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Giving Trends Call Out the Importance of Attracting New Donors

Posted Jul 24, 2023 01:55 PM
Giving USA Foundation recently released their 2023 report on giving trends in the U.S., and there are plenty of takeaways that nonprofits should pay attention to.

You can read the 2023 report in full after subscribing. This article from BWF provides a helpful summary.

The headline: Fewer people are making charitable donations and Americans are now donating only 1.7% of their disposable income. Overall, giving in 2022 saw a decline from the record highs of 2020 and 2021, when COVID-19 and racial injustice were at the forefront of our national conversations. Charities received $499.33 billion in support in 2022, down from $516.65 billion in 2021. Adjusted for inflation, this is a 10.5% decrease in growth.

Fears of a recession, inflation, and market uncertainties are plausible explanations for this dip, as well as the general attitude that the “emergency” mindset of 2020/2021 has ended. So what do fundraisers need to do?

First, it is essential to invest time and resources in cultivating new donors. Asking your current donors to ask their friends, colleagues, and family members to give is the easiest way to do this. This is made very easy by using peer-to-peer fundraising platforms such as Washington Gives. Check out this fundraiser for baby animals by Center Valley Animal Rescue! Or ask a company to do a campaign for you, like this Clark Nuber team for Food Lifeline. Generally, donors cover the credit card/ACH and platform fees, so nonprofits end up paying less than 1% of the donation when raising money through online giving.

Second, focus some of your time on cultivating the next generation of givers. Email is still the best tool for reaching donors of all ages, but you should also build social media campaigns or online events that drive younger donors to your fundraising page. More than 75% of Gen Z and Millennial donors prefer to give online.

We’ve just reopened registration for Washington Gives, our year-round fundraising platform that hosts GiveBIG and GivingTuesday. During the "off-season," use all the features such as individual or team/company fundraising pages to do a special campaign focused on a program or specific funding need. By using matching gifts, fundraising goals, and the storytelling potential of your profile page, you entice people to join an active short-term campaign. The pay-off? Attract new donors, diversify your fundraising strategies, and provide much-needed revenue during quieter times.

Tap our Fundraising Advisory Services to get an affordable expert consultant that can help build your fundraising plan.