As the leader of a nonprofit organization, you have no shortage of responsibilities on your plate. Whether helping to structure your teams, establish new organizational processes, or continuously drive your nonprofit's vision, it can be challenging to stay on top of it all.
When juggling all of these responsibilities, the idea of fundraising can sometimes feel like a daunting task. Do you struggle when thinking about how to approach new donors? Are you finding that your fundraising efforts have become less effective over the years? If so, you're not alone.
Below we'll address some common fundraising mistakes that you may be making and progressive steps you can take to improve your nonprofit's financial position.
Not Fostering Relationships With Current Donors
One of the first questions you should ask yourself when assessing the effectiveness of your fundraising strategy is, "how is your relationship with your current donors?"
While this may seem like an easy question (I mean, they've already donated funds to the organization, so how bad could the relationship be – right?), you'd be surprised how often nonprofit organizations can get this wrong. Not unlike any other personal relationship, fostering the right relationships with your donors takes time, consideration, and good communication regardless of their contribution.
Your current donors are one of the most dependable sources of revenue your organization has. Fostering your long-term relationships helps ensure they continue to feel inspired about what the organization supports and the individual(s) leading it. Stay in touch with them often, help them feel involved where applicable, and of course, appreciate them regularly for any gifts or contributions they make. Doing so will go a long way in any of your future fundraising efforts.
Lack of a Documented Fund Development Plan and Process
Fundraising for your nonprofit isn't something that you can execute on a whim without careful planning. Effective fundraising is an art form and can take several years to master. However, by taking a systematic approach to organizing and documenting a fund development plan, you'll be much better positioned to bring in new donors and keep your revenue streams flowing.
One way you can start building a fund development plan "the right way" is by teaming up with a nonprofit strategic planning consultant. Planning consultants take the time to understand your unique needs as a nonprofit while giving you the tools, solutions, and organizational direction to help you succeed in your fundraising efforts. Not only do strategic planning consultants help you draft a long-term plan for success, but they also help you implement the suitable systems and procedures to help you get there.
Failing To Explain The "Why" In Your Organization
Having a clear vision for your nonprofit organization and being able to clearly articulate it to new donors is the winning combination when raising funds.
Maybe you've gone through a few rounds of fundraising and saw a measure of success. But, over time, you're finding it harder and harder to attract new donors. Why is this the case?
Well, while there could be several variables to consider in your outreach strategy, one thing you'll want to ensure is that you're always explaining the "why" behind your fundraising efforts.
One way to do this is by ensuring that you have an effective strategic plan to justify your “why”. In fact, in research that we conducted, we showed that having and executing your strategic plan is strongly correlated to significantly increased fundraising success.
It can be easy to fall into the trap of asking for donations without fully explaining how and why the funds are needed. While the purpose and vision may be clear to you, donors need to know that the resources they're providing will be put to good use. One way this can be achieved is by creating a theme around fundraising initiatives. Before the launch of a campaign, ensure your funding goals are clearly documented and that they remain transparent to both current and future donor candidates.
Not Diversifying Your Funding Resources
While it can feel a bit intimidating to look for new funding sources, only relying on your current list of donors is a risky and ultimately unsustainable approach. To create a more viable fundraising strategy, it's vital that you start expanding your reach beyond your current network.
One way to start diversifying your funding resources is by investing more time into establishing and updating your social media presence. Social media sites like Linkedin and Facebook are great outlets to start expanding your network. But to start attracting qualified donors to your nonprofit organization, you must showcase the vital work you're doing. Spending time to build your social media presence and participate in more relevant events and conferences are some of the many steps you can take to start building credibility in your fundraising efforts.
Having No Specific Funding Asks
So this one happens more than you'd think...
You've taken the time to engage with a qualified potential donor. After several weeks of getting to know the individual, describing the organization's vision, and sharing relevant documentation, it's now time to make the ask. But rather than proposing a specific donation amount, you leave it to the donor to decide if and what they'd like to contribute.
Now, while this approach may be a discreet way to discuss (or not discuss) financial capacities between one donor to the next, more than not, this is an ineffective way to raise enough funds for your organization.
A better way to engage with potential donors is by having a specific ask in mind. But in order to know an appropriate amount to ask for, thoroughly researching your donors and finding those in alignment with your funding goals is essential. By approaching a potential donor with a specific ask in mind, it will actually showcase the confidence in your vision that many donors are looking for, and you'll be surprised at how much more successful you'll be.
Final Thoughts
If you've been struggling when finding the right approach for your fundraising efforts, understand you're not alone with this dilemma. However, by avoiding these common fundraising pitfalls and working with the right nonprofit strategic planning consultants to simplify your fundraising efforts, you'll be on your way to building long-term viability for your nonprofit organization.