Challenges Faced by Advancement Leaders
An increasingly complex fundraising environment
Advancement leaders will face several significant challenges in coming years, some within and some without their organizations. These challenges require strategic planning and effective solutions to overcome and drive long-term success.
Departments are disconnected and have competing goals
Interdepartmental collaboration is a huge challenge, particularly in large universities. Many constituents are oversaturated with solicitations and inconsistent messaging, as representatives from each part of their school life come asking them for money.
In some organizations, marketing and fundraising teams compete for budget. Others have “shadow CRM” systems to hoard their best donors. The result is inefficiency, inconsistency, lost opportunities, and poor constituent experiences.
They’re expected to do more with less
Recent federal funding cuts have exacerbated an established downward trend, with both state and federal governments granting less money for educational institutions. Combined with declining alumni in some regions due to the recession-caused Enrollment Cliff, many institutions are under increased pressure to fill financial gaps through fundraising.
Throw in a capital campaign or two, which are heavily reliant on fundraising, and advancement leaders can really struggle to meet their goals.
Fundraising is getting more complex
Charged with growing donor support with fewer resources, fundraisers must manage engagement across a spiraling number of communication channels, including email, social media, and direct mail. Scaling these efforts with limited resources can be challenging, but it's essential for maintaining strong donor relationships. A broad survey by Salesforce last year found that a lack of digital engagement training was holding nonprofits back from making the most of their digital tools and strategies. Some organizations have seen a higher service demand without the capacity to increase service delivery.
Their tech can’t handle personalized appeals
Many institutions struggle with outdated and fragmented technology systems that hinder operational efficiency. Modernizing these systems and ensuring they are user-friendly can significantly improve the management of donor data and overall fundraising effectiveness.
Planning to update and integrate fundraising systems involves mapping the inputs and outputs to the institution’s core CRM as well as understanding how different teams and systems use the data, and what for. The need for ever more sophisticated analytics and AI applications requires leaders to effectively manage and use their data in ways they never have before.