Debunking 4 Common Fundraising Myths
The amount of misinformation about fundraising that goes around will never cease to amaze us. It's not difficult to find information that is misguided or even blatantly wrong after a quick online search about the most effective fundraising methods. Not to worry though, we’re here to set the record straight and make sure you are fundraising using methods and information that actually works. Understanding the reality behind some fundraising myths can empower organizations to optimize their strategies and achieve better results. Here are five common fundraising myths debunked.
Myth 1: Smaller Nonprofits Can't Compete with Larger Ones
Don’t get us wrong, having more resources definitely helps. The size of an organization though doesn't necessarily determine fundraising success. Smaller nonprofits often have the advantage of closer community ties and the ability to create more personalized donor relationships. With focused and directed Major Gifts ($50,000+) strategies and the right leverage, small organizations can absolutely clean up in the fundraising space just as much as large organizations. From our experience, well-trained nonprofit personnel from small organizations can almost always compete effectively against larger, perhaps less nimble, entities.
Myth 2: Fundraising is Only About Money
Fundraising is as much about building relationships as it is about raising money. This is a relationship business, and engaging with donors, understanding their motivations, and keeping them informed about the impacts of their contributions is what will foster long-term support. Veteran fundraisers know that keeping good relationships with those both internally and externally will be the make-or-break of their efforts. Effective fundraising involves storytelling, transparency, and communication, aiming to create and maintain trust and loyalty. Most of the time it’s not purely just a transaction.
Myth 3: Successful Fundraising Depends Solely on the Cause
While having a compelling mission is essential, successful fundraising relies heavily on how the cause is presented and the operational strategies behind it. Even the most compelling missions need strong messaging, strategic planning, and the right relationships to reach potential donors and get them to contribute. This is why so many people can get frustrated when they feel like giving to their particular mission is an absolute no-brainer. The reality is if you haven’t done the work to create the message and put that message in front of the right people in a way that you know will resonate, you might not see the success that you want.
Myth 4: Fundraising Events Are the Best Way to Raise Money
We saved the best for last. If you’ve followed us for any amount of time, you know our thoughts on fundraising events. If you haven’t though, we will be perfectly clear in our semantics: Fundraising Events are far and away the hardest way for nonprofits to raise money. Now before you come for us with pitchforks and torches, we will say that fundraising events don’t always lose money. If you do the right things with your events then you will often net positive revenue from your events, and that is the trap. The issue we look at is from a time-for-dollars standpoint. Both the significant upfront investment and resources, along with the opportunity cost of not spending time on better fundraising methods make it the least efficient method to drive dollars to your bottom lines.
There’s a lot of information out there about fundraising, and it can definitely be overwhelming. We get that! However if you’re looking for the realities of what will help the people you serve the most, be mindful of the following common myths.
Looking to scale your fundraising revenue the correct way? Schedule a call with someone from our team to see if you qualify to be a PRIDE Philanthropy client. We’re happy to chat with you about ways to drive more revenue to your mission.
