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Fundraising Trends to Watch in 2023
2022 was the year that we started to return to a sense of pre-pandemic life. Gone are the days of DIY haircuts, family gatherings over Zoom, and binge-watching the latest Netflix docuseries (ok, we might continue this one in 2023). With the return of in-person fundraisers, peer-to-peer events, and stewardship meetings, it was also an important year for fundraising!
With 2022 wrapping up, you may be wondering what's in store for 2023. Staying on top of the latest fundraising trends helps your organization stay current and supports overall revenue growth. It's now time to look forward and explore some of the nonprofit fundraising trends that we can expect in 2023!
Top 3 Trends for 2023
Nonprofit organizations play a vital role in delivering services, strengthening communities, and supporting those in need. And while every nonprofit is unique, there’s one thing that brings the nonprofit sector together: the necessity of fundraising to support nonprofit missions.
In order to maintain and grow their impact, nonprofits need to understand how trends affect their bottom line and how grabbing hold of these trends will attract new donors and engage existing ones.
Understanding this reality, we’ve listed the top five trends we’ve observed in the sector that will help you get ahead in 2023. We'll deep dive into a few of them in this blog,
- Flexible giving and participation options will be the new norm
- Donor retention strategies will breathe new life into your nonprofit
- Recurring giving programs will engage and satisfy stakeholders
- Personalized giving experiences are a necessity
- Workplace giving can extend your nonprofit’s mission
Trend #1: Flexible Giving Options
Flexible giving and participation options will be a huge 2023 trend! The pandemic changed the ways in which we interact with all businesses, including nonprofits. Donors expect to be able to provide their support in various ways and from the comfort of their own homes.
Nonprofit donors are varied, and while some donors would still rather receive direct mail and donate via check, many donors have moved online. In fact, even 47% of donors over the age of 60 give online. Establishing online giving options provides donors with giving methods tailored to their needs and creates a more comfortable donor experience.
Another benefit of adding flexible giving options to your fundraising strategy is that you can entice donors to give more and potentially reach new audiences. For example, nonprofit text messaging audiences grew by 26% in 2020. Similarly, mobile giving donations have increased by 205%.
The pandemic also changed the way fundraising events were held. As events moved online, donors could support their favorite nonprofit without leaving their living rooms. However, as nonprofits have started holding in-person events again, there is still an expectation that virtual participation will be an option. This virtual and in-person blend is known as a “hybrid event” or “hybrid fundraising”. With hybrid fundraisers, nonprofits have the opportunity to engage a larger audience and can connect with a greater diversity of supporters, making hybrid fundraisers a top 2023 fundraising trend!
See How Nonprofits Use Keela to Collect Online Donations
Get a glimpse of how Keela’s fundraising smart tools help nonprofit organizations strategize, streamline, and automate their fundraising efforts.
Trend #2: Focus on Donor Retention
Donor acquisition is an expensive endeavor. With approximately 70% of donors only giving to an organization once, nonprofits are often left with a loss on their initial investment in first-time donors.
However, it’s much easier and more cost-effective to motivate individuals to give who have already done so in the past. Additionally, fundraising technology is making it easier than ever to optimize stewardship techniques and improve donor experiences.
Using these tools to improve your donor retention will be critical in 2023, but how do you actually go about increasing your nonprofit’s retention rate?
Well, a recent study identified what people look for before they make a donation:
By ensuring donors are able to easily access this information, you can remove any barriers to making a donation. You can do this by regularly sharing impact reports that clearly demonstrate your nonprofit’s work and answer any donor questions. Additionally, it’s important to calculate your donor retention rate to understand how effective your retention strategies are.
After you’ve evaluated the current state of donor retention, it’s time to make a plan and set goals. Donor retention is built on strong relationships with donors that make them feel appreciated. By nurturing authentic, long-term donor relationships, you can increase your donor retention and guarantee sustained fundraising success.
Trend #3: Recurring Giving Programs
Monthly giving programs provide nonprofits with predictable and sustainable revenue while reducing the need for fundraisers to keep making individual appeals. Even better, monthly giving is becoming increasingly popular amongst younger donors.
Because recurring giving is more financially impactful and easier to manage, fundraisers need to make it a priority in 2023. Additionally, monthly giving is a great way to connect with the next generation of donors. For example, a study found that 60% of millennials are interested in monthly giving and 45% of them have already given online!
Over the past few years, we’ve seen events go from in-person to hybrid, and online fundraising revenue increase significantly. Nonprofits will need to be adaptable and flexible to thrive in this ever-evolving fundraising landscape. That’s why knowing about these 2023 trends is so important for your organization. The time is now to stop playing catch-up and be ready for what is coming next!
