What Emerging Nonprofits Should Prioritize
Building a nonprofit is an exciting, albeit difficult process. Whether you are the founder or not, typically those involved with an emerging nonprofit are highly passionate about the vision that they are working to bring to life, and not there because it’s just another job. Passion alone though will only get you so far, and it is not enough to build something sustainable. Emerging nonprofits often stumble because they don’t put the right structures, practices, and relationships in place early. If you’re building or growing an emerging nonprofit, here are the areas you should prioritize to position your organization for long-term success.
A Clear and Compelling Case for Support
You need to translate the vision that exists from the top down into a case for support that resonates with donors. No matter how good you think your mission is, it’s not worth much if you can’t articulate it in a way that resonates with others. This case statement the story of why your organization exists, why it matters now, and how philanthropy makes the mission possible. Without it, your fundraising will lack clarity and urgency and become one of the infinite and dreadfully generic “we serve the community” organizations with no clear purpose. Tell people how you serve the community and why that matters. If you don’t, donors will struggle to see how they can be part of the change you are promising.
Major Gifts and Donor Relationships
It may seem counterintuitive in the mainstream to focus on major gifts early, but most nonprofits will eventually discover that a small number of donors will provide the majority of funding. This is the reality, and that reality makes relationship building essential from the very beginning. Start by identifying potential lead donors in your community who already care about your mission and just go talk with them. Don’t say ‘no’ for people without even attempting a conversation. Even if your nonprofit is still small, show that you have a vision worth investing in and treat those early contributors as partners in shaping the future.
Set Policies and Procedures
Just because you’re small doesn’t mean that you’re not a professional organization. Emerging nonprofits should prioritize developing clear policies that demonstrate accountability and stewardship. This includes things like establishing a gift acceptance policy that clarifies what kinds of contributions your nonprofit will or won’t take, setting conflict of interest guidelines for staff and board, and creating financial controls to ensure transparency. These steps may not feel urgent when you are just starting out, but having them in place early is essential so that your nonprofit does not spiral out of control as you grow.
Good CRM Habits from Day One
Whether you are using a simple donor database or a more advanced CRM, or even excel spreadsheets, it is important to establish good habits with data early. Record every gift and donor interaction, track communication preferences, and make detailed notes that build institutional memory. Many nonprofits regret waiting too long to build disciplined data practices because messy records eventually lead to lost opportunities, while good data allows you to nurture relationships in a more advanced way.
Board Engagement and Leadership Development
Your board is ideally more than just your a governing body. From the start, recruit diverse, committed members who are willing to give. Set clear expectations around advocacy and governance depending on what their roles are, and continually educate your board so they grow alongside your organization. It can be difficult to make your board is active, informed, and engaged, but it becomes a devastatingly powerful multiplier of your nonprofit’s reach and impact if you do it correctly from the start.
Financial Sustainability Beyond Grants (or Events)
Many emerging nonprofits lean heavily on grants and fundraising events, but relying on these sources of revenue alone is risky. It is essential to build a diverse mix of income streams that includes individual giving, corporate giving, and other fundraising efforts. Financial diversity helps you maintain mission clarity and plan and absorb volatile giving periods.
Stewardship Systems that Keep Donors Engaged
Receiving a gift is only the beginning of the donor relationship. Stewardship is what allows you to actually convert a single gift into someone who gives regularly, and this does not usually happen by accident. Make stewardship a habit from the very beginning by expressing gratitude quickly and personally, offering regular updates about how gifts are making an impact, and recognizing donors in ways that feel meaningful to them (this will often depend on the donor). Retention is always more cost-effective than acquisition, and stewardship ensures that donor base grows.
Measuring and Communicating Impact
Funders and donors want to see that their gifts are making a difference. If they feel like their gifts go into the ether and aren’t noticed or appreciated, they will likely seek out other nonprofits where they can make a bigger impact. Emerging nonprofits should take advantage of their lack of red tape and prioritize creating simple but effective systems to measure outcomes and communicate them clearly. Don’t overcomplicate this! Collect both stories and data, share progress regularly, and be transparent about challenges as well as successes. Even doing this a little bit will go a longer way than you might think
A Culture of Philanthropy
Finally, prioritize a culture of philanthropy within your organization. Everyone including staff, board, and volunteers should see themselves as part of the fundraising effort. Fundraising is the development team’s job. but philanthropy is everyone’s job. When the entire organization views their role in fundraising being directly tied to the organization’s success, the nonprofit becomes stronger.
Need help growing your fundraising program? We’ve helped hundreds of nonprofits increase their philanthropic dollars. Reach out to us and we would love to learn more about your nonprofit!
