In this series, we take a look at the current news impacting the nonprofit sector, specifically fundraising. Our intention is not to be reactive, but to be proactive in our analysis of the news and consider how fundraising and philanthropic efforts can improve outcomes and adapt to meet the times.
In this week's roundup: Taking Risks for the Future We Want, How To Ask For Money During A Crisis, and Things to Consider When Giving Cryptocurrency to Charities.
Taking Risks for the Future We Want (Via Stanford Social Innovation Review)
Over the last six weeks, thousands of people across America have been arrested at protests, with millions marching in the streets. Despite a pandemic, so many people have been willing to take the risk, breaking stay-at-home orders and potentially exposing themselves to the virus, in the fight for racial justice. And these risks have had results: Long-time fearless activists, timely global protests, and many actions of solidarity have taken the Black Lives Matter movement mainstream. A majority of Americans now support the movement, according to a recent Civiqs poll, and politicians at almost every level are following suit. What was seemingly impossible was made possible in a matter of weeks. How can philanthropists learn from the people in the streets and reimagine risk?
Analysis: Nonprofit institutions must always remember that there is room for growth not only within the mission, but how that mission is executed. Failure to rethink how we approach serving our communities could lead to repeating the very same problems as before. Donors are looking beyond the mission of a nonprofit and are choosing to give to those that meet their standards for executing the mission, as well.
How To Ask For Money During A Crisis (Via Chronicle of Philanthropy)
Today’s crises are unlike any other in modern history, and nonprofits are feeling the full impact. Many nonprofit workers who are suffering because of the brutal killing of George Floyd are also busier than ever working to end racial injustice. The economic collapse caused by Covid-19 has crippled many groups, and everyone is reeling from the pandemic. Time and time again, the question is asked: Can I ask for money in the midst of all this?
Analysis: History has shown that a crisis, ranging anywhere from 9/11 to The Great Recession, tends to increase philanthropic involvement. Larger donors to organizations see the need for services, and step up to help the causes they believe in. Not only is it okay to ask for money during a crisis, but many times donors want to help during times of most critical need. But, you'll never know unless you ask.
Things to Consider When Giving Cryptocurrency to Charities (Via Coin Telegraph)
Last month, the United States Congress increased the tax benefits of charitable giving in the CARES Act in hopes that people will give more. Some give money; others give property; and a growing number have been giving crypto assets. Once you have made the difficult decision of which charity or cause to donate to, your focus should shift toward your tax position. There are certain things to keep in mind when giving crypto assets - particularly considering how their volatility can affect your taxes and decision making.
Analysis: More donors are giving gifts via cryptocurrencies, rather than cash. This trend doesn't suggest that fundraisers should become experts on cryptocurrency, but it does mean fundraisers should develop a working knowledge of various cryptocurrencies out there and understand what's involved with processing gifts that can appreciate and depreciate in value -- similar to stocks.
Have a fundraising story you would like to share? Let us know how you've seen frontline fundraisers rise to the challenge and make an impact in their community.