Posted by Shivali Anand
April 19, 2021 | 6-minute read (1168 words)
A nonprofit business works for a particular faction or cause that is deemed valuable for society. By definition, they are intended to give to the community rather than be run with the goal of making a profit. A nonprofit organization’s type depends on its particular cause, such as charity, education, the arts, science or religion.
Fundraising and grants are the two chief means of raising capital for most nonprofits. Successfully raising money for a nonprofit requires a clear understand of your organization’s aims and objectives, as well as an awareness of the numerous available methods for fundraising.
As the heads of most nonprofits can attest, it can be very complicated to convince donors to contribute, as nobody desires to shell out their hard-earned money on something they don’t understand. So in order to raise funds, you must first help people understand that they are contributing toward a valuable cause. Once they believe in your cause, they are much more likely to seek to become a part of your good deeds journey.
If you wish to raise money for your nonprofit more efficiently, check out these top-rated fundraising practices:
- Incorporate fundraising software
In order to raise money, try incorporating fundraising software solutions. In the last decade, a number of software solutions have sprung up to serve many different types of nonprofits. Certainly, operating a nonprofit is difficult if different segments of your everyday procedures don’t work together collectively and smoothly. But technology has helped integrate software solutions specially designed for fundraising that connects all these processes.
Ensure that you understand what you do need before you start looking. By incorporating additional all-inclusive software solutions, nonprofits can restructure their fundraising approach.
Pro tips: Before deciding on fundraising software, some common elements to consider beforehand are listed below.
- Event management: Do you host lots of events? How many visitors in general attend? Do you require a system to register your guests and sell tickets? Or do you wish to employ mobile bidding?
- Contributor management: What kind of data do you wish to store about your donors? Do you need customized forms for information?
- Donations: Do you require mobile donation forms? Will you require an integrated payment processor, or is a third-party service okay?
- Launch a crowdfunding campaign
The use of social media grows with every passing year. To raise funds more effectively, nonprofit businesses can harness the power of social media through crowdfunding, a booming type of fundraising that resonates in the social media age and in particular with millennials.
Check out how crowdfunding on social media can help your nonprofit raise money:
- Reach: Crowdfunding typically draws plenty of small donations. Social media is one of the easiest methods to reach people and deliver your message to as many potential donors as possible, even those individuals with whom you don’t have any direct contact.
- Content: You need to have good content on social media, like a good story that people can trust. The majority of successful crowdfunding campaigns are greatly personal with emotional stories behind them.
- Design: Crowdfunding campaigns are best when hosted on an elegantly designed, single website, with “share now” buttons and videos. Such posts catch people's attention and ultimately encourage sharing.
- Facilitate mobile giving
Smart devices have become a part of many people's daily lives. After all, these gadgets enable people to do all sorts of activities, like banking and shopping.
Nonprofit organizations have become better at leveraging smartphones’ ubiquity in their fundraising efforts by putting mobile giving into practice, offering a handy and easy way to donate. Instead of online giving or mailing in a check, people can opt for mobile giving on the spot.
- Mobile donation capabilities boost event participation, as not everyone who supports your organization can make it to your venue in person. It also enables mobile bids for charity auctions.
- Mobile giving leads to useful data capture, allowing nonprofits to collect useful information about their donors, such as their name and phone number, making the process more efficient.
- Mobile giving is convenient and easy to use for donors as well as for nonprofits. Developing a mobile-friendly method for donations show donors that the nonprofit respects their efforts and time.
- Hire a fundraising professional
For better fundraising, many nonprofits have recognized the skills gap and offset it by outsourcing their fundraising efforts to an expert. A fundraising professional can help with campaign planning and direction, executive searches, feasibility studies, leadership training and embedded staffing. This professional can be a long-term or short-term partner, depending on your requirements.
- Be imaginative with corporate giving
Corporate giving has long been been a staple for nonprofit fundraising, as a major portion of donations typically come from companies with whom they partner. Corporate giving allows nonprofits to benefit from the companies’ resources, while partner companies in turn benefit from being linked to a generous cause, and potentially from the feel-good positive publicity that social media content can generate.
To raise funds efficiently, look for companies with an established history of corporate giving. Companies with such programs are becoming increasingly creative with their donation pushes as giving becomes more fashionable among millennials. If you are looking to reach out for corporate sponsorship, try a creative approach.
- Seek out funding allocated for nonprofits
Many foundations, corporations and government agencies provide funds to nonprofits, typically in the form of a grant to organizations with a purpose that supports that of the contributor. To save time and effort, nonprofits need to research funds and grants before applying to such entities to ensure that they are a good fit. If the values, mission and even the location of the nonprofit do not match that of the program, the probability of receiving a grant is low and your efforts wasted.
The application process for such funding and grants typically requires information regarding your organization, its mission, the people it serves and most importantly, what your organization plans to do with the money. This can be an excellent option for nonprofits because there is an abundance of such programs available.
- Tap into corporate social responsibility funds
Almost all companies and organizations set aside at least some capital in their budgets to spend on community support and socially beneficial causes. Most small businesses support community organizations, such as local services, while large corporations typically support nonprofits with matching interests. In return, companies often request that nonprofits mention their names on marketing materials to increase brand awareness and attract new consumers.
- Sales of goods and services
Though the objective is not to make a profit that does not mean nonprofits cannot generate revenue through sales. Nonprofit organizations can sell an array of products and services to generate capital; they only need to be interesting enough to get people's attention and sustainable enough so that sales can be maintained. Keep in mind that in many cases, nonprofits may be able to arrange discounts from product providers that can lower costs and boost returns.