Art with Impact Non Profit Fundraising Case Solution

1. What problem is AWI facing? Why do you think the organization is facing this problem?

Currently, there is one big issue which is leading to many other issues. The biggest issue is that AWI is unable to reach its target market effectively, and thus, it is not raising enough funds to grow and finance its workshops. Since just one-third of the costs are taken care of by the educational institutions that invite AWI for workshops, adequate donations are critical. Its growth is hindered by the uncertain flow of donations. Limited funds mean that the marketing budget is very less. Also, there is no genuine effort for getting more donors. An ordinary attempt is made on the social media, and only old donors are reached via email, which is not a good strategy. It was also unable to translate its innovative methodology into a meaningful campaign for donors, so potential donors were not convinced as of yet. The present government of the USA planned to finish the Endowment Fund for Arts which would be a further dent to the financial position of AWI. Funding from the Canadian government was never a reliable means. AWI ignored the opportunity to secure monetary aid from the powerful pharmaceutical industry because it could have raised a question mark on its integrity and philosophy. Donation trends were discouraging in Canada. In 2016, the donor pool shrank by 1.8%, and there had been a consistent annual decrease for the last five years. 

The root issue is faced because there is no concrete marketing team and strategy. McQueen has some marketing experience, and there are some marketing professionals on the executive and advisory boards, but there are no prominent personalities which are doing the execution. Consequently, marketing mediums are not being efficiently used, and a logical communication plan doesn’t exist. So, it’s a mix of certain unfavorable external and internal limitations. 

2. Examine the current state of fundraising over social media. Describe the external environment in which the organization is operating and the impact of social media.

On the social media, crowdfunding platforms have been utilized by many non-profit organizations as they are a very economical medium. In 2012, it was calculated that almost one-third of all monetary donations raised via crowdfunding mediums were directed towards social developments. Indiegogo, one of the more prominent fundraising platforms, assisted organizations in understanding the medium and gave tips to excel and successfully conduct their fundraising drive. The success of stories of a few social enterprises were present who used social media to great effect. Albeit, there were many stories of failure as well. 

The macro-environment in which AWI is operating has certain favorable and unfavorable characteristics. There is an increasing number of educational institutions in Canada and the USA that are investing more in the mental well-being of students. That is the reason why AWI was able to conduct more workshops in these countries compared to the previous year and was able to widen its scope by making a mark in more states. Around 6% of the complete health expenditure of the USA is spent on treating mental ailments. The Canadian government spent around $51,000 million on the same. A great amount of productivity is lost, and life quality is compromised because of these illnesses. Alarmingly, prescription drugs are being mainly used to counter these diseases as opposed to consultancy from experts.