For the first couple of days after the U.S. shut down in March of 2020, I closed my computer, baked cookies, made videos with my kids and assumed that this business we’d been building would fall to the wayside. I knew that the economy was heading in the wrong direction and nonprofits would have little money to spare.
But everything I thought I knew was wrong.
In week two of the shutdown, and until this very moment, we’ve had little chance to breathe as “pivot” has been the name of the game, investment in digital has been the key strategy, and we have been the players moving and shifting across the board.
According to Blackbaud, across all nonprofit subsectors, there has been a 36% increase in online giving year over year from the three months ending in June 2020 compared to June 2019. #GivingTuesdayNow was responsible for much of this momentum.
Many organizations were not prepared for this significant shift to online giving. And now we sit in a world where we need to live with COVID-19 and develop fundraising strategies based on this new normal.
Our own clients have experienced varying levels of growth or decline in Q2. Some have seen their fundraising skyrocket, others have maintained levels year-over-year while a couple are seeing as much as a 40% decline. With each organization, we’re working with them to create new opportunities and optimized online strategies, but how will donors react?
Both LendingTree and Fidelity Charitable have recently conducted surveys to determine charitable giving behavior amidst COVID-19. According to LendingTree’s survey, more than one-third (37%) of Americans have changed their charitable giving behavior in recent months. Interestingly enough, Americans who have been laid off or furloughed are among most likely to donate (62%).
And social media continues to drive awareness along the donor journey. LendingTree confirmed that social media spurs many young Americans to donate. Roughly 52% of Gen Z and 45% of millennials have donated to a cause this year after hearing about it on social media.
Fidelity Charitable’s survey offered a ray of hope. 43% of donors plan to continue supporting their usual charities even amid the pandemic, while 25% of donors say they will give to different organizations as a result of the pandemic, shifting to those orgs responding to COVID-19.
The most concerning response is related to an ongoing problem within the nonprofit sector. One-third of respondents said they don’t have enough information to understand where they can direct their support effectively.
Given this information and looking at your organization’s data, what should you focus on in the coming year? We’ve distilled it down to five things:
Build relationships: Help your donors truly understand the impact you are making for those you serve. Share real stories of real people who benefit from your organization, and make sure donors know they’re appreciated. In a recession, it is critically important to build relationships with your donors to ensure incremental growth when the recession ends.
Focus on internal alignment: Now is the time to make sure your internal team is in lock-step. Every campaign, social media post, website update, email, etc. should tie into the larger picture.
Invest in online excellence: This doesn’t always mean spending money. Optimize high-traffic web pages, maximize Google Ad Grant, test your emails, consider your technology landscape and ensure that it supports virtual giving at its core, and stop spending money on ads unless you’re producing a positive return.
Build or grow a sustainer program: With 43% of donors planning to continue their support of current charities, there is an opportunity to turn those one-time donors into monthly sustainers.
Set your own benchmarks: Familiarity with your own data, rather than reliance on industry benchmarks, will help you better project income and manage budget expectations. Become intimately familiar with your opportunities for optimization. Many small changes can lead to big results.
In the midst of a global pandemic, a recession, civil unrest and a divisive, emotionally-charged election season, this is a fundraising season like no other. But your mission is no less important today than it was in February. Build relationships, communicate with your donors, optimize your spend and you’ll be in a strong position to remain stable and reap future rewards.