Despite the challenges facing nonprofit organizations, the learnings from the Giving USA Report 2023 illuminate practical donor engagement insights that nonprofits can adopt to build deeper relationships with individual donors. The report revealed that giving dropped by 3.5% (without accounting for inflation). This is a significant decline, especially considering the S&P 500 dropped by nearly 20% in the same timeframe.
By focusing on building personalized relationships, leveraging technology for online giving, and being open to new approaches, responsive nonprofits can adapt to the changing landscape and continue to make a positive impact.
Top 3 Practical Donor Engagement Insights
The nonprofit sector faces challenges, such as declining individual giving and increasing reliance on foundation giving. Responsive nonprofits are adopting methodologies and technology to help them build deeper relationships with donors.
- Build Personalized Donor Relationships: build authentic and personalized relationships with donors. Major giving is increasing while low and mid-level donors are leaving organizations due to a lack of appreciation and connection. Nonprofits can close the gap by better understanding donor motivation and utilizing various communication channels, such as text, mobile devices, phone, email, or mail, to reach donors in the manner most appropriate to them.
- Leverage Technology and Online Giving: Online giving has been on the rise, particularly with Generation Z and millennials. Nonprofits should take advantage of mobile and online giving opportunities to engage with donors more effectively.
- Be Willing to Try New Approaches and Learn from Failures: Abigail Tobia from Verland encouraged organizations to start small, experiment with new strategies, and embrace the concept of “failing forward.” Nonprofits should also consider different budget approaches, similar to for-profit companies, to allow for more flexibility and adaptation to changing circumstances.
The nonprofit sector faces challenges, such as declining individual giving and increasing reliance on foundation giving. However, by focusing on building personalized relationships, listening more to donors to understand donor motivation, leveraging technology for online giving, and being open to new approaches, nonprofits can adapt to the changing landscape and continue to make a positive impact. Virtuous is the only responsive fundraising platform dedicated to supporting nonprofits in their efforts to grow global generosity and cultivate meaningful relationships with donors.
Stay In the Know With Responsive Nonprofit Leaders
Special thanks to The Beacon Podcast hosted by Lighthouse Counsel for sharing this conversation featuring Erik Tomalis, Director of Business Development at Virtuous, for an insightful conversation about the practical donor engagement insights from the Giving USA 2023 report.
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