Nonprofits face a number of competing demands for their funds, from administrative costs, to operating expenses to the actual cost of providing benefits and services to beneficiaries. According to a January 2016 survey conducted by NFP Synergy, what you actually spend your NFP’s money on may be affecting your ability to raise funds.

Donor Expectations Effects NFP Fundraising Efforts

One of the most important findings of the survey is the insight that it provides about donor expectations and how these expectations are linked to the NFP’s reputation, support for its mission, as well as the actual level and amount of donations that it receives.

Data from the report indicates that most contributors would like to see their donations spent in the following ways:

• 58% on direct help to the NFP’s beneficiaries
• 14% on fundraising efforts
• 14% on efforts to campaign or promote change
• 14% on costs to run and operate the NFP

Some of the more surprising statistics from the report indicate that a large majority of the public, nearly 70%, see the costs to pay the salary of the NFP’s CEO as just another operational cost. Data from the report also indicate that donors may reduce or withhold donations from NFPs that don’t meet their expectations when it comes to how the NFP spends its money.

For example, according to the report, the most important factor that affects the public’s decision on whether or not to donate to a specific cause is how many beneficiaries that NFP helps in its community. While it narrowly came in second place, the amount that a specific NFP pays its CEO was also an important factor when donors decide whether or not to give to a specific charity or association.

Steps Your NFP Can Take to Shape Donor Expectations

We live in an inter-connected and interdependent world that thrives on constant news and information provided by media. Therefore, NFPs must take steps to manage their reputations and increase support for their cause by shaping their image and messages rather than allowing it to be shaped by others.

Boards and other NFP stakeholders can shape donor expectations by improving their communication about the benefits and services that the NFP provides to the community as well as providing more information about the exact roles of the NFP’s CEO and other staff members.  As donors and other stakeholders gain a more clear understanding of the actual costs associated with providing benefits and services to the community, donations and other forms of support are more likely to increase.