If you are unable to raise funds for your nonprofits, here are some of the fundraising challenges that may be the culprit.
- High donor expectations
For nonprofits, soliciting funds from donors is the main work. In the 1900s, fundraisers were tasked with seeking people who would donate their money for a specific course, and their work is done. However, this mindset has changed in the modern world. Every donor wants to be involved in other issues away from giving, which is the core work of a nonprofit. According to research, about 59% of participants want to know the total amount of money raised. Another 44.5% want to know how the money raised will be used. This means that donors want to participate more like shareholders as they demand more accountability, transparency and results in their investments. You can solve this by meeting the expectations of the donors. Always keep them informed through personalized messages to keep them engaged and happy.
- Increased communication
Over the past decade, the nonprofit sector has grown by about 20%. This is a significant improvement considering the industry growth has been growing by between 2 to 5%. Most of these nonprofits do similar work, meaning that there scarcity of resources. Due to limited resources, competition for donor attention has intensified. Nonprofits must also compete against each other to get volunteers for their causes. The government funding, as well as grants, have to be shared between many eligible organizations. This means that nonprofits get a lesser amount than before. This competition means that there is less nonprofit funding for each organization. Although it is hard to compete in the modern environment, the solution to this is to ensure that you maintain the existing donors. Make your vision and mission as specific as possible as this will allow you to reach those donors who would like to support your cause.
- Distrust of nonprofits
Scandals in the nonprofit sector, just like in the for-profit industry, have an adverse effect. However, the impact on charities is even more drastic. An example is the Olive Cooke scandal that impacted nonprofit organizations as donors began seeing them as a group of people who only care about money. Scandals change the perspective of existing and potential donors and increase distrust. Distrust among donors can have negative implications on the fundraising initiatives as donors can hold on to their money. Maintain the trust with your donors by always ensuring that you are transparent, accessible and accountable in your actions.
- Lack of leadership
Leadership and the quality of those given the mandate to run charities are critical to the success of a nonprofit. As such, nonprofits must always put people who are good in planning, budgeting and strategizing at the helm. Nonprofits must also ensure that those in top positions are credible and accountable. Any leadership vacuum must be filled with the right people who will further the cause and stick to the mission and vision. Doing so will keep the trust of the nonprofit among the donors. Unfortunately, some nonprofits do not do so and often complain of low fundraising amounts, fewer donors and poor donor retention rates.
Despite the fundraising challenges listed above and others, there is always a chance for your nonprofit to emerge stronger. By ensuring that you have the right leadership, transparency and accountability, you can quickly increase your funding. By embracing digital technologies, you can easily know what donors want and bring them up to speed so that they can fund your cause.
