Helping people is the core mission of nearly every nonprofit, but that mission requires funding. The economic situation, inflation, and a crowded nonprofit space have caused many people to cut back on donations and left nonprofits scrambling for resources.
Before you begin cutting programs due to lack of funding, consider these 5 ways your organization can combat declining donations. If executed properly, they can help you continue to provide vital assistance to the people you serve.
For more information on combatting declining donations, download our whitepaper Declining Donations? 5 Ways to Make Your Funds Stretch Further.
1. Show Donors That You Understand Times Are Tough
It’s hard to say “no” to a nonprofit when you believe in their cause, but sometimes personal financial troubles are too tough to ignore. Tailor your messages to let donors know that you understand the hardships they are facing – such as high prices and an uncertain economic situation. Simply relating to your donors can convince them to reconsider if a donation is feasible this year.
Even if a past donor can’t give this year, relating to their experiences helps you maintain a strong relationship for the future. Further strengthen this relationship by offering ways for supporters to provide non-financial support like volunteering or spreading your organization’s message.
Engage current contributors by letting them know that donations have fallen across the nonprofit industry. Those who can contribute may give more if they know their donations are especially important now.
2. Get in Front of Potential Donors with SEO
When donations are declining within your existing circle, expand your circle. One way to do this is by optimizing your website to give it the best chance to appear on search. This is called Search Engine Optimization – commonly shortened to SEO.
The premise of SEO is twofold – make your website easier for search engines like Google to categorize and easier for website viewers to find answers to their questions. SEO helps to bring potential donors to your website where they can learn about your mission. Then, a seamless experience makes it simple for them to donate.
3 simple ways to improve SEO are:
- Conduct a user experience audit. View your website as if you were a brand-new donor. Determine how simple it is to learn about the mission and donate. Then, adjust as needed to improve the user experience.
- Review website content. Be sure the content on your website – images, written text, testimonials, etc. – answers common questions and provides enough information to convert a viewer into a donor.
- Use keywords and metadata. Include common phrases potential donors use in your website content and metadata to improve search rankings for these terms.
3. Forge New Corporate Partnerships
Along with growing your circle online, you can increase donations by approaching new companies regarding corporate partnerships. As you do this, be sure to choose companies that align with your organizational mission and encourage employees to donate as well.
Research shows that 84% of donors say they’re more likely to donate if their employer offers a match. With a successful matching program, you can reach new donors and capture both employee and company contributions.
As you approach new companies, consider sharing first-hand accounts from people your organization has helped. Personal touches help potential donors connect with your mission and encourage them to give.
4. Take Advantage of Free Marketing Resources
There are many ways to reach new donors that don’t require a significant investment. For example, Google Ad Grant gives $10,000 per month to nonprofits for advertisements. Ads through this program have proven successful for many nonprofits, such as We Care Animal Rescue – which grew monthly adoption applications by 125%.
Outside of ads, you can take advantage of online tools that broaden your reach. Some examples include:
- Hootsuite – a tool for scheduling social media posts in advance.
- Canva – an easy-to-use graphic design platform.
- Vertical Response – an email marketing platform.
Each of these tools offers a free version or trial that can help you get your marketing efforts off the ground, but you’ll likely need the paid version for the best results.
Another way to increase your reach at little or no cost is to establish an effective newsletter program. A regular email to let your donors know how their money is being used can be integral to growing donations.
5. Make the Most of Reserve Cash with Deposit Management
Donation growth is often at the forefront of most funding conversations, but additional interest income can also be an effective way to grow revenue. Many nonprofits are hesitant to approach investing because it generally includes risk. However, the right deposit management partner can help grow interest income without additional risk.
Deposit management does not involve investing in stocks or bonds. Instead, a deposit management partner will help your organization invest in government insured CDs or Money Market Accounts. These types of government backed investments can help improve the safety of your funds while capturing nationally competitive returns.
Nonprofit Cash Stretches Further with ADM
At the American Deposit Management Co. [ADM] we help nonprofits protect and grow their cash reserves through our innovative deposit management service. If your organization would like a second opinion on your cash investment strategy, reach out to our team.
Our company helps nonprofits achieve the ultimate safety for cash reserves – FDIC / NCUA insurance, so your money is never at risk. Our proprietary fintech allows you to access full protection for your cash, above and beyond the traditional $250k limit, plus nationally competitive returns.
To learn more about our services and get started, contact us today.