Nonprofit Fundraising Mistakes

How To Avoid Three Common Mistakes

A recent ad in "The Chronicle of Philanthropy" made this point very well. There is a picture of a couple with their checkbook. The text on the picture reads: "They don't know why to choose your organization over another, how you handle your finances, if your letter is truthful." The text ends with the question, "And you want them to donate money?"

Raise awareness of your mission. Let people know that you are good stewards of your finances. Let people know your results. Then, ask them for money.


2. No investment in donor research

When I was growing up, my father used to say, "Sometimes you have to spend money to make money."

His advice applies to fundraising. Invest time and resources in donor research.

The first place to start is with your donor records. Look for the donors who have given the largest gifts. Then look for the donors who have given the largest number of gifts. Then, look for the donors who have given recently. Make a list of those donors. They are the donors most likely to give again.

Continue to build on that relationship. Learn more about these donors. Gather information to find out what they think of your organization, why they give, what they want from their philanthropy. You can use surveys, interviews, focus groups or inserts in mailings.

There are two benefits to this approach. First, you will understand your current donors better. Second, you will have credible information that can help you find new donors or bring lapsed donors back into the fold.


3. The wrong fundraising strategy

Sometimes organizations try to implement ideas that other organizations have used successfully.

Before you do, you need to answer some key questions:

What were the specific conditions that made that idea work for that organization?

Do those conditions exist for your organization?

Do we have the capacity to implement that strategy?

What are the real costs?

What can we realistically expect to receive?

A better approach is to learn what strategies have been successful for you. Build on those strategies. Build on what you know about your capacity, your fundraising history, and your donors.

Avoid these mistakes and you will build better relationships with your donors, raise more money and create more sustainable financial support.

About The Author

Related Pages

Grant Writing Tips - Ten tips on grant writing - How to write a winning grant proposal.

Donor Recognition - How to use donor recognition to increase your capital campaign results.

Common Mistakes - Simple mistakes many nonprofit groups make and how to avoid them.

Fundraising Fundamentals - How to increase community awareness of your need and your offering.

Capital Campaigns - Capital campaign strategies for non-profit groups to increase their donor base.

What's In It For Me - To succeed, everyone needs to know "What's in it for me?"

Recruiting Volunteers - Preparation tips about the best ways to recruit volunteers.

Mission Statement For Fundraiser - How to create a mission statement for a non-profit group.

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