Below you will find three main fundraising challenges that nonprofits face and how to overcome them:
Did you know that 3 out of 4 new donors acquired by your nonprofit will never make a second donation? A significant challenge that all nonprofits face is how difficult it is to retain and continuously engage their donors long term. The average donor retention rate varies from 20 to 29%, so raising that number by a few percentage points could result in thousands of new donations for your nonprofit.
There are a few things you could do to increase your donor retention:
Even though Americans donated over $440 billion to charity last year, many nonprofits still depend on government assistance to fund their programs. Government funding can come in various sources and forms, such as grants or matching gift schemes. It may serve as a safety net to support the charities experiencing fundraising difficulties.
However, as the federal and state budgets continue to decrease, it's becoming increasingly more challenging for nonprofits to secure government funding, while some charities receive no assistance at all.
Here are some things your nonprofit can do to stop relying on government funding:
Did you know that over 1 million charities and nonprofits in the US can't access non-cash gifts such as securities, cryptocurrencies, and stock? For years, stock donations have been one of the most convoluted ways of giving, making it accessible primarily to wealthy donors or donors with wealth management advisors.
Donating stock to charities has been a complex process that requires donors to spend up to weeks working with their brokers and financial advisors, filling out paperwork, and waiting for their documents to be accepted.
For charities, the process of receiving a stock gift can be just as tedious. To receive a stock donation, a charity must work with each donor individually to send and process the stock donation form, track and record each gift, send the acknowledgment letter, and ensure that the paperwork is correct for both parties.
Considering how many operational expenses nonprofits have to face, accepting stock donations used to be an expensive and time-consuming process that many organizations couldn't afford.
Overflow is a frictionless solution to help charities accept online donations of publicly-traded stock. Our platform has automated the transfer of shares to help your nonprofit organization directly accept stock donations.
With Overflow, your donors will no longer need to coordinate with brokers or financial advisors. All they would need to do is to visit your nonprofit's donate page, securely connect to their brokerage account, and select the shares they want to give. Overflow will take care of the rest.
Book a meeting with us to maximize your year-end giving appeal today!