What Do Nonprofits Need to Focus on in 2022
2022 has arrived. After 2020 and 2021, you may be feeling worn out, refreshed, confused, or even optimistic about the new year. Regardless of where you are at, the need for a solid nonprofit strategy remains paramount. We want to take the opportunity to offer organizations a few pieces of advice to provide reassurance and help to refocus as the clock resets and fundraising, programming, and opportunities begin anew. Over the last two years, being prepared was often difficult because so many scenarios were unpredictable. That said, these four areas of focus are ones that we find instrumental in preparing for the expected and the unexpected alike. Let’s take a look.
Diversified Fundraising
We shed some light on this topic in our recent blog on A Diversified Membership Funnel, and it deserves more coverage as an important facet of preparing for the new year. We also have recently covered the importance of the End of Year Appeal for nonprofits in filling in the budget. With that said, major giving events have been affected in the previous two years with galas or auctions canceled and digital fundraising/communication becoming increasingly necessary. The point here? Don’t rely on a single channel for your fundraising. Below we have listed a few different opportunities for diversifying your fundraising.
Grants: For many organizations, grants make up a substantial amount of funding. For others, grants remain a viable opportunity for supplementing your other fundraising tactics. Research grants based on geography, mission, and foundations to find an additional chunk of funding to stabilize your budget.
Corporate Sponsorships: Your local community is an incredible resource for support. Corporations in your community provide both volunteer help with their employees as well as monetary or in-kind support. Look into corporation foundations or reach out to those firmly rooted in your community. If you lack familiarity with sponsorships, check out our blog on A Few Things You Should Know About Sponsorships.
Major Gifts: This is something that every nonprofit wants to have as a part of its fundraising portfolio. Major gifts take active efforts though. That said, often it boils down to donor relationships. Build relationships with consistent donors and follow up on previous sizeable donations as these can lead to additional, larger gifts. We recently helped our client, America’s Black Holocaust Museum, achieve a $10 million gift, the largest in the museum’s history. Read more about this gift here.
Donor-Advised Funds: A donor-advised fund is like a charitable investment account for the sole purpose of supporting charitable organizations. Donors can contribute cash, securities, or other assets into these funds for tax-free growth. Donors can create these funds to support your organization, so be sure to market the use of this tool to your supporters.
Membership: Membership is not only a new revenue stream but also a quality practice for building a more robust body of support. Members not only offer financial support but also build community and engagement which help to grow a nonprofit and expand its footprint in society. Be sure to build a membership program today.
Diversifying your fundraising strategy is not only about boosting your fundraising success by accessing new audiences and new funds, but it also protects your nonprofits from unexpected changes. If your organization was only equipped to fundraise in person when the pandemic struck, you were left with a totally unviable strategy and forced to scramble. Avoid that risk while simultaneously reaping the benefits by implementing a broad funnel of fundraising sources.
Donor Relationships
Now that we have covered different mechanisms for receiving donations, it is important to know how to treat donors across the board. In the previous few years, the importance of donor engagement has become highly prevalent. These days, fewer donors are interested in simply being passive in your mission. The best way to engage donors is to show them how their donations are affecting change. Donors are no longer willing to throw their money into a black hole and hope it makes the world better. Donors want to see the numbers and will be more willing to give when they are shown those numbers. This is a strategy that all nonprofits should implement as it boosts fundraising and builds stronger donor relationships which lead to better stability and consistent giving. Check out our blog on how to show donors the ROI. We addressed how to boost engagement by both utilizing outdoor spaces (especially effective during the pandemic) and by using community partnerships.
Leadership Development
Nonprofits, like the rest of the world, has had a unique last two years. The COVID pandemic has meant 2022, like 2020 and 2021, is a unique year. Whether you’re a museum and your visitation has been interrupted, a nonprofit relying on events for fundraising, or dealing with staff transition due to the staffing crisis across the United States strong leadership is critical. Take the time to make sure from the top down your leadership is making the right decisions, effectively and efficiently. There are some great leadership development options including our board development training program that can provide the foundation for your organizations success. And if you end up in a situation where some of your senior team has left unexpectedly, don’t forget about interim leadership options. Know you need more, but not ready to bring someone in, don’t worry we’ve got lots of educational materials in our blog on leadership.
Remain Flexible
If you had some takeaway from the previous two years, we hope you realized the need for flexibility. As the pandemic continued to affect the world, change came quickly and without warning. The economy took unprecedented turns. Vaccines were on an unexpected timeline. Mask and distancing guidelines changed rapidly. Zoom was the greatest thing ever until everyone got very (very, very, very) tired of it. Stimulus money came and went. And many other trends came and went. Being able to adapt to what is working in the moment is important in the current landscape. Nonprofits that rapidly adjusted to zoom and completed trivia nights saw fantastic success. NMBL participated in some of these fundraisers ourselves and both enjoyed and were impressed with the unique experience. We even covered four examples of nonprofits making the best of the pandemic with Four Nonprofit Triumphs During the Pandemic.
So what does this look like for 2022? Your organization cannot throw out zoom and forget about it. You may need to conduct some of your efforts digitally while implementing traditional, in-person fundraising or programming. Additionally, digital marketing methods should remain in place. Many new people went online over the last two years in order to stay updated on their interests and connect with the community. A large number of them will remain online, so it is important to stick with your social media marketing, SEO efforts, and email campaigns. An important facet of this is donor relationships as stated above. While continuing your digital efforts be sure to connect with donors in meaningful ways.
Plan. Plan. Plan.
We are all about planning here at NMBL Strategies. It is a core facet of our services and even more so, a central part of our philosophy for successfully operating a nonprofit, small business (including our own), or public-private partnership. A great first step toward achieving your fundraising goals is to establish a fundraising plan. A fundraising plan will give your team a strategy to rely on when the pressure is on or ideas seem to have dried up. Additionally, seeking out experience and proper guidance when crafting your fundraising plan can prove incredibly beneficial for young or inexperienced nonprofits. We crafted a blog explaining how to best go about writing a fundraising RFP that will further explain how to approach this undertaking. It is also important to review your strategic position, including your strategic planning needs. How long ago did you have a strategic plan conducted? Did the pandemic alter the landscape of your sector so much that your previous plan needs updating or alteration? These are factors to consider when deciding whether a strategic plan is needed. A proper strategic plan is crucial for laying a foundation for your organization. That said, all planning is crucial for your organization, and we continue to mentor and guide nonprofits toward a planning heavy approach to their mission.
Failing to plan is a plan to fail. At NMBL Strategies, we love helping our clients plan. We take the experiences and insights our team has cultivated in the 30+ years leading nonprofits and deliver them to our clients in strategic, business, fundraising plans, and more.
