Before we dive into fundamental fundraising tactics for 2023, let’s take a moment to reflect on the state of nonprofit fundraising in the United States. According to the Giving USA Foundation’s annual report, charitable giving in the US reached a record-breaking $471.44 billion, with individual giving accounting for the largest portion of donations. This represents a significant increase from the $410.02 billion donated back in 2019, indicating a strong and growing interest in supporting nonprofit causes.
This surge in charitable giving has also led to an increase in nonprofit fundraising jobs. The Bureau of Labor Statistics projects a 10% growth in the employment of fundraising managers and development directors between 2020 and 2030, which is faster than the average for all occupations. This is a testament to the importance of fundraising in the nonprofit sector and the increasing demand for skilled fundraising professionals.
With this in mind, let’s explore some of the latest fundraising tactics and approaches that can help your organization continue to grow and succeed in 2023. Continually improving your fundraising strategies is a crucial component for any organization to thrive and achieve its goals. With the advent of new technologies and databases, fundraising has become more accessible and efficient than ever before.
Peer-to-peer fundraising is becoming an increasingly popular fundraising tactic, and for a good reason. With peer-to-peer fundraising, supporters can create their fundraising pages and raise funds on behalf of your organization. This method of fundraising is particularly effective for nonprofits that have a large base of supporters, volunteers, and donors. You can leverage social media and other online platforms to increase awareness about your organization’s peer-to-peer fundraising campaign.
Crowdfunding is another popular fundraising tactic that has gained significant traction in recent years. Crowdfunding is a great way to raise funds for a specific project or cause. You can leverage crowdfunding platforms like Kickstarter, Indiegogo, and GoFundMe to create your fundraising campaign. The key to success in crowdfunding is to have a compelling story and a clear call-to-action that resonates with your target audience.
SMS fundraising is a relatively new fundraising tactic that involves sending SMS messages to your supporters to solicit donations. SMS fundraising can be an effective way to reach your supporters, particularly if they are already on your mobile database. You can use SMS fundraising to promote your peer-to-peer fundraising campaign, crowdfunding campaign, or any other fundraising initiative you have planned.
Leverage and Expand Major Donor Giving
Securing a major donor is a significant accomplishment for any nonprofit, but it’s just the first step in building a lasting relationship that can result in larger donations over time. To get a major donor to give more money, it’s important to focus on building trust and demonstrating the impact of their previous donations. One effective approach is to provide regular updates on the impact of their gift and share stories of the people or communities that have benefited from their support. Additionally, it’s important to involve the donor in the decision-making process and seek their input on how their donations can have the greatest impact. Finally, personalizing the relationship and showing genuine appreciation for their support can help strengthen the connection and encourage larger donations in the future.
Improve Your Grant Portfolio
Finding new grants and maximizing the funding potential of existing grants are essential to the success of any nonprofit organization. To begin, conduct thorough research on available grants and eligibility criteria, using online resources and professional networks to identify potential funders. The Foundation Center has wonderful resources for organizations to find new sources. Once a list of potential grants is compiled, prioritize those that align with your mission and strategic priorities. It’s important to carefully review the grant requirements and ensure your organization has the capacity to meet them. To increase the funding potential of existing grants, focus on building strong relationships with your grantmakers and providing regular updates on the progress and impact of your programs. Then, continually evaluate and assess your grant-seeking strategies to ensure they are effective and making the most of available funding opportunities.
Improve Your Donor Management Software:
Donor management software is a critical tool for any organization that wants to manage its donors effectively. Donor management software can help you keep track of your donors’ contact information, donation history, and other relevant data. With donor management software, you can segment your donors based on various criteria, including their giving history, interests, and other factors. This can help you tailor your fundraising appeals to different segments of your donor base.
Donor Prospecting Tools:
Donor prospecting tools are becoming increasingly sophisticated, and they can be a valuable resource for organizations looking to expand their donor base. These tools can help you identify potential donors based on various criteria, including their giving history, interests, and demographics. With donor prospecting tools, you can develop targeted fundraising appeals that are more likely to resonate with your target audience.
Virtual Fundraising Events:
Virtual fundraising events have become more common since the COVID-19 pandemic, and they are likely to remain popular in 2023. Virtual events can include webinars, virtual auctions, and virtual galas. These events can be an effective way to engage with your donors, raise awareness about your organization, and raise funds for your cause.
Train Your Fundraising Staff and Level Them Up
There are many free online resources available to nonprofit development professionals and those interested in learning more about grant writing. One great resource is the Foundation Center, which offers a range of free courses and webinars on topics such as fundraising, grant writing, and nonprofit management. Other organizations such as NonprofitReady and GrantSpace also offer free online classes and resources for nonprofit professionals. In terms of books, “Advanced Fundraising Techniques for Nonprofit Organizations” by Paula J. Benevigna is a highly recommended resource for those looking to deepen their understanding of fundraising strategies and best practices. Additionally, there are many valuable blogs and podcasts, such as the Nonprofit Hub blog and the Nonprofit Ally podcast, that provide insights and tips for nonprofit professionals. These resources are all great ways for development professionals to continue learning and growing in their roles.
Foundation Center: https://grantspace.org/training/
“Advanced Fundraising Techniques for Nonprofit Organizations” by Paula J. Benevigna: https://amzn.to/3ECfijH
Nonprofit Hub blog: https://nonprofithub.org/
Nonprofit Ally podcast: https://www.nonprofitally.com/podcast/
In summation, peer-to-peer fundraising, crowdfunding, SMS fundraising, leveraging your donor management software, increasing grants and major donors, leveraging donor prospecting tools, staff training and hosting virtual fundraising events are just a few of the many strategies and tools available to help your organization reach its fundraising goals in 2023. By embracing these new fundraising technologies, you can expand your reach, engage your supporters, and achieve your fundraising goals more effectively than ever before.