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Crowdfunding

Year-End Giving: What You Need to Know

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Year-End Giving: What You Need to Know

by Kate Vandeveld

The end of the year is a big time for giving. In fact, the average person makes 24 percent of his or her donations for the year between Thanksgiving and the New Year. There are many reasons why this is the case: the holidays are a time for gratitude and giving back, holiday bonuses put people in a position to be philanthropic, and people look to find tax-deductible donations before the year concludes. 

If you’re thinking about delving (or continuing) into the world of philanthropy as the year ends, we want to make sure that you have all of the information that you need to make smart choices. Here are some tips: 

Follow Your Passion

With so many amazing organizations out there – about 1 million charities in the U.S. alone! – just knowing where to start can be a daunting task. Don’t let it hold you back. Start with yourself. Think about what causes are important to you. Is it education, food security, homelessness, cancer treatment, human rights advocacy? Which causes tug at your heart strings, and make you want to contribute to change? If you choose to go with what you care about, you can (almost) never go wrong.

Do Your Research

Once you know what cause areas you’re most interested in, you need to figure out the specific organizations that are most impactful in doing that work. And to make sure your giving is as efficient, ethical, and effective as possible, you have to do your research. According to Charity Navigator, you’ll want to make sure that you’re giving to an organization that meets the following three criteria: 

  • Fiscal Health: Organizations that are in good shape financially have “greater flexibility and freedom to pursue their charitable mission.”
  • Accountable & Transparent: Accountability ensures that organizations and businesses are following good governance practices, meaning that they are less likely to be doing anything unethical. The more transparent an organization’s practices, the more likely it is that they are using donations in the ways they’ve stipulated. This is not to say that these organizations won’t have overhead (salaries, admin costs, operational expenses) – they will and they should. You can learn more about why it’s important that people who are working to address social problems get paid fairly by checking out this amazing TED Talk by Dan Pallotta. As he says, overhead is not an enemy of the cause – it’s part of it, and is actually a huge contributor to organizational growth and impact.

  • Results: Of course, you’ll want to know how successful the organization has been in accomplishing their mission, and the impact they’ve actually had. 

Luckily, sites like Charity Navigator exist to help you determine which organizations meet those criteria, so you can make smart choices about where you’re giving. We suggest that you start there, and then do your own research too. 

Don’t Forget About Taxes

Taxes aren’t on the forefront of everyone’s minds when thinking about year-end giving. But it’s worth it to know the details about tax-deductible donations when you’re deciding where and when to contribute. Here are the basics:

  • Monetary gifts made to non-profits, mileage used to drive to volunteer at non-profits, and partial-value deductions for in-kind donations (contributions of goods that you’ve donated rather than money) are all deductible expenses. Before you donate, be sure that you’ve chosen qualified charitable organizations, as only those will be deductible.
  • Contributions are deductible in the year they are made, so donations made before the end of 2014 count for 2014 (regardless of whether or not you pay your credit card bill this year). Same goes for checks – they just need to be mailed by December 31, 2014, not necessarily cashed.
  • Any cash deductions, regardless of the amount, must be substantiated by a bank record.

These are the most important rules, but we recommend that you take a moment to familiarize yourself with these year-end giving tips from the IRS so that you can make the most of your final contributions of 2014. 

Stay on Top of Your Investment

After you’ve made your donation, we highly encourage you to follow up with their progress afterward. Not only will this be rewarding for you as a contributor, but by sharing their work with your network, you can also help your organizations gain new visibility. It’s people like you that are keeping many of these organizations afloat, and your contributions and support make a huge difference on the level of impact they are able to make. Charity Navigator recommends that you conduct an annual review of your giving portfolio, looking at the progress reports of each organization you’ve supported, and continue to support those who are using your donations properly and taking concrete steps to contribute to meaningful change.

Giving to organizations and businesses that are creating change in the world is SO important, and we hope that you take some time to think about how you can contribute as 2014 comes to a close.

Which organizations will you be contributing to as the year ends? Let us know on Facebook, Twitter, or Instagram, or in the comments below. We’ll help give them additional visibility!

Happy holidays to you and your loved ones!

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Solving Big Problems: Standbuy Supports the Cancer Community

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Solving Big Problems: Standbuy Supports the Cancer Community

by Kate Vandeveld

Lately, we’ve been focusing on telling the brave and inspiring stories of passionate social entrepreneurs. 

This week, we spoke with WhyWhisper client, Sashka Rothchild, founder and CEO of Standbuy. Standbuy is an online crowdfunding platform for those who have been diagnosed with cancer. In setting up a profile, those who are battling cancer can connect with friends, family, and others who understand what they’re going through. Having successfully funded cancer treatments, egg preservation, and more, this amazing tool is providing hope, support, and financial options to those who are currently facing a diagnosis.

Here’s what Sashka had to say about her journey as a social entrepreneur: 

Why did you decide to start Standbuy?

I decided to start Standbuy because I couldn’t really find anything else I wanted to do where I could spend as many hours doing it, and still feel passionate. After my mom died when I was in high school, I tried a variety of other things, and I just couldn’t let go of wanting to work in a way that helped people who were going through the things that I had.  Coupled with the fact that we’re in a major healthcare crisis – it just seemed like the right opportunity to try and make something to get people support faster.

Why did you choose the for-profit social enterprise model for your business?

I definitely think there is value in non-profits; there are problems that need to be solved that cannot be solved with for-profit business models. But what I see as problematic about non-profits, is that they work at a different speed, since they have to spend 80% of their time fundraising to try to cover the cost of their admins and programs.

I wanted to be able to do kind of the opposite; I wanted to work on making Standbuy more helpful, and adding more tools and features, to give people better support and enable them to tell their stories in an easier way.  By having a business model that that allows us to be sustainable and scalable, I can do that. I don’t have to spend my days worrying about how we’re going to cover our overhead for the year.

What would you say have been the most difficult aspects of building a social enterprise?

I don’t know where to start! There are so many. There is difficulty in building anything – either a business or a non-profit. And if it’s something that you care about, there is this extra added pressure of really wanting to make sure that you’re doing it right.

For me, because I’ve never built a website before – that was a blessing and a curse. On one hand, I needed to ramp up, so I could feel confident and comfortable making quick decisions about how we would develop, or how we would structure the company. But I think it was also helpful because I wasn’t constrained by past experience, or thinking that it has to go a certain way.

One of the hardest parts is finding the right people to work with, choosing who to hire and how to hire, even if it’s an intern. I think it can be hard as a social enterprise because you do have a double bottom line; you need to think about your people and your mission in conjunction with your profits, and I think that you can get caught in a little bit of a limbo situation. You try and read articles on Fast Company or Inc or HBR, and they’re all insightful and informative, but they’re geared toward people that are just operating with a single bottom line: a goal of making as much money as possible.

And then if you kind of flip to the other side and look for guidance on the non-profit side, you’re even more lost because there’s just no real structure about how to do things. Finding the best way to explain your place in the middle – I think can be hard – whether it’s to freelancers, or partners, or anyone you’re working with.

Sashka

What has been the most rewarding part of your experience as a social entrepreneur?

There’s been so much. When you’re starting a business, you work on it all the time. And I happened to have started a business right when I got pregnant. So the entire time I’ve been working on Standbuy, I was either tired, or nauseous, or nursing, or away from my son. And to be able to work so hard on something and then be able to look at him and say, “Yes, I might be working while I’m nursing, but it’s because people need help right now.” That’s really rewarding and unfortunately uncommon for mothers. 

We’ve seen a lot of different success stories in many different areas with Standbuy. I have frustrations pretty much all day, but it’s peppered with notes from people that are so incredibly grateful, and beautiful, and appreciative.

When I see someone raising $3,000 in a couple days so that they can get help, that’s pretty amazing. So…I’m pretty lucky.

How do you envision Standbuy growing over the next 5 years?

I’ve said before that it will be incredibly disappointing if there is still a need for Standbuy in five years. I really hope that as a country, we can get our shit together enough that when people get sick, they don’t need to fundraise on their own. I hope that insurance companies, healthcare organizations, hospitals, and doctors can all work together to get people the help that they need without people going bankrupt.

That being said, I also think there’s a lot of room for Standbuy to grow and expand without necessarily losing focus on the cancer community: by taking our stance on simplistic and easy-to-use design, and translating it into helping larger organizations tell their stories in a clear and beautiful way while raising money to do the work that they do. There are a lot of people who are doing a lot of good work in the world; and if you’re a non-profit, you have especially limited bandwidth, so I would love to be able to offer our solutions to more people.

It would be incredibly depressing if this was still the status quo in five years.

Standbuy

Is there anything that you know now that you wish you’d known when you first started Standbuy?

(Laughs) About a thousand things…

I wish I had known that you can really only go as fast as you can go. Someone who I look up to, a woman named Cindy Gallop once told me that there’s no such thing as “should” when you’re building a business. It’s not about how fast you can go, or these pretend masochistic goals you set for yourself. It’s just about putting one foot in front of the other, and continuing.  It doesn’t matter if you don’t do things as fast as you thought you should’ve, because it’s your business, and you can do whatever you want. It’s not anyone else’s project, and it’s not anyone else’s timeline. And I wish I would have remembered that or thought about that more in the beginning.

It’s also hard to try and remember that you do generally know what’s best. Your instincts are generally right. Getting help and input from people is imperative, but you started your own thing for a reason, and you should trust your gut a little more. Otherwise, what’s the point? You might as well be working for someone else.

What advice would you give to someone who is thinking about starting their own social enterprise?

Be sure that you’re solving a real problem. I think that it’s become weirdly popular to want to launch a start-up. And I think that’s awesome, but you have to be scratching an itch, you have to be solving a problem. And nothing matters unless you’re being helpful.

One of the ways that I try to make decisions for Standbuy is just to try to think – is this helpful? Then great, let’s do it. If it’s not, if it’s for some other reason, who cares? What’s the point? I think there are a lot of people doing great stuff, and unless you think you are really addressing a problem, there are people who need help doing the variety of things that are already out there.

Conversely, don’t be afraid. It’s kind of scary if you’ve never launched a company or a business, and particularly if you’re a woman, because with start-ups and social enterprises are incredibly male-dominated industries, especially when it comes to funding. You just kind of have to say fuck it, and go do it.

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We’re inspired – what about you? 

Standbuy is in the middle of fundraising campaign that will allow them to keep their doors open, as well as roll out new features to make fundraising for cancer much more efficient. If you want to help Standbuy support the cancer community, pitch in, or spread the word on Facebook and Twitter with #StandbuyEachother. If you want to know more about the campaign, watch this video.

Are you inspired by a social entrepreneur who you think the world should know about? Tell us about them in the comments below, or make an introduction via email, Facebook or Twitter.

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