Fundraising is crucial to deliver a nonprofit’s mission, but many small to midsize nonprofits rely on strategies that are costly, time-consuming, and yield limited returns. With the right approach, these organizations can build sustainable revenue that go beyond merely surviving and allow them to make a lasting impact. Here are three common fundraising mistakes and tips for avoiding them.
Mistake #1: Overreliance on Special Events
Many nonprofits depend too heavily on one-time events like galas or auctions. First, there is the time commitment involved by both staff and volunteers, and this is an expensive way to raise funds. While these events can generate excitement and short-term revenue, they are resource-intensive and often result in a low return on investment. Additionally, such events can create a “flash-in-the-pan” effect, focusing attention on a single night rather than fostering ongoing relationships.
Instead of relying on occasional events, nonprofits should focus on building long-term relationships with a diverse network of supporters. Having one signature fundraising event is fine but other events can still play a role primarily as opportunities to educate and thank donors. Sustained fundraising requires a strategic approach that inspires confidence among donors by demonstrating how their contributions can lead to meaningful change over time. Through personal meetings, regular follow-ups, and meaningful updates, nonprofits can build a dedicated donor base invested in their mission.
Mistake #2: Neglecting Donor Stewardship
Nonprofits frequently invest in outreach and securing donations but fall short with donor follow-up and stewardship. Without proper follow-up, donors may feel disconnected from the impact of their gifts and are less likely to give again. A lack of communication can lead to missed opportunities for continued support and donor engagement.
Effective stewardship means making donors feel valued beyond their financial contributions. This involves timely follow-ups, thoughtful appreciation efforts, and consistent updates on how funds are used. By prioritizing stewardship, nonprofits can foster loyalty, increase donor retention, and encourage larger gifts over time. Consider developing a stewardship plan that outlines specific touchpoints and engagement strategies, ensuring donors feel an ongoing connection to the mission. Click HERE for my blog on how to include stewardship on an ongoing basis for as little as ten minutes per week.
Mistake #3: Losing Focus and Attempting to Try Too Many Fundraising Activities
Another common pitfall for nonprofits is tackling more fundraising activities than they have the resources to handle, often leading to less successful events and staff burnout. This happens when an organization jumps at every fundraising idea and leads to them chasing funding. The solution is to have a clear, written development annual plan to identify fundraising goals, strategies to achieve success, and ways to track progress.
By avoiding these common fundraising mistakes and focusing on relationship-building, stewardship, and a clear fundraising plan, nonprofits can shift from a survival mentality to one of sustainable growth and increased impact.
Cheers,
Michelle Crim, CFRE
Dynamic Development Strategies can help. We offer coaching, grant writing, and fundraising services for our nonprofit clients. We specialize in small to mid-size organizations because we understand your challenges. Please contact us for more information.