The 9 Most Important Issues Facing Fundraisers Today [2023]

As a nonprofit fundraiser, it can be challenging to navigate the ever-evolving landscape of fundraising and donor engagement. Not to mention the exponential growth in technology and rapid developments in data management.

Add to that the fact that most development shops are under-resourced and understaffed, and you don’t exactly have a recipe for success.

9 of the Most Important Fundraising Issues

As the early 2020s give way to the mid-2020s, it can be difficult to know where to focus your efforts while there are so many different issues to contend with.

Below are the nine most important issues facing nonprofit fundraisers today, and some specific examples of how you might tackle them. Instead of worrying about all of nine them, pick two or three to work on this year.

1. Donor retention:

Retaining donors is essential for the long-term success of any nonprofit organization.

According to a study by the Fundraising Effectiveness Project, the average nonprofit loses over half of its donors each year. One way to combat this is through effective donor stewardship, which includes regular communication and updates — as well as showing donors the impact of their contributions.

Another solution is a monthly giving program, where donors make automatic monthly donations. The retention rate is much higher as a result.

2. Diversifying revenue streams:

Relying on a single source of income can be risky for any nonprofit organization. Diversifying revenue streams can help mitigate that risk and ensure the sustainability of the organization.

For example, a nonprofit should host events, apply for grants, and launch a recurring gift program to diversify its revenue streams. Every nonprofit should strive to raise major gifts and cultivate relationships with their largest and most loyal donors. You may want to consider earned-income options as well.

3. Online fundraising:

With the convenience of smartphones and more donors turning to the internet for information, it’s crucial for nonprofit organizations to have a strong online presence. This includes:

• having a well-designed website;
• utilizing social media;
• implementing online fundraising tools, such as donation forms and crowdfunding platforms.

4. Data management:

With so much information filtering in from various sources, it can be challenging to keep track of it all. Implementing a robust data management system can help nonprofit organizations better understand their donors and tailor their messaging to specific groups.

If your donor database is not providing you with the reports and information necessary to know whom to solicit, steward, and cultivate, it may be time to consider a switch.

5. Major gifts:

Major gifts from high-net-worth donors can be a significant source of funding for nonprofit organizations. However, cultivating these relationships takes time and resources.

Nonprofits should use a variety of techniques — such as personal visits and tailored communications — to foster stronger relationships with their major donors.

6. Technology:

There are nearly constant innovations regarding fundraising and technology. New apps and services emerge almost daily. Choosing the right technology for your fundraising can seem like a daunting task.

Instead of worrying about them all, try at least one or two new services a year. Get recommendations from colleagues, friends, and board members to help you move in the right direction.

7. Storytelling:

Effective nonprofits often rely on storytelling to convey their mission and the impact of their work. But with so many nonprofits vying for attention, it can be challenging to stand out.

Nonprofits should use a variety of storytelling techniques, such as:

• videos
• infographics
• and personal stories

Each of these communication methods can help your nonprofit stand out and capture the attention of potential donors.

8. Impact measurement:

Demonstrating impact is crucial for nonprofit organizations. It helps to build trust with donors and attract new supporters. Nonprofits can use a variety of tools — including both data-driven and experiential based evidence.

9. Adaptability:

The fundraising landscape is constantly changing, and nonprofit organizations must be able to adapt to stay relevant. This includes keeping up with trends in technology and social media, as well as being open to new ideas and approaches.

Pay Attention and Be Adaptable

Nonprofit fundraisers face a wide range of challenges, from donor retention to raising major gifts, and from keeping up with fundraising technology to effective storytelling. By focusing on improving any one of these nine issues at your nonprofit, you can develop more effective strategies to engage donors and achieve your mission.

That said, it’s important to remember that the fundraising landscape is constantly shifting. It’s up to you to ensure your nonprofit organization is adaptable, so it stays relevant in the long run.