As we enter the new year, understanding trends for 2023 that support your revenue goals will be key to your fundraising success.
Trends in technology, communications, and the economy can affect the decisions people and organizations make, including donors. Getting ahead of current trends will ensure that you're prepared for the future. And for fundraisers, it will help as part of a long-term engagement strategy to guarantee your organization's financial sustainability.
While studying the trends in this post, be sure to consider your specific goals and ensure that you have the right tools and technology for the job. Fundraising is becoming more and more digitally sophisticated, and online giving options will become increasingly important to your donors.
Flexible giving and participation options will be a huge 2023 trend! The pandemic changed the ways in which we interact with all businesses, including nonprofits. Donors expect to be able to provide their support in various ways and from the comfort of their own homes.
Nonprofit donors are varied, and while some donors would still rather receive direct mail and donate via check, many donors have moved online. In fact, even 47 percent of donors over the age of 60 give online. Establishing online giving options provides donors with giving methods tailored to their needs and creates a more comfortable donor experience.
Another benefit of adding flexible giving options to your fundraising strategy is that you can entice donors to give more and potentially reach new audiences. For example, nonprofit text messaging audiences grew by 26 percent in 2020. Similarly, mobile giving donations have increased by 205 percent.
The pandemic also changed the way fundraising events were held. As events moved online, donors could support their favorite nonprofit without leaving their living room.
However, as nonprofits have started holding in-person events again, there is still an expectation that virtual participation will be an option. This virtual and in-person blend is known as a hybrid event or hybrid fundraising. With hybrid fundraisers, nonprofits have the opportunity to engage a larger audience and can connect with a greater diversity of supporters, making hybrid fundraisers a top 2023 trend!
Donor acquisition is an expensive endeavor. With approximately 70 percent of donors only giving to an organization once, nonprofits are often left with a loss on their initial investment in first-time donors.
However, it's much easier and more cost-effective to motivate individuals who have already given once to give again. Additionally, fundraising technology is making it easier than ever to optimize stewardship techniques and improve donor experiences.
Using these tools to improve your donor retention will be critical in 2023, but how do you actually go about increasing your nonprofit's retention rate?
Well, a recent study identified what people look for before they make a donation.
By ensuring that donors are able to easily access this information, you can remove any barriers to making a donation. You can do this by regularly sharing impact reports that clearly demonstrate your nonprofit's work and answer any donor questions. Additionally, it's important to calculate your donor retention rate and reflect on what is working and what needs improvement.
After you've evaluated the current state of donor retention, it's time to make a plan and set goals. Donor retention is built on strong relationships with donors that make them feel appreciated. By nurturing authentic, long-term donor relationships, you can increase your donor retention and guarantee sustained fundraising success.
Monthly giving programs provide nonprofits with predictable and sustainable revenue while reducing the need for fundraisers to keep making individual appeals. Even better, monthly giving is becoming increasingly popular among younger donors.
Because recurring giving is more financially impactful and easier to manage, fundraisers need to make it a priority in 2023. Additionally, monthly giving is a great way to connect with the next generation of donors. For example, a study found that 60 percent of millennials are interested in monthly giving, and 45 percent of them have already given online!
Over the past few years, we've seen events go from in-person to hybrid and online fundraising revenue increase significantly. Nonprofits will need to be adaptable and flexible to thrive in this ever-evolving fundraising landscape. That's why knowing about these 2023 trends is so important for your organization. Take the time to get ready for what is coming next!
Top photo: Shutterstock