Tag Archive for: fundraising

How Fundraisers and Accountants can Better Communicate

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The relationship between fundraisers and accountants in a nonprofit organization can be challenging. Fundraising and accounting departments provide vital services to the organization, but when they fail to communicate, it can lead to financial errors. Bridging this communication gap can help your organization ensure every dollar raised is used effectively.

In this article, we’ll cover the relationship between fundraisers and accountants, how each contributes to the organization, and why communication gaps exist. 

We’ll also look at the most effective strategies for improving communications and how technology can help bridge the gap.

communication

The Connection Between Fundraisers and Accountants

Both fundraisers and accountants play key roles in a nonprofit:

  • Fundraisers: Drive donations, build donor relationships, and organize events that support the organization
  • Accountants: Manage finances, ensure compliance, and maintain budgets

The fundraising department’s primary goal in a nonprofit is to bring in the necessary funds to support the organization’s mission. Accountants work to safeguard the financial health of the nonprofit by keeping detailed records and ensuring that funds are used appropriately.

For a nonprofit to thrive, these two departments have to work together. 

Fundraising is most impactful when paired with the proper management and allocation of those funds. When fundraisers and accountants collaborate effectively, they can maximize resources to drive the organization’s mission forward.

The Gap in Communication Between Fundraisers and Accountants

Lack of communication between fundraising and accounting departments is a common issue for nonprofits. Several factors can lead to communication gaps between fundraisers and accountants, including:

  • Differences in terminology and jargon: Each team uses language specific to their field, leading to misunderstandings.
  • Misaligned goals and priorities: Fundraisers focus on securing funds quickly, while accountants prioritize accurate recording and management.
  • Timing and urgency of information needs: The difference between when a team needs information can cause delays in gathering and reporting accurate financial data.
  • Lack of regular communication channels: Teams can miss details or misinterpret information due to a lack of open and consistent communication channels.

Strategies for Better Communication Between Fundraisers and Accountants

Fundraising and accounting teams can help bridge the gaps in communication by implementing a series of strategies, including:

  • Establishing clear communication channels
  • Aligning goals and objectives
  • Sharing transparent financial reports
  • Fostering a culture of open dialogue and feedback

1. Establish Clear Communication Channels

Without clear communication channels, your fundraising and accounting teams will never be able to collaborate effectively. Defined communication channels make it easy for fundraisers and accountants to share information before making decisions.

A few ways to establish these channels include:

  • Set up times for regular meetings and check-ins between fundraisers and accountants.
  • Use collaborative tools and platforms–such as project management software–to modernize your nonprofit.
  • Create defined points of contact for specific issues or projects.

2. Align Goals and Objectives

It’s easiest for different departments to work together when they share similar goals and objectives. Regularly scheduled joint planning sessions can help align each team’s activities with the overall goals of the nonprofit.

During these meetings, both teams can discuss upcoming fundraising campaigns, budget needs, and financial constraints to ensure everyone is on the same page. A collaborative approach reduces misunderstandings and ensures that fundraising efforts are supported by the accounting team.

Fundraising and accounting teams should also set shared objectives and nonprofit KPIs to measure success together. Working toward the same targets means accounting and fundraising teams will need to regularly check in with one another to meet shared goals. This not only improves collaboration and communication, but it can also improve the overall effectiveness of the nonprofit.

Pro Tip: In our experience, the biggest goal conflict is around the total fundraising goal. It’s important for the nonprofit’s leadership to define what the fundraising goal is. Specifically, whether the goal is on a cash-basis, “money in the door”, or aligned with how accounting has to reflect the figures in their financial reports – typically an accrual basis.

3. Transparent Financial Reporting

Accountants provide a variety of financial reports for the board of directors and other stakeholders.

The accounting team needs to make sure that the financial reports provided to fundraisers are clear and easy to understand. Simplifying complex financial data allows fundraisers to grasp the organization’s financial health and make informed decisions.

Additionally, accountants should communicate the financial impact of fundraising activities with the fundraising team. For example, accountants can explain how specific campaigns affect the budget and cash flow of the organization. This transparency helps fundraisers see the broader financial picture and plan their efforts more effectively.

4. Encourage Feedback and Open Dialogue

It’s important to remember that both the fundraising and accounting teams are essential parts of your nonprofit organization. Aim to foster an environment where both fundraisers and accountants feel comfortable sharing their insights and concerns. Encouraging open and effective communication helps identify potential issues early and promotes mutual understanding between teams.

You should also actively seek feedback from both teams through regular check-ins. Promoting ongoing dialogue makes it easier to address challenges promptly and proactively. An open line of communication helps both teams feel heard and valued in the decision-making process.

Tools and Tech Can Help Bridge the Gap, Too

You can use a variety of technology tools to help improve communication between your accounting and fundraising teams. Common technology tools for nonprofits include:

  • CRM Systems and Financial Software: A CRM system makes it easy to track donor interactions while financial software helps teams manage budgets and transactions to give a comprehensive view of fundraising efforts.
  • Collaboration Tools: Collaboration tools like Slack or Microsoft Teams facilitate real-time communication between fundraisers and accountants to streamline discussions, share updates, and resolve issues.
  • Reporting and Analytics Platforms: Leverage reporting tools to generate visually appealing fundraising and financial reports that help track KPIs and make informed decisions.

communication

Work With Accountants Who Communicate with Fundraisers Well

Effective communication between fundraisers and accountants can help your nonprofit avoid costly mistakes and miscommunications. Implementing the strategies discussed in this article will help your organization effectively bridge the gap between fundraising and accounting teams.

Looking for an accountant who knows how to work with fundraisers? The Charity CFO offers a wide range of accounting and financial management services for nonprofits. We know how to effectively communicate with fundraisers so your nonprofit can better meet goals and objectives.

Contact us today to get started.

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How to work with your donor’s financial advisors to create the greatest impact.

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On this week’s episode of A Modern Nonprofit Podcast, CEO Tosha Anderson invites David Foster,  CFP®, CAP® as her guest. David Foster is a financial advisor at Gateway Wealth Management of our client.

David speaks about, “How to work with your donor’s financial advisors to create the greatest impact”. He gives advice to listeners on should development officers ask for specific dollar amounts why or why not? He also hits on whether or not development officers should be afraid to ask about planned giving and how to be direct when asking about planned giving? Should you ignore your donor’s team of professionals, CPAs, Attorneys, Financial Advisors, when asking for large gifts? Or should you offer to reach out and get to know your donor’s professional advisors? You may think that getting a donor’s professional advisors involved will increase the time you spend and reduce the size of the gift you ultimately “bring in.” What are the three reasons the opposite is true?

These are just a few questions David answers, this episode is an interesting conversation with to experts in their fields.

This episode is a must listen.

Follow David’s career and reach out for any help with all nonprofit donor questions and more.

Here is how to get in contact with David Foster.

Website: gatewaywealthstl.com

Click on Talk with David

Email: [email protected]

Phone: 314-349-2711

The most effective ways to expand visibility and maintain funding in your business.

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On this week’s episode of A Modern Nonprofit Podcast, CEO Tosha Anderson invites Eric Ressler as her guest. Eric Ressler is the Founder and Creative Director at Cosmic, A Social Impact Creative Agency. Eric Ressler expresses his opinions and expertise about, “The most effective ways to expand visibility and maintain funding in your business.” Why do so many social impact organizations struggle to find, grow, and maintain funding? Eric breaks this question down and gives listeners tips to implement in your own processes. What does the future of social impact fundraising look like? Eric goes into the importance of your digital footprint and doing it in an authentic way. We cover why does social impact organizations invest in their digital strategy and platforms? We also hit on why should social impact organizations concern themselves with their brand when it seems like there are more important things to focus on? Finally why is the overhead percentage the wrong metric for assessing a social impact organization’s effectiveness? This episode is a wonderful conversation and a must listen.

Reach out to Eric Ressler @ [email protected]

Website: designbycosmic.com

Nonprofit Fundraising Strategies: Tips for Running an Effective Campaign

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Are you looking to raise more money for your nonprofit and bolster your fundraising strategies?

When you run a nonprofit, knowing how to get money from your supporters should consist of one of your chief goals. Many nonprofits become born out of care for certain needs in the world, yet they can’t exist without a solid marketing plan. You need effective fundraising strategies to get the money you need to continue your initiatives and keep your talent.

So, how do you go about getting the proper funding? We’ll go into nonprofit fundraising strategies below. Keep reading to bring in more money for your cause today!

1. Use a Professional Mass Email Service

You may have a great mission, but you won’t attract many donations if your emails don’t look professional. Even if you run a small nonprofit, professionalism inspires confidence in you and your organization.

In turn, this prompts less hesitation about giving. When people believe you operate in a professional manner, they may trust you with more of their funds.

But how do you ensure your emails maintain a professional appearance? Get a mass email service. These platforms allow you to store your contacts’ information and even provide templates you can edit with your own text. This gives your emails a professional look.

2. Use More Than One Platform

If you just advertise your cause via email, you likely aren’t getting the most money you can. Instead, you should seek to get funds from other platforms as well.

You should start out by having a donation page on your website. Make sure people can navigate to this page from any other page on your site. Your donors should have the ability to find it without much effort.

You can also put donation buttons on each of your blog posts or news updates. This encourages people to give to causes after reading about them.

Some people even advertise their causes on social media. To do this, create posts targeted to raising money for specific causes and include links to donate.

3. Create Nonprofit Fundraising Strategies

You shouldn’t create random fundraising opportunities. Instead, fundraising works best when it gets planned out in detail. As such, you should dedicate much of your marketing endeavors toward creating nonprofit fundraising strategies that work for you.

How do you customize your own strategies? A lot of it involves doing research on how well different types of strategies work with your donor base. Any time you try something new, make sure you look at how well people received your new endeavor by viewing your analytics. The best working attempts will result in more donations, shares, or donor interactions.

Then, once you have an idea of what works well, incorporate it into your fundraising strategy.

4. Plan Out Fundraising Campaigns

Fundraising campaigns should comprise a lot of your fundraising strategy.

But what is a fundraising campaign? Think of them as a multi-component attempt to raise money for a specific cause. Fundraising campaigns harness the power of sending email messages to highlight your mission and the initiatives you want your donor base to give to.

For these, you shouldn’t send out one message. Rather, plan out several that build upon each other and encourage your donors to give.

To get the best results, you should start out with a soft launch of your campaign. These launches target only your committed donors. Ask them for feedback on the campaign and pay attention to the issues they raise. Then, you should implement these changes to your campaign before you send it to the rest of your email list.

You should also create thank you notes to send out to people who donate!

5. Know About Prime Fundraising Seasons

Did you know you can maximize your profits by launching campaigns at certain times of the year?

In particular, people like to give before the end of the year because they can claim their donations on their tax forms. Giving Tuesday kicks off this season. It lands on the Tuesday after Thanksgiving, when people follow Black Friday and Cyber Monday with an opportunity to give. You should always start your end-of-the-year campaign on Giving Tuesday.

Then, send messages throughout the month of December. Finish the campaign with a last chance message toward the end of the month, and then follow up with a thank you statement in January.

You can also run fundraising campaigns around holidays.

6. Use Specific Stories

People connect to stories. A well-told story pulls on the heartstrings of your audience and convinces them that they should spend their money giving to your cause.

The more specific the story, the better. Telling the story of one specific beneficiary of your services shows people the impact a donation to your organization can have. These stories also encourage people to put themselves in someone else’s shoes, encouraging empathy and furthering their dedication to your cause.

7. Get Reviewed by a Nonprofit Financial Organization

People want to make sure their money goes to the cause to which they intended to give. Most nonprofits manage their money well, but some don’t, and so it becomes important to have documentation to show how you spend your donations.

To do this, get reviewed by a nonprofit financial organization. These companies focus on reviewing the finances of nonprofit organizations and making this information public for any potential donors. Then, when potential donors contact you asking how you spend your donations, you can send them to the organization’s website so they can view the information for themselves.

This gives your donors confidence in your ability to handle money well and not use it for purposes other than your cause.

Need Nonprofit Financial Services?

Nonprofit fundraising strategies become the crux of many nonprofit organizations. They enable them to raise money for the different initiatives they run and help them keep their lights on.

But you shouldn’t just fundraise and not manage your money. If you need financial assistance for your nonprofit, we offer a full team of accountants who can help you manage the funds you receive. Request a meeting today!

Modern Fundraising: Community Centric Fundraising Movement

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Nonprofits host many of the same fundraisers time after time, year after year. But, these are all for good reason! Such efforts contribute towards the advancement of your organization’s mission as you strive to better your community. No one is shaming you for that! But, there are also several other factors that make up your fundraising strategy you may not be considering.

For example, have you considered (or are familiar with) Community-Centric Fundraising? Community-Centric Fundraising is a fundraising model that is grounded in equity and social justice. It believes in prioritizing the entire community over individual organizations, fostering a sense of belonging and interdependence, presenting work not as individual transactions but holistically, and encouraging mutual support between nonprofits.

It’s a movement led by Rachel D’Souza-Siebert, who is also a passionate advocate for collaboration, racial equity and community/movement-centered fundraising as her role at Gladiator suggests.

Because of her passion and expertise, Tosha Anderson of The Charity CFO knew Rachel was the ideal guest to invite on for a chat on the recurring and informational podcast series, A Modern Nonprofit Podcast. 

On this week’s episode, Tosha and Rachel discuss:

  • Values that shape decisions to work with clients, or to not work with clients!
  • How can nonprofits integrate community-centric fundraising into their orgs?
  • Barriers when trying to bring equity into the not-for-profit space?
  • Balancing between wants and needs when analyzing fundraising
  • And more!

LISTEN TO RACHEL AND TOSHA DISCUSS MODERN FUNDRAISING STRATEGIES ON A MODERN NONPROFIT PODCAST HERE! SUBSCRIBE FOR FUTURE EPISODES AND CONTENT! 

This is a great episode, one that anyone who wants to respect donors and build strong relationships with should not miss a single second of. That’s why you should also subscribe to our podcast for future episodes!

Rachel D’Souza-Siebert joins Tosha on this week’s episode of A Modern Nonprofit Podcast!

Lastly, interested in discussing fundraising, nonprofit management and more with other listeners and nonprofit leaders? Join us in A Modern Nonprofit Facebook Group, where these discussions are frequent and ongoing. Join hundreds of like-minded professionals today!

How to Raise Donations with Online Marketing, featuring Jeff Roman of EPIC Agency

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For years, nonprofit fundraising has been quietly evolving. Specifically, industry professionals have been watching as it moved further and further online. And in 2020, the COVID pandemic accelerated this process, ultimately changing your options as a not-for-profit leader to raise donations.

Jeff Roman of EPIC Agency is this week’s A Modern Nonprofit guest!

Such a drastic change has forced fundraising practices to transform into digital endeavors. That’s why Tosha Anderson, founder & CEO of The Charity CFO, invited Jeff Roman, founder & president of EPIC Agency onto A Modern Nonprofit Podcast. In this informative episode, the two cover topics like:

  • Why digital marketing is so important for nonprofits and their fundraising goals
  • How to maximize social media to help spread awareness about your organization
  • Understanding the power of social media, trending topics and hashtags for nonprofit social media channels
  • Tips new nonprofits can implement to help them achieve best brand
  • And more!

LISTEN TO JEFF ROMAN AND TOSHA ANDERSON DISCUSS ONLINE MARKETING FOR RAISING DONATIONS EPISODE HERE! 

For listeners of A Modern Nonprofit Podcast

Are you looking for a team of specialists who can deploy integrated solutions that seamlessly connect with your target audience, create world-class content to highlight your organization, strengthen and develop new revenue channels, help you increase platform visibility, sell your products and services, or promote a cause or mission well? If so, then you are in luck. EPIC Agency is here to serve you. If you’re interested, feel free to get in touch with one of their partners will contact you about beginning the proposal process. Make sure to check them out!

And for individuals looking for specialized, cost-efficient nonprofit bookkeeping and accounting services, look no further than Tosha Anderson of The Charity CFO. With more than 10 years of experience in the not-for-profit sector, Tosha knows what it takes to have financial thought leadership. So, stop working late nights and doing the books yourself. Get an expert team of certified public accountants to help you, all at a price you can afford.

Schedule a free consultation with Tosha to start your bookkeeping journey. 

Keep up with A Modern Nonprofit Podcast

Want to stay up to date with all the latest and greatest that A Modern Nonprofit Podcast has to offer? Make sure to subscribe to the podcast series so you don’t miss a beat. 

Also, if you’re not already part of A Modern Nonprofit Facebook Group, you don’t know what you’re missing out on. It’s a great community of nonprofit and industry leaders who converse in an open space that encourages collaboration and learning. Request to join here! 

What to Look for when Hiring a Fundraising Professional: A Modern Nonprofit Podcast

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Are you considering hiring a fundraising professional?

In fact, one of the most commonly searched questions within the nonprofit sector is: “What is the role of a chief development officer?”

The answer is simple: a chief development officer oversees the strategic development and fundraising success of an organization. Additionally, this position plays an important role within a not-for-profit organization. But, you may be wondering: is it time for my nonprofit to hire a chief development officer or a fundraising professional?

Thus, hiring a chief development officer might seem intimidating. You don’t know whether your nonprofit needs one, but you are looking for opportunities to increase fundraising and donor engagement. But, that is why you need to listen to the latest episode of A Modern Nonprofit Podcast.

LISTEN TO A MODERN NONPROFIT PODCAST EPISODE 4: WHAT TO LOOK FOR WHEN HIRING A FUNDRAISING PROFESSIONAL HERE.

What to Look for when Hiring a Fundraising Professional

In this episode of A Modern Nonprofit Podcast, Tosha Anderson of The Charity CFO sits down to chat with Linda B. Haley of Let’s Build Hope, an organization that teaches and mentors development professionals and nonprofits to raise more money through hands-on, real-world training and collaboration.

Tosha and Linda discuss:

  • Responsibilities of a fundraising professional
  • Duties of a chief development officer
  • Red flags in the development sector
  • How nonprofits can use social media, marketing and organizational development
  • Thinking strategically as a nonprofit
  • Connecting with donors
  • Tips within the development hiring process
  • Differences in nonprofit consulting services
  • And more!

It’s a great episode. If you want to learn more about having a presence, connecting with donors and making the most of your nonprofit organization, you must listen and subscribe.

LISTEN TO A MODERN NONPROFIT PODCAST EPISODE 4: WHAT TO LOOK FOR WHEN HIRING A FUNDRAISING PROFESSIONAL HERE.

Virtual Resources for Listeners

So, if want to learn more about Linda, or pick her brain, check out her website here. She offers mentoring and shares soft skills to help you make the most of your nonprofit. Additionally, if you want to partner with an expert accountant for charities, or if you are wondering if your budget has the bandwidth to take on another key leadership position, our team of skilled, certified public accountants is at your service. Let’s connect to help maximize your mission. Request a meeting with us here.

Also, join A Modern Nonprofit Facebook Group and subscribe to our YouTube channel to ensure your nonprofit can always operating at its best!

How to Create a Business Plan For Nonprofits

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Is it time to create a business plan for your nonprofit?

If so, you need to consider what your service is. You also need to consider what your goal is for your business.

When it comes to creating a nonprofit, you still need a business plan. You need something that is going to guide your nonprofit. You need something that is going to tell you what your goals are, what marketing strategies you need, who your target audience is, how to file taxes, and more.

A business plan for a nonprofit is absolutely essential because it will tell you how to start and succeed in your organization. It means you have a plan to help people.

Creating a business plan for your nonprofit is easy if you follow these steps!

However, in order to be a successful nonprofit, you need to know everything that goes into a business plan.

Here’s a guide on the specifics on how to create a business plan for a nonprofit.

Creating a Business Plan, but Research First

The first part of starting any business is doing your research. Part of your research is figuring out what kind of nonprofit you are going to be.

 

You’ll need to create a mission statement and figure out your nonprofit is going to be unique from others.

Along with your research, you should fill out nonprofit tax forms. You need to figure out how to file for tax-exempt status since you are operating as a nonprofit.

Another part of your research is seeing if you need limited liability protection. If you are a director or operator for a nonprofit, you don’t want to be liable for any debt accumulated by your nonprofit organization.

Your Executive Summary

Another part of a business plan is the executive summary. This is exactly what it sounds like, a summary of your entire business plan.

It’s what your nonprofit will be made up of. Your executive summary should include a mission statement, what your goals are, what your past history is, and what makes your nonprofit different from others.

It’s a full overview of everything you plan to do in your nonprofit.

What Your Program Is About

A business plan can also share what your beliefs are, specifically what your mission statement is.

It’s what makes you distinguished in your nonprofit. You are figuring out what you are working towards as an organization, what you are trying to help out in.

When you figure out what your purpose is as a nonprofit organization, it can help you clarify it in your business strategy. Your business plan discusses the ways you will promote and grow your nonprofit.

It should be a detailed plan on how you plan to help those in need, the community, or whatever your program is going to be doing.

Your Marketing Strategy

Another part of your business plan is your marketing strategy. This is how you plan to reach your target market and promote your nonprofit so you can find donors.

Your marketing strategy should be a detailed plan on how you plan to find and ask donors for funding.

When you create a marketing strategy that you have in your business plan, you need to make sure it’s very concise. For example, you want to make sure you know everything about your donors.

You want to know how you are going to target them on social media and why your posts should be relevant to them. You should also consider having a detailed email marketing strategy. When you do send out emails, you want to make sure that it resonates with your target market.

Finally, you need to consider if your website is up to date and is producing clicks and conversions. These are all elements you need to have in your business plan.

Financial Plan

Another critical part of a business plan for nonprofits is a financial plan. You want to makes sure that you know how much funding you need to make a profit.

You also need to know how much funding is required to get your nonprofit off the ground. This is where you may need to hire an accountant or someone who works with nonprofits on a financial plan.

A financial plan is important because it’s what makes or breaks your nonprofit. If you don’t receive enough funding, you don’t have enough to create fundraisers or events. You need a financial plan that is detailed and going to guide you when you figure out how much to spend on marketing, your employees, and creating events.

Your Organization Team

The final part of your business plan is your organization team. You want your plan to include who you are going to hire to help you with your nonprofit.

You may need employees for events, a marketing coordinator, an accountant, and other staff to help make your nonprofit successful.

You want to make sure you know who you are going to hire because it helps you stay on budget. You also know what roles are needed that are crucial to any nonprofit and the many functions there are in a nonprofit.

Now You Know Everything About Creating a Business Plan for a Nonprofit

Creating a business plan for a nonprofit is a lot of work, but it’s ultimately worth it. If you don’t create a plan and just want to wing it, there’s a much higher risk of failure.

With this guide, you now have a better idea of what it takes to create a business plan. You have an idea of what you need to get your nonprofit off the ground and give it the highest chance of success.

If you need help with your nonprofit business strategy, you can contact us here.

Preparing for a Not-for-Profit Audit: Episode 3 of A Modern Nonprofit Podcast

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Do I need to hire a CPA firm for my nonprofit? Why can’t my finance person just take care of and publish my not-for-profit finance statements? Preparing for a not-for-profit audit is not something you should fear.

Plus, these are complex questions that only an expert accountant for charities can answer.  There are a lot of standards to follow in finance! Unfortunately, these standards do not get any easier when you are asking if your nonprofit should seek an audit.

Preparing for a Not-For-Profit Audit

In fact, this is why Jeanne Dee, a partner at Anders CPAs + Advisors, was this week’s speaker on Episode 3 of A Modern Nonprofit Podcast. Tosha Anderson’s latest guest dove into the specifics of what a certified public accountant does. Additionally, Jeanne discusses the differences between a review versus an audit. LISTEN TO EP. 3: PREPARING FOR A NOT-FOR-PROFIT AUDIT WITH JEANNE DEE HERE. 

Sometimes, different states have different expectations when it comes to the audit of a nonprofit. Nonprofit finances has a lot of standards that you must know! Fortunately, Jeanne highlights the types of expenses, fundings, and risk assessment process for not-for-profits. Plus, Jeanne explains the difference between procedures and policies. This distinction is important for having a good business mindset. Also, good documenting, risk assessment, and succession plans are points that auditors will want to consider.

So, why do nonprofits need to have an audit? Sometimes, an audit is required. Other times, an audit can be a valuable tool to understand the qualitative aspects of an organization. An audit will help you dig deeper! You can become a stronger charity because of it. This consideration is discussed later in Episode 3. Further, the two leaders discuss common mistakes and nonprofit fundraising, too. It’s a great discussion you don’t want to miss!

Prepare for Your Charity’s Audit

Plus, there are many benefits to having an audit. So, if you are looking for a nonprofit certified public accountant, The Charity CFO’s team of expert accountants are ready to help you work through your books. Schedule a free strategy session with us today if your auditors have started asking for spreadsheets. Or, if you are ready to take control of your nonprofit bookkeeping, we are here to help.

Lastly, if you would like to learn more about internal and external accounts with respect to the different industries, check out Jeanne Dee’s information.

The conversation doesn’t end here. Join A Modern Nonprofit Facebook Group to learn from nonprofit leaders about best audit and accounting strategies.

 

 

7 Common Fundraising Mistakes to Avoid for Nonprofits

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Are you trying to build a strong foundation for your nonprofit? Well, it all begins with knowing the in and outs of the entire structure. In premise, the difference between a good and a bad nonprofit is the ability to avoid common fundraising mistakes. 

In this article, we will cover these 7 mistakes, so that you can build a project that’s truly exquisite. Read on to learn more. 

Building a successful project through fundraising is important to your organization’s success.

1. Untailored Messaging

When you’re talking to your supporters, a one-fits-all application does not work. You need to know what works for each target audience and hone your messaging for each segment of your donors. 

Segmenting your supporters into separate groups is critical to making sure that the right message is delivered to the right person at the right time. You can accomplish this by breaking down the entire collective into smaller sub-sections, such as big-donors, first-time donors, recurring-donors, event attendees, third-parties, etc.

You might even consider developing donor characteristics to help with driving action on their part. Once you have segmented your audience, it’s much easier to tailor content for each, thus build real relationships.

Stronger bonds = greater number of financial commitments. 

2. Not Talking About the “Why?”

Most of the nonprofit organizations spend too much time talking about how they will perform their work, rather than why they will do it. 

After all, you’ve adequately enough to create a solution to an important problem with dedication. But to get people to appreciate such efforts, you need them to provide context. Make them care. 

This means that you have spoken about the “why” before you even mention the “how. First, speak about the challenges you have addressed, then speak about how you solved them. This will spark genuine connections with you on the empathetic level which will help them to action. 

Don’t assume that your supporters know everything about you. Just because they’ve decided to donate, doesn’t mean they have an understanding of your work and its importance. 

Make use of the opportunity and give them the full story. 

3. Common Fundraising Mistakes: Wrong Relationships

If your relationships with the supporters are purely transactional, they will move on. If they are relational, they will continue to thrive and blossom. 

With the use of modern technologies, it can be very easy to bombard your sponsors with asks across all channels. Taking this unthoughtful approach to why and when you ask your sponsors for contributions will result in disconnection and donor fatigue.

4. High Expectations, Poor Outcomes

Do not set high expectations and then deliver poor outcomes. Consistency is critical to reputation. Be realistic, honest, and transparent about all of your efforts and outcomes. 

In terms of the marketplace, reach and services, be consistent when articulating their effect. Meet the expectations set by important stakeholders, and deliver exceptional services. 

Exceed all expected outcomes.

5. Lack of Financial Competency

A most important faculty of the nonprofit experience is financial competency. Many founders have not anticipated what it will truly cost to start the nonprofit, much less where to get the funds. 

Any nonprofit needs a funding plan, which will decide if it will charge fees for services, and an effective records system to micromanage all resources. A nonprofit with poor funding is very unlikely to sustain itself before even implementing a verbose fundraising structure.

And even that’s not enough. Financial competency is vividly important in a nonprofit, so don’t dismiss it. 

6. Ineffective Board

If there is one thing that could break or make your project, it might be the quality of your board. Your initial boar members must be your true circle of influence. They should be those who have the influence, resources, and contacts that can help this project grow. 

They should believe in the mission of the organization, and be willing to sell that mission to anybody else. They are the gate-keepers who should help to open doors for you.

And where do you find such people? Well, that depends on the mission behind the nonprofit. But it’s all about networking, so visit meetings, conventions, conferences, and anything else that might be pertinent to the problems that you are trying to solve.

7. Failing to Communicate

Using a single channel for communication is shortsighted. All of your supporters are different. They have different genders, ages, capacities, etc. This is why a variety of communication channels is important to appeal to different people.

You need to have multichannel network strategies that will allow you to effectively collaborate and converse with donors regularly.

Many of your supporters and donors will respond best on certain communication channels. Some might be completely blind to invitations, CTAs, or other asks shared on single channels. 

In order to avoid this, segment your donors on the basis of their preference for communication. Or simply reach out to them on a platform, if you’ve sent an invitation over email, reach out to them by phone afterward.

Accounting Services for Your Nonprofit

Now that you know about the 7 common fundraising mistakes that will ruin your nonprofit, you are well on your way to build a solid foundation for your endeavors. As long as you avoid the pitfalls of others, and make wise decisions supported by an educated and influential board, there is no reason your mission is any less than the big fish. 

If you’re interested in solving one of 7 mistakes, being that of “lack of financial competency”, get in touch with us and we will happily walk you through our accounting services.