With high unemployment rates and a challenged economy, many nonprofits received a lower number of donationsthan they had hoped for in 2009. Some may be tempted to cut back on acquisition funding in order to save dollars in the short term; however this could result in a bigger loss over time than many organizations realize.  Statistics show that about 20% of the number of donors acquired in a given year will continue to contribute to the organization for the next five years. This could result in huge losses in the long run.

In an article we recently read from www.nptimes.com, we found 8 tips for finding new donors. In summary they are:

• If you are under pressure to reduce acquisition costs consider trying to at least keep a level that will maintain the current number of active donors.
• Send donation request letters during months that have historically proven to be the most effective: January – May.
• If you have to reduce your acquisition budget, do so by eliminating the lowest performing lists from your campaigns.
• Send multiple requests to people who have donated more than once in the past.
• Ask your list broker if you can re-use names from better performing lists and make sure they have negotiated the best possible net name arrangements for you.
• Try to re-connect with long-lapsed donors.
• If you have corporate partnerships, ask them if they have consumer names that can be made available to you.
• Decrease the cost of your acquisition packages by reducing inserts and multi-colored printing.

To read the entire article, click here.

In a challenged economy Nonprofits tend to feel the strain even more than the for-profit sector. However there is an upside – the struggles posed by the current conditions provide a great opportunity to make some significant changes in the world of nonprofits. In a recent whitepaper by Nell Edgington, of Social Velocity she shares some great ideas for restructuring the way the entire nonprofit sector is funded, and also mentions some things you can do right away to raise more money, and we thought we’d discuss them with you here. The unique challenges you are facing present an opportunity to learn, grow and become even stronger for the future.

Are your Mission, core Competencies and Fundraising Efforts Aligned?

The ultimate mission of your organization should be supported by your core competencies and then both of these should help you generate money. A nonprofit is one of three important groups within a community. You have the group that has a need, the group that can fund that need, and the nonprofit that connects the two together. Fundraising then is about connecting those with resources to those that need your support.

Do you have a plan?

If you are asking for support, which all nonprofits do – you should have a clear plan in place, and a great way to communicate to your donors regarding the steps you’re taking to make a difference. Make your goals affordable, create an annual revenue plan, and devise multiple ways to bring in money.

Do you have the right messaging?

In order to raise sustainable revenue, nonprofits have to begin to develop investors rather than donors. To do this you should focus your messaging on the impact you can have within the community you reach, rather than trying to reach a ‘donation goal’. If you can show how the end-result will have a positive impact, people are more likely to get involved, and stay in touch financially.

To obtain the whitepaper, Resetting Fundraising: 5 Ways to Raise More Money, click here and receive a free copy when you sign up for Social Velocity’s monthly newsletter.