What considerations do you deliberate on when developing a fundraising strategy? Some of the most important considerations are how people donate; who donates; when they donate; and how to capture the next generation of income-earners. So let’s discuss these trends to better understand how to maximize your fundraising efforts!
How do people donate?
Trend: New technology in donations
As more and more people move to plastic for even the smallest purchases, fundraising campaigns that rely on donations on-the-spot can find themselves coming up short. One solution is the text-to-donate appeal often implemented in concert with a “pocket change appeal.” The average donation coming into organizations via a text-to-donate fundraising vehicle is $107. This can be a standalone campaign collection method, which is becoming increasingly popular for non-profits with a strong mobile and web presence.
Text-to-donate isn’t the only technology to consider. Email campaigns are popular but be sure to use an automated email marketing service because on average it takes 1000 fundraising emails for a non-profit to raise $17. Even though many non-profits are fortunate enough to have volunteers, volunteer time is valued at $23.56 per hour, so the value expelled in the time it takes to compose 1000 emails can likely yield better result elsewhere.
Social media is a growing focus area with 13.27% of donations to non-profits coming directly from social media. Of social media platforms, Facebook is the most popular source of fundraising capital, which is likely because of the personal nature of the platform and the increased likelihood of people to give to people they know. Oftentimes users can feel pressure to donate to the causes their friends and family self-promote on the platform. Another reason it can be the most lucrative platform is the implied trust in the friend-built community of Facebook.
Of course, these are industry averages, the best way for any non-profit to determine what fundraising vehicles will best help them achieve their goals within their resource restrictions is test new technology options and monitor results.
Who is donating?
Trend: Women are generous with charitable gifts
At last tally by Pew Research, the wage gap was sitting at 83% so this trend may come as a surprise. The wage gap isn’t creating a gap in female giving. Of all donations, 64% are coming from women.
Idea: As you plan your marketing strategy, amplifying a female-focused campaign could ramp up the increased inclination of women to donate.
When are they donating?
Trend: Eleventh hour donations
Based on data from two consecutive years (2013, 2014), there is a surge in donation level and average donation amount at the end of the year. In the final three days of the year, December 29-31, 12% of all non-profit giving is contributed.
How to capture the next generation of income-earners?
Trend: Millennials will race to give!
Millennials have now surpassed GenXers as the largest generational participation in the American workforce. With 53.5 million millennials in the American workforce as of Q1 2015, this is far too large a population segment to ignore. Pinpointing a way to maximize the millennial market is important for non-profits to consider.
What motivates millennials to give? Research shows that more than half millennials (64% to be exact) prefer active fundraisers like walking, running, and cycling events.
When creating special events, like a charitable half-marathon or dance-a-thon to entice millennial engagement in fundraising for your organization, be wary of return on investment (ROI). Nearly 50% of non-profits use special events to raise funds but many have difficulty controlling event costs. On average, many non-profits were spending $1.33 to raise $1 at special events.
Have a question? Ask John Pfenning! One thing that has a surefire ROI? Signing up for the SBG newsletter, so you don’t miss any of these educational updates, tips, and ideas to make your non-profit the best it can be!
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