End of Year Planning Starts Now for Nonprofits

October, November, and December are the busiest months for nonprofits. I could never take time off in December because, up until the 31st, the focus was on getting dollars in. People contribute to nonprofits year-round, but towards the end of the year, generosity truly flows. Many people are on monthly giving plans (if you are not offering donors this option, update your website ASAP), but at the end of the year, people generally know:

1. What their bonus will be (and if they get one)

2. How their portfolio performed that year

3. How much they will owe in taxes

With this information, donors will know how much money they can afford to donate. Often, their advisor will suggest making a donation of X dollars for a charitable tax deduction. That is why it’s so important to have a dynamic plan for end-of-year giving. Here are a few suggestions for your end-of-year communications:

• Ask for Gifts of Stock

• Ask for an Increase

• Ask for a gift from a Donor Advised Fund

• Ask for an IRA Charitable Rollover Gift

I preach this to clients and prospects because these gifts can significantly boost your annual campaign.

Gifts of Appreciated Stock held for over a year, have a tremendous impact on nonprofits and donors. Most individuals' stock portfolios are much larger than their checking accounts. Donors can also receive tax benefits for donating appreciated stock. If you do not have a process for accepting stock, make it a priority! Ensure a simple process and communicate it clearly. I suggest creating a form on your website where donors can provide details such as the stock name, amount, and gifting date. Generally, share the following information with donors:

1. Your Legal Name

2. EIN

3. Brokerage Name

4. Account Number

5. DTC Number

Providing clear instructions and making the process as seamless as possible encourages more stock donations, which can result in larger contributions due to the value of appreciated assets.

Ask for an Increase if you want to raise more money than last year.  A simple way to achieve this is by asking for an increase. Knowing your donors is essential—if you know they had a rough year, an increase request may not be appropriate. For all other donors, ask for additional contributions. This can be an increase of $50 or $100, or you can raise the levels you list. Personalized asks can make a significant difference; for instance, referencing a donor's past contributions and suggesting an increase can make the request more compelling.

Donor Advised Funds (DAFs) are charitable giving accounts that offer tax benefits, earn interest, and allow donors to support numerous charities. In 2023, there were over $229 billion in DAFs, and this number is only growing. Ask your donors if they have DAFs and encourage them to contribute to your organization through their fund. Highlight the ease and flexibility of DAFs in your communications and make sure you have an option near your “Donate” button with a way to contribute through a DAF.

IRA Charitable Rollover gifts allow individuals aged 70.5 or older to donate up to $105,000 this year from their IRA to a charity. For those 73 or older, gifts to charities also count towards their required minimum distribution (RMD). This is a common way older adults give to charities, offering significant benefits to both the donor and the nonprofit. Emphasize the tax advantages and the opportunity to fulfill RMD requirements through charitable contributions.

Bonus Tips

Highlight Success Stories: Sharing testimonials and success stories from previous end-of-year campaigns can inspire potential donors. For example, detailing how stock donations or IRA rollovers funded specific projects or helped achieve organizational goals can illustrate the impact of these gifts. Make sure you have a picture of the person and their family if they are open to it.

Engage Your Board and Volunteers: Leverage your board members and volunteers to reach out to their networks. Peer-to-peer fundraising can be highly effective, as personal appeals from trusted sources often result in higher engagement and contributions.

Leverage Matching Gifts: Encourage donors to check if their employers offer matching gift programs. Matching gifts can double or even triple the impact of individual contributions. When thanking donors for their gift, provide clear instructions on how to submit matching gift requests to their employers.

This article is for informational purposes only and is not meant to substitute for legal and financial advice. Charities should work with professional advisors to ensure any advice they dispense is accurate as laws do change. If you have an end of year tip, please share it below!