Investors understand the importance of a diversified portfolio strategy in order to mitigate risk and limit their downside exposure. Putting all eggs in a single basket is never good practice, yet, it seems that when it comes to investing in their fundraising activities, most nonprofits still insist on this approach, rather than looking to diversify and evolve their strategies. Like all good portfolio managers, fundraising leaders need to assess their organisation’s tolerance for risk and combine a variety of different strategies to tackle the changing fundraising landscape rather than to continue to play it safe, by taking familiar but increasingly ineffective paths.
Is the charitable sector in a fundraising crisis? Donations are down across the country, competition has increased, and the big players are receiving the lion's share of the donated assets. Competing for donations in this environment requires imagination and vision. Fortunately, answers may be hiding in plain sight.