You're a nonprofit leader. How can you raise funds more effectively?

If I give you $20 and you have a choice, you can buy something on Amazon like a waffle maker or a toaster or you can change someone's life forever and contribute that $20 to help someone who can't see get a dog to help them be able to navigate the world. Now that dog that's at my feet right now helps me get to work today, helps me pick up the kids from the bus stop, helps me get groceries at the store for dinner. The gift changed my life. Will the waffle maker change yours? Donate to change someone's life, you will make a difference. Make it personal and make it real make it matter.

1. Diversify your donation ask depending on economic conditions and the economic segmentation of your audience not your non-profit's financial goals. When times are tough, asking for regular contributions may appear insensitive. A one-time small donation may be the only ask for some of your donors. 2. Diversify your audience. DEI isn't just for employees and corporate reputational enhancement, there are a lot of newcomers that are likely unaware of your non-profit. UC Berkeley conducted a series of experiments that found that people of lower socioeconomic status were more altruistic than those higher on the economic ladder. Most non-profits target households with higher income levels.

Fundraising is a lagging metric. It is an indicator of efforts that have been previously put in over time, often over months or even years. "Know your audience" is the act of strategically and systematically building a relationship that evolves and gives the fundraiser/organization the data on how to introduce, educate, inspire, and ultimately activate to meet your request. Segmentation of how audience members react and respond at each stage can provide clarity on forecasting and strategy to reach fundraising goals.

Having served on several boards and formerly being a charitable giving manager (providing funding to non profits) the key to effective and consistent fundraising is a track record of success. Being actively engaged with the community you serve and on your website and social media platforms have a compelling social impact statement. If you have focus areas, housing, health, education... stay within those areas. I have seen non profits that chase the dollars and attempt to create programs without much success. Strategic planning, strong leadership and consistency is the key.

I am a people person. I go out and press the flesh as if I am running for political office and I give companies the benefits and the opportunity to contribute funds to our agency and then I follow up with a full page thank you ad in the newspaper. That gives them exposure and free advertising.

Being able to find a way to connect with your donors is critical to maximizing impact to your mission. It’s so important for each donor to know the role they play in your organization’s journey and the how they are the ones responsible for your success. Often expressing thanks and recognition can go a very long way in the hearts of your donors. Today more than ever, our donors are our future!

I agree! You must tell your story. I encourage folks to start with the end in mind, meaning that you must document who you were, who you are now, and who you want to be in the future. “ Who you were” is a look back to illustrate your progression and “who you are” illustrates your trajectory. “Who you want to be illustrates your vision.” With social media it is imperative that you document every “mile of the trip. ”

Share your why. Not just your organizational why, but also your own personal why. Tell people your story and why you do what you do. It creates connection.

As a constituent and former member of the organization, my journey to becoming Co-Executive Director served as a powerful narrative illustrating the transformative impact of LGBTQ+ youth organizing and leadership development. My personal trajectory closely paralleled the organization's evolution, reflecting its shifting political landscape over time. This narrative proved instrumental in engaging donors, taking them on a journey—from a focus on LGBT student rights to racial and gender justice, grounding our work in the experiences of LGBTQ+ youth in schools today. As adults, many of us struggle comprehend the challenges they face, making it crucial to center their stories and perspectives. And, then circle back to another ask for support.

Get super clear on your case for support. Why should anyone support your work? Where are you unique? Where do you partner to fill gaps without duplication? And then use/reuse that in all your communications.

An often-overlooked component of diversified fundraising is measuring the scope of work against the size of the contribution. This is most commonly an issue with grant funds. Some grantors require extensive paperwork for both the application and implementation of the grant (fund distribution reports, program plans, quarterly reports, etc.). If you consider the fiscal value of the labour required to meet these requirements, it often exceeds the grant's value. It's important to be strategic with your organization's time and focus on more than the "big" grants. There are often less arduous approaches to raising the same amount of capital, which will not only save time but will also diversify your revenue streams.

Speaking from the funder's side of the desk, what we feared was seeing an organization become dependent upon a small number of larger donors. We instituted rules, such as not making grants to the same organization more than once in three years. We understand very, very well that "no money, no mission" is a reality. But - and we know that raising money is hard - organizations that become dependent upon a few sources will be in trouble if that funding source is not there. So, look at your funders, and start looking to see who else funds similar things. I was always happy to speak to other funders about a former grant recipient. Where possible, try asking your current funders who might be a good prospect.

Ensuring long-term sustainability relies on the strategic diversification of revenue streams. Although grants and sponsorships contribute significantly, they may not be the most dependable sources of income. In situations where resources are constrained, it is advisable to focus time and efforts on cultivating individual donors. Establishing strong connections with individual supporters not only fosters a more reliable and consistent funding base but also provides a sustainable avenue for financial stability in the long run. By prioritizing the cultivation of individual donors, organizations can forge lasting relationships that contribute to a more resilient financial foundation.

Use AI + automation to discover new sources of funding, new strategic partners, and new sources for donors. Example: Set up Google News alerts for terms related to your nonprofit's focuses. This way you get notified when new articles come out relevant to you. Then, set these to auto-gather in a tool like Sheets/AirTable (using Zapier integrations). Then, use AI tools (like ChatGPT integrations) to prioritize which ones are most relevant to you. From this, you can have a monthly auto report of new developments in your niche, allowing you to easily find new partners, funding sources and donor communities. You can also use this to identify new PR opportunities which can then lead to new sources of funding, partners, and donors to find you.

Consider diversifying your funding sources by creating independent projects based on existing programs. These projects can provide short-term, project-specific funding to offset operational expenses. By mixing long-term funding like government grants with short-term funding from donor-funded campaigns and seasonal projects, you can reduce dependency on one type of funding and increase financial stability. This approach not only helps sustain ongoing operations but also allows for flexibility in addressing immediate needs and pursuing new initiatives.

If I go to your website, can I immediately see what you do and why? How hard do I have to work to make a donation? If it's too hard and not right there on your front page, I'm likely to bounce.

In our growth over the last year and a half, this is one of the things I am most pleased with in our journey. How you use the resources at your disposal to tell your story and deliver your message online can be a huge key to success. What are you doing to drive that story? How are you diversifying the mix of videos, posts, classes, audio events, networking, and array of social media systems to add girth to your brand tool belt. What is your website saying to your visitors? Do you have traffic flow to your socials and website? Be creative and dial in on the analytics to define a strategy that creates results.

One of the efforts my organization has used is we consult with the fundraiser experts. We try the products or services they offer to see if what they say works. Once we see an increase we share this knowledge with other non profits to help them grow and increase their funds.

Optimizing online presence is key for nonprofits. Prioritize a user-friendly website, compelling content, active social media engagement, and targeted email marketing. Utilize online fundraising platforms, SEO, Google Ad Grants, and virtual events to expand reach and attract donors. By effectively leveraging digital channels, nonprofits can increase visibility, engage supporters, and amplify impact.

As a one-person team, online strategies tend to go to the back burner. However, having a user-friendly website that clearly displays what the organization is doing, and has an easy to find donation button, is the first step in having a positive online presence.

In my experience, building relationships in fundraising involves genuine communication, understanding donors' interests, and showing appreciation. Regular updates, personalized interactions, and expressing gratitude can strengthen connections and foster long-term support.

Fundraiisng is all about building relationships. For me this means time with donors/supporters outside of thanking or asking. Face to face meetings can be the nbest for donors who like that, and simple calls to check in can be wonderful for those not interested in face to face time. I especially like sharing the most recent impact report with donors, however they choose to receive it.

Your #1 job is to build relationships and raise funds. Money flows through relationships. The most effective type of fundraising is major gifts / individual giving. One conversation can result in $10k. We don't prioritize this type of fundraising because we lack the courage to sit across from someone and ask them straight up. We don't prioritize grants because it's more time effective or strategic - it's less personal.

I'd put relationship-building first on the list. All fundraising flows from trusted relationships. And it doesn't mean you have to be everywhere all the time. Pick 2-3 ways to communicate and go deep on those.

The best way to cultivate your donors is to get to know their motivation and interests and then to create spaces in your organization and in your activities for them to realize those motivation. If they feel like their contribution in different fields rather than only financially is adding a value to your organization, your team, your beneficiaries, then they become more and more engaged to your organization.

In my experience, fundraising thrives on authentic storytelling, trust-building, creativity, and collaboration. Genuine passion for a cause, transparent communication, and innovative approaches are key. Cultivating relationships and fostering a sense of collective responsibility empower donors to make a difference, no matter the scale.

Test experimental new ways to raise money. Here's an e-sports example: Set up a community Fortnite tournament to raise money for your charity. Here, the community pays $5 to enter. 90% of all funds raised are donated to your charity, 7% goes to the prize pot for the top 5 winners, and 3% goes to your team for administration and organization of the tournament. Work with gaming streamers to promote the event, and get stream commentators for the semi-finals and finals so you can point entrants to these main events. For these streams, encourage tipping for more revenue. To run the event, use platforms like Battlefy for the tournament (or Epic games tools). Use Discord for community engagement, and Twitch, YouTube & Facebook for streaming.

Creating a culture of philanthropy, in my experience, has helped increase the acquisition and retention of donors for organizations I've worked with. Creating a clear and compelling case for support with a fundraising and stewardship plan helps your staff, board and volunteers be your best Ambassadors. The case for support lays out: 1) your compelling case with a client story 2) how your organization is going to solve the problem you are addressing (describe your programs) 3) brief history of your organization 4) share ways your donors can support you financially Next, you need a development and stewardship plan that lays out goals, tactics and responsibilities. These three tools are the foundation to creating a culture of philanthropy.