There was a time when donors would look around and see a charity in action locally and without question, know they would be donating to that charity each month, year etc.

 

With the onset of time, economic downturns, donor apathy, regulations, reporting and transparency, non-profit organizations are held to a raised standard, while in an increasingly tight competitive market of donors.

 

Trends, markets, and shifts in public thinking all affect fundraising in various ways. That same charity mentioned earlier, most likely now is aware that a great Non-profit Fundraising Efficiency score will receive more corporate or public favor when fundraising events begin. In basic terms, this score is measured as how much a charity spends to raise $1. It is fast becoming increasingly popular as an important metric of the financial health of any non-profit organization. The less an organization spends the better the score and the better it is.

 

Given the competitive fundraising market, let’s take a look at what works right now and areas we can focus on when things become difficult to manage.

 

What Works Today

 

Go Mobile – More than ever, having a mobile solution eliminates time and limitations on donating to your organization. The ability to advocate, request and see instant reaction to your fundraising event in real—time is one of the most popular platforms to donate on today.

 

Grab their Attention – The focus of your website is not as much gaining traffic as it is qualifying the traffic you have by making your homepage as simple as possible to donate, how much will be used and the reason why. Imagine landing on your non-profit organizations website. Does it show your project or cause, and does it have the submit donation or donate button mid-page with a space for an amount to enter? Does it state 100% of the donation goes to the project or cause? All other information about the charity should be clearly available on the top menu but not on the homepage itself. Strong imagery supporting the project or cause is critical on the homepage. Donate button should use a color that stands out. It does not need to be red with thick borders, but it should be for example, a blue color where that color does not exist on the homepage. Include a checkmark on the donate form to make the gift recurring monthly.

 

Branding – It is not easy to build a brand. It is hard work and requires strategic thought well ahead to ensure your brand is visible and recognizable over time. Keep your brand subtly but highly visible on your website homepage. You want your potential donors to feel secure enough to know you are a trusted organization proudly displayed on or near the donation form. Donors will know right away they are in the right place.

 

Let your Donors know you have Social Proof – Social Proof is the demonstration that others before you have experienced the fundraising event or charity work and openly supported, blogged, tweeted, commented etc. about it. This adds credibility to your cause and creates a sense of trust that your non-profit organization is committed to the charity. Online platforms such as Facebook, Twitter, Instagram, Snapchat, LinkedIn etc. are great tools to display and for donors to express support. Your website can also show a meter with the amount raised, the target, number of donors

And an honor roll for generous donations from companies or in memoriam.

 

Online Security is important – When seeking online donations, put security first. Even though financial transactions are common place, it is important to show you respect and prioritize security for everyone who donates.

 

Be Transparent – Because donors want to know where their money is going, non-profit organizations are called to a higher standard of transparency. By including your audited financials, and annual reports on your website, current and future supporters will feel confident seeing how and where their donations are being used by the organization.

 

Persevere – One of the most important qualities in fundraising is perseverance. You will hit barriers along the way but staying consistently on message, in the front line and in public view will eventually gain new funding sources. Setting goals and realistic benchmarks is the secret here. When the going gets tough, this will keep your team form throwing in the towel. While stakeholders and boards will come with instant requests for a targeted amount, it is important to keep things in perspective and manage that request accordingly. They are under great pressure, but you must keep your head above water and maintain that in order to raise the amount requested, nothing will be achieved without a plan to achieve.

Long term planning involves 90-95 percent of your time focused on the 5-10 percent of donors who account for 90-95 percent of funding or gifts to your organization. Building and maintaining these relationships will keep your non-profit organizations stable year to year.

 

Trends and Challenges

 

To see where challenges may make it difficult to manage fundraising, we should look at a few indicators of what trends are making an appearance today. This in turn will allow us to identify a response to any roadblocks appear.

 

• Donor trust is on the decline. Concern over publicized indiscretions and issues, illegal activity and fraud for example, have driven donor trust to its lowest in years. They are wary of how NGO’s are using their money.
  Remember here to keep transparency about all fundraising front and center. State how much you need, why you need it and how you will spend the funds.
• It is all about the Donor Experience. Smart organizations have begun to map out their donor journeys in an effort to see what they experience each time a donation is made over time.
  This donor-centric journey is made possible by using modern CRM (customer relationship management software) and analysis platforms to elicit feedback while engaging your donor and thereby building a transactional and behavioral history. The future in all of this is a truly customized donor experience.
• Advocacy is now becoming a skill. Government funding has been slowly decreasing recently. Communication skills need to be sharpened on local, state and federal levels of government.
  It is critical to note that you must treat the influencer of funding decisions as you would a major donor prospect.
• Giving Days and Crowdfunding are popular and will be here for a while to come. Mastering popular digital and social media platforms will allow your organization to engage for specific engagement events (Giving Days) or targeted fundraising goals with an urgent deadline (Crowdfunding). Adding elements of gamification, humor, fun or social sharing can hit the right donor market to create a serious source of donations.
  Using digital ambassadors to promote and run these campaigns are the key to its success,
• ROI makes its appearance to all levels of the non-profit organization sector. Where once only large organizations focused on ROI (return on investment), it is becoming clear to smaller organizations that in order to raise and spend wisely, ROI is necessary to the business.
  Incorporating ROI and watching your Fundraising Efficiency score are key elements to ensure what you have raised and what you can raise remain positive.

The fundraising world is evolving at an unprecedented way. New skills and strategies need to be realized in order to succeed in a most competitive market. For small business and non-profits alike, using an outside consultancy to assist in finding your place in today’s fundraising world may be the best course of action to take.