3 Fundraising Challenges All Nonprofits Face & How to Fix It


Many organizations all over the world have been affected by the recent COVID19 epidemic. For businesses and nonprofits, the epidemic had a huge knock-on impact especially on how start-ups and nonprofits raise money. So many scheduled events and fundraisers have been canceled or deferred. People have been forced to work remotely to comply with social distancing measures set by the government.

If you are a startup business or non-profit organization, then you understand that fundraising can be difficult. This is especially true considering the impact of the disease in the events sector. The majority of non-profits rely on the events industry to organize their fundraising campaigns. Despite all this, a lot of donors have donated in different ways to various non-profit organizations.

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

Challenge 1: Cut-backs on Traditional Sources of Funding

Most organizations such as hospitals, libraries, museums, and teaching institutions depend on government funding which makes up 66% to 73% of their revenues. In addition, grants from foundations and corporations also formed a crucial source of revenue for many non-profit organizations. One advantage is that these revenue streams come annually. They are also predictable, meaning that your organization can utilize these resources to plan your budget.

Unfortunately, both grant funding and government funding have reduced remarkably in the last few years. This has dealt a severe blow to many non-profit organizations that rely on this important source of revenue to finance their operations.

The solution:

There is little that one can do when the government makes the policy and decision to reduce funding on particular projects in the year. However, you can watch for signs and try to predict when the government will resume support for the project area. Check whether they will be increased funding for the project in the next financial year.

Start by looking at the kind of budget planning that the government has done for the fiscal year. Look for the primary goals of funding and the current state of the economy. Another solution is to diversify your sources of income. You can also solicit individual donations or find corporations that can help with matched donations.

The Rising Trend of Socialism

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

This implies that the number of Americans who believe that the government should solve social problems keeps on increasing. These expectations have a direct effect on charitable giving and philanthropy. Many people believing that it is the duty of the government to solve social problems is not a good thing. It, then they are less likely to have the initiative to support efforts of the private sector to address societal needs.

The solution:

One way to overcome this challenge is to utilize digital marketing. You can create promotional messages directed to counteract the unwillingness of people to take responsibility for social problems. Make sure the message is consistent in all marketing channels.

There are many channels that you can utilize. Most non-profits prefer email marketing to nurture good relationships between recipients of their services, donors, and growing their brand.

The Impact of Religion

An article published recently noted that three-quarters of individuals in America will donate to charities or volunteer in non-profit organizations connected to a religion. The article also found that they offer a lot of money to their religious institutions. The concept of giving people is central to the teachings of most religions including Christianity. Religious people are considered more generous than other people when it comes to volunteering or dealing in charity according to the Hoover Institute.

The Solution:

Just like with the trend of socialism, there’s little you can do to counter established beliefs in people. This can be hard if beliefs affect how an individual needs to charity or engages in philanthropic activities. The best solution is to focus on effective messages that create a compelling case for potential donors to support your fundraising initiative.

Another possibly controversial solution is to exclude, say, atheists assuming they are unlikely to support Christian-based non-profits based on this research (and vise versa). This may be unethical though.

Fundraising can be challenging and the impact of COVID19 continues to be felt. Failure to ensure that your nonprofit is really ready to succeed with fundraising can derail your campaigns, no matter your hard work.

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