When fundraising starts to feel hard: systems and purpose red flags
Fundraising building blocks for small nonprofits
The quiet warning signs that attention is needed
When they are doing their job, fundraising systems and purpose will be running quietly in the background of a nonprofit’s day-to-day. It’s usually when something is broken or not working well that you start to see any indicators that some work needs to be done.
Systems indicators: your engine light is flashing
Here are some of the signs your systems need attention:
Complicated workarounds
Different staff using multiple tools for the same process
Errors or tasks are “falling through the cracks”
Significant time spent tracking down documentation or data
This list could go on, and honestly, most people have a really good understanding of when their systems need work, with the issue being that they don’t have the time to properly fix or update them.
Purpose indicators: when we need to pause and ask, "Ok, but why?"
Purpose can be a little more under the radar, and it’s the fundraisers who will be the first to notice something needs attention, because the lack of a clear purpose makes their job very difficult.
Your website and communications with donors and potential funders will get vague and jargony (“Help make a difference” or “your support will empower X!”)
Conversations about fundraising at the board level will go in circles – there is a good understanding revenue is required, but no clarity on the through-line from fundraising to mission impact
Someone asks: “What does your nonprofit do?” and the easiest answer is to list off the programs/services
Are there others that I missed? Comment your systems and purpose “red flags”
When nonprofits should revisit fundraising systems and purpose
No organization is a perfectly oiled machine, and both systems and purpose issues will emerge at even the largest and most successful nonprofits. Knowing that these are a normal part of the lifespan and operations of an organization however, means that there is a way to be proactive and minimize the disruption.
Systems need a regular check-in
Your core fundraising tools—donor database, online giving, and email—are most effective when they are in place early and reviewed annually. A regular review helps determine whether they still meet your organization’s needs, where friction or inefficiencies exist, and whether adjustments or changes are required.
The fundraising plan works best when it is reviewed and updated every 12 months to assess what is working, identify gaps, and set priorities and a realistic calendar for the year ahead.
Systems for specific strategies (grants, monthly giving, major gifts, legacy, etc.) will naturally evolve over time, but documenting and updating processes is especially valuable when launching a new strategy, preparing for leadership transitions, or onboarding new staff.
Purpose is more of a slow-burn
Purpose work is foundational—and sometimes disruptive—which means it doesn’t need to happen frequently. Instead, it is most valuable ahead of a new phase or season, such as:
Strategic planning: if you hire a consultant, this will be some of the first work they do, digging deep into the impact or an organization and their theory of change. If you are doing a DIY strategic plan, your vision for the future is critical– what are you trying to achieve as an organization? How are you going to get there?
Shift in fundraising approach: if you are preparing for growth, planning for a major campaign or even just changing the way you fundraise, a clear purpose at both the organizational and programs-level will provide the foundation for a strong case for support. This gives staff and volunteers what they need to do their jobs well, and mobilizes a community for enthusiastic, long-term support.
Entering these moments with a clear, shared understanding of purpose makes new strategies easier to navigate and far more likely to succeed.
Thanks for reading…
My name is Kim Peterson and I am a fundraising consultant. I help non-profits establish and scale-up individual giving programs, by building fundraising strategies and systems for growth and long-term stability.
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