IRS Notes

 

The Internal Revenue Service has been in the news lately with regards to allegations about review of conservative organizations and more aspects of the management of this government organization.  

The IRS recently released frequently asked question and answer information regarding their nonprofit process. You may access that information here: http://www.irs.gov/uac/Newsroom/Questions-and-Answers-on-501%28c%29-Organizations

A question I am frequently asked is once a nonprofit organization is approved by the IRS, what is the required wording for receipts provided to donors . According to IRS publication 1771, that requirement may be met with the following wording:

Thank you for your cash contribution of $X that (organization's name) received on (date). No goods or services were provided in exchange for your contribution.

The most important note in this week's update:  Don't let IRS notes become any sort of overriding focal point for your critical work. Keep your focus where it should be: on keeping your donors fully engaged with meaningful information on the impact of your gift. Your heartfelt, prompt feedback and ongoing updates on their support has far more value for your donors and for your mission than any IRS requirement. 

Absolutely honor all requirements of being an IRS-recognized nonprofit, including the above recommended receipt wording.  Honoring these requirements is as critical as a grocery store visit to having food in your home. However, remember where the true value is: it's in having loved ones in your family, as well as donors and service recipients in your nonprofit to share the fruits with of your efforts to save and change lives.

Thanks for all you do!

Photo credit above: http://www.flickr.com/photos/horiavarlan/

Growing Your Team: Brainstorming Fits for Fundraising Involvement

Would you like to grow the team focused on executing your fundraising and development plan?  It starts with taking steps to communicate the task of fundraising as everyone's business.

What are some common characteristics of good fundraising volunteers? They include:

• Those who you know feel connected to your cause (a good starting point for any involvement)
• Your current donors
• Anyone who you consider to be a good listener, who likes to experience the stories of others
• Those who love people 
• Those who are connected in your community, who know a wide range of people
• Diligent record keepers
• Good writers 
• Those willing to make an investment in your nonprofit's mission to solidify credibility before others are asked

Once you've identified people with the skill sets above, consider forming a development committee to assemble your fundraising plan, execute it and make regular progress reports to your board of directors. Remember your development committee's central mission is to demonstrate the meaningful work of your mission and connect that work with your donors.

As with any volunteer team, develop ways to demonstrate appropriate appreciation for their gift of time, talent and treasure. 

What works well for you and your fundraising volunteers?


Photo credit above: http://www.flickr.com/photos/oakleyoriginals/