Posts tagged ‘Gallup’

January 27, 2017

Your #Charity is Losing Big Money If It Ignores This Giving Option

If you’re like most fundraising professionals, you’re ignoring one high-potential giving option. Sadly, it could be costing your nonprofit organization a fortune.

I’m talking about gifts of appreciated securities (e.g., stocks).

The Wall Street Bull.

The Wall Street Bull.

Just days ago, the Dow broke through the 20,000 level to set a new record close. The NASDAQ and the S&P 500 are also in record territory. As stock values have continued their post-election rally, many more Americans now hold appreciated stocks.

In 2016, 52 percent of Americans said they owned stocks in some form, according to Gallup. While that’s down from the 65 percent who owned stocks prior to the Great Recession, a majority of Americans still hold stock, directly, in mutual funds, and in retirement accounts.

Given that most Americans own stock and many of those stocks have appreciated in value, the nonprofit sector has a tremendous opportunity.

Contributing appreciated stocks provides donors with some important benefits:

  • It gives donors access to a pool of money with which to donate that would not otherwise be available to them for other purposes without negative tax consequences.
  • Contributors who donate appreciated stocks may be able to avoid paying the capital gains tax on those securities.
  • Donors may also be able to take a charitable-gift tax deduction based on the value of the stock donated.

Given the benefits for the donor and the nonprofit organization, I’m puzzled about why more charities aren’t stepping up to promote gifts of appreciated securities.

I know. I know. You’re organization’s website probably mentions this giving option in passing. For example, my alma mater Temple University promotes gifts of appreciated stock and mutual funds on its website. Unfortunately, it takes three clicks from the Home Page to find the 82-word statement buried on the vaguely named page “More Ways to Give.” I suppose that’s a bit better than the charities that don’t mention this giving option at all.

On the other hand, the American Civil Liberties Union does a better job of promoting stock gifts on its website. Furthermore, unlike Temple University, the ACLU site provides all of the information and instructions a donor will need in order to make a gift of stock.

To help donors understand the value of donating stock, The National Philanthropic Trust, which manages Donor Advised Funds, includes a hypothetical case study on its website to illustrate the value of donating appreciated stock.

Savvy donors, perhaps more donors than in recent years, are already benefitting by donating appreciated stocks.

For example, NPT saw an increase of stock gifts last year. Eileen Heisman, NPT’s President and CEO, reports:

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March 5, 2016

Gallup Poll: Donors Not Feeling the Love

The most recent “Health and Well-Being Survey” conducted by Gallup provides alarming insight about the effectiveness of nonprofit donor recognition efforts.

Among those surveyed, 81 percent say they have donated money to a charity within the past year. In addition, 52 percent of survey respondents say they have volunteered their time during that same period.

Given the high-level of engagement, Gallup wanted to determine whether survey respondents were “feeling the love and received recognition for their efforts to help improve the city or area where they live.” Unfortunately, the findings are disturbing:

•  Only 15 percent of respondents agreed with the The Applause by Rachael Tomster via Flickrstatement “In the last 12 months, I have received recognition for helping to improve the city or area where I live.” This includes 5 percent who “Strongly Agreed” and 10 percent who “Agreed.”

•  Conversely, a whopping 69 percent of respondents disagreed with that same statement, including 45 percent who “Strongly Disagreed” and another 24 percent who “Disagreed.”

There are a few things that might explain the disconnect between the philanthropic/voluntary involvement of survey respondents and the recognition they received, or didn’t:

1.  Many of the respondents may have donated or volunteered for non-local causes. For example, donors may have given to alma maters in a different geographic region. Alternatively, donors may have given to or volunteered with national or international charities.

2.  Survey respondents might not think of their giving or volunteering as “[helping to] improve the city or area where they live.” For example, if one gives to a local animal shelter, she might think of it as helping the kittens and puppies but not necessarily think of it as improving the community.

3.  Survey respondents might not fully understand the definition of “recognition.” For example, some donors might think of “recognition” as being profiled in the local newspaper because of their philanthropic efforts. Other donors might think of “recognition” as being honored with a plaque at a special event. Others might think “recognition” means receiving a t-shirt. Still others might think of “recognition” as a well-written thank-you letter.

If the disconnect between giving/volunteering and recognition was small, I wouldn’t be too worried; the disconnect could be explained. However, the disconnect revealed by the survey is massive. Even allowing for a large margin of error for the reasons I’ve just outlined, I suspect we’d still see a significant #DonorLove gap.

Considering the anemic donor-retention rates throughout the nonprofit sector, I’m even more convinced that Gallup has uncovered a legitimate concern. As a statement from Gallup says:

It seems most communities and organizations are missing an opportunity to validate donation and volunteer efforts by recognizing those who offer them.”

Here are just some of the things you can do to ensure your donors and volunteers feel appreciate:

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