Trends in Philanthropy: Strategies for Nonprofits in 2024
alexphotos, designed by freepik
As we navigate the complexities of 2024, with economic shifts, high inflation, and an election year, nonprofits face unique challenges and opportunities in their fundraising efforts. Here’s a look at emerging trends and practical strategies to help your organization thrive in this dynamic environment.
1. Emphasize Planned Giving and Bequests
Trend: Despite fluctuations in individual giving, bequests and planned giving offer a stable and long-term solution for nonprofits. According to the Lilly Family School of Philanthropy, planned gifts are projected to rise significantly, providing a reliable revenue stream for organizations.
Action: Start or enhance a planned giving program. Communicate the benefits of planned giving to your donors, highlighting how their legacy can support your mission. For instance, bequests accounted for an estimated $45.60 billion in 2022, showing a growing interest in deferred giving. Also, consider that 23% of millennials are more likely to include charitable giving in their estate plans, compared to previous generations.
2. Encourage Recurring Donations for Unrestricted Use
Trend: Although overall individual giving may be decreasing, donors are choosing to support fewer organizations with more substantial contributions. This shift underscores the importance of personalized stewardship and cultivating deeper relationships with your supporters.
Action: Strengthen and sustain your connections with donors by leveraging data-driven insights to customize your communication and engagement strategies. Recognize their contributions and illustrate the impact of their support to build lasting loyalty. Recurring donations are increasingly popular, with millennials particularly embracing subscription-style giving. In fact, recurring donors have an average lifetime of 8.08 years, compared to just 1.68 years for non-recurring donors, according to GivingUSA. Prism suggests that focusing on recurring donations is one of the most effective strategies to boost giving this year and beyond.
3. Leverage Technology for Fundraising
Trend: Technology is revolutionizing philanthropy by providing innovative ways to engage with donors, gain deeper insights into their preferences, and streamline fundraising operations.
Action: Invest in advanced tools such as AI for donor interactions (e.g., ChatGPT for personalized communication, Grammarly for polished content), donor management systems, and online giving platforms. Utilize social media to launch and amplify campaigns with minimal initial effort, while involving board members and supporters to expand your reach. These technologies can help you track donor preferences, enhance campaign effectiveness, and broaden your outreach efficiently.
4. Embrace Creative Fundraising Techniques
Trend: Innovative and creative approaches can capture donor interest and support and breathe new life into an organization’s fundraising practices. You don’t want donors saying “it’s the same old__”.
Action: Explore alternative fundraising formats such as virtual events, crowdfunding campaigns, or collaborations with local businesses. These methods can offer interactive and unique experiences that align with your mission and values. While they may yield smaller returns compared to large galas or auctions, they often involve less effort. Focus on hosting one major fundraiser annually and complement it with innovative fundraising activities throughout the year (a few - not too many!) managed by a committee or volunteer group, with support from your staff.
Final Thoughts
In a year marked by economic uncertainty and political shifts, nonprofits must be agile and strategic. By focusing on planned giving and recurring donations, leveraging technology, and adapting to changing conditions, your organization can continue to thrive and make a meaningful impact. Embrace these trends and practical tips to navigate the evolving landscape of philanthropy and drive success for your cause.
As always, happy fundraising!
Kara & the Prism team
