Common Issues for Fiscal Sponsors and How to Address Them
Fiscal sponsorship is an important part of the modern nonprofit landscape. It allows new projects to work toward their goals with the support of an established and dependable organization. This unique arrangement, while broadly positive, also introduces some concerns that sponsors have to effectively manage to make the most of these relationships.
Let’s look at some common issues for fiscal sponsors and how the right management platform – one designed specifically with sponsors and projects in mind – can help address them.
Providing and managing diverse fundraising tools
Nonprofits currently enjoy a wealth of fundraising options. This advantage means the projects you sponsor can select the methods of driving donations that best align with their goals, audience and operational style. Providing the tools to manage everything from donation pages and membership programs to recurring donations and peer-to-peer campaigns via social media is especially important. As a fiscal sponsor, your organization also needs to have strong insight into the progress of these efforts.
A fiscal sponsorship management solution provides the backbone for projects to utilize these fundraising plans. It also offers detailed data and analysis for sponsors and projects alike. And when your financial team can ensure fundraising processes are properly used and managed by individual projects, your organization makes sure all of these efforts are consistent and aligned with relevant regulations.
The right tool strikes a balance that allows your organization to effectively fill the role of a sponsor. It leverages your organization’s expertise and maintains the visibility to step in when necessary, while allowing projects to largely lead and direct their own efforts.
Helping projects understand contributors and build responsive donor bases
It’s not controversial to say an engaged, involved donor is more likely to provide long-term contributions and keep a project’s mission in mind. Understanding exactly what attracts supporters to a project’s overall mission is a key concern for projects. Because new projects often don’t have an especially large amount of internal experience, they may need additional assistance in this area.
Building a strong donor base helps projects stay in touch with the people who feel a meaningful connection to their cause and want to contribute to it over time. By providing a variety of programs for securing donations through memberships and with effective donor research, it’s entirely possible to build a consistent, engaged group of donors. A well-rounded project management platform gives fiscal sponsors the necessary tools for conducting this analysis and offering options for recurring donations. That, in turn, helps projects better understand these crucial processes and more successfully build their base of supporters early on and over time.
There are plenty of other common issues that fiscal sponsorship organizations need to keep in mind, including strong record keeping and compliance processes. To learn more about how WeDidIt is designed expressly to support the needs of fiscal sponsors, get in touch with Allegiance today.