What keeps you up at night?
What keeps you up at night?
It’s a question we often ask the organizations with whom we work. The answer helps us zero in on “where it hurts,” and always points us to the most critical objectives, particularly as we start a new relationship.
Applying that question to the current fundraising environment might well uncover a range of sleep-depriving trends and circumstances:
- According to the most recent report from Giving USA, overall giving is down by 2.1% in 2023 when adjusted for inflation and individual giving is down 2.4%.
- Fewer donors are giving. According to the most recent Fundraising Effectiveness Project report, donor counts declined 3.4% year-over-year and have been on a continual decline since the 2020 pandemic year.
- Many non-profits are losing sleep over the intense pressure created by donor attention on the 2024 elections and the potential that dollars are moving out of the charitable/nonprofit sector and into the political sphere.
Our Perspective:
In fundraising, there are things you can control and things you cannot. Economic turbulence happens. Elections happen. Further, even after the election this November, no one can definitively predict what the impact will be on donors’ moods and their feelings of economic security or insecurity.
The overall fundraising trends in dollars and donors are worrisome, but it’s critical not to over-react or over-compensate, thereby creating even bigger challenges for your fundraising efforts that could have a ripple-effect on your file health into the next year and beyond.
So, what can you control? Here are a few strategic dos and don’ts to help you navigate these challenging times:
DON’T look at flat or declining revenue and impulsively cut back on new donor acquisition and the new donor pipeline. The far-reaching consequences for donor file health and value will be substantial.
DO let the data lead you to smart, data-driven decisions as to where you can and should maintain your investment in a robust new donor pipeline and a growing donor file value. For example, that could mean putting greater emphasis on re-engaging lapsed donors, tapping into warm leads like signature signers and other action-takers by first modeling them for direct mail, and maximizing your spend on lower volumes of top-tier-only prospects.
DON’T be either paralyzed into inaction by the election or unaware of its potential impact on donor giving between now and November 5.
DO stay in front of your most committed donors, with a particular focus on at-risk donors—LYBUNT (Last Year But Unfortunately Not This) donors and others at stages in their donor experience that may cause them to be lost for good.
DO focus on multi-channel donors (always the most valuable) and ensure you have a smart, engaging, and retention-focused strategy in place for an omni-channel donor journey between now and November—and especially at year end.
This leads us to our final urging: Prioritize retention. According to the Fundraising Effectiveness Project, new retained, repeat retained, and recaptured donor counts were all down in 2023. So come November 5, don’t be afraid to be aggressive and leave nothing on the table.
- In fact, here are a few recommendations for a better night’s sleep between now and December 31:
- Prioritize coordinated cross-channel messaging.
- Create a messaging arc in which you and your donors are preparing for the “worst” and hoping for the “best.”
- Think ahead so that you have approved post-election messaging for next steps depending on who is elected.
- Prepare for post-election momentum as donors return to their normal lives and regular giving habits.
We’re all going to be on quite a ride for the next few months. Try to get some sleep.
