Nonprofits and volunteers can create new opportunities together in difficult times

I read an excellent blog post today at the Ontario Nonprofit Network. The post was written by Cathy Taylor, Executive Director of the Volunteer Centre of Guelph/Wellington.  The post was called, “Are we ready? The volunteer sector and volunteers in this economic downturn”. More and more people are interested in volunteerism as a way to gain experience, expand networks and explore new career directions, and Cathy urged nonprofits to capitalize on these exciting new prospects.

Cathy wrote:

The rising unemployment rate, the desire to create new opportunities for oneself, and to survive this economic crunch means that there is a huge new potential audience of volunteers for us to recruit… There is no better time than now to jump out of our box(es) and create meaningful volunteer opportunities for those seeking work, those who are under-employed, those who are new to our communities. By doing so, by creating meaningful (twice for emphasis - not just envelope stuffing!) one time or episodic opportunities (that often go against the grain of our formalized volunteer program structure which lends itself nicely to the Monday afternoon volunteer that answers the phone each week), we will be capturing the minds, hearts and enthusiasm of a new generation of volunteers. And yes, we will also earn their long term volunteer commitment and even their financial contributions as they become ambassadors for our organizations. 

Amen! I love this forward-thinking approach and had to share it with my  readers.  The needs and expectations of supporters of nonprofits - donors and volunteers alike - are changing,  and by extension, nonprofits must, must, adapt to these changing demands if they are to survive. Adaptation means, among other things, taking the time to engage volunteers in meaningful projects, working with them one-on-one to co-develop intellectually stimulating projects that may require some initial up-front investment, but over time will lead to profound volunteer contributions and ultimately minimize supervisory demand.  I have watched many nonprofits struggle in this area but I believe that those who invest the time to learn how to do it successfully will be the ones to attract and reatain a higher caliber of volunteers.  And with “venture-philanthropy” gaining in popularity, amongst the ever-increasing demand for accountability, I think we can expect to see more talented volunteers request this kind of involvement.

So, what does this have to do with frugality?  For one thing, I thought these ideas may spark some interest among those of you who are currently seeking new opportunities.  Volunteerism does not necessarily mean you’ll be stuffing envelopes or answering phones.  If you want to volunteer in order to build skills and experience, here is something to consider:

People working in nonprofits love, love it if you can bring forward an idea for a personal project, rather than requesting the volunteer coordinator to create a job for you.  This may take some thought and/or some research on your part. But it’s not that hard. Simply consider your unique skills, experience and passion and offer them to the organization.  It may require a little collaboration, but bringing ideas forward will help you find a position that is mutually satisfying.  In the end, you will build your resume in an upward direction and you will have the chance to leave a lasting imprint on the organization.

Secondly, I thought Cathy’s visionary comments could apply to all of us, even those outside of the nonprofit sector.  What other opportunities could this recession present you with?  Are there new opportunities to grow personally or professionally even within this challenging context?

As Cathy surmised,

We have a unique opportunity at this juncture. We can engage a new constituency, who may have different motivations for volunteering and we can embrace their insight and creativity. We can be mindful of how the “glass half empty” syndrome affects our planning and how the competitive framework we might all feel we are in might actually turn away prospective volunteers.

“Unique opportunity.” “Embrace insight and creativity”.  These are the kinds of words I like to read.  Cathy points out that a pessimistic, narrow-minded perspective can actually shut-down potential volunteers.  Most certainly it is the same for the rest of us. No doubt that those of us who come out ahead will be those who can think creatively, to find opportunities beyond the barriers.  In fact, you can expect those with vision to do better than ever.

Give monthly & save

Now that the holiday season has passed, it’s easy to forget about others and focus on our own troubles.  But with the economic recession in full swing, it’s important that we make charitable giving a priority.

A great way to do this is by making monthly donations instead of giving a lump sum at year end.  Giving this way has multiple benefits for you and the organization.  

Here are the top six reasons to give monthly donations.

1. It helps the charity to budget.  Imagine you are drafting your own budget: would it be easier to have a monthly salary, or simply hope for a bonus in December?

2. It is easier for most of us to part with $10 or $20 every month than give a lump sum of $120 or $240 at one time. 

3. If you don’t give monthly, it’s easy to forget to do it completely. If you don’t give monthly but have a philanthropic goal in mind, you will need to put the month away in a savings account each month or simply cross your fingers and hope you will have something left over.  The reality is, you might dip in to those savings or simply forget to give.  Monthly giving will ensure you will reach your charitable goals.

4. You can easily set-up automatic payments so that you don’t need to think about it.

5. You can cancel any time, so if you just can’t afford to give anymore, a quick email is all it takes.

And my personal favourite…

6. Pay less tax throughout the year! On Gail Vaz-Oxlade’s post, “Tax refunds are not your friends” she explains that by filling out a government form (Form T1213) and giving it to your employer, you can reduce the amount of income tax off your paycheque every month, instead of waiting all year for your refund.  Squawkfox gives step-by-step instructions on how to use this form (it’s easy) and also shows just how fast those savings add up when you throw compound interest into the mix. So put those savings in a high yield interest account or add it to your TFSA and you’ll be earning interest on that refund all year round. 

Do you give to charity monthly? Why or why not?

Giving back wisely

With the holidays upon us and tax-season looming, you’re probably considering which charities will top your yearly donation list. 

I have posted before about cashless alternatives to philanthropy. (I love those kitten blankets!) But unrestricted cash donations are also mutually beneficial gifts; cash is desperately needed by nonprofit organizations, because it allows those who run the organization to direct the funds where they are most needed. 

There are some terrific vehicles out there for giving beyond straight donations.  Here are the most popular:

Stocks/securities: You can transfer stocks or securities to the organization.  Thanks to changes to tax laws in 2006, the charity pays ZERO capital gains and you get a tax-receipt for the full-amount of the gift!  

Residual bequests: A residual bequest is another excellent option for those who are living on a fixed income or tight budget. Even if you do not have much cash, you may have assets which have some value, such as your home. Through a residual bequest, (a percentage in your will) you can guarantee that you will look after your loved ones AND make a difference.  For example, you can request that the remaining 10% of funds in your will, after your family has been given their share, be distributed to your favourite charity.  You’re simultaneously alleviating some of the tax burden on your loved ones by reducing or even eliminating the capital gains they will have to pay.

Charitable giving helps you to reduce the tax you pay at the end of the year, but that’s not usually why most people give.  Instead, making a donation is about feeling good about giving back, knowing that you’re making a difference in the world and contributing to a better future.  It’s an investment in a better world. 

Most donors are concerned about administrative and fundraising costs.  And when you’re on a tight budget, with little to spare, you want to make sure that your money is going to the right place. Here are some questions to ask when comparing charities:

1. “Can I see your financial pie?” - ask to see how the funds are distributed but don’t stop there - many charities hide administrative and fundraising costs under misleading categories.

2. “What are all the costs included under each section of this pie?” In particular, “which staff salaries are listed under administration and fundraising and which are not?” At the very least, the Executive Director and staff directly involved in fundraising will be named as a fundraising cost.  Others, like those in communications, may not be. 

3.“What activities does the organization included under fundraising?” Make sure your values align with their spending.

“What is the return on your investment on each of your fundraising expenses (like direct mail and special events) and what portion of your fundraising budget is spent on each of these activities?” - This will show you what portion of your funds are spent on heavy income generating activities and what portion are spent on less fruitful ones.  This will help you identify their efficiency.  

Note: A good charity should not have admin/fundraising costs higher than around 35%.  

These questions are not to intimidate you or to suggest that most charities are mismanaged, rather it is to empower you to seek out and reach out to those nonprofits you really trust.  By investing in a charity you truly believe in, you will end up with more than a tax-receipt - you will have faith that your money is truly making a difference.

Savings from Second Harvest

I didn’t get any coupons in the mail last week but I did get one tasty treat: two Starbucks gift cards for $5 each (one for me and one for my partner,) just for filling out a survey for Second Harvest.

Unfortunately the survey is now finished.  However, Second Harvest has a few other opportunities on the horizon.  The first 100 schools or companies that register for Lunch Money Day on February 26, 2009 (a fundraiser encouraging people to give the amount of money they would normally have spent on lunch) will receive a $25 Starbucks gift card.

Plus, save $3 on the Gourmet Food & Wine Expo!  Experience the world of gourmet food and wine at the MTCC, November 20 to 23. Click here to purchase your tickets and quote promotion code TASTE to get $3 off admission.  As the Expo’s charitable partner, Second Harvest will receive $1 for each tasting glass returned at the show’s exit, plus all proceeds from wine bottle redemptions.

Second Harvest is a great organization - for example, did you know that $5 provides up to 10 meals for people who would otherwise go hungry in Toronto?  Or that they provide enough fresh food for about 15,000 nutritious meals each day?  I think they are an excellent organization.  They have low admin/fundraising costs, and best of all, they are champions of two causes at once: they help the environment by reducing waste, and they feed hungry people.  If you are considering your Christmas donation list, I would encourage you to consider their cause.  (And no, I do not work for them, I just think they’re doing very important work!) To learn more, head to SecondHarvest.ca.