How to Raise Money When Financial Times Are Tough
If you’re reading this, chances are you’ve been affected by rising inflation and the cost of living crisis. Most often, the discourse surrounding these topics focus on households and disadvantaged communities, but businesses and organisations have been equally hit, especially charities and non-profits worldwide.
In 2022, Charities Aid Foundation (CAF) found that 60% of people expected it to be hard to donate to worthy causes. They also reported that in April 2022, 25% of people had already cancelled a regular direct debit donation because they simply could not afford it.
As an organisation that relies on donations, creating resilient fundraising strategies that can stand the test of time can be difficult, but it’s not impossible. Givergy helps organisations maintain strong fundraising results despite the lowering pool of funds available to charitable causes. By implementing unique and exciting fundraising strategies, organisations can make a difference and continue to support their missions, even in the face of economic adversity. Keep reading to discover how you can raise more even when there is less available.
What Can Fundraisers Do?
Look at your business model
Firstly, fundraisers must assess their current fundraising approach to understand what’s working and what isn’t before areas of improvement can be discovered. This should include a thorough assessment to determine where time and money is being spent.
Are there more things you could be doing in-house? How much commission do your providers take? How much are you budgeting for events and why?
These are all areas you can look at to see if your fundraising margins can be increased. One of the ways that Givergy can help with this is with the support of our Client Account Managers (CAMs), who are experts in strategy and execution. They can help you see clearly where your spending is going and what you could do to work more efficiently.
Understand your donors
Next up, we recommend that charities and nonprofits take time to update their donor profiling. Get specific with who your audience is and analyse their donation habits. This will allow you to understand what percentage of your donor base will be more or less likely to donate and will help you to highlight upcoming gaps you may experience.
Maintaining relationships with loyal donors is always important. Still, it is time to get more strategic and understand what your donation landscape should look like over the next months and years.
Partner with a local business or charity
Another effective fundraising strategy during tough financial times is partnering with local businesses or other charitable organisations. Collaborating with businesses in the community not only helps raise funds but also strengthens relationships and builds a sense of community support.
There are various ways to collaborate with local businesses. For example, charities can approach restaurants or cafes to host a fundraising night, where a percentage of the proceeds from the evening’s sales are donated to the cause. Similarly, businesses can sponsor events or donate products or services as prizes for fundraising activities.
If your organisation shares a similar mission or cause with another charity, why not team up together to fundraise? Sometimes partnering in this way allows you to raise even more because you’re able to share networks and donors across communities.
How Can Givergy Help During The Cost-Of-Living Crisis?
The Givergy fundraising platform is designed to support charities and help them raise more, no matter what challenges are thrown their way. This is because we value innovation and design our tools with client feedback in mind. With some strategic thinking and consideration of your donor base, our tools can help you thrive during tough times.
- Use Givergy Unlimited to test different fundraising tools.
Givergy Unlimited allows you access to the entire collection of features and services we offer. This service is also called unlimited as clients can run as many campaigns as they wish throughout the year! As well as being able to trial many different fundraising methods, it also means you have the tools to react to different trends that may be impacting your donor base.
- Host virtual galas to keep overheads down for events.
In-person events are brilliant, but they can be costly. You have to consider the price of throwing the event and the travel costs that people may not wish to incur. Our virtual galas allow you to host amazing events without paying for a venue or full team of event staff.
- Price auction items differently to offer something for every budget.
This might sound simple but it can get lost when you have many auction lots to manage. By ensuring you have a range of price points people will be more likely to get involved and you can appeal to a wider audience and range of budgets.
- Make pledges more accessible.
While it is tempting to include a majority of high pledges, ensure you have something at a lower price point. Having an attainable amount will result in more overall donations, which can help you maintain a strong fundraising result. It is also more important than ever to include storytelling and examples of who the money will be helping as it makes donating harder to resist.
- Use ticketing for events in addition to donations.
Ticketing is a great way of raising funds if you’re unsure about the success of individual donations. You do not have to make the price high, but calculate an amount that is enough to make a difference to what you are hoping to raise. This also gives you a clear idea of how many people you will have in attendance so that other fundraising methods can be implemented strategically.
Has this blog given you some ideas of how your organisation can overcome financial hurdles?
Contact us to learn more or ask any questions.
Global Client Services Manager at Givergy
Ella heads up the global Fundraising & Events team. A key part of Givergy’s growth for four years, Ella has a passion for event planning and ensuring her and her teams’ clients exceed their fundraising targets. Furthermore, Ella’s exposure to some of the highest-profile fundraising events gives her a unique insight into the newest and most innovative way in which charities are engaging with their audiences.
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