Learn effective communication strategies for handling fundraising setbacks and maintaining stakeholder trust.

This shouldn’t be point #6. Move this much higher in your priority list. You’ll automatically be much more likely to bounce back.

Last updated on Jun 23, 2024

Here's how you can navigate communication with stakeholders following a fundraising setback.

Raising funds can be a challenging endeavor, and setbacks are not uncommon. When facing a fundraising hiccup, it's crucial to maintain open and effective communication with your stakeholders. They have a vested interest in your success and deserve to understand both the situation at hand and the steps you're taking to address it. Engaging with stakeholders transparently can help maintain trust and potentially lead to constructive feedback or additional support to overcome the obstacles.

Key takeaways from this article

Engage with transparency:

When setbacks hit, be honest with your stakeholders. Acknowledge what's gone wrong and why. This openness lays a foundation for trust and collaboration, inviting stakeholders to join the problem-solving process.
Incorporate feedback:

Actively seek your stakeholders' perspectives after a setback. Their insights can offer fresh solutions and demonstrate your respect for their involvement, strengthening your relationship for future fundraising efforts.

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1 Acknowledge Reality

When you encounter a setback in fundraising, the first step is to acknowledge the reality of the situation with your stakeholders. It's important to be upfront and honest about what has happened, without sugarcoating the facts. This approach will help build credibility and trust, showing that you respect their involvement and investment in your project. By being transparent about the challenges you face, you also set the stage for an open dialogue, which can lead to valuable insights and support from your stakeholders.

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Emmanuel Adewole

Investment-Ready Pitch Decks & Business Plans | Get Funded Faster (2X Founder, $5M Raised for startups) | Proposal and Business Writer that Win Grants & Investors
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When things don't go your way, don't deny the reality. Always state what happened without trying to downplay the situation to your stakeholders. This honesty shows respect for your stakeholders and helps maintain their trust in what you have going. They need to know that you are aware of the problem and are not ignoring it.

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2 Provide Context

After recognizing the setback, provide stakeholders with context to understand the situation better. Explain any external factors that may have contributed to the fundraising challenges, such as market conditions or unforeseen events. This context helps stakeholders grasp the complexity of the situation and reassures them that the setback isn't necessarily a reflection of poor planning or execution on your part. It's also an opportunity to demonstrate your knowledge of the fundraising environment and your commitment to navigating it effectively.

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Emmanuel Adewole

Investment-Ready Pitch Decks & Business Plans | Get Funded Faster (2X Founder, $5M Raised for startups) | Proposal and Business Writer that Win Grants & Investors
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Giving all these backgrounds helps stakeholders understand the situation better. When they know the reasons, they can see that the setback was not due to your negligence but due to specific issues that can be addressed.

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3 Share Plans

Once stakeholders are aware of the setback and understand its context, share your plan to address the situation. This should include both immediate actions to mitigate any negative impacts and long-term strategies to prevent similar issues in the future. Your plan should be realistic and detailed, providing clear steps that will be taken and how they will contribute to overcoming the setback. This transparency in sharing your recovery strategy can reinforce stakeholder confidence in your ability to manage difficulties.

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4 Invite Feedback

Inviting feedback from stakeholders is a powerful way to engage them in the recovery process. Encourage them to share their thoughts, concerns, and suggestions on how to move forward. This not only provides you with potentially valuable input but also makes stakeholders feel valued and involved. Their diverse perspectives might offer innovative solutions or highlight aspects of the situation you may have overlooked. Remember, effective communication is a two-way street.

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Enock Miyoba

Founder & Chairman at Interns Association of Zambia | Award winner in humanitarian excellence | Managing Partner at Wholesale Zambia Dot Com | COO/Software Developer at Marlaw Enterprise.
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Seeking or inviting feedback is very important for your fundraising growth. In order to understand and have a chance in a successful fundraising events, you will need to incorporate stakeholders feedback , by doling so you demonstrate a commitment to understand their perspective and incorporating their insights. This inclusive approach not only fosters a sense of collaboration but also harnesses the diverse expertise within your stakeholder community. Effective communication in times of challenge hinges on open dialogue and mutual respect, fostering a stronger foundation for future endeavors.

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5 Maintain Updates

Keeping stakeholders updated on your progress is essential after communicating a setback. Regular updates help maintain a sense of involvement and investment among your stakeholders. These updates should be honest and provide both good news and challenges, ensuring stakeholders have a clear picture of how the situation is evolving. Consistent communication can also preempt rumors or misinformation, which can be particularly damaging during a sensitive time like a fundraising setback.

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6 Show Gratitude

Finally, always express gratitude to your stakeholders for their understanding, patience, and support during challenging times. Recognizing their role and expressing appreciation can strengthen your relationship and increase their willingness to support you in the future. Gratitude can also turn a difficult situation into an opportunity to deepen stakeholder engagement and loyalty, which is invaluable for any fundraising endeavor.

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Sree Sreenivasan

CEO/co-founder, Digimentors • President, SAJA, South Asian Journalists Assn • former Chief Digital Officer of NYC, Met Museum, Columbia; Nobel Prize Outreach board • professional keynote speaker, emcee, moderator
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This shouldn’t be point #6. Move this much higher in your priority list. You’ll automatically be much more likely to bounce back.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Here's how you can navigate communication with stakeholders following a fundraising setback.

1

2

3

4

5

6

7

1 Acknowledge Reality

2 Provide Context

3 Share Plans

4 Invite Feedback

5 Maintain Updates

6 Show Gratitude

7 Here’s what else to consider

Fundraising

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Here's how you can navigate communication with stakeholders following a fundraising setback.

1

2

3

4

5

6

7

1 Acknowledge Reality

2 Provide Context

3 Share Plans

4 Invite Feedback

5 Maintain Updates

6 Show Gratitude

7 Here’s what else to consider

Fundraising

Rate this article

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