Increase Your Nonprofit’s Chances of Success by Avoiding These 5 Mistakes
It is hard to control all the factors that go into making a nonprofit a success. However, one way to increase your nonprofit’s chances of success is by avoiding some common mistakes. GrantWatch works heavily with the nonprofit sector; and over the years, our staff has taken note of some of the most common mistakes a nonprofit can make. Today, we are sharing 5 of these mistakes in hopes of preventing other nonprofits from falling into the same patterns.
1. Inadequate Funding
It may seem like an easy mistake to avoid, but it’s not uncommon to get into the thick of a project without having done the proper planning. Be sure to take the time to map out all the costs involved in any given project. You also want to make sure to create a well-thought-out budget at the beginning of each fiscal year. Leave room to allow for little changes needed here and there but make sure you stick to your budget as much as you can.
One way to make sure you have enough funding is to make sure you are taking advantage of all funding opportunities available. This includes participating in fundraising, reaching out to community donors and sponsors, and applying for grants. There are many grants out there for nonprofits if you know where to look. Grants are great because you don’t have to pay them back and you can apply for as many as you want, ensuring your funding never dries up.
Where Can You Find Grants?
GrantWatch is an easy-to-use and affordable grant database that lists currently close to 8,000 available grants. GrantWatch has grants from private foundations, as well as local, state, and federal government agencies.
2. Limited Donor Relationships
Fundraising is important when establishing a foundation for a nonprofit, but asking for money is only one part of the formula. If you want to maintain your nonprofit, you must reach out to your donors even when you are not looking to them for funding. People want to know their contributions are being put to good use. Whether it’s inviting them to events, sending out a newsletter, or just writing a thank-you note, you want to do all you can to engage your donor base for the long term, not just a ‘quick money fix.’
If they are on social media, make sure to add them through your nonprofit’s social media page, so you can stay in contact and they can easily see your page. Many people make the mistake of losing contact with their donors after their first donation. This can be a bad choice because it often leads to a lack of any future donations. Not only will a good relationship with a first-time donor keep them as a future donor, but it will also make them more likely to tell their friends about your organization. You might also learn that your donor can help in more ways than just monetary support, whether that means volunteering their time, skills, or equipment.
3. Lack of Board Diversity
It’s always easy to find friends and acquaintances to fill Board Member positions. However, by doing so, you end up limiting the scope of your nonprofit’s social network. You need to make sure to have the ‘widest net’ possible to help you build an effective donor base. This means really taking the time to interview potential members and assess what they will offer to your organization.
It is important to have members that have a variety of skills and contacts. This way you know you will be successful in a number of areas, rather than just one. Maybe you will have one member who is knowledgeable about social media and then another who is good at finances, or you might have a member who previously served on the city council and has a lot of contacts within the town. Without this diversity, it is likely that your nonprofit will not succeed in all the ways it needs to overall.
4. Weak Organizational Infrastructure
To increase your nonprofit’s chances of success, you need a sound organizational structure in place. As important as funding is, having a sufficient level of staffing in place is also needed. The most common nonprofit organization structure is divided into 3 main functional areas: Governance (Board of Directors), administration (Executive Director and Staff), and programs (Volunteers and Project Leaders). Develop an organizational chart and work to fill in that chart with qualified people to make sure there are no weak links.
Without this organization, staff members will be unclear about who they report to and where they fall in the decision-making process. A strong organizational infrastructure can help everyone better understand their roles within the nonprofit. Having organizational charts can also be beneficial when it comes to explaining your nonprofit to the public and can be a good reminder to staff about all the possibilities their future might hold if they stay with the nonprofit.
5. No Online Presence
One of the biggest mistakes a nonprofit can make is not having a prominent online presence. This can be extremely detrimental to a nonprofit’s chances of success. Not only does a lack of online visibility keep nonprofits from taking advantage of all the marketing tools the Internet has to offer, but it also takes away from a nonprofit’s credibility. One of the first places a funder, donor, or volunteer will look when they hear about a nonprofit is online. If there is nothing there, this does not look good for the nonprofit in question. This mistake is so simple to fix since most websites are relatively inexpensive and easy to create. Having a website for your nonprofit gives people a place to visit any time to learn more about your mission.
Social Media Benefits
Social media is also a very helpful tool when it comes to spreading the word about your nonprofit. Most people check social media daily, so you know your posts will be seen regularly. There are lots of different types of social media, but the four big platforms are Facebook, Twitter, Instagram, and LinkedIn. All of these sites allow you to add a website URL to your page that people will see when they view your profile.
With these platforms, you are able to make daily posts about the work you are doing, as well as share videos and photos of your nonprofit to add a personal touch. Social media is also beneficial when it comes to advertising for donors and volunteers. Most websites and social media platforms have an option built in that allows people to donate to your nonprofit. There is also an option to add upcoming events and invite people online at no cost.
At this point, there is no reason not to have a website or social media page. The benefits heavily outweigh any downfalls and the costs are almost non-existent.
We hope these tips will help increase your nonprofit’s chances of success! GrantWatch has provided the list below as just a small sample of the thousands of nonprofit funding opportunities currently available in the GrantWatch directory. Hopefully, these funding opportunities will also increase your nonprofit’s chances of success. Also, read here for more about common mistakes made by grant seekers when applying for grants.
Some of the Latest Grants for Nonprofits
- There are grants to nonprofits, for-profits, tribes, government agencies, IHEs, and individuals to improve the water quality of local bodies of water.
- In addition, grants are offered to eligible nonprofits for capital, operating, and program support. Funding is for community enrichment, crisis stabilization, personal and family empowerment, and emergency and basic needs.
- There are also grants of up to $5,000 to nonprofits for programs and services to enhance communities. Funding supports a range of activities in the following areas of focus: human services and basic needs, youth, and veterans.
- Additionally, grants are available to eligible nonprofits, government agencies, and faith-based organizations for activities that benefit local communities. Funding supports projects within the focus areas of arts, culture and humanities, education, environment, health and medical, and human services.
- Grants to eligible nonprofits for projects that benefit underrepresented communities. Funding priorities include the environment, health, arts and culture, workforce development, education, youth impact, human services, and legal services. Support is to assist with general operations and projects.
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