The number of nonprofits has grown in recent years, with 1.54 million registered with the IRS in 2016. This is an increase of 4.5 percent from 2006. In 2016, nonprofits contributed an estimated $1 trillion to the US economy. The figure is equivalent to 5.6 percent of the gross domestic product (GDP).
And when it comes to helping nonprofits raise funds, it’s important to understand that there is no one-size-fits-all approach. Each nonprofit has unique goals and needs when it comes to fundraising. Your strategies should be tailored to your organization’s specific situation. That being said, there are some tried-and-true strategies to help nonprofits raise more funds. Here are a few of them.
Events are an excellent way to engage existing and potential donors and raise money for your organization. The type of event you organize should be chosen based on the resources available as well as the interests and preferences of your target audience.
For example, a golf tournament would be ideal for an organization with deep pockets and many financially affluent supporters. At the same time, a walkathon or 5K run might work better for an organization with fewer resources but more participation from community members.
No matter what event you choose, it’s essential to plan the event thoroughly in advance. Planning should include the following:
- Finding a venue.
- Setting a date and time.
- Gathering volunteers.
- Advertising the event.
- Securing necessary permits.
You’ll also want to create an efficient system for tracking donations and attendees so that you can thank them afterward and send them further information about your organization.
Finally, it’s essential to evaluate the success of your event after it’s finished. The evaluation allows you to make necessary improvements for future events and ensure that you engage with your donors effectively.
Asking for Donations
The most basic way of raising funds for a nonprofit is to ask people directly for donations. This method is still one of the most effective ways to help nonprofits raise money. This is particularly true if they have already expressed interest in supporting your cause or have donated previously.
You can ask people face-to-face during events or ask via email or phone call if appropriate. However, if you choose to do it, ensure that you are respectful of their time and attention—no one likes feeling pressured into donating.
If you are asking for donations, explain why people should contribute. Tell them about the impact their donation will make and what it means to your cause. Be transparent and straightforward when asking for donations–provide them with all the information they need to make an informed decision.
You can also work with a reputable charity auditor to show your organization’s willingness to show transparency. The financial professional can provide an accurate financial report to potential donors. Having an audit can help your organization build trust with the public, which could lead to more donations in the future.
Lastly, thank donors for their contributions and show appreciation whenever possible. This will ensure they feel appreciated and valued, increasing their chances of supporting you again.
Engaging in Social Media Marketing
Social media marketing is one of the most powerful (and cost-effective) tools for nonprofits today. A solid social media presence can help spread awareness about your cause. It can also generate support from existing donors and even attract new donors who may have yet to hear about your organization.
To start with social media marketing, create profiles on all major platforms, such as Facebook, Twitter, Instagram, and YouTube. Then focus on building relationships by engaging in conversations and sharing relevant content that resonates with your target audience. With a bit of effort and commitment over time, social media can become a potent tool for helping nonprofits raise money.
Additionally, social media can be used for crowdfunding campaigns. Crowdfunding campaigns allow nonprofits to raise money from supporters all over the world. These campaigns are effective because they help create an emotional connection between people and your cause; when people feel emotionally connected to a cause, they’re more likely to donate. To set up a crowdfunding campaign, create an account on major crowdfunding sites (such as GoFundMe or Kickstarter) and start sharing it with your network.
Finally, use social media analytics tools to track performance and adjust your strategy accordingly. By paying close attention to what’s working and what’s not, you can ensure your social media efforts are as effective as possible.
Fundraising is essential for any nonprofit looking to keep its operations running smoothly. Fortunately, plenty of great strategies can help any nonprofit achieve its goals while still staying within budget. Whether it’s organizing events or asking people directly for donations—there’s something out there that will work perfectly for every nonprofit’s particular situation. With creativity and dedication from everyone involved in the process, fundraisers can easily become successful fundraisers in no time.