Nonprofits are Overlooking Messaging Opportunities in Digital Marketing Strategies

According to a recent study, smaller nonprofits are largely missing opportunities to share their message online. While budgeting is certainly an issue, the benefits of online marketing and an online presence for nonprofits can’t be overstated. Below is a quick guide to various means of digital marketing and why they’re vital for nonprofit organizations.

Email Marketing for Nonprofits

Looking to increase newsletter subscribers, launch a fundraising campaign, keep supporters and volunteers in the know, or share recent developments? Email is one of the most effective, direct, and inexpensive ways to accomplish all this and more. The key is to capture your reader with engaging content, both in words and images, and always end your emails with a call to action, inviting the reader to reach out to your organization. Consider someone on staff who has the writing chops to accomplish this task, or think about hiring a freelance writer. Aim for sending two-four emails a month.

Your Website

In addition to having a website that is straightforward and easy to navigate, you want it to function as a tool that maximizes lead generation and gift revenue in ways that email can’t. For instance, adding pop-ups to your site can help gain newsletter subscriptions as well as collect contact information for potential donors.

Social Media

Establishing a presence on social media and engaging with your audience on individual platforms are no-brainer ways to share your organization’s purpose, campaign materials, involvement in the community, etc. A social media manager on staff could prove to be invaluable. Be sure to add social sharing buttons to your website and emails in order to grow an organic following. Greater outreach equals donations.

Donation Pages

The key with donation pages is simplicity, so cut the lengthy information and instructions. You want to encourage two main actions with your donation page:

  • Give donors a clear path to give to your organization
  • Make sharing the page with friends, family members, and social media networks easy

You will also want to include a recurring donation option for those who prefer to contribute smaller amounts on a monthly basis. This donation approach can be beneficial to both the donor and your organization because:

  • Donors aren’t likely to notice or take issue with a recurring $5 or $10 out of their monthly budget for a cause they’re drawn to, but your organization will appreciate these monthly contributions as every dollar adds up.
  • Recurring donations create long-term connections between supporters and your organization.

Content

If your organization can establish a position of having a finger on the pulse of current news, knowledge, and facts surrounding its particular cause, donors who share an interest with your cause are going to want to support you, and feel confident doing so. In order to achieve this, you will want to create regular and quality content in the form of informative articles, fact sheets, and other applicable digital resources, all of which convey not just that your organization is a top source of information about your particular cause, but how it’s impacting and changing your community and even beyond.

Gratitude for Supporters

Organizations that recognize the patronage and loyalty of their supporters are more likely to receive follow-up donations and social media mentions than those that fail to acknowledge their supporters, or do so intermittently. This fix can be as simple as creating an automated but personal email response to each donor, professing thanks and gratitude on behalf of the organization.

 

Generating more organic traffic and engagement on your website and across social media platforms will set your organization on a path for long-term growth and success.

2021 Tax Planning for Construction Firms

Last year construction contractors saw projects suspended indefinitely (or scrapped altogether) and escalated competition in the bidding process, both of which effectively stifled profit margins. It’s safe to say that the construction industry was not spared the upheaval of 2020. After such a tumultuous year, tax planning for 2021 might seem like a daunting challenge, but it’s a critical step for construction contractors in preparation of the year ahead.

Essential Tax Provisions for 2021 Preparation

With the uncertainty of the Covid-19 pandemic and a transfer of administrations in the White House this year, new legislation affecting tax provisions is a possibility, but there are several provisions under the current tax law, including those put in place under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, that you want to be sure not to pass over.

Bonus Depreciation

Are you eligible to use the bonus depreciation this year? Changes have been made to qualifying property under both the Tax Cuts and Jobs Act (TCJA) and the CARES Act as follows:

  • TCJA: expanded the bonus depreciation deduction to 100% for specified property obtained and placed in service after Sept. 27, 2017, and before Jan. 1, 2023.
  • CARES Act: authorized the qualified improvement property (QIP)—typically interior improvements to nonresidential property—to be depreciable over 15 years and eligible for 100% bonus depreciation.

Tax Credits and Deductions

These tax credits and deductions could aid in reducing tax liability for contractors:

  • Research and development credits: contractors who test new techniques or processes on construction jobs could be eligible.
  • Deduction for energy-efficient government buildings: contractors may be eligible for a deduction of up to $1.80 per square foot for building energy-efficient commercial buildings intended for federal, state or local governments.
  • Credit for energy-efficient residential properties: Contractors can take advantage of tax credits for certain energy-efficient residential properties.

Note that the deduction and credit for energy-efficient buildings expire at the end of 2021.

Qualified Business Income Deduction

The TCJA replaced the 9% “domestic production activities deduction” under IRC Section 199 with a 20% Qualified Business Income deduction under IRC Section 199A. It also increased eligibility to encompass more businesses. Contractors might want to start the conversation with their tax advisor on how to maximize this deduction as well as receive guidance on how to maneuver through the calculation’s somewhat complicated rules and limits.

Flexibility with Accounting Methods

Smaller construction firms (meaning those with average gross receipts of less than $26 million from the prior three years) generally enjoy more flexibility with tax accounting methods. Such firms could be eligible to use cash, accrual, completed contract or “accrual less retainage” accounting methods, all of which usually aid in managing the timing of revenue recognition. This allows companies to stimulate revenue to counterbalance current losses and recognize revenue now in expectation of higher future tax rates.

Additional Tax Planning Considerations Amid the Pandemic

To help minimize the risks of ongoing economic uncertainty, contractors should consider keeping apprised of tax changes. Given the seemingly ever-changing legislation amid the pandemic, construction firms should keep in regular contact with their tax advisors in order to avoid any tax reform surprises. However, contractors should also aim to operate without presumption of further legislation. While the economic effects of the pandemic are ongoing, don’t assume further stimulus legislation like the Paycheck Protection Program will be passed by Congress.

 

In light of a turbulent 2020, the construction industry has experienced a return to the business practices that have proven successful in the past: more attention to jobsite monitoring, legal contracts, and insurance costs. Contractors can contact an MKR advisor to incorporate 2021 tax planning into this process.

What’s Included in the Proposed Bipartisan $908 Billion Pandemic Relief Bill?

A group of centrist lawmakers recently revealed an economic relief bill totaling approximately $908 billion. The plan has gained some traction among both congressional Democrats and Senate Republicans, getting talks moving again after Democrats and Republicans have been unable to reach a compromise on a second relief package for months. Here’s a summary of what’s included in the proposal.

Business Aid

The largest chunk of the $908 billion bipartisan bill—$288 billion—is reserved for U.S. businesses, with a focus on primarily assisting small firms, most likely as another round of funding for the Paycheck Protection Program (PPP). This would allow businesses that have since depleted their PPP funding to apply for another round of payments. This time, however, businesses will most likely be required to prove considerable downturns in revenue in order to qualify for assistance. Part of the $288 billion would also likely include another round of Economic Injury Disaster Loans (EIDL), which provide smaller loan amounts than PPP.

Unemployment Aid

The next largest chunk of funding consists of $180 billion, which is dedicated to unemployment benefits for jobless Americans. The bipartisan plan proposes $300 per week to each American on unemployment on top of existing state unemployment benefits at least through March. This is half of the $600 per week that Congress approved in March (that expired in July), but in line with the $300 per week unemployment bonus that was approved in August (most of the funds allocated for that bonus expired in October). One question that has not been addressed is whether the unemployment benefits will be made retroactive to compensate for prior months without jobless benefits.

State and Local Funding

The relief bill offers $160 billion to state and local governments to assist them through the next several months without additional cuts to personnel or services. This has been one of the biggest sticking points in getting an additional relief bill passed as Congressional Republicans contest that that such aid is wasteful “bailouts”. As a condition for their support of the broader package, some Republican lawmakers are considering a compromise by looking to establish new boundaries on state and local funds.

Temporary Protection from Liability Lawsuits

The other big sticking point comes from Democratic opposition for the “liability shield” sought by the GOP. Senate Republicans have tried for months to give business entities immunity from coronavirus-related lawsuits. This bipartisan plan offers a temporary moratorium on COVID liability lawsuits, which would allow time for individual states to draft their own laws.

What’s Not Included?

The bipartisan plan markedly excludes a second round of $1,200 stimulus checks, a measure that has long been supported by congressional Democrats and President Trump. Congressional Republicans have been forthcoming on their resistance to spending more than $1 trillion on another stimulus package, and once unemployment assistance, aid to state and local governments, and small business relief is added up, it’s unfeasible to both include direct checks and keep the overall price-tag below $1 trillion. (Republican Senator Josh Hawley and Sen. Bernie Sanders have since teamed up to propose an amendment to this plan that would include direct stimulus checks to Americans.)

The plan also leaves out Republican-backed tax cuts, including Trump’s call for a payroll tax cut for firms, and Democrats’ push for bonuses to essential workers and health-care professionals. Also missing from the plan is a renewal of the federal moratorium on evictions that is set to expire at the end of the year.

The CARES ACT Makes 401(k) Withdrawals Easier, but Should You?

Customarily, retirement savings plans such as 401(k)s are tough to withdraw from before age 59.5 without accruing penalties and tax withholdings, but the CARES Act, which was passed by Congress in response to the economic hit caused by the Covid-19 pandemic, temporarily eliminated such penalties. Now that you can more easily access assets that have been set aside for future use, should you?

Amended Penalties for Early Withdrawal

Recognizing that many Americans who live paycheck to paycheck would need access to funds in the face of lost income as a result of government shutdowns, Congress passed the CARES Act, which temporarily eliminates the 10% early-withdrawal penalty and the 20% federal tax withholding on early 401(k) withdrawals. Taxes on any withdrawn funds will still be applicable because the original contributions were pre-tax, but whereas those taxes are typically due within the same year as the withdrawal, the CARES Act permits the amount due to be stretched over a period of three years.

Be Aware of Potential Penalties

It may seem as though the vault has been unlocked, but before you decide to take advantage of the easily accessible funds, you should consider the potential ramifications of such a move. If the amount withdrawn isn’t returned within the three-year window (either in one lump sum or in multiple payments over three years), you will be responsible for paying income tax on the withdrawal. This could be a significant amount depending on the size of the withdrawal. It’s also worth remembering that for the amount of time the funds are out of your retirement savings, they discontinue making returns on your investment, which could result in potentially long-term consequences, including compound tax deferred growth benefits.

Remember the End Goal

If you are struggling in today’s economic downturn, the laxed rules and penalties to access retirement funds is tempting, but it’s important to keep the end goal in sight, which is retirement. The long-term impact to your savings, even when it’s paid back over time, may not be worth it. Unless you’re really struggling to make ends meet, the best move is to leave the money in your 401(k). Cashing out now, when the market reflects depressed values, means that you’d be selling low, which isn’t a recommended strategy.

Establishing Long-Term, Sustainable Revenue for Your Business

Experiencing business growth is always exciting for an entrepreneur, but periods of growth aren’t always continuous given that every business has ups and downs. Implement growth strategies with the tips below to help your business become more sustainably profitable over time.

Define the Purpose of Your Business

A clear purpose propels growth, profit, and sustainable success, but business owners must regularly review their objectives to be sure that they’re still serving the company in an authentic way. Does your purpose still prompt strong engagement within the company as well as with clients? Does it still lend itself to focus, drive, and innovation? A genuine and straightforward vision helps both entrepreneurs and team members to create valuable and original products and services.

Maximize Operational Efficiency

Delegate, delegate, delegate. Transferring tasks and projects to qualified employees saves you time by removing the burden of smaller duties from your proverbial plate, which allows you to focus on larger aspects of running a business. Relinquishing some of this control also allows you to move into a business leadership and visionary position at a macro level rather than spinning your wheels at the micro level just to keep the business afloat.

Build Your Brand

Your business can grow by leaps and bounds when you develop a reputable and reliable brand. A well-considered brand will help you stand out among competitors and stay fresh in the minds of both new and potential customers. However much of your budget you can allot to marketing, make sure you pin point your target audience, connect with your audience in an authentic way, and keep your messaging concise, simple, and inspiring.

Cultivate Customer Loyalty

A vital factor of business growth and sustainability is your company’s ability to keep repeat customers. Not only does establishing client loyalty help to bolster sales, it also spurs word-of-mouth testimonies that will bring in more business. Be sure to implement expectations within your hiring, training, and review processes that will strengthen your company’s relationship with customers. Keeping in touch with clients and asking their opinions will also help to ensure repeat business.

Be Attentive to Budgeting

Maintaining a budget keeps unnecessary expenses at bay and necessary expenses within financial means. Additionally, acute awareness of your company’s funds means that you know how much can be spent on marketing, technology, new product, new hires, etc. in any quarter or season. Let your budget slip and you risk delving into debt, which will only slow the long-term growth of your business.

Embrace Change

Businesses can grow under the guidance of flexible and adaptive leaders who are willing to embrace new methods and processes, new technology, new industry standards, etc. All businesses unavoidably experience seasons of growing pains, but how you as an entrepreneur approach those seasons makes all the difference. You can continue to do the things the way you’ve always done them and risk a stagnant business, or you can embrace change and move your business forward.