By Mary Harris, CFP®
COVID-19 has financially impacted the nonprofit sector, and many do not know if they will survive the crisis. Charities Aid Foundation of America surveyed nearly 550 nonprofits in 93 countries in March 2020, and 96.5 percent of respondents reported negative impacts related to the virus.
Thankfully, many people are wanting to give back to charities during this time. A Fidelity Charitable study found that most donors plan to maintain (54 percent) or increase (25 percent) the amount they donate to charity in 2020. The study found that donors are most concerned about health and human services-related nonprofits right now, but concern is still high for all nonprofits, such as religious, environmental, or arts-related organizations.
August 17 is National Nonprofit Day, and the day is taking on a new meaning this year due to the pandemic. If you want to give back in a meaningful way to nonprofits, here are a few ways you can help:
Ways You Can Support Nonprofits
- Set up a recurring donation. Recurring donors are over five times more valuable than one-time donors. Consider becoming a monthly donor for a cause you care about.
- Set up a donor-advised fund (DAF) for future donations. What is a donor-advised fund? A donor-advised fund, or DAF, is a charitable giving vehicle. It allows donors to make a charitable contribution, receive an immediate tax deduction, and then recommend grants to qualified charities from the fund over time. A donor-advised fund functions like a foundation, though it is managed through a public charity or a community foundation. Reach out to the Harris Financial Advisor team to learn more about setting up a donor-advised fund.
- Take note of tax breaks for charitable giving. With the passing of the CARES Act, donors can enjoy recently added tax benefits when they support nonprofits. Contact our team to learn more about what the CARES Act means for your charitable giving strategy.
- Share a campaign on social media to encourage supplies or monetary donations. With in-person events canceled, nonprofits must get creative with their fundraising strategies. Share your nonprofits’ campaigns on Facebook, Twitter, Instagram, or LinkedIn to raise money and supplies.
- Join a nonprofit board. Volunteer your time and talents by joining a nonprofit board. You will be giving back while developing professional skills and cultivating new relationships.
- Attend a virtual fundraising event. Examples of virtual fundraising events include Facebook Watch parties, online gift card auctions, virtual open houses, online contests, virtual classes, livestreamed concerts, and virtual runs, walks, or bike rides. There is a variety of software options for nonprofit virtual events. For livestreaming, you can use Zoom, Facebook Live, or YouTube Live. For auctions and mobile bidding, consider using Bidding for Good, OneCause, or Silent Auction Pro. For races and walks, try RunSignup, Racery, or Charity Footprints. And for peer-to-peer and online fundraising, try out CauseVox, Classy, Qgiv, or Snowball.
- Support a specific family through a nonprofit. Donate to a specific family in need during this crisis. Get your children involved. This will have a lifelong impact on youngsters as they see and learn firsthand the importance of helping others in need.
- Crowdfunding. This is the practice of funding a project or venture by raising many small amounts of money from many people, typically via the Internet. Some crowdfunding sites for nonprofits include GoFundMe, Mightycause, Network for Good, Causes, CrowdRise, Rally, and Fundly.
Give Back in Meaningful Ways with Help from Harris Financial Advisors
Harris Financial Advisors has decades of experience helping clients define their values and develop their charitable giving strategy. If you’re interested in giving back during this time, reach out to our team today for advice on available strategies for charitable giving and the associated tax benefits.