fundamentals

Fundraising strategy for small nonprofits


There is no question; resources for nonprofit organizations are shrinking. Private foundations, individuals, and government agencies, have all decreased charitable giving.

It was reported in the Late Fall 2011, that 59% of nonprofits reported that charitable giving was down or stagnant in 2011. Over 54% of nonprofits that receive government funding reported a decrease. Smaller nonprofit organizations (those with operating budgets under $3 million) are at greater risk of fiscal stress due to decreased contributions. See the comparisons outlined in the table below.

While all nonprofits are challenged by the current economic crisis, smaller nonprofit organizations are at greater risk for fiscal stress, and twice as likely to be overly reliant on one source of income.

A clear fundraising strategy that makes use of several funding sources is essential to the success of your organization.  

fundamentals understands the needs and limited resources of small non-profits. 

fundamentals evaluates your needs, your resources, and donor base; and designs a unique package of services to address the fundraising and marketing needs of your organization.

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The best approach...

Careful planning of your fundraising strategy should include consideration of the following approaches:

  • Design your website to include opportunities to make donations online.
  • Create direct mail and/or email campaign appeals.
  • Plan fundraising events to generate member participation and encourage donations.
  • Raise funding from private foundations and governmental grant sources.
  • Record all constituents in an effective donor database system to simplifies storage of contact information, track donations and pledges, and create analytical reports.

 

From the Nonprofit Fundraising Study - Nonprofit Research Collaborative - Fall 2011

Sign of fiscal stress Smaller Nonprofits
(Less than $3 million
Annual Operating)		 Larger Nonprofits
($3 million and up)
Cash reserves less than 3 months
of operating  expenses 		53% 37%
Over‐reliance on a limited number
of funders 		54% 34%
Declining philanthropic support 56% 34%
Over‐reliance on one type
of fundraising		 40% 17%
Uncertain cash flow due to erratic payment schedules from contractors/donors 32% 19%

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