Fundraising is a rewarding and challenging career that requires a combination of skills, strategies, and ethics. However, it also comes with some common pitfalls that can damage your reputation, relationships, and results. In this article, you will learn about six of these mistakes and how to avoid them or fix them if you have already made them.
One of the biggest mistakes you can make as a fundraiser is to approach potential donors without doing your homework. Researching your prospects is essential to understand their interests, motivations, capacity, and expectations. Without this information, you risk wasting your time and theirs, or worse, offending them or violating their privacy. To avoid this mistake, use reliable sources of data, such as your own database, public records, social media, and referrals, and tailor your messages and proposals accordingly.
A glaring yet common error is the lack of research on donors, organizations, and the overall landscape - moving forward thoughtlessly without facts, data, and benchmarks invariably leads to wasted efforts and relationships.
Donors aren't ATM machines, they're humans with passions, priorities, and (hopefully) deep pockets. So, before you dive into your pitch, do your homework! Think of it like dating (without the flowers and awkward silences). Use reliable sources: your donor database, public records, social media, even good old-fashioned referrals. Uncover their interests, motivations, and giving history. Are they a conservation champion? A tech titan with a soft spot for education? Knowing their vibe helps you tailor your message like a bespoke suit.
Research is not something that can be a one size fits all donors, etc. and should not be the end all, be all of your knowledge- while it's ill advised to go into a meeting trying to know everything you possibly can about someone, its a great idea to have a goal to "confirm" information you noticed or found through your search engines, social media, etc. It's also important to let donors tell you their story. For ex.- I was presented research from a team member that had a donor owning 3 properties. In the qualification meeting, we discussed travel/ passions outside of work and the institution. During this, I found they had recently downsized, bought a boat and had heavy tax burdens they were trying to alleviate. This led to a greater gift.
Another common mistake is to communicate poorly with your donors and prospects. This can include sending generic or irrelevant messages, being too pushy or too passive, not following up or thanking them properly, or making false or exaggerated claims. Poor communication can ruin your trust and credibility, and make your donors feel unappreciated or misled. To avoid this mistake, use clear, concise, and respectful language, listen to your donors' needs and feedback, and provide timely and honest updates and reports.
Something else to consider - fundraising heavily relies on FRIENDraising as well. Donors will be far more inclined to give when they feel they can trust you, and that should only develop from a genuine camaraderie. This step should not be rushed and allowed to develop naturally, as the intent should be trustworthiness, as opposed to a "quick ask".
A common fundraising mistake is the lack of a clear narrative. When seeking support for a company or project, there's often an excessive focus on the organization's activities, neglecting a compelling story. This overlooks the importance of a captivating narrative starting with the background of the issue. It's crucial to contextualize how the problem impacts society and then demonstrate how the investing company can contribute to mitigating this challenge. Skills in crafting an engaging narrative are crucial for communication professionals. They enable the development of sensitivity, increasing the chances of success in obtaining necessary resources.
Another huge downfall is poor communication full of assumptions rather than thoughtful, tailored outreach expressing what matters most. Even with the best intentions, sloppy messaging severely impacts credibility.
A frequently overlooked yet crucial aspect of successful fundraising is the art of expressing sincere gratitude. Failing to genuinely thank donors can deter potential supporters and alienate longstanding contributors. Cultivating a sense of appreciation is pivotal for building trust and fostering long-term relationships. Never underestimate the power of acknowledging contributions, whether through personal messages, formal appreciation letters, or special recognitions. A modest gesture of gratitude can make a significant impact and fortify donor loyalty
Honest, prompt and genuine conversations are what is needed. These may not always be with the decision maker but treating everyone in the chain as a vital element is important. Respect their time, their role and most importantly listen to what they are saying and not saying. Showing appreciation for everyone and demonstrating that you have listened is one element to building trust and strengthening relationships that I find is often undervalued and overlooked.
Setting goals is important for any fundraiser, but they have to be realistic and achievable. Unrealistic goals can lead to frustration, burnout, or unethical behavior, such as cutting corners, inflating numbers, or compromising quality. Unrealistic goals can also disappoint your donors and stakeholders, who may lose confidence in your ability or impact. To avoid this mistake, use SMART criteria (Specific, Measurable, Achievable, Relevant, and Time-bound) to define your goals, and track and evaluate your progress regularly.
The idea of "unrealistic goals" are often laid at the feet of employers or leaders or the board. And while that can be true, its not always the only source of strife. Often as fundraisers, we set the goals and expectations for ourselves wildly and unrealistically high. We quietly believe if we're *really* good at our jobs we could get a check or firm commitment for partnership at the first meeting. We feel one solid conversation--and our passion and talent for talking about our mission--should be more than enough to help them make a commitment. Follow-up questions? Requests for data or stories? What did we do wrong?! Nothing. Fundraising is about relationship building. It's about stewardship. Its about trust. Not just the ask or urgency.
Managing expectations from the outset is critical for fundraisers. Often, especially in smaller organizations, there's an assumption that new fundraisers will instantly boost budgets with existing donor pools. It's tempting to be overly ambitious during onboarding, but setting realistic expectations early protects both your career and well-being, as well as team dynamics.
“ Unrealistic goals” is equivalent to “lack of patience.” Fundraisers operate under two kinds of timetables: their own timetable for success with a particular donor and the donor’s timetable. The donor’s timetable takes priority, always. That’s especially true when courting a major gift. Whether the donor is an individual, such as a CEO, or a group, such as a board, donors time gifts by season, by internal budgets, by tax implications, and by PR and marketing. Do all the things recommended in this wonderful post, but understand always that you need to be patient and work within the schedule of the donor, not your own schedule. That emphasis on patience is what distinguishes philanthropic fundraising from every other form of sales.
Setting unrealistic financial or impact goals also destroys trust if unable to follow through. It helps to have an extensive understanding of organizational capacity and culture first before reaching for the stars.
Diversity is not only a moral value, but also a strategic advantage for fundraisers. Diversity can help you reach new audiences, tap into new sources of funding, and create more inclusive and effective solutions. However, many fundraisers make the mistake of ignoring or neglecting diversity in their teams, networks, or programs. This can limit your opportunities, perspectives, and innovation, and expose you to criticism or backlash. To avoid this mistake, embrace diversity in your hiring, training, mentoring, and partnering practices, and seek feedback and input from diverse groups and communities.
A laser-focus on diversity in all aspects translates to expanded funding opportunities, innovative programs and lasting credibility. In an increasingly multi-cultural society, those who integrate inclusion in their DNA will sustain more relevance, impact and community trust long-term. It's not only the right thing to do - it's strategic fundraising brilliance.
Ethics are the foundation of fundraising, and any violation of them can have serious consequences for your career. Ethical breaches can include misusing funds, lying or plagiarizing, breaking confidentiality or privacy rules, or engaging in conflicts of interest or fraud. Ethical breaches can damage your reputation, credibility, and integrity, and lead to legal or disciplinary actions. To avoid this mistake, follow the codes and standards of your profession and organization, disclose any potential issues or risks, and seek guidance or support if you face a dilemma or uncertainty.
High ethical standards must be at the forefront of every fundraisers’ mind. In my opinion, fundraisers must be able to advocate for donors and be willing to walk away if their organization is not upholding transparency, honesty and integrity. Ensuring public trust is so important. Never stay longer than you should, especially if you have concerns with how your organization is using and managing funds. If you think something is off, it probably is. Trust your gut!
Fundraising is developing mutually beneficial relationships between an institution and donor. At the heart of this is ethics and morals- one will never succeed at this role if these are not high. As a representative of your institution, you have a responsibility and a duty to be good stewards of your donors. If you are not honest, more concerned about the $$$ and not aware of the deep passions/ feelings/ needs of your donor as well as your institution you risk breaking the trust on which success is predicated. I've seen many fundraisers who focus on the means to an end and not on carefully developing relationships around sometimes sensitive topics both from the donor side as well as the institution.
The fundraising sector is constantly evolving and changing, and so should you as a fundraiser. Learning new skills, knowledge, and trends can help you improve your performance, adapt to new challenges, and advance your career. However, some fundraisers make the mistake of becoming complacent or resistant to learning, and miss out on valuable opportunities for growth and development. To avoid this mistake, invest in your professional education, such as courses, webinars, books, or podcasts, and seek feedback and mentorship from your peers, managers, or experts.
The key to being a successful fundraiser is a huge desire to keep learning in all facets of the job. The beauty of our work is the ways in which we continue to grow our institution, our donors capacity and ourselves through every interaction. A great fundraiser feels an itch each day to learn something new from team members, from donors, from webinars, from other stakeholders- there's always a way to acquire new information that improves your ability to do your work
It is a mistake to not invest in your fundraising team's education, learning, and growth. It is a known fact that nonprofit fundraisers have short tenures. By investing in their education and providing them with growth opportunities, you are making them stronger fundraisers. You are investing in your team and ensuring that they stay longer than the average of 16 months.
Saying things like, “I raised $5 million per year” on a résumé, cover letter, or elsewhere. You didn’t do it alone — and saying so downplays your ability to celebrate the collaborative spirit and experiences you bring to fundraising. Consider centering on how you worked with and across teams/partnerships (“the band”) to achieve philanthropy goals, instead of acting like the sole lead singer.
Being transactional instead of relationship oriented. Going for the BIG closing of a deal and failing to even have a coffee or time with whomever you want to collaborate with to ensure the fulfillment of a mission.
For those hiring fundraisers, remember they aren't superheroes! Excessive expectations can hinder progress and harm the organization long-term. Unrealistic goals lead to frustration, burnout, and even unethical behavior like inflating numbers. This can erode donor trust and confidence. To avoid these pitfalls, set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound), track progress regularly, and foster a culture of transparency and collaboration.
Improper mindset will really hurt your efforts, in so many ways. I’m not saying to rely on hope, hope isn’t a strategy. What I AM saying is to ground yourself in the truly meaningful thing you do for a worthwhile cause! You are extending an opportunity to make a difference in the lives of others to your donors, not begging for money. Not selling them on something. Your work is respectable and remarkable. Your time is as valuable as that of your donors. Hold your head up high in all that you do and KNOW the value and positive change you bring to this world.