If you’re a regular reader to my blog, you’ll know that one of the ongoing themes is how change is happening rapidly, including in the nonprofit sector. As was expressed in the report, 2017 was a particularly challenging year that helped push the industry out of its “traditional fundraising mindset.” It’s vital for all nonprofits and charities, especially the small ones, to understand what is happening in the current environment and adapt to the changes so they can not only survive, but also thrive.
NonProfit PRO sent out surveys to organizations to understand how groups are managing their business operations. They received 470 responses, and this report is based on that methodology.
The following are the critical finding based on the report, and more importantly, it’s an essential read because you will discover ways to address these issues.
Donor Loyalty: One of the most surprising outcomes of the study was that only 8 percent of organizations focus on donor retention rate. The vast majority of groups are continually looking to attract more donors, and there seems to be a missed opportunity to cultivate sustaining donors.
Events: If you’ve been associated with the nonprofit sector for a long time, and particularly small groups, then it should come as little surprise that the majority of groups fundraise through events. However, it’s important to note that it costs more money to do an event than to focus on other forms of fundraising.
Strategic Plan: Another finding that was not much of a surprise if you’re a seasoned nonprofit professional, is that in this particular study, 74 percent of respondents don’t have a strategic plan. Not having a plan is another missed opportunity because it serves as a roadmap not only to where your group wants to go but also to measure against as you move forward.
Board Membership: The study also showed, as have other reports, the trouble the majority of nonprofits have with their board members. 72 percent have a tough time motivating their board leaders to fundraise actively. 53 percent of organizations have trouble finding board members that are passionate about the cause. And, 52 percent struggle with board roles and expectations.
Technology: Yet another missed opportunity for groups is the reality that 80 percent of groups stated that they are not using mobile fundraising. In today’s modern era, it’s important to use current techniques to raise funds, and that definitely includes mobile fundraising. 63 percent of organizations state that their mobile fundraising efforts account for less than 20 percent of their total revenue.