Fundraising Strategy 2021: 10 Trends to Consider!
Posted on May 5, 2021
The year 2020 was the year most of us would like to wipe out from our memories. With the vaccine coming into play, 2021 is expected to help us recover from the state the pandemic had brought the world to! Fundraising in the last year faced its own set of challenges forcing nonprofits to rethink their strategies that will influence donors.
The pandemic has greatly transformed the way businesses’ function. There is a huge thrust on digitalization. In fact, we can say that technology and digital presence are no longer an option but a compulsion for all businesses including nonprofits. Therefore, if you are looking to position your nonprofit for fundraising success, you will need to build better fundraising strategies.
How to Plan an Impactful Fundraising Strategy?
All nonprofits are racking their brains on what fundraising strategies will work in 2021?
While we hear of several technological innovations and marketing techniques, we should not be in a hurry to adopt them without analyzing whether they are aligned with the working of our business model.
It is best to adopt a simple basic approach to developing a fundraising strategy for your nonprofit.
Here are a few aspects that you need to consider before you plan your fundraising strategy for 2021:
1. Analyze Last Year’s Performance
Before you plan your strategy for 2021, you must check out your last year’s performance.
This could be aspects like:
- The funds generate
- Losses incurred
- Number of donors lost/gained
- Email subscribers
- Donation patterns, etc.
This will give you a fair idea about the areas of improvement. Also, you will know exactly how much funds you have on hand and can budget your marketing expenses accordingly.
When you are planning your fundraising strategy for 2021, it is recommended that you make a data-based plan.
What this means is that you collect data to find out details like:
- Demographics of your donors
- Details of global fundraising in 2020
- Market trends
- The type of charities that people liked to engage with, etc.
Businesses across the globe are adapting to new technologies. We have seen during the past year how buyers have switched from brick-and-mortar stores to online stores or how virtual events have replaced physical events, etc.
However, not all technologies are relevant for all businesses. Nonprofits need to identify the technologies that will help them in their fundraising strategies and invest in them.
These principal components of fundraising can be considered as the foundation on which you can build your fundraising strategy for 2021!
Let us look at the Top Fundraising Strategy to Capitalize in 2021
1. Choice of Charities
You need to select the charities that your nonprofit associates with carefully. It is important to bear in mind that all those charities that you had been supporting before the pandemic may not be the ones that donors are interested in anymore.
This is where the research that you have done will come in handy. Data that you have collected will give you an idea of the charities that donors are inclined towards.
So, based on this you can choose the charities for your nonprofit. However, make sure that you select those charities that are aligned with the vision of your nonprofit.
2. Aligning Stakeholders
In 2021, nonprofit fundraising will need extensive marketing efforts. Technology will also have a vital role to play in nonprofit fundraising. Hence, before you plan, it is essential to identity the entities that will add value to your fundraising efforts.
It is also beneficial to consider using tools that facilitate collaboration through a single platform. This streamlines coordination and saves time in planning and strategizing.
2020 has taught us the importance of financial planning. During the last year, all those organizations that had saved sufficient funds were the ones that could cope with the economic downturn.
Therefore, any fundraising strategy should begin with a budget where specific sums are allocated for each activity associated with the fundraising strategy.
4. Make Online Donations Easy
With people turning online for all their needs, facilitating online donations is a Must for nonprofits. Also, bear in mind that many donors are still not very comfortable using technology, so make online donations easy for them. You can offer donation buttons on your website, social media, etc. Make sure that donations are possible with all devices like tablets, iPads, etc. especially mobiles.
5. Encourage Monthly Donations
The financial challenges might discourage many donors. Therefore, you can encourage your donors to donate small sums monthly. Some nonprofits are accepting donations of $10 also to motivate their donors.
If donors are encouraged to donate small amounts during their tough times and they know their funds are being used well, they will be more inclined to donate monthly.
6. Revamp your Email Marketing
Many of you must be having a subscribers list and you may be sending emails to your subscribers. However, it is time to check your existing email list.
You need to identify the inactive subscribers. Reach out to them and find out why they are not responding. Purging your email list is essential so that your efforts are not wasted on unresponsive subscribers.
Subscribers may not be active due to several reasons. Many people change their email addresses, or they may have moved to some other non-profit, etc. Therefore, you need to identify the ones who can come back to your nonprofit and think of ways of attracting them.
Also, when you critically assess your existing email list, you will get a clear idea of the number of existing email subscribers. This will help you set clear goals on the number of subscribers you intend to reach in a specific time frame. This will help you plan your email strategy.
7. Revamp your Website
In 2021 you might find that the features or services of your website before the pandemic may no longer be relevant under the current circumstances. Therefore, it is a good idea to critically evaluate your website and tweak it so that it meets the demands of your audience.
For instance, if you are choosing new charities, you can communicate this to your audience through your website. It is beneficial to introduce trending features on your website. For instance, video content, etc.
8. Social Media Marketing
The popularity of social media has gone up by leaps and bounds during the past year. Social media campaigns are necessary to spread awareness about your nonprofit. Social media channels are highly effective in building a rapport with your audience. Find out the social media channels your nonprofit audience uses and the timings they are active on and connect with them there.
9. Virtual Events
Events are important for fundraising by nonprofits. However, the pandemic has put a halt to all physical events. And, we have seen a rise in the number of virtual events being hosted during the past year.
However, if you want good participation with effective fundraising in your virtual events, you need some out-of-box thinking to engage your audience throughout the event. You can customize the event experience for your audience with the help of the data you have gathered.
10. Ramp up Technology
The year 2021 will be technology-driven! Several automation tools and innovative technologies are available for nonprofits to leverage.
Choose the best technologies and customize them according to your fundraising strategies. One of the most sought-after technologies by nonprofits is an event hosting platform.
With social distancing norms and lockdowns, events can only be hosted virtually. Event hosting platforms offer a myriad of features that make it easy to host virtual events.
iConnectX has some of the best features that are tailored to the needs of nonprofits. iConnectX has been in the field of philanthropy for several years and has all systems set up to meet the goals of nonprofits.