How Your DAO Can Build Relationships With Nonprofits
Nonprofits can be challenging to understand; their structures are unique, and their processes foreign … but come on, you’re a DAO! Here’s a quick guide to engaging nonprofits and supporting causes close to your group’s heart.
First things first, what is a nonprofit?
Nonprofit, not-for-profit, NGO, charity – they’re all in the same bucket. It’s a group recognized by a respective government that performs a public good. In exchange, they get tax-exempt status, can fundraise, and in most cases, their donors get tax deductions for gifts.
In response to emergencies, you may see individuals or informal groups fundraise for their cause: think a GoFundMe effort after a wildfire or the war in Ukraine. In some instances, their lack of government oversight means faster results but can land the fundraiser in a tight spot; a Court in Australia recently forced an online campaign to give the full $51M raised to a single nonprofit, despite it being in response to a nationwide crisis.
Review the Nonprofit Online
In the US, crypto groups should always check the status of a nonprofit by visiting sites like Charity Watch, Charity Navigator, and GuideStar. You’ll find transparency on things spanning program expenses to executive salaries. Charity Navigator has a particularly effective scoring system. If you want a deep dive, our partner, The Life You Can Save, evaluates the efficacy and impact of nonprofits in the global poverty sector.
Who’s Who? Nonprofit Teams and Titles
The executive suite is similar to for-profit businesses, with a CEO or Executive Director, CFO, and Marketing Lead. Depending on the size of an organization, it may have a General Counsel too. Unlike their money-making counterparts, nonprofits employ Development Teams, often led by a Chief Development Officer, VP, or Director of Development (at universities, it’s called Advancement). Development runs all things fundraising.
For larger organizations, it’s common to see the function broken down further; a Major Gifts Officer may liaise exclusively with high-wealth donors, whereas the Digital Fundraiser looks after the website and online giving.
Options to Engage: Directly v.s. Indirectly
Nonprofits will be curious about the project and want to chat, often in real life. What’s the phone number for your DAO again? If you want to engage and have an impact, be open to emailing back and forth; expect tons of questions (and excitement!).
Alternatively, you might find it easiest to engage a nonprofit platform or consultant to help cross the void. We’ve held hands as groups navigate the nonprofit space and are happy to help if you need it.
After the Gift, Nonprofits Want to Say Thanks!
Stewardship is the name of the nonprofit game. It’s how they take a one-time donor to a long-term advocate for their mission. When you give to a nonprofit, they will reach out and are disappointed when they can’t connect. Don’t expect them to hit you up on Discord; they work on email, so if you’re going to donate, consider including a point of contact. We’ve heard of some pretty nice thank-yous: a free tour of a zoo, time with animals and their handlers–perhaps you could drop past en route to the next Ape Fest.
Image sourced from Simone Secci
