In the early days of the Internet, Philanthropic Research, Inc. compiled data in a paper directory for individuals and organizations to use to research non profits. Prior to this, charitable donors relied primarily on the information presented by a non-profit organization in fund raising solicitations made by mail or phone. The founder of Philanthropic Research in Williamsburg, Virginia, wanted to change that fund raising information model.
He went on to create a Directory of American Charities on CD ROM. The book and CD ROM were outdated almost as quickly as they were published. The data was soon transferred to the Internet and the GuideStar Web site, now located in Williamsburg and Washington D.C., was launched in 1996.
Today, an Internet strategy has become even more specialized and competitive for information consolidators like GuideStar as well as the nonprofits organizations they represent.
Online Non-Profit Fundraising
An article in The Chronicle of Philanthropy reports that online fund raising continues to bring in larger individual and combined donations. Unfortunately, however, this giving has not made up for the recent decreases in direct mail solicitation. Nevertheless, the Internet is a critically important tool that nonprofits should learn to use effectively.
In addition to consolidators of non-profit information like Guidestar, there are others. Each has a slightly different mission. A few are listed below. Their primary focus may be to solicit individual donations, to evaluate and give a “seal of approval” to charities, or to help foundations with their due diligence research. Therefore, it is important for non-profit organizations to be sure their accurate and up-to-date information is available on all of these sites so that they may be found by donors of all types.
GuideStar as a Tool for Non Profit Fundraising
With a mission that has not changed since 1994, “To revolutionize philanthropy and nonprofit practices by providing information that advances transparency, enables users to make better decisions, and encourages charitable giving," GuideStar provides a database that includes all tax-exempt organizations registered with the IRS.
They added capacity to allow online donations in 2007 as more competition from retail-oriented sites pushed them to offer this function too. Hundreds of thousands of dollars have been donated by individuals who use the site to check up on companies that may be soliciting them. “That’s why it’s important for non profits to go to the site to upload their latest information, mission, names of Board members, photos and videos of events,” said Melanie Beaumont, Director of Nonprofit Support. “They can do it themselves.”
Beaumont relayed a story to illustrate how important it is for non-profit organizations to provide information beyond what is available from the IRS: By using GuideStar, a charitable group in Washington D.C. found and made a large donation to an agency in Kentucky that works with early intervention for children with disabilities. The Washington group chose the agency to receive the proceeds from an annual gala. The Kentucky non profit was able to pay off debt, buy equipment, and add a staff position with the funds.
To research non-profit information above and beyond the basic level, individual clients as well as financial institutions and foundations pay for products and services. They might order custom data sets that require searches to find non profits that meet particular criteria in a zip code area of interest, for example. Libraries buy memberships that allow their patrons to research beyond the basic level.
Charity Navigator Evaluates Non Profit Organizations
This consolidator of non-profit information founded in 2001 bills itself as America's premier independent charity evaluator. Charity Navigator advances a more efficient and responsive philanthropic marketplace by evaluating the financial health of over 5,400 of America's largest charities.
Charity Navigator has become an important tool to donors due to this evaluation function. Their evaluation mechanism is numbers based in order to project objectivity. Unfortunately, numbers sometimes do not relay important “soft” bits of information that may make an organization appealing to a donor.
JustGive: Another Non-Profit Fundraising Site
The JustGive database includes nearly 1.5 million charities and is dedicated to increasing charitable giving “by connecting people with the charities and causes they care most about.” The site notes 1,000 charities that have met stringent requirements to be especially promoted by them. JustGive has grouped their database into19 categories to make searching easier and faster.
Non-Profit Fundraising with Network for Good
This website enables donors to search and donate to more than 1 million charities online. They partnered with GuideStar to help the older company enable safe and secure means to donate online.
Use Email Marketing Software for Solicitation
Many non-profit organizations are making successful enewsletter marketing appeals for funds by way of email marketing software. Links in the newsletter relay donors to the charity's website or one of the non-profit consolidators.
More Non Profit Organization Strategies
Non profits can learn more about outreach at Non-profit Marketing and Public Relations: Reach Audience and Press with Traditional and New Media.
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