In 2022, we started to get back to a more pre-pandemic state. There were far fewer digital gatherings; instead, we had more in-person fundraisers and peer-to-peer events.
With 2022 drawing to a close, it’s time to look ahead to what will happen in the fundraising world in 2023. For anyone involved in their communities, it’s important to keep track of the latest trends that will be affecting nonprofits.
As a vital part of the community, a nonprofit organization can help deliver vital services and support those in need. While each organization is unique, the need for fundraising is universal.
Here are the top trends of philanthropy as we move into 2023.
Flexible Giving Options Are Here to Stay
In 2023, philanthropy will continue to be influenced by the changes brought about by the pandemic. As a result, people will be able to give more freely and easily, often from the comfort of their homes.
Many donors prefer to give to a nonprofit through check or direct mail, but some have also moved online. In fact, almost half of donors over 60 give online. This new approach to philanthropy allows people to give in a more personalized way and provides them with a more comfortable experience.
One of the biggest advantages of flexible giving options is that they can help organizations reach new audiences. In 2020, for instance, the number of people giving through text messaging grew by 26%. Mobile giving also increased by 205% in the same year.
Hybrid events are a type of fundraising that combine the traditional in-person and virtual components. They allow organizations to reach a larger audience and connect with more diverse supporters. This type of fundraising is a top 2023 trend for charitable organizations.
Recurring Giving Programs
Nonprofits can now benefit from recurring giving programs, which provide them with stable and predictable revenue. These programs also help reduce the need for individual appeals.
In 2023, fundraisers must make recurring giving a priority. It is easier to manage and more financially impactful, allowing them to connect with the generation of donors who are giving online. A study conducted in 2020 revealed that 60% of millennials were interested in giving monthly, and 45% of them gave online.
Due to the increasing number of hybrid events and the rise of online fundraising, it is important that organizations are ready to adapt to the changes taking place in the fundraising landscape.
Heavy Focus on Retaining Donors
Getting new donors is an expensive process, and many organizations fail to attract and retain them due to the high acquisition cost. Thus, it’s easier to motivate past donors to give again. Fundraising technology makes it easier than ever to implement effective stewardship techniques.
Despite the advantages of using technology to improve the retention of donors, it is still important that organizations take the time to implement effective strategies to increase their numbers.
One of the most effective ways to improve the retention of donors is by making it easier for them to access information about the organization. This can be done by sharing reports that provide a clear and comprehensive view of the organization’s work. Another important step that organizations should take is to calculate the effectiveness of their retention strategies.
After assessing the current state of their donor retention, it’s important that organizations set goals and develop a plan. One of the most important factors an organization should focus on is improving donor retention by building strong relationships with potential donors.