Bonterra Jumpstart Report Reveals That Fundraising Continues to Be a Major Hurdle
Bonterra announced key data insights and takeaways from a recent study conducted by Jumpstart, its nonprofit capacity building program, which shed light on the challenges faced by the nonprofit community.
This nationwide survey captures the voices of nonprofits across a diverse range of missions, including human services, children and youth, education, and arts and culture. Responses were gathered from organizations located across the country, reflecting the experiences of white-led and Black, Indigenous, and people of color (BIPOC)-led nonprofits.
The report finds fundraising is a major hurdle for nonprofit organizations. With the uncertainty brought about by the post-pandemic economic landscape, local, state, and federal discretionary spending is expected to decline further, making effective fundraising even more critical for non profits to overcome operational challenges.
“This comprehensive study offers insights into the challenges faced by nonprofit organizations and reaffirms the importance of capacity building programs like Jumpstart to help drive transformative change,” said Catherine Dunlop, SVP, Impact Partners for Bonterra “The report underscores the importance of understanding and addressing the needs of our nonprofit communities and providing the resources needed to build their financial resilience. It’s a powerful dataset that we hope will further conversations on the state of nonprofit sustainability.“
Other key takeaways from the report include:
- The majority (71%) of respondents rate their ability to manage a successful annual fund as fair, poor, or nonexistent, with only 5% reporting excellent performance.
- The most common barrier to operational success identified by respondents is “raising money, fund development.”
Most respondents (54%) say their board’s reaction when asked to fundraise is either “hesitant” or “defensive.”
- Nonprofits struggle most with supporter cultivation, including upgrading donors to major gift levels, acquiring new individual gifts, and developing fundraising plans.
- Nearly 40% of respondents actively use fundraising technology, while 60% do not.
- An overwhelming 86% of respondents would invest additional funding in fundraising support if a guaranteed return on investment were ensured.
- White-led nonprofits are more likely to have access to advanced fundraising technology systems and express greater confidence in their fundraising efforts compared to their BIPOC-led counterparts.
Nonprofit organizations play a pivotal role in driving positive change globally, but it is clear from this data that they still frequently face significant obstacles in diversifying revenue streams, sustaining their missions, and engaging communities. Creative thinking and exploring new avenues for generating unrestricted funding are key to overcoming these challenges. Nonprofits that can adapt to changing circumstances and enhance their fundraising efforts will be better positioned to ensure financial security and continue their invaluable work.
The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of the staff of NonProfit PRO.