Is your nonprofit unable to raise funds these days? You aren’t alone.
Many nonprofit organizations are facing fundraising challenges as economic uncertainty continues to plague the nation. But fundraising is the lifeblood of your organization. Without a consistent supply of funds, you won’t be able to impact your community the way you’d hope to.
Luckily, most donors around the country are still looking for ways to give. You just need to find a way to reach them and overcome common fundraising issues.
Wondering what the most common fundraising issues are? Want to know how to overcome the top fundraising challenges so you can continue making an impact? Keep reading to discover what they are and how to beat them.
1. Building Trust
One of the biggest factors that affect charitable giving is trust from the public. Unfortunately, when scandals take place in the nonprofit space, the media is quick to take advantage of the situation.
They focus on the few organizations that fail, typically revolving around poor leadership. And as a result, people are turned off from charitable giving as a whole. When one organization fails, many people believe that all organizations are not to be trusted.
But there are steps you can take as an organization to regain trust with current and potential donors. It all comes down to transparency. Make your organization’s financial reports easy to find and easy to read.
Make it easy for donors to find out how much of their donations are actually used to make a difference, and how much is used to cover overhead.
2. Lack of Diverse Income Streams
Too many organizations rely solely on individual donations. But when economic uncertainty hits or another public scandal ruins trust, your revenue can dry up fast.
The key is to diversify your income streams. Yes, it takes work. But when you have multiple ways to raise funds, you’ll never be totally strapped for cash when one area slows down, such as individual donations.
For one, you should always be applying for grants. Events are also an excellent way to raise funds. But don’t just stick with the one or two types of events you do every year.
Different types of events can attract different sponsorships, partnerships, and attendees, allowing you to expand your donor base.
3. Giving Is Inconvenient
Want to limit the number of donations you receive? Then ask donors to give by cash or check.
If you want to boost income through individual donations, you need to make it as simple as possible. Using contactless donation options, donors are more likely to give and do so regularly. Plus, they can give at any time, without having to be at an event.
With modern donation platforms, you can make it easy for donors to give online, through your website, through social media, and in other creative ways. To reach donors, you need to connect with people where they are at.
4. Going It Alone
With so many young people in the workforce who choose their employer based on social impact and partnerships, more and more corporations are looking for nonprofit partnerships.
Corporate partnerships are essential to raising more funds. But modern partnerships require more creativity than ever before.
You can partner with small, local businesses, a network of businesses, or large corporations. The key is working with them to create a unique campaign that provides mutual benefits.
5. Not Offering Something In Return
Many people, especially millennials, love the idea of social enterprise and making a difference with their dollars. This shapes their buying habits, as well as the companies they work for.
However, it means they are looking for something in return. Rather than offering a donation, people are looking to make a purchase that supports particular causes.
You see this with the ever-popular Toms Shoes. Toms is popular because buyers get a quality product that also supports a social mission. It’s a win-win.
For many organizations, developing a social enterprise would be a distraction from their main focus. But there are easier ways to raise funds while offering something of value.
For example, you can rent out your extra office space to other businesses or individuals. Or you can rent our your events center for parties or weddings.
There are plenty of ways to offer products or services that can boost your monthly revenue.
6. Disconnected With Donors
Donors want to be a part of the story. They hate to give, never knowing where their money was used or how it made an impact.
The most effective organizations invite their donors into the story. This can be as simple as providing regular updates via email or social media on the work they are doing and the lives being impacted.
Or it could be inviting volunteers to serve alongside you, partnering hand and foot in the work you are doing. If you are looking for recurring donations, then you need to engage your donors on a regular basis, not always asking for money.
7. Finding Ambassadors
Another way to overcome reliance on individual donations is by implementing an ambassador program, or a peer-to-peer donation program.
Rather than having individuals donate directly to your organization, you enlist ambassadors. They create their own campaign to raise awareness for the social issues you are working to solve.
As a result, they reach new donors who give to their campaign, which ultimately raises funds for your organization. Finding passionate ambassadors who share the same vision as you can be the key to expanding your reach.
Identifying and Overcoming Fundraising Challenges
Starting and running a nonprofit is hard work. Fundraising challenges only represent a small percentage of the challenges you will face. But they are extremely important to identify, address, and work towards solving if you wish to continue making an impact for decades to come.
One of the best things you can do to optimize your finances as a nonprofit is to outsource your bookkeeping and accounting to professionals. Not only do we have over 30 years of experience serving organizations like yours, but we also understand the importance of affordability.
You can save money by not having to hire a full-time accountant, CFO, or bookkeeper. And you get access to a wide range of services that will make running your organization easier than ever before.
If you are ready to optimize your finances like never before, you can schedule a free consultation with our team today.