Tick tock.

In less than one month, on May 15, an estimated one-fifth to one-quarter of nonprofits will lose their tax-exempt statuses with the Internal Revenue Service.

Could your organization be one of them?

According to a New York Times article:

The federal legislation passed in 2006 required all nonprofits to file tax forms the following year. Previously, only organizations with revenues of $25,000 or more — or the vast majority of nonprofit groups — had to file.

The provision gives the IRS the power to revoke the tax-exempt status from organizations that failed to file for three consecutive years.

Unfortunately, a spokesperson from the IRS said notifications probably wouldn’t be sent out until January. Donors to the affected organizations will still be able to take a deduction for gifts – but only until the organization receives a formal notice.

Smaller organizations are the ones most likely to be affected, which could present lots of problems, especially for those who rely on volunteers.

Organizations that lose their tax-exempt status will have to reapply with the IRS – and could actually owe the IRS money if they haven’t filed in the last three years.

For more information, take a look at the IRS’ website explaining the provision.

Thanks to Rebecca Leaman for the tip.

Photo source

I’m sure everyone is tired of hearing about the horrible economy, but the truth is, the unemployment rate isn’t improving and the economy is still shaky. We’re in the midst of a slow recovery, and I’m sure your association hasn’t been immune.

A key part of any nonprofit is fundraising. Has the recession affected your organization’s fundraising efforts? Have you altered your strategy or ramped up your endeavors? Don’t be afraid to ask for donations even during an economic downtown.

In my opinion, the most important thing to remember when asking for donations is to make it personal. Tell a story. I’m much more likely to give my money to an organization that makes an effort to tell me exactly where my money is going and how it will help the organization or its beneficiaries. Even if people don’t have a huge amount to donate, a personal story will always appeal more to them than simply saying, “Your donation is much appreciated.”

How many ways can your donors give to the organization? Do they have to send a check, must it be done over the phone or are online transactions acceptable? The more convenient it is, the more money you’re likely to raise.

Don’t forget to stress that every dollar can make a difference. Whether your donors give $1, $10 or $100, let them know that their contribution means something to the organization.

Do you differentiate between members who have donated before and those who haven’t? If you’re speaking to a potential first-time donor, introduce the organization and its philanthropic efforts – but no matter whom you’re addressing, direct the message to a specific person, not just “Sir” or “Madam.”

And, as a former copy editor and self-proclaimed “grammar geek,” I can’t stress the importance of proofreading your copy. Whether you’re sending a letter in the mail, an e-mail or using another form of communication, be sure there are no typos. It completely detracts from the message and is just unprofessional.

Finally, don’t forget to follow up with a thank you card to those who gave. It’s another small personal touch that will make people take notice and be more likely to continue donating.

Happy fundraising!

Image via Flickr