Ways We Anticipate Giving to Change, and How We’re Incorporating This into Client Strategy
By: Melanie Green
As the world of fundraising continues to advance, nonprofit organizations face new challenges that require flexible and forward-thinking strategies. Donor habits are changing, so it’s crucial for organizations to stay ahead by anticipating these shifts and adjusting their fundraising approaches. Here are several important trends and recommendations, along with practical ways to incorporate them into your nonprofit’s strategy.
Focus on Revenue Replacement over File Replacement
Fewer donors are giving overall, which means organizations must shift the conversation from simply acquiring more donors to replacing and growing revenue from current supporters. The key is identifying how to continue growing revenue, even when your active donor file might be changing.
One effective solution is using predictive modeling to pinpoint individuals within your file who have the willingness and capacity to give more. By focusing your outreach with gestures such as personal thank-you calls and active stewardship from gift officers — in conjunction with direct response efforts — organizations can engage these high-capacity donors more deeply and encourage increased giving. Collaboration between direct response teams and major or mid-level gift staff can deliver significant growth.
Play the Long Game to Engage Younger Donors
Today’s donors, particularly younger generations, are more cautious and require a stronger sense of trust and connection before they contribute. That means nonprofits must invest in cultivating relationships with individuals who are not quite ready to give yet, but who may become valuable supporters in the future.
Aim to make your organization top of mind for these potential donors by creating varied engagement opportunities, such as advocacy and volunteer experiences, and building trust through consistent communication. Sending out messages through social channels, providing impact reports, and inviting engagement beyond financial contributions can all prepare these individuals for future giving.
Prepare Data for Giving Through Donor-Advised Funds
Donor-advised funds (DAFs) are becoming more common as giving vehicles, so eliminating friction in the DAF giving process is increasingly important. Organizations must also be prepared to efficiently identify, track, and steward these donors. Cleaning and preparing data are also essential steps because they enable organizations to correctly attribute gifts, adjust donor models, and target communications more effectively.
Consistency is the primary challenge in tracking DAF gifts. There is no single, perfect method across the sector, but being consistent with where and how you record soft credit for DAF contributions is crucial. The hard credit typically goes to the institution, with soft credit to the individual donor, but systems vary, so develop — and maintain — a process that works for your organization.
Incorporating These Trends into Your Strategy
To effectively address these changes in giving:
- Collaborate across departments, especially with major and mid-level gift officers, to share content and talking points that are timely and relevant. For example, provide front-line fundraisers with insight into active appeals or matches so they can refer to these in their conversations with donors.
- Turn direct solicitations into opportunities for storytelling and stewardship. For instance, sending tailored impact reports and affirmation touchpoints keeps donors engaged and informed without every communication centering on an ask.
- Use technology to streamline trigger-based follow-up, such as automatically sending a thank-you email to donors of larger gifts that invites them to consider further giving opportunities or discuss complex gifts such as stock or real estate.
- Emphasize building trust and engagement through non-financial asks, especially with younger donors. Even simple invitations — such as asking people to advocate for your cause, volunteer, or raise their hand to receive communications — help to lay the foundation for long-term philanthropy.
- Engage in ongoing testing and learning. Each organization’s donor base is different, so remain open to testing new approaches — from match frequency to communication formats — and adapting fundraising approaches based on the results.
By staying consistent with data practices, building strong cross-team partnerships, and focusing not only on more donors, but also on deeper relationships with current and future supporters, nonprofits can navigate the changing fundraising climate. These strategies help to ensure that organizations remain resilient and ready to thrive, no matter how donor preferences continue to evolve.
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