PROVIDENCE – More money being contributed to local nonprofits is always the annual goal for 401Gives Day, and this coming April 1 will be no different.
But increased funds raised won’t be the only goal for participating organizations this year. Nonprofits are also hoping to see more people contribute to their causes as well.
The annual online giving initiative led by the United Way of Rhode Island Inc., and now directly overseen by the nonprofit’s new
Alliance for Nonprofit Impact, once again looks to break through that $4.01 million fundraising mark
it originally set a couple years ago to help participating nonprofits statewide. Last year, 401Gives Day – which was held
over a weekend for the first time –
raised a record $3.5 million for 546 nonprofits from a record 15,216 individual donors.
So far, the 2024 401Gives Day is off to a record start. Five hundred-ninety two nonprofits have signed up to seek donations on 401Gives Day as of March 15, including 107 new organizations, Caitlynn Douglas, the alliance’s engagement manager, told Providence Business News.
Douglas also said this year’s 401Gives Day will accept donations starting 6 a.m. on April 1 through 6 p.m. April 2, giving donors an additional 12 hours to contribute to their favorite causes. Donors can contribute via
the 401Gives Day website.
She said after doing a weekend edition last year, the United Way received feedback that a lot of micro, or small, organizations were burdened with the extended time period due to them having limited capacity to operate its giving initiatives for that long.
However, some organizations, after having brief reflection, chose to have another 401Gives Day beyond 24 hours because it was worth it in the end, Douglas said.
“There were a lot of people who reflected a second time and said 'you know what, as much work as it was, we did bring in more donors and did get a chance to reconnect with people. We did get a chance to go outside of our normal scope,'" Douglas said.
Plus, the United Way wanted to include a "business day effect" for this year’s 401Gives Day, Douglas said, where people could access the giving platform more easily while sitting at their computers at work and nonprofits are in their normal operation during the week.
Both Douglas and Nancy Wolanski, the alliance’s director, are also slightly shifting 401Gives Day’s focus in bringing in and connecting new donors to nonprofits as a way to bring in more money for organizations. Wolanski said that people both locally and across the country are still willing to contribute to causes that are dear to them, but the amount they’re giving has decreased mainly due to inflation concerns.
“Overall, the giving environment isn’t as strong as what it was pre-pandemic because of the constraints of the economy,” Wolanski said.
Wolanski also said decreased donation amounts is why organizations locally are advocating the federal government to reinstate the universal charitable tax deduction to offer people more incentive to give to nonprofits.
The United Way, itself, has seen changes over the last few years regarding incoming monetary support. United Way CEO and President Cortney Nicolato told PBN that the organization continues to see growth in individual corporation and foundation fundraising, but federal government-funded matters have dwindled.
Case in point, the United Way’s revenue has dropped from $45.9 million in 2021 to $22 million last year. Nicolato said the high revenue three years ago was an anomaly because the organization received both COVID-19 federal support and
a $10 million gift from philanthropist MacKenzie Scott that year.
Douglas said if the alliance and fellow nonprofits work on introducing new donors to new organizations, that will be a “tipping point” for 401Gives Day going forward. A larger donor base could lead to more money coming in for nonprofits.
“When an organization brings in their entire donor base with them, they can exchange their monetary amounts with other organizations,” Douglas said. “It’s not everyone is fighting for one grant pool. Everyone is bringing money to the table and who can go where with what.”
Douglas said the alliance has done numerous 401Gives Day trainings for nonprofits, such as social media training, how organizations can share their story to the public to help seek contributions, ways to do peer-to-peer fundraising and hearing from other nonprofits that did succeed in raising funds in past 401Gives Days.
Per usual, this year’s 401Gives Day will have various prizes nonprofits can earn based on how much they earn over the day. The event will start with a $25,000 matching grant from Rhode Island Foundation once the first $25,000 is raised on the day. The event will also have the Papitto Opportunity Connection contribute $20,000 for local organizations through small matching grants.
Also, 401Gives Day will reintroduce the $20 match and retry a new version of a $25 match. Every gift that comes in, Douglas said, it will be matched by $20 or $25.
“This is a way we’re igniting that new donor stewardship or lower-level donors,” Douglas said. “Someone could give $5 but that could turn into a $25 or $30. So, they’re more encouraged to meet new organizations and try out causal areas.”
Some gifts for nonprofits this year will also include goods and services, such as photography services and media package services that nonprofits have trouble accessing due to budget restrictions, Douglas said.
Monetary giving will not just stop at 6 p.m. on April 2. The alliance is currently building a new platform that will allow small nonprofits that don’t have their own online giving platforms to raise funds year-round. Wolanski said about 20% of the alliance’s member organizations – approximately 175 nonprofits – say they can’t raise money digitally outside of 401Gives Day, and this new platform will help that.
Wolanski said that 401Gives Day will still have strength even with the year-round platform mainly because of the special offers and events the April 1 initiative provides.
Douglas says she’s optimistic that this year’s 401Gives Day could finally break through that sought-after $4.01 million goal, as well as setting a new record in donors contributing to causes.
“If we could get that 27,000-donor mark that we’d love to hit, that’s what we’re searching for,” she said. “No matter what money comes it, it was money that wasn’t there before, and that’s what we need.”
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on Twitter at @James_Bessette.
