As 2021 comes to a close, we must plan our 2022 fundraising programs while accounting for the ever-changing nonprofit sector. Even though we can’t know exactly what the coming year will look like, we can make some informed predictions based on nonprofit trends that have been gaining popularity.
Let’s examine how to stay on top of the nonprofit fundraising trends that will shape the sector in the coming year.
Use these trends to design a modern and impactful fundraising strategy for the coming year.
1. Diversify Your Fundraising
The events of the pandemic have forever changed the way nonprofits strategize, plan, and work.
Organizations have had to constantly reassess their strategies and adjust plans to meet governmental regulations, societal expectations, and the needs of their staff and donors. Additionally, this continually shifting terrain has forced nonprofit professionals to become quick learners and agile workers.
While the sector has experienced its fair share of growing pains due to the pandemic, organizations and fundraisers can apply their newfound agility to develop more flexible and sustainable fundraising programs.
a. Target Donor-Advised Funds
Donor-advised funds (DAFs) are registered nonprofit organizations designed to facilitate charitable giving. DAFs provide significant tax benefits to donors and allow assets to appreciate over time, maximizing philanthropic investments.
DAFs have been contributing significantly to the nonprofit sector for a while now, but they’re gaining even more philanthropic importance. In 2019, philanthropists contributed $27.37 billion in grants to charities through DAFs, an increase of 15.4% compared to 2018
In 2022, try to identify and get in touch with DAFs that routinely give to organizations in your cause area. Doing so will allow you to find more major gift opportunities and network with high-net-worth individuals.
b. Accept Cryptocurrency Donations
Cryptocurrency is a digital currency that’s decentralized, secure, and transparent. While still in its early stages, nonprofits are starting to accept crypto donations such as Bitcoin, and this trend is expected to continue through 2022 as crypto grows.
Crypto is attractive to donors because it’s completely traceable, allowing them to see exactly where their money is going. Also, Crypto is appealing to millennial donors, who will soon become the largest segment of donors.
If you want to start accepting crypto, try using a donation platform. Check out GiveTrack, Binance Charity, and The Giving Block, nonprofits dedicated to providing other nonprofits with a safe and secure crypto donation mechanism.
c. Get Ready for Gen Z Donors
In 2022, we will start to see more donations from the newest generation of donors: Generation Z. One of the characteristics of the Gen Z age cohort is that they’re used to a personalized online experience. They’re used to platforms like TikTok, Netflix, and Youtube, that monitor their preferences and provide them with a personalized experience.
As machine learning becomes more integrated into our workflows, a personalized giving experience is becoming an expectation, especially to Gen Z.
So, check how many Gen Z donors you already have (you might be surprised) and find ways to catch their attention.
Craft More Personalized Appeals
KIT keeps track of your donors’ giving history and transactions so you can always ask for the right amount at the right time and in the right way. With KIT, you can make every donor feel like a major donor.
d. Embrace Artificial Intelligence
Artificial intelligence (AI) technology is no longer a niche. AI likely plays a huge part in your fundraising strategy already.
AI helps you be more flexible in your fundraising approach and provides you with new fundraising opportunities. For example, a recent study found that AI-driven donor segmentation provided 12.7% more in email campaign revenue and improved campaign ROI by 22.8% compared to manual segmentation!
For example, AI tools like KIT integrate with your existing CRM to segment and prioritize your donors to determine who’s most engaged. This way, you can always reach out to the right donor at the right time and spend less time on administrative responsibilities.
Also, as AI systems learn more about your donors’ giving history and transactions, they will provide you with increasingly accurate appeal recommendations.
2. Our Virtual Reality Is Here to Stay
Over the last few years, we’ve become incredibly comfortable working at a distance, and as a result, much of our work has moved online. Many of these changes have actually made us more efficient, and we predict that many aspects of virtual working are here to stay.
Below are some virtual trends you should hop on in 2022.
a. Continue Investing in Virtual Giving
Total online fundraising revenue for nonprofits grew by 32% in 2020, and this trend doesn’t show any sign of stopping in the coming years.
Additionally, recurring donations and social media giving programs make it extremely efficient for fundraisers to reach their donors online. So, fundraisers will continue to build out these programs that don’t require in-person giving.
New technologies such as QR code giving will make it easier to improve in-person giving. For example, when volunteers are canvassing or running fundraisers, they can accept donations online and skip the hassle of cash.
b. Make Sure You’re Mobile-Friendly
Remote work means that we’ll be working everywhere: cafes, waiting rooms, and even check-out lines! In these situations, sometimes you have to get some work done on your phone.
We don’t advise being tuned into your phone all hours of the day. However, when you’re working on the go, using tools optimized for mobile devices will help make your workflow seamless.
Donor experience should also be mobile-friendly! Mobile visitors account for 50% of web traffic and 25% of digital revenue. So, ensure that your website and donation pages are mobile compatible.
c. Hold on to Virtual Fundraising Events
While some of us may never want to set up a Zoom meeting again, attendees now expect to be able to participate in nonprofit events from the comfort of their own homes. As a result, we believe that virtual and hybrid events will continue to play a part in fundraising strategies going forward.
Hybrid events specifically will likely be the most common, as they offer the flexibility of virtual events and allow for the genuine human connection that comes from in-person events.
However, hybrid and virtual events don’t only benefit attendees. These events have a variety of benefits for nonprofits.
- Greater ROI: Through relying on virtual elements, you can spend less on things like rental fees, catering, transportation costs, and utilities.
- More Inclusive: Anyone around the world with an internet connection can join your event and contribute to your organization.
- Data Collection Opportunities: As attendees share their contact information through your sign-up forms, you can add them to your database. This provides you with a greater pool of potential donors and more fundraising opportunities.
To enjoy these benefits, it’s crucial to follow a few best practices.
- Find the right event management tools: For your event, you’ll need to find online tools for streaming, ticketing, landing pages, donation forms, and data management. Check out Zoom and GreaterGiving, two event management solution platforms.
- Record the event: Having a recording of the event will mean that stakeholders can feel included even if they’re preoccupied during the event.
- Live stream the event: Adding a live stream component will make your event more dynamic and exciting for participants.
- Rehearse your event: Use a rehearsal as an opportunity to work out any kinks, edit down your program, go over speeches, test your online tools, and check your internet connection.
Want To Uncover Valuable Donors Hidden In Your Database?
KIT enables nonprofit fundraisers to gather key insights and target donors who will contribute to specific campaigns. Book a personalized demo to learn how you can take advantage of this tool.
3. Corporate Giving Will Increase
We believe that the sector will need to work more and more closely with corporations over the next year as workplace giving and corporate philanthropy continue to become more popular. .
a. Employee Giving Will Grow
In 2022, you can expect to see more workplaces giving employees donation opportunities and designated volunteer time to engage with local charities.
b. Identify Corporate Social Responsibility Initiatives
Businesses continue to adopt corporate social responsibility (CSR) programs, contributing to nonprofits in the communities where they operate. Between 2016 and 2018, corporate giving increased by 11%, reaching a total of $25.7 billion in the US.
We can expect to see stronger Corporate Social Responsibility (CSR) efforts moving forward into 2022. Try to identify businesses in your community that have employee giving programs or regularly donate to organizations in a similar cause area to yours.
Ironically, the only thing we can confidently predict about the nonprofit sector is that it will continue to be unpredictable. So, it’s crucial to diversify your fundraising efforts, embrace digital solutions, and seize emerging opportunities. Pay attention to the trends listed in this article, and you’ll be set for anything the coming year has in store for you.