by Julie Kennon
Election cycles affect everything, including nonprofit donations! This article shares some tips to help your nonprofit thrive during a politically active season.
Presidential elections impact many facets of our society, and this extends to nonprofits. During an election cycle, public sentiment and media coverage shift focus and can influence donor behavior. Understanding how elections affect nonprofit donations is crucial for organizations hoping to successfully navigate the next few weeks.
Highly political nonprofits will leverage the election season, but other nonprofits can also consider ways to use it to their advantage. In this article, we will explore the multifaceted ways presidential elections can impact nonprofit donations—and what you can do to keep the donations coming in.
Increased Political Engagement Spikes Donations
As candidates stump, they zero in on issues of great concern to most Americans. This means that public interest in social and political concerns grows, media coverage surges, and conversations and debates are sparked. Nonprofits that align with issues dominating the national conversation may see an increase in donations as donors become more motivated to support causes they feel are directly impacted by the election outcome.
Remember the 2020 election? Organizations focused on racial justice, voting rights, and environmental advocacy saw donations surge. Others not connected to a hot-button issue might have felt a little forgotten.
Ensure you’re part of the conversation by increasing your public-facing reach. Double down on social media posts, launch a text-to-give campaign, use email automation to schedule a series of sends that communicate stories about how much good your nonprofit does. If you’re not part of the political conversation, keep your nonprofit top of your donors’ minds through regular communications.
What about PACs?
Political Action Committees (PACs) and civic engagement nonprofits, such as voter education initiatives, will often see an increase in donations during an election cycle. This shift in donor priorities can come at the expense of non-political charities, such as those concerned with animal welfare, healthcare, or education. How can you combat a potential dip?
There are two opposing tactics that can work, and you can choose which makes the most sense. You can strategically align your messaging with election-related themes to become part of the swirl of political coverage. Conversely, you can differentiate your messaging and emphasize the continued importance of your mission regardless of political outcomes.
Either way, it is always wise to double down on donor education, highlighting how ongoing support impacts your mission and reminding donors of how valuable their loyalty is.
Economic Uncertainty Impacts Donor Confidence
Presidential elections can mean policy changes, and this can mean economic uncertainty. Economic uncertainty, as we’ve learned all too well over the past few years, can significantly impact donor confidence and behavior. Some donors are inclined to hunker down and wait to see how things play out after the election dust settles, while others decide to increase donations, anticipating tax law changes that will benefit those who make significant charitable deductions.
The most effective way to mitigate cyclical giving changes is to focus on building a strong monthly giving program now. Monthly donors are less likely to casually change their commitment and are more likely to remain loyal for the long term, regardless of the political climate. Diversifying your revenue stream is another foundational strategy for withstanding economic uncertainty, and it’s recommended for any nonprofit at any time.
Regulatory Changes Can Cause Concern
There are a few different ways regulatory changes can impact donors.
- If a regulatory shift changes the limit of what is tax deductible, this can cause donors to increase or decrease what they contribute.
- If there are increased requirements for transparency and reporting, donor confidence can grow if they see nonprofits using funds responsibly (this is particularly true for major donors or foundations).
- Data privacy regulations can limit marketing and fundraising.
- Even corporate giving regulations, such as tax incentives for matching gift programs, can influence donor behavior.
It is crucial that nonprofits keep a close eye on proposed tax policies during presidential campaigns and be ready to adapt fundraising strategies based on potential changes. You can also educate donors about the importance of their contributions to mitigate tax law changes.
And while nonprofits likely can’t swing regulatory votes, the takeaway is to always be a responsible steward of your donors’ money. Regulatory changes can expose scandals and fraud in the nonprofit sector or laws could be passed requiring stricter governance or accountability. You’ll want to be sure you’re in the clear, no matter what happens.
Consider Your Timing
Anecdotally, donations follow a pattern during election years. Nonprofits often experience a pre-election surge in donations as political engagement peaks, and then a more unpredictable or wobbly post-election period dependent on the outcome. This is, of course, going to be particularly true in years with highly contentious elections.
Savvy nonprofits will capitalize on these predictable swings. Pre-election, launch targeted campaigns that resonate with a heightened sense of civic responsibility. Regardless of what your mission is, capitalize on the general feeling that we’ve all got to do our part to make the world a better place.
Post-election, forget about politics and run messaging that taps into the emotion of your mission. Whether they are eager for a distraction or feeling energetic and optimistic about the future, offering a new focus and a concrete way to have an impact can be highly effective.
Donating Along Party Lines
It’s the elephant (and donkey) in the room, but it’s unavoidable…climate change, reproductive rights, and immigration are all going to see enormous fundraising shifts along party lines. There will be relatively equal fundraising success pre-election, but the party that takes office will likely see continued increases in donations while giving elsewhere slows a bit.
And it’s bigger than just the headlining issues. If your nonprofit skews conservative or liberal, you will see similar surges or downturns.
Unless your organization wants to lean into the political messaging, which many do and consider an effective strategy, it’s wise to choose an apolitical, mission-centric message and stick to it. It’s easier to take the slow and steady road than to try to bet on the outcome of an election!
Post-Election Philanthropy: Now What?
Presidential elections introduce both opportunities and challenges for nonprofits. Shifts in donor priorities, economic uncertainty, policy changes, political polarization, and increased media coverage and messaging can all shape donor behavior during election cycles.
Nonprofits must be prepared for almost any scenario after an election, developing strategies to reach out to donors with consistent, positive messaging about the importance of your mission. Continue to educate donors, show constant appreciation for their ongoing support, and encourage them to spread the word about the work you do.
Most of all, stay nimble, and understand that political volatility is short-term. It gives you a brief season to communicate in a slightly different or more intense way with your donors, so take advantage of that opportunity. When the dust settles, your nonprofit and your mission will still be there, and it will be time to go back to business as normal.
