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2020 Trends in Nonprofit Fundraising

December 13, 2019 by Spokes For Nonprofits

It’s time for planning year-end appeals as well as your 2020 fundraising strategies. Raising money for nonprofits is never easy, but it’s a perpetual necessity for survival. As 2019 comes to an end, it’s important to take the time to learn about new fundraising trends for 2020.

A report from Giving USA 2019 revealed a decline in donation from mid-level donors who make gifts less than $250 and between $250 and $999 respectively. This was expected due to the 2018 tax reforms that allowed a standard tax deduction for individuals and couples without having to itemize donations. That’s why nonprofits will need to become even more proficient at engaging donors by highlighting their good works and relevancy of their missions.

Take Advantage of the “Election Effect”
Many nonprofit leaders are surprised that an election year can have an impact on philanthropy, especially if the focus of your nonprofit mission has been in the news. For instance, research showed the 2016 elections resulted in a flood of donations to issues and causes related to civil rights, social action, and advocacy organizations. Donors acquired during election periods prove to stay with a cause for around 18 months or more. Just be sure you avoid getting involved with politics and focus on advocating for your mission and educating the public about what you do to avoid jeopardizing your nonprofit status. Are there ways you could take advantage of this election season to find people who are passionate about your mission? 
 
Put Effort into Building Donor Loyalty
Donors are developing a new attitude about giving as they don’t want to be just a “number” to a nonprofit. Instead, donors want to develop a special connection with a nonprofit’s cause through personalized attention and communications. That means taking time to build relationships with current and potential donors. What are their cares and concerns? Get to know what donors are really concerned about and keep them informed about how your nonprofit addresses those issues. Share examples of how supporting your mission has made an impact on a cause they care about via newsletters, emails, articles on your website, social media posts, and individualized thank you-letters.
 
Make Giving Easy
Donors might want to donate to your nonprofit but it might be difficult to give a lump sum all at once. Some nonprofits are seeing an increase in giving by providing recurring subscription donation opportunities. This is another area that was found to be particularly relevant following the 2016 election when awareness of certain social causes was high. In 2018, it was found that donor membership programs accounted for 77% of total online revenue for nonprofits who offered them. These programs boosted donor loyalty as well as total revenue. Establishing opportunities to give smaller amounts on a regular basis can help expand the donor base. Consider creating a membership program that offers benefits related to your mission for regular donors. 

Also consider promoting the option of corporate matching gift programs to your supporters. Many employers have programs to match funds their employees donate to nonprofit causes. In fact, according to Double the Donation, an estimated $4-$7 billion in matching gift funds goes unclaimed each year. If donors make a gift to their nonprofit and then apply to their employers to match those funds, the the donor can essentially double their contribution to their favorite nonprofit!
 
Keeping fundraising trends in mind can be very helpful as you plan your 2020 giving strategy. Check out the additional resources for more ideas.
 
Additional Resources

Top Five Fundraising trends in 2020 


12 Nonprofit Trends We’re Likely to See In 2020, According To Experts 


 

Contributing Author: Consuelo Meux, Ph.D.

Consuelo is the CEO of Spokes. She enjoys fundraising activities!

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