Donation Management Software for Non Profits - Tips Effective Fundraising

Fundraising means inviting voluntary contributions from people for the NGOs oriented towards a definite goal of providing service to humanity. Though the modern meaning of fundraising is not restricted to merely raising funds; rather it is now a concept of multiple advanced functions related to efficient donor management.

Non-profit organizations constantly face plenty of challenges in maintaining a regular incoming of funds which is why they need to work consistently in raising awareness to people who have the means, ways and right intention to contribute to inviting funds from them.

Immediate challenges faced by charitable trusts can be listed as:

-Uncertainty in receiving funds

-Massive Paperwork

-Unsecured Donor Data

-Maintaining Donor Retention Rate

-Secured and Smooth Transactions

To keep the focus fixed on primary need i.e. rising of funds, non-profit organizations are now required to evolve their management techniques, so they are not entirely consumed in complex transactional management, therefore they need a systematic line of functions to carry their operations such as:

1. Endorsement of the Objective:

The biggest task of a charitable trust is to present the organizational goal to the respective donors so the donors are segmented accordingly depending upon their choice of a non-profit entity.

2. Create Awareness

Raise awareness about the goals, functions and objectives and explain in the awareness program the utilization of funds of the organizations so the donors are assured about their contribution going for the right cause.

3. Technological Advancement:

It is required by the nonprofits to keep a pace with the technology, therefore, they need to upgrade their management system by shifting the database to donation management software which keeps a systematic record of every donor’s data separately on software like Charity ERP.

4. Send personalized ‘Thank you’ notes:

Every contributor expects an acknowledgment. When non-profits shift to donor management software for recording the donor’s a database like Charity ERP, it allows the NGO’s system to send the immediate receipt of the donations made which makes it more impactful than a delayed acknowledgment.

5. Online storage of database reduces paperwork:

Adapting to the technological needs of the organization, when NGOs start storing the donor’s data online on cloud-based software like Charity ERP, being one of the best non-profit donor management the software in the market, it reduces the bulk paperwork and makes the management of donor’s data smooth and effective.

To avoid a great deal of wasted time and energy, he suggests the following tips for more effectively creating and executing a fundraising strategy.

1. Set your expectations.

Right off, it is important that you understand that raising money takes time -- a lot of time -- and a strong, well thought out strategy.

The challenge is that there are tens of thousands of organizations fighting for a very limited pot of money. Also, the grind of raising money every year creates an internal motivation problem as well as an image problem, especially as the organization fails to reach sustainability after a few years.

Your goals, like your strategy, should be long term and highly focused.

2. Refine your value proposition.

Your pitch, or "case for support" as Atchley puts it, is much grander than a few goals for the end of the year. Donors want to know that your impact, and their money, is going to be used for more than a few incremental changes.

As the amount of money you seek increases, Atchley explains, so does the impact you need to demonstrate. Your organization needs to look beyond a flowery vision and develop a "transformation statement."

How is your organization going to realistically change the world?

3. Understand your IRR.

One of the most effective selling tools you can develop is to clearly understand and communicate your internal rate of return (IRR).

The IRR is a financial measure that demonstrates how a donor's money is moving the organization toward sustainability. This is especially effective for large donors, who will be more concerned with knowing that their money is going to create a long-term sustainable organization (so you don't need to ask for more money later) rather than a short-term benefit.

4. Formalize and train your team.

Atchley points out that there are numerous roles in a fundraising strategy, and it is important to pair these roles with individuals in your organization with the relative strengths. These roles include:

• Engagers: Individuals who will interact, talk and nurture relationships.
• Connectors: Individuals who can leverage networks and make valuable introductions.
• Askers: Individuals who understand the skills and timing necessary to ask for the donation.
• Stewards: Individuals who communicate with and nurture ongoing donors and promote the relationships.

If your goal includes raising a significant amount of money, you should also consider a consultant or professional fundraiser for your team. These individuals have the experience, the network and the skills necessary to take your team to the next level.

Related: Kickstarter Co-Founder's Next Chapter: A Nonprofit Discovery Platform

While hiring a dedicated fundraiser or consultant can be expensive, they may well be worth the investment if they have a significant impact on your fundraising efforts.

5. Know your audience.

While every non-profit team dreams of securing the support of a large, institutional foundation, understand that most foundations are typically one-time donors. This is because they often wish to spread their impact and ultimately want their gift to lead to sustainability.

Do not ignore individual donors, and always promote and celebrate when you receive a second gift (individuals or foundations who have given more than once), which signals that you are meeting goals and satisfying existing donors.

6. Manage your strategy.

It is easy and indeed common for organizations to "drift" from their fundraising strategy. Responsibilities and ongoing and often unexpected emergencies all add variables that can distract you from your goals.

It is critical, however, that your organization prioritize fundraising plans above all else, and review progress and make adjustments regularly.

This is also a good case for hiring a dedicated fundraiser if it fits into your budget.

7. Get creative.

Like negotiating business deals, there are numerous ways you can engage donors without simply asking for a check.

For instance, you can ask donors to pledge their support with smaller amounts spread out over a period of time. Another strategy is asking a donor to create a "matching gift," meaning that your organization needs to raise matching funds in a given amount of time to receive the gift. This signals to the donor that you are serious about raising more money and also creates urgency for new donors.

Anyone who runs a non-profit organization understands the immense challenge of raising money. With the right planning, training, team, and expectations, your organization can more effectively raise the funds needed to create sustainability and make a long-term positive impact.

Get more on this topic visit: https://charityerp.com/

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