What’s impact measurement all about?

In the past, nonprofits mainly focused on counting things like the number of people they helped or the amount of money they collected. Now, they’re digging deeper. They want to measure the long-term changes that happen because of their work. This could be anything from a student improving their grades thanks to a tutoring program to a family finding a safe home because of a housing charity.

Impact measurement helps nonprofits see what’s working and what’s not. It helps them improve their programs, show their supporters how their donations are making a difference, and ultimately raise more money to do even more good.

How technology is helping

Nonprofits have a secret weapon in their quest to market impact: technology. Special software called CRM (Customer Relationship Management) can help them track and analyze all sorts of data, from how often a donor gives money to telling donors how a person’s life has changed because of the nonprofit’s work.

Think of it like a super-organized notebook where nonprofits can keep track of everything they do. They can use this data to see what’s working, what needs to be changed, and how they can make the biggest difference possible. Bloomerang is one example of a CRM that nonprofits can use to do this. It has features that help track donor information, donor communication preferences, and volunteer contributions. It even has special tools to create reports and see how everything connects.

Real-life examples

• A summer camp for kids with special needs tracked how kids’ confidence and social skills improved over the summer. This data helped the camp show donors the real impact of its program and raise more money for scholarships. This nonprofit was able to segment its donors based on their interests in this program and tell them how their donations changed lives.
• An organization that helps people find jobs tracked to see which job training programs were most successful. This helped it improve its services and find jobs for even more people. Since they tracked their impact, they were able to raise more money from donors and grantors and expand their program.

The building blocks of impact measurement: Theory of change and needs assessment

Nonprofits are increasingly recognizing the value of a Theory of Change (ToC) approach to guide their work. A ToC is like a roadmap that shows how a nonprofit’s actions lead to the changes they want to see in the world. It helps them understand the steps they need to take and what assumptions they’re making along the way. By having a clear ToC, nonprofits can work more effectively and also show their supporters exactly how their donations are making a difference.

But before creating a Theory of Change, nonprofits need to do their homework. They need to understand the real needs of the people and communities they serve. This is where a Needs Assessment comes in. By carefully studying the problems they want to solve, nonprofits can ensure that their programs are actually helping. This also strengthens and makes their Theory of Change more convincing to potential donors.

For nonprofits who need help with all of this, there are experts called social impact consultants. They can help organizations figure out their goals, decide what to measure, and create a solid plan for showing their impact. It’s like having a guide to help them navigate the sometimes tricky world of impact measurement.

The bottom line

Impact measurement isn’t just a buzzword; it’s a game-changer for nonprofits. It’s about using data to understand how their work is changing lives and making the world a better place. By embracing impact measurement and using the right tools, nonprofits can do more good than ever before.

At Social Impact Solutions, we’re experts at helping nonprofits measure and market their impact. Our team of social impact consultants can help you figure out what to track, create plans to collect the right data, and use technology to make sense of it all. If you’re ready to take your nonprofit’s impact to the next level, we’re here to help!

Learn more about how Social Impact Solutions can help you measure and maximize your impact by taking our fundraising quiz!

The post How Nonprofits Are Using Data To Do More Good appeared first on Bloomerang.

What is the Bloomerang ROI Calculator?

The Bloomerang ROI Calculator estimates your growth using information you provide about your fundraising revenue, constituent count, and annual donors. This projection is based on averages from Bloomerang customers who’ve used our platform for more than two years. It factors in the costs of donor management, fundraising tools, and transaction processing fees, giving you a clear picture of the results you can achieve using Bloomerang.

Why should you use this ROI Calculator?

Imagine knowing, with confidence, how much more you could achieve with a proven platform like Bloomerang. The Bloomerang ROI Calculator delivers:

• Tailored growth projection. Receive a customized report that projects your organization’s growth over three years based on your estimated investment and current online fundraising efforts.
• Results based on actual customer data. Gain insights from estimates that use data from customers who’ve used Bloomerang for over two years, reflecting actual experiences and success.

Ready to see the numbers?

Don’t just take our word for it—try it yourself. Use the Bloomerang ROI Calculator to discover the potential growth and impact your organization could experience with Bloomerang. It’s quick, easy, and the first step toward making more informed, strategic decisions for your fundraising efforts.

Try the Bloomerang ROI Calculator today!

We’re thrilled to provide you with the tools you need to succeed. Get started with our ROI Calculator.

The post Unlock Your Nonprofit’s Potential With The Bloomerang ROI Calculator appeared first on Bloomerang.

Streamline data collection and integration with AI

Nonprofit organizations often struggle with the manual and time-consuming process of collecting and integrating data from various sources. AI-powered tools, such as data integration platforms and robotic process automation (RPA) software, can automate these tasks, extracting data from multiple sources, standardizing it, and integrating it into a centralized database. By streamlining data collection and integration processes, nonprofits can save time and resources, allowing staff to focus on strategic initiatives and decision making.

At our nonprofit firm, we have implemented AI-driven data integration solutions to streamline our data management processes. By automating the collection and integration of donor data, program metrics, and financial information, we have gained real-time insights into our operations, improved reporting capabilities, and optimized resource allocation. This has empowered us to make data-driven decisions that have enhanced our impact in the communities we serve.

Enhance data quality and governance using AI

Maintaining data quality and ensuring compliance with data governance standards are critical for nonprofit organizations. AI technologies, such as machine learning algorithms and natural language processing (NLP) tools, can help improve data quality by detecting errors and inconsistencies, as well as ensuring compliance with data governance regulations. By leveraging AI for data quality and governance, nonprofits can enhance the accuracy and reliability of their data assets while mitigating risks associated with poor data quality and non-compliance.

At our nonprofit firm, we have utilized AI-driven data quality tools to enhance the accuracy of our donor records, program metrics, and financial data. By leveraging machine learning algorithms to identify and correct data errors, we have strengthened the integrity of our data assets and improved our decision-making processes. Additionally, AI-powered data governance solutions have enabled us to enforce data privacy regulations, monitor data access, and enhance security protocols to protect our data assets.

Drive strategic decision making with predictive analytics

Predictive analytics powered by AI can provide nonprofits with valuable insights into donor behavior, program outcomes, and operational performance. By analyzing historical data and generating predictive models, nonprofits can forecast future outcomes and make data-driven decisions to optimize fundraising efforts, improve program effectiveness, and enhance organizational sustainability. Predictive analytics can help nonprofits tailor fundraising strategies, allocate resources effectively, and identify areas for improvement to maximize impact.

At our nonprofit firm, we have embraced predictive analytics to drive strategic decision-making and enhance our impact. By leveraging AI algorithms to analyze donor data and predict giving patterns, we have personalized fundraising campaigns and optimized resource allocation. Additionally, predictive analytics has enabled us to forecast program outcomes, identify cost-saving opportunities, and drive continuous improvement in our programs to achieve greater impact.

Conclusion

In conclusion, when you leverage AI for nonprofit data management, it’s not just beneficial—it’s the best approach for achieving success and maximizing impact. By automating data collection and integration, enhancing data quality and governance, and driving strategic decision-making with predictive analytics, nonprofits can unlock the full potential of their data assets and drive better outcomes for their missions.

As nonprofits navigate the challenges of managing data effectively, embracing AI technologies can provide a competitive advantage and unlock new opportunities for growth and impact. By investing in AI-powered solutions and fostering a data-driven culture, nonprofits can position themselves for long-term success and sustainability in an increasingly data-driven world. Together, let us harness the power of AI to drive positive change, make informed decisions, and create lasting impact in the communities we serve. When you leverage AI for nonprofit data management you’re making the best choice for achieving your mission and driving meaningful change.

The post Why You Should Leverage AI For Nonprofit Data Management appeared first on Bloomerang.

Living in uncertain times

Recent events have led to uncertainty in today’s world. In 2020, the COVID-19 pandemic forced organizations to pivot to survive. Suddenly, there was no clear path forward, and we did not know if things would return to normal. We still face uncertainty today, given inflation, rising costs, high employee turnover, and political unrest. Do you find yourself asking how to pivot during uncertain times? Will you have the capacity to achieve your missions? Will you bring in enough money to survive during these uncertain times?

Why data should drive your decisions

Many key industries, including retailers, manufacturers, and healthcare organizations, use data to inform decisions. Each of these industries needs to study an aspect of their output to see how it performs and decide if they need to change. For example, a clothing store puts out a new line of clothing; they want to know how that line is performing. If it does well, it may produce more items like it. If it does poorly, it can quickly pivot and put out something different to please their audience and boost their profits. Unfortunately, 50% of nonprofits do not know how data can support their work, and 31% do not know what to do with this information. Does this sound familiar to you? Leveraging data during uncertain times will help you lead more confidently and succeed no matter what happens. To be successful despite uncertainty, you must let data drive your decisions.

Using data to help your organization thrive

Here are four strategies to help data drive your decisions so your organization can thrive!

1. Know your goals

You need to know your goals to let your data drive your decisions. What does your organization want to accomplish? How will you identify these goals? Some organizations utilize Key Performance Indicators (KPIs) to measure their goals. Donorbox defines KPIs as “a measurable value that demonstrates how effectively a nonprofit (or another type of organization) is achieving its key organizational objectives.” KPIs should be clear, quantifiable, and adaptable. An example of a KPI could be the number of surveys completed after an event. This is a measurable number that could be adapted if the survey needed to be given in different formats. Please talk with your staff and board members about what goals would best serve your organization and prioritize them. Recognize that your organization may need to pivot, and doing things the same way may no longer work.

One question you can ask is: “What impact do you want your organization to make?” Consider additional questions such as “What programs and services are most effective?” and “What products and services are most viable?” Answering such questions will help leverage your staff, time, and resources. Identify your goals first, or you will waste time on data that will not support your organization’s success. Include your employees and enable frontline action when identifying and prioritizing your goals. This will build buy in, and you will likely learn something essential to inform your goals.

2. Identify what data you’re already collecting

After identifying your goals, you need to look at what your organization is already collecting. As the First Republic Bank reported, 90% of nonprofits are already collecting data! Unsurprisingly, most organizations collect data through forms, questionnaires, surveys, databases, and customer relationship management systems. You are likely already collecting data about how many people you serve or your income. The problem is that fewer organizations examine patterns and trends from their existing data.

This step can differentiate organizations that are merely surviving from those that are thriving. Analyzing your data may require pulling information from multiple sources and seeing what can be learned using descriptive and inferential statistics. Another consideration is that various people may be collecting data. Talk with your staff to see who is involved and what data is being collected. If possible, avoid situations in which multiple people are collecting the same information.

Now that you know what you are collecting, revisit your goals and highlight what you are missing. What information is vital and helpful? Does the information you have not align with your goals? Are you collecting data that is not important? You may be tracking the number of likes on a Facebook post. How does this information support your organization? If such data does not serve your organization, stop collecting it. Sometimes, less is more, especially when your organization needs to streamline its processes to save time, money, and resources. Identifying your critical data sets will help your organization in the long run.

3. Choose new metrics

Once you have identified the data you already have, it may be time to select new metrics that better align with your goals. Think about what metrics you will use. Ask yourself what information is relevant, timely, and actionable. Metrics are defined as the “Parameters your organization will use to measure performance.” What kind of performance matters to your organization? Some possible metrics could include the number of unique people served, retention rate, customer satisfaction rating, net promoter score, total amount from fundraising, graduation rate, turnover rate, and so on. The more specific the metrics, the better you can measure whether they were completed.

For example, imagine you employ 100 workers, and one of your goals for the year is to reduce turnover. You implement a new training program and offer additional benefits. Your new metric may be a 20% reduction in employee turnover. You could compare how many employees left during the previous year to the current year and see if you achieved your goal. Choosing new metrics and determining whether they were completed is essential in letting data drive your decisions.

Fundraising effectiveness is a critical metric for many nonprofits, especially in times of uncertainty when inflation and federally funded grants could affect yearly budgets. A recent Bloomerang article mentioned three metrics for measuring fundraising effectiveness:

1. Total fundraising net focuses on whether a nonprofit made enough money to fund its mission. Total amount raised minus total fundraising expenses
2. Dependency quotient encourages nonprofits to diversify their funding streams. It examines whether your organization depends on a small number of large-scale donations. The sum of contributions from “X” largest funders divided by total organization expenditures
3. Cost of fundraising reflects what it costs to raise money: total fundraising expenses divided by total fundraising net
   

Both examples provide important metrics to measure. However, there are infinite metrics you could consider that may be about something other than employee retention or fundraising. Some of these could be simple, such as whether you receive engagement on your social media posts and what type of engagement. Did people like your post, or did they share it? Other metrics could be more complex and require pooling multiple data points. For example, suppose you wanted to calculate how many family members were served through your program. In that case, you may need to examine who attended this program and how many people comprised their household to get to the metric of family members. These are all things you will need to consider when collecting your data. If you need help figuring out where to start, work with an expert to help!

4. Collect quality data

Lastly, when you are ready to let data drive your decisions, ensure you have quality data. What is quality data, you may wonder.

Bad data will not help your organization because you cannot make a good decision. There are many ways your data could be bad. One way is simply having too much data. Too much data can be hard to process and manage, leading to less certainty in your decisions. Additionally, your data could be incorrect. Bad data can also come from bad questions. Simply put, you will get bad responses if you ask bad questions. Ensure that you are asking what you want to study. Lastly, if you do not properly input your data, then your data-informed decisions could be compromised. When you record your data, errors are more likely to happen if it is messy or unorganized, and incorrect data will be reported. To avoid inaccurate or bad data:

• Train your staff. They should collect data in a neutral way that is consistent and systematic. There must be little to no room for interpretation when working with your data to keep it as accurate as possible. Thomas Montvilas, a Forbes Council member, states that having clear company data policies from strong leadership will help prevent errors in your data and ensure data privacy and security. Additionally, building up your employees to work with data will foster continuous improvement in customer and employee experiences as future innovations occur, which is ultimately an investment in your organization.
• Have a secure place to store your data. Ensure it is accessible only to those trained to use it adequately and can see the information, especially if it is confidential, such as names and addresses. Something as simple as using a password-protected file can add security to your data to help ensure confidentiality. The CITI Program offers training covering the APA Code of Ethics. It can help train your leaders and staff to collect quality data and keep sensitive content confidential.

Seek help as needed

Again, if this sounds overwhelming, work with a professional! Collecting bad data will not help your organization, and your organization will waste resources. Implementing these four strategies will help your organization thrive!

The post Let Data Drive Your Decisions appeared first on Bloomerang.

Analyzing your campaigns can help you:

• Track how the campaigns are performing so that you can adjust and improve them along the way
• Understand how well the campaigns performed compared with your goals
• Identify trends and opportunities that you can use to improve future fundraising campaigns

So, let’s look at some top tips to help you evaluate your nonprofit’s online fundraising campaigns.

1. Access your data.

Of course, analyzing your fundraising campaigns starts with accessing data from your online fundraising software. It can be helpful to set up dashboards that give you a daily overview of key performance metrics and trends for each of your campaigns.

Also, be sure to set up more detailed reports for deeper analysis. The way you set up your dashboards and reports will depend on multiple factors, including your data analysis goals and what data you need to inform your analysis.

A good place to start is to think about the metrics that are most important to each campaign. Some metrics might include:

• Total funds raised
• Number of donors
• Average donation size
• For events: number of registrants/attendees
• For peer-to-peer fundraising campaigns or events: number of participants, number of returning participants, number of teams, average team size, average number of donations per participant

Then, set up your dashboards and reports to track year-over-year results for those metrics based on the number of weeks out from the event or campaign start/end. This will allow you to compare your progress at each point in this year’s campaign to the same point in last year’s campaign so that you can make needed adjustments.

BONUS TIP: While analyzing your fundraising campaign data is important, you can spend weeks (or months!) doing so without accomplishing anything. So, be sure to focus only on metrics that are most relevant to your campaign goals.

2. Analyze during the campaign.

Reviewing your campaign daily, weekly, and monthly allows you to adjust the campaign for optimal results.

For example, suppose your campaign is an online peer-to-peer fundraising campaign, and you see that the number of registered participants is down one week compared with the same point in your previous campaign. In that case, you might offer an incentive to encourage participants to register. If total funds raised by participants are down from the last campaign, you might increase participant engagement by offering tips and examples from your top fundraisers.

BONUS TIP: If you identify specific changes you should make, try making just one or two at a time to get an accurate idea of their impact.

3. Evaluate post-campaign data.

Run final reports after your campaign has ended, and all donations have been entered. Consider high-level factors, such as:

• How did the overall fundraising campaign results compare with the goals you set?
• For results that were higher or lower than your goals, what factors do you think impacted those outcomes?
• How effective were your various marketing channels and efforts?

Then, dig deeper to look at trends that might give you more insights. For example, did your marketing channels or activities have less/more impact than they’ve had in previous campaigns? If so, what might have changed? Your messaging? Your branding/images? The frequency of messages?

4. Consider success factors other than numbers.

It’s hard to argue with hard numbers, but qualitative aspects of a fundraising campaign are just as important as numbers. Listen and respond to feedback from your participants, attendees, sponsors, donors, and staff throughout your campaign. Also, send a post-campaign survey to various audiences involved in the campaign to better understand things like:

• How much staff effort did the campaign take? Were there any process bottlenecks that could be improved?
• What did various audiences like/dislike about the campaign in terms of registration, fundraising, donating, and the overall campaign?
• How easy was using the campaign website, fundraising tools, and donation process?

5. Debrief with your fundraising team.

Meet with everyone on your staff involved with the fundraising campaign to review your campaign goals, discuss the campaign results, and talk through lessons learned. Be sure to take detailed notes to refer to later as you plan the next campaign.

6. Think about the next campaign.

Once you’ve evaluated your campaign, start thinking strategically about your next campaign. Here are some things to consider:

• If your last campaign wasn’t as successful as you’d like, consider changing the next campaign’s timing, messaging, theme, or structure.
• If your campaign met most of your goals, maybe you should focus on making sure your next fundraising campaign doesn’t leave money on the table.
• If the fundraising campaign exceeded your goals, maybe your strategy should be to focus on a specific area of the campaign, such as providing sponsors with greater value to keep them coming back, giving peer-to-peer fundraising participants the tools and encouragement they need to raise more, or encouraging past donors to give again by showing them the impact of their donations.

You can also use your fundraising campaign data for specific insights into how to improve your future campaigns. For example:

• When to start – Look into your past campaigns to understand the best time to launch various aspects of your campaign. For example, for a peer-to-peer fundraising campaign, look at when your top performers registered. Then, consider timing a multi-channel recruitment approach that coincides with when your biggest supporters typically register. That way, you can use their enthusiasm as a launching point for registration.
• Where to focus your resources – Whenever you can, use source codes in your online fundraising efforts to attribute registrants and donors to specific marketing channels. Then, you can use this information to decide which channels are worth keeping, which should have more resources, and which you should leave behind.
• When to offer incentives – For example, if you’re running a peer-to-peer campaign and offer fundraising milestone badges, look up your levels to see how many participants reached them. If participants fall short of your lowest tier, you might want to lower it for the next campaign or adjust your communications to encourage participants to reach their goals. On the flip side, if too many people are quickly reaching your lowest tier, consider raising it.

Analyzing your fundraising campaigns goes a long way toward making them the best they can be. Take time to gather and study fundraising campaign data, and you’ll have the insights you need to take your future campaigns to the next level.

Author: Mark Becker, Founding Partner, Cathexis Partners

Mark founded Cathexis Partners in 2008, providing technical and consultative services to nonprofits of all sizes and types. He previously served as director of IT consulting at a fundraising event production company focused on nonprofits. For more than 20 years, Mark has supported hundreds of nonprofit online fundraising efforts.

The post 6 Tips for Analyzing Online Fundraising Campaigns appeared first on Bloomerang.

Dear Charity Clairity,

A donor advised in early December a $20,000 check was mailed to us. We informed her in the 3rd week of December we had not received it. She then advised she cancelled the first check and sent a new one. We received the new check dated 1/12/24 and deposited it.

The question is whether any type of amends can be made to credit the donation to 2023, if the check was dated 2024? This was a personal check, but we were also given notice by an investment advisor. We want to know whether we, as the nonprofit, need to make remedies with the donor or does the responsibility lie with the donor if a postdate correction needs to be made?

— Want to keep donor happy

Dear Want to keep donor happy,

Of course you do! But you don’t write the law, and you must stay within it.

For starters, please allow me to refer you to a previous question I answered on this topic. SEE In Which Year Are Gifts Made On Or Before December 31, But Received In January, Counted?

You may be familiar with the expression “possession is 9/10ths of the law.” Well, when it comes to donations, possession is all of the law!

Generally, possession is determined by who has control of the money at any point in time. Whenever the gift leaves the donor’s possession – and they can’t get it back – that’s when the gift is considered made. But it’s a bit tricky.

Delivered when mailed

Clearly, if the donor had mailed cash, she wouldn’t be able to get the money back once she’d dropped the envelope stuffed with bills into the mailbox. So, the gift would be made at that time. However, evidence of when the gift is mailed via USPS is whenever the envelope is postmarked. This is known as the Treasury Department’s “delivered when mailed” rule. So, if an envelope sits in a mailbox over a weekend, and it isn’t postmarked until after the 1st of the year, that’s when the donation is technically deemed made. The postmark rules.

NOTE: You might reasonably think when a donor mails a check (not cash) they still have agency to cancel that check up until the time the charity deposits or cashes that check. In fact, that’s what happened in your situation. Nonetheless, for purposes of gift substantiation, the “delivered when mailed” rule applies to checks sent via USPS as well.

With gifts (cash or check) sent by a private mail service (e.g., UPS or FedEx), the “delivered as mailed” rule does not apply. This is because it is presumed, up until the date the gift appears on your doorstop, the donor still has possession as evidenced by the fact they can still contact the third party and cancel the transaction. Once the charity receives the mail, even though the donor might technically still be able to cancel a check, it is presumed the charity had the right to immediately cash or deposit it (whether they did or not is immaterial). If the check sent via private carrier arrived before December 31st, the donor’s deduction would fall in that calendar year. If it arrived after that date, the deduction would properly belong in the year the charity assumed possession.

Payable when dated

In your case, you neither received nor was the check dated in the calendar year ending December 31st. You note when you received the replacement check it was postdated for January 12th of the current (not previous) calendar year. The date of mailing will not make any difference if the check is postdated. A postdated check is not an immediately payable contribution, but is a promise to pay on the date shown.

Since you could not take possession until mid-January, the gift is considered made in the new calendar year.

Impact of third-party advice

Finally, the fact the donor’s investment advisor merely informed you a gift would be made at some future time has no bearing on when the gift came into your possession. It’s useful in that you’ve got somebody else to connect with in order to try to effect your donor’s wishes, but the fact a donor tells an advisor to do something is not dispositive. The gift must still be delivered into your possession for the gift to be deemed made.

What should you do?

If in the future a donor or advisor notifies you a gift has been mailed, and you notice it has not been received, you might:

1. Suggest the donor hand deliver the check to you prior to December 31st.
2. Suggest the donor send the check via registered or certified mail, return receipt requested.
3. Offer to personally pick the check up at the donor’s place of work or residence.

For now, hopefully this helps you explain to your donor why this gift must be credited to the current tax year, both for their tax purposes and for your charity’s recordkeeping purposes and financials. It may not be what they had hoped for, but sometimes these things happen. By explaining you’ve done your due diligence, and are sorry you don’t have better news this time, hopefully you’ll be able to maintain a good relationship with your generous supporter.

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Want to keep donor happy” did.)

This is not intended as professional legal or tax advice. Please consult your own advisors!

The post Can A Check Dated In One Calendar Year Be Credited To A Different Calendar Year For Tax Deduction Purposes? appeared first on Bloomerang.

Picture this: your donor data and fundraising trends reports are due, but instead of the usual stress, you’re calm, prepared, and even proud of what you’re about to submit. Sounds ideal, right? Let’s find out how to achieve that level of reporting Zen consistently.

Why report love matters

Choosing a donor database is a pivotal decision for nonprofit fundraisers, influenced mainly by reporting capabilities.

The quality of reporting can vary significantly across different price points. The old axiom rings true, “you get what you pay for.”

Modern CRM reporting is crucial for several reasons, namely because the right reports will help you:

• Evaluate performance: Get a bird’s-eye view of your organization’s fundraising efficacy by analyzing key metrics like donation amounts, donor engagement, and campaign success.
• Gain donor insights: Deep dive into your donors’ behaviors, preferences, and giving patterns so you can tailor your outreach for better engagement and support.
• Optimize campaigns: Identify what works and what doesn’t so you can fine tune your efforts for maximum impact.
• Manage financial planning: Keep a pulse on your finances to streamline budgeting, forecasting, and resource allocation for sustainable growth and stability.
• Implement donor retention strategies: Uncover insights on retention rates to strengthen donor loyalty and reduce donor attrition.
• Measure Impact: Link fundraising successes to specific projects or programs, showcasing the tangible outcomes made possible through donor support.
• Comply with regulatory requirements: Ensure compliance with legal and regulatory obligations, maintaining a transparent record of financial transactions and donor interactions.
• Make better strategic decisions: Take advantage of data-driven insights for informed planning and execution.
• Communicate more effectively with your board and stakeholders: Offer a clear, quantifiable view of your organization’s fundraising activities to boards and potential fundraisers, building trust and accountability.

Key reporting features

The most impactful reports encompass a variety of aspects, from donation trends to donor retention. The ability to build customized reports using templates and analyze data in real time will notably enhanced your fundraising efforts. This adaptability is crucial for strategic decision making and underscores the value of upgrading to a more advanced platform.

While this post focuses on donor reports, see this link to learn more about reports on volunteer activities.

Ease of use: A game changer

Ease of use significantly affects the adoption and effectiveness of a CRM. Features like step-by-step reporting guides, a vast selection of predesigned templates, and the ability to customize data fields for targeted insights are pivotal. They streamline the reporting process, making it not just about number-crunching but a strategic tool for engagement and decision-making.

Look for a variety of predesigned report templates that include:

• Newest Donors
• Loyal Donors
• Monthly Donors
• Donors to Call Immediately
• LYBUNT
• SYBUNT
• Projected Revenue
• Downgrades
• Household Averages
• Pledge Reminders
• One-time Donors
• Online Givers
• Employer Relationships

Is that list long enough for you?

We saved the best for last: a predesigned report tailored to high-potential donors. This is a group of donors whose high level of engagement is matched by their high Bloomerang Generosity Scores^TM. To take advantage of these types of insights and potentially raise more revenue, look to Bloomerang, which exclusively integrates this “Predictive Giving” prospect research data right into its CRM.

You can also customize your own data fields and apply filters for targeted insights.

These automated reporting options make your fundraising process more efficient.

If you’re currently using Excel or Google Sheets, transferring that data into a modern CRM is straightforward. A good vendor will help you with all aspects of the transfer. Once you’ve uploaded your donor or volunteer data, you can access an easy-to-understand interface and highly intuitive reporting templates. This ease of reporting is one of the main reasons many nonprofits switch to a new donor/volunteer CRM.

“Reporting is not just list generation as it used to be! Now it’s about making sense of the data, the giving trends, and knowing more about your donor’s behavior toward your organization. That’s why we use “filter-based” reporting instead of the complex queries of our competitors. “Filter-based” reporting is a streamlined approach that simplifies data retrieval and analysis. Unlike complex queries involving intricate logic and multiple conditions, filter-based reporting focuses on selecting specific criteria to narrow down results.” Diana Otero, Product Marketing Manager at Bloomerang, is actively involved in nonprofits, having served on the board of the Nantahala Hiking Club, one of the 31 trail-maintaining clubs of the Appalachian Trail Conservancy.

Leveraging reports for strategic growth

Reports aren’t just numbers and lists; they’re the roadmap to elevating your nonprofit’s success.

They empower you to make strategic decisions regarding donor engagement, campaign development, and donor retention strategies, ultimately boosting your return on investment donor satisfaction.

The CRM you want should not only simplify report generation but also support automatic scheduling and feedback mechanisms, fostering a community among users and facilitating continuous improvement.

“I prefer CRMs that record a lot of interactions automatically, which reduces the burden on our team to update records. This also means that we have better data about who is engaging with us and what is resonating with them. Our communications, appeals, and reports continue to improve as we learn from the data Bloomerang captures.” Valerie Fitton-Kane, VP Development, Challenger Center

Don’t believe us? Listen to a nonprofit user

The Education Foundation of Lake County’s experience underscores the transformative power of an effective CRM. They’re dedicated to supporting Lake County, Florida schools in evaluating the needs of students and teachers and securing resources to ensure that every student and teacher has a better classroom experience. With a $1.5 million annual budget, here are a few of their key impacts:

• Teachers: More than 2,857 teachers have been positively influenced by the foundation’s initiatives.
• Investment in our schools: The foundation has invested an impressive $1,616,727 in Lake County schools.
• Students impacted: 59,434 students have benefited from the foundation’s programs.

So you can see why having the right CRM was so particularly important.

Amber Castellano, the Foundation’s communication and events specialist, and Kacey Edmondson, the donor development relations specialist, explained that the Foundation faced challenges in tracking donations, updating donor information, and maintaining effective communication with benefactors. Edmondson said the old database was inefficient: “It was so cumbersome that we couldn’t get quick information.” By partnering with Bloomerang, they achieved a more effective donation tracking system—leading to a 15% increase in donations year over year—better donor communication, and significantly increased their funding outcomes, highlighting the critical role of modern CRMs in nonprofit success.

“The ability to schedule reports has saved as much as two hours in a day.” Kacey Edmondson, Donor Dev. Relations Specialist

Why you too can LOVE CRM reports

When combined with the right tools and mindset, fundraising reports can significantly boost your nonprofit’s efficiency, strategic alignment, and community impact.

Modern CRMs, with robust reporting capabilities and user-friendly interfaces, enable you to not just meet but exceed your fundraising goals.

Embrace the power of reporting and unlock the potential to propel your organization toward greater success.

What’s your experience of the value of fundraising CRM reports? Let us know in the comments below.

The post Love At First Sight: Getting To The Heart Of Fundraising With Effective Reporting appeared first on Bloomerang.

This blog post delves into practical strategies for transforming your nonprofit’s annual report into a compelling narrative that highlights your achievements, tells stories of transformation, and motivates your community to continue their support.

In case you missed our webinar, feel free to watch it here and learn how to create annual reports that rock!

Showcasing impact with data

Visualizing success

The power of an annual report often lies in its ability to convey complex information in an accessible and engaging manner. Utilizing infographics, charts, and other visual tools can help break down your nonprofit’s achievements and impact into digestible bits. These visuals can make abstract numbers more tangible, showing, for example, how many individuals benefited from your services or the scale of volunteer involvement over the course of a year.

Highlighting key achievements

Remember, there are two reasons why donors give!

1. The impact metrics you share
2. The stories of transformation you tell

Selecting which metrics and outcomes to highlight is crucial. Whether it’s the number of meals provided to those in need, acres of habitat preserved, or individuals who gained access to clean water, it’s important to spotlight achievements that best communicate the social impact you’re creating and resonate most with your supporters.

Incorporating testimonials

Adding personal testimonials from beneficiaries, volunteers, and partners can give a human face to the numbers. These stories can significantly enhance the impact of your data, making the success of your programs feel more real and immediate to your readers.

Additionally, testimonials can help build trust and credibility with your audience, as they provide real-world examples of the positive impact your organization is making. By sharing these stories, you can create a stronger connection with your readers and inspire them to take action, whether that means donating, volunteering, or spreading the word about your cause. Including personal testimonials is a valuable strategy for any organization looking to communicate the impact of their work in a compelling and engaging way.

Do you want to take your fundraising to the next level? Take this 2-minute quiz to learn the secrets to growing your nonprofit. 

Telling stories of transformation

Selecting stories

The heart of any impactful annual report is the story it tells. Choose narratives that vividly illustrate your mission in action. Look for stories of change that not only showcase the direct benefits of your work but also highlight the broader social, economic, or environmental impact.

Storytelling techniques

Craft these stories with care, using narrative techniques that engage the emotions of your readers. Create a compelling arc of challenge, action, and transformation that readers can follow. Use real-world examples to paint a vivid picture of the challenges faced and the outcomes achieved.

We recommend that you start simply and inform your donors with the following story arc:

• What problem does your organization solve?
• How does your organization solve that problem?
• What does the world (or your target audience) look like now that you are solving that problem?

Keep this EXTREMELY clear and simple! The worst thing you can do is confuse your audience.

Multimedia elements

In the digital age, incorporating multimedia elements into your annual report can bring your stories to life. Photos, videos, and audio clips can make the experiences of those you’ve helped feel more immediate and impactful. These elements can also increase engagement with your report when shared online.

Inspiring donors to take action

Clear calls to action

Your annual report should not only celebrate past successes but also encourage future support. Include clear, compelling calls to action, inviting readers to donate, volunteer, or simply share the report within their networks. Make it easy for readers to take the next step in supporting your cause.

Demonstrating gratitude

Acknowledging the contributions of donors and supporters is crucial. Show your appreciation for their role in your achievements, reinforcing a sense of community and shared purpose. A message of gratitude can strengthen the bond with your supporters, encouraging continued involvement.

Follow the instructions in this blog to position your donors as the heroes of this story and inspire action!

Future vision

Use your annual report to outline your vision for the future. Describe upcoming projects and how donors can contribute to their success. This not only keeps your supporters informed but also excited about what their contributions can help accomplish next.

Design and distribution

Engaging design tips

The design of your annual report should reflect your nonprofit’s identity, brand, and mission. An engaging, well-designed report can capture attention and make your content more memorable. Ensure that your report is not only beautiful but also easy to read and navigate.

Maximizing reach

Finally, think strategically about how you distribute your annual report. In addition to traditional channels like mail and email newsletters, leverage your website and social media platforms to broaden its reach. Encourage sharing to maximize impact.

In our webinar, Annual Reports that Rock, we outlined a distribution strategy for how you can get more of the right people to read your annual report to encourage giving!

Conclusion

The nonprofit annual report is a unique opportunity for organizations to consolidate their achievements, share inspiring stories, and rally support for their cause. By focusing on impactful storytelling, engaging design, and strategic distribution, your annual report can become a powerful tool for engagement and inspiration. Let it not just be a reflection of what has been accomplished but a beacon for what is still possible.

We invite you to share your own experiences and successes in creating impactful annual reports. If you’re looking for more insights or assistance in elevating your nonprofit’s storytelling and impact measurement strategies, we’re here to help. Together, we can create narratives that not only inform but inspire and drive change.

Social Impact Solutions exists to help mission-driven organizations measure and market their impact so they can raise more money and do more good. By combining data analytics, storytelling, and marketing expertise, we guide organizations toward greater visibility and impact, helping them to connect deeply with supporters and communities. Our mission is to amplify the positive change nonprofits make in the world.

How would you transform your nonprofit annual report? Let us know in the comments. 

The post Transform Your Nonprofit Annual Report Into A Powerful Fundraising Tool appeared first on Bloomerang.

What does the current state of donor retention in the sector look like and what can we learn from it? In a nutshell: The personal touch works. Creating a second gift strategy will help you make retention a priority.
 
In this session, you’ll learn why donor retention is important while gaining practical retention tips and real-world examples you can use to ensure that your donors keep giving.
 
Learning Objectives:

• A study of donor retention: current third-party stats on the state of donor retention in the sector

• Why do donors stop giving and why do they keep giving

• Practical retention tips and real-world personal touch examples

View this session’s slides here

The post Donor Retention Trends and What You Can Do About It, Insights for Animal Welfare Nonprofits appeared first on Bloomerang.

The importance of financial management for nonprofits

Unlike many for-profit businesses, nonprofits don’t answer to shareholders who are focused solely on increasing revenue. That doesn’t mean having stable financials isn’t crucial for nonprofits too, though.

Your nonprofit’s purpose and mission cannot be fueled by passion alone; your organization needs funds to do the good work you’ve set out to do. Effective nonprofit financial management helps you maximize the value of the donations you receive and fulfill the vision of your nonprofit.

8 strategies for effective nonprofit financial management

There’s more to managing your charity or nonprofit’s finances than collecting donations, although that is a critical part. Nonprofits must consider how best to:

1. Develop a nonprofit financial policy
2. Create a budget
3. Find a dedicated nonprofit bank account
4. Collect and store financial data
5. Track Donations
6. Stay compliant with tax exemption IRS regulations
7. Maintain financial transparency and integrity
8. Plan for the future or worst-case scenarios

These and numerous other factors combine to create healthy financial management practices for nonprofit organizations. Plus, your board of directors has a fiduciary duty to ensure the donations and funds received go toward furthering your mission.

It isn’t easy to know where to start when creating a plan for your nonprofit’s funds because each step is important to the overall effectiveness of your financial management. If your nonprofit is just starting out or doesn’t have solid financial policies in place, now is the time to start!

1. Nonprofit financial policies

An organization’s financial policies provide a framework for many of the essential aspects of managing funds. Nonprofit financial policies should clearly outline the following:

• Who will be responsible for each financial management decision and task
• The organization’s conflict of interest policy
• Who has the authority to negotiate and sign contracts
• How the organization’s financial records will be maintained

Nonprofit financial policies will provide clarity and guidance for many of the decisions involved in financial management of your nonprofit. They will set downtime policies in place that ensure that your nonprofit’s funds are safe and being spent responsibly.

2. Nonprofit budget

Even nonprofits who have years of operation under their belt can struggle to predict how much money they will need for each operational category. That makes it even more crucial for each nonprofit to create a budget where they can estimate how much money they will need to operate that year, and what programs and personnel they have the funds for.

Preparing a budget isn’t an exact science, but some guidelines are better than none when it comes to your nonprofit’s operations and finances. Creating a budget can be challenging for new nonprofits when you don’t have past performance to use as a reference for future financial projections, but planning ahead is crucial nonetheless.

3. Nonprofit bank account

Not all banks are created equal, and nonprofits have unique needs that are rarely met by traditional banks. Using a nonprofit banking account can simplify nonprofit financial management and provide benefits that personal and business accounts do not offer.

For example, Crowded, one of the leading nonprofit-centered financial institutions, offers free fundraising tools and donation collection for its nonprofit account holders. Banking and financial features that are targeted to the ways nonprofits collect, track, and spend funds help organizations better manage their finances.

4. Data collection and storage

Not only is some financial data required by the IRS, but tracking your donations and expenses is also vital to effective financial management. Knowing which fundraising campaigns were most successful can help you plan future efforts. Understanding where your donations come from can also guide your outreach strategies for upcoming months. By creating an accessible and organized system to track fundraising and donation data, you and your team can easily understand how each task affects your organization’s finances.

5. Tracking donations

Carefully tracking donation data is a good idea, but many organizations are unsure about what specific information to prioritize. This is an understandable challenge because nonprofit management and donations involve a substantial amount of data. In terms of donation data, consider focusing on the following:

• Who donated, if known
• The amount of the donation
• How the money was donated (online, fundraising event, etc.)
• Payment method (cash, check, etc.)

Nonprofit organizations receive donations in numerous ways – special events, website pages, peer-to-peer fundraising, and corporate giving, to name a few. Effectively managing these donations and donors requires careful planning and targeted tools.

When donations are coming in from multiple sources, it can be challenging to track and allocate the funds. The ways people prefer to give are constantly changing. Whether your donors are giving to your organization through the mail, in-person, or online, the constant in any scenario is where you deposit that money: your nonprofit bank account.

6. Stay compliant with IRS tax exemption requirements

When your nonprofit is fully compliant with the IRS guidelines for nonprofits, you avoid fines, audits or tax exemption revocation. If your nonprofit collects donations, you must maintain your tax-exempt status in order to issue tax deductible donation receipts to your donors. Many US-based donors will only consider donating to your nonprofit if their donation will be tax deductible, so it is crucial to maintain this status for the overall financial health of your nonprofit.

7. Maintain financial transparency and integrity

Your nonprofit can achieve financial transparency by sending out annual reports to your supporters, publishing your annual tax information on your website, and being listed on trusted charity websites like Charity Navigator. Transparency inspires long-term donor loyalty, and attracts the right people into your nonprofit.

8. Plan for the future or worst-case scenarios

Once in a while, take a step back to think about your nonprofit’s future. Create a best case scenario long-term plan for fundraising activities and programs for your nonprofit. Take into account any future big expenses or popular donation periods (ex. GivingTuesday) to plan out your nonprofit’s finances for the future.

When your nonprofit relies largely on donations to function, your nonprofit is not only relying on the generosity of others, but also on the overall financial health of the economy. In a time of recession, the cost of living rises, and your nonprofit’s supporters may not have the same capability to donate to your nonprofit. It is smart to create a plan for your nonprofit in a time of recession.

Using each of these financial management methods will help your nonprofit manage your financials better, utilizing your supporters’ donations in the most efficient way possible!

The post Beyond Donations: A Guide For Effective Nonprofit Financial Management appeared first on Bloomerang.

Bloomerang refers to them as tax summaries—which they are—but they also summarize each donor’s cumulative giving. They form a powerful document informing donors about their total annual giving—a rare moment in the fundraising process.

Cumulative giving statements

Donors rarely know or keep track of their cumulative giving, so when you point out the total, they’re usually quite pleasantly surprised.

Sending annual tax summaries to your donors provides an opportunity to make them feel good about how generous they have been. We strongly encourage you to make the most of this opportunity.

While tax summaries might seem like just another administrative task, savvy nonprofits use them as powerful cultivation moments to deepen relationships with donors.

Major gift officers often prepare TOTAL GIVING statements before meeting with their major donors because they, too, lose track of their cumulative generosity.

A donor who sees the history of their contributions is more likely to feel a sense of loyalty to your organization—a crucial factor in retaining donors over the long term. When donors feel a solid connection to your cause and understand the impact they’ve had, they’re more likely to stay committed.

Understanding a donor’s cumulative giving also helps your organization to build and nurture relationships strategically. You can identify donors who’ve consistently supported your cause and tailor your engagement strategies to deepen those relationships—potentially involving them in higher-level giving or leadership roles.

Further, high cumulative giving offers opportunities for special recognition. You can create giving societies or exclusive events for donors who’ve reached specific cumulative giving milestones. These events offer an excellent opportunity to acknowledge their generosity and provide incentives for continued support.

It’s a home run to show donors their cumulative annual or total giving because it goes beyond individual transactions and builds a narrative of shared impact, recognition, and trust. This lays the foundation for a lasting and mutually beneficial relationship between the donor and your nonprofit organization.

What are tax summaries?

In the nonprofit world, tax summaries are the golden tickets that encapsulate a donor’s generosity throughout the preceding calendar year. The statement itemizes each donation and shows the total donated.

Using the Bloomerang platform, you can effortlessly email year-end tax summaries to your entire database in just a few minutes. The email contains a secure link for recipients to download a PDF containing a comprehensive listing of their tax-deductible contributions from the preceding calendar year.

Pre-built templates make the process of running a list of donors easy. You can use them as is or edit them to suit specific audiences or needs:

• Year-end Tax Report (Revenue)
• Year-end Tax Report (In-Kind)

The IRS requires nonprofits that receive more than $250,000 in annual contributions to send year-end tax documents to donors. They’ll assess penalties if you don’t.

It’s important to understand the specific rules and regulations surrounding charitable donations and tax deductions, as they can vary based on your donors’ particular circumstances and the type of organization they donate to.

For a comprehensive overview from the U.S. Chamber of Commerce, see How Do Charitable Donations Impact Your Taxes? You can share this link with your donors.

Why should nonprofits care?

Beyond the apparent legal and accountability aspects, tax summaries offer nonprofits like yours a unique opportunity to express gratitude and reinforce the impact of your donors’ contributions. It’s not just about numbers; it’s about recognizing the individuals who make a difference.

The cultivation moment: Turning receipts into relationships

Issuing tax summaries is more than just a paperwork drill. It’s a chance for you to turn a transactional moment into a cultivation opportunity. Here’s how:

• Express gratitude: Include a heartfelt thank-you message in the email accompanying the tax summary. Let donors know the measure of their impact is more than dollars and cents.
• Highlight impact: Take the chance to showcase a tangible outcome of the donors’ contributions. Share a success story, donor testimonial, or an update on projects funded by their generosity.
• Invite engagement: Encourage donors to ask questions, make suggestions, or share their thoughts. Use this as a segue to deepen the connection and understanding between the nonprofit and its supporters. Offering a donor survey would be advised.
• Make it personal: If your platform allows, customize the tax summaries to reflect each donor’s unique journey with your organization. Acknowledge milestones, anniversaries, or any unique connections that make them an integral part of your community.
• Encourage social sharing: Include social sharing buttons or pre-drafted messages in your email. Gift your donors the ability to become ambassadors by sharing their contributions and support with their networks, potentially expanding your reach.

Key takeaways

Sending year-end tax summaries is a great way to help donors get the tax credits they deserve while thanking them for their impact on your organization.

Tax summaries are not just about numbers but about nurturing a sense of belonging and appreciation among donors.

Here’s a list of best practices for sending year-end tax statements to donors.

What are your thoughts about tax summaries? Please share them in the comment section below.

The post Turning Tax Season Tears Into Cheers: Your Chance To Cultivate Donors appeared first on Bloomerang.

 
Thinking about data at a high level can inform and streamline the small details in your database.
 
In this class, we will discuss industry terminology and best practices, why it matters to keep everyone aware of the how’s and why’s of your database, and how to prepare for a worst-case scenario BEFORE disaster strikes!
 

The post Database Management appeared first on Bloomerang.