There are over 1.5 million nonprofit organizations in America, and this equates to countless focuses and organizational purposes. Even with the innumerable differences between these organizations, though, the one thing that remains constant is their need for donors. Unfortunately, “making the ask” can be difficult without something to influence potential donors. Fortunately, these nonprofit finance ideas can help you do just that.
1. Conduct Annual Fundraising Drives
One of the most proven ways for financing a nonprofit is to hold an annual fundraising drive. Studies have found that a formalized yearly drive is one of the best ways to influence donors. In fact, 5 percent of repeat donors donate more than in the previous year.
Additionally, 77 percent of organizations that hosted yearly drives were on track to meet their funding goals. By comparison, only 57 percent of organizations without an annual drive said the same. These drives are obviously imperative to your goals.
2. Seek Out Government Grants
One of the most overlooked finance ideas in the nonprofit world is government grants. There are over 1,000 grant programs administered by federal agencies, so it’s hard to understand why more nonprofits don’t attempt to garner this funding.
In addition to gaining government funding, this type of financial backing can also influence individual donors. If you can point towards federal or state funding when making the ask or marketing a fundraiser, it will show potential donors that you’re a trusted organization.
There’s little else that can capture trust as quickly as being successfully vetted by the government.
3. Using the Right Finance Software
Not every finance idea is related to asking for money. As it turns out, the way your organization handles its fundraising can also influence donors. The simple fact is that we are in a digital world, and potential donors need to see that nonprofits have embraced technology.
This means utilizing fundraising software that looks professional, is easy to use and sets a donor’s mind at ease over their personal information. Instead of using third-party websites and putting your donors’ information at risk, though, consider having a company create your own fundraising software so you stand out in the crowd.
4. Donations Through Social Media
Looking back just one decade, few could have envisioned how dominant social media would become. It’s now used for everything from keeping in touch to purchasing groceries. Fortunately, it’s also possible to gain nonprofit funding through social media, and doing so can influence future donors.
This is because peer-to-peer fundraising, which occurs when someone donates because their friend did the same, has been increasing over the years. In 2017, 24 percent more donations came directly from social media than just three years earlier. In fact, social media plays a role in over one-third of donations today.
People are influenced when they see others donate on social media, so this is an area where you can’t forego a fundraising presence.
5. Frame Message Around Goals
A variety of nonprofit financing ideas influence donors, but when it comes down to it, influencing donations is all about messaging. You influence your donors through the story you tell them. Fortunately, research has delved into the best way to accomplish this.
Studies have shown that, when attempting to finance your nonprofit, you should include charity goal attainment issues. Explain to potential donors why you might not meet your goals and what this could mean for those the organization helps.
Some of the same studies found that mentioning the donations of others can also increase the likelihood of giving. This means the best way to finance your nonprofit might just be to talk about financing from others.
Nonprofit Success Isn’t Given
If you want your nonprofit to be successful, you have to get involved in the difficult work. Attracting donors has never been easy, but if you abide by just a few of the aforementioned tips, your job will be much easier.
Our team can help with the technology required for successful nonprofit finance and donations. Learn more about our NetSuite services to help your nonprofit organization thrive in the digital age.