2020 was an interesting year on so many levels. For Black organizations, it has created a resurgence of interest and a pouring of investment into the nonprofit sector while traditional fundraising efforts were disrupted. 2021 however, brings in a fresh start, with a sense of hope moving forward as we take a look at the new fundraising trends of 2021. Three influencing factors: the digitization of the sector, the pandemic and lockdown atmosphere of 2020. Connecting the fundraiser and donor is key. Without this connection, nonprofits are up against even greater odds to stay afloat.
How do we continue to foster and sustain this needed connection with potential donors given social distancing and a persistent isolated environment?
Let’s examine 7 fundraising trends:
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Mobile Fundraising
In recent years, mobile marketing has emerged as a more effective communication method than email. According to CampaignMonitor.com, a 2019 Research showed that SMS/Text open rates were as high as 98%, compared to just 20% of emails. Result? Rising trend of fundraising through text giving, better known as Text-to-Give or Text-to-Donate.
Mobile fundraising has grown tremendously in popularity in 2020 alone. According to Pew Research, around 96% of North Americans now own a cell phone of some kind, bringing engagement opportunities right to donors’ hands. It is a fantastic way of reaching your constituents directly. In 2021 and beyond, we suspect that even more financial decisions will be made with the use of mobile. Organizations that tap into this technology may find themselves ahead of this fundraising trend. Therefore, it’s important that your website is responsive and optimized for mobile devices. Start by adding a mobile opt-in field to capture cell phone numbers.
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Donor Management Software (CRM)
As we have witnessed this past year, the need to adapt and execute quickly has allowed a lot of organizations to pivot and adopt new strategies better suited for the changing environment.
Using Donor Management Software (CRM) allows for quick gathering and evaluation of the collected data. A lot of platforms use the power of Artificial Intelligence (AI) technology to automate processes, quickly analyze huge data sets and even make campaign recommendations. The data collected is used to get to know the donor in hopes to establish a meaningful connection and long term relationship. This is foundational information needed to build a strong fundraising plan with a focused effort on donor stewardship to see increased returns. Recurring donors are between 4 and 11 times more valuable than one-off donors.
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Advocacy – Take A Stand
Stand out and take a stand on issues relevant to your cause. Collaborate with similar organizations to raise awareness on a common mission. In 2020, we witnessed an increase in activism from individuals, corporations, businesses to global and local political leaders advocating for various causes. We’ve also seen a response from philanthropic foundations and governments. They shifted their attention to more relevant issues because there was a movement and concern raised by more people. In the 2nd portion of 2020, foundations have largely shifted their financial contributions away from the M.U.S.H. groups (Museum, Universities, Schools and Hospitals) to more community based organizations. Make your organization visible and part of relevant movement to be in line to benefit and receive from these contributions.
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Go Virtual
Virtual events are here to stay. To adhere to the Social Distancing guidelines, organizations have been forced to adapt a complete virtual approach to all their programs, outreach activities, workshops including fundraising events. This comes with a significant advantage once the technology is understood. Even if our social interactions soon allow for in-person or person-to-person gatherings, virtual fundraising events will remain a popular options. Why? No geographical limitations, reduced overhead or venue cost in addition useful information gathered as part of the registration process (emails, phone number, attendance, location, etc). More and more people are used to and even prefer virtual events as they are often much cheaper.
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Social Media Presence and Engagement
We encourage more organizations to start leveraging the incredible reach of Social Media in addition to the analytics and insights they provide for free. It’s important to connect with supporters and potential donors where they are. More people are using multiple Social Media channels to stay connected and get their news. The mainstream Social Media channels (Instagram, Facebook) have also followed the trend by including some fundraising tools to their platforms notably allowing adding a “Donate” button or the option to start a crowd-funding page. It’s worth mentioning here that other kinds of media like streaming platforms such as Twitch, Patreon and Youtube have also significantly upgraded their fundraising tools. The use of #hashtags is uniquely useful to associate your organization to current social media movement, the biggest example being #GivingTuesday.
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Peer-to-Peer Fundraising
Mobilize your supporters and give them the tools to fundraise on your behalf.
Give your community a brand new way to support you with evergreen campaigns that allow supporters to donate their birthdays or weddings to your cause, or even host their own fundraising events. Create branded campaigns to fund a new project, recognize an awareness month, or engage your board in a new kind of fundraising. This allows your organization to leverage their supporters and volunteers’ personal social networks. Consider adding this option to your website or Social Media accounts.
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Corporate Giving
Another trend in the nonprofit world that your organization should keep an eye on as we start the New Year is the growth in corporate giving. Corporations are starting to feel a stronger sense of social responsibility for the community. Tap into the growth of corporate responsibility. The increased sense of corporate social responsibility is leading to the introduction of new corporate philanthropy programs. These programs include various ways that corporations can help nonprofits like yours.
For instance:
- Matching gift programs
- Corporate sponsorships
- Community days
- Volunteer grants
Engage with your local businesses and corporations to find out how they get involve with their community.
If 2020 taught us one thing, it is to be open to change and adapt such is the case for the fundraising sector.
Digital stewardship will continue to take center stage in 2021. This past year has forced many of us to become more tech-savvy and data literate. Working smarter will ensure that even when the going gets tough, the bonds between you and your donors will remain strong enough to not only last, but extend ever outwards. It only takes a little insight and intuition to make the most of what is available to and alters the course of philanthropy.
We learned in 2020 that the fundraising environment can change at any time, and it can change fast. Whether you’re pivoting quickly to raise funds in the face of adversity, or shifting your strategy in a (now) mostly online world, organizations need to continue to diversify their efforts to stay ahead in the event of future changes.