BOOK A STRATEGIC CONSULT

The Blog

Financial thoughts to keep you focused on money matters

The Three Most Common Nonprofit Fundraising Mistakes

best practices board finance funding Oct 24, 2024
 

     After 25 years experience working with many nonprofits, I have lots of fundraising stories I could tell you. But today, I want to focus on one that I experienced as a leader in that nonprofit. I was the founder in this nonprofit and we began the fundraising journey with a creative event. The purpose of the event was to raise awareness in our community of this issue and how we were going to address the need. We called itRunning to Rescue.” Thousands of people showed up in support and we achieved our objective to create awareness and raise a lot of money.

     The event continued for several years and was eventually replaced with some new styles of events based on the maturing of the organization and the growth in donor relationships, which is what I want to  explore today. There's an overlooked, but important, truth in the nonprofit world:

 Having events isn't always the best fundraising strategy. 

     Over the years, I've learned what is most important to donors and how we can avoid the most common mistakes in fundraising. 

Top 3 Mistakes in Nonprofit Fundraising

Mistake #1: Assuming Donor Relationships

     Authentic relationships take time! Donors who feel a personal connection to your cause are more willing to contribute and their contribution amounts increase over time. They're also more likely to respond positively to a specific ask when they believe their support makes a difference. If you are doing events, ask yourself “How are you using those events to identify donors that are seeking a deeper connection with your nonprofit?”

Mistake #2: Stats Before Stories

     Storytelling is where we connect donors to our mission. Sharing stats is important, but focusing on the stories will inspire your donor relationships. Talk about how your nonprofit made a difference and tell that story over and over again. A compelling story will inspire people to take action! Whether it's making a donation, or saying “thank you”, or even spreading the word about your mission, a well-told story can mobilize support in ways that statistics and facts alone never will. 

Mistake #3: Taking Donors For Granted

     It's more effective to keep the donor that you have than to spend all of your time continuously looking for new donors. Don't get me wrong, both are important, but it’s so important to let your donors know that you appreciate them. Carve out time to thank them each time they give and connect your appreciation to stories of impact! Check in and see how they are doing. Stewarding a donor relationship is not about what you can get from them, it's about what you can get to them. You are facilitating the blessing coming to them as an experience when they have been a part of making a difference. So take care of those relationships. Let them be people. Get to know them! Have a relationship with them and remember it takes time.

     When these three mistakes are turned into areas of excellence and consistency, it will make a meaningful difference in your donor relationships! 

      What are some of the challenges you’re facing in your fundraising efforts? Reach out and let me know so I can address your own challenges in a future blog or video!  

Don’t forget: Today is the live webinar at 10:00 AM! Register HERE to join us. I don't want you to miss it!

Sign Up to Receive Financial Tips in Your In Box

We hate SPAM. We will never sell your information, for any reason.