While fundraising is not the core work of nonprofits and charities, it is vital when it comes to securing long-term funds to support your mission. Many organizations have access to staff and volunteers with deep expertise in their field, whether that be housing, education, immigration, or recreation and leisure. However, many of these same team members often have less experience and confidence when it comes to fundraising. As a result, organizations can make critical mistakes or missteps in their fundraising strategy that cost them much-needed donations.
To ensure your organization is set up for success, we are sharing five common fundraising mistakes that could be getting in the way of your organization’s fundraising success.
1. No clear case for support
A case for support is not a “make-do project” but rather an important communication tool that will significantly support your organization’s fundraising efforts. Organizations that do not have a clear case for support often struggle to articulate why donors should care about their cause. This can lead to board members who shy away from fundraising and staff who are unsure about how to talk about their organization’s needs and impact. Without being able to tell your organization’s story, your team will struggle to communicate with current and prospective donors and undoubtedly forgo support you may have otherwise secured.
2. Inconsistent donor stewardship
Have you ever donated to charity and received a thank-you letter weeks, or even months later? Can you even remember why you gave in the first place? While thank-you letters are an important tool in donor retention, they are just one piece of the puzzle. Effective donor stewardship cannot be sporadic or too generic. Thoughtful, authentic, and timely communication is most effective at helping organizations develop meaningful donor relationships. If your organization doesn’t have a solid plan to build relationships with donors after they give, you’re likely losing donors, and the future gifts that come with them.
3. Underutilizing the board
I know that reading this may have stirred up some emotions, but yes, you read it correctly. Your board of directors can be effectively engaged in your organization’s fundraising success. In fact, there are many fundraising activities that board members love to lead. The board is responsible for the long-term success of your organization, which includes how your activities will be sustainably funded. However, many organizations fear that their board members do not have the time, expertise, or willingness to contribute to the fundraising process, and thus fail to unlock the board’s fundraising potential. Not working alongside your board in developing your organization’s fundraising strategy can make it harder to spot opportunities, and may lead to missed donations.
4. No fundraising plan
Does your team operate without a clear fundraising strategy? Do you have a calendar for major fundraising activities? If not, your team is likely missing out on critical donations. A fundraising plan is an essential tool in your organization’s fundraising strategy that allows your team to be more efficient and effective. Your plan ensures that your team has the needed time and resources to successfully secure the funds you need to do the work of your mission. It can ensure you get your grant applications in on time, and help avoid overloading staff when they are busy with critical tasks. Without one, you are likely missing out on needed donations.
5. Fear of asking
Another misstep that certainly may stir up emotions, but is a real one. Sometimes your organization is missing out on donations because you are simply afraid of making the ask. Many staff, volunteers, and board members avoid asking for donations directly because they feel uncomfortable, or fear having to deal with rejection. Remember, asking someone to support your cause is not pushy or rude, and does not necessarily require years of fundraising experience. You are the expert of your cause. Asking someone to support it, is allowing them to make a meaningful impact in their community. While there will certainly be times when people decline making a gift, being afraid to ask will definitely lead to missed opportunities. As Wayne Gretzky famously said, “You miss 100% of the shots you don’t take.”
Fundraising can be challenging at times, and making these five mistakes can make it significantly more difficult. If you find that your organization is making these errors, don’t worry, they’re common and fixable. Keep working to strengthen your fundraising strategy, and develop tools that help your team overcome fundraising barriers. As time goes on, these improvements will help ensure you are doing your best to make it easy for donors to give and help you secure the funding that will support your cause well into the future.
Roxanne Tackie is the co-founder of Story Point Consulting where she helps people working or volunteering at small nonprofits and charities find the right donors, effectively communicate with supporters, and strengthen relationships with them. In her spare time, she enjoys spending time with her family and friends, baking, and teaching and studying the artform of tap dance.
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