4 Risks You Can Take that Consistently Reap Rewards for Your Nonprofit

Risk is part of life. Unless you stay at home hiding under the couch, your life consists of one calculated risk after another.

Risk is often more a perception than a reality. There are many people who are afraid of flying. Yet, you take a greater risk to your life driving on the NJ Turnpike than you do flying, and the risk isn’t even close.

Risk is also relative. It is not an uncertain gamble, or a reckless bet. Risk is manageable to some degree. It’s not all or nothing.

How risk-averse you and your board are, determines how much risk your organization can tolerate. Understanding the reward side can help.

Understanding Risk and Reward for Nonprofits

Risk and Reward are words that have a certain ring to them. They go together well. Any effort to raise funds involves some risk, and given the amount of funds raised annually … a reward. One thing is certain, if you don’t take the risk to raise funds, you certainly won’t have the reward.

Financial certainty is elusive. There’s always risk involved. That’s why it’s important you take prudent risks with your fundraising.

You’ve probably heard a popular definition of insanity is “doing the same thing over and over and expecting a different result.”

The truth is you can’t expect different results when you do the same thing over and over. If you want to raise significantly more money than you’ve raised in the past, it’s time to try something new — and that’s risky.

4 Calculated Risks that Reap BIG Rewards for Nonprofits

Here are four calculated risks your organization can take this year that will reap rewards.

1. Raise funds from individual donors.

In other words, get out there and ask for major gifts. Raising major gifts has already proven to be one of the most cost-effective forms of fundraising, so it’s a pretty safe bet.

But what are the risks?

You can insult, alienate, or upset a donor. Maybe you’ll enrage one of your most loyal donors, but probably not. The risks are low and the rewards could be great.

Raising major gifts is not too risky in the grand scheme of things. Most who engage in raising major gifts reap large rewards. Yet for some reason, many boards and staff members are afraid to take any risk to devote the time and resources necessary to reap the rewards of fully supporting a robust major gifts program.

2. Split-test your direct mail and email campaigns.

You can’t know what messaging and approach works best if you don’t test. The risk is low and the variables are the same if you try two different appeals at the same time. Even if one appeal greatly out-produces the other, you still have the reward of knowing what works best, and that knowledge can only help the next time around.

3. Consider a capital campaign.

Yes, there’s lots of work in a capital campaign and that means you risk not getting something else done. There are embedded rewards though.

Capital campaigns generate news and excitement about your organization. They give your donors something to follow as they witness the campaign’s progress. Even though these things are not dollars, they are the precursors to giving.

If it’s been more than five years since your last campaign or you’ve never had one, consider a campaign for a new building or equipment, or to raise seed money for programs and services.

4. Cancel one of your existing events.

There’s nothing that will instill fear in your board members more than telling them that you’ll be canceling one of your longstanding events.

How will you replace the income, they’ll wonder? … Really, was it making that much anyway? (if the answer is yes, don’t cancel it).

Take a close look and really evaluate the success of each of your past events. Is it worth the time and effort, or should you be trying something new?

Before canceling the event, have a plan for what you will do with your newfound time and resources instead … maybe major gift fundraising. 😊

Rewards Come to those who Take Risks

Here’s the thing … people (and organizations) who take calculated risks generally reap the rewards. If you continue to do the same things you’ve always done, there’s no opportunity for growth … you and your organization will stagnate.

Remember — even lessons learned in failure can prove to be great rewards in and of themselves. And one failure is not the end of the world.

Risks are Not Outright Gambles — They’re Based on Knowledge

Mastering Major Gifts gives you a tremendous amount of knowledge to step up your game when it comes to raising major gifts. Best of all, there’s zero risk involved — you get your first 30 days FREE and can make sure it’s working for your organization before you spend a dime.

No risk … all reward. You can’t beat that! Check it out and get started today.

What are some risks your nonprofit has taken that have reaped great reward? Tell me about it in the comments.