Five Fundraising Trends for Nonprofit Organizations in 2023
As we move into the new year, it’s important for nonprofit organizations to focus on fundraising trends. This will help you make the most of your resources and maximize the impact of your development program. Here are five trends to watch out for in 2023.
1. The economy will present challenges across all sectors of giving.
Individuals will need to deal with the challenges of high inflation rates and falling stock prices. In the face of a recession, many corporations will be cutting their sponsorship and contribution budgets. Some foundations may have to cut back because falling stock prices means less income from investments. Government funding will be below pandemic levels. In all cases, this means that fundraisers need to be creative and nimble to increase the dollars raised.
2. Donor retention and growing your donor base will be key to success.
Fundraising is relationship driven. In the first year of the pandemic, organizations that stayed close to their donors and communicated regularly turned in the best results. This will also be important in a time of economic weakness. Organizations will need to show their impact and results and demonstrate a sense of urgency. Keeping in touch by phone, email, social media, in-person visits and hosting events will all keep your current donors engaged and also bring in new donors.
3. Online giving is growing exponentially.
Dollars donated through giving web pages, text, crowdfunding, peer-to-peer platforms, social media and mobile apps make up a larger part of giving each year. Giving Day continues to build momentum. Messaging needs to communicate impact and success in short bursts. Organizations need to be flexible and use a variety of platforms to reach donors and encourage giving.
4. Corporate and foundation philanthropic programs will continue to emphasize diversity, equity and inclusion.
This is a long-term commitment on their part. Nonprofits will need to show how they are meeting this need and how they are measuring success in order to receive foundation and corporate support.
5. Leveraging your data will become more important in the coming year.
As a first step in retaining donors, a thorough review of your data can uncover your most important donors and the most effective ways to communicate with them. The upfront commitment of time and effort pays off in strategies that help you retain key donors and increase giving from your strongest supporters.
Hammond & Associates can work with you to develop strategies to meet these challenges and take advantage of the changing fundraising environment. I look forward to learning more about your mission and how we can work together to improve your results.