When donations start falling
July 25, 2013
Many nonprofit leaders would like to think that when they begin fundraising ventures for a good cause, they're going to be successful. After all, they're passionate about their work and it can benefit others, so why wouldn't everyone else feel the same?
That's not always the case, however - sometimes individuals choose to donate to a different campaign, they might not be financially secure or perhaps the topic just doesn't interest them. So what should administrators do in these situations?
They shouldn't just give up - then who wins? They should take heart in the fact that many others have gone through this before them. For instance, the once extremely popular Livestrong Foundation experienced an annual decline in donations for the third year in a row in 2012. However, the group did bring in $22.7 million, which is nothing to scoff at.
Much of the time, especially if declines reflect a dismal national economy, it might just be best to stick it out, follow leads for new donors or even pull efforts and restart the campaign at a better time. According to USA Today, nonprofits across the board saw less interest during the height of the Great Recession, but things began picking back up in late 2011 when the economy stabilized.
That said, the source noted that in these situations, it could take years to get back to normal, so enduring might be necessary.
Foundations and organizations that provide annual funding might benefit from nonprofit accounting software, which can help board members audit funds and make sure the correct amounts are being distributed to various programs each year.