Donors want to know how money is spent by nonprofits

December 27, 2013

Donors want to know how money is spent by nonprofits

When it comes to giving, Americans have their concerns about where the money is going and how it's being used. According to a study by global research company YouGov, inflated salaries and administrative expenses are the main deterrent to making a donation.

Of the nearly 1,200 adults surveyed, 50 percent said they were put off when they didn't know exactly how the money was being spent, and 45 percent were worried that the charity was associated with a political party or religion. However, 49 percent had still given to a charity in the last 12 months.

Improve fundraising by helping donors understand the organization's needs
While the inflated salaries of nonprofit execs have been a topic of news stories on occasion, funds are needed for administrative costs. Especially during times such as a natural disaster, donors want to see their money in action. When possible, it's important to explain that all funds are used for the organization's mission, even if they seem indirect.

Depending on the group, donor hesitation can vary greatly. Donors that give to most small, local nonprofits will probably not require the same transparency as donors to a nationwide charity. It is easier to see donations in action on a local level than it is a national stage.

Preparing for the post holiday slump
In addition to easing donor concern about how money is spent, nonprofits must always remain aware of the decline in donations that will likely follow the holiday season. Giving spikes near the end of year because of the impending tax  deadline and increased number of charity drives. It's important that some funding be set aside to prepare for leaner times. It's also key to make sure fundraising strategies are at their best before the the holiday season arrives. 


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Working with Marshal Whittey at First Nonprofit has been a great experience. He handles our request as a priority and goes above and beyond to resolve any issues we have in a timely manner. Marshall follows through to the end and ensures our needs are met. He has been a great resource for LSC and our “go to” for any tax questions we may have. With LSC transitioning several facilities into one federal tax identification number, First Nonprofit was able to assist and provide guidance with best practices resolving claims to each entity. Additionally First Nonprofit provided knowledge (information materials) and one on one training to HRS group with best practices to handle claims state adjudicated, fraudulent claims, and appeals. And processing information in the First Nonprofit [unemployment claims] system allows for timely information can be collected.

Lutheran Services Carolinas, Salisbury, NC

My experience with FNP has been wonderful. Unemployment in general is quite confusing and FNP has simplified the process for us. Everyone we have reached out to or worked with has been very helpful and follows up to be sure we understand the information. I am so happy we made the switch to FNP!

Stone Valley Community Charter School, Huntingdon, PA

First Nonprofit smoothed the unemployment perils for our organization during Covid. Without the ability to cap our UI exposure, we would not have been able to weather the storm. The program worked perfectly and we have come out of the pandemic ready to forge on. Thanks FNP!

Jewish Silicon Valley, Los Gatos, CA

My experience with the FNP has been fantastic. The idea of setting funds aside for the unemployment tax liability is a bedrock for nonprofit organizations like mine, namely ASHBA; what is even more advantageous is having the FNP as a custodian of those funds. 100% recommended!

American Saddlebred Horse & Breeders Association, Inc., Lexington, KY

I would like to comment on my experience with FNP….to date our District has saved $1,000’s of dollars by being enrolled in the First Nonprofit program. My only regret is that we did not know about this method of paying unemployment tax years ago….as I had figured about five years

ago, had we enrolled 15-20 years ago, we could have saved our small school district upwards of $500,000 in payments to IDES. Also we would have had a pretty hefty sum of money in our Reserve Account. Thankfully I attended a workshop hosted by First Nonprofit back in 2015 which got the ball rolling!

Beardstown Community Unit School District 15, Beardstown, IL

I have worked with the First Non-Profit Team for many years, and I appreciate the quick response and care that Cecilia and the team provides anytime I have questions. While there are other providers that may provide like services, First Nonprofit will always be my first choice! I appreciate you!

Innovative Services, Inc., Green Bay, WI

First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.

Visually Impaired Preschool Services, Louisville, KY

Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!

Neurologic Music Therapy Services of Arizona, Phoenix, AZ