What to Do About Declining Donations?
Recent headlines for nonprofit fundraising present a challenging picture. According to Giving USA donations dropped 3.4% from 2021 or 10.5% when adjusting for inflation. The Fundraising Effective Project from AFP reported that donor participation fell by 10% in 2022. This is the second consecutive year that fewer existing donors contributed. The FEP also found that 90% of this decrease is from donors making gifts under $500, and gifts from new donors dropped by 18% from 2021.
As we prepare for the critical fourth quarter of 2023, what can we do with these declines in mind? With small dollar donors and new donors cutting back, how do we plan for the fall and holiday season events that target these groups?
Strategies for Increasing Donor Participation
The biggest shock from 2022 donation data was the fourth-quarter drop. Donations fell 1.7% during a period that’s traditionally the highest of the year. This is largely due to the drop in new donors. There was an 8.7% decrease in new, first-time donors, and a 21.8% decline in new donors from 2021 who failed to give again.
How do you address this decline?
Data-Driven Personalization: Leverage the insights provided by Julep or another CRM to tailor communications based on donors' preferences, past giving behavior, and interests. Personalized outreach can significantly impact donor engagement and increase the likelihood of larger gifts.
Year-Round Cultivation: Instead of focusing only on year-end campaigns, start cultivating those donors right now. Implement year-round cultivation efforts to keep donors engaged and informed about the organization's impact. Regular updates and personalized messages can strengthen donor relationships and encourage ongoing support.
Matching Gift Programs: Encourage donors to participate in matching gift programs, where their contributions are matched by corporate sponsors or major donors. This incentive can inspire donors to give more generously, knowing their gift will have an even greater impact.
Enhancing Donor Retention Rates
Express Gratitude: A simple yet often overlooked strategy is expressing sincere gratitude to donors. Julep can facilitate automated thank-you emails and personalized acknowledgment letters, ensuring donors feel appreciated for their contributions.
Impact Reporting: Donors want to see the tangible results of their contributions. Provide regular impact reports that highlight the outcomes of the organization's projects and initiatives. Demonstrating the real-world impact of donations can instill a sense of fulfillment and loyalty among donors.
Donor Feedback Mechanism: Create opportunities for donors to provide feedback on their giving experience and the impact of the organization's work. This feedback can help identify areas for improvement and strengthen donor relationships.
Get the Technology You Need: The Julep CRM Advantage
In these challenging times, the right tools and technology can make a significant difference in a nonprofit's fundraising success. Julep, a cutting-edge platform designed specifically for nonprofit organizations, offers a range of features to help nonprofits better engage donors and enhance fundraising efforts.
The platform's donor management capabilities empower nonprofits to maintain comprehensive donor profiles, track interactions, and segment donors based on their preferences and giving history. This valuable data enables organizations to personalize their communication with donors, fostering stronger connections and encouraging continued support.
In 2023, nonprofits face unique challenges in fundraising, but they also have access to valuable data and technology that can transform their strategies. By harnessing the power of a CRM like Julep and implementing the suggested strategies, nonprofits can increase gifts from donors and improve donor retention rates. As the landscape of giving continues to evolve, staying informed and adaptable will be essential for nonprofit organizations to make a lasting impact on the causes they serve.