Tuesday, May 10, 2016

Charity, Donating, and Social Media

Charity, Donating, and Social Media
Julianne Shenk
JBS Nonprofit Consulting
May 10, 2016

In the “olden days” (you know, the 70’s, 80’s and 90’s) your daily mail was probably inundated with charity solicitations. Granted, there are still a few agencies that employ the “mailer” method, but admittedly, my mailbox is a lot lighter in that department now.  Although I will admit, the address labels do come in pretty handy.

Mailers and cold calls were very popular. With the advent of caller ID, it makes it a little easier to see who is calling and a lot easier to dodge the call. Some agencies have gotten smart and use fake caller ID names to prompt you to answer, but with so few people using land line phones as their main telephonic source, a large number of charitable agencies have taken their campaign to social media; specifically, Facebook.

I was recently asked if I support charities through Facebook, if I endorse charities through Facebook, and if I have ever been prompted to or have donated through Facebook. The answer to all of those questions: Yes. So many people are using Facebook now. In fact the demographics have significantly shifted and young teens and twenty-somethings are not the main users. It is our “older generation”, and sadly, for social media survey purposes, that is 30s and up. (A tear slid down my cheek).

I am sure you are familiar with the term, “social media”. Facebook, Twitter, Vine, Periscope, etc. are all forms of social media. Most of you are reading this blog via Facebook or a link from Twitter. (Thank you by the way, share with your friends!) Social media is a powerful concept. Perfect example: The Ice Bucket Challenge of 2014. Everywhere you looked there were friends, family, neighbors, sports figures and celebrities posting videos of them partaking in the IBC and then challenging others to do the same. What started out on social media, soon became clips on news shows, morning talk shows and entertainment recap shows. Everyone knew about it. Everyone knew that it was benefitting ALS. To put it in perspective, according to data from SurveyMonkey[1], 66.8% of those polled felt that social media was “extremely effective” or “very effective” for disseminating information about initiatives doing social good. [2]  In the same survey, 56.9% of respondents said that they follow or “like” nonprofits on Facebook. [3] 

Here is some homework for you to try: think of your favorite agency that you support and “Google”[4] it. Type in the agency’s name along with the word “Facebook”. An overwhelming amount of the time it will bring up the organization’s Facebook page in the top 3 results. You can also go directly to the agency’s webpage and look for their Facebook link. Trust me, it will be there. If you are active on Facebook, “like” their Facebook page and you will actively get updates and be able to follow along with all of their activities. “Share” the page and any exciting updates with your Facebook friends. Spread the word. Another SurveyMonkey survey found that out of more than 1000 adults (aged 18 and older) who identify themselves as regular social media users, 51% of respondents reported that they hear about new initiatives for social good via social media first. [5] This specific survey also found that 64% of users that identified themselves as a social media user (Facebook, Twitter, LinkedIn, Pinterest, and Google+) donated $100 or more to charitable causes in the last year. [6]

A study in March 2013 by Georgetown University Center for Social Impact released a study on “Digital Persuasion”. Digital persuasion is how social media is being used to influence perceptions, actions, and support for causes.[7] The study determined that that in previous years, face-to-face communication was the primary mode of information exchange about causes. The survey respondents named social media as their top source for information about causes that they support. [8]
The study also found that 55% of digitally active Americans did more than just “like” a cause. Engaging with the causes via social media prompted them to:

·      Donate money 68%
·      Volunteer 53%
·      Donate personal items or food 52%
·      Attend or participate in an event 43%[9]

According to the Georgetown survey, 82% agree that social media is very effective in getting more people to talk about the causes and issues.[10]

So there you have it. Follow your favorite charity. Share their information via your favorite social media outlet and most importantly, take advantage of any volunteer opportunities they post about or donation drives they are having. Even if you cannot participate, by you sharing the information, it will reach the eyes, hearts, and pocketbooks of those that can!




[1] SurveyMonkey.com
[2] http://mashable.com/2014/09/19. Retrieved 1 May 2016. Author: Connor Finnegan.
[3] Ibid.
[4] Google being used as a generic term. Use your preferred search tool (Google, Chrome, Firefox, Internet Explorer, Safari, etc.)
[5] http://mashable.com/2014/09/19. Retrieved on 1 May 2016. Author: Ryan Lytle.
[6] Ibid.
[7] 9 Ways to Use Social Media to Support Your Causes and Charities. 2013. McKhann, Emily. April 12, 2013. http://themotherhood.com/blog. Retrieved on 1 May 2016.
[8] Ibid.
[9] Ibid.
[10] Ibid.

Friday, April 22, 2016

FAQ

FAQ
Julianne Shenk
JBS Nonprofit Consulting
April 22, 2016

April, as you can imagine, is a busy month…and totally got away from me in the “you need to write your monthly blog” department.  One of the things that made me so busy was answering questions.  Then it hit me: You got your blog topic!  I compiled a list of the most asked questions that I received this year.

And…don’t think I only answer questions in April! Ask me year round!

Q: I wrote a check to Charity XYZ on the 1st of January this year. It was intended for December 2015, but I just got too busy and sent it late. Can I claim it on 2015 taxes?
A: No. Your check was dated 1 January 2016, it can be claimed on your 2016 taxes. Intent does not trump legalities and tax code.

Q: How do I choose which nonprofit to support/donate to?
A: Evaluate what interests you. Are you looking to support a specific cause or condition/disease in need of funding? Narrow down what is important to you. You are giving your hard earned money to a group that you should feel a connection to.

Q: How do I know if a charity is legitimate?
A: Research. Research. Research. I can do this for you. It is what I get paid to do. But, you can do it too. Visit the website. Poke around, follow the links, and ask questions. Also, any reputable nonprofit exercises transparency and can provide you with their financial data. Yes, some organizations make it a little difficult to get this information, but again, I can help you with that. It should be researchable to everyone, but if it is not, contact them and ask. If they are less than forthcoming with your request, I think it best to move on to another organization.

Q: I am not in a position financially to donate money at this time, is volunteering considered donating? Does my time count?
A: Yes. If you read some of my other posts, many espouse my belief that volunteering is the backbone, the heart and soul, the lifeblood, of a nonprofit organization.  Giving of your time is as important, if not MORE, important, than giving money. If your desire is to help a cause, but you are not in the financial situation to do so, please consider donating your time. Be hands on, it is one of the most rewarding acts you can perform. It will also allow you to become involved and educated in a cause that is important to you.

Q: How do I know where my money is going?
A: You can indicate intent for your donation to be spent in a particular way. This is called a “restricted gift”. To donate in this manner, establish (in partnership with the organization) where you would like to direct the funds to guarantee that it is possible for the funds to be directed in the manner you wish. In grad school I had a case study regarding restricted gifts. A family designated a large donation be given to a local animal shelter, but restricted the breed of animal that the funds could be used to help. The patriarch of the family had an affinity for a particular breed of dog. They were insistent that funds only be used to save, place, and maintain this specific breed. The shelter’s hands were tied, as the breed mentioned in the restricted gift letter was rare and literally never seen at the shelter. The gift sat for years before a family member finally relented and changed the restrictions to cover all breeds. Be sure that your gift, if restricted, is not so restricting as to prohibit use.
The most useful donation is an “unrestricted donation”. This allows the agency to allocate the funds to the area in most need.  Do not hesitate to reach out to the nonprofit before making a donation to ask how you can direct your donation to make the most impact. They are more than happy to advise you.

Q: I want a tax number; can I get one by forming a nonprofit?
A:  No. This is my single biggest pet peeve regarding the nonprofit industry. I often find (75% of my personal experience, that is a high number!) folks are looking to get a tax number to avoid paying sales tax. A nonprofit is formed to serve a need in the community that receives a tax relief to better aid them to help/promote/execute/support their cause. If your coffee group wants to purchase coats to handout to the homeless/underprivileged in the winter, you cannot get a tax number to save on sales tax. If you are a registered 501 (c) (3) that is purchasing coats to hand out, you can apply for a tax number (one time filing and free).  You cannot get a tax number to buy goods to donate to a food pantry. The food pantry can get a tax number to purchase staples to supply its coffers. If you are legal and registered AND approved by the IRS as a recognized 501 (c) (3), you are required to get a tax number. That is the only way.

Q: What is the difference between a nonprofit organization and a not-for-profit organization?
A: There is no legal distinction. The terms are used interchangeably.

Q: I recently learned that a charity that I contributed to in years past has shuttered. Do the people on the board get to keep the monies collected?
A: No. Most nonprofits “go out of business” when their funding dries up. If there happen to be funds left, the IRS has very specific rules as to where the assets/funds go:
           
Assets of an organization must be permanently DEDICATED to an exempt purpose. This means that should an organization dissolve, its assets must be DISTRIBUTED for an exempt purpose described in this chapter, or to the federal government or to a state or local government for a public purpose. If the assets could be distributed to members or private individuals or for any other purpose, the organizational test [for exempt status] is not met.[1]
The assets must go to another nonprofit organization or exempt organization type.

Q: Who should I contact if I have concerns about the integrity or practices of a particular nonprofit organization?
A: At the state level, contact your state’s charity/nonprofit office. This is typically a branch of the Office of the Attorney General or the Secretary of State. (You can find your local contact via http://www.nasconet.org).  At the federal level, contact the IRS (http://www.irs.gov).

Those are the most asked questions I get. If you have any other questions or need some elaboration on a particular question from above, just ask!

Tuesday, March 8, 2016

Does Giving to Charity Make You...

Does Giving to Charity Make You…
Julianne Shenk
JBS Nonprofit Consulting
March 8, 2016

…those are the six words that I typed into Google. I was happily surprised at the list of potential searches:

Does giving to charity make you…

…happier
…happy
…rich
…live longer
…healthier[1]

Rich? It is no secret that I am a “glass half empty” kind of girl, but when I saw the word “RICH” I didn’t think money. I thought, “LIFE”. Giving to charity makes your life rich. So, right there, my whole attitude for the day changed from pessimistic to optimistic. Plus, giving to charity has made my life richer.  (PS…also…odd choice of profession for someone that doesn’t feel that way, am I right?)

[Full disclosure: When I typed those six words into the search bar, I one hundred percent expected the first search result to be tax related. Does giving to charity help me on my taxes? Does giving to charity give me a bigger/better tax deduction?]

[More disclosure…a lot of the messages I get through the blog, website, Facebook and Twitter are to ask me to help start a charity to help get a tax break. I immediately shut those requests down. That is not what charity is or means. That is why I was cynical about the results I would come across when I searched those six words.]

One clarification that I want to make is, giving to charity doesn’t just mean sending money. The “giving” part encompasses so much more. Giving can be monetary (of course), volunteering, supporting, promoting, fundraising…it is a long list. Myself, I think volunteering is the most rewarding, but everyone feels the satisfaction of “giving” different. No one’s method is better or worse than another’s.  

Giving makes you happy. Another search of the Internet will provide you with a plethora of studies relating good health and happiness to charitable giving. A study done in 2009 by members of the Harvard Business School and The University of British Columbia confirmed their hypothesis regarding charitable giving and happiness. [2]  Participants were asked to recall an earlier time (s) when they spent money on others. Researchers were able to observe that the recollections led to an increase in happiness.[3]

Remember when I said that giving money isn’t the only way to give to a charity? Volunteering is giving, too. Again, my personal favorite way of giving. And, by chance, volunteering is also linked to beneficial results.

There is extensive literature that links giving and generosity to better health results, specifically that giving to others reduces the stress and strengthens the immune system, which results in better health as well as a longer life expectancy.[4] In this study, Bariş Yörük goes into great detail about tax subsidies and the effect on good health…but the conclusion is more basic. Giving is good for you and good for your health.

To put into perspective how much research there is on the topic, I have included a sampling of snippets from articles I came across while researching for this blog.

“People who donate money to charity are happier in poor and rich countries alike. You don’t have to have a lot to experience the emotional benefits of giving.”- Elizabeth Dunn[5]
           
“When you are kind to another person, your brain’s pleasure and reward centers light up, as if you were the recipient of the good deed-not the giver, according to research from Emory University.” [6]

Jason Marsh and Jill Suttie composed a list of some of the ways that giving is good for you:
           
1.     Giving makes us happy
2.     Giving is good for our health.
3.     Giving promotes cooperation and social connection.
4.     Giving evokes gratitude.
5.     Giving is contagious.[7]

I encourage you to take a look at this article. It is a great read! Each of the five categories is broken down for you. (See link in footnotes).


My conclusion? Give. Give money, give time, give support. Give. If that isn’t enough to convince you…I will shamelessly list several of my favorite quotes about giving and happiness.

·      It’s not how much we give, but how much we have put into giving. (Mother Teresa)

·      Happiness…consists in giving and in serving others. (Henry Drummond)

·      We make a living by what we get. We make a life by what we give.  (Winston Churchill)

·      Remember that happiest people are not those getting more, but those giving more. (H. Jackson Brown, Jr.)

·       For it is in giving that we receive. (St. Francis of Assisi)

·       Love only grows by sharing. You can only have more for yourself by giving it away to others. (Brian Tracy)

·       Generosity is giving more than you can, and pride is taking less than you need. (Khalil Gibran)

·       No one has ever become poor by giving. (Anne Frank)




[1] Google search of the phrase, “Does giving to charity make you…” March 1, 2016.
[2] Akin, Lara B., Anik, L., Dunn, Elizabeth W., Norton, Michael I. (2009). Feeling Good About Giving: The Benefitd (and Costs) of Self-Interested Charitable Behavior. (Working Paper 10-012). Harvard Business School. Retrieved from http://www.hbs.edu/faculty/Publication%20Files/10-012.pdf
[3] Ibid, 12.
[4] Yörük, Bariş K. (2013). Does Giving to Charity Lead to Better Health? Evidence from Tax Subsidies for Charitable Giving. (Working Paper/
Abstract). University of Albany, SUNY. Retrieved from www.albany.edu/economics/research/workingp/2013/yoruk.pdf
[5] D’urso, Joseph. (2015). Giving to Charity Makes you Happy. www.reuters.com
[6] Cassity, Jessica. The Science of Giving:Why One Act of Kindness is Usually Followed by Another. www.happify.com
[7] Marsh, Jason. and Suttie, Jill. (2010). 5 Ways Giving is Good for You.  http://greatergood.berkeley.edy/article/item/5_ways_giving_is_good_for_you