Occasionally nonprofit fundraising misses its year-end goal. There are four reasons that happens and all of them are internal:
Will – The individual(s) responsible for fundraising is the wrong person for the job. Perhaps a good person but he or she lacks the will (interest, motivation, courage, commitment, etc.) to do the job.
Skills – It is the right person but they lack the necessary training.
Process – It is the right person with the right skills but the organization needs a more refined process.
Value – The donors and prospective donors are unable to see sufficient value in the services offered to justify being more supportive.
At the last nonprofit board meeting of the year or the first board meeting of the next year, it is common to hear someone from the fundraising team tell the board why there is a shortfall. Unfortunately, what the board often hears sounds like excuses and blaming others for the shortfall.
There are always going to be shifts in the economy (plant closings, recessions, hyperinflation, and tax law changes). The appropriate response is to adjust the nonprofit’s processes. Sometimes the economic change is a surprise and it is impossible to adjust the process in time to save the year. However, it is important to tell the board the necessary adjustments were made. This time next year, the board should be listening to a glowing report that verifies the adjustments worked.
There will be disasters. Those disasters deserve the support of your donors. The value of your mission and services must be so compelling that your donors continue to provide the same level of support while also providing the support the disaster deserves. If the mission and services lack compelling value, the board needs to be told that the sustainability of the organization is at risk.
There will always be disruption in the market or new competitors entering the market. If the competitor plans to survive, they must try to attract the attention of your donors. Your only defense is to sharpen your process and increase your nonprofit’s value to the community. If a lack of value is undermining donor support, the board needs to be told.
It is impossible for the board to make good decisions without candid and frank input from you. There are dozens of nonprofits that close every year because their boards had insufficient information to make the right decisions. You are one of the board’s most important sources of good information.
Next Step:
Make sure the board always has the information it needs to partner with you to ensure fundraising success and the long-term sustainability of your nonprofit
Determine the best threat response to your fundraising goal as soon as you become aware of them
Develop a list of expected results from your threat response so you can quickly determine if the response is producing the desired success
Nonprofit fundraisers play a more important role than most of us realize. They are usually the first to see a problem. It means they have the opportunity to be the first to report the problem. They also have the experience and knowledge to promote the best solution. It takes courage to ask for generous gifts. It takes the same courage to deliver candid and frank market assessments to the leadership and the board. Your courage, candor, and frankness has the potential to ensure that those who need services from your nonprofit will always be able to receive services.
