Fundraising Trends 2021: Latest Trends for Nonprofits
Posted on January 31, 2021
As 2020 comes to an end and we see 2021 on the horizon, it is time for nonprofits to gear up and plan their fundraising for the coming year. 2020 has taught us the important lesson of being “agile”, in other words, having the ability to adapt to the circumstances. Nonprofits cannot afford to ignore the importance of strategizing according to external circumstances.
Fundraising for 2021 can be planned based on 3 factors:
Successful fundraising strategies adopted in 2020: Fundraising strategies have undergone major changes in 2020. Many nonprofits have been quick to respond and have come up with innovative and successful solutions. Fundraising trends during COVID can be a good starting point for planning for nonprofits.
Fundraising trends for 2021: The emerging fundraising trends for nonprofits will evolve from top nonprofit trends of 2020. These will give the foundation for nonprofits to innovate and build on for the coming year.
Back up strategies to cope with uncertainties: 2020 shocked the entire world with something totally unprecedented. We have now come to realize that no amount of planning can secure us from an unpredictable future. Having an “agile” approach is no longer an option but is mandatory. In other words, fundraising for non-profits must ensure that they are able to adapt to sudden changes at any stage.
With the pandemic dominating 2020, the world has shifted from offline to online! What this means for nonprofits is that fundraising events have become virtual, donations have become online, and connecting with the audience is now through digital media.
Let us now look at the impact of digital fundraising trends on nonprofits
Virtual events have replaced in-person events in 2020. Needless to say, nonprofits need to ensure that they are fully equipped to host and manage virtual events. What this also means is that they will need to think of innovative ideas to offer their audience a delightful experience. This is more challenging in a digital space when compared to in-person events.
However, virtual events drastically reduce the expenses involved in organizing the event by cutting down on costs of the venue, travel, and accommodation expenses of attendees, etc.
Leveraging Social Media
Social media has been a strong force even before 2020. However, in 2020 with most people being “locked down” the number of users has surged. 3.81 billion active social media users have been recorded in 2020. (Source: Backlinko ) A whopping 63% of the world’s population is active on social media when looking at an eligible audience aged 13+ years. (Source: Backlinko )
Nonprofits need to leverage the power of social media to connect to their audience. All platforms Facebook, Twitter, Instagram, etc. hold potential. Social media campaigns with regular posting is a must.
It is also important to offer your donors to donate directly through social media platforms.
Gen Z donors
It is interesting to observe a rise in the number of Gen Z donors in 2020. Gen Z is people who are born in 1996 and later. The marketing strategies for connecting to this segment of the audience will have to be different. A majority of these donors will be found on Instagram and social media marketing strategies will need to the tailored to them.
Many people tend to believe that email marketing is dead. But contrary to this belief, email marketing has become more powerful than ever in recent years. 76% of marketers say that email is the single most effective way to drive registrations. (Source: Markletic)
This is mainly because of the changing audience behavior. Personalization is the key and email marketing is undoubtedly the best way to offer it. Email marketing helps establish a one-to-one relation with the audience. Email marketing is undoubtedly one of the most important fundraising trends to focus on for your charity in 2021.
To stand out amid the chaos on social media, video marketing is an effective tool. Videos with quality content are what will help nonprofits connect with their audience. Cisco predicts that videos will constitute 82% of online traffic in 2021. Videos are ideally suited for nonprofits because they can convey emotional and personal appeals effectively.
Live streaming is another powerful marketing strategy. Data reveals that over 150 million people watch live stream videos monthly.
Online giving has become popular due to the pandemic. Nonprofits need to focus on offering a recurring online giving option to their audience. Recurring giving provides the donors a better experience because they feel connected to the nonprofit and that they are making a difference. And, the nonprofit can create a predictable revenue stream that is immune to external factors to an extent.
Nonprofits could think of looking at traditional fundraising techniques such as donation forms, peer-to-peer fundraising, and crowdfunding, etc. to drive recurring giving.
Nonprofits and for-profit companies working together
2020 has shown an emerging trend of partnerships between for-profits and charities to work towards a common goal. In 2021 this trend is expected to become more predominant as organizations look to add purpose to their business model. Nonprofits gain by borrowing from for-profits because it promotes a sustainable and scalable growth model.
One of the most important online fundraising trends is the use of fundraising platforms. These platforms simplify the process of organizing fundraising events. 89% of businesses using event technology save approximately 200 hours per year. 20% of businesses see 360 or more saved per year. (Source: Bizzabo 2019)
There are different types of platforms available for hosting such events. These platforms offer different features such as event registration, hosting, marketing, analytics, and many more. These platforms help event hosts plan the event and measure the ROI of the event using different metrics.
One of the best event management platforms available for hosting fundraising events is iConnectX. This is a platform that provides the event managers end-to-end event management features. Event hosts can easily connect with their audience and organize events that function without a hitch and delight the audience. iConnectX is a platform that is a well-known name in the world of philanthropy. It has several features that are tailored to the needs of non-profits.
The good news we hear in the last few months of 2020 is the vaccine is now available. However, it will take time for things to come back to normalcy. Besides the concept of “normal” is likely to change to a “new normal.” Probably in the new normal, there will be a mix of virtual and in-person interactions. However, one certainty is that digital interactions are here to stay. And, in such a scenario technology will have a vital role to play.