Build Trust to Boost Your Donations

The more that your supporters trust you to keep your promises to put their contributions to good use, the more likely they are to donate to your cause. Donations from both individuals and businesses are critical to helping your nonprofit grow sustainably, as this type of funding typically doesn’t come with pre-conditions on how it is to be spent. When your NFP receives donations, you usually just need to ensure that they are used for a charitable purpose that advances your mission. The following three strategies will help you develop stronger relationships and greater trust with your donors and encourage greater giving.  

Use Consistent Messaging to Eliminate Confusion and Strengthen Your Brand

Do your supporters know what your organisation stands for? What images come to mind when they hear your name and tagline or see your logo? Are your messages consistent with your values and does it bring your mission into sharp focus? Use consistent messages across all your communication channels to create a strong brand identity for your nonprofit that will increase your NFP’s reputation.

Increase Transparency

One trend that nonprofits must stay on top of is donors’ growing desire for detailed information about NFP finances and activities. One way to increase understanding about your nonprofit’s position is to publish your financial results frequently. 

Release the minutes of your board meetings and hold your meetings in public so that your supporters have ample opportunity to review your NFP’s decision-making processes. Show your donors exactly how their contribution impacts your organisation, and how their donation will specifically be used to advance your mission forward!

Develop Relationships and Avoid the Hard Sell

Most of us are more likely to give to causes that resonate with us and because we have some personal connection to the mission.  Focus on open communication and building strong relationships with your current donors and prospects. Take the time to connect with them and learn what makes them “tick” as individuals so that you can show them how contributing to your NFP helps them as well as others. Reach out to your supporters on a regular basis to keep them updated on your activities and the progress that you are making.

Segment your donor lists and adjust your approach based on the frequency and size of individual donations. If someone declines to give a gift, thank them for supporting your nonprofit and ask them to continue their support in other forms. For example, just because someone can’t or won’t donate right now doesn’t mean that they are unwilling to advocate on your behalf or volunteer. Look for ways to streamline and simplify the donation process so that transactions are fast, secure and simple.

Finally, don’t forget to show your gratitude to your donors and other supporters. Automatically thank your online contributors, and follow up with a more personalised, handwritten thank you note. Or, if you prefer, you can pick up the phone and call them to show your heartfelt thanks! 

Tips to Improve Your Funding Options

Does your fundraising strategy consist mainly of a vague idea to raise “more money than last year” and little else? Without financial clarity, and a strategy to optimise your organisation’s sources for funding, your nonprofit will find it difficult, and next to impossible to secure the monies that it needs to operate at a sustainable level and create actual impact for your cause.

The following strategies can help your organisation broaden its base of financial support by increasing the number of sources it has for funding.

Grants

Rather than relying solely on donations from individuals, consider searching for grants that are a good fit for your organisation. Grants can come from Federal or State governments as well as public and private entities such as foundations and corporations.

The applications process is typically quite lengthy, and complex, and there is usually stiff competition for these funds, so your NFP can benefit by bringing on board an experienced grant writer to help them with the proposal and applications process.

Sponsorships

Instead of trying to do everything on your own, consider reaching out to third parties for help in securing funding, and other resources, that will enable you to provide services and advance your cause.

Sponsorships and other collaborations can come from the commercial and government sectors, or might involving partnering with one more parties from the not-for-profit sector that will allow each to focus on performing the work that they do well. Groups can also cooperate and allow each to access resources that the other has to increase the amount of work that is performed by both groups.

Maximise Individual Contributions

Nonprofits can increase their funding simply by looking for opportunities to maximise the number and amount of individual donations that they receive.

To accomplish this goal, your fundraising approach should seek out ways to make it easy for supporters to give online, and give by their preferred means of payment.

Focus on encouraging repeat donors by developing a monthly giving program.

Approach board members and other key influencers that are connected with your organisation to reach out to potential big donors to support your NFP with a large contribution.

Crowdsourcing platforms can be a great way to raise awareness about your cause and encourage donations when they use storytelling to illustrate what is at stake if the issue your organisation is trying to tackle remains unsolved. Options to customise the message and share the campaign easily on social media will increase the number of folks that see your plea and follow through with a contribution.

Special Events

Standard fundraising events, such as charity auctions, galas and balls can be a good way to raise funds for your organisation, but only if they are cost-effective to host. If your NFP will not make a net profit from the event that’s worth the time and effort it takes to plan the event and hold it, you may want to limit the number and type of events that you throw as part of your fundraising efforts.

Consider Options that Increase Your Capacity for Self-Funding

While nonprofits are not designed to operate at a profit, since their main function is to serve the public good, this doesn’t mean that they should operate in an unsustainable manner. Your nonprofit can increase the soundness of its finances to look for ways to self-fund its growth. Does your nonprofit have assets that can be used to fund operations?

For example, would you be able to offer beneficiaries a higher level of service if you charged a fee for certain services? Would rents or activity fees allow you to do more good work, without compromising your core mission and goals? Is there a way to invest some of your funds that will enable your organisation to generate a passive income stream that could be used to fund operations and build capacity? Would selling some products and services allow your organisation to raise the funds that it needs while remaining in alignment with your organisations values?

While each NFP’s answer will be different to questions like these, if income generating activities don’t violate your nonprofit’s values or create another conflict, they can be a good way to raise the growth supporting funds that your organisation needs to survive and thrive.

Canberra Business Twitters US$1000 for Breast Cancer

When two businesses provide a funding boost to a volunteer organisation it is worth spruiking about. Well done Kayako for running the competition.

Canberra-based software company Admin Bandit has won US$1,000 on Twitter for Bosom Buddies, a local volunteer group that supports women living with breast cancer.

Director Nerida Gill secured the donation on the popular social networking site by entering a competition run by Kayako, an international provider of online help desk software, which invited entrants to nominate a charity to receive a funding boost.

“A number of friends and family have suffered from breast cancer, so this cause is close to my heart,” Gill says. “Bosom Buddies provides vital aftercare for women who have undergone painful treatment for a disease that is frightening and often makes them question who they are as women.”

As a provider of volunteer treasurer software in community groups and a user of Kayako, Gill is also pleased to have won funding for an organisation staffed by volunteers. “Everyone at Bosom Buddies gives their time and energy simply because they care,” she says. “This kind of selfless giving is the backbone of our communities.”

Bosom Buddies is delighted with the unexpected windfall: “Nerida’s donation is like a rainbow delivering a pot of gold,” says Marilyn Brookes, chair of the organisation’s breast awareness education subcommittee. “We raise all our own funds, which is time-consuming and hard work.”

Brookes says the gift will be used to provide a range of support for those experiencing breast cancer, as well as their families and supporters, including: education materials, 24-hour telephone support, a one-on-one buddy system, hospital visits, and practical surgery aftercare in the form of soft prostheses and cotton shoulder bags to hold post-surgery tubes.

Kayako Chief Operating Officer Ryan M Lederman is also pleased to assist such a strong initiative. “We’re glad Admin Bandit chose to donate their US$1,000 to Bosom Buddies,” he says. “Breast cancer is a very important problem facing the world today.”

Lederman adds that Twitter was the perfect forum for hosting the competition. “Social networking is hot right now,” he says. “We believe in building relationships that last a lifetime and we want people to know they’re our highest priority. Twitter is one of the best ways we know to do that.”