(In her guest post, Kristen Gramigna challenges us to re-examine our nonprofits’ fundraising strategy)
The health and vitality of a nonprofit organization depends largely on the effectiveness of its fundraising campaigns. Fundraising requires a lot of serious planning, execution and follow-up. Most nonprofits are passionate about their mission to make a difference and accomplish something significant. Not surprisingly, when you dream big, mistakes are bound to happen along the way. While minor bumps and hurdles might slow down the pace of an organization, they should certainly not stop it. In fact, hitting fundraising plateaus is an all-too-common occurrence, be it with any business, political or organizational campaign.
How exactly can nonprofits break free of the rut and steer their efforts in the right direction? Recognizing some of the key fundraising mistakes and understanding how to correct them can be a great starting point.
1. The Underinvested Fundraising Operation
One of the most common reasons why many nonprofits struggle is due to the lack of a solid fundraising plan. Often, charities underestimate the importance of investing in valuable resources and employees. It is not uncommon for many organizations that raise a million dollars or more to have an under performing website or weak financial plan. While hiring a trained professional to carve out a fundraising plan or redesign a website might seem extravagant, not doing so can lead to a painful downward spiral or stagnation.
2. Not Setting Lofty Goals
Many nonprofits don’t dare to think big. While selling baked goods and hosting local clothing drives can be a great way to attract attention to your cause, relying on them alone is probably not a smart idea. Step outside your comfort zone and set higher goals. Creating incremental goals, such as raising 10 percent more at an event or expanding your donor base by 50 in the next three months, can be immensely motivating to the staff. It is not surprising that innovative nonprofits with audacious goals tend to attract more donors than the others.
3. Not Being Interesting Enough
Don’t fill up brochures, newsletters and websites with your mission statement and financial report. Instead, heartwarming print and digital campaigns that are filled with meaningful life experiences can draw positive attention and benefit your fundraising efforts.
4. Putting All Your Eggs In One Basket
Rather than depend on only a few options, it can be a great idea to diversify your fundraising portfolio. A sustainable and healthy program combines different methods, such as product selling, government grants, regular giving, major gifts, middle-donor campaigns and more.
5. Emergency Fundraising
Goals and fundraising deadlines are inevitable and essential. However, when too much focus is on the money, an organization can tend to forget about its true purpose. Aggressive fundraising measures, with a sense of urgency, can strain relationships and take a toll on the reputation of the nonprofit.
6. Failure To Cultivate Long-Term Relationships
Building relationships with your supporters should never be perceived as a waste of time. Successful fundraising is all about cultivating solid and meaningful relationships with the people who believe in your cause. Taking the time to reach out to your prospects will likely translate into larger and more frequent gifts to your organization.
7. Trying To Be The Next Big Thing
Being innovative and thinking out of the box can be immensely beneficial. However, it is important to not get too carried away. Make sure to set aside an affordable budget for research and development. It is never a wise idea to tap into your core revenue streams to try out a relatively new concept.
8. You Are Not Your Target Audience
Do not make the mistake of assuming that your donors will visit the same places as you. Meet your donors at their convenience, not yours. Whether it is the Web or a local church, successful fundraising boils down to being in the right place at the right time. With the increasing popularity of digital technology and social media, it is essential to recognize their potential as powerful fundraising platforms.
9. Not Implementing A Donor-Friendly Mobile Payment System
Make it possible for your donors to financially support you in a convenient way. Gone are the days when mailing in checks and money orders were the norm. Today, more than 91 percent of Americans own cellphones, and many of them use mobile browsers on a day-to-day basis. For a nonprofit, the risk of not embracing digital media can prove to be expensive. Implementing a secure and easy-to-use mobile payment system into an existing blog or website can be the most important step a fundraising department can take. Mobile giving transcends all barriers and is an investment in the future.
Kristen Gramigna is Chief Marketing Officer for BluePay, offering non-profit credit card processing solutions. She has over 15 years of experience in the bankcard industry in direct sales, sales management, and marketing and also serves on BluePay’s Board of Directors.