 Good morning or again afternoon, depending on what time it is that you might be joining us for another episode of the nonprofit show. This week is dedicated to the nonprofit Power Week and we have Bloomerang with us, one of our amazing presenting sponsors, but yet they're very first Power Week. So we were on day four Thursday of this Power Week and we have Diana Oturo with us today with Bloomerang. And she's here to talk to us about non-profit tax receding, but not just tax receding, how it can make your life easier for those of you that are responsible for that. So stay with us, Diana has a lot to cover. And again, this entire week, thank you to our partners at Bloomerang for committing each and every day, Monday through Friday of this week to so many critical topics in our sector. So if you missed any of them, Julie and I were here and we have archived them and you can find them of course on many of our archive platforms, but we do wanna thank all of our sponsors that allow us these opportunities and conversations. So again, huge shout out of gratitude to our friends over at Bloomerang, American Nonprofit Academy, staffing boutique, nonprofit thought leader, fundraising academy at National University, non-profit nerd and your part-time controller. These partners are here and I like to say this, Julia, they're really not here for us, they're here for our viewers and our listeners. I know it's shocking, but our viewers and listeners and their missions. So there's so many critical missions, 1.8 million registered non-profits and these companies are here to help you do more good throughout your community. So again, if you missed any of our episodes or any of this Power Week, you can go back and watch them. You can also go back and share them, but Roku, YouTube, Amazon Fire TV, Vimeo and podcast form, that's a mouthful, but that's where you can find all of the recordings. 700 plus are archived on these platforms. So really excited to have that in perpetuity for our sector. So Julia, I know we've heard numerous times that people will go on to watch episodes and five episodes later, they're still tuned in to the nonprofit show. Well, now I get a total charge over, and because I'm a geek, taking the remote to the smart TV and speaking in, and then the nonprofit show comes up. That to me is like the best. And as Jared always says, we're just months away from the two of us sitting on your sofa with you in hologram format, probably because- I think if you put the right glasses on, it could happen like today, but Diana, you've been so patient and we are so grateful you and I met almost a year ago now at the AFP icon conference in Las Vegas. So Diana Otero joining us, product marketing manager at Bloomerang, welcome. Thank you so much for having me. I'm so excited to be here today. You know, you are like the unsung heroes behind the scenes with this great brain power that makes life fabulous or miserable depending on if we know these things or when we don't. And so when we were talking about getting you all together for a week and really drilling down on things, they were like, Julia, this might not be a real sexy topic, but we think it's important. And I was like, are you kidding me? This is a great topic because it is, I mean, Jared, you know, it's like we have a lot of questions and it talks about the legal issues and good stewardship. And so let's get into it. And if you can just give us this overall arching idea is what is the role of the tax receipts? It's not just to make us cranky, is it? No, I mean, isn't this everyone's favorite topic? Especially, I mean, that's what everyone's talking about this year, but this is really an important topic, right? Because when people think about tax receding, they think, oh my gosh, this is gonna be such a slog, it's gonna be so much work, but they're missing an opportunity here. So really the role of the nonprofit or the role of tax receipts is twofold. One, of course for the donor, it gives them a record of their donations so they can take advantage of those tax deductions and they have financial records of their contributions. But oftentimes we forget that there's benefits to the nonprofits for doing this as well. And I think it's a great reminder because it's an opportunity to engage with the donors again, show them that you appreciate them and share what you've done so you can keep that stewardship going. I think that's an important role that's missing. So yes, it's for the donors, but it's also for you for the nonprofits and there's a big role that is not being filled if you're not taking advantage of that or if you're not taking that into consideration. I love this, because it's a mindset. Yeah, it's a mindset and it also really drives home the stewardship, right? Like leaning into relationship, using this opportunity to say, look at the impact you and your household have made throughout this year. So you have brought to the table five tips Diana and I feel like I should go ahead and tell all of our viewers and listeners if you're not driving, at least bring out a pen and paper and let's capture these tips because you really are going to make our life easier. And let's start off with this tip number one. And I just want you to drive it home. Like one of the five, tell us this tip number one. Absolutely, number one is if you're not doing this, make sure you're segmenting. Again, we take the tax receding as an opportunity to engage with your donors again. And this is one of the things you can do ahead of time. Don't wait until you're in the tax receding season to do this throughout the year. You can already start deciding and building what your segments are ahead of time. How are you going to talk to your different segments of donors? What different kinds of donors or donor groups do you have? So a big benefit here to you also is it really forces you if you're not doing it already to get to know your donors. So number one is make sure you're segmenting and everything's going to start from there because we're going to see later because you're segmenting, you'll be able to personalize and really turn this very potentially very boring piece of communication into something that can delight your donors and engage your donors even more. So I don't want to catch you in any like, I gotcha, but when you think segmenting and Anne Feldman talked about segmenting this week, Josh Meyer talked about segmenting, what are the segments you're talking about? I'm curious if you can just get super nerdy and just like off the cuff, what are some of the segments? So we can talk about segmenting for hours. But we don't have that long, but yeah. We won't do that. And I mean, each nonprofit is unique, right? So the first question, and I'll give you some samples, but the first question is, what are the donor groups that you ask yourself? What are the donor groups that make up your supporters? So this could be new donors. You want to treat those differently, how segment out your new donors, recurring donors. It's also a great opportunity here that I think is missed is people or as a donor, I myself, you know, I know how much I give monthly, but I might attend an event or someone might do a peer peer campaign or giving Tuesday comes around. I lose sight of my cumulative giving. And the tax receding is a great way to call back to that of like, oh, yeah, you know, you've already done this much. It's not just your five, 10, 15 a month or however it is, this is what it amounts to. If you have kind of sponsors or members, how are you treating those differently? Loyalty, you know, if you have donors that have been giving to you for five years, 10 years, 20 years, what are you going to do differently for those segments of donors that you have? Oh, I love it. Okay, Jared, I'm going to go on record and I'm going to say, I'm going to push back out to Bloomerang and for the next segment that they're on, let's just talk about this because already, you know, Diana, you brought up some things that I wouldn't have necessarily thought of. And so I think we need to explore this because that to me unlocks a lot of how this is going to navigate. I mean... Are you saying you want a segment on segmentation? Oh, my goodness. Man, that rocks. I mean, that's exactly it. Okay, so tip number one really is the segmentation and I love that. And here where I am in my community, Arizona, we have tax credit and many states, you know, also have tax credit and I could see that that is part of the segmentation. And so really you're talking about all five of these tips and we're going to move into number two is to plan ahead before, you know, it really is tax receding time. So what is tip number two if tip number one was to segment? Absolutely, that's a great point too. Again, we're kind of starting with the things that we're not even in tax season yet, right? So leading up to it, number two is use a template. I know I might get some pushback from this because some people feel like, oh, isn't that gonna make it less personal? And I would push back and say, you know, it gives you actually a little bit more freedom, you know, you draw the box, you form your template and you can be creative within that. And when I say template, you know, think about, okay, what do I need in this letter? What am I sending out in this? What are the requirements? Are there, you know, specific requirements to my state if you're in Canada, specific exceptions, things like that, but also thinking back to the role is not just the tax receipts themselves, how can I use this as an engagement piece? Are there other stories that we wanna put in there? So it's kind of templating out, what do I wanna say? And when it comes time to sit down and write it, you can be like, okay, I know I'm gonna want a story to include in there and throughout the year, I can be thinking about, oh, this is a great story that I'm gonna include in the year-end letter once we send it out. So because you've put together that template, you can start thinking about it already and it, you know, you can put it in when it comes time. You were a brilliant mind because I see it often. Honestly, this is, you know, a final to-do on our list, one of many, you know, to mention, but really looking at this ahead of time and I'm thinking my brain is overloaded already, Julia, because I'm thinking of even like, you know, other stories that you can pull in throughout the year that you can tie into successes, things like that. And you could just kind of, you know, build onto that. So using that template, I see is really, you know, a benefit. So what are you gonna pull out of your tricks for tip number three? Well, before that too, and you see how this all flows together. So when you create those templates, make sure you're creating those templates for each segment. So again, you can tie in that story to each of the segments and the impact to each of that segments. Now, when we get to number three, this is really your time saving. What can you automate? Most CRMs that are out there, if you're using a CRM, they have some kind of automated system that automatically generates these tax receipts for you. Or even if you don't have a CRM, use a mail merge in Word, use a mail merge in Excel. I was recently helping a nonprofit send out their tax receipts in January. They were just about ready to sit down and manually plug in each person's donation amount. And I was like, hold up, let's take a step back. There's an easier way to do this. Your time is much more valuable than manually updating each and every single thing. Plus it's gonna be more prone to error. And your eyes are gonna get cross-checking that just to make sure everything's right. So if you have the tools available for you, how can you automate? Yeah, and I love that you say this because again, that human error factor is huge. And even if you're at a point where you're not doing this, this needs to be on your technology strategic plan. I mean, this is like a must because I don't know how you can grow. Your point is so well-taken about what else could you be doing with that time? Right, you know, you could be bringing in more money to pay for that CRM licensing fees. I mean, you know, needed. Yeah, absolutely. You know, and I see that all too often as well, Diana, you know, organizations of all different sizes and just because maybe they're an established, mature organization, you know, as we talked about with other previous Bloomerang representatives, good data in, good data out. And so it's the trust that we put into ourselves and into our own system. So I can definitely appreciate that in automation. I know we'll just simplify. Yeah. Yes, absolutely. Micah was just talking yesterday about making sure your data is clean. And once you trust that the data is clean, you know you're gonna save so much time and think of the cost benefit to, you know, if you can pay for, if you can pay to get this automated, I bet you that's still gonna cost less than if you were manually having to do it. That's right. Yeah. And I'm so glad you mentioned Micah, because, you know, as you think of a topic, cleaning your database might not sound sexy to most, but she really has a knack and shared so many amazing tips and techniques. Again, similarly to you to make our life easier. So it's just, it's so important to, you know, really dive into these topics. Okay, let's move from automation. And let me just recap. So tip number one, and this is all under the umbrella support, I should say, of planning ahead. So number one is to segment. Number two is to use a template. Number three is to automate. So what's number four for us? Number four, give yourself a deadline. Okay. Okay. Now I wouldn't have expected that one. Yeah. You know, I mean, deadline for filing taxes, of course, isn't until April, but give, try to give yourself a deadline, send out the letters by January 31st. And I know that seems kind of like a weird tip, but here's why. The more that you think about it, the more stressed you're gonna be, just to give yourself a deadline, get it done, and you'll be done. You know, think of this as, don't think of it as, oh, this is a looming thing that's coming. Think of it as, it's a very freeing thing. After that time, you're gonna be free, right? It also, you know, it's good benefits for the donors because if they need to get there, or if they want to get to file their taxes earlier, they already have it, you don't have to deal with folks having to ask, don't wait for them to ask, be proactive. So that leaves a good impression to the donors as well. And if it gives you a little more wiggle room in case you need to change something in your process, or mistakes will happen, a mistake happens, you still have time to correct it. So give yourself a deadline, and don't be scared of it. Think of it as, after that date, you'll be all good. Into your point, looking at this as another touch point and another opportunity of stewardship, sometimes we grapple with how do we reach back out with something meaningful, this is it. So I think you can turn it into a positive and a win. And again, it's a mindset shift. I just love that. I think it's so important. I think too, when it comes to the stewardship, and I'm curious Diana, if you're seeing this, you know, a lot of offices have reopened and they're really inviting constituents of all maturity levels, you know, new donors, legacy donors to come back in and see the programs, right? Take a tour of the facilities, come to the arts and cultural kind of event. Can you integrate that piece and perhaps an invitation in the letter? I love that, absolutely. And again, this is, you know, think about going back to the template, like what are those things? You know, what we've set our calendar for, hopefully you've already set your calendar for the year by this time. So you know what's coming up and you know what those next steps and next cultivation points you want to invite the donors to come to. I don't know, that's wonderful. And even to follow along, Jared, even volunteer events where you can be like, we're gonna be doing this or we're gonna be doing that. Why not get that on the radar? Really cool. Okay, wow. So, so far, so really good. New ideas, what is our next big idea? Now, number five, document. You've already done all this great work. You don't wanna go through the same stress again next year or you don't want to put someone else through that same stress. So if you've already found what works for you, document it. I'm a big fan of this, people often forget. A big part of the stress is, I don't know what I'm gonna do. I don't know what I'm gonna write. When are we gonna send this? What are our segments? Document everything. It's gonna save you even more time next year. Okay, how thorough should this documentation be? Are we talking like high level bullet points? Are we talking like, you know, full on sentences of where, when, how? Good point. Great question. People are always intimidated when I tell them to document. Start small, start simple. If bullet points works, start with that. And again, documentation isn't a one-time thing. Document as you go along, right? So it's not such a big task. You know, if something comes up this year that you're like, oh, hey, that's a good idea. We can, we should incorporate that. Go ahead and add that in now. Oh, good one. And so you can build that as you're going along. Yeah. You know, Julia, that makes me think of Micah again. So another shout out to Micah from yesterday. She was phenomenal. And her, one of her tips was if it's going to take less than two minutes, do it now. Yeah, I loved that. That's just like a good piece of advice for life. Absolutely. Yeah, I thought that was smart. In the green room chatter, these points have been so spot on for me. I can see how they work. I can see how they make things efficient. They reduce the stress and the fear. Talk to us about the receipt that we get and we drop off goods that may be our favorite thrift store, things of that nature that we all find ourselves when we're in that process dealing with. What does that look like? That's a very interesting point, right? And it goes to when we go back to our, going back to our templates, right? So different kinds of donations. There's different requirements for each. So typically for cash donations, you have to declare the value. For in-kind donations, it's really the donor's responsibility to declare the value. So as a nonprofit, really what you're wanting to provide is the date that they gave, as well as a description of what the items, the in-kind donations were. And it's really up to the donor to declare that value. So being aware of what those different requirements are is key as well. There's a lot of IRS resources out there. And that's one of those things that when you document, you don't have to itemize all of that, but link to the appropriate documentation. Because, hey, it could change. So make it easy. Yes. So make it easy for the person as well. Link them to the source. So you don't have to update the documentation every time. Yeah. I think it's a really valid point to ask about that in-kind as well. Because in my mind, I'm always thinking cash. Like how are we acknowledging our cash donors but the in-kind donor often is just as equally kind of at that level for many organizations. But I'm really curious, should every single constituent, every single supporter receive a tax receipt? Or is there like an IRS level where you don't have to do it for everyone or should we? That's a great point. So that's where we go back to as well. What's your donor makeup like? Are you going to use this as a stewardship piece, right? Because there's technically requirements. It's $2.50 enough for the IRS. But again, I'm seeing a lot of organizations send this out to everyone, even the $5 donors, because they are using that as an extra cultivation piece. And there's different ways you can do it too. I know sending out mail will cost money as well, but there's also a question on, do you want to send email? Do you want to send letters? And technically from the IRS, it doesn't matter as long as you provide written acknowledgement. So in order to save money, maybe, and this can be part of your segmentation strategy, if it's at this level and up, they get a letter, they get a handwritten note. For these amounts, they get an email. So you can think of it that way as well. Going back to that segmentation, right? Like from our tax receding letters of this segmentation, who might receive that email? Who might receive that, you know, the USPS? And then my brain goes into so many other different areas too, because I'm thinking, well, who should send it? You know, is this the development director? Is this, you know, maybe if they're in a portfolio, the manager kind of like of that relationship? And I'm just sure there's so many different things to think about this and oh my gosh, my brain's spinning. Now, here's another thing for you. We've been talking about tax receding and you know, when we're talking about tax receding, of course we're talking about donations, but that's not the only way that donors give. When you think about your segments, can you do something for your volunteers? Instead of a summary of donations, do you want to send out a summary of volunteer hours? Totally not required, but again, with that thinking of that's kind of the time of year, how can I use this as a stewardship piece? What's the, where's the opportunity here? Wow. You've really shifted my mindset. Because I really have always seen it as it's that thing we have to do. It's not always fun. It sure as heck is not sexy, but really looking at the template. And I love this, right? And that was tip two is to using that template. Is really looking at, okay, within this template, how best do we want to communicate with our audience? And there's so many ways in which we can do that. So I want to recap for those of you watching and listening, right? So for the tax receding overall Diana says and recommends greatly to plan ahead, right? This is not that end of year, now's the time that we have to do it. So all of these five tips is under the guise of planning ahead. So number one is segmentation. And Julia has requested a segment fully on segmentation. Yeah. Hello. Is to use a template. So really, really creating that template. Three is automation. Four is deadline. And I heard you say January 31. So is that your recommended? Okay. So January 31, I'm gonna add that to my coaching. And then number five is the document. Document, document, document the process. Amazing. This has been great. Again, you took something as Jared just witnessed. You know, it lands in the drudgery file or pile. Like, oh, I can't do this. But I loved the whole mindset shift from the get-go. And if you do that, then all these things fall into place. They all relate. They all support one another. It was really magical thinking. So thank you. Diana Otero, Product Marketing Manager from BloomRang. She's coming to us from just, what did you say, half mile away from the new corporate headquarters of BloomRang in Indiana. So we are so delighted that we were able to have you back with us. We're gonna see you again in the not too distant future, right? April, New Orleans. I'm so excited to see you there. Yes, because we met, as I mentioned earlier in the episode at the AFP conference last year. And this year we're coming up again. And so excited to have you there at the conference. And I will be there. And Julia will be there in this box again. Unless you change your mind, Julia, and come with me for some beignets and jazz. I know, I know that in itself, I might just have to book myself. Hey, everybody, again, I'm Julia Patrick been joined by the nonprofit nerd herself, Jared Ransom. This has been an amazing week. And there's a lot of content. And it all weaves together in such interesting ways that wouldn't be necessarily apparent. So we've talked about learning from nonprofit giving trends. And that's how we started the week riveting, riveting information that was somewhat shocking. But yet Josh Meyer gave us some really good ideas. We talked about the first time donor journey, five tips to getting the second gift. And that's a really interesting thing. Again, tagged on to Josh's information with Ann Meyer, really, really cool. Spring cleaning your donor base. What does that look like? Why should we do it? How do we do it? And then today, of course, we talked about the tax receiving, which was super interesting. Now, tomorrow, we're gonna end the week a little differently. It is our Friday Ask and Answer episode. But we're gonna be talking with one of the Bloomerang experts about if you're going to be getting a new CRM or changing, what are the questions that you should be asking? Whether you're gonna look at it Bloomerang or not is not the issue. It's like, what are the questions that we need to be asking in order to be good decision makers really? Don't you think, Jared? It's gonna be a lot of fun. I'm excited. Sorry, Julia, but I'm taking that one tomorrow. I'm so excited to have that conversation. I've been honored and privileged to work inside of Bloomerang's CRMs for many of my clients and really enjoy the system. So excited to have this conversation tomorrow for our Friday episode. And we wouldn't be able to do any of this, including our Power Week, if it weren't for our amazing presenting sponsors. So again, another shout out of gratitude to our besties at Bloomerang. Thank you, Diana, for joining us today. You were phenomenal. Also, wanna say thank you to American Nonprofit Academy, Staffing Boutique, Nonprofit Thought Leader, Fundraising Academy at National University, Nonprofit Nerd, as well as your part-time controller. These companies are here to elevate your critical mission in, around, throughout your community. So thank you to our amazing presenting sponsors. Amazing. Hey, this has been a lot of fun. Again, I learned something new every day on the show, but the Nonprofit Power Week is really exciting to me because it just pulls all these different thoughts and elements together. And I don't know about you, Jarrett, but it seems like it makes it more manageable when we understand how we can link things together and it eliminates some of that stress that all- Municipal and fun. And fun, yeah, and purposeful. Yes, yes. Diana, thank you. It was a huge pleasure. Thank you so much for having me. This is so fun. Thank you. You're a rock star. And, you know, we gotta treat our rock stars well. And so, Diana, I want you to listen to our sign-off because we say every day to stay well so you can do well. We'll see you back here tomorrow, everyone. Diana, thank you.