Many organizations around the world have been affected by the recent COVID19 epidemic. For businesses and nonprofits, the epidemic had a huge impact, especially in the way startups and nonprofits raise money. Many scheduled events and fundraisers have been canceled or postponed. People have been forced to work remotely to comply with government-set social distancing measures.
If you are a startup or non-profit organization, then you understand that fundraising can be difficult. This is especially true considering the impact of the disease in the events sector. Most non-profit organizations depend on the event industry to organize their fundraising campaigns. Despite all this, many donors have donated in different ways to various non-profit organizations.
This means that you should not give up on fundraising for your non-profit organization or business. Not everything is lost. In this article, we’ll look at the top 3 COVID19 fundraising challenges that many nonprofits are experiencing and how to overcome them.
Challenge 1: Reduction of traditional sources of finance
Most organizations, such as hospitals, libraries, museums, and educational institutions, depend on government funding, which represents between 66% and 73% of their income. In addition, grants from foundations and corporations were also a crucial source of income for many non-profit organizations. An advantage is that these sources of income are obtained annually. They are also predictable, which means that your organization can use these resources to plan its budget.
Unfortunately, both grant funding and government funding have declined markedly in recent years. This has been a severe blow to many non-profit organizations that depend on this important source of income to finance their operations.
The solution:
There is little that can be done when the government makes the policy and decision to reduce funding for particular projects during the year. However, you can watch for signs and try to predict when the government will resume support for the project area. Check to see if funding for the project will increase in the next financial year.
Start by looking at the type of budget planning the government has done for the fiscal year. Look for the main financing objectives and the current state of the economy. Another solution is to diversify your sources of income. You can also request individual donations or find corporations that can help with matching donations.
The upward trend of socialism
Socialism in this context is defined as dependence on the government to solve social problems. In 1942, only 25% of Americans believed that socialism was a good thing, compared to 43% in 2019.
This means that the number of Americans who believe that the government should solve social problems continues to grow. These expectations have a direct effect on charitable giving and philanthropy. Many people believe that it is the government’s duty to solve social problems is not a good thing. Then they are less likely to have the initiative to support private sector efforts to address the needs of society.
The solution:
One way to overcome this challenge is to use digital marketing. You can create promotional messages aimed at countering people’s unwillingness to take responsibility for social problems. Make sure the message is consistent across all marketing channels.
There are many channels that you can use. Email marketing is preferred by most nonprofits to foster good relationships between recipients of their services, donors, and growth of their brand.
The impact of religion
A recently published article noted that three-quarters of people in the United States will donate to charities or volunteer at non-profit organizations related to a religion. The article also found that they offer a lot of money to their religious institutions. The concept of giving to people is central to the teachings of most religions, including Christianity. Religious people consider themselves more generous than other people when it comes to volunteering or charity, according to the Hoover Institute.
The solution:
As with the trend of socialism, little can be done to counter established beliefs in people. This can be difficult if beliefs affect how an individual needs charity or engages in philanthropic activities. The best solution is to focus on effective messages that create a compelling case for potential donors to support your fundraising initiative.
Another possibly controversial solution is to exclude, say, atheists assuming they are unlikely to support Christian nonprofits based on this research (and vice versa). However, this can be unethical.
Fundraising can be challenging and the impact of COVID19 continues to be felt. Not making sure your nonprofit is truly ready for fundraising success can derail your campaigns, no matter your hard work.
