5 Nonprofit Trends to Watch

The nonprofit sector is ever-changing, and things move so fast that we practically get whiplash trying to keep up. On all stages—global, national, and local—it can sometimes seem as though chaos reigns, and nonprofits are often searching for a rational voice to cut through the noise.

We get it. To remain ahead of the curve, it’s important for nonprofits to understand the latest trends and evaluate how they might impact their fundraising and outreach. But you don’t have the time or inclination to read every article that crosses your desk!

In this article, we’ll share five trends that have been getting some buzz, and we’ll offer recommendations on how you might use those that can help with donor engagement and fundraising.

5 Key Nonprofit Trends

While there are many we could talk about, these five trends are ones we think nonprofits should consider:

1. Artificial Intelligence (AI)

We’ve been talking about AI for some time, and by now, you know it’s here to stay. It’s also revolutionizing the way nonprofits operate. From using ChatGPT to help nonprofits with grant writing and RFPs to personalizing campaigns and using predictive analytics for gift probability, there’s almost no end to how much AI can help you engage your donors and raise more money.

What are some other ways your nonprofit can leverage AI?

• Use a chatbot on your site to guide supporters through the donation form or provide program information.
• AI-powered tools can match volunteers with opportunities and shifts based on their skills, availability, and interests.
• Let AI hyper-personalize donor communications, filling in past gift amounts or thanking each donor for their most recent gift.
• Gather insights from social media with sentiment analysis, identifying how people perceive your programs. Then, use AI to craft posts and publish them at the most opportune time.
• AI can flag irregularities to help prevent fraud.
• Any routine task, like data entry or donor acknowledgment emails, can be automated and informed by AI.

If you aren’t aware of the role of AI in your current technology stack, ask some questions. This trend is moving fast, and you don’t want to be left behind.

2. Online Giving

While this might seem obvious, it is a fact: according to Double the Donation, 63% of donors prefer to give online with a credit or debit card. The convenience can’t be beat—using your phone, you can donate at any time of day—and it’s a quick transaction with secure payment gateways. In a multichannel campaign, most nonprofits drive supporters to their online donation form, whether the communication comes from email, direct mail, or SMS/text.

Here’s what you need to know about online giving:

• Optimizing your donation form is an absolute must. There are small changes you can make that will drive up donations fast.
• Use storytelling to engage your donors. When you can share impact stories and photos to show the difference your nonprofit makes, you’ll compel action.
• Set goals and show progress. Sometimes a thermometer on your website or donation form helps supporters see how close you are to reaching a goal. If you can qualify a gift ($50 feeds a family for a week), it’s something donors can quickly visualize.
• Consider your campaigns. Use urgency, such as matching gift deadlines or year-end giving, to drive action. Plan a peer-to-peer campaign with individual fundraising pages and experiment with encouraging giving through social platforms.
• Build donor confidence and trust by putting earned badges on your donation form and highlight security measures. Always be transparent with where funds go and how they’re used.

And, of course, thank donors immediately and acknowledge them publicly, on your site, in emails, or on social media.

3. Fractional Leadership

Nonprofits are increasingly taking advantage of a fractional leadership strategy, filling leadership roles with part-time or interim executives. Maryellen Gleason, who joined us for a webinar on transformational fundraising, is often called in as an interim CEO when extraordinary fundraising outcomes are required.

The benefits are clear:

• You can rapidly adapt your board or team leadership to align with organizational growth. It’s scalable expertise.
• Risk is reduced because these critical positions aren’t being filled on a full-time basis.
• The impact is accelerated when you bring in specialized experience to address immediate challenges or opportunities.

What are some times a nonprofit might consider bringing in a fractional leader?

• When there is a significant change, such as in mission or leadership, an experienced executive director can help smooth the process.
• If your nonprofit is planning a significant capital campaign and you don’t have an in-house Major Gifts Officer, bringing in a temporary development officer can improve results.
• Nonprofits that struggle with cash flow and compliance issues can benefit from a temporary Chief Financial Officer.
• A fractional Chief Strategy Officer can help your nonprofit develop long- and short-term strategic plans. Once you have the roadmap, their job is done.
• Writing a lot of grants or an RFP? A fractional grant writer can be of great help.

The idea behind fractional leadership is that it fills in the holes in your team. It’s worth taking a critical look at your challenges and the staff you have to address them to identify any shortfalls.

4. User-Generated Content (UGC)

We live in a TikTok world right now. Content creation is exploding, and it’s an immediate and compelling form of communication. Use this to your advantage!

Video content, in particular, is highly engaging and effective. It can be used to amplify authentic voices and build trust.

What are some ways your nonprofit can leverage UGC?

• Showcase impact stories. Will any program participants or beneficiaries share testimonials, photos, videos, or quotes about how your work has helped them?
• Highlight donor testimonials. Encourage your donors to share why they give, what the cause means to them, or how they’ve benefitted from supporting your work.
• Run social media campaigns and create a branded hashtag encouraging people to share their stories.
• Engage volunteers as advocates. Spotlight your volunteers and ask them to share what motivates them. They can share videos or photos and can influence others to join them.
• Gather content from events. Encourage participants to share photos if you have a fun run or throw a gala. You can even have a photo contest to make it fun!

Getting your beneficiaries and supporters to share your impact is meaningful and from the heart. Your team can certainly join in and post content, too!

5. Gen Z and Millennial Leadership

Not to sound like a grandma, but the kids are taking over! Younger generations are increasingly moving into nonprofit leadership roles, bringing fresh perspectives and innovative solutions.

Nonprofits should embrace this trend and benefit from it. Indeed, this isn’t a trend that’s going away, so it’s best to figure out the best ways to harness the strengths of these generations.

Here are some tips that will help teams adapt and are healthy changes for any nonprofit:

• Create a culture of innovation in which risk-taking is encouraged and new ideas are welcome. Embrace new technology so you can leverage the latest advancements to connect with donors. And create opportunities for collaboration among all your team members.
• Provide leadership development. Whether you pair younger team members with more experienced mentors or offer leadership training programs, ensure there are clear career pathways for those who wish to lead.
• Prioritize work/life balance. If you offer work-from-home days or flexible hours, you’ll appeal to a younger generation. Provide resources for mental health and emphasize the difference your nonprofit makes to keep the work aligned with core values.
• Embrace diversity, equity, and inclusion. DEI is more than a buzzword; it means that everyone feels welcome and comfortable. Implement diverse hiring practices, model equity in leadership, and foster an inclusive environment in which all can shine.

Embrace the energy of younger generations and you’ll see that your nonprofit is able to connect with a varied and extensive audience.

Looking Ahead

The nonprofit world is evolving rapidly, and staying ahead means being adaptable, innovative, and intentional about adopting the trends that best serve your mission.

Whether it’s leveraging AI, optimizing online giving, exploring fractional leadership, harnessing the power of user-generated content, or embracing the leadership of younger generations, the opportunities for growth are immense. By understanding these trends and incorporating the most relevant ones into your strategy, your nonprofit can deepen donor connections, amplify impact, and continue to thrive in an ever-changing landscape.