As the countdown to the New Year begins, while everyone else tunes in to watch the ball drop with bubbles in hand, it’s a bit of a different experience for fundraisers. For us, it’s a culmination of days, weeks, and months of tracking donations against our goals. And by December 31st, we’re left exhausted but feeling generally reassured by the collective generosity of humanity.
But 2023 was a unique year, as its philanthropic landscape wasn’t simple enough to parse into triumph or tragedy. Instead, it was a complex symphony, one that echoed uncertainty, resilience, and ultimately – a hint of hope. Here’s a quick snapshot of how the year went:
- Economic anxieties – specifically inflation and fears of a looming recession – hung heavy for a number of us throughout the first half of the year. Many organizations experienced dips in year over year revenue, as a natural pullback came after several years of record-breaking giving sparked by the pandemic.
- Average gift, after its recent upward trend, reportedly declined. But large gifts are perhaps just shifting channels. It’s worth noting that there was an increase in Donor Advised Funds, which goes hand in hand with reports that contributions to DAFs have been reaching new highs in the last couple of years.
- While long-term donors remained a bright spot, a decline in new donor participation in Q3 of 2023 poses a challenge for future acquisition efforts. While there is an alarming decline of donors, from what we’re seeing, it may be that donors are choosing other paths for their generosity outside of nonprofit organizations.
- Giving Tuesday presented a mixed bag. The number of donors who chose to participate were down by 10%, but total revenue actually saw a modest increase of 0.6%. So while fewer donors gave, those who did make a donation actually chose to give more.
- Search advertising reigned supreme. For organizations that saw a drop in overall digital revenue, paid search grew, the median for some almost 30%. It’s worth exploring why this jump occurred. Maybe it was donors looking for a path outside of inbox inundation, or maybe just the growth of mobile commerce.
- Sector also mattered, as surge giving continues to rise, especially with younger generations. Some nonprofits that reported the largest revenue increases are those providing humanitarian relief in Gaza and Ukraine.
Results are still unfolding, and we’ll continue to share helpful analyses on key takeaways from 2023. But one thing we can certainly breathe a collective sigh of relief about is that December 31st falls on a Tuesday this year. Weekend deadlines can create serious uncertainty about how much donors may be paying attention to final appeals being sent out compared to a weekday.
And with no time to lose, annual planning is top of mind for all. Adapting to 2024’s new terrain requires focusing on lessons we learned and incorporating them into future fundraising strategies to gear up for a strong year. Here are some tips to keep in mind:
Plan A Holistic Approach
If there’s one thing to take away here, it’s that donors cannot be defined by a single channel. There aren’t only social media donors, or direct mail donors, or email donors. Donors consume stories and messaging across a variety of platforms. Well thought-out omni-channel campaigns are the key to maximize the value and loyalty of those who already have a relationship with your organization, and inspire those who don’t. Most importantly, the channel they make their gift doesn’t mean that’s their preferred channel of communication.
The Rise of Midlevel Donors
Pay special attention to this group, as they remain the backbone of revenue when smaller gifts trend downward. Cultivating relationships with your midlevel donors is vital for long-term sustainability. Be sure to invest personalized engagement and present meaningful opportunities for their involvement to continually deepen their connection with you.
Embrace Online Giving
Your website needs to be optimized for revenue growth. The convenience and accessibility of online platforms are making it easier than ever for donors to support the causes they care about – and the trend is only going to continue to grow. It’s reported that while online giving accounts for 12.1% of total giving in 2021, that number is expected to reach 13.1% by 2025.
Data-Driven Decision Making
What is the story that your numbers are trying to tell? Track donor behavior, analyze campaign performance, and then leverage those data insights to help you refine your strategies and make informed decisions on how to best allocate your resources and outreach efforts to maximize your fundraising potential. Fundraise smarter not harder.
The Power of Storytelling
Compelling narratives about the impact of donations continues to resonate deeply with donors. It is consistently the top reason donors give. Focusing on showcasing the real-world difference your organization makes because of donor dollars will continue to be a tried and true method to inspire both continued support and attract new donors.
Adapt. Then Adapt Again.
While what we communicate to our donors will likely never change, it’s how we interact with them that constantly does. Continuing to stay agile, embracing new technologies and trends, and being prepared to adjust strategies based on how donors choose to interact with us are all crucial for long-term success.
As we enter 2024, there are some echoes from 2023’s fundraising rollercoaster that still reverberate. There are certainly reasons for optimism, but continued economic uncertainty, an election year, and changing donor behavior will keep posing challenges. But it’s nothing we can’t handle!
In the face of reported decline in donations, remember that the spirit of generosity has the power to overcome challenges and create lasting change. Lower numbers can be viewed as a setback, or they can signal an opportunity for both renewal and collective action. We should always remember that every contribution, no matter the size, has the potential to make a difference.
So when we do what we do best – focus on building meaningful connections with donors and remaining adaptable in the face of change – we can continue not only to survive but to thrive in years to come. While we don’t know what this year will bring, all we can do is embrace the lessons we take away and stay true to our mission to keep working toward the brighter future for the causes we champion.
