Five Trends that Will Affect Online Fundraising in 2010
No one can say for sure what 2010 will bring. Will there be an economic recovery? Will direct mail continue to thrive? Will more and more donors
continue to turn to the Web as their preferred means of giving?
Last year the Chronicle of Philanthropy shared their "Trends That Will
Affect Fund Raising in 2009," penned by Robert F. Sharpe, a planned-
giving consultant in Memphis.
In 2010 Network for Good has taken a crack at the five trends we've seen
(with an online spin):
1. You may see a greater number of donations with a smaller average
gift size. Here's a piece of news that's probably not news to you: Your donors
are generous. They want your organization to succeed. They're even willing
to continue to give when the economy is in a bad way. However, we've found
that people made more, smaller charitable contributions in a down economy. What this means for you: Nonprofits will have to mentally prepare for the
possibility of receiving smaller gifts, and it will be on your shoulders to
reach out to your past supporters (and their networks!) and grow your
donor base.
2. As much as the media talks of a possible economic rebound,
prospective supporters will still be wary of donating to new causes. Yes,
folks will donate (as we discussed in number 1 above), but that crowd of
new potential donors will need to be sold on the good works and impact
their gifts can really make. They'll be looking for transparency (i.e., the real
story behind where donated funds go) and the potential for real involvement.
What this means for you: You will need to work your hardest to make your
mission accessible. Show where the money goes. Share the credit when
your nonprofit does its great work. Make your supporters a part of the
picture—not just an ATM in the background.
3. E-mail outreach will continue its upward trend, meaning more
e-mail in subscribers' in-boxes. The popular buzzword for this phenomenon
is "clutter." As more companies, schools, and other nonprofits begin to use
e-mail marketing, your subscribers will be moving even more quickly and
furiously to dig through the clutter and find the messages that really appeal
to them. What this means for you: You need to be at the top of your e-mail
game! With some stellar subject lines and catchy (relevant) copy, your
messages will rise to the top.
4. Recurring gifts will be a huge portion of online giving. Here at
Network for Good, we've seen that approximately 20 percent of all
donations coming through are from recurring (regular, repeat) donations.
With a one-click set-up, many donors have shown their preference for
this type of giving for a number of reasons: folks needn't remember on
their own to come back and give again; it's convenient and feels like
"automatic bill-pay"; and donors can divide up a larger gift over time.
What this means for you: Your nonprofit needs to make recurring giving
a priority in your online fundraising strategy—not a footnote. It needs to be
an option every time a donor enters a gift amount. With all of your
messaging and fundraising appeals you can encourage this process.
5. As in the past, year-end gifts will account for a substantial
percentage of total annual contributions. For a bit of background,
December giving comprised about a third of the total dollar value and a
quarter of the total number of donations made in 2009. Fourth-quarter
giving comprised over half of the total dollar value and number of
donations made in 2009. This is not out of the ordinary, either—we've
seen roughly these numbers for the past five years! What this means for
you: Though we're happy to share procrastinator's tips when November
and December eventually roll around, we're much happier to encourage
you to start planning now. Start thinking about where folks got stuck on
your Web site and what changes you can make during the first quarters of
the year. Review the communications you sent out—which ones did well
and which ones fell flat? The earlier you analyze and plan, the more
successful you can be next time!
Reprinted from www.fundraising123.org |