question archive Respond to at least two of your classmates’ posts in substantive responses no less than 100 words per response with attention to current realities and applications
Respond to at least two of your classmates’ posts in substantive responses no less than 100 words per response with attention to current realities and applications
Subject:ManagementPrice: Bought3
Respond to at least two of your classmates’ posts in substantive responses no less than 100 words per response with attention to current realities and applications.
Forum 1: Donor recognition strategies can come in a variety of ways. One of the ways that donors are recognized and encouraged to contribute, is through tax deductions. The mathematics of giving and taxes show that tax rates can influence the amount individuals donate. Contingent upon the donor’s overall finances, lower tax rates increase the cost of a gift. Passage of the Tax Cuts and Jobs Act of 2017 increased the standard deduction and resulted in fewer people who itemize (including charitable gifts) (Worth, 2021). The greater body of research shows that most individual donors have mixed motivations due to the impact of tax policies on the amount they can donate.
Recognition of donors may include listing their names on the organizational website, in an annual report. While some donors request anonymity, others appreciate appropriate recognition. Including donors in recognitions societies (according to the level of gift) by displaying their names on plaques is the same type of visual recognition. Providing information on the progress of a project has a positive effect on donations by subsequent donors (Investment Weekly News, 2021). The outcome corroborates reinforcement models of donor behavior. So, the recognition of having their name published is an incentive both to the individual, and others who witness the recognition.
Tax deductions have been an incentive for charitable contributions. This incentive has apparently been discouraged by the changes in deduction amounts. This makes it less appealing, for many. The strategy of publishing donor names in public arenas has thus become perhaps more of a mainstay. Due to the permanence of written record, or other documented recognitions, this has perhaps become more appealing than that of the charitable tax-deductible contributions. Even though the name is published in the annual report and posted on the organizational website, the impact/cost of the gift has been diminished and therefore seems less of an incentive.
Reference
Investment Weekly News (2021, April 10). Reports on finance and business from University of Texas Dallas provide new insights (Effect of appeal content on fundraising success and donor behavior). Investment Weekly News. https://bi-gale-com.proxy-library.ashford.edu/global/article.GALE%7CA657371176/5418f9ebfd05879031f41b3abcfl19?u=ashford
Worth, M.J. (2021). Nonprofit management: Principles and practices (6th ed). Sage Publications, Inc.
FORUM 2: Donor recognition is an essential strategy in procuring donors, promoting the nonprofit, and retaining donors. Sargeant (2008, as cited in Naskrent & Siebelt 2011) notes up to 50% of first-time donors of an NPO do not support the organization for a second time; for repeat donors, loss rates of up to 30% annually are very common. Through experience, it is reported that past donors are the best hope for future gifts (Worth, 2021). Maintaining a good productive relationship is beneficial to the NPO. Commitment to the cause or the NPO, trust, satisfaction, involvement, and recognition are the keys to donor retention, (Naskrent & Siebelt, 2011).
Donor recognition is a vital part of donor retention. According to Worth (2021) "Well-managed development offices acknowledge gifts promptly, and most tailor the acknowledgment to the level of the gift or status of the donor.” If your endowment is a large one the acknowledgment of the donation may come from high up the NPO chain. Plaques, phone calls, letters are all part of donor recognition.
Another type of donor recognition that plays heavily into donor retention is the concept of stewardship. Informing a donor what his donation has made possible keeps them engaged and active in the NPO. In some circumstances if the donor had specificity in mind for the donation showing the progress or proof of that to the donor recognizes the contribution, keeps faith, trust, and satisfaction on the front line which will seriously keep retention in the forefront of a donor's mind.
Recognition ceremonies of donors, public and media remembrance, and media acknowledgment have a place as well depending on the needs of the donor. Part of donor recognition must be a personal touch, who the donor is, do they need public fanfare, is a phone call sufficient? Getting to know the donor, their motivation is a significant aspect of donor recognition.
Naskrent, J., & Siebelt, P. (2011). The Influence of Commitment, Trust, Satisfaction, and Involvement on Donor Retention. Voluntas: International Journal of Voluntary & Nonprofit Organizations, 22(4), 757–778. https://doi-org.proxy-library.ashford.edu/10.1007/s11266-010-9177-x
Worth, M. J. (2021). Nonprofit Management: Principles and practices (6th ed.). Sage Publications, Inc.
FORUM 3: Recognizing donors who contribute to a nonprofit organization is essential. This also happens to be one of the most important aspects in donor retention. By sending a simple thank you can go a long way and even make the difference in whether the donor continues to make contributions to help the nonprofit organization achieve its goals. Let's face it, if a donor does not receive the proper recognition, if there happens to be a lack of communication, or the donor simply does not receive any recognition at all, this decreases the chances for continued support in the near future. With that being said, recognizing donors for their contributions can be done in multiple ways to show appreciation for those who supported the mission of the organization. One way of acknowledging donors who have supported the organization would be to send out thank you letters to each donor that have contributed to the nonprofit organization. The thank you letter will allow donors to know the impact their contribution has made on the nonprofit organization and how much they are greatly appreciated for being a donor. Another way of expressing appreciation would be to have an appreciation program to distribute awards and certificates to highest donors and to each of those who made a contribution. With doing the the appreciation program this probably would serve a greater sense of purpose for the donors to be publicly recognized by the organization. This could also be a way of establishing clear communication and building stronger relationships with donors. "Recognizing donors desire to make an impact and communicating to supporters that you understand their ambition will help them feel connected to your mission" (Alliance Team, 2021, Show your supporters their impact section). By the same token, in hopes that this would also increase donor retention rate. Reference: Alliance Team. (2021, February 19). Donor Appreciation: 5 Virtual Strategies for Nonprofits. Retrieved from https://www.nonprofitleadershipalliance.org/2021/02/donor-appreciation-5-virtual-strategies-for-nonprofits/
