Giving Charities a Helping Hand

The report recently released by NZInitiative, is something anyone in the charity sector or supportive of charities should take the time to read.

“Charities play an important role in our society, delivering a range of social services to numerous communities and causes. Their good work is recognised by the government, which confers a range of privileges to them, such as an income tax exemption, and the state also provides a significant portion of the sector’s funding.

“These are significant privileges, which is why it is important that only groups with a genuine charitable purpose be entitled to receive them.

“Yet as Giving Charities a Helping Hand argues, the regulations governing the sector have set the test of charitable purpose so high that many small groups cannot attain, or struggle to maintain, registered charity status. At the same time, commercial firms owned by charities are allowed to retain profits without paying tax on these funds. Indeed, there is little oversight over how these funds are used, and the current regulations create the potential for unfair completion in the market.

“This report puts forward three policy proposals to remedy this situation, namely to:

  • re-examine the centuries-old definition of charitable purpose,
  • restore much needed procedural fairness to the legislation, and
  • Tax all for-profit firms equally, but make all donations to charity tax deductible.

These reforms are aimed at helping the sector, with the benefits accruing to charities, and ultimately the communities and causes they serve.”

Click to read more

Click to download the report

It’s not Horses for Courses

Donor communications, is it horses for courses? Does the same message, the same language work for all donors?

I’ve talked about donor communication before, but I’m still seeing and hearing from people about the quality, content and language being used in donor communications.

If you haven’t previously seen some of what I’ve said, here’s a few links that may be of interest:

Supporter Communications
Who’s Centre of Attention – You or Your Donor

Often regular donors only want to know that what they are doing is making a difference, whereas business donors want to see their return on investment; it’s much the same, but businesses may use more “business speak” to justify support.

General donors are typically happy to know they are making a difference, so talking to them about the successes they have helped you achieve may suffice. Businesses on the other hand may want to see this as investment versus return.

Do you split the information you share, are you using the same “speak” for each, what is the reaction?

Are you even monitoring and adapting based on the feedback from those receiving your updates?

If you are monitoring and adapting, if not, why not?

Business Support

It’s estimated that business donations account for six percent of the donations some non-profits receive.

If this is the case then the question must be asked “how much time and energy is being used to reach and nurture this group?”

Is the time you’re putting into gaining business support being used wisely?

If residential – general support if the main income source for non-profits, wouldn’t it pay to spend more time gaining and nurturing this sector?

There are non-profits who are spending at least one third of their time concentrating on gaining business support, time they would be better off spending maintaining and growing the other support they already have.

If a stationary store knew that they were spending too much time growing one section of their product range, with little or no tangible result; they would stop and instead grow the area/s that they know they are making a profit from.

Non-profits should be doing the same.

When was the last time you reviewed where your support was coming from and what adjustments did you make in your focus in maintaining and gaining support?

I’d be keen to hear your views on this … leave a comment below.