WELCOME! This blog post is part of our “Nonprofit Challenge” series, which is a series that identifies the typical challenges nonprofits face and solutions to the problems.
Nonprofits face many challenges when it comes to financial sustainability and are unsure as to how to overcome these challenges. Most nonprofits are over-reliant on funding from outside sources including government grants which continue to be cut back over the years. Additionally, donors are continuously demanding up-to-date information on the organization’s progress, and financial statements to ensure their return on investment. This can be difficult for organizations to keep up with considering the limited resources and staff that many organizations face. Furthermore, many organizations face the challenge of engaging their communities to encourage donor support because their communities have few, if any, individuals with the financial means to support the organization. This is more so true for organizations serving low-income communities.
Now that we know the challenges. Let’s take a look at what every organization “must have” as part of their strategy.
A creative fundraising strategy. Change the organization’s fundraising techniques to focus more on fostering relationships with corporations, local businesses, and large investors that can help your organization address the issue of financial sustainability. Think big and direct your attention towards the individuals or groups that may have a vested interest in your cause and also have the financial means to contribute.
An effective marketing and branding structure. Tell more of a story to the community, investors, donors and supporters. Leverage social media, newsletter campaigns, email campaigns, etc. to show how impactful your organization is and could be for the community. Show the world all the good your organization does in a clear and a concise way.
A culture of giving. Show that donations are not just financial offerings, but that your supporters are joining a world where “giving is good”. Encourage advocacy by emphasizing the “good” of advocacy and what support for the organizations does for the community.