Can you afford to stop investing in fundraising?

 

Investing in your fundraising operation can have transformational results for your charity, providing the income needed to sustain your organisation’s core services, even when the economic climate is tough. Understandably, those responsible for an organisation’s finances need to monitor costs and spend budgets wisely. But, when it comes to investing in fundraising, common sense can sometimes be set aside. Here we explain why keeping income generation proactive and purposeful, even when budgets are pinched, is the best decision you’ll make.

Understandably, those responsible for an organisation’s finances need to monitor costs and spend budgets wisely. But, when it comes to investing in fundraising, common sense can sometimes be set aside. Here we explain why keeping income generation proactive and purposeful, even when budgets are pinched, is the best decision you’ll make.

Why should you take a proactive approach to fundraising?

Our experience shows that fundraising is most successful when it’s proactive rather than reactive. And proactivity requires investment. It really is that simple. If you don’t invest in fundraising in the right way, you significantly reduce your chances of fundraising success. Here’s why:

1.    A proactive approach means implementing a fundraising strategy tailored to your organisation.

This isn’t a wish-list but rather a focused action plan that recognises who your potential donors are, how they can be engaged, and what’s likely to be a deliverable timeline.

2.    It all begins with your case for support.

This must be clear, compelling and written from a fundraising perspective. Your case needs to explain why your organisation matters, the difference that it can make with philanthropic support and why the need is urgent. The most effective examples are written by people who understand how fundraising works and what motivates potential donors.

3.    Identifying who your supporters are demands research and analysis.

Research requires resources, either by in-house staff or external consultants. Either way, it takes time and investment. Without qualified prospects, successful fundraising is extremely difficult to achieve, and you increase the risk of wasting time and money on speculative approaches. You also need experienced fundraising professionals to make sure that any approach to a prospective giver is appropriate and well planned.

4.    Building strong relationships is crucial to successful fundraising.

Other than for the most emotive causes, donors give because they respect the institution, and they get on well with the people who represent it. A healthy relationship invites honest discussion and collaboration. It can open the door for a conversation about giving, recognising that philanthropy is always a matter of personal choice and that donors want to feel that they are a part of something good. The best fundraisers aren’t just asking for money - they’re building relationships year-round, through regular updates, invitations to events and personal engagement. If there are no fundraisers doing these things, it’s inevitable that donor relationships, and income, will suffer.

5.    It’s important to recognise that fundraising takes time.

Whilst some donors will respond almost immediately, the majority require lengthy cultivation and most of this will be one by your fundraising professionals. So, it’s a simple equation – no fundraisers – no cultivation - no gifts. We understand why those with fiscal responsibility may develop their own formula - money spent vs money raised – but in our experience, this ignores the fact that fundraising success will never be instant.

6.    Most successful fundraising is the result of teamwork between experienced fundraising professionals and committed executive and volunteer leaders.

However, these leaders and volunteers are usually busy people with other responsibilities. To optimise their contributions, it’s important to manage their time effectively, and make sure they receive adequate support. Without dedicated fundraisers in your organisation, it can be difficult to fulfil this essential role.

7.    Your professional team are also responsible for keeping track of, and coordinating, fundraising activity.

Without their day-to-day management of the fundraising process, your organisation will struggle to track who has been approached, who has given, and who may have declined. In addition, you’ll risk missing critical follow-up activities after cultivation events and there may be confusion about how to receive and acknowledge gifts in the most appropriate way. Without a fundraising office, these important tasks will fall by the wayside and, inevitably, donors may lose faith and trust in your organisation.

How do we navigate another crisis?

Over the past 25 years, the world has faced numerous major crises that have profoundly impacted the global economy. As fundraising consultants, our directors have navigated both the 2008 financial crisis and the more recent Covid-19 pandemic and cost-of-living pressures. Repeatedly, we see that charities who reduce their fundraising expenditure take significantly longer to recover, if at all, compared to those that continue to invest in fundraising. So, even though times are challenging, our advice to any organisation is that now isn’t the moment to cut back.

While financial challenges may force organisations to scrutinise their spending, reducing investment in fundraising is a short-sighted move that could threaten long-term success. Proactive fundraising, backed by experienced professionals, is vital for building relationships, engaging donors, and running impactful campaigns. It demands time, resources, and teamwork to foster trust and achieve results. But experience shows those who sustain their commitment to fundraising during difficult periods recover more quickly and attain greater sustainability. So, can you afford to stop investing in fundraising? Not if you see it as a strategic necessity, rather than a cost to be cut.