Despite a long history of fundraising, organizations are still plagued with misconceptions, myths, and taboos. Whether investing in fundraising or over overhead costs, there are plenty of taboos about fundraising that should be laid to rest.
Let’s take a look at ten taboos that may be impacting your nonprofit:
1. All Money Raised Should Go to Programs and Materials
One of the most common fundraising taboos is that all money raised should go to programs and materials, not salaries or overhead costs.
Nonprofits are doing their best to make the world a better place, often with already limited resources. Just like for-profit businesses, nonprofits have expenses that must be paid in order to function effectively. Employee salaries, rent, licensing fees, marketing costs – the list is endless.
In order to keep your organization afloat, a portion of money from fundraising must go to these expenses, including fair employee salaries. After all, your employees are what makes your mission possible.
Most importantly, don’t hide these expenses from your donors. They want to know where their dollars go and why it’s important.
2. Nonprofits Should Not Invest In Fundraising
If the idea of spending your precious budget towards fundraising strikes you as a little odd, you’re not alone. Many nonprofits need to see fundraising results to grow, but they’re afraid to invest in things like fundraising software or marketing.
Investment in fundraising can often result in much higher returns, which will help your nonprofit grow and raise even more money in future events.
You may be running a nonprofit, but your organization is still a business. It is just as likely that your organization must spend more to make more. This means treating your organization like a business and donors like “customers.” For example, in the for-profit world, research has shown that it costs five times more to acquire new customers than to retain them. Additionally, 61% of small and midsize businesses report that more than half of their revenue comes from repeat customers.
This makes investing in things like recurring donations, Facebook advertising, and a donation platform like GiveWP crucial for your nonprofit’s growth.
Amplify your fundraising with a GiveWP Plan
3. Nonprofit Employees Should Not Make Market Rate Salaries
Due to the scrutiny imposed upon nonprofit employee salaries, it may seem easier to bend to public opinion and pay your employees less. While employees might have passion for your nonprofit’s cause, they shouldn’t take a pay cut for that passion.
Developing fair salary ranges is a crucial driver in recruiting and retaining good talent for nonprofits. So, when someone is fundraising to increase salaries or add a position at their organization, that shouldn’t be seen as a bad thing.
While nonprofits are the third largest employer by industry, in 2020 they suffered some of the largest drops in employment due to the Coronavirus pandemic.
– John Hopkins, 2020 Nonprofit Employment Report
Don’t be afraid to pay your nonprofit employees well and let your donors know how those individuals help your cause thrive.
4. Board Members Should Not Be Asked to Raise Money
When it comes to reaching fundraising goals, everyone must play a part—including board members. After all, they hold the legal responsibility for the fiduciary care of the nonprofit.
In most cases, board members would be happy to be a part of the fundraiser. All they often need is a tiny bit of training and support. Even involving them in simple tasks, such as thanking donors, can help increase recurring donations.
In her book Donor-Centered Fundraising, Penelope Burk mentions a test they performed where board members called to thank donors within 48 hours. On average, donors who received a thank you call gave 39% more than those who did not.
While your fundraising team and volunteers can make these calls, it’s much more impactful when “Thank you” comes from a board member.
5. Nonprofits Should Never Raise More Money Than They Need
In an ideal world, nonprofits would get everything for free. As mentioned earlier, there are a lot of operating, administrative, and development costs that nonprofits must take into consideration. Not to mention the supplies for programs.
Funds that exceed a goal can, and should, be used to invest in other areas that can help your nonprofit grow. Some ways to use those funds as an investment in your organization include paid adds, upgrading features like recurring donations, or purchasing a tool that can improve donor acquisition and retention.
The more money you raise, the more people you can help. There is no limit to a nonprofit’s success. When you do raise more than you need for something specific, it’s important that you let your donors know where those funds went and the impact it had on your organization.
6. Fundraising Is All About Asking for Money
While asking for money is important, fundraising isn’t about the money. It’s about your nonprofit’s mission and impact. That’s why storytelling in fundraising is so important.
Great storytelling has the power to tap into your donors’ emotions, grab their attention, show them that their actions are making a difference, and create a deeper relationship with them.
Share real-life stories of the people whose lives have been impacted by the work your organization is doing. Donors like to know the impact their dollars have and it the difference it’s making. Sharing these stories inspires donors to give again.
However, these stories don’t have to be limited to the people your nonprofit is helping. You can also have volunteers and employees share their own experiences with the community. If you want to go even further, you could get donors involved as well—contact them with volunteer or job opportunities. You can also ask them why they give to your cause. Testimonials can help increase your donations.
7. You Should Never Ask a Past Donor for More Money
This goes along with the idea that you shouldn’t ask for more than your goal amount. Donors who have given to your organization in the past will be more likely to give again. In fact, these are the perfect people to ask for recurring donations.
This makes sense when you think about it: If someone has already given you money, then they have an investment in the success of your cause. Past donors are your community and they will want to continue to support you in the long-run.
Knowing who they are can also help you create donor personas and more accurately segment things like newsletters. When you have a better understanding of who your donors are, you can break down their giving patterns and better tailor your messaging to each donor through newsletter blasts.
8. You Don’t Need to Capture Contact Information for Donors
Capturing the name and contact information for donors is crucial for the growth of your nonprofit and reaching fundraising goals.
As mentioned earlier, getting your nonprofit’s board members to call donors and thank them for their donations will encourage repetitive giving. Without gathering the name and contact information of your donors, this would be impossible.
Collecting personal information also allows you to send your donors updates on your organization, keeping them engaged and connected to your cause.
That’s why using methods like Facebook Donations where you don’t always get contact details about your supporters is not ideal. When you do get these contacts, make sure you reach out to them with your own marketing tools.
9. Fundraising Needs to Be Serious
When it comes to fundraising taboos, this is one we hear often: you can’t have fun with your fundraising and be taken seriously at the same time.
Having fun, and showing it, lets potential donors know that you and your team are passionate and happy about making a difference for your cause. Plus, who wouldn’t want to give more than they planned when they’re having a blast?
10. Nonprofits Shouldn’t Ask for Donations on Their Website’s Homepage
While it might seem too forward, this is actually one of the best places to ask for donations. Most of the traffic that comes to your website will likely land on your homepage. In fact, most nonprofits, partners, and supporters will link to your homepage when mentioning or promoting your nonprofit.
For this reason, you must make a passive fundraising ask that quickly engages visitors and motivates them to learn more about your cause or make a donation right from that page.
Abolishing Fundraising Taboos
Raising money for a good cause shouldn’t be a stressful experience. By abolishing these ten fundraising taboos, you’ll be able to create a fun atmosphere, connect with your donors, raise more money, and promote stable growth for your nonprofit.
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