Fundraising Mistakes to Avoid This Year: Key Tips 2023

Fundraising is rarely anyone’s favorite part of running a nonprofit or community group, but it’s what keeps everything running. The difference between a successful campaign and one that fizzles out often comes down to a few key habits, both good and bad. This year, you might be watching budgets even more closely, or maybe you’re just tired of seeing the same old fundraising mistakes trip up good causes.

Let’s get specific about the most common missteps — the ones that can cost you donations, waste time, and leave your supporters confused or annoyed. We’ll break down the big avoidable problems, with tips for doing better.

Start with Clear, Realistic Goals

A lot of well-meaning teams set a fundraising target—say, $50,000—because it sounds impressive or matches last year’s number. But without real reasoning, those goals are just hopeful guesses. This can leave your team overwhelmed or, worse, missing important deadlines for programs.

Instead, try breaking down your big goal into SMART targets. That means: specific, measurable, achievable, relevant, and time-bound. For example, instead of “raise more money,” go with “bring in $12,000 from 150 donors by March 31.” The more detailed your plan, the easier it is to track if you’re actually making progress.

Also, make sure your fundraising goals line up with what your organization really needs this year. If your mission is growing or shifting, your financial needs will too. Let everyone on your team see how their work ties back to the big vision.

Don’t Ignore Your Donors

Sometimes, organizations get caught up in chasing new donors and forget about the people who are already cheering them on. That’s a huge missed opportunity. Your existing donors don’t just want to give once; many are happy to give again — if they feel appreciated and involved.

This doesn’t mean bombarding people with emails every day. Instead, keep them in the loop. Share small wins, updates, and the real impact of their support. If your group helped buy uniforms for a kids’ team, snap a photo and send a quick thank you. It’s simple, honest, and people remember it.

The other thing is actually listening. Ask supporters why they gave the first time and what matters most to them. Relationships matter a lot in fundraising—probably more than any fundraising tool or tactic.

Your Website and Social Media Need Attention

Let’s be honest: A confusing or outdated website scares off potential donors. Slow load times, broken links, or clunky donation forms are all red flags. It only takes one annoying experience for someone to give up and click away.

If you haven’t updated your donation page in a while, test it from a donor’s point of view. Is it clear where the money goes? Does it work on a phone? Is it easy to find your “donate” button? If the answer is “no,” people will drop off fast.

Social media is also a huge deal. You don’t need to be everywhere, but posting regular updates on platforms your donors actually use helps your group feel real and approachable. This can be photos of events, stories from the field, or even quick videos showing what donations actually made possible.

Don’t Rely on One Type of Funding

Many organizations fall into the habit of relying too heavily on one big grant or a single generous donor. When that money disappears, the scramble to fill the gap is real. It happens to groups across the board, from animal rescues to college clubs.

Blending a few different fundraising streams—like individual gifts, corporate sponsorships, grants, or even small fundraisers—creates more stability. If one source dries up, your programs aren’t at risk.

It helps to encourage smaller monthly donations, too. Those add up and create a sense of ongoing community support. Think about what new streams you could add this year, whether that’s a peer-to-peer campaign or even hosting a small community event.

Use Your Data—Don’t Ignore It

A lot of teams skip looking at their data either because it feels overwhelming or they think their group is too small. But data isn’t just for massive national nonprofits. Even just tracking which campaigns worked best, which messages got the most clicks, or where donations dropped off can teach you what to do next time.

Instead of guessing why a fundraiser underperformed, check the numbers. How many clicked the email but didn’t give? Did people bounce from the donation page before filling in their info? These clues can point to easy fixes.

Dashboards and simple spreadsheets are fine—start where you can. Over time, you’ll be able to spot both good patterns and problems before they become real headaches.

Saying “Thank You” Isn’t Optional

If you want donors to come back, they need to know their gift mattered. Surprisingly, a lot of donations go unacknowledged or get a generic, boring email. People remember how you made them feel as much as what you said.

If someone donated $10 or $10,000, take a minute to send a personal message. Use their name. Reference what their money actually helped with. A genuine thank you makes your group stand out in someone’s crowded inbox.

Later on, regular follow-ups keep your supporter relationships strong. Tell past donors what changed because of them. When it’s time to ask again, they’ll feel more invested.

Don’t Skip the Storytelling

When a fundraiser feels flat, chances are the story is missing. People want to know who they’re helping and why it matters. They connect with real voices and experiences more than numbers alone.

Tell stories about the lives changed—short, honest ones. This could be a video from someone impacted by your group, or even just a quick photo and a few lines describing the situation. Emotion gets attention, but keep it true to your mission and audience.

If you’re stuck, listen to your program staff or volunteers. They usually know the best stories from the people you serve or the behind-the-scenes moments donors miss.

Your Team Needs Support and Training

More often than not, fundraising feels awkward for staff and volunteers who are new to it. Maybe they’re nervous about asking for money or just unsure what works. That’s normal, but skipping training hurts everyone.

Spending even a little bit on workshops, webinars, or just learning from experienced fundraisers can pay off. It builds confidence and helps your team spot chances you’d otherwise miss.

Encourage your staff to try new things, share what worked, and learn from each other. Small improvements, like a practice pitch session or sharing feedback from donors, make a big difference over time.

Watch Out for Overspending

It’s easy to sink a lot of money into a flashy fundraising event or a new online tool hoping it’ll boost results. Sometimes it helps, but often the return isn’t worth it. Watch your budget line by line and ask: Does this actually help us raise more than we spend?

Plan fundraising costs in advance and keep your goals in mind. If a small online raffle brings in as much as an expensive gala, it’s worth asking what makes the most sense. Being smart with your budget means you’ll have more money left to put toward your mission.

Wrap-Up: Keep It Honest, Keep Improving

Every great fundraiser gets things wrong sometimes. That’s normal. The real problem is acting like your group is too small or too busy to fix the basics. Most avoidable mistakes in fundraising are simple habits that can be changed with a little awareness and effort.

The main things? Set clear goals, keep your donors feeling appreciated, and tell stories honestly. Use your website and social media as tools, not afterthoughts. Pay attention to your data, and don’t let your team limp along without support.

If you want more hands-on advice or ideas for other ways to grow your funding, check out this practical guide for nonprofits that covers real-world examples and strategies.

This year, promise yourself you’ll pay attention to the “small” stuff. That’s where people decide if they’ll support you, and where you’ll find the quiet wins that add up over time. You don’t need to be perfect—all you need is a plan, a bit of curiosity, and the willingness to keep learning as you go.

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