Page 6 - Nonprofit Fundraising Guide

FUNDRAISING TRENDS - CONTINUED
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4.) SOCIAL MEDIA AND GENERATIONAL SHIFTS
EMAIL MARKETING TRENDS
Email marketing continues to be a significant tool for nonprofits, though
its effectiveness is fluctuating. In 2023, nonprofits raised $76 for every
1,000 emails sent, a 15.56% decrease from $90 in 2022. Response rates
to fundraising emails declined by 10% for advocacy emails and 16% for
fundraising emails. Despite these declines, the number of subscribers
on nonprofit email lists increased by 7%. On average, nonprofits send
59 emails per subscriber annually, with 27 being fundraising appeals.
Email communications sent regularly are most likely to encourage repeat
donations, with 48% of donors reporting regular email communications
keep them engaged. Nonprofits should also consider that 55% of U.S.
donors prefer to be thanked via email.
SOCIAL MEDIA UTILIZATION
Social media remains a critical platform for fundraising. Approximately
99% of nonprofits use Facebook, 96% use Instagram, and 88% use
Twitter/X. Nonprofits post frequently across these platforms, with
Facebook seeing an average of 5.95 posts per week and Instagram 4.9
posts. Content that evokes a joyful emotional response tends to be the
most widely shared. Social media is also a significant driver of online
donations, with 32% of donors reporting that social media inspired their
contributions. Nonprofits should be aware of the varied effectiveness of
different platforms; 23% of marketers see Instagram as the top platform
for growth, followed by TikTok (19%), Facebook (18%), and others.
5.) GENERATIONAL DYNAMICS AND DONOR PREFERENCES
MILLENNIAL DONORS
Millennial donors prioritize making a difference and actively track the
results of their donations, with two-thirds tracking outcomes compared
to one-third of baby boomers. Mid-level donors are particularly loyal,
with 52% giving to the same cause for over a decade. Additionally, 31%
have made a bequest, and 23% are in the process of doing so.
MAJOR AND MID-LEVEL DONORS
Major donors remain impactful, contributing approximately 88% of
total dollars raised despite constituting just 12% of donors. Location
and income are also significant factors in giving, with about 80% of
donors supporting local organizations and households with incomes of
$250,000 or higher being more likely to donate.
OVERALL GIVING TRENDS
Educational institutions, foundations, and public-society organizations
have seen the highest increases in giving. However, giving by individuals
has decreased by 17.2%. Response rates to peer-to-peer campaigns
and crowdfunding campaigns also reveal a trend toward new donor
engagement.
As we wrap up 2024 and move into 2025, nonprofits face both
challenges and opportunities. By adapting to economic shifts, leveraging
technological advancements, diversifying donor engagement strategies,
utilizing social media effectively, and understanding generational
dynamics, organizations can enhance their fundraising efforts and
achieve greater success.
KEN CERINI, CPA, CFP, FABFA
MANAGING PARTNER