It’s important for nonprofits that rely solely on donations from their communities to stabilize their funding streams. What does that mean? When you stabilize your funding streams you keep them consistent.
If you look up the word ‘stabilize’, you’ll find the following definition: make or become unlikely to change, fail, or decline.
This is what you want for your funding – unlikely to change, fail, or decline. Donations and supporter funding are the lifeblood of nonprofits. Without this funding, it becomes extremely difficult to meet goals and jumpstart new initiatives.
While it’s normal for funding sources to change over time, it’s always nice to have a handful of sources you can always count on. Take a look at these ways you can begin to stabilize your funding streams today.
Partnership development
Just about every large company has a department that focuses on corporate social responsibility – the team that promotes volunteerism and charitable donating among its employees.
Most companies prefer to work with nonprofit organizations that align with their own goals, mission, and values. It’s in your best interest to search for companies that fall within your industry, reach out, and see if it’s possible to begin an ongoing partnership with them. What’s in it for you? A consistent funding stream. What’s in it for them? They improve/maintain their brand image by giving back to their community. It’s a mutually beneficial relationship!
Donor outreach and engagement
On that same token of partnership development, it’s important to nurture these relationships. How? Well, there are a couple of ways:
- Network with donors
- One-on-one calls
Donors want to be kept in the loop about the new happenings and initiatives your organization is pushing. Providing regular updates and reports (for example, how their donations are making a difference) will encourage them to continue donating for years to come. Otherwise, the donor may feel a disconnect and not feel as compelled to support your organization for the long haul.
Automate donor outreach
This tip is rooted in good manners and professionalism. Whenever an organization donates, it’s absolutely necessary that you recognize the donation by thanking them for their generosity. This can be done in the form of a “thank you” note, a tailored email, or on a section of your website that is dedicated to thanking donors.
Be timely with your recognition. It’s unprofessional (and rude) to allow several months to pass before thanking a donor. The quicker you are with recognition, the more likely the donor is to give again in the future. Plus, when donors feel appreciated and valued, they’re more likely to share the news with family and friends.
This kind of word-of-mouth marketing not only comes at no cost to you, it’s also a great way to spread the word about your organization – ultimately leading to more stabilized funding streams.
