Page 5 - Nonprofit Fundraising Guide

3 3.) SHIFTING DONOR ENGAGEMENT STRATEGIES 4

DIVERSIFYING DONOR BASES

A trend in 2024 is the shift from major donor reliance to focusing
on mid-level and monthly donors. Dana Snyder of the “Missions to
Movements” podcast emphasizes the importance of diversifying donor
engagement. Organizations should enhance their efforts to attract and
retain monthly donors, especially as younger generations increasingly
prefer consistent, smaller contributions.

2.) TECHNOLOGICAL ADVANCEMENTS IN FUNDRAISING RELATIONSHIP-CENTRIC FUNDRAISING

ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING Relationship-centric fundraising is gaining prominence as nonprofits
prioritize genuine connections with donors. Sabrina Walker-Hernandez
Artificial intelligence (AI) and machine learning are increasingly of Supporting World Hope advocates for focusing on relationships rather
transforming the nonprofit sector. AI is used for donor segmentation, than transactions. By fostering authentic engagement, nonprofits can
predictive modeling, and enhancing fundraising strategies, aiming to strengthen donor loyalty and improve fundraising success.
optimize donor engagement and reduce costs. However, organizations
must balance AI’s efficiencies with the need for personal interaction to INNOVATION IN DONOR ENGAGEMENT
avoid alienating donors.
Retaining donors is crucial for long-term success. Lynne Wester of
AUTOMATION TOOLS The Donor Relations Group highlights the importance of continuous

1.) ECONOMIC CHALLENGES AND OPPORTUNITIES Automation tools are streamlining operations, from online donations to engagement through meaningful communication and appreciation.
Effective donor retention involves providing personalized updates on
event planning and data analysis. These tools save time and resources the impact of contributions and maintaining ongoing engagement.
IMPACT OF INFLATION AND GROWING COMPETITION but require human oversight to ensure accuracy and maintain the
FUNDRAISING In recent years, inflation has significantly impacted charitable giving. personal touch in donor communications. PREPARING FOR WEALTH TRANSFERENCE
TRENDS In 2022, Americans donated $319.04 billion, a decrease from previous Generative AI is advancing in content creation, data analysis, and donor Over the next 20 to 30 years, America will see the largest level of wealth
GENERATIVE AI
years. Although individual donors contributed an estimated $374.40
transference it has ever seen. It is expected that some $11.8 trillion
billion in 2023—representing 67% of the $557.16 billion total giving—
will find its way to nonprofit organizations as the silent generation and
this reflects only a 1.9% increase from 2022. However, when adjusted
for inflation, total giving actually declined by 2.1%. Major donor
individual donor preferences, enhancing engagement and effectiveness.
nonprofit organizations to open up communication with both their older
contributions decreased by 10%, highlighting the need for nonprofits to segmentation. This technology helps tailor fundraising appeals to the baby boomers pass on their amassed wealth. It is important for
However, data security and alignment with organizational needs remain
donors, who will be transferring this wealth and their middle-aged and
diversify their donor bases and adapt their fundraising strategies. critical considerations. younger donors, who will be inheriting this wealth. This will come down
A s the nonprofit sector continues to evolve, staying informed about Despite these challenges, researchers project a rebound, with giving to developing and strengthening relationships. With the top unified
emerging trends is crucial for adapting strategies and optimizing expected to increase by 4.2% in 2024 and 3.9% in 2025. This anticipated credit limit (the amount that a taxpayer can pass on to their heirs)
fundraising efforts. This article provides a comprehensive overview of growth presents an opportunity for nonprofits to refine their approaches decreasing in 2026 from $14 million to $7 million (barring a change
the key trends shaping fundraising in 2024 and beyond. and leverage the expected rise in charitable contributions. in the tax code), including nonprofits in estate planning discussions is
expected to increase.
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