Why fundraising efforts fail and how to avoid it

The new year is upon us and with it the opportunity to make a positive impact on the lives of the people around us.

So how do I improve my fundraising efforts and ensure they do not fail?

For non-profits, the ability to do this depends greatly on the generosity of their donors. While rising interest rates and inflation will likely impact giving this year, billions of donated dollars will still change hands – and you no doubt want your organisation to be on the receiving end.

Having worked with many non-profits to establish best practice charitable funds, I’ve seen my fair share of successful and not-so-successful fundraising campaigns.

Unfortunately, when the latter occurs it’s usually a big shock to the organisation and its key stakeholders. Much effort (and hope) goes into preparing for these campaigns, and dismal results can really take their toll.

This is why it’s important to invest in much-needed prep work before you even contemplate fundraising. Beyond just setting up a fund and devising an effective marketing strategy, quality preparation goes to the core of your non-profit’s culture and the perception your community has of it.   

WHY WOULD I GIVE?

Most people don’t donate to an organisation for the tax deduction. They don’t even donate because of what the organisation is doing. They donate based on their perception of the organisation and what it is doing.

For example, a school board may believe parents should be highly excited about certain results achieved or a new initiative being developed. However, this might not be further from the truth. Parents could be feeling the school has lost its way and never listens to feedback – leaving them completely disengaged. If this is the reality, what could possibly make them dig deep for a donation?

This is especially true for organisations that have experienced cultural issues in the past. While there may have been some positive changes since then, the residual perception is often difficult to shake.

Launching a fundraising campaign to a disengaged audience is almost guaranteed to disappoint. On the flip side, investing time and energy to rebuild connection and engagement can prove very positive; creating a ripple effect of passionate donors who influence one another to help out.

GAINING DATA YOU CAN TRUST

The only real way to know if your organisation is ready to launch a successful fundraising campaign is with data. You need to know what people’s perceptions are before asking them to donate. If the perception is negative, this allows you to take positive action beforehand.

Ideally, start by understanding your net promotor score. This is achieved with a survey of stakeholders asking how likely they are to recommend your organisation to another. A score of 6 or less is considered poor, while a score of 9 or 10 indicates loyal enthusiasts (exactly the type of people you want to donate!).

If you already have a net promotor score, it’s time to pressure test it. Run the survey again to see if the score has deteriorated, stayed the same, or improved.

Be wary of false positives, which may occur if previous customers or members have moved on or become so disengaged they don’t even bother to complete the survey. This frequently overlooked issue could mean a large portion of your giving community would have no intention of donating – leaving only a small portion of newer customers who are less wedded to the organisation and therefore likely to donate less.

If the net promotor score is low, it’s worth digging deeper. Send out a more in-depth survey and establish a stakeholder committee. Collate as much information as possible on what may be needed to re-engage the community. This could be as simple as improving external communications, or as complex as redesigning entire processes to address serious systemic issues.

As you create change, don’t forget to bring your community along for the journey. Show them your organisation is listening, and communicate frequently about what you’re doing and why.

Once changes have been enacted, re-test perceptions by taking another survey and collating feedback from stakeholders. In itself, this constant measuring helps your community feel more valued which has a positive effect on perceptions (and people’s willingness to give). 

You’ll know you’re ready to launch your fundraising campaign when you have the data to back it up. For example, you may be able to prove:

• Greater attendance at events
• More engagement on social media
• Improvement in survey results
• Higher positive feedback overall

Armed with an effective communications strategy, you can then launch your fundraising campaign to an engaged audience who now have a stronger connection and deeper reason for supporting your cause.

A LITTLE HELP CAN GO A LONG WAY

It’s not uncommon for board members to have little idea of what’s happening at a cultural level in their organisation – leaving them understandably confused when a fundraising campaign fails to deliver.

At RSM, we have extensive experience working with non-profit boards and stakeholders to:

• Develop effective communications strategies
• Monitor engagement initiatives
• Analyse data

When you are ready to fundraise, we can also assist with establishing a charity fund aligned with best practice.

Our goal is to help your organisation build a strong culture and positive relationships that sustain the business, so it can continue delivering valuable products and services to our wider communities.

For more information

For help preparing for a fundraising venture in your non-profit, contact Andrew Bowcher on (02) 6937 7001 or your local RSM office.