Three Nonprofit Trends to Follow Now
It's never too late to implement effective strategies. Here are three ideas to supercharge fundraising!
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Nonprofit executives can feel like they’re always just trying to catch up. Whether you’re racing to hit a midnight fundraising deadline, hustling to get grant applications organized, or looking at a slew of donor records and trying to think of some new way to engage your supporters, it’s not always easy to zoom out and look at trends (much less try to get ahead of them).
So let me share three trends I think you need to follow, and I’ll share some ways you can implement them. I led nonprofit fundraising for a few decades and now sit on the technology side, so my viewpoint is a little unique.
While it won’t be the first time you’ve heard of these trends, it’s definitely time to pay attention to them.
Trend #1: Use Artificial Intelligence
AI and BI. Artificial and business intelligence have changed the game, and nonprofits should harness these tools to increase donor acquisition, engagement, and retention.
Nonprofit CRMs, like CharityEngine, incorporate AI and BI into their features. For example, our CRM uses AI to help identify opportunities with gift probability and a donation tool that calculates ask strings. Advanced fraud protection also uses AI to keep our system nearly bulletproof.
Business intelligence (BI) allows you to gain valuable and actionable insights into donor data. When you combine BI with advanced reporting, you can segment your audiences, identify trends, and measure the effectiveness of your campaigns.
What if your nonprofit CRM doesn’t offer AI and BI features? Well, for starters, call CharityEngine! But if a new nonprofit CRM isn’t in the cards, use tools like ChatGPT to help you develop campaigns, draft fundraising emails, and create social media strategies. There are plenty of tools to choose from, and they will all get “smarter” the more you feed in data and refine your parameters.
Here are some more ways to implement this trend:
AI-Powered Predictive Modeling
- Use AI to predict which donors will most likely upgrade their giving, lapse, or respond to a particular campaign.
- Implement predictive analytics to identify high-value prospects and prioritize outreach accordingly.
Chatbots for Donor Engagement
- Set up AI-powered chatbots on your website or Facebook Messenger to answer donor questions, provide updates, and even facilitate donations.
- Use chatbots for event registration or volunteer sign-ups.
Automated Grant Writing Assistance
- Use AI tools to help draft grant proposals by analyzing past successful applications and identifying key trends and language patterns.
- Automate portions of the grant application process to save staff time.
AI-Driven Donor Personalization
- Leverage AI to create personalized email and text message campaigns based on a donor’s past interactions.
- AI tools can recommend optimal send times and messaging styles and even suggest subject lines for higher engagement.
Smarter Social Media and Content Strategy
- AI can analyze engagement data to determine the best times to post on social media, suggest content topics, and even generate captions.
- Use AI-powered design tools like Canva’s Magic Resize or Adobe Sensei to create visually appealing materials quickly.
However it works best for your nonprofit, ensure you’re using these tools to enhance campaigns, save time, and increase efficiency.
Trend #2: Focus on Your Monthly Giving Program
We just sponsored an incredibly popular AFP webinar featuring Dave Raley, who spoke about the subscription economy and explored ways nonprofits can build a sustainable giving model.
Some of the largest nonprofits in the U.S. have grown rapidly because they’ve focused on recurring giving. Even if you don’t want to become a global organization, or even a national organization, every nonprofit can benefit from the solid foundation a strong monthly giving program provides.
If you are trying to build a program, we offer a comprehensive guide that will walk you through the process.
If you have a robust monthly giving program and you’re ready to take the next steps to optimize it, consider your billing technology. It might shock you to learn using common payment processors means you’re losing up to 30% of the income your monthly giving program generates. This isn’t hype, it’s a fact – one of our competitors proudly declares their ability to retain 62% of the income generated from recurring gifts.
What can you do about this? At a minimum, make sure your payment processor uses a credit card updater. If you want to get more specific, ask if their credit card updater can update American Express cards, because not every organization has access to AmEx.
If you want to learn how you can retain more than 90% of your monthly giving revenue—even up to more than 98%—only CharityEngine can guarantee those results. In fact, CharityEngine generally makes some pretty impressive guarantees.
Here are some more practical tips to engage donors and encourage them to convert to monthly giving:
Create a Special Donor Community
- Offer exclusive content, behind-the-scenes updates, or virtual meet-ups for monthly donors to make them feel like VIPs.
- Create a private Facebook or LinkedIn group for recurring donors where they can connect and engage.
Provide Multiple Payment Options
- Allow donors to set up recurring gifts via credit card, ACH, PayPal, Apple Pay, and other digital wallets to reduce friction.
- Consider offering choices such as DAFPay or in-kind gifts.
Optimize the Donor Signup Experience
- Reduce the number of form fields to simplify the signup process.
- Use a mobile-friendly design to ensure donors can complete the process from their phones in seconds.
- Ensure your forms adhere to best practices.
Leverage Matching Gift Programs
- Partner with corporations to offer matching gifts for monthly donors, doubling or even tripling their impact.
- Use automated tools like Double the Donation to make it easy for donors to check if their employer offers matching gifts.
Offer Flexible Giving Options
- Allow donors to adjust their giving amount easily, change their payment method, or pause their donations when needed.
- Provide tiered giving levels with meaningful impact statements (e.g., "$10/month feeds a rescue dog for a week").
Gamify Monthly Giving
- Introduce a donor recognition program with badges, milestones, or special acknowledgments for hitting certain monthly giving anniversaries.
- Send personalized thank-you videos when donors reach key milestones (e.g., one year of giving).
Trend #3: Embrace the Power of Multichannel Outreach
Relying too heavily on one channel for fundraising can be risky business. You must employ several outreach methods; not only will this protect you if one channel isn’t performing, but it will also help you reach your constituents where they are. Your donors are a varied group. Some will respond to direct mail or a phone call, some prefer email, and some won’t even see the message unless it comes through as a text.
If you use a CRM with native fundraising tools built into the system, planning and executing a complex multichannel campaign is easy.
What if you don’t, or what if you just want some other ideas? Here you go:
Personalized Donor Journeys: Use your CRM and analytics tools to segment audiences and tailor communications. Whether you’re using AI-driven insights or traditional data, personalization can turn a one-time donor into a lifelong supporter.
Consistency Across Platforms: Ensure that your messaging, branding, and donor experience are seamless across every channel. From social media posts and email newsletters to your website and event experiences, a unified approach builds trust and recognition.
Interactive and Engaging Content: To engage donors in different ways, leverage a mix of content—live webinars, virtual tours, Q&A sessions, and dynamic social media campaigns. Interactive elements not only capture attention but also foster a sense of community and involvement.
Feedback and Adaptation: Integrate feedback loops using surveys or social media polls to understand donor preferences. Based on these insights, continually refine your strategies to ensure you’re always meeting your supporters’ needs.
Embracing multichannel campaigns will help you drive acquisition and retention and keep your nonprofit at the forefront of the ever-evolving digital landscape.
Time to Get Started!
These three trends—AI, monthly giving, and multichannel engagement—aren’t just buzzwords; they’re powerful strategies that can help your nonprofit thrive in an increasingly digital and donor-driven world.
The good news? You don’t have to overhaul everything overnight. Start small—test AI-powered tools, optimize your monthly giving program, and refine your donor engagement across multiple channels.
The key is to take action now. Nonprofits that embrace these trends will be better positioned to increase donor retention, maximize fundraising efforts, and create deeper connections with their supporters. So don’t wait—start implementing these ideas today and watch your nonprofit grow!
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