In the wake of disasters - such as Typhoon Haiyan - many companies look for ways to help and show their support. International companies with employees on the ground and business relationships in affected regions particularly look for ways to raise money together in the form of employee donations with company matching.
The 5 main challenges for Corporate Fundraising Campaigns are:
▪ Speedy setup and integrated communication
▪ International payment capability (multiple currencies, payment methods)
▪ Ensure tax-efficient solution
▪ Managing ongoing reporting
▪ Nonprofit partnership
One global company = one global appeal
While normally there is enough time to plan and schedule a fundraising campaign, in the case of a disaster it’s critical to start a campaign immediately, while global media coverage is peaking.
Given the prevalence of online payments today, simply providing the bank details of a nonprofit organsiation is not the most effective option for fundraising. Reporting on funds contributed is hugely important and necessary information will not be captured by merely linking to the nonprofit’s website for donations. To engage their employees to raise money, companies need to create one global appeal and integrated communication around it. Ideally fundraising should take place within a company-managed online environment (e.g. Intranet) as opposed to on a 3rd party website. This way companies can keep the communication together with their corporate communication and interact with their employees in a familiar place.
To maximize the employees’ contribution, the facilitation of all relevant payment methods and support of local currencies is vital. Most donors prefer to donate in their local currency and payment method, which also reduces the processing costs and avoids extra credit cards charges, i.e. for donating in a foreign currency.
Tax benefit vs. reporting?
One of the biggest challenges is to ensure the tax benefit for all donors in case of a global campaign. In most countries a donation is only tax-deductible if the beneficiary is a local nonprofit. That’s why, for tax-efficient donations, companies need to choose a nonprofit partner as a beneficiary that is able to issue tax receipts in all countries where the company is fundraising. In the past this has created a big challenge in terms of the reporting. You could either choose one global beneficiary to ensure at least a basic level of reporting or have many different local beneficiaries and then wait for your reporting forever.
When reviewing a fundraising platform, the aim is to make a selection that combines your most important requirements. The feedback from our extensive company appeals mark these requirements as critical to take the admin work off the nonprofits back:
Set up in minutes
Support of local languages, currencies and payment tools
Ability to distribute donations to the local beneficiaries for tax purposes
Integrated real-time reporting
Support donations direct from company internet
In addition tools like automated donation matching are great add-ons.
Red Cross Red Crescent is using ammado
The Red Cross Red Crescent, as a nonprofit organisation with a very large global footprint, is well placed to facilitate international, tax-efficient fundraising for their global corporate partners using the "ammado Giving Widget" Many national Red Cross societies and the IFRC launched global appeals for very large multinational corporates on ammado immediately after Typhoon Haiyan struck. ammado supports 12 languages, 78 currencies, all relevant payment tools and can be embedded into any company website as easily as a YouTube video.
ammado provides integrated reporting to both the Red Cross Red Crescent and its corporate partners and ensures the tax-benefit by distributing the donations to the respective local Red Cross Societies participation in the appeal, seamlessly to the donor.
How ready are you?
International companies should prepare for global fundraising to be ready for disasters or - even better - start ongoing support for nonprofits of their choice. Get in touch and leave us your comments on what your challenges and experiences are with regards to corporate fundraising campaigns.