A Five Part Series:
2020 Fundraising Trends – Where are they now?
It is safe to say, that 2020 has been like no other year in terms of fundraising. Nonprofits have had to reexamine their processes and ways of making an ask. In part three of this series we will once again look at how our trends predictions for 2020 are faring in this new climate.
- Easier More Personalized Giving — Fundraising will become more personal and less transactional. But personalization is much more than adding the donor’s name to a direct mail piece or email. It is about understanding the donor’s interests and desire to make an impact, then providing them the opportunity to interact with your organization in that way. Increasing donor loyalty starts with engaging donors on a deeper level.
Tough times underscore the importance of knowing and understanding your donor’s wants and needs. Donors tend to be more comfortable giving to charities with which they already have a relationship and have a passion for what they do. Speak directly to your donors with a relevant message. A dentist sends birthday and appointment reminders to its customers. A car dealer notifies a customer about a new model, an upgrade to what was purchased before. These communication efforts provide additional loyalty and sales opportunities. And your donors expect that same type of communication.
- Artificial Intelligence (AI) — AI will change the way we contribute to our favorite charities, but it will also impact donor segmentation strategies. We will tell Alexa or Siri to donate, and it will be done – making giving easier than ever before. Additionally, sophisticated AI algorithms will begin to replace long-held recency/frequency/monetary (RFM) segmentation strategies.
According to the AmazonPay blog, “Alexa, make a donation to COVID-19 relief” helped raise over $1,000,000 for Feeding America’s COVID-19 Response. This technology made it easy for donors to find and donate to charitable organizations. Currently, 361 different charities are using this tactic.