When it comes to donating resources, it’s no surprise that people want to know where their money or time is going. This is especially true when it comes to donating finances to support a nonprofit during a fundraiser or through regular giving. While you may have never thought about it before, sharing with your donors the impact their donation makes can be the key to increasing transparency and thus increasing trust. When people can see exactly where their money is going, rather than just blindly giving, they can form ties to the cause more so than before.
We’re outlining five ways to share the impact a donation dollar makes.
1. Invest in Annual Reports
Annual Reports are perhaps the best way to showcase the impact of donations all in one place. While they’re not necessarily exciting for someone outside the organization to read, they tell the story of the past year of your organization. They share where the donations went and what impact that had on the organization as a whole. To create more appealing annual reports, try utilizing more visuals, such as graphs and pie charts. Utilize infographics, photos, and data in eye-catching ways to draw people in and show them the impact their donation makes in a year’s time.
2. Create Specific Fundraisers
If you have specific needs, it is possible to create a categorical fundraiser or event that will solely go towards that need? For example, if you’re a food pantry needing to gather supplies for Thanksgiving, don’t ask for funds for your nonprofit as a whole, instead focus on the Thanksgiving drive. While that may not cover excessive costs for your nonprofit and thus not be a sustainable option for all of your fundraising, it can be a great way to get people involved in your organization. It can help donors get their feet wet, get acquainted with your mission, and then give them a reason to give to your organization far beyond just the one event or fundraiser.
3. Move Backward
Rather than start with a large number that you need to raise, work backward to measure goals into understandable “chunks.” Need $50,000 for your upcoming project to get supplies for your homeless assistance nonprofit? Instead of asking for any amount, give people a specific number. Break it down by how many people you can help with that $50,000. If you can help 500 people, that means it would cost around $100 to support each person. Giving people this tangible goal helps provide them with a feeling of ownership in your project and serves as a way to help spread the word about your fundraiser.
4. Share Success Stories
People love to know that they’ve made an impact on others with their donations. No matter what population you serve or problem you solve, share success stories regularly on your website, social media pages, or within your written correspondence. Give people examples of the work your organization has successfully completed rather than just a fact or figure. Don’t underestimate the power of storytelling when it comes to drawing people in and showing them exactly what impact their donation is making on the lives of the people you serve and the projects you handle.
5. Know Your Facts
Don’t forget about the logistics behind donation dollars. Things like overhead expenses and employee salaries shouldn’t be forgotten when sharing where dollars go. Even if a program alone takes a certain amount to fund, it’s important to not gloss over the excess costs associated with that such as; utilities, staff time, materials, etc. Having the facts on hand is a great way to make sure you have the answer when the question is asked. Finding the best ways to showcase these facts, as we mentioned above, will help you effectively share from a logistical standpoint rather than just a personal and emotional one.
What ways has your nonprofit successfully communicated the impact of donation dollars with donors? Let us know. We’re always looking for ways to improve the content we share and give you information that is applicable for your nonprofit and others around the world.