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The Essential Nonprofit Annual Report Template & Full Guide

Posted on by Posted in Fund Development

Schedule a Bloomerang demo by clicking here to see how our donor management platform can help generate insights for your next annual report.
Many nonprofit professionals greet the annual reporting process with apprehension. This is because nonprofit annual reports have a bad reputation. They’re often seen as a drain on time and resources.

However, you don’t need to dread the creation of your annual report! When well crafted, this resource can be a vital tool to retain and grow donor support.

This post is designed to guide your organization through the nonprofit annual report creation process. We’ll walk you through tips to make your report as effective as possible (with helpful templates along the way to provide formatting examples). Here’s what to expect:

Ready to dive a little deeper into nonprofit annual reports and learn how you can craft yours to maximize the impact at your organization? Let’s get started.

What is a nonprofit annual report?

A nonprofit annual report is an externally-facing resource that recaps an organization’s accomplishments and challenges within a year. The audience for this report is the donors, volunteers, constituents, and other stakeholders who have been involved with the organization’s projects and programs throughout the year.

Traditionally, this report was a printed document or brochure shared with relevant stakeholders. Nowadays, annual report formats vary widely. They can be presented as PDFs, videos, interactive web pages, online booklets, or in other unique formats.

Are nonprofits required to publish annual reports?

In short: no. You may be thinking of Form 990 — every year, nonprofits are required to submit a Form 990 to the IRS. This document contains information about your nonprofit’s revenue and expenses throughout the year. Because this information is publically available, supporters can use your nonprofit’s annual Form 990 to track your financial transparency.

Technically, Form 990 is the only required annual report for nonprofits. However, your annual tax form doesn’t thank your donors, make them feel proud, or give them new reasons to engage and grow their relationship with you. A comprehensive annual report can fill this role. That’s why we highly recommend including a full-fledged annual report in your annual strategy.

Nonprofit annual report template

So, what should a nonprofit annual report include? Here is a basic template that can provide a starting point for building your annual report strategy:

This basic template shows the essential elements of a nonprofit annual report, which are described in more detail in the text below.

As shown in the template, your annual report should include the following elements:

  • Your organization’s mission statement. Feature your mission statement at the very beginning of the document. This will provide context for those who may not be as familiar with your organization and serve as a reminder to those who are.
  • Financial information. Again, be as straightforward as possible with these numbers for transparency with your supporters. Donors want to know how you used their funds, so show them that your nonprofit is a responsible steward of their donations by providing context behind major expenses. Get specific about what you were able to accomplish by including statistics about the total number of people you helped, animals you rescued, etc.
  • Projects from the year. What projects did you start? What did you finish? Which digital fundraising campaigns were most successful? What still needs to be done in order to reach your nonprofit’s goals? Include photos or videos to show what your efforts looked like.
  • Appreciation for your contributors. This is a great opportunity to acknowledge and appreciate your nonprofit’s donors. You can also thank other key stakeholders like volunteers, corporate partners, and board members.

Since there is no legal requirement for nonprofits to publish annual reports, there are no specific guidelines for what you must include in your report. However, if you completely omit your financial information from your report, for instance, some supporters may consider it fishy. Promoting full transparency is key to maintaining donor trust and your nonprofit’s reputation.

6 best practices for creating your annual report

Now that you have a basic understanding of the elements of an annual report, you can build on your approach to make the report as engaging and effective as possible. Here are a few best practices to keep in mind when developing your nonprofit’s annual report:

1. Incorporate your annual report into your larger strategy.

Your annual report will provide the greatest long-term benefits when it supports a larger goal and strategic plan for your organization. You can recoup the time and resources spent creating the report by turning this report into a valuable donor engagement and retention tool.

For example, you can use your annual report to bolster your fundraising strategy. You can support your donor retention efforts by spotlighting top donors and partners in your report and highlighting exciting upcoming initiatives for supporters to get involved with.

You can also use the report to further your marketing approach. Consider the core messages your organization has pushed throughout the year. How can you incorporate those same messages, tone, and visuals into your annual report?

Carefully thinking through the purpose of your annual report will help you create a resource that reinforces and supports your other strategic goals.

2. Create a donor-centric nonprofit annual report.

Your annual report should be donor-centric to reach your audience on a personal level. Review these strategies for keeping your report centered on your supporter community:

Consider your audience.

Your annual report’s format is a key decision to make and you can base the choice on what you anticipate your audience will read. Understanding your audience demographics and preferences is the first step to ensuring your annual report is designed for their needs.

You may have some donors who want all of the details about your organization’s efforts as soon as possible. They value and appreciate a book-style annual report with detailed stories, infographics, and charts.

You may also have some donors who won’t sit down to read your newsletter, much less a lengthy annual report. You may consider sending a single page of infographics rather than a full report to these donors.

Use a you-attitude throughout the document.

A you-attitude is all about presenting accomplishments as your donors’ rather than your organization’s. Try to keep supporters centered at all times. For instance, compare the following sentences:

This image says "Thanks to your generous support, we were able to provide 500 bowls of food to cats in need."

Versus

This image says "Your generous support fed 500 cats in need, like Fluffy. We couldn't do that without you!"

The second sentence uses you-attitude and is more likely to hold the attention of your supporters throughout a document like your nonprofit annual report. This subtle shift lets the donor know you’re truly grateful for their support.

Create visuals to feature important metrics and information.

It can be overwhelming to pick up a large packet of information with pages and pages of text. Instead, break up the text with infographics, graphs and charts, images of supporters and volunteers, and other interesting graphics.

Visuals make it easier for supporters to tscan your nonprofit annual report and pull out the data that means the most to them.

3. Choose a nonprofit annual report format.

The traditional nonprofit annual report is a book-length document. Since some donors prefer having extensive information about your organization, these lengthy reports aren’t a waste of time and energy.

Sending comprehensive annual report booklets to the right donors can pay off, like in the case of The Rhode Island Foundation. This organization published a well-designed, well-written report. They cut down on the number of reports they mailed directly (and made the report available online) but made sure to continue sending the paper version to some local lawyers.

An elderly man walked into the office of one of these local lawyers, prepared to write a will and get his affairs in order. While he waited to be seen, he picked up one of the copies of the Rhode Island Foundation annual report. He hadn’t quite known what to do with his sizable estate before that moment. Years later, upon his passing, the Rhode Island Foundation received a small fortune from that generous man, all thanks to a printed annual report.

This story illustrates the benefits of a traditional report format. However, this doesn’t mean you shouldn’t adapt to the times. Analyze your audience and create your annual report according to what they’re most likely to respond to.

Remember that you can always post your full report online and use other formats to summarize information and invite your supporters to visit your website to view the entire document. For example, let’s review some other unique formats that you may use to convey your annual report:

Large Postcard

Postcards are designed to be brief so that supporters can quickly and easily skim the information rather than read a lengthy document (or book). Your goal shouldn’t be to jam-pack this postcard with all of the information that you would include in a traditional report. Instead, you should highlight only the most important details.

Your postcard should:

  • Convey impact and results. Due to limited space, you may need to be selective about the most important metrics to incorporate. Remember, this is the opportunity for your nonprofit to show the world the good you’ve done in the last year.
  • Visually display information. Make sure the information is easy to read. Charts, graphs, and prominently-displayed statistics help draw attention to the most important aspects of the postcard.

While you may not have the opportunity to include every detail in this format, you can leverage additional platforms alongside your postcard. For example, you may leave out appreciation messages for major donors in your postcard, but include a QR code leading to a virtual donor recognition wall to show your gratitude in another way.

Here is a template for what your annual report postcard might look like:

This template shows what a nonprofit annual report might look like in postcard format.

This template includes financial information, a short summary of the accomplishments during the year, and key statistics that reveal the organization’s impact.

Self-Mailer

Another option for sending your nonprofit annual report is creating a 2-4 page document self-mailer. Self-mailers can be incredibly useful because they bypass the issue of getting your supporter to open an envelope in the first place since the address and postage are printed directly on the document. It’s easy for your supporters to simply open the document and read what it says.

Follow these best practices when designing a self-mailer:

  • Include clearly stated next steps. When you designate the next steps supporters should take to further engage with your organization, you ensure the mailer won’t just get lost with their junk mail. By incorporating a list of upcoming events or the URL for your donation page, you increase the likelihood that they’ll keep the report for a longer period of time.
  • Incorporate plenty of images. Break up the text with images to engage your readers without distracting them from the copy. Be sure the mailer is visually compelling and not overwhelming for your readers.
  • Keep your copy concise. You have more space with a self-mailer than a postcard, but it’s still somewhat limited. Condense your copy to make sure it’s short, sweet, and to the point, but that you still cover all of the important aspects of your annual report.

While this type of nonprofit annual report is designed to be physically mailed, it’s also a good idea to send a PDF version via email to gain the attention of those who might have missed it in their mailbox.

Here is an example of what your self-mailer could look like. It contains the same information we highlighted in the postcard, but in a multi-page format:

This is a template for what a self-mailer nonprofit annual report might look like.

Video

A well-designed, compelling video is a great way to not only tell your supporters but also show them the impact they made on your organization’s mission. Follow these steps to create an effective video:

  • Be picky about your videographer. Video annual reports need to be professional in order to make an impact on your supporters, and hiring a videographer is the easiest way to ensure this. As you review your top options, carefully examine their past videos. If they don’t inspire you, move on. Home movie quality just won’t cut it.
  • Follow a prepared script. Gather your staff’s best writers to craft the script to discuss all of the important metrics and accomplishments that you want to highlight in your annual report. The other shots in the video will support the speaker’s words.
  • Use relevant footage. If your organization focuses on reducing water pollution, then show footage of rushing rivers and streams. If you help abandoned animals find new homes, incorporate clips of dogs meeting their new families for the first time. Use the video format to its fullest potential by including maps when discussing location or by featuring videos of volunteers when you discuss their involvement.

You can share your video report on your website, social media, and email newsletters.

4. Choose compelling visuals for your nonprofit annual report.

Your report’s images and graphics should be thoughtfully chosen. Here are a few examples of the types of visuals you might include in your annual report:

  • Brand the visuals to your nonprofit. Your entire annual report should flow together cohesively. This means you should make sure your logo is prominently displayed and that your usual colors and fonts are used in images and infographics.
  • Diversify the type of images you use. Instead of only including photos of your constituents or staff, diversify your images to help convey more information. For instance, pie charts are a great opportunity to display financial allocations and statistics graphics help draw the reader’s eye.

Effective annual report visuals include images of volunteers or constituents, statistics and text-based images, and pie charts and graphs.

  • Keep donors engaged. Don’t overwhelm your readers with too much text or too many images. Rather, there should be a healthy balance of text and images.

Images should never be distracting. They should be helpful guides when it comes to conveying important information within your nonprofit annual report.

Ask for volunteers to review the document and provide feedback about the imagery used before you send your report out. Or, you might hire a professional graphic designer to help organize all of the information in a visually compelling way.

5. Be honest and appreciative in your nonprofit annual report.

Honesty really is the best policy, especially in your nonprofit annual report.

Sometimes things don’t go as planned and you may not reach a specific goal or complete a certain project. However, if you try to cover up mistakes or missed opportunities, you can foster mistrust among supporters.

If you haven’t quite accomplished one of your goals within the last year, briefly mention it in the annual report. Then, follow it up with a game plan to adjust your strategy and show your donors that you’re taking a proactive approach.

Address information such as:

  • What the setback was and what caused it
  • Data-informed adjustments you’re planning to make to address the issue at hand
  • How and when the setback should be addressed in the future

Stay transparent about all of your nonprofit’s activities, including finances, campaign results, and external threats, such as any data breaches you may have experienced.

6. Use your nonprofit annual report to look forward.

Providing information about your future plans and projects will get people excited about what’s in store for your nonprofit.

When looking forward, make sure to spell out the expectations regarding your organization’s future actions and goals:

  • Remind supporters about goals in progress. For example, you might provide an update as to whether or not you’re on track for the capital campaign that you started in 2022 and will wrap up in 2025.
  • Get donors excited about the next long-term project for your organization. What major changes are on the horizon for your nonprofit? Let donors know what opportunities you’ll be pursuing next year to show that you’re constantly seeking new ways to grow and evolve.

Forward-facing plans excite your donors and inspire them to continue contributing in the future.

Make sure that after you’ve provided insight about your future plans, you also provide opportunities for your supporters to get involved. Provide some action items that supporters can take part in right away, such as the URL to your donation page, meeting dates, and upcoming event registrations so that they can show their support.

Tools for creating your nonprofit annual report

You don’t need to be a graphic design expert or set aside a large amount of your budget to build a compelling annual report. There are plenty of free and inexpensive ways to develop your report using user-friendly online resources.

A few helpful design tools for creating your annual report include:

  • Yearly, which is an annual report design tool specifically made for nonprofits. You can use the user-friendly drag-and-drop builder to design a professional, mobile-friendly report customized to your nonprofit.
  • Venngage, which is a visual storytelling design tool. Using this platform, you can create branded infographics for your digital report without having to consult a graphic designer.
  • Canva, which is another free graphic design tool that can help you create your annual report in multiple formats. Canva offers templates for all types of printed and digital designs, including reports, postcards, social media graphics, and more.
  • Visme, which is a visual communication platform for developing presentations, infographics, data visualizations, videos, and more. You can try this platform for free or upgrade to a starter plan to access a wider range of features.

Choose your annual report platform based on the report formats you’re looking to create. Also, take advantage of any free trials or demos before investing in paid plans.

7 inspirational nonprofit annual report examples

It can be intimidating and hard to get started on a project when you’re just looking at a blank page. That’s why it can be so helpful to review examples to help get you started on your nonprofit annual report.

Here are seven inspirational nonprofit annual reports and the factors that make them so effective:

1. Rhode Island Foundation 2022 Annual Report

This is a screenshot of the Rhode Island Foundation's annual report.

The Rhode Island Foundation annual report is a booklet document that takes a deep dive into the various projects and campaigns from the year. Primarily, they use pictures of supporters, beneficiaries, and team members to bring their mission to life.

On the page above, we can see how the foundation used charts and spacing effectively. Rather than including these statistics in the paragraph-style text on the left side of the page, they’re pulled out and made larger and more prominent. This draws the readers’ attention to the most important data points and conveys the organization’s impact more effectively.

2. Georgia River Network Annual Report 2022 Video

The Georgia River Network is an organization that promotes the protection of Georgia’s rivers and watersheds.

At the end of 2022, the organization released a brief Annual Report 2022 video with a few key statistics of the progress made throughout the year.

In the video above, you can see how the organization used bold text and lots of white space to make the numbers stand out. The video’s caption includes a call to action to support the nonprofit’s projects and programs in 2023 by donating. This gives supporters a clear way to stay involved in the organization’s future activities.

3. CaringBridge 2022 Annual Report

This is a screenshot of CaringBridge's annual report.

CaringBridge is a nonprofit that helps people stay in touch with their loved ones during a health journey using websites and digital updates.

The organization’s 2022 annual report does an excellent job of combining images, text, statistics, and stories. As you can see in the image above, they even provide QR codes throughout the report for readers to scan and get more information on stories that spark their interest.

This allows readers to engage with the parts of the report that matter most to them and interact with the report on their mobile devices.

4. Habitat for Humanity 2021 Annual Report

This is a screenshot of Habitat for Humanity's annual report.

Habitat for Humanity’s 2021 annual report takes a unique spin on illustrating the organization’s mission to provide affordable housing for those in need. The report is populated with drawings created by children of Habitat homeowners.

As you scroll through the report, you can view the images along with a video explaining the project. Each drawing is accompanied by a short written passage from the artist describing what their home means to them. The combination of drawings, video, and text is a compelling way to generate an emotional response in audience members, inspiring them to get involved with the organization.

The report concludes with information about ways to help out, including donating, volunteering, and advocacy work. This gives motivated readers an immediate way to show their support.

5. Girls Who Code 2021 Annual Report


Many nonprofits are taking a digital-first approach to their annual report, including Girls Who Code.

The organization’s 2021 annual report is an interactive, engaging web page that includes infographics and interactive maps, videos, photos, and news articles. The result is a visually-delightful report that provides a well-rounded look at the organization’s mission to teach girls how to code.

6. Charity: Water 2021 Annual Report

This is a screenshot of charity:water's annual report.

Charity: Water has perfected the art of the minimalist annual report design. The organization’s 2021 annual report is straightforward and uniformly branded, creating a clean and professional look.

The report includes succinct explanations and visuals that illustrate the organization’s reach, including maps and pie charts.

This report also stands out because it marked a watershed year for Charity: Water —  it was the first year the organization raised over $100 million. The impact of that incredible fundraising total is illuminated throughout the report.

7. Save the Children 2021 Annual Report

Save the Children’s 2021 annual report also takes an effective digital approach, with a robust web page that features financial information, a year-in-review video, and a link to the full 50-page annual report.

This gives supporters multiple ways to view the report based on their preferences. If they’re just interested in a quick overview, they can view the financial chart and watch the brief video. If they’re looking for a more in-depth review of the year, they can browse through the digital booklet.

Supporters appreciate having options when it comes to how they learn more about a nonprofit’s activities.

Your nonprofit’s annual reports will receive much more attention when they’re thoughtfully crafted, compelling, and well-designed. Ensuring that your report is engaging and educational for your supporters will go a long way in building stronger, long-lasting relationships.

The templates and annual report examples throughout this article should help your nonprofit get started making your annual report the best it can be. If you’re looking for more information about donor communications and effective nonprofit reporting, check out these additional resources:

Schedule a Bloomerang demo by clicking here to see how our donor management platform can help generate insights for your next annual report.

The post The Essential Nonprofit Annual Report Template & Full Guide appeared first on Bloomerang.

This article originally appeared in Bloomerang. See the original article here.

[ASK AN EXPERT] How To Enter And Credit Donor Advised Fund Gifts In Your Database

Posted on by Posted in Fund Development

Our Ask An Expert series features real questions answered by Claire Axelrad, J.D., CFRE, our very own Fundraising Coach, also known as Charity Clairity. Today’s question comes from a nonprofit employee who wants advice on how to credit and acknowledge donor advised fund gifts in their donor database:

Dear Charity Clairity,

I’m unsure how to enter donor advised fund gifts in our database so they’re credited and acknowledged appropriately. And do I thank the donor or the administrator? My boss says we only thank the administrator, because the donor has already been thanked for their gift and received a tax deduction. Is this right? 

— Confused

Dear Confused,

No, this is not right. Because the donor has not been thanked by YOU. And you never, ever want to pass up an opportunity to show your gratitude! Plus, the donor wants to know you received the gift, and will put it to work as they intended. This is what establishes trust, which is the foundation of any sustainable relationship.

So, let’s track what you should do from the moment you receive a recommended distribution from a donor advised fund (DAF).

1. Hard credit the gift under the record of the holder of the DAF

While the individual donor made the recommendation to send this donation to you, the final decision about whether to approve donor recommendations is made by the DAF holder. They have control in that there’s no legal requirement the DAF holder follow a donor’s recommendations; in practice, they almost always do so.

2. Soft credit the gift on the record of the individual who made the grant recommendation

This way you’re able to track and steward supporters who, though they did not make a gift directly (donor advised fund gifts are sometimes called “third party gifts”), did have considerable influence over the decision. As with all individual donors, you want to engage with them repeatedly throughout the year to build a relationship that will inspire their loyalty.

CAVEAT:  

Make sure when you generate reports you include soft credits so you don’t inadvertently omit individual donors from recognition lists, cultivation mailings, and future appeals.

3. Send an acknowledgement to the individual donor

Just because the check came from their DAF, and not from the donor directly, is no reason for you to ignore the fact that saying thank you is just about the most important thing you can ever do! After all, it’s the individual donor who directed the gift your way. They will consider this to be a gift from them, not a bank account. Your thank you lets the donor know they’re making the impact they intended to make. 

CAVEATS:

  • Do not send a transactional receipt that looks like it came from the finance department. Send the same kind of warm, personal, emotional thank you letter you would send to any other donor.
  • Do not thank donors for their “tax-deductible gift.” They already took the tax deduction when they gave to their DAF. A good way to handle this is simply to say “Thank you for your $250 gift made from your Jen Generosity Donor Advised Fund.” This gives a heads up to their accountant not to double count this when they prepare your donor’s tax return.
  • Do not tell the donor they will receive anything of value. This includes raffle tickets, tickets to galas and other special events, auction items, preferential seating or parking at athletic events, and any other benefits. The IRS is serious about this. Donors, donor advisors, or anyone related to either of them who recommend grants and receive, directly or indirectly, more than an incidental benefit, are subject to an excise tax equal to 125% of the grant [IRC section 4967]. 
  • Do not offer the option of a bifurcated payment to cover the non-deductible portion of a fundraising event ticket or membership. This used to be allowed, but the IRS has specifically ruled that costs associated with fundraising events, or memberships with deductible and non-deductible portions, cannot be separated. For example, if a ticket breaks out the cost for the non-deductible dinner and the tax-deductible gift to charity, the donor must pay from sources other than their DAF for the full value of the ticket and not just for the non-charitable amount. The mere opportunity to attend is considered of greater than incidental benefit. [IRS Notice 2017-73, Sec.3] 

4. Send an acknowledgement letter to the DAF administrator

Remember, the folks running these funds are people too. If you build a positive relationship with them, they just may recommend you to other donors looking to enact the values your organization enacts. 

CAVEAT:  

Do not ask the DAF sponsor to let you know this gift fulfills the donor’s pledge.  IRS regulations prohibit a donor from fulfilling or reducing the balance of a ‘pledge’ (which is legally enforceable) with a payment from a DAF. This is because, technically, once the donor has made the gift and received the full benefit of the tax deduction, the donor no longer has ownership or control over the money. The IRS has eased up on this somewhat when you’re talking to your individual donor (I still wouldn’t recommend telling donors the gift fulfills a pledge; you might be okay if you reference their ‘intent to give’), but DAF sponsors are still not allowed to put this in writing. 

Hopefully this demystifies recording and acknowledging donor advised fund gifts so you can move forward to build strong, lasting relationships with these generous philanthropists!

— Charity Clairity

What has been your experience with acknowledging donor advised fund gifts? We’d love to hear from you.

Have a question for our Fundraising Coach?
Please submit your question here. Remember, there are no stupid questions! If you need an answer, it’s likely someone else does too. So help your colleagues by asking away. Please use a pseudonym, like “Confused” did, if you prefer to be anonymous.

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The post [ASK AN EXPERT] How To Enter And Credit Donor Advised Fund Gifts In Your Database appeared first on Bloomerang.

This article originally appeared in Bloomerang. See the original article here.

Your Donor Population Is Aging: 13 Tips To Engage Older Donors & Encourage Planned Giving

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We’re all aging, right? Here are practical tips on how to engage your aging donors and encourage planned gtiving. These tips include how to make a planned gift request without making it awkward. It is essential to adapt your fundraising strategies to engage and involve those age 50 and above effectively.

What age group should you target?

Older adults tend to be more actively engaged in charitable giving and are more likely to make substantial donations.

According to data from various studies and research, the average age of nonprofit donors typically falls within the range of 50 to 75 years old. This age group often has more disposable income and is more inclined to include charitable giving in their financial plans. Additionally, they may have reached a point in their lives where they are reflecting on their legacy and the impact they want to leave behind.

As we age, we usually have more saved resources, and therefore have a greater ability to share those resources. The fact remains that most charitable giving still goes to the donor’s family, the school they attended, and their church, synagogue, or place of worship. If your nonprofit is not among those three places, then you have a marketing task to attend to.

Practical tips to encourage planned giving

Here are 13 practical tips on how to relate to and engage older donors and encourage planned giving.

  1. Use larger print (14-point font at a minimum): Larger print helps aging eyes.
  2. Build personal relationships: Cultivate personal connections with your aging donors. Reach out to them individually, listen to their stories, and express genuine appreciation for their support over the years. Regular communication can help maintain their engagement and trust in your organization.
  3. Engage their family and loved ones: Recognize the importance of family in the lives of older donors. Engage their family members and loved ones in your organization’s activities, events, and communication. This inclusivity can foster a sense of shared philanthropy and strengthen the overall relationship with your nonprofit.
  4. Educate and raise awareness: Many donors may not be familiar with planned giving options or how to include your nonprofit in their Will and estate plans. Providing educational materials, workshops, or seminars on estate planning and the benefits of making a planned gift, in person and via online video, is crucial. Help them understand the impact their legacy can have on your organization’s mission. (For more about planned giving see this piece on how to properly ensure planned giving stewardship.)
  5. Share donor stories: Highlight pithy stories of individuals who have made planned gifts and the lasting impact it has had on your organization. These stories, preferably with a photo of the donors, can inspire and encourage other aging donors to consider making a planned gift. Consider creating testimonials or case studies that showcase the meaningful outcomes of planned giving by using short videos. If you don’t have any planned giving donors to highlight at this time, I suggest you examine your board of directors and hopefully there are a handful of them that will include your nonprofit in their Will.
  6. Offer guidance and resources: Provide comprehensive information about various planned giving options, including wills / bequests. Including your nonprofit in the donor’s Will is the number one way most nonprofits receive a planned gift. There are other methods like charitable remainder trusts, charitable gift annuities, and more, but none as effective as being included in the donor’s Will. Make sure your donors have access to professional advisors who can help them navigate the complexities of estate planning. Offering a list (not a recommendation) of trusted attorneys or financial planners can be beneficial.
  7. Tailor messaging and materials: Create marketing materials specifically focused on older donors. Craft messaging that resonates with their values, legacy, and desire to make a lasting impact. Use clear and simple language and include testimonials or examples relevant to their life stage. Older donors often appreciate storytelling and nostalgia. Share compelling stories that evoke emotions and connect them to the impact of their contributions. Use nostalgic elements that resonate with their life experiences to create feelings of familiarity and engagement.
  8. Recognize and honor planned giving donors: Implement a recognition program specifically for planned giving donors. Acknowledge their generosity publicly, such as through a donor wall, a legacy society, or special events. Recognizing their contribution can inspire others and foster a sense of belonging and appreciation within your organization.
  9. Facilitate the process: Make it easy for donors to include your nonprofit in their estate plans. Provide clear instructions. Most impactful is having sample bequest language that donors can share with their legal advisors. Donors report that they like that the most. Offer to assist in any documentation or administrative tasks related to the planned giving process.
  10. Foster ongoing stewardship: Don’t forget about your planned giving donors once they’ve made their commitment. Continue to engage them through personalized updates, exclusive events, or volunteer opportunities. Regularly demonstrate the impact of their planned gift and express your gratitude for their support.
  11. Timing is everything: Asking for a planned gift can feel sensitive or awkward, but with thoughtful preparation and communication, you can navigate the conversation smoothly. Choose the right time to bring up the subject. Timing is crucial when discussing a planned gift. Consider the donor’s life events, such as milestone birthdays, retirement, or personal reflections on their legacy. Look for natural opportunities to broach the topic, ensuring that the donor feels comfortable and receptive to the conversation. However, avoid a protracted process and make the request to be included in their estate plans sooner than later. It’s important that you actively listen. Approach the conversation as an opportunity to understand the donor’s philanthropic aspirations and desires. Give them space to express their thoughts and concerns openly. By actively listening, you can address any apprehensions or uncertainties they may have and tailor your approach accordingly. Most importantly, be sensitive and respectful. Recognize that estate planning is a deeply personal matter. Respect the donor’s autonomy and decision-making process. Ensure that your request for a planned gift is presented as an opportunity rather than an obligation. Emphasize the impact their gift will have on the causes they care about and the lasting legacy they can create.
  12. Flexibility and recognition of different giving capacities: Recognize that older donors have varying financial capacities. Provide options for donors to give at levels comfortable for them, whether through major gifts, recurring donations, or smaller contributions. Every donor’s support is valuable, and their contributions should be recognized and appreciated accordingly.
  13. Explore establishing a “Legacy Society” named after the largest planned giving donor: Such a naming opportunity should be thought through carefully. Some nonprofits offer the naming opportunity with a shelf life, say for the next decade, then it opens up again to be renamed. The list of your planned giving donors comprises the society’s members. Your dedicated legacy society for planned giving donors provides special benefits, such as exclusive events, regular updates, and opportunities to interact with your organization’s leadership. This recognition can inspire continued engagement and motivate them to promote planned giving within their networks.

Remember, cultivating planned giving relationships requires a long-term approach. It takes time to build trust, provide education, and help donors understand the benefits of leaving a legacy. By implementing these strategies, you can effectively address your aging donor population and inspire them to consider making planned gifts to support your nonprofit’s mission.

What’s your experience of what works with older donors? Please share in the comments section below. 

Bloomerang can help power your donor engagement strategy. Find out how!

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The post Your Donor Population Is Aging: 13 Tips To Engage Older Donors & Encourage Planned Giving appeared first on Bloomerang.

This article originally appeared in Bloomerang. See the original article here.

Email Marketing: Your Fundraising Campaign Starting Point

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At the end of 2022, we asked 1,000+ nonprofit professionals what worked well in 2022, what they believed would work well in 2023, and their general outlook on the current fundraising climate.

Based on survey results, we found that fundraising success is determined by the media channels nonprofits use to share their message and mission. Determining where to start and what channels are most worthwhile can be confusing, especially when staff capacity and external pressures are involved.

To discover the channel mix preference, we asked nonprofit professionals to rank how likely they were to use specific media channels for fundraising. Coming in highest was email campaigns, with 88.6% of respondents stating they planned to use email marketing in 2023.
Fundraising media channels

In this article, we break down the reasons why email campaigns are a perfect place to begin engaging your donors and how your nonprofit can use email to your advantage starting today.

Use email campaigns to connect with donors and raise more funds

Here are a few ways you can get started and make the most out of your nonprofit’s email marketing strategy.

1) Automatic thank you emails after a donation is made

GuideStar reports that new donors who receive a thank you within 48 hours of donating are 4 times more likely to give to your organization again.

Generating thank you emails to your donors after every gift is a simple way to let them know that they are seen,appreciated and making a difference in the world. In your thank you email, provide a receipt of their donation, along with a letter or short message about the impact of their gift.

Start thanking your donors today using our thank you email template.

2) Automatic welcome series to connect with new supporters

An email welcome series showcases your organization’s mission and creates an opportunity for your supporters to be active participants in your campaigns.

Another option for automatic emails is to create a welcome series. Building an email welcome series requires storytelling and mapping upfront, but will ultimately help supporters feel more connected to your mission and understand the organization’s challenges. An email welcome series also helps supporters identify where they can and want to get involved.

Ideas to include in an email welcome series are:

  • A brief history of your organization, your mission or a quote from a founder/board member
  • A video recap of a recent event or highlight of your service/services
  • A spotlight on a staff member or people you serve
  • A list of volunteer opportunities or community gatherings
  • A breakdown of what donations allow your nonprofit to achieve

Setting up automatic emails through a donor database allows you to create engagement that connects your donors more deeply to your mission and continues to work for your nonprofit without continual effort from you or your team. Once it’s built, it’s done!

Putting some intention behind your pre and post-donation communications can make all the difference to a donor – why not capitalize on this low-hanging fruit today?

If your current donor database doesn’t offer automated emails and you want to start engaging with your donors in this way, we are here to help. Bloomerang has an easy-to-use email automation tool directly in the database.

Reach out and grow your donor network with Bloomerang’s built-in email marketing tool.

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3) Segment your communication for further impact and connection

Another crucial way to ensure you’re getting the best results from email campaigns is to segment your supporters into different groups. A more personalized message goes a long way to fostering meaningful, long-term donor relationships. No one likes generic emails clogging their inbox.

Segmentation is determined by the information most important to your organization – from demographics to giving capacity to donation timeframes. Whichever direction you choose to take it, segmented messaging leaves a lasting impression on donors, leading to increased retention rates and fundraising success.

4) Consistency leads to increased fundraising

It’s no secret that sticking to regular habits can lead to powerful results over time. Donor stewardship practices aren’t much different. By consistently seeking ways to care for and value donors through email campaigns, you are setting the organization up to do more good and power your mission.

Donors want to know that they are making a positive impact. When your nonprofit takes the time to connect, thank and showcase the work accomplished because of their generosity, the return on investment can be monumental.

It’s no wonder why so many survey respondents shared that email is their most used communication channel to achieve fundraising goals. Your best bet in 2023 and beyond is to use email to drive fundraising efforts home through consistent, segmented, and genuine communication.

Did we spark your curiosity about what fundraisers around the world are focused on in 2023?

Read the Full Report

The post Email Marketing: Your Fundraising Campaign Starting Point appeared first on Bloomerang.

This article originally appeared in Bloomerang. See the original article here.

How To Increase Brand Recognition And Fundraising With Set It And Forget It Approach: A Step-By-Step Guide To Creating And Selling Merchandise Online

Posted on by Posted in Fund Development, Uncategorized

Why Merchandise Makes Sense

People support what they know. Advertising and marketing have recognized this for decades. The more familiarity you can create for your organization, the more likely people are to want to get behind it. 

There are many amazing causes to give to and support. Currently, there are over 10 million nonprofits worldwide and 1.5 million in the United States alone. That can be daunting, but don’t worry, according to the United States’ population census there are currently 335,755,690 Americans (as of writing this article) and 56% of them gave to charity in 2021. 

This is all to say, there is a lot of competition out there, but there are also a lot of donors ready to support your cause. That is, if they learn to know, like, and trust it. 

One of the ways you can increase familiarity and brand recognition for your cause is to create and distribute merchandise. I know, this can sound pretty basic, but there are a lot of organizations out there that haven’t tapped into this form of marketing and dare I say, fundraising. 

Having strategically branded and crafted merchandise to sell is something any organization can do, as long as it supports the cause and main mission of your organization. 

Here’s how!

How to sell merchandise with ease through dropshipping

Through the art of dropshipping, an organization can design and create products for individuals to purchase without having to stock and sell the products themselves. One of the reasons organizations shy away from selling goods to support their cause is the extra inventory, accounting, and work involved. However, third party companies make merchandising possible and easy. 

According to Shopify, “dropshipping is an order fulfillment method where a business doesn’t keep the products it sells in stock. Instead, the seller purchases inventory as needed from a third party – usually a wholesaler or manufacturer – to fulfill orders.”

In other words, as the nonprofit, you design and market the products, but another company actually produces and ships them to the individual. Think of Amazon, where you simply go online and purchase the product and it arrives at your door. This is the experience your customers and donors can have when they support your organization through shopping your merchandise. 

In short, selling merchandise helps give your donors another way to support you, gives them an item to keep around their house and home to remind them of you (most likely resulting in other gifts or donations down the road), offers buyers a chance to give a gift from your organization to another individual who may support you, and even helps raise profits for your organization through the margins made on the products. 

This can be a great option for nonprofits looking to sell merchandise as a way to raise funds or promote their cause. 

Intrigued by the idea? 

Here are some steps to get started with dropshipping for your nonprofit

1. Research and choose a dropshipping supplier

There are many companies that offer dropshipping services. Some popular options include Shopify and Oberlo. Take some time to look into the different suppliers to find one that offers the types of products you want to sell, and has a good reputation.

2. Set up your online store

In order to sell your merchandise, you’ll need to set up an online store. There are many options for creating an online store, such as using a platform like Shopify, Etsy, or WooCommerce. Choose the option that works best for your needs, aesthetic, and budget as there is typically some cost associated with this.

3. Fill your store

It is now time to add products to your store. You can do this by connecting your store to your dropshipping supplier using a platform like Oberlo or by manually adding products and their details to your store. Pro Tip: Make sure to include high-quality product photos and detailed descriptions.

4. Set up payment and shipping

Now, you’ll need to set up a way for customers to pay for their purchases and choose a shipping method. You can use a payment gateway like PayPal or Stripe, and choose from a variety of shipping options, such as standard shipping or expedited shipping. Many times, the platforms you have selected will guide you through this process. 

Dropshipping can be a convenient and cost-effective way for nonprofits to sell merchandise and raise funds. With a little planning and some online marketing, you can get your dropshipping venture off the ground and start making a difference.

Product selection and design

If you are now on board with the idea of dropshipping for merchandise but are a little lost as to what to sell, let’s get into a little more detail about how to choose and design products. 

Remember, your product should somehow relate to your organization.

For example, if you are an animal welfare organization, perhaps dog bowls or pet toys with your logo or designs on them would be appropriate. 

If your organization is environmentally focused, consider creating reusable cups or straws. 

If you are more educationally inclined, designing and selling notebooks, backpacks, and pens would be a great first step.

Explore the products the dropshipping site you chose has to offer and think about what your audience may want. Every nonprofit audience is different so doing some demographical research on what sells would be helpful for you as well. 

Adding more products to your collection can’t hurt. Remember, with the dropshipping model, you only pay for what you sell. 

When it comes to the products you choose, you can get creative. If your design is strong and has a good message, consider adding:

  • Canvases
  • Mugs
  • Cards
  • Candles
  • T-shirts and apparel 

As long as the message and branding are related to your organization, they can be considered items that are being used to help your nonprofit fulfill its mission.

Follow these tips to help your team create good branding and designs for your nonprofit

Once you have created an online shop and chosen which products you want to design and sell, the next step is to brand the products and create attractive designs to upload onto the products selected. In other words, the shops you have chosen have hundred of products to choose from, but they are typically blank. It is up to you and your team to create designs that can be uploaded onto the product. 

Pro Tip: Graphic design software like Canva can take a lot of the guesswork out of what looks good and can provide a springboard for your designs.

If you’d like a little more help when it comes to what to put on your items, read the tips below.

Identify your audience:  As with anything marketing or sales related, it’s important to research and understand who your nonprofit is seeking to connect with. This will help guide your branding decisions and ensure that your designs are effective in reaching and engaging your target audience.

Define your mission, vision, and values: Your branding should always reflect the mission, vision, and values of your organization. Consider what you stand for and what sets you apart from other nonprofits in your field.

Color palette: Colors are a very powerful tools in branding. Choose a color palette that reflects the personality of your organization. Choose a palette that reflects the tone and mood of your design. 

For a little guidance on what colors typically evoke what emotion, here are some common color representations used in branding:

  • Red: energy, passion, danger, excitement, power, hunger, love
  • Orange: fun, creativity, warmth
  • Yellow: happiness, optimism, caution, cheer
  • Green: earthiness, nature, growth, prosperity, calm
  • Blue: depth, trust, intelligence, stability, nature
  • Purple: wisdom, luxury, spirituality, mystery
  • Pink: love, innocence, femininity, playfulness, caring
  • Brown: stability, reliability, earthiness, comfort
  • Black: mystery, sophistication, power, elegance, classic
  • White: simplicity, purity, cleanliness, class

Please remember, these color representations are not set in stone and can vary depending on context. It is always important to put a lot of thought into the intended tone and message of a brand and choose a color palette that aligns with those goals.

Design a logo: Your logo is the key element of your branding. It should be simple, attractive, and memorable. 

Select fonts: The font you choose to use in your branding and designs send a message as well. Try to choose a font that is easy to read and communicates the tone of your organization.

Use high-quality visuals: Visuals are a key part of branding, so it’s important to use high-quality images and graphics that reflect your organization and its mission.

Be consistent: Consistency is key in branding. Use the same color palette, fonts, and visuals consistently across all of your marketing materials to create a cohesive brand identity.

Develop a concept: Before you start designing, take some time to brainstorm and develop a concept for your design. This will help to ensure that your design has a clear purpose and direction.

Keep it simple: Simple designs are often the most effective. Think of McDonalds – it’s just a yellow M on a red background, but we could all recognize it from anywhere. Avoid cluttering your design with too many elements and focus on creating a clear and cohesive message.

How to market your items

Once your store is set up and ready to go, it’s time to start spreading the word. You can use social media, email marketing, and other methods to let people know about your merchandise and the cause it supports. Marketing your merchandise won’t be much different than any other marketing effort when it comes to the steps needed and methods used. 

Here are some basic marketing tips for getting your merchandise off the ground:

1. Identify your target audience

Before you start marketing your merchandise, it’s important to understand who you are trying to reach and what types of products they might be interested in. Try to do some research on your audience’s demographics such as age, gender, and location. This will help you know what products to showcase first.

2. Develop a marketing plan

Work with your team to create a marketing plan that outlines the strategies and tactics you will use to promote your merchandise. This could include tactics such as a giftshop located at your physical office or vicinity, social media marketing on your platforms, email marketing to your constituents, and in-person events like pop up shops or your next gala. 

3. Use social media 

Depending on your target audience, social media platforms like LinkedIn, Facebook, TikTok, Instagram, and Twitter can be powerful tools for promoting your merchandise. Be sure to use these platforms to share pictures and descriptions about your products, engage with your audience, and drive traffic to your website or store.

4. Create email campaigns

Email marketing can be an effective way to reach and engage with potential customers because it’s delivered straight to them. Email marketing helps you know what percentage of emails sent are opened and what links are clicked on by your audience. Create email campaigns that showcase your products and provide valuable content to your subscribers. Consider how you can also include a story of someone you’ve served or a result you have gotten to remind your audience what they are supporting when they purchase something from you. 

5. Host in-person events

Holding in-person shopping opportunities and events can be a great way to showcase your merchandise and connect with potential customers. Think about hosting a pop-up shop or partnering with local businesses to host events. Consider adding your products to your next silent auction, or include a list of products in your next newsletter or on site at your organization if you have one. Ask that board members share new products with their contacts.

6. Offer discounts and promotions

As with any commerce, offering discounts and promotions can be a great way to drive sales and generate buzz about your products. Consider offering discounts to new customers or running promotions for limited periods of time to create a sense of urgency. Also consider running discounts and promotions on days that are symbolic to your organization or on major fundraising days like Giving Tuesday. Encourage board members, staff, and volunteers to wear and showcase items from your shop for some free promotion. 

7. Bonus Pro Tip

When it comes to the legalities of selling merchandise, be sure you are covering your organization. As mentioned, nonprofit organizations are typically allowed to sell merchandise as long as the profits from the sales are used to further the organization’s core mission. 

However, as with any company or organization, there may be certain legal requirements that need to be followed. In the United States, nonprofits are generally required to obtain a sales tax exemption in order to sell merchandise tax-free. In some instances, the organization may also need to register with the state as a sales tax vendor. When it comes to sales tax, nonprofits typically don’t have to pay sales tax on what they sell unless it has gone over a certain amount or unless you have sold merchandise for a certain time period. Each state may have its own unique laws on sales tax so please do your research. If you have sold enough merchandise to hit the sales tax threshold, all you need to do is begin to add sales tax onto your customers tab, be sure to track how much sales tax has been collected, and pay it to the government when the time comes. Please check with your auditors or accountant on your state’s particular laws and act accordingly. 

Additionally, also look into obtaining any necessary licenses or permits in order to sell merchandise, depending on the nature of the products being sold and the location where the sales are taking place. For example, a nonprofit that sells food products may need to obtain a food handling permit, and a nonprofit that sells products online may need to obtain a business license from the state in which it is located. 

While it’s always important for a nonprofit to carefully research and follow any applicable legal requirements, don’t let any of these items discourage you from beginning to sell your merchandise. Most of the time these laws are easy to oblige and only take a few hours of research to make sure you are compliant. 

In sum, if you follow these steps to set up an online store with products that represent your mission and brand, you will be able to increase your revenue for your mission, give your donors and supporters another way to connect with you, and increase your brand recognition. It’s a win, win, win!

The post How To Increase Brand Recognition And Fundraising With Set It And Forget It Approach: A Step-By-Step Guide To Creating And Selling Merchandise Online appeared first on Bloomerang.

This article originally appeared in Bloomerang. See the original article here.