I
Introduction
Essentially, a fundraising strategy is a road map that guides a nonprofit in determining its required financial resources. It also considers the most effective way to obtain them. Hence, the strategy for raising funds must satisfy the needs of an expanding organisation.
By and large, a nonprofit and a for-profit are extremely similar as they both need to be financially successful to survive. Additional factors to take into account when creating a fundraising strategy include marketing strategies, operational funds, and donor retention strategies.
Similar to the organisational strategy, the fundraising strategy must be in line with the activities, outcomes, and strategic goals of the nonprofit. Using a template can make the process easier to handle than going with an ad hoc approach.
However, in the absence of a successful fundraising strategy, organisations may find it difficult to raise the finances required to sustain operations and accomplish their goals. This proves that an organisation’s vision and its capacity to effect significant changes are dependent on its fundraising efforts.
II
What is a Fundraising Strategy?
A fundraising strategy is an all-inclusive plan and road map that describes the aims, targets, and techniques that an organisation will employ to raise funds. It serves as a guide for successful donor engagement, donation appeal, and long-term fundraising success.
In this situation, an established nonprofit has an advantage in that it can organise its fundraising around its revenue and past fundraising performance. In addition, they can plan the best possible fundraising strategy by observing what worked and what failed.
At the beginning of the fundraising planning process, it can be very beneficial to reiterate the nonprofit’s mission and vision statement. This is imperative even if the organisation has been in operation for some time and is well-defined about who it is and what it does. By and large, this ensures that the nonprofit vision, mission, and values are kept front and centre while making plans to meet fundraising goals.
Also, nonprofits must make sure they are in the best possible position to engage in fundraising to develop their income stream before creating the fundraising strategy.
Through the development and execution of a fundraising strategy, an organisation can cultivate an effective system that enables it to strive toward accomplishing its objectives. The strategy should outline the nonprofit areas of emphasis, hold the executives and their team members responsible for meeting several deadlines, and ultimately help them reach their funding goal.
To sum up, a fundraising strategy must be adaptable enough to take advantage of fresh opportunities and cut back on initiatives that aren’t profitable or feasible.
III
Critical Statistics on Fundraising Strategy for Nonprofits
In this section, we will consider nonprofit fundraising statistics to guide organisations in their strategy efforts.
a. Donations in the US & Canada
In the US, 81% of donors attend nonprofit fundraising events and 85% volunteer. Also, 81% of donors give in-kind donations to nonprofit organisations, such as food or other goods. 10% of donors in the US and Canada take part in peer-to-peer fundraising campaigns that support charitable organisations.
b. Online Donations
Online donations made by credit or debit card are preferred by 63% of donors. Other methods of giving include cash (4%), wire transfers (5%), digital wallets (1%), direct mail (16%), PayPal (10%), and text-to-give (1%).
Just 12% of an organisation’s donors account for 88% of its total revenue. 12% of all donations to nonprofits with annual revenue under one million dollars came from online sources.
c. Donation Options
34% of donors donate to nonprofit crowdfunding campaigns. Additionally, 24% of donors give through online auctions,
45% shop at an online store that benefits a nonprofit, and 47% participate in online raffles or sweepstakes to support charitable causes. In addition, 38% of online contributors who give to a nonprofit once a year also make donations the next year. If a supporter made their initial donation through a branded page, they were almost 70% more likely to donate again.
d. Mobile Donations
Online donation pages have an average conversion rate of 8% while the number of transactions made through mobile devices increased by 50%.
e. Corporate Donation to Nonprofits
For six out of ten businesses, donations have increased by more than 15% in the last year. In 2022, corporations contributed over $21.08 billion to charitable organisations, a 3.4% rise from 2021. Also, over $2 billion is donated to nonprofit organisations by the top 10 most-giving corporations each year. Altogether, employee matching gift programmes account for a large portion of this amount. 65% of surveyed companies offer paid release time for volunteering employee programs.
f. Matching Gift
Each year, matching gift programs receive between $2 and $3 billion in donations. Nevertheless, it is estimated that between $6 and $10 billion in matching gift funds are left unclaimed annually. Among donors who receive a match report, 84% are more likely to donate. Matching gift programs account for 12% of all corporate cash donations to nonprofit organisations.
g. Email fundraising
About 28% of online nonprofit revenue comes from email-based marketing and promotional campaigns. NGOs raised $90 on average for every 1,000 emails they sent out for fundraising. In the US, 55% of contributors would rather receive an email thank you for their charitable donations.
There is no better time of day for nonprofits to process donations than between 10:00 and 11:00 p.m. EST.
h. CRM for fundraising
67% of nonprofit organisations track donations and handle donor and supporter communications using a CRM.
IV
Why Should Nonprofits Have a Fundraising Strategy?
Developing a nonprofit fundraising strategy is the first step to guaranteeing that you meet your fundraising objectives. As we all know, one of a nonprofit’s most important tasks is fundraising, making it crucial for NPOs.
Secondly, creating a fundraising strategy provides an effective method to undertake fundraising campaigns. If an organisation has the correct plans, tools, and leadership, a strategy is one option that can guarantee funding success.
Also, rather than depending solely on one source of funding, a nonprofit can achieve its funding targets and extend the duration of its projects by utilising a variety of fundraising techniques.
You may consider creating a nonprofit fundraising strategy as the groundwork for your initiative. Building on that foundation to meet your fundraising campaign objectives becomes easier when the foundation is more certain and firm.
To sum up, a fundraising strategy can provide the much-needed funding to support nonprofit programs, pay staff, and sustain operations. It can also serve as a nonprofit’s main source of income.
V
Effective Fundraising Strategies for Nonprofit Organisations
In this section, we will consider some of the most effective fundraising strategies that nonprofits can adopt to promote financial sustainability.
a. Build long-term relationships
Firstly, developing strategic, long-term relationships with donors is one of the most important aspects of fundraising. These connections may be made with companies or with specific people. All in all, the value of developing trust is crucial in both situations.
Individual donors may be inspired to make repeated contributions to nonprofits they identify with if they have faith in the organisation and know what it stands for. Likewise, your organisation can develop a valuable and diverse network of financial support by fostering individual relationships.
Generally speaking, corporations have bigger budgets than individuals do for charitable contributions. Hence, it is best to network, follow up, and offer financial transparency in order to develop and maintain relationships with corporate donors.
Also, contributors typically have ulterior motives in addition to altruism. In addition to tax write-offs, these advantages for the company can also boost its reputation in the eyes of the general public. Corporations do, however, prefer to know where their money is going and that it is valued, just like individual contributors do.
Compared to individuals, corporations are far more interconnected and have greater means of assistance. Lone donors rarely have the time or knowledge to do extensive research. Also, foundations have far more experience than individuals although their workforce is small. Nevertheless, businesses are in a good position to carry out this kind of study.
Developing personal connections will enable your organisation to create a rich and varied network of financial resources. In addition, you should research the organisation you are requesting a donation from. The best method to cultivate these connections is to create a feedback and trust-based system.
b. Outline your mission impact
Success in fundraising cannot be entirely predicted. However, depending on the organisation, several strategies are effective. Donors, no matter how big or small, must comprehend the purpose of your organisation and your strategy for reaching it.
As a result, it is best to start by defining your nonprofit organisation’s purpose and vision in a clear, concise manner. A survey was conducted on the charitable donation practices of ninety individuals, ages 23 to 83. The nonprofit’s mission resonated with 95% of the participants, who said they were prompted to donate because they wanted to support it.
Primarily, this proves that if you can connect with your donors, they are more likely to support you. Any volunteer, board member, or staff member should effortlessly understand the mission statement of the organisation and also share what the organisation does. Nonprofits should outline two to three sentences that say, “We solve x by doing y.”
Based on your nonprofit’s results, donors are encouraged to give because they can see the organisation is having a positive impact. Also, randomised statistical analysis is one method of assessing the impact of your organisation. What results is your organisation able to achieve? What leverage and credibility can you derive from that?
Next, tell stories using your mission as a launchpad. Demonstrate to people why they should donate to your nonprofit cause.
c. Build an impactful board
Secondly, fundraising strategies demand the active participation of board members. For an organisation, these connections have the power to change everything.
Every board composition has a slightly distinct appearance. But a good place to start might be to look into the composition of the board of an organisation that’s alike. Functioning as a board requires a division of roles and responsibilities because the board is accountable for the organisation’s financial performance.
Additionally, a board needs to represent the community it serves. To make your board members some of your strongest supporters, consistently communicate with them and teach them how to have funding discussions.
d. Embrace technology tools for efficiency
Streamlining nonprofit fundraising efforts requires the use of technology tools. A great way to automate fundraising procedures and increase efficiency and effectiveness is to use intelligent engagement technology.
Also, AI can assist organisations in gaining insightful information that improves their fundraising tactics. Nonprofits can greatly benefit from the automation of several aspects of their fundraising efforts with the help of smart engagement technology. Through the use of automation, organisations can streamline donor communications and save time and effort. This enables customised and focused campaigns that appeal to individual donors and their particular passions.
In addition, nonprofits can track and analyse data for more effective fundraising strategies. Smart engagement technology can offer insightful information about donor behaviour. All things considered, charitable organisations can improve their outreach and donor engagement with the help of smart technology. Ultimately, this will help support their cause and be beneficial to the organisation as a whole.
e. Implement urgent call-to-action in campaign messaging
Setting clear deadlines for donations and fundraising targets is crucial. Nonprofits can use this strategy to instil a sense of urgency and inspire potential donors to act right away. Persuasive messaging and compelling language amplify this sense of urgency by enticing people to donate to worthy causes.
Furthermore, the necessity of taking urgent action can be reinforced by emphasising the benefits and results that can be attained through prompt donations. Encouraging donors to participate is achieved by including succinct calls to action in all campaigns.
Also, to make it easier for supporters to donate, nonprofits should offer a variety of giving options. This includes text-to-give, online forms, and direct mail. By putting these strategies into practice, nonprofit organisations can harness the impact of urgency and call-to-action, motivating people to support their charitable endeavours.
f. Express sincere gratitude to donors
Successful charities foster enduring bonds with their donors. After the initial donations are received, ongoing efforts should be made to maintain the interest and involvement of previous donors in the work of the organisation. This also includes demonstrating the impact of their contributions.
Even more, these connections can be strengthened if gratitude is expressed often. Organisations can choose to thank donors in public or privately. If there is a close relationship with donors, it is easy to tell which direction they lean towards.
Recognising a donor and their contribution on social media is one way to publicly express gratitude. The nonprofit organisation NeverThirst shares the purpose of their donations in a post of gratitude for everyone who donates. However, be sure to get the donor’s permission before disclosing their specific contributions and details. The contributions made by donors across the board can then be acknowledged by nonprofit executives.
Some notable ideas could be to give them a plaque, name a tangible object in their honour, or dedicate a section of the organisation’s website to honour their outstanding contributions. As we all know, there are donor rooms or plaques at numerous hospitals and universities.
Also, staff members should be informed about the identities of these donors and how they impact the organisation. Enhancing rapport and fostering donor relations can also be achieved through private gratitude. An excellent way to express gratitude to a donor is to write them a personal letter.
Finally, hosting occasions to show gratitude to contributors can be helpful. The event’s goal is to return favours to donors and to celebrate the nonprofit “wins” of the year made possible by the contributions of each donor.
Conclusion
To sum up, nothing is more crucial to an organisation than having the resources required to carry out its mission. Hence, a nonprofit can position itself for a successful fundraising year by creating and adhering to an efficient fundraising plan.
Most importantly, a fundraising strategy should be as straightforward as possible. It is a working document that should be created and revised as the nonprofit programs, projects, anticipated results, and strategies change. In terms of both the financial and objective components, it ought to be connected to the nonprofit tactical plan.
The purpose of the fundraising strategy is to maintain focus and guarantee that project planning, programming, and operations all function together.
Also, creating a successful fundraising strategy guarantees that a nonprofit is well aware of its identity, vision, mission, and values in addition to its intended goal, outcome, outputs/objectives, and activities.