While there are many advantages to operating a nonprofit organization, the process also comes with plenty of potential pitfalls. After all, it is vital to raise money consistently to cover the expenses that come along with pursuing the group’s primary function. Fortunately, it is easy for newcomers in this field to learn from the successes and failures of prior organizations to address a few of the most common challenges that can present themselves throughout the life of a nonprofit.
Create a Core Group of Supporters
While reaching new donors is important, most nonprofits start off with a group of individuals who are passionate enough about the cause to give money in the interest of seeing the organization succeed. In addition to projecting a positive and trustworthy image, it is also important for such groups to leverage their early support as much as possible, thus allowing them to spread the message to their friends, family members, colleagues, and others who might eventually decide to become financial donors. A few ways to maintain the trust of supporters involve being transparent with the finances, putting as much money as possible into the core mission of the group, and obtaining recognition from a respected watchdog group such as the Better Business Bureau.
Streamline the Donation Process
It is not enough to simply present a lofty goal and show potential supporters that the organization is trustworthy. When would-be donors are faced with a complicated series of steps and forms upon starting the process of donating money, it might turn them off before they ever enter their financial information. Fortunately, technological advancements have made it much easier to collect donations. Better yet, the right app or software can keep track of all contributions so it is not difficult to find the right amounts to enter into applicable tax forms each year.
Build Long-Lasting Partnerships
Most nonprofit organizations can find local businesses, groups, or even individuals willing to attach their name to the cause. These relationships can exponentially increase the exposure that an organization has, resulting in new people learning about the mission and scope of the group and possibly being inspired to donate.