Use These Tips to Optimize Fundraising Campaigns and Events

As you look forward to the year ahead, your nonprofit is likely already considering new ways to build on last year’s success. If your organization is like most, fundraising will undoubtedly be a central focus of your strategic plan. This is a natural time for reflection on these activities, not just because the calendar just changed, but also because you’re likely coming off your year-end fundraising pushes, GivingTuesday, and other Holiday campaigns.

If you didn’t quite reach your fundraising goals, that should be your top priority during planning for the upcoming year. After all, falling short of your fundraising goal can be demoralizing at best and downright harmful at worst.

You can improve your fundraising results by optimizing multiple aspects of your operations, from talent acquisition to board training. In this guide, we will explore tips to optimize fundraising campaigns.

1. Invest in Fundraising Staff Recruitment

For many nonprofit professionals, staff recruitment can be a daunting idea. Not only do you have to invest significant time and money into a new addition to your team, but you also can’t fully predict how they’ll impact your organization’s dynamics until they are in their role.

However, the benefits of having a full-time fundraising team far outweigh the potential drawbacks of recruitment, and is one of the most underappreciated tips to optimize fundraising campaigns. Having a staff member (or several, if the budget allows) whose entire focus is fundraising, frees up bandwidth for your team to focus on other important tasks. Plus, experienced recruits bring new skills and connections to the table, broadening your funding opportunities.

Adopting a robust recruitment strategy is key to mitigating the risks associated with hiring and finding the best fit for your organization. Here are some tips for doing so:

• Adopt hiring platforms for small organizations. Especially if you work for a smaller nonprofit, investing in a software platform might not even be on your radar due to budgetary or skill constraints. However, JazzHR suggests using a system made for small businesses and nonprofits. That way, you can efficiently organize candidate data, conduct hiring outreach, schedule interviews, and more, without "breaking the bank".
• Look for candidates with specific skills. If you’re just starting out, you might look for fundraising staff with general fundraising experience. However, as you grow and refine your recruitment efforts, search for people with particular connections or affinities. For instance, you might seek out a coordinator specializing in mid-level donor engagement if you want to expand that segment of your supporter base.
• Involve multiple staff members in the process. Recruitment can be time-intensive, so you should use all available resources to make it more efficient. Involve other staff, such as the candidate’s potential manager, in the hiring process so they can better inform your decisions.

2. Build CSR Partnerships

Corporations across the world are increasingly investing in social good initiatives. This strategy, known as corporate social responsibility (CSR), provides many benefits for businesses and nonprofits alike—nonprofits get another source of support for their mission, whereas businesses get to build strategic partnerships and improve their brand reputation. Here are some common types of CSR programs:

• Matching gifts occur when employers match employee gifts to nonprofits (usually at a ratio of 1:1).
• Volunteer grants entail employers providing a financial grant proportional to an employee’s time spent volunteering with a nonprofit. For instance, 20 hours volunteered over one year might equate to a $100 donation.
• Employee volunteerism happens when employers organize employees to volunteer for a nonprofit. The company may also provide volunteer time off to support these events.
• Payroll giving involves employers allowing employees to donate to charitable causes directly from their paychecks.

Many corporations are still building and evolving their CSR programs, so it’s often up to your nonprofit to kick off partnership discussions. Find potential partners by researching businesses that share your values or operate in your sphere, such as an animal shelter partnering with a pet store. You can also use your existing connections to build your network, such as through your Board of Directors or loyal donors.

3. Prioritize Efficiency

Not all fundraising initiatives are created equal! Efficiency is key for preserving the most resources for fundraising, so you should develop your strategy accordingly. Focus on these fundraising aspects to make the best use of your nonprofit’s limited resources:

• Donor retention. Studies show that, on average, nonprofits spend $1.50 per dollar raised to acquire a new donor, but only $0.20 per dollar raised to retain an existing one. Analyze metrics like your retention rate year-over-year and reasons for lapse so you can consistently keep donors engaged.
• Recurring donations. For many donors, it’s more sustainable to commit $10 monthly than an annual one-time gift of $120. If donors show signs of lapsing, suggest becoming a monthly donor at a lower price point to retain their support.
• Cost-effective fundraisers. Not all fundraisers need a big budget to succeed. Balance your more involved fundraising efforts with cost-effective events, such as an online product fundraiser. Also, remember that you can work with sponsors to drive down costs for any event.
• Automated tools. When optimizing fundraising operations, it can be easy to forget that your team’s time is also extremely valuable! Use fundraising software that streamlines your operations. The more menial tasks you can automate, the more bandwidth you’ll have to put toward your fundraising strategy.

No matter which decisions you make to improve efficiency, be sure they’re based on data. Use your fundraising software to find gaps in your fundraising strategy and align your approach accordingly.

4. Train Your Board of Directors

Your nonprofit should not rely solely on your fundraising staff to provide direction and open new fundraising avenues for your cause. Your Board of Directors is another viable prospect that can contribute to your goals. After all, your board members are likely well-known in the community and can bring many valuable relationships to the table. This is among the most underutilized tips to optimize fundraising campaigns.

However, for board members to serve your nonprofit effectively, you must provide specific training. During nonprofit board orientation, teach your board members how to:

• Understand key performance indicators for fundraising
• Advocate for your cause in brand-appropriate language
• Identify a qualified donor prospect
• Run peer-to-peer fundraising campaigns

Additionally, to keep them engaged, emphasize that board members aren’t alone while fundraising. Remember they are volunteers too, so you want to make the outreach process as approachable and convenient as possible. Provide an information sheet with your team’s contact details in case they have questions, and hold quarterly fundraising lessons where they can brush up on their skills.

Whether you are leading a capital campaign or organizing a more casual fundraising event, data is your best friend when determining your fundraising success. In regular all-staff meetings, reflect on your efficacy in all areas, from recruitment to CSR. That way, you can leverage everyone’s input to expand your offerings and exceed beneficiaries’ expectations.