Bonterra’s Jumpstart Program Releases Comprehensive Report Revealing that Fundraising Continues to be a Major Hurdle for Nonprofit Organizations
AUSTIN, Texas, June 21, 2023 – BonterraTM, today announced key data insights and takeaways from a recent study conducted by Jumpstart, our leading 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 nonprofits 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.
About the Data-driven grantmaking report
This report is based on Jumpstart Nonprofit Needs Assessments conducted between January 2020 and December 2022 and features responses from 4,310 representatives of nonprofit organizations nationwide. The assessments revealed key insights into the struggles faced by nonprofits and the importance of addressing these issues for long-term sustainability.
The assessment provides a platform for nonprofits to openly share their challenges, enabling funders to tailor their support to the unique needs of each organization. Through this program, nonprofits receive personalized coaching and access to Bonterra’s user-friendly Guided Fundraising solution (formerly Network for Good), empowering them to raise more unrestricted funds and enhance their overall fundraising strategies.
This assessment report serves as a call to action for the philanthropic community to collaborate and address the identified challenges faced by nonprofit organizations. The end of the report outlines how various types of funders including foundations, corporations, and the public sector can leverage these insights to tailor their grant programs and provide more effective support. Together, we can empower these organizations to overcome obstacles, engage their communities effectively, and achieve their transformative missions.
See the full report at https://www.bonterratech.com/resources/data-driven-grantmaking-assessing-challenges-nonprofits to learn more about the challenges listed above and how Bonterra’s Jumpstart program is empowering grantmakers to provide invaluable capacity building support to the nonprofit community. Grantmaker and nonprofit success stories throughout the report show the program’s impact in growing the infrastructure of nonprofit organizations across the country.
Bonterra is a social good software company focused on powering those who power social impact with solutions from CyberGrants, EveryAction, Network for Good, SocialSolutions, and their respective entities making up its product family. Bonterra, which stems from the French word for “good” (bon) and the Latin word for “land”(terra) represents the exponential good that can be accomplished with the right foundation. Bonterra’s differentiated, end-to-end solutions collectively support a unique network of over 20,000 customers, including over 16,000 nonprofit organizations and over 50 percent of Fortune 100 companies. Learn more at bonterratech.com.