Nonprofit Fundraising Trends in 2022
Nonprofit Fundraising Trends in 2022
By Bob Reynolds, CPA
I believe the pandemic brought about the greatest change to daily life I have experienced to date, and I think we can agree that its impact on nonprofit organizations has been significant. During 2020, I heard many nonprofit leaders say they would be happy when things “returned to normal.” Then in 2021, we faced the harsh reality that things would never be the same, and our concern shifted to what the “new normal” was going to look like and what the lasting impact would be on the nonprofit community.
I believe strongly all nonprofit organizations must operate in a structured professional manner like any other business and “No Money No Mission.” I don’t have a crystal ball, but I’m certain how organizations raise funds in 2022 and beyond will continue to evolve.
Virtual is here to stay!
Nonprofits will continue to rely heavily on technology to engage volunteers and donors to meet them where they are, and social media will be the means by which organizations will engage donors and volunteers. A recent study on digital communications reported the following:
- Approximately 5 billion people worldwide actively use social media. Let’s consider the following:
- For those 18 to 29 years old, 90% are active social media users
- For those 30 to 49 years old, 82% are active social media users
I’ve heard numerous development professionals comment on how difficult it is to attract younger donors. If we need to go where donors are, social media platforms are where a significant number of individuals 30 to 49 years old reside.
Smartphone users are expected to reach 271 million in the United States, and text messages continue to replace email as our virtual communication tool of choice. Studies show:
- Text messages have an open rate of nearly 99% compared to approximately 30% for emails.
- Text messages are typically opened within 15 minutes of receiving them.
- If accompanied by a short video, 57% of recipients will watch the video and donate if they can do so on their phone.
Organizations need to work to gather phone numbers in addition to emails from prospective donors and volunteers. Also, they must develop short videos to tell their story and make the ask. Remember, none of this is possible unless the donor can make the donation from their phone.
Other trends expected during 2022
Use of a more direct approach to asking for donations
- Communicate there is a problem happening right now
- You need the donor to help solve the problem
- How their support will help solve the problem.
Donors are less interested in past good deeds; they want to know what their gift will do for someone in need today.
Recurring donations & personalized donor experience
Many organizations do not favor offering donors a tangible benefit like a t-shirt or coffee mug in exchange for financial support. Studies show providing these benefits can increase the number of new donors and the amount of the average donation.
I hope this article helps your organization in developing your fundraising strategy.
Brady Ware Nonprofit Advisors want to help you fulfill your mission with financial health and compliance services and a network of nonprofit consultants who specialize in strategic decision-making.