Why Your Fundraising Efforts May Be Failing (And What to Do About It)
As you step into the new year, are you ready to hit the ground running toward your fundraising goal? Set yourself up for success by checking the structural integrity of your nonprofit’s three-legged stool.
But, what in the world does that mean?
I am glad you asked! For nonprofits, the journey toward fundraising success involves assessing and navigating potential pitfalls.
In my book, Become a Nonprofit Pro: 9 Common Pitfalls and How to Avoid Them, I discuss how one of the biggest pitfalls to successful fundraising is the belief that fundraising alone can solve all your problems. It takes much more than that. I like to use the analogy of a three-legged stool to symbolize the interconnectedness of programs, operations and fundraising. When used effectively together, these fundamentals answer a community’s needs and sustain a nonprofit’s mission.
Build a Strong Stool
To build a strong stool, all legs must function securely and effectively. Each piece relies on the others to work. If your operations leg is not structurally sound and doing its part, fundraising and programs will not be able to do their parts in helping to fulfill your organization’s purpose.
The Seat: Mission
The mission must be focused on the impact you want to have. To be competitive, a nonprofit’s mission should avoid duplicating services provided by other nonprofits. Demonstrating your qualifications and being able to articulate your unique value proposition become essential selling points to potential funders.
Programs Leg: Demonstrate Impact
Programs are the means through which a nonprofit fulfills its mission, and they must provide tangible proof of impact to attract funders. If you don’t have outcomes to prove your impact yet, utilize evidence-based research, learn from successful models to demonstrate how the programs will work, and make a plan to measure impact. Funders are unlikely to fund only a good idea. With it, you need to show your plan for an innovative and thought-out solution to a clear community need.
Often, when a nonprofit grows organically, it uses anecdotal evidence to support impact. But that’s not enough for funders. They need to see measurable program outcomes. So, you must have a way to track these results. Consider walking through a logic model exercise to put more structure around your program.
Operations Leg: Protect Your Mission
The operations leg of the stool refers to the procedures and systems used for day-to-day activities. Financial transparency and HR expertise are critical structural elements of this leg. While operations can often be overlooked due to tight resources, they can lead to an organization’s downfall if not handled with proper care.
In my book, I share a cautionary tale about a client who faced a race-related grievance and subsequent turmoil due to the absence of a formal performance management system. The experience underscores the vital role of having robust operations in place, as they not only help prevent potential lawsuits but also enhance clarity and accountability among staff.
Fundraising Leg: Sustain Community Impact
To ensure the effectiveness of your fundraising, make sure revenue streams are diversified with an emphasis on individual giving. Also, avoid unnecessary restrictions on donations. And never forget that you need to be financially sustainable for your mission to be viable. Your fundraising leg cannot compensate for weaknesses in the stool’s other legs.
Stability in all aspects – mission, operations, programs and fundraising – is necessary for a successful organization.
New Year’s Resolution: A Holistic Approach to Success
With the start of 2024, seize the opportunity to assess the strength of your organization’s stool and adopt a holistic approach to fundraising. Your fundraising efforts will be most successful when reinforced by impactful programs, stable operations and a mission that meets a demonstrated need.