Nonprofit partnerships are widespread in the corporate world because they enable businesses and enterprises to join forces with a philanthropic outlet to improve their public profile and the community simultaneously. Workplace giving raises more than $5 billion annually, according to Nonprofits Source.

As an organization that runs on donations, it’s logical for a nonprofit to want a piece of that giving. That said, there are times when it’s essential to look more critically at a gift.

Avoid the “devil” in the details

Similar to Descartes’ “evil demon” argument, there’s the concept of “demon donors” in the nonprofit world. These are people who want to elevate their brand by donating money linked to practices that conflict with a nonprofit’s stated mission. Demon donors are in it for the positive publicity rather than the greater good.

Nonprofits have to make tough decisions regarding demon donors, and they can face public backlash if they partner with the wrong people. Donations are a vital measurement of a nonprofit’s success, but money shouldn’t outrank the desire — and need — to stay closely tied to your goals and mission statements.

It can be tough to discern the nature of every single donation, though. Sometimes, donors have motives and intentions unrelated to serving the greater good. As a nonprofit leader, it’s essential to evaluate each contribution to ensure it’s made in good faith and not with any strings attached.

Being a new nonprofit is exciting — and challenging

Established nonprofits may be comfortable turning down donations that don’t mesh with their values and mission, but that’s a more challenging task for newer organizations. These fledgling groups likely don’t have a deep donor pool, and a choice to reject one donation could have ripple effects for all operations across the board.

New nonprofits face unique issues that can make it more challenging to collect donations and build a roster of reliable donors. Those barriers include:

Miscalculating financial needs 

Many new nonprofits find themselves underestimating how much capital is needed to complete a project and then discover that the donation won’t cover the initiative’s expenses. Poor implementation or project processing can lead to an organization not having the funds or volunteers necessary to see things through. This lack of funds can prevent nonprofits from getting more volunteers and widening their reach.

Collecting gifts from certain sources

Another area that less-established nonprofits should focus on is the methods of the contributions themselves. These organizations are generally better at reserving and spending donations to meet their goals when they have a balance.

It can be tough to determine the right mix of donation streams, but focusing your organization’s efforts on not underdoing or overdoing donation sources can help ensure that you have the funds to reach your goals.

Lacking the necessary credibility

While most people are inclined to support a cause they believe in, they’re careful about where they choose to donate. Hardly anyone will give their hard-earned money to an organization without conducting thorough research or consulting peers. If your nonprofit doesn’t come up in potential donors’ research or conversations, you aren’t likely to see their money hit your organization’s bank account.

Additionally, building a strong foundation comes from encouraging donors to give repeatedly rather than just once. That comes from providing your donors with a return on their investments.

In other words, your nonprofit needs to provide donors with some value in exchange for their continued support.

Deciding on donations

Not every gift is what it appears to be on the surface, so it’s essential to ensure that the ones you take are in lockstep with your nonprofit’s big-picture values and objectives.

Here are four ways nonprofit leaders can ensure the donations they accept are on the up and up:

1. Stay laser-focused on your mission statement 

The world changes around us pretty rapidly. It’s easy for the need that your nonprofit addresses to evolve into something different, meaning that you have to make difficult decisions about which goals to retain and which ones to set aside.

Organizations with this level of focus decline opportunities that don’t align with their goals, choosing instead to take on challenges that can move their nonprofits forward. This is easier said than done when it comes to runway cash, but successful nonprofits are used to making difficult decisions.

2. Consider instituting ‘know your donor’ obligations

This approach can help your potential donors understand your mission and values. It will also allow your organization to accept donations only from those that are in alignment with your nonprofit.

While you can’t ensure that gifts from misaligned donors are never accepted, your organization can still make a difference by educating donors and helping them change their behaviors. In the future, you’ll set a standard that all potential donors must hit.

3. Find a nonprofit to model your organization after

Similar organizations can provide an example for your group to follow and open the door for collaboration. Look to those outfits to help build the blueprint for your donation process.

To go a step further, networking with the leaders of these organizations might provide you with better processes and guidelines for auditing donations. To bring your approach into focus, find ways to pick the brains of other organizations — directly and indirectly.

4. Figure out whether donors view you as a vendor or a partner 

While your donors likely have some valuable insights that can help your organization grow on a larger scale, some donors have other goals in mind. Occasionally, donors are searching for help completing a particular project and accomplishing their intentions rather than looking for a partner organization.

These “pay to play” donors can be tempting, but they might take you away from working toward your nonprofit’s vision. It can be difficult to grow these relationships because the “partner” for your nonprofit isn’t invested in your organization’s mission and goals — and isn’t likely to be a repeat donor.

Many nonprofits have adopted an approach that allows donors to decide how the funds they provide are used. While your organization may be reliant on gifts, you have the power to ensure that those donations contribute to your nonprofit’s mission — not anyone else’s.

Find success with donors that align with your mission

Nonprofits are built with a vision and value in mind. Neither should be compromised for the sake of a sizable donation. Making an early commitment to only seeking out gifts from ethical donors establishes those standards early and helps build the blueprint needed for nonprofits to achieve long-term success.

Building a nonprofit from the ground up is a challenge. Newness creates a certain level of liability, which is evidenced by the fact that nonprofits—like startups—are more likely to fail closer to their founding.

Staffing is another common concern; most nonprofits don’t have the budget to match salaries in the for-profit sector. It can be challenging to get a good enough handle on your cash flow to feel confident that you can afford to add a new hire salary to your budget to begin with. And then there are government regulations, strategic planning challenges, changing tax codes, organizational growth, membership, revenue, and other barriers.

Of all those obstacles, funding may be one of the biggest challenges. A new nonprofit must develop a strong and comprehensive fundraising strategy to have any chance of securing the funds it needs to operate. It also must build a sustainable and scalable donor engagement program and an active board of directors. For these reasons (along with many others), networking is one of the most important tasks for new nonprofits.

Trouble connecting

My biggest challenge when starting a nonprofit was finding projects that made an impact with a reasonable amount of funding—networking was critical to its success. As you begin to build up a network, you can partner with other early-stage programs that are encountering similar challenges.

Creating a nonprofit network, however, can be just as challenging as building a nonprofit. For one, few people understand how to build and sustain a group of organizations focused on a shared social goal. They often see each other as competitors vying for the same funds, leading these partnerships to become one-off affairs.

If they were to look at the bigger picture, they’d realize how conducive an organizational network is to the nonprofit sector. Most nonprofits work on relatively large and complex issues that could benefit from a pool of common resources.

Coming together also provides an opportunity to learn from one another and tap into a more diverse breadth of knowledge. If one organization lacks a specific skill set, the odds are likely that another nonprofit has that expertise in spades. Nonprofits can ease a lot of the uncertainty that accompanies launching new programs or initiatives by lending each other a helping hand.

Getting to know you

Chances are you feel that your time would be better spent cultivating donors than building a network. Fundraising and networking go hand in hand, however, and the following are a few of the best places to begin your networking efforts:

1. Develop a fundraising strategy

It’s one thing to invite people to share in your mission—it’s something else entirely to inspire them to donate to your cause. This often begins with a fundraising strategy. Define the specific issues you’ll be addressing and how you intend to address them. Determine what kind of value you’ll provide, what outcomes you want to achieve, and what success looks like.

Better yet, identify community need. When you understand the needs of your community, you can adjust your mission to address these needs. Local businesses can then fall in line, as most business owners want to enrich and strengthen the same community. Only after you understand what’s actually driving your mission should you invite others to join forces and share in your organizational vision.

Another aspect of any strong fundraising strategy is community presence. Look for ways to build a presence for your organization within your community. Some nonprofit leaders join their respective city councils while others become part of a local rotary. A rotary club usually brings together representatives from a cross-section of businesses, so it provides substantial exposure and a great opportunity to flex those networking muscles.

2. Host an event

Events are common fundraising efforts in the nonprofit sector, but they also provide an opportunity to connect with other community members. Focus on the social aspects of the occasion and get to know more about the people in attendance—their interests could provide a chance to talk about your organization, its mission, and its initiatives.

Avoid going for the hard sell, though. Even if some attendees can contribute significant funds, focus more on cultivating and strengthening relationships with potential partners and donors. Ask questions and develop personal connections with attendees. When people feel like you’re interested in them—and not simply what they can do for you—the chances of continued support increase exponentially.

What’s more, consider attending their events. If a local nonprofit is hosting an auction or a similar benefit, get on the guest list. It’s not just another opportunity to network with other like-minded professionals—it’s a show of support. Considering that support often begets support; your attendance could also boost the crowd for your next event.

3. Join a nonprofit network

Linking up with a group of like-minded people is an essential part of building a strong network. As with any event, nonprofit groups provide an opportunity to connect with others in your industry, with an added bonus: advice. These people know what you’re going through, and can offer valuable insights.

Take, for example, Habitat for Humanity in Egypt. This nonprofit’s activities are similar to your local chapter, with volunteers building homes and revitalizing neighborhoods. But they have also taken steps to build a network with community-based organizations to address other aspects of homelessness.

Try to take these relationships beyond the traditional “partnering up” for a single program; develop an actual network of nonprofits committed to a single cause. Think of it as pooling your resources for greater, more sustainable success. Networked nonprofits often achieve their missions more efficiently and effectively than those that go it alone.

4. Use board members’ networks

Board members bring a wide array of skills and insights to nonprofits. If, for example, you lack public relations expertise, a PR professional could be a great candidate for your advisory board. But pro bono expertise isn’t the only reason for board recruitment—all board members also become organizational stewards.

While stewardship takes many forms, it has unmatched potential to help you connect with people you don’t already know. From there, it’s up to you to cultivate relationships with these new connections and encourage them to get involved—whether it’s attending an event, volunteering their time, or making a monetary contribution. This rapid network expansion is one of the most effective ways that board members can add value to your nonprofit.

There is no shortage of challenges in the nonprofit space. Why add to the mix by alienating others who want to achieve the same goals as your organization? Put yourself out there, mingle with like-minded folks, and get to know other leaders on a personal level. It could be the key to your fledgling nonprofit’s success.