3 fundraising challenges all nonprofits face and how to fix them

Many organizations around the world have been affected by the recent COVID19 pandemic. For businesses and nonprofits, the pandemic has had a very significant impact especially on how startups and nonprofits raise money. Many scheduled events and fundraisers have been canceled or postponed. People have been forced to work remotely to comply with social distancing measures put in place by the government.

If you are a startup or a non-profit organization, you understand that fundraising can be difficult. This is especially true given the impact of the disease in the juvenile sector. The majority of non-profits rely on the event industry to run fundraisers. Despite all of this, many donors have donated in various ways to various non-profit organizations.

This means that you should not give up fundraising for your nonprofit or business. All is not lost. In this article, we will go over 3 post-COVID19 fundraising challenges that many nonprofit organizations are facing and how to overcome them.

The first challenge: reducing traditional sources of financing

Most organizations such as hospitals, libraries, museums and educational institutions depend on government funding which constitutes 66% to 73% of their revenues. In addition, grants from foundations and corporations have also constituted an important source of revenue for many non-profit organizations. One of the advantages is that these revenue streams come in annually. They are also predictable, which means your organization can use these resources to plan your budget.

Unfortunately, both grant funding and government funding have declined significantly in the past few years. This has dealt a severe blow to many nonprofit organizations that rely on this important source of revenue to fund their operations.

the solution:

There is not much one can do when the government makes the policy and decision to cut funding for certain projects in the year. However, you can watch for the signs and try to predict when the government will resume support for the project area. Check if funding for the project will be increased in the next fiscal year.

Start by looking at what kind of budget planning the government did for the fiscal year. Research the primary goals of finance and the current state of the economy. Another solution is to diversify sources of income. You can also ask for individual donations or search for companies that can help with matching donations.

The upward trend of socialism

Socialism in this context is defined as the dependence on the government when it comes to solving social problems. In 1942, only 25% of Americans thought socialism was a good thing, compared to 43% in 2019.

This means that the number of Americans who believe that government should solve social problems continues to grow. These expectations have a direct impact on charitable giving and philanthropy. Many people think that it is the government’s duty to solve social problems, which is not a good thing. Hence, they are unlikely to have the initiative to support the private sector’s efforts to meet the needs of society.

the solution:

One way to overcome this challenge is to use digital marketing. You can create targeted promotional messages to counter people’s unwillingness to take responsibility for social problems. Ensure that the message is consistent across all marketing channels.

There are many channels that you can take advantage of. Most non-profit organizations prefer email marketing to foster good relationships between their beneficiaries and donors and grow their brand.

effect of religion

A recent article indicated that three-quarters of people in America will donate to charities or volunteer at faith-related nonprofits. The article also found that they give a lot of money to their religious institutions. The concept of giving to people is central to the teachings of most religions including Christianity. Religious people are more generous than others when it comes to volunteering or doing charity work, according to the Hoover Institution.

the solution:

Just like with the trend of socialism, there is not much you can do to counter the beliefs deeply held in people. This can be difficult if the beliefs influence the individual’s need for charity or engagement in charitable activities. The best solution is to focus on effective messages that create a compelling case for potential donors to support your fundraising initiative.

Another controversial solution might be to exclude atheists, for example, by assuming that they are unlikely to support Christian-based nonprofits based on this research (and vice versa). This may be unethical though.

Fundraising can be a challenge and the impact of COVID19 is still being felt. Not making sure your nonprofit is truly ready for fundraising success can derail your campaigns, no matter your hard work.

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