Fundraising and philanthropy 101: a short dive into best practices
YANA summer intern Benjamin Hernandez outlines five essential fundraising and philanthropy practices every nonprofit should be aware of
Effective fundraising and philanthropy practices are vital for nonprofits hoping to maintain and expand their impact. Although passion and dedication sit at the core of these organizations, understanding key strategies and practices for successful fundraising and philanthropy practices remains pivotal to long-term success.
Since its founding in 2011, YANA has striven to empower a global community of Yale alumni, students, and friends who are committed to generating a positive social impact. Throughout the COVID-19 pandemic and in the recent past, YANA has worked towards its mission by connecting members of the Yale community to the tools and resources necessary to support their social impact careers and ventures. Over the past couple of years, YANA programming has hosted several in-person and virtual town halls, webinars, and panels on philanthropy and fundraising in the social impact space. Tuning in to these videos or just reading the summary below will give you a greater understanding of the best practices nonprofits should abide by to continue working towards your goals.
Here are a few reminders and suggestions to secure your nonprofit’s role as a force for good in communities spanning the globe.
Develop a written fundraising strategy
Any successful fundraising campaign begins with a written fundraising plan. In fact, a 2015 report found that a written fundraising plan is what will ultimately help increase individual donor giving. These plans range from simple to complex and the profundity and depth is generally at the discretion of an organization's leadership and needs. Generally, however, nonprofits should carefully outline their objectives, specific needs, development objectives and strategies and appropriate fundraising methods.
In considering a diverse array of revenue streams when drafting their plan — from individual donors, grants, corporate sponsorships, fee-based services, and events — organizations can also more effectively ensure a comprehensible and sustainable fundraising plan. Furthermore, establishing a written fundraising plan proves even more crucial to organizations hoping to launch a successful capital campaign to raise money above and beyond regular operating expenses.
Regularly revisiting this strategy over time will cement alignment with the nonprofit’s goals and mission so that it is able to continue meeting the needs of the community it intends to serve.
Build relationships and engage your donors
Sustainable fundraising is inextricably tied to relationship building. Nonprofit organizations should put much focus on cultivating meaningful connections with supporters of their mission. Careful preparation should go into making “the ask” so that it is delivered as an invitation to support an organization’s mission, as opposed to an outright solicitation for money, which can come off as transactional and off-putting to the potential donor.
In instances involving planned giving, a donor’s gift is often made in the context of their overall financial and real estate plan which might be deferred to charity for a period of years or until the donor dies. Building a relationship with donors is crucial to getting these types of donations, establishing trust, understanding a donor’s intentions, providing ongoing stewardship and ultimately identifying planned giving opportunities.
Staying up to date with the current landscape of fundraising should remain atop a nonprofit’s priorities. Understanding why people give and who they give to is important to better understanding how donors prefer to give and engage with different causes and organizations. In turn, nonprofits are better able to develop their case, strategy and leadership to meet their fundraising needs and goals.
Routinely communicating updates about the organization, expressing gratitude and recognizing donor contributions are three habits nonprofits are apt to adopt.
Embrace technology and digital platforms
Taking advantage of the novel technology brought about by the digital age will help nonprofits amplify their reach and fundraising efforts.
For instance, artificial intelligence is able to take meeting notes to streamline the process of collecting the information that is amassed in meetings, conferences and workshops. The fairly nascent industry that is blockchain technology has widespread applications that could one day revolutionize work in social impact, especially in areas involving digital identity, financial inclusion and healthcare. Moreover, digital fundraising tools, such as Qgiv and Network for Good allow nonprofits to increase their reach and visibility by establishing a more convenient manner through which to become engaged with your organization. Some platforms like Salesforce.org allow you to map out donor engagement strategies through automated tasks, reminders and emails.
Online platforms and social media are products of the digital age which can help a nonprofit connect with a broader audience and facilitate convenient donation processes that allow for an expanded network of individuals interested and involved in supporting the mission of an organization.
Collaboration and strategic partnerships
Forming alliances with other organizations, businesses or community groups can significantly enhance a nonprofit’s fundraising efforts. Successful relationships, built on a foundation of shared values or complementary causes, will allow a nonprofit to expand its reach and access new donor networks. Strategic partnerships also pave the way for joint campaigns, co-hosted events and shared resources that enable organizations to leverage each other’s strength and multiply their impact.
Resiliency
This final fundraising and philanthropy practice is vital for nonprofits in overcoming significant and potentially unexpected obstacles, such as that posed by the global COVID-19 pandemic. During the pandemic, nonprofits were forced to adapt, innovate and persevere in the face of unprecedented challenges: navigating restrictions on in-person events, economic uncertainty and increased demand for services; adapting and pivoting fundraising strategies, embracing virtual events, online campaigns and digital platforms to engage donors and supporters remotely.
Although the brunt of the toll which the pandemic was emitting on the world appears to have passed, nonprofits should be aware of the need to adapt to evolving circumstances and continue making a positive impact. Resiliency will remain a key practice for nonprofits to continue to thrive in the face of any future challenges that come their way.
Central to nonprofit success are their fundraising and philanthropy practices. By outlining and subsequently implementing a comprehensive fundraising strategy, building strong relationships with donors, embracing technology, seeking collaboration and practicing resiliency, nonprofit organizations will empower themselves to optimize their efforts and improve on their overall effectiveness.
Nonprofits’ ability to adapt to changing trends and continuously improve upon previous strategies is what will make future fundraising success a reality.