What I’m Curious About

Do your donors trust you to manage their money?

A recent survey found that a remarkably high number of donors heavily consider a nonprofit's financial responsibility when making donations. And with trust on the decline in the philanthropic world, it’s going to be more important than ever to take whatever steps you can to help your donors understand how their money is being managed.

Consider adding transparency in financial reporting and accountability for how funds are spent whenever possible, like adding an annual report to your website. Explore other ways that you can show effectiveness in your financial management. Is it possible to share how donations are being used for overall results and to specific programs or initiatives? 

At the end of the day, donors want to know their gift is making a difference in some way. They want to know they’ve made the right decision to invest their money in your organization. Let your supporters see that their donations are being used effectively to support your mission, and they’ll be more likely to give.

What I’m Passionate About

Ways To Destigmatize Donor-Advised Funds

Donor-Advised Funds (DAFs) have become increasingly popular in recent years as a tax-efficient and flexible way for many donors to support their favorite nonprofits and charitable causes. However, some have raised concerns that the complexity of the DAF system and the lack of accountability in how funds are distributed can make it difficult for them to serve their intended purpose. Just as there has been a call for foundations to spend down more of their endowments, so, too, there have been some who question why donors “park” their money into DAFs when it could be put to immediate use being directly given to nonprofits. Here are the highlights of the DAF landscape:

According to the Nonprofit Philanthropic Trust’s 2022 DAF Report, grants from DAFs to qualified charities totaled an estimated $45.74 billion, representing a 28.2 percent increase compared to 2020. Today, there are more than 1.2 million DAF accounts and payouts from DAFs have consistently been 20% or more. In 2022, it was 27.3%–the highest on record.

DAFs are here to stay.

So, what’s the catch? Well, while DAFs account for an estimated 10% of all contributions in the U.S., there are some concerns about their lack of transparency and potential for abuse.

In our latest blog piece, we explore what DAFs are and how to ensure that they are effective tools for what they’re supposed to do - serve as a way for donors to maximize their giving impact.

What I’m Talking Back To

Nonprofits Lag When It Comes To Social Responsibility

As philanthropists, our goal is to help create lasting, positive change in society. That’s what nonprofits are set up to do as well as pioneers for social change working in tandem with the communities. But according to a new report, our sector lags behind for-profit companies when it comes to social responsibility.

For nonprofits who are already mission driven and socially focused, social responsibility typically includes activities such as advocating for social justice, promoting environmental sustainability, and providing support to underserved communities. But nonprofits are so often doing the work and they aren’t always reporting on the work. The sector has worked hard to include ethical fundraising practices, environmental sustainability, and inclusion in our practices. Nonprofit organizations often face unique challenges in reporting on sustainability because of the difficulty of measuring and quantifying social impact.

There is a solution, though. Clear donor communication that regularly talks about the results the nonprofit is achieving. This can be conveyed in electronic and print reports and newsletters and on the website. That is the single most important driver for donors when making donation decisions.  For an easy and cost-effective way to create impact reports your donors will want to read, check out Yearly.

Is your organization meeting its fundraising goals?

Book a 15-minute introduction call with me to explore how we can help.
Contact me at (703) 972-2406 or boreilly@whillconsulting.com.

About Barbara O'Reilly, CFRE

I’m Barbara O’Reilly, CFRE. As a senior fundraising consultant, I help non-profits peel back the layers and develop a profitable fundraising strategy that focuses on the resources, skills, and tactics they need to build stronger donor relationships and catapult their revenue.

Over the past 25 years, I’ve led record-setting reunion campaigns, been part of major capital campaigns, and successfully managed relationships with major individual and corporate donors. I’ve also helped to launch a new nonprofit; spent many years in a large, complex organization; and worked with everyone in between. I know my team and I can help you catapult your fundraising revenue.

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