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Donor management best practices: Turning good data into a goldmine

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For nonprofits, donors are the lifeblood of your mission. After all, they’re the people funding it. So, it’s no surprise, according to NonProfitPRO’s 2019 Leadership Impact Study, that 82% of nonprofits are using technology to improve their donor relationships and 52% are using it for donor management.

When kept current and accurate, data can be leveraged to inform critical decision-making for the entire organization. That’s why most nonprofits rely on donor database software — also known as nonprofit constituent relationship management or CRM software. This type of software stores your donor data in one centralized location, helping you to better manage and make sense of all the information.

Because donations are just the tip of the iceberg
Even the most basic donor management platforms can track donations, donor details and more. Depending on your software, it may also have built-in features that are designed to help build on the data you already have. It may even come equipped with fundraising features, helping to automate cumbersome tasks. At the end of the day, your software should make information accessible and readable, so you can easily address donor challenges, streamline the solicitation process and develop a sound strategy for effective communication.

Try the following best practices to optimize your data management and build stronger supporter relationships:

Create comprehensive profiles
To best engage with your supporters, ensure that your donor profiles contain all the essentials — and more. You should already have their full name, email address, mailing address, phone number and birthday. But having a broader picture of who your donors are and how they can impact your mission can help you create better strategies to support them. That means collecting supplementary data such as:

  • Hobbies
  • General interests
  • Employment details
  • Social media profiles

Track supporter engagement styles
Pay attention to how your donors are interacting with your nonprofit. When you can pinpoint the areas of engagement, you can better nurture those relationships and develop future plans to engage. You should have separate strategies in place for how they’re involved:

  • Donors
  • Volunteers
  • Event sponsors
  • Event guests
  • Membership program participants
  • Peer-to-peer fundraisers
  • Social ambassadors

Roll out smarter fundraising appeals
A donor’s giving history can be invaluable when it comes to planning your next ask. When you’re armed with a donation amount, payment type and donation channel, you can use this information to:

  • Be realistic about the donation amount you’re soliciting
  • Share the impact of past gifts
  • Promote the gift-giving channels you know donors are likely to use
  • Inspire them to give more by showing how a small increase could make a huge impact

Tailor your outreach
You want to stay in touch often — even when your donors are not signing a check. But too much communication can be annoying. And messages may be overlooked altogether if they’re sent through the wrong channel. That’s why it’s critical to update your donor profiles with data such as:

  • Preferred communication channel
  • Communication frequency
  • Programs or opportunities of interest

Integrate online forms
The benefit of an integrated form-builder? The data will automatically flow through your database and update your donor profiles — so you can spend less time inputting data and more time putting it to use. These forms include:

  • Donation
  • Event registration
  • Volunteer sign-up
  • Membership applications

To connect with donors personally, fundraise successfully and expand your mission, you need a donor management strategy that maximizes your data, along with the technology to support that strategy. But remember, don’t opt for a shiny new toy without ensuring that it’s right for your organization in a way that supports your overall mission and your goals.

Learn more about how Magone & Company helps nonprofits find financial clarity and maximize support for their mission.

How the IRS makes your life miserable if you owe back taxes

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Have you received a notice from the IRS only to leave it on your kitchen counter, desk, or worse, just hide it under a stack of bills? Unfortunately, those letters from the IRS will just keep coming.  Your problem won’t go away on its own.

If you don’t take action now, the IRS WILL just keep piling on penalties and interest…and interest on top of the penalties.

The IRS doesn’t like being ignored so this is how they get your attention. They want to be sure you know they are not going away.  It’s like they haunt you with their ongoing letters.  If you don’t respond to them, the penalties they tack on are like a club they keep hitting you over the head with. Penalties are just the beginning of what they can do to your life.

But that’s just the beginning…

The IRS has a lot of power over your life. They not only can freeze your bank accounts—that’s right—but they can seize all the money in your bank accounts too.

They can garnish your wages. They can legally take as much as 90% of your net paycheck. Can you live on 10% of your net pay?  The IRS thinks and expects you can!

Besides slapping bank levies and wage garnishments on you, they can put a lien on your house, making it nearly impossible to borrow against it to pay the IRS off. And if you sell your house, the IRS gets their money first from any equity there is.

Federal tax liens prevent you from borrowing any money—except for those high-charging money stores located in mini-malls. An IRS lien makes it harder to rent an apartment, get a car or obtain any kind of credit. An IRS lien can even jeopardize your job!

And believe it or not, the IRS has the authority to show up and knock on your door! Make no mistake—the IRS is the most brutal collection agency on the planet.

If you owe between $10,000 and $250,000 plus, the IRS has many NEW flexible programs available to taxpayers such as Offer in Compromise, Partial Pay Installment Agreements, Payment Plans, Penalty Reduction, and Currently Not Collectible Status to name a few. Each carries with it its own unique process, procedures and qualifications. Having an experienced tax pro in your corner ensures you are taking advantage of the best options available to you.

If you want an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

Jump on board: 5 Next-level nonprofit trends for 2020

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In any given year, nonprofit professionals face a mix of significant accomplishments and relentless challenges. From donor expectations to new technology, the landscape is constantly innovating. Nonprofits must keep up to achieve their desired goals, or risk being left behind — along with the communities they serve.

To maximize your organization’s potential, here are some recommendations from NonProfit PRO for bringing in more donations, engaging more donors and improving communications to make your mission’s mark in 2020.

#1. Form non-traditional partnerships. With the changing political climate, nonprofits are shying away from government sources to help fund their operations. Instead, they’re building partnerships across new sectors to help protect their organizations from political uncertainty.

In the healthcare industry, for example, providers want to reduce the incidence of low-income patients being continuously readmitted because they have nowhere else to go. The solution? Stable housing. By providing disadvantaged patients with a place to live, it creates an opportunity for housing providers to partner with health systems to mutually benefit each people in need.

#2. Execute mobile-first technology. Are donors checking emails on their desktops or smartphones? The donor landscape continues to shift across generations, and nonprofits need to reach them in an increasingly mobile environment. This creates the urgency to understand and implement mobile-first technologies.

Don’t just accommodate mobile users with a full version of software that they must load onto their tablets. Give them information that’s designed specifically for mobile and touchscreen interfaces.

#3. Harness the power of AI. Artificial intelligence (AI) technology carries the ability to improve proficiencies and outcomes in various areas of the nonprofit sector.

For example, chatbot technology can be used to increase donor engagement across your social media pages. Or, you can use predictive analytics to optimize your campaigns to better speak to your donor base. The growing availability of AI and its ease of incorporation into your current processes holds great many possibilities.

#4. Focus on recurring gifts. Monthly giving allows donors to spread their contributions throughout the course of the year — so do your part to make it easier and more convenient. Leverage technology to set up monthly giving options.

Not only does this this provide a better idea of the giving forecast, it also offers stability to coincide with your year-round fundraising efforts. Remember, your nonprofit’s ability to expand giving options across multiple touchpoints — text, mobile, desktop, mail, etc. — plays a huge factor in the overall success of your efforts.

#5. Provide authentic communication. When it comes to your board, one of the biggest challenges is finding ways for members to connect with the cause. Like donors, board members are likely willing to volunteer and devote their time and energy to your organization because they have a natural affinity for its mission.

So, give them opportunities to experience the mission at work. Let them interact with the community and see first-hand how your organization is making a difference. This will help keep them engaged and enthusiastic in their roles, as well as generate new perspectives and ideas.

There’s no time like the present for establishing a fresh outlook. To strengthen your outreach and make a stronger impact, consider how you can best utilize these strategies to meet your organization’s specific goals and needs.

3 reasons you shouldn’t talk to the IRS yourself if you owe back taxes

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If you owe money to the IRS, it might sound like common sense to try to tackle your tax problem on your own. However, one of the worst things you could do is talk to the IRS directly without proper representation.

As an expert tax resolution firm, we encourage all readers facing a tax problem to contact us for a free consultation.

The IRS is not on your side and their primary goal is to collect the taxes they believe you owe. In this article, we give you 3 reasons why talking to the IRS directly could get you into deeper trouble.

1. You have rights.
Contrary to popular belief, you DO have rights as a taxpayer that you probably don’t even know exist. One is the right to representation. If an IRS revenue officer or revenue agent calls or “visits” you, did you know you are under no obligation to answer any of their (very intrusive and condescending) questions? Politely respond by asking for their contact information, explaining that you’re in the process of hiring a professional to represent you and that this person will contact them directly. A CPA or Enrolled Agent that deals with IRS problems for a living knows the “ins” and “outs” and how to deal with the IRS so that your rights are protected. A tax resolution specialist also knows how to get you the lowest possible settlement allowed by law. Generally, our clients never meet or speak with the IRS once we’re on the scene.

2. Answering questions can dig you into a deeper hole.
If you are being audited or about to be, the IRS will ask you about 50 very intrusive questions in your initial interview. How you answer these questions will dictate the fate of your case.  Having a tax resolution specialist conduct these meetings WITHOUT you is the best course of action we can recommend. Half of the referrals to the IRS’s criminal investigation division come from that “nice” auditor sitting across the table at the audit.

3. They won’t tell you about all your settlement programs and options. The just want their money.
If you owe between $10,000-$25,000+, the IRS has many NEW flexible programs under their Fresh Start Initiative available to taxpayers. These include Offer in Compromise, Partial Pay Installment Agreements, Payment Plans, Penalty Reduction, and Currently Not Collectible Status to name a few. Each carries with it its own unique process, procedures and qualifications.  Having an experienced tax pro in your corner ensures you are taking advantage of the best options available to you.

One last thing….

Ask yourself this question: Would you go to court without a lawyer?

If you answered “yes” hopefully you know the law inside and out concerning your case, but if representing yourself doesn’t seem like a great idea it’s best to hire somebody who is well versed in the subject matter. Well, it’s the same thing with the IRS. Having someone who knows how to negotiate the IRS’s maze of rules, regulations and the 74,000 pages of the Tax Code and deal with the IRS may be the best money you’ve ever spent.

If you want the help of an expert tax resolution professional who navigates the IRS maze for a living, reach out to our firm at (973) 301-2300. We’re happy to schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

The rise of technology: What it means for today’s — and tomorrow’s — CFOs

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Organizations of all sizes are realizing the benefits of a digital transformation, and they’re turning to CFOs to adopt and develop critical technology-related skills. Once considered a numbers-only role, CFOs are now balancing traditional fiscal responsibilities with the increasing demand for data-driven analysis. As technology continues to steer change in the business environment, CFOs are playing an instrumental role in the success of a company’s digital initiatives.

A broader range of expertise
According to the Grant Thornton 2019 CFO Survey, 95% of finance executives report that the CFO of the future must possess increased levels of technology expertise, including data analytics. In fact, 55% identified data analytics as the number one skill they want to develop within the finance function, followed by:

  • Business strategy (40%)
  • Operations management (36%)
  • Technology acquisition (34%)
  • Innovation/entrepreneurship (32%)

In this digital era, CEOs look to their CFOs to lead the way. Finance teams are the go-to for delivering analytics and insights that support strategy and decision-making to help organizations identify new market opportunities, uncover trends, develop smarter forecasts for business planning and more. In the long run, organizations that embrace the digital will have the insights to bring innovative ideas to market before the competition. And the more time devoted to harnessing data and interpreting analytics, the greater the asset CFOs can be to their organizations.

Talking numbers
According to the study, finance teams are bumping up their use of emerging technology functions in the following areas:

  • Accountants payable/receivable (46%)
  • Financial reporting and control (44%)
  • Financial planning and analysis (43%)
  • Budgeting and forecasting (42%)
  • Corporate development/strategic planning (41%)

Going forward, executives plan to expand their strategic use of technology, especially in terms of financial planning and analysis (30%) and financial reporting and control (28%).

Future-proofing your CFO career
For finance professionals who want to achieve long-term success, Grant Thornton recommends adopting the following guidelines:

  • Identify processes that would benefit from automation and digitization. Partner with C-suite peers to determine which opportunities could offer the most value.
  • Shift your mindset to machine-first. Automate manual or low-level work, so employees can take on more strategic roles. Make sure you provide them the training to do so.
  • Implement better communication. How does finance interact with other business functions? Seek out new processes to ensure open lines of communication and mutual respect for each department’s needs.
  • Align investments. Determine how to measure the effectiveness of your digital transformation initiatives. How do technology investments link to your business investments and your ROI?
  • Create a culture of innovation. Give employees the tools to create and thrive in a digitally-aligned workforce.

CFOs: Rising to the occasion
Organizations aren’t just looking at data as a strategic asset, they’re executing strategies that leverage data to improve their business outcomes. And CFOs are at the forefront, driving initiatives to improve the bottom line.

Charitable giving in 2019: How nonprofits can motivate donors to continue giving

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For nonprofit organizations, last year’s Tax Cuts and Jobs Act is certain to impact giving levels beyond simply 2019. With less incentive to give, will donations decline and impede the important work that nonprofits like yours set out to do?

Under new regulations, the U.S. standard tax deduction has increased across the board, leading to an anticipated reduction in taxes and less need for itemization. This can have two potential impacts on giving:

  • If people have more money, they’ll give more.
  • If people can’t write off their donations, they won’t give as much.

America’s altruism is being put to the test.

Getting a pulse on your donor base
According to the Why America Gives Report, nearly half of U.S. donors planned to donate more money to charity in 2018 compared to 2017, including 74% of households with an annual income of $100-$150K, and 85% of households with $150K+.

Yet that same studied revealed that 42% would definitely/probably donate less if they knew they were getting less of a tax incentive. And 10% of Americans reported that they planned to reduce their giving, admitting that a write-off is their primary reason for donating to charity.

Strategic opportunities for nonprofits
A recent GuideStar webinar shared tips and opportunities that nonprofits can leverage to help motivate donors to maintain generous levels of giving regardless of tax incentives:

  • Focus on individuals rather than large corporations, and provide a personalized giving experience that makes them feel like a valued part of your mission.
  • Learn what pulls at their heartstrings. Donors are following their hearts, not their pocketbooks. What issues encourage them to take action?
  • Invest in tools to diversify your approach, such as online fundraising software. Donors of all generations expect you to have an online presence, making it easier for them to give.
  • Empower donors. Give them options to make monthly donations, create birthday fundraising campaigns or earmark donations for specific projects.
  • Maintain control over your online data. Online software should capture donor information, so you can use it to establish trust and build long-term relationships.

Want to attract higher-value donors? Data is the key
Marketing drives brand awareness and donations. And the more you know about your donors, the better the marketer you’ll be. How do they get their news? Do they prefer Facebook or Twitter? Do they have kids? Reach out and get better acquainted with them. Survey them. Set up one-on-one calls. Thanks to technology, new tools and AI, today’s marketers are more sophisticated than ever before, and you can use these resources to better know, target and reach your donors.

Online fundraising platform Classy offers these marketing strategies to get you started:

  • Eliminate barriers. It’s vital that your marketing and development teams work together for the success of your organization.
  • Understand donors’ communication preferences. Use marketing channels that will drive the highest response rate, not simply what’s most convenient for you.
  • Automate to help nurture donor engagement. But don’t let technology replace personal relationships. The value of one-to-one conversations will never go away.
  • Integrate your offline and online appeals. The USPS has proposed to increase the cost of first-class stamps by 10% and marketing mail (bulk rates), by 2.4%. By adding an online component to an offline campaign, you can cut costs while working to reach your goals.
  • Cultivate a network of social champions. The Why America Gives Report reveals the best way to reach social media audiences is through relatable champions of their causes. If your organization doesn’t have a social media presence, you won’t get too far this year without one.

Unlocking the value of recurring donors
Classy reports that recurring donors are over five times more valuable than one-time donors. These are people who want to see change happen and want to be a part of it. The takeaway? Don’t fear asking for more.

  • Use multiple channels for outreach. Data shows that charities are not reaching out enough. You need to treat recurring donors differently than one-time donors and communicate more frequently than a monthly transactional email.
  • Share the impact of their recurring gifts. If someone is making the decision to support a mission on a monthly basis, they want to learn about the impact of their gifts.
  • Prioritize personal relationships. These are the people supporting your cause. Even if it’s just with a subset of your recurring donor base, develop a personal relationship to help deepen their desire to give.

It’s too soon to tell how new tax regulations have influenced the generosity of your donors. Your best defense against donor attrition is a strong, coordinated offense.