How To Get a Building Donated to Your Nonprofit
We all know that a Nonprofit is a vital component of our society. The existence of nonprofits helps improve individuals while creating a highly functioning community. In this day and age that we live in, getting anything for free does not come easily.
This article will discuss how nonprofits can get a building donated to help support their organization. Real estate donations can be difficult to get, but this article will give you some tips to make it happen.
Real Estate Donations For Your Nonprofits
Let’s talk about getting donations. There are specific opportunities to look for when trying to get your nonprofit real estate donated. The associated cost with donating to a nonprofit can be a hefty expense to many but those same people can receive something in return too. The trick is to be proactive and think outside of the box about how to find property owners.
You may need to solicit different property owners until you find someone willing to listen so don’t give up[. There are many things to look for including the location of the property, how functional the area of the property is, and whether or not it is a good lease agreement. For example, if you run a food bank, you are going to want to accept a property located near a low-income neighborhood to maximize success. This will allow you to have easier access to your targeted population.
If you want to start actively looking for grants and donors, you can visit Grants.gov to view nonprofit funding opportunities and additional free resources but also don’t be afraid to pick up the phone and start a conversation with building owners. Make sure that when you reach out to donors, you also present them with a formal written donation request. Be persistent and build your case.
Soliciting for both cash and non-cash donations can be helpful to your nonprofit organization. Whether the donation from a company is cash or non-cash based, it will help your nonprofit. This will help increase the likeliness that other potential donors will follow suit.
To keep up to date, you can set up Google notifications (called google alerts) to be notified when your nonprofit is mentioned in the media. Google also gives grants to nonprofits which may be something to look into. Charitable donations from corporate companies helps them seem more personable, as well as increases their morale. This may also help them achieve their charitable giving goals, which allows them to help and give back to the people.
Finally, the United States Federal Government has a substantial amount of real property that they no longer need. This space is often given to nonprofits, regional agencies, or for state and local use. This could be worth also looking into if you’re located in the US, as you may qualify for a federally funded property.
Tax Deductions As a Benefit For Donors of Property
When looking for property donations from corporate companies, The Internal Revenue Service can be on your side. Let’s take a further into how the IRS can help you with getting a building for your nonprofit.
First, you want to make sure that your nonprofit organization has acquired 501(c)(3) status from the IRS. This means that you have successfully completed and have been approved as being a tax-exempt, charitable organization. Charitable organizations are seen as any organization that helps improve the well-being and life of society. This step is vital, as it is highly unlikely that you will receive corporate donations without having this status.
There are two classifications that qualify for 501(c)(3) status. You can either be a public charity, who acquires most of its money from public donations and seeks to help the public. Or, you can also qualify as a private foundation. In this case, you obtain your funds from endowments or investments and distribute your money in the form of grants to other institutions.
After you have acquired 501(c)(3) status, start looking for in-kind donations. An in-kind donation is when a company gives product donations instead of cash. Often times, this can look like gifts that will improve your companies functionality. Some of these can look like office supplies, advice, furniture, and if you’re lucky a building. Businesses can then use their donation as a tax deduction for the fair market value of their contribution. For example, if a corporation donates a building to your nonprofit, on their annual tax return they will get a tax break for the market value of the property.
The IRS only allows in-kind donations to organizations that are tax-example charities (nonprofits). There are requirements involved in this deal, so make sure you do your research before you go soliciting to corporations. Corporate businesses have no obligation to say yes to your request, so don’t give up after a few unsuccessful endeavors.
Document the Process For Property or Building Donations
Keeping your records all organized is key to making this process run smoothly. When reaching out to your prospective donors, make sure you are keeping all important documents regarding your nonprofit on hand. An example of this could be keeping a list of all your donors who you wish to contact or may have already contacted. Keeping all the components of your organization in order will make it easier for donors to read about your requirements. For example, if your building will need multiple components to it, make sure donors can clearly see that. Your donor will need to also keep all their documents regarding the donation. This is important because the IRS will make them file a separate form for donations over $5000.Make sure when you are soliciting donors that you have the proper documentation from your state and local laws. Making sure that your nonprofit organization is formally recognized and is legally permitted is key.
It can be overwhelming at times to keep track of all of your donors, amounts donated, prospective donors, and more. To help with this, you may want to look into purchasing a fundraising software. These can help make all the difference for organizing/keeping track of records. Being able to utilize your resources correctly can help you succeed in your search.
Peer-To-Peer Fundraising For Nonprofit Building
What is peer-to-peer fundraising? The mechanism comes from a larger fundraising technique called crowdfunding. The process is simple and fun. Suppose your nonprofit is hosting an upcoming fundraising event and wants to gain exposure, you would follow these steps. Hire recruiters and give them the resources to post about your campaign on social media websites, etc. From there, the campaign will be shared through friends and family, growing exponentially. This may even increase your chances of getting more online donations that you wouldn’t have gotten without peer-to-peer fundraising. Online fundraising can also be beneficial, and will simply charge donors credit cards each month without having to constantly contact them.
The more exposure your nonprofit receives, the better. The more people who know about your organization, the more likely it will be to gain popularity. From this, corporations will gain access to your nonprofit and they may consider donating real estate property. Peer-to-peer fundraising is a great way to obtain wide-reaching donations while raising awareness of an upcoming fundraising event. For example, if your nonprofit is hosting an upcoming walkathon, peer-to-peer fundraising can help your walk gain more participants, and raise money. Make sure your nonprofit organization has the proper social media so donors can reach you easily. Update your page regularly with updates, and send out emails to remind donors of your events.
How will this help your nonprofit organization get a real estate property donation? The more people who are at your fundraising event, allow more prospective real estate donors to see the mission of your organization first hand. You will even get to meet new people interested in donating property at your event. Networking can be crucial in finding possible donors. Hosting regular fundraisers will show your prospective donors your commitment to your organization, making it more likely for them to choose you. It can also make them more likely to give recurring donations. Make sure you research any donor extensively to be sure that their goals align with yours.
Set up a time to meet with all possible donors and create a connection with them. Explain to them your mission, and why it would benefit them to donate to you. Allow them to come and see where you currently run your organization, and let them see what you’re all about! Make sure you also ask them about their mission and goals as a company.
Finding the Right Fit for Your Nonprofit Building
This process is not easy, so do not expect it to happen overnight. Finding donated property successfully often takes a while before finding the proper fit for your organization. However, through the proper fundraising efforts, you might just find a match. Just keep in mind that a building is not a small expense, and be open to all different opportunities. Now that you have all this information, evaluate your nonprofit, and see what you can do differently to improve. Good luck!