Nonprofit organizations need to raise funds in order to continuously carry out their efforts for their specific cause. However, fundraising must be integrated into the organizational strategy and plan to ensure success. This is because fundraising helps an organization become stronger and effective in performing their functions.
Importance of Fundraising for Nonprofits
Fundraising is important for nonprofits for a variety of reasons including the following:
- To help the organization function where money is required. Nonprofit organizations serve society by doing work for some cause or contributing to the society’s betterment. They do their work without expecting anything in return. Because they don’t have a source of money they can use, they depend on a fundraising system to fund their projects.
- Help in making plans for the organization. Nonprofit organizations nearly always emerge from great ideas from great individuals, network connections, and available resources. Organization leaders have to create a plan to avoid organizational chaos and ensure the accomplishment of certain goals.
- To gain new support. A nonprofit needs a solid base of individual supporters in order to keep going. People who have personal knowledge of the organization are often the best supporters or donors. Nonprofits should work their way outward to the general public, to reach donors through fundraising events, media, direct mail, and other marketing methods.
- Ensure sustainability of funding. Nonprofits have to raise funds to ensure sustainability of their source of funding. In the nonprofit world, nothing is permanent, and the end of the source can happen quickly. A funding mix of grants, revenues, sponsorships and gifts can guarantee sustainability for the cause.
Is Hiring a Professional to Help with Fundraising Efforts Necessary?
A nonprofit organization may have big plans for the future. However, in terms of planning how to get there, there are some roadblocks and questions along the way. That’s why they need to hire a fundraising consultant. The professional offers great help for nonprofit organizations. They help in raising funds to propel the organization towards their goals. Here’s exactly why the organization should hire the consultant.
- To get help in accomplishing their defined project and clear goals. A nonprofit can benefit from working with a fundraising consultant in initiating a specific project they wish to accomplish, creating plans on how much to raise and how many donors to expect, as well as ensuring they have a skilled staff that can help accomplish their goals.
- Decide on the services that the organization can benefit from the most. Fundraising consultants usually provide services such as strategic planning, fundraising solutions, executive search, accounting and planning, as well as leadership training. A nonprofit can choose from the services being offered based on what they need.
- Determine major projects. Most donations typically come from planned or major gifts. Thus, being able to effectively identify major or planned giving donors is important to the overall fund development of the organization. A fundraising consultant works with the main gift officer of the nonprofit to use prospect research tools which narrow down main giving contenders among donor choices.