Written by Nicole Possehl, CPA and Nonprofit Assurance Manager, BerganKDV and Anna Marie’s Alliance Board Member.
It’s the time of year when charitable giving is at it’s highest. The holidays are upon us, and end-of-year giving is in full swing. This year, you might consider giving the gift of peace to women who have survived domestic violence and their children.
Donors are looking to make the most of their gifts, and to see those dollars put to good use.
How Nonprofits are Funded
Nonprofits can receive donations, grants, and other types of revenue from multiple sources. Here are a just a few:
- Program revenue is received when a nonprofit charges fees for services they provide. This type of revenue must be directly related to a program that furthers the organization’s mission. For example, a nonprofit may have a program that includes educating the public, so they charge a fee for any classes or trainings held. Generally, these fees are only a small percentage of the cost to provide the program.
- Federal or state grants, when received, typically come with strict rules on how dollars can be used and have heavy reporting requirements.
- Local grants and donations come from private charitable funds, foundations, and corporations, and can either be given with donor restrictions or without restrictions.
- Restricted donations: When a donation is received with a restriction, the nonprofit can only use the money for the purpose the donor chooses. For example, at Anna Marie’s Alliance, we may get a donation that is restricted to the Pet Safe Home or for the children’s program. Another example is for our most recent capital campaign – donors who gave to that specific campaign know that their money went to help with our shelter remodel.
- Unrestricted donations: these are donations that come in with no stipulations as to when or what funds can be spent on. These donations are so important to all nonprofits. Unrestricted donations allow us to have flexibility in responding to the needs of the community, meet the most pressing needs, and sustain our operations.
Give the Gift of Peace This Year
For Anna Marie’s Alliance, every dollar we receive allows us to further our mission — to help all who are affected by domestic abuse. As you probably know, domestic violence is not a small problem, nor is it one that is easily solved.
At Anna Marie’s Alliance, we work to reduce violence in our communities via various avenues; our shelter provides emergency housing for women and kids experiencing violence at home. The programming we provide outside of the shelter is aimed at prevention — stopping violence before it starts by providing information and outreach services, especially to area youth. This grassroots-level approach is, we believe, the only way to get at the root of the issue and create communities where violence is not tolerated.
During the holiday season, as we gather with our families and loved ones, it’s the perfect time to reflect on what we can do for those whose homes are anything but peaceful and bright. Your gifts to Anna Marie’s go directly to work, changing lives and creating hope for happy futures.
Donate today at annamaries.org/donate.
Nicole Possehl
CPA and Nonprofit Assurance Manager at BerganKDV
Nicole is a CPA and Nonprofit Assurance Manager at BerganKDV. She’s served on Anna Marie’s Alliance’s Board of Directors for the past nine years, guiding the organization with her expertise and her passion for what we do.