By Mike Bacon, CFRE
The summer months give us an opportunity to review our organization’s fundraising strategies and to consider ways to improve them. As we’re measuring the successes of the last year against our goals for the future, it’s always helpful to look at what pitfalls are common to nonprofits across the spectrum. Frequently we learn best by examining other nonprofits’ “mistakes” and working for ways that we can avoid common fundraising pitfalls.
1. Not having a plan for fundraising – Sometimes our plan is to do just what we did last year and hope for the best. Yet to move our program forward, we need to set specific and measurable goals and track our progress throughout the year. Establish a baseline (last year’s numbers) and then create incremental goals. Those could be based on participation rates, an increased number of gifts or a higher average gift.
2. Not obtaining training for the person who raises money – Professional development is essential. How we effectively raise money today is very different than what worked even 10 years ago. Yes, at the core of our work, it is still about relationships. But the methods of fundraising, from social media and crowdsourcing to “ask” events and donor stewardship continue to evolve. You can get plenty of on the job training, but nothing beats hearing your professional colleagues explain how they achieved success. Find a good conference on a topic that will improve your fundraising skills.
3. Not asking your Board to help raise money – We can’t do this alone. And staff does not pull rabbits out of hats when it’s time to fund a project or even meet the annual budget gap. Central to your Board’s fiduciary role is ensuring adequate resources. Don’t forget the Board will need staff support (and persistent encouragement) to fulfill its fundraising role. Development staff should ask for specific help at every Board meeting. Let your Development Committee of the Board drive the fundraising requests to the rest of the Board.
4. Not knowing your donor well enough to ask for the right thing/project – It’s all about a relationship. Too often, we introduce ourselves and ask for a gift immediately. Instead of the “shake and grab” approach, we should be identifying those prospects with capacity, growing a relationship over time and learning enough about their priorities to find a match with our nonprofit’s needs. That takes time and several face-to-face meetings. Donors may need to make several smaller investments in our work before they are ready to contribute a significant gift.
5. Not adequately explaining how the donor’s money will be used – More and more, donors aren’t getting excited about unrestricted giving. Penelope Burk, author of Donor Centered Leadership, writes, “Unrestricted asks are the weakest solicitations, producing the poorest response rate and sub-par gift values. Holding back information on what a not-for-profit intends to do with the money they raise makes donors question whether fundraising is even necessary.” Donors often don’t have a sense of what our programs and services cost. How will their gifts affect our daily operations? For major gifts, donors often want more accountability and ownership. This is appealing to them because the end result of the gift is specific, identifiable and more meaningful to them.
Stay tuned for the next five common fundraising mistakes in our July newsletter. And feel free to let us know of mistakes you’ve made that can provide a learning lesson for all of us. (We promise to keep your name and your mistake confidential!) Believe me, we have all made them! Email us at mbacon@baconlee.com.