Published On: Thu, Dec 10th, 2020

Top 5 reasons your nonprofit is struggling to raise funds

Is your nonprofit organization, foundation, or educational institution struggling to get money?

Ooops, we’re really sorry to hear that.

If it’s any consolation, you should know that you’re not the first nonprofit to be in this position.

Year after year, lots of nonprofit organizations struggle to get the funds they need to support their cause. And in the end, many of them throw in the towel on their ambitions, give up, and move on.

In fact, it’s safe to say that not having enough money has always been the major theme of nonprofit organizations.

But what are the causes of this unfortunate situation? 

Let’s find out.

photo/Gerd Altmann

Only a section of your organization is soliciting donors

Yes, it’s the responsibility of the guys working in the fundraising department – or whatever you call them in your firm – to seek and secure funds. But there is a limit to their connections and networks.

When it comes to money matters, everyone needs to play a part.

From your program staff to administrative staff, personal assistants to the board of directors, and everyone in between, everyone working in a nonprofit organization is a lead to a potential donor.

For example, you can ask the guys handling the organization’s programs to share client stories with their friends, neighbors, and potential donors. Or you can ask them to participate in program tours with donors or suggest new ideas they can use to tie money to their programs.

You don’t have the right staff at your disposal

Did you know that the act of talking to people and convincing them to invest their money in a given cause is a skill?

Yes, it is. And not everyone has this skill.

Maybe you don’t, too. But there are some guys who do. 

Over the years, these executive professionals have honed this skill and are extremely good at what they do. 

If you want to increase your chances of finding and getting donors to work with you, these are the kinds of guys you want to have in your organization.

Not to worry, any of the top-end nonprofit search firms – like Scion executive staffing – can help you find these guys. 

You don’t have the right tools

As much as you need the right heads, you also need the right tools. 

If you take a deep dive into the history of nonprofits that successfully got funding from donors, you’ll realize that many of them had a lot of information and access to the donors before finally getting them to do their bidding. 

Information like contact information, ambitions, career details, interactions, history, interests, etc.

With this information, it was easier to know which donor to talk to and which to avoid; when to talk to a donor and when not to; how to pitch to and win the heart of a donor; and stuff like that.

In order to increase your chances of getting funding, too, you need to provide your employees with all the necessary tools they need to network with donors.

You’re not telling your story well

Although you may think you’re doing your best to convey the motives of your cause to potential donors, sometimes your methods may not just be right.

Instead of approaching every potential donor with the same story, you should learn to tailor your storytelling to suit the individual in question. 

Have you read the profile of a particular donor and discovered that they tend to invest in certain types of programs? Tell your story in line with this angle.

By and large, when pitching to donors for funding, try to their emotions and interests.

You’re relying on one donor

You’re probably struggling to raise funds TODAY because, in the last few months or years, you’ve been relying heavily on just one source. 

Now your programs have increased in number, and costs have gone up. But your source can’t seem to be able to carry the weight of your cause single-handedly anymore.

Hence, no money.

Even though it may be extremely hard to find donors to support your cause, you need to continually seek them out and not rely on just one source. Otherwise, one day the source may no longer be able to carry your financial burdens or may even dry up completely.

Author: Uday Tank

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