These are myths you may have heard about philanthropy and giving but can now overcome using this knowledge.
Myth: Donations Too Small Don’t Matter
Your charitable donations are significant to the survival of local nonprofits. Having multiple sources of support helps a group maintain its credibility and avoid a financial crisis. For instance, if a significant source of funding, such as a government grant, suddenly stops, a nonprofit may not be able to survive. But having diverse sources of support can help a group succeed.
Myth: Making A Donation Doesn’t Benefit You
According to studies, people are more likely to feel happy when they spend money on other people instead of themselves. In one study conducted by Michael Norton, he gave a group of volunteers money. Half of them were told to spend it on themselves, while the other half were given money to spend on another person. The study’s results revealed that the individuals who shared the most money were likely to feel happy.
Myth: You Give Money Away As A Philanthropist
Philanthropists can give monetary and non-monetary resources, which can make a massive difference in the operations of a local nonprofit. For instance, pro bono and board service can help a group grow its capacity and skills, and you can find ways to serve the causes you care about through your volunteering. Before you make a financial contribution, it’s crucial that you thoroughly research the needs of a local organization.
Myth: Fundraising Costs Should Be Low
Despite the importance of direct services and programs, a local nonprofit should still consider investing in other non-programmatic activities such as fundraising. This is because if a group does not invest in itself, it will not be able to grow and become more effective. When it comes to choosing a local organization for its charitable donations, many donors look for programs that are efficient and effective. Investments in operations and infrastructure can support these.
Myth: Nonprofit Salaries Should Be A Minimum
One of the most critical factors that a local nonprofit should consider when hiring and retaining top talent is the availability of competitive and fair compensation. Since many of its programs and activities focus on addressing complex social problems, a group needs the best staff members to carry out these tasks effectively.
Some of the best local organizations hire people from their community. They may need to do better in serving their mission if they provide a fair compensation package. In addition, a group can keep its employees by retaining their skills and experience if they are paid fairly.