While fundraising is the primary focus for nonprofits at this time of year, there are other important steps nonprofits can take to build a strong foundation for financial stability, growth, and support for the wonderful work they do throughout the region.

For insights into specific activities and strategies that benefit nonprofits as the year winds down, we spoke with Ann Zawartkay, CPA, CGMA, President of Non-Profit Accounting Solutions, LLC in Robbinsville, and Sandra Toussaint, MPA, President and CEO of the United Way of Greater Mercer County and Chair of the Princeton Mercer Regional Chamber’s Business-Nonprofit Partnership Committee.

Fundraising: Beyond Giving Tuesday

There are two end-of-year fundraising statistics that are widely known in the nonprofit community. Approximately 17-31 percent of all annual revenue is raised in December, while 10 percent is typically raised during the last three days of the year!

“Many donors, especially individuals and family foundations, tend to give in December as part of their end-of-year tax planning,” Ann said. “Just don’t wait until Giving Tuesday to send out your appeal letters because you may miss out. Start your email blasts, social media posts, and mailers now if you haven’t already. Announce your goals, send reminders, and provide updates as you reach certain milestones.”

Did you know Baby Boomers (born 1946-1964) and the Silent Generation (born 1925-1945) are responsible for 59 percent of total charitable giving? There are tax benefits to donating a portion of required distributions from retirement plans for these donors. Estate planning and retirement planning factor into these decisions, so consider asking donors to check with their financial and tax advisors to discuss the potential benefits.

Also, if a donor commits to a large donation, consider asking the donor for permission to use it as a matching gift with a deadline at or near the end of the year. This would add a valuable incentive and create a sense of urgency in your fundraising marketing strategy.

Giving Tuesday is an important date on the calendar of nonprofits, but did you know only 4 percent of nonprofits’ online revenue was raised on that date in 2023? Fundraising activities should continue through the end of December and prioritize strengthening donor relationships.

“Giving Tuesday is great if you’re part of an organization that has been able to break through the noise, but only a small percentage of nonprofits have been able to do that,” Sandra said. “There are still plenty of opportunities to raise money through donor stewardship. Make phone calls, send personal letters, and schedule in-person meetings to thank donors and share stories of impact. The best way to secure annual donations and larger gifts is by building stronger relationships.”

Budgeting and Planning

While fundraising is the top priority at the end of the year, nonprofits that work from a calendar year rather than fiscal year should review their budget, making sure their revenue and expense projections are still accurate.

“A common thread among many organizations with serious challenges is that they don’t have a realistic budget,” Ann said. “They simply use the previous year’s budget, which doesn’t always work out. Are you planning to add programs and staff? Have donors cut back due to inflation? If you ran a deficit or surplus, do you know why? Taking a hard look at your budget every year can help you avoid financial difficulty.”

In addition to your budget, touch base with your team of advisors – your accountant, legal counsel, marketing consultant, insurance representative, and banker. Pull your financials together, organize your files, review your agreements and subscriptions, and make sure they reflect your current needs.

For example, are you still paying for multiple land lines? Are you paying fees for software that you no longer use? You may find savings in unexpected places!

Breathe, Reflect, and Think Big!

The end of the year is the perfect time to slow down and reflect on what you’ve accomplished, what you plan to achieve in the coming year, and the past and future impact of these efforts. Don’t be afraid to be innovative and think big!

“Sometimes you need to get out of the weeds and move into a space that allows you to explore big ideas,” Sandra said. “I always suggest asking, ‘If someone donates $1 million, what would you do with it?’ Think about how you can make a bigger difference. Having a bold vision with solid goals and innovative strategies to get there can help you go farther than you ever expected.”

Engage with Chamber Members

The Princeton Mercer Regional Chamber offers multiple programs and events that serve the nonprofit community. For example:

• The Central NJ Nonprofit Council brings together leaders in business, the arts, culture, and educational institutions to facilitate collaboration that contributes to mutual success.
• The Princeton Regional Chamber Foundation, a 501(c)3 nonprofit organization, focuses on the critical civic, educational, scientific, cultural, and economic development interests in our region while supporting educational and professional development programs.
• Funded by the Chamber Foundation, the Community Development Fund is an endowed fund dedicated to supporting not-for-profit organizations located in the Chamber’s five-county footprint.

“As nonprofits, we need to move beyond the charity mindset,” Sandra said. “At the end of the day, we operate like businesses. Businesses need certain skillsets, expertise, and talents to succeed, and the Chamber is a great conduit for bringing them together. The name of the committee I’m involved with, Nonprofit-Business Partnership, spells out exactly what we’re trying to do. There are always local businesses and large corporations looking to team up with nonprofits through sponsorships and volunteering.”

Of course, every single program and event is an opportunity for nonprofits to connect with their peers, find the resources they need, expand their network, and increase visibility for their mission. The more engaged our members are, the more value they see from their membership.

“Leverage your membership,” Ann said. “Go to events, read the emails, and follow the social media pages. This is how you connect with accountants, law firms, banking resources, and potential board members, volunteers, and donors. Whether you attend networking events, join a committee, or search the member directory, there are so many resources available through the Chamber!”

To learn more about nonprofit membership and resources for nonprofits through the Princeton Mercer Regional Chamber, please contact us today!