How Well Are You Competing for Transformational Gifts?
When you envision the pot of philanthropic gold at the end of the rainbow, does it feel as elusive as it did when you were a child? Do you feel awkwardly frustrated when reading another press release about the organization across town that benefited from a seven-figure gift when you often have a hard time cultivating a contribution of $1,000?
At The Solvent Group, we have found that where there is tremendous generosity, there is tremendous nonprofit competition. Generous people are being pursued by numerous deserving nonprofits. And therefore, organizations that receive transformational gifts perform at exceedingly high levels for an extended period of time, executing a disciplined and thoughtful donor strategy. How effective is your organization at creating and executing major gift strategies in comparison to your nonprofit peers?
The nonprofit sector has evolved into an incredibly competitive space, parallel to the for-profit sector. This fierce for-profit competition is reflected by the staggering number of businesses that fail every year. Research indicates that nonprofits are at risk, as well—especially during the pandemic.
According to the National Council of Nonprofits:
There are approximately 1.3 million 501(c)3 organizations based in the United States and 10 million or more worldwide.
The number of nonprofits in the U.S. increased by 75% between 2000 and 2016.
And, roughly 91% of nonprofits in the U.S. have annual budgets of less than $1M.
What does this mean for you as one of the 1.3+ million nonprofits trying to raise money?
We believe it is largely contingent on how you compete—and there is much to be learned from the for-profit sector.
The Bureau of Labor Statistics found the top six reasons businesses fail include:
Not investing in the market
Business plan problems
Too little financing
Bad location, internet presence, and marketing
Remaining rigid
Expanding too fast
In your effort to raise money, how many of these reasons may be impacting your bottom line? If you raised your hand for at least one of these, we would love to help you compete at a higher level. How you compete is acutely correlated with your fundraising success, so it is imperative to find the strategy that fits your nonprofit.
Let’s have a conversation about your organization’s dreams and create a plan that helps you compete at the highest level possible. Our goal is to find the pot of gold that could transform your organization.
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