[michaelwyland]

I’m really on the fence with this one. Should we also ask for postage, mailing, third-part fundraiser fees, fundraising salaries, and other reimbursements of the cost of raising funds?

At the end of the year, I gave a $1,000 charitable gift online. I was asked to pay an additional $39.XX to reimburse the charity for processing fees. I paid the fee, but I wondered how good their contract with the processing company was and what other fundraising costs I should be concerned with as a donor. I snapped out of it pretty quickly because I’m not an average donor, but it made the donation process just a little awkward for me.

It also occurs to me that raising the issue of credit card processing costs also raises the spectre of overhead costs more generally, especially for less knowledgeable and less sophisticated donors.

Again, I’m on the fence and not sure there is a single, simple answer.

[michaelwyland]

I think the answer is situational, based on the organization’s mission, service model, geography, etc. The inflation/recession factors cited in the question are short-term or, at best/worst, medium-term in nature. Hence, the response to them should be more tactical than strategic; i.e., “How do we adapt to today and the next 12 months while keeping our eyes on the long-term sustainability of our organization and its mission?”

Arguably, the only “wrong” move is to focus on only one business model and ignore the others. Each business model is subject to change by external factors, and each business model is changeable based on an organization’s internal factors.

[michaelwyland]

Kate:

Thanks for your thoughts and recommendations – they’re very much on point. Tomorrow, I’m headed to one of their service addresses to go through boxes of archived records, some of which, I’m told, are payroll records from 20-30 years ago! Time to check with legal counsel for updated records retention/destruction guidelines *and* call the shredding company and arrange for a pickup after looking at the 20 boxes or so of records!

Just one indicator that it’ll take a while to wind down the corporation — they haven’t yet filed their 2020 IRS Form 990 (the extension is still active) and we have accounting records to validate before attempting a 2022 Form 990. Will we need to file a 2023 Form 990? Not yet known, but probably likely.

Just one complication among many relating to your sage advice. We had to find a way to keep health insurance active for employees after their termination dates (through the end of 2022). It was a laudable choice by the board to support employees, but an intricate dance with the insurance company.

[michaelwyland]

Wade:

I’m surprised you’d need access after dissolution. I chaired a nonprofit board that dissolved nine years ago, and I dropped off the records for long-term storage and eventual destruction (this vendor no longer provides the service!). I was never contacted to access records, even though it was a statewide organization with all Federal funding.

Thanks!

[michaelwyland]

Mark:

Thanks! I hadn’t considered digitizing the records. If successful, I could store the electronic files and one remaining agency laptop myself. I’d probably need to get guidance from the state AG’s office on whether electronic copies are sufficient to meet retention requirements.

There are no local vendors who provide long-term records retention services culminating in destruction. My consulting partner thinks this means there’s a business opportunity for us, but I’m not so sure.