How to Get Your Organization Ready for the Philanthropy Season

By Barry N. Chait, Esq.

Statistics show that the two months during which people donate the most money to charities are December and April.  December is the month when people are in holiday spirits and are conscious of year-end tax planning.  April is the month when individuals file their tax returns and realize how little they actually gave to charity in the prior year and attempt to atone of their sins of the prior year.

1.         Make sure your website is up to date and has listed all recent accomplishments.  Donors want to know where their money is going; what types of services are being provided in furthering the charity's mission and what the organization plans to do in the future. Seeing programs that are two years old does not give much comfort to donors that the programs are moving ahead.

2.         Make certain that the organization's mission and purpose are clear and concise and readily readable on the website.  Many times I have to search high and low through a website to determine exactly what the charitable purpose of an organization is and by the time I find it, I am convinced that the organization is trying to hide something.

3.         Make donating to your organization easy.  This can be accomplished by allowing your donors to donate directly through the website, and if the donor does not want to donate through the website, have clear and concise instructions on how to donate.  Additionally, let your donors know how the donations will be used and what type of alternative donations the organization accepts; such as does the organization accept publicly traded securities; does the organization accept boats and automobiles that can be auctioned off; are there any types of products used in the organization's mission that an individual may donate.

4.         Have your most recent tax filings readily available if anyone asks to see them.  This insures that the organization is in compliance with Internal Revenue Service Regulations and shows donors that the organization is not hiding anything.

5.         Do a search on the web and see what nonprofit watchdogs are saying about your organization.  Make sure that the information is accurate and if it is not, make sure to contact the watchdog as soon as possible and show them how their information is incorrect.

6.         Not only will contemporaneous acknowledgements satisfy Internal Revenue Code obligations but they will also put the organization back in front of the donors.  Thank you notes should be used as marketing tools in which the organization describes what is new and exciting within the organization.

There are just a few ideas that may help your organization in maximizing donations. If you have any questions and need help in getting ready for the donating season, contact Barry N. Chait, Esquire at 617-598-5314.

If you would like to discuss this subject further, please contact Barry N. Chait, Esq. (bchait@pmn.com) or any member of our not-fot-profit group at (617) 426-9440.

Note: This article represents a general overview of or opinion on certain tax issues or developments and should not be relied upon without an independent, professional analysis of how any of these provisions may apply to a specific situation.  We recommend you consult your professional tax advisor before taking any action based on anything in this article.

IRS CIRCULAR 230 NOTICE:  In compliance with U.S. Treasury Circular 230 Regulations and any applicable state laws, we hereby notify you that any tax advice contained in the body of this document, or attachments thereto, was not intended or written to be used, and cannot be used, by the recipient or any other party for the purpose of  (1) avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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