s the best way to get the word out about important information that supports your nonprofit and its supporters? The answer really does depend on what you are trying to say.

For example, Twitter tweets are a great way to send out a reminder, or a quick alert about an upcoming event. Instagram is an ideal way to illustrate your nonprofit’s impact visually, and Facebook is awesome to share posts that ultimately increase traffic to your site and generate discussions about your latest happenings.

Blogs, by design, are really the best place to post your lengthy content. Create posts that give the details about the progress you are making, or that offers an insider’s view of the work performed by your volunteers and other supporters. It can even be a superb way to increase transparency when you discuss the actions your NFP is taking to create solutions or your success in obtaining funding for specific projects.

Raise Awareness

Blogging will also generate interest in your cause because it’s an organic way to find new supporters. Not only will your website rank higher in search engine results, but, when your blog has been created directly within your NFP’s website, every time someone shares one of your blog posts, they are sending their friends to a direct gateway to your NFP. Once they arrive at your site, it’s then easier to direct them to even more content where they can learn more about your cause and what they need to do to help!

With the exception of time, blogging requires very few resources. However, it can offer great rewards to those who put in the effort to create interesting content that is relevant to your visitors and encourages them to directly interact with your nonprofit!

2017 is coming to a close, and in a few short weeks, it will be time to ring in the New Year. This transition is more than a simple date on the calendar, however, it’s also the perfect time to take stock of your strategic plans and prepare for the changes that 2018 is expected to bring.

To help you start the year off on the right foot, we’ve created a list of the top social media trends for 2018.

Twitter

Nearly a month before year’s end, Twitter surprised users with the announcement that it has doubled the character limit for posts, from 140 to 280 characters. This change should give nonprofits and other users the ability to add more depth to their Tweets. Just be careful and don’t use the expansion as an excuse to add unnecessary words and fillers to your posts. The eloquent shortness of a Tweet was a major factor in the platform’s appeal.

Live Videos

Over the past few years, we’ve seen nonprofits begin to jump on the video content wagon as one of the new and exciting ways to vary their storytelling to expand the reach of their messages and raise awareness about their cause. In 2018, NFPs need to be aware that a growing number of users are showing a distinct preference for live streams over pre-recorded videos that are downloaded and watched.

Look for ways to take advantage of the popularity of this trend, and increase support for your nonprofit, by making live-video of auctions, fundraisers, ceremonies, and other events available and easily accessible.

Augmented Reality

A number of platforms and businesses are using augmented reality to blur the line between reality and fantasy. Companies like Ikea are using AR to create digital overlays over the physical world and make it easy for their customers to see how specific items of furniture and accessories will look in their homes.

Various online games are using it to create more interactive experiences for their consumers. Snapchat has been using AR face filters to make chatting with connections more fun, thereby increasing the amount of time users spend on the platform with others.

AR is still in its infancy as a technology, so folks haven’t even really begun to fully think about and conceptualise what can be done with it. From an industry standpoint, don’t be surprised to see enterprising nonprofits start to adopt the technology. It will make it easier for donors to really “see” the full impact of donations at specific levels, or use it in other ways to make it easier, and entertaining, to connect with their supporters in real time.

Virtual Reality is somewhat related to tech, in that it allows users to fully immerse themselves into a digital experience. Facebook Spaces is one of many soon-to-be-released social media tools that will allow users to create a virtual reality where they can interact with others.

Nonprofits should watch out for ways to use both AR and VR to enhance their storytelling and interact with supporters in new and exciting ways.

The Power of Influencers is Increasing

Obvious marketing and advertising ploys have become very unpopular with the public in recent years. The challenge of for-profit organisations is to convince others to support their brand without making it evident that they are selling something.

To achieve this, commercial enterprises have increasingly been turning to endorsements from celebrities and trendsetters to tap into the popularity of these personalities to increase appeal for their brands.

To increase their support and build their own brands, nonprofits should look for ways to attract the support of key influencers. Endorsements from celebrities and other thought leaders can help raise awareness about an NFP’s cause, encourage greater giving as well as help with the recruiting of top talent to become members of staff and volunteers.

Short Lived Content

Snapchat popularised this concept, but an increasing number of social media channels are making it easier for users to create specialised ad campaigns and other content that will disappear rapidly. Even though the content is only visible for less than 24 hours, it helps to generate a sense of urgency in viewers and encourages them to take action. Both for-profit and nonprofits are expected to take advantage of this new type of content that is also known as ephemeral, or disappearing, content.

The Rise of the Bots

Chatbots have been around for years, and got their start on message boards and online forums during the Internet’s infancy. Their incorrect use of syntax and language, however, made them rather obvious, and easy to avoid. The technology has progressed to the point, however, that it’s become increasingly difficult to tell a chatbot apart from an actual human. It may be worth investing in a chatbot on Facebook and other social media platforms to help drive engagement during fundraising campaigns and other online events.

Technology is continually changing and evolving. Staying current on the latest trends will help your nonprofit stay ahead of the curve and build your brand’s reputation and strength.

For generations, NFPs have placed their focus on raising funds from individual donations, endowments and grants to finance their operations and the services that they provide. This traditional approach could be holding your nonprofit back from being able to maximise its potential for growth.

Don’t Rely on Fundraising Campaigns Alone to Pay for your Operations and Goals

Fundraising will always be a crucial source of funding, but it shouldn’t be your sole source. The challenges faced by nonprofits today require more funds than what a few donations and grants can provide.

Rather than relying on fundraising campaigns alone to fund their mission, NFPs are better served by looking for a multitude of ways to finance their ability to serve their communities over the long-term. The following ideas can help your nonprofit to expand its sources of funding.

Cost Effective Campaigns

Many NFPs cycle through dozens of fundraising activities throughout the year, with very little downtime in between each fundraising activity or event. Holding several events during the year can literally wear out your staff and volunteers, not to mention your regular donors and other supporters!

When NFPs start to look for new sources of funding, they begin to move away from the mindset of, “What can we do with the amount that we’ve raised from our latest fundraiser?” They begin to see things from the perspective of, “How much must we raise to accomplish our goals, and, what are some different ways that we can secure the funding necessary to accomplish our short and long-term goals?”

Rather than focusing on the number of fundraisers to host in each year, the focus moves to how much net revenue is generated by each fundraiser. If a fundraising activity is costly in terms of time, money and other resources, and produces very little in terms of revenue or other benefits, then it’s discarded for activities that offer a higher net return.

Do Your Supporters Understand Your NFP’s Impact?

When fundraising, nonprofits typically place a great deal of emphasis on messaging, and, understanding the needs and values of core supporters and the intended audience. Targeted messages remain important.

Rather than focusing solely on answering your supporters’ questions and fulfilling their needs, however, NFPs need to do a better job with their messaging and make sure that supporters understand why the mission is important and how they can help your organisation create positive change in the community.

Just Because You’re a Nonprofit Doesn’t Mean that You Should Avoid Generating Revenue

A lot of nonprofits worry that charging for some, or all of their services, will be too complicated to get into, or, will distract them from achieving their overall mission. If your nonprofit lacks the monies that it needs to fund critical infrastructure, such as training and the appropriate software and other tools it needs to be effective, it may be time to rethink this strategy.

Just because your organisation is in the not-for-profit sector does not mean that you shouldn’t seek to raise revenue. Many nonprofits can increase their capacity and encourage greater growth by charging membership and rental fees for items such as equipment and storage. They might also charge for some, or all of their services. Others even sell products to help finance their overall operations as well as specific projects.

To increase the chances of success, nonprofits should look at their overall financial condition before they enter into activities designed to raise money for the cause. They should take steps to ensure that the activity that is generating revenue doesn’t interfere with their ability to provide critical core services while meeting their other financial obligations.

Should Your NFP Borrow to Finance its Goals?

Due to the unpredictability of any given fundraising campaign’s success, most nonprofits avoid debt. Taking on a loan might be a good move for your nonprofit, however, if it allows your NFP to expand its capacity to provide services, fund infrastructure and other capital improvements, and support long-term growth. As an alternative to loans, your NFP might want to consider earmarking funds in the budget specifically for projects and improvements that support long-term growth, as well as hosting specific campaigns to raise money for capital improvements.