Our friends at NonProfit PRO recently published a study that is must-read for any leader in the philanthropic industry. The report, which you can access in its entirety, is called “2018 Nonprofit Leadership Impact Study: A Look at the Challenges Nonprofit Leadership Faces and How to Address Them”.

If you are a regular reader of my blog, you will know that one of the ongoing topics is how change is happening fast, even in the nonprofit sector. As expressed in the report, 2017 was a particularly challenging year that helped pull the industry out of its “traditional fundraising mindset.” It is vital that all charities and nonprofits, especially small ones, understand what is happening in today’s environment and adapt to changes so that they can not only survive, but also thrive.

In December 2017, NonProfit PRO sent surveys to organizations to understand how groups are managing their business operations. They received 470 responses and this report is based on that methodology.

Key results:

The following are the critical findings based on the report, and more importantly, it is essential reading because you will discover ways to tackle these issues.

1. Donor loyalty: One of the most surprising results of the study was that only 8 percent of organizations focus on the donor retention rate. The vast majority of groups continually seek to attract more donors, and there seems to be a missed opportunity to cultivate sustainable donors.
2. Events: If you’ve been associated with the nonprofit sector for a long time, and in particular with small groups, it should come as no surprise that most groups raise funds through events. However, it is important to note that it costs more money to run an event than to focus on other forms of fundraising.
3. Strategic plan: Another finding that didn’t come as much of a surprise if you’re a seasoned nonprofit professional is that in this particular study, 74 percent of respondents don’t have a strategic plan. Not having a plan is another missed opportunity because it serves as a roadmap not only to where your group wants to go, but also to measure it as it goes.
4. Board Membership: The study also showed, like other reports, the problem that most nonprofits have with their board members. Seventy-two percent have difficulty motivating their board leaders to actively raise funds. 53 percent of organizations have trouble finding board members who are passionate about the cause. And 52 percent have issues with board roles and expectations.
5. Technology: Yet another missed opportunity for groups is the reality that 80 percent of groups stated that they are not using mobile fundraising. In today’s modern age, it’s important to use current fundraising techniques, and that definitely includes mobile fundraising. 63 percent of organizations say their mobile fundraising efforts represent less than 20 percent of their total revenue.

Now that you are aware of the issues many nonprofit leaders face within their organizations, take a moment to download the report so you can learn how to address these challenges, especially if you run into some of the same issues.