The Dos and Don'ts of Asking for Donations for Nonprofits

As a nonprofit organization, raising funds can be a challenging and intimidating task, particularly if you lack clarity in your communication strategies and goals.

Without a doubt, donations from esteemed individuals, foundations, or large corporations play a crucial role in fulfilling your organization's mission.

That's why we've created this comprehensive guide to help you navigate the dos and don'ts of fundraising for nonprofits. By following our tips, you'll be able to raise substantial funds for your organization and make a positive impact on the world.

Join the ranks of successful nonprofits who have used BetterWorld's proven fundraising strategies to achieve their goals. Let's work together to leverage the power of fundraising and make a meaningful difference in people's lives.

The Do's of Asking for Donations

Have a Clear Mission and Goals

Before you reach out to potential donors, sit back and make a plan setting clear goals and your objective. You may not be able to contact a donor again once you have lost the opportunity.

Hence, there is no room for simply winging it. Nonprofit organizations usually have a clear purpose and defined mission statement. Your potential donors should know how their donations will come into use to feel more connected to the cause.

Therefore devise a strategy to meet potential donors and convey your mission. Make any adjustments along the way.

Build Relationships with Potential Donors

It is more likely for a person who is already familiar with your goals and your mission to contribute to your nonprofit organization. Hence, take out time to meet with your potential donors and build a friendly relationship with them.

Begin by performing prospect research to find out more about the donor.

To extend the relationship building, show up for networking during events and other gatherings to have direct conversations with the potential donor. There is nothing like a person-to-person exchange.

The donors are more likely to contribute to someone they know, like, and respect. Moreover, this will allow you to gain a deeper understanding of the donor to customize your strategy while asking for donations.

But it will not stop here. Building a healthy rapport with the donor can result in donations pouring in regularly and their support continuing long-term.

Create a Compelling Story Around Your Cause

Storytelling is a powerful tool for evoking emotions of relatability in potential donors. It allows people to connect emotionally to the cause and see your mission as their own.

Once you create a compelling story that is authentic and relevant to your cause, the donors will gather the impact their donations will have. It can either be a personal story or those of the people you help to showcase the work you have done and will do for your mission.

Make it Easy for Donors to Give

A simple way to avoid donations is to make things complicated for the donors. If the process is insecure, involves several steps, and is difficult to carry out, the donors will be naturally reluctant to come forward.

Rather a straightforward method will be easier for all those willing to contribute to your cause.

One way to do that is to enable multiple ways of donation, preferably simple ones, for people of all age groups to donate easily. This could include setting up a post office box or a phone line specifically for donations.

Likewise making a secure website for online donations, enabling contact through email, and setting up booths at events for in-person donations should all be options available to potential donors.

The easier the navigation process, the more donations are made your way.

You can sign-up with BetterWorld and use our free and easy-to-use tool to raise more funds with less effort.

Show Donors the Impact of their Donation

After the donors can contribute through the means set up by your nonprofit, don't forget to update them on your progress. Firstly, give them a receipt or other form of confirmation such as an email of their contribution.

Next, if there has been an update on the project, inform the donors through each step. This will help them see how their donations can make a difference.

Show updates through stats and reports so that the donors can feel satisfied and appreciated for their contribution.

This leads us to...

Thank Donors and Keep Them Updated on Your Progress

Right after donors contribute to your cause, do not forget to thank them for their donation. While sending a prompt thank you message or email is a standard, there are other ways to show gratitude.

One such way is to ask the donor how they would like to be recognized for their contribution. Knowing what type of recognition is the most meaningful for them, will allow you to customize how you can appreciate the donor after they have contributed.

Also, keep them updated on all the progress including success stories and statistics so that they maintain trust in the organization and know they are a valued donor.

The Don'ts of Asking for Donations

Don't Be Too Aggressive or Pushy

The last thing to do while reaching out to donors is to push them to donate to your nonprofit organization. The donors are not bound to contribute a hefty sum without expecting anything in return for your organization.

While you are collecting donations, coming across as demanding and desperate can be off-putting for the donors.

Instead, you should gradually reach out to the donors and show them the impact your organization has already made. Over time, gradually gaining trust and showing conviction can encourage the donors to regularly donate to your organization.

You can make the donation easy for the donors with BetterWorld where you get access to tools that make donating fast, easy, and secure.

So, no matter what the urgency of your nonprofit's mission is, do not take the fast, desperate, and aggressive approach.

Don't Ignore Your Donors' Preferences or Requests

Maintaining a healthy relationship with your donors is crucial throughout your communication with them. Thus, it is important to be mindful of their requests and preferences.

If a donor insists on not receiving more updates or unsubscribing from your email list, it is your responsibility to honor that request.

You should also be willing to listen to their requests on the communication formats and fulfill them to the best of your capacity.

In the event of failing to oblige to their requests and preferences, you risk damaging a relationship beyond repair. This can result in a reluctance to donate to your cause any further.

One way to go about it is to ask for their preferences beforehand.

Whether they would like to receive updates or will the emails be bothersome?

What are their preferred means of communication and how can you reach out to them again?

Make these things clear in advance and value their choices to maintain a strong relationship with the donors.

Don't Make it Hard for Donors to Give

Sending a donation request randomly in an email, will not help with gaining donors. Even when some donors are interested in your mission, a lack of authenticity and sincerity in your approach toward donations will make it harder for them to commit to your cause.

Other obstacles in their way towards making donations such as hidden charges, the complicated donation process, and complex payment options can hinder them from contributing to your nonprofit.

Your donation process whether on-site or in-person should be free of such obstacles that can frustrate the donor making them quit as a result.

Hence, the donation process should be as seamless as possible. Make it quick with minimal steps, use clear language to avoid confusion, and give multiple payment options to limit obstacles.

Don't Overspend on Fundraising Expenses

Fundraising events are an important step in bringing sponsors to one place and collecting donations. However, it is equally crucial to retain the spotlight on your mission and avoid deflecting from it for the sake of grandiosity.

The event consisting of an auction, food, speeches, games, and decorations should not overshadow the purpose everyone is gathered there for.

Besides events, expenses may arise in fundraising strategies such as social media advertising and email campaigns.

Spending on these strategies is fruitful in reaching donors, though cost-effective tactics should be used to apply these strategies to maximize return on investment.

Moreover, to prevent over-expenditure, carry out regular audits of fundraising campaigns to identify which tactics are most cost-effective.

Don't Forget to Follow-up with Donors

It is basic etiquette to reach out to donors with a thank you message as soon as they donate. Alongside that, you should also keep them updated with any progress happening on the nonprofit's mission and where the donation is spent.

This will gain you a regular donor building up trust in the organization, though many organizations make the big mistake of not following up with the donors or showing them gratitude.

Your follow-up email after the donation should not be about whether they would like to set up a monthly donation or contribute again.

This leaves the impression that your nonprofit only cares about donation, hence, losing a potential long-term donor because of a simple mistake.

A simple thanks and regular updates go a long way in encouraging the donor to support your cause for a longer period.

Final Thoughts

While it is intimidating to ask for donations for nonprofits, it is also a privilege that people care about your cause and are willing to contribute towards it.

All you need are good strategies to reach them and avoid the mistakes that will keep them from donating.

Once you set out using the right tactics, you will be surprised by the number of people who care and are ready to contribute toward your mission.

Use the tactics discussed above to ensure that your next ask for donations brings positive results.

Nonprofits can consider using a platform like BetterWorld, which offers a range of tools and resources to help organizations run successful fundraising campaigns and achieve their goals.