NONPROFIT

KEEPING UP WITH DONOR BEHAVIORS

By Lorie Williamson, owner, Blue Pencil LLC

Nonprofit organizations have had to “pivot” and “adjust” so often in recent times that even reading these words may make you cringe. Therefore, I promise, you will not see these words again for the remainder of this article. With the shifting your organization may have been forced into when it comes to fundraising, there’s a payoff for all your hard work. Several trends are emerging when it comes to keeping up with donor behaviors to continue bringing in revenue for nonprofits; trends that will continue far into the future.

As we make our way through a second year of the pandemic (another cringe-worthy word), nonprofit fundraising efforts have been an interesting mix of strategies. In her online article for America’s Charities on January 20, 2021, Ronita Mohan expresses an undeniable move towards “digital channels, human connections and increased flexibility, mainly because of the increase in remote working.” Let’s look at the top trends taking shape for nonprofits this year and how organizations can boost fundraising efforts now and in the future.

Digital fundraising

The nonprofit sector has experienced success using online channels for years, but with social distancing, Mohan notes it became the primary source of donor communication in 2020. The ability to successfully engage with donors last year has resulted in an expectation that digital fundraising will remain as a major strategy in 2021, and in the future. Learning how to best utilize digital touchpoints between nonprofits and donor bases – to convert engagement into dollars – will be a key trend for several years.

Diversify

Concentrating all your fundraising efforts in just one area can be very risky, so be sure to diversify the ways you are generating revenue. Explore new opportunities and keep your options open. A few ideas to consider when looking to diversify your fundraising streams include social media ads, workplace giving, crowdfunding campaigns, peer-to-peer campaigns and virtual events. Examples of highly popular and profitable digital fundraising include Giving Tuesday campaigns, gift matching drives and hashtag campaigns. Incorporating live video and a social media presence are common and will help increase donor reach and increase revenue.

Engage donors with social media

When it comes to a social media presence, nonprofits will need to remain strong this year. Encourage comments and actively With the shifting your organization may have been forced into when it comes to fundraising, there’s a payoff for all your hard work. Several trends are emerging when it comes to keeping up with donor behaviors to continue bringing in revenue for nonprofits; trends that will continue far into the future.

engage with your followers via posts, videos (especially live videos) and blogs on a regular basis. Additionally, take full advantage of any analytics tools to learn the best times to post to achieve the most engagement.

Workplace giving

Workplace giving has gained momentum, especially during the pandemic, as more employers offer matching donations for their employees. The wonderful thing about these programs is the engagement with employees, helping them feel more connected to their jobs and their communities.

Crowdfunding

The Council of Nonprofits’ online resource guide explains how crowdfunding can reach a much more diverse audience and allows for sharing via social media and links to giving portals. Peer-to-peer fundraising is a multi-tiered approach to crowdfunding. Individuals set up fundraising pages for your organization to share with family, friends and community members. A live crowdfunding event puts the talents of your spokesperson to great use by sharing their pitch for your organization.

One of the top benefits of any type of crowdfunding is the ability for donors to ask questions and offer feedback, thus building a relationship with your nonprofit. Be sure to take the time to investigate the multiple websites available for crowdfunding. Cost, collection of donor information and state fundraising regulations are all important aspects to take into consideration.

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continued from page 10 Hybrid events reap great benefits

Still missing your in-person events, but attracted to the ease and success virtual events can offer? Even if you decide to hold an in-person event, offer your donors a hybrid option to attend virtually. According to Sarah Baker, a digital fundraising strategist at MobileCause, including virtual elements to your in-person events has astounding benefits. In her May 23, 2021, article for Nonprofit Tech for Good, Baker explains how including virtual elements at an inperson fundraising event can offer the following benefits:

• Expands reach and brings in more new donors • Enables those who cannot attend to still participate • Increases giving, often outraising previous in-person events

Transparency is more vital than ever

According to a survey conducted among 3,000 donors by Network for Good1, the number one reason why donors stop giving is not knowing how their gifts are being used.

While you may be familiar with the importance of transparency when raising funds during a crisis, the need for transparency is a trend that is going to extend into the future. Adding value to your donation appeals and campaigns will help ensure your donations continue and is vital for maintaining trust.

With nonprofits around the globe all vying for attention from prospective donors, it is necessary to show how your organization is making a positive impact. Mohan emphasizes that the goal here is showing – not just telling. So, what does that look like?

Share stories, testimonials, images, data, etc. to explain who you are helping and where donation dollars are going. Allowing supporters to see, and appreciate, your efforts and how revenues are managed will let them know just how close you are to achieving your mission-driven goals.

Heather Mansfield, author of “101 Digital Marketing & Fundraising Best Practices for Nonprofits” blog and webinar series for Nonprofit Tech for Good2, suggests featuring one to four news stories in your e-newsletter and focusing on one story in fundraising appeals. A word to the wise: Be sure to get your beneficiaries’ permission before you share their stories!

continued on page 14

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continued from page 12 Email still rules

Email marketing is still rated as the number one way to reach your target audience and works well to retain donors. Communicating via email on a regular basis is a great way to help your donors remain informed and connected to your organization.

Mansfield2 recently shared the following tips for email marketing:

• Embrace a mobile-first design strategy. Make sure your email is designed to be easily read on smartphones and tablets. • Personalize your email campaigns and write short subject lines to maximize open rates. • Prioritize growing your email list in 2021. Consider adding an e-newsletter sign-up box to every page of your website. • Take email security seriously.

Taking advantage of today’s technology can be a daunting task for nonprofits. Developing a willingness to take on the challenge of keeping up with donor behaviors will allow for human connections, diversification, increased flexibility and, most importantly, survival to continue supporting your cause and helping those in need. F

Lorie Williamson, founder and owner of Blue Pencil LLC, combines her business and nonprofit experiences to help small business owners, entrepreneurs and nonprofits communicate effectively and efficiently in today’s ever-changing climate. For more information, visit www.BluePencil.site.

Williamson

Sources

1.  N.A. “7 Reasons Why Donors Give (and 1 Reason

They Don’t).” Network For Good. Retrieved from https://www.networkforgood.com/resource/7reasons-why-donors-give/. 2. Mansfield, H. “10 Email Marketing Best Practices for Nonprofits.” Nonprofit Tech for Good. Retrieved from https://www.nptechforgood.com/101-bestpractices/10-email-marketing-best-practices-fornonprofits/.

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