2020 was the year of COVID-19, an unprecedented (in our lifetime, at least) pandemic that created fundamental economic uncertainty across a vast number of sectors in Canada. It was no different for non-profit organizations (NPOs) and the charitable sector.
The 2021 Giving Report by CanadaHelps reported total donations in 2020 fell to $10.2B from $11.3B in 2019. As many as one-fifth of Canadian charities—mainly small organizations—were forced to cancel or reduce programs and fundraising events due to the pandemic.
The pandemic forced businesses, NPOs, charities, and individuals to pivot in countless areas where change would not otherwise have happened. Many of these changes are here to stay, even in a post-COVID world, including how we give and raise money.
Online Donations: A fundraising trend in Canada that is here to stay
Pre-pandemic, making online donations was not the norm, and many nonprofit organizations relied on in-person fundraising events to engage donors and encourage giving.
Non-profits and charities often relied on in-person fundraising events for several key reasons:
- Personal Connection: Face-to-face interactions allow organizations to build stronger relationships with donors. Hearing stories directly from those impacted by the cause can elicit a stronger emotional response, encouraging more generous contributions.
- Engagement and Awareness: Events provide a platform to educate attendees about the organization's mission and the issues they address. This increased awareness can lead to long-term support beyond immediate donations.
- Networking Opportunities: In-person events bring together like-minded individuals, fostering a sense of community around the cause. Attendees can connect with others who share their passion, potentially leading to collaborative efforts or future fundraising initiatives.
- Immediate Feedback: Organizations can receive real-time reactions to their presentations and initiatives, allowing them to adjust their strategies accordingly.
- Enhanced Donor Experience: Events often include activities, entertainment, or exclusive experiences that add value for attendees, making them more likely to participate and contribute.
- Visibility and Publicity: High-profile events can attract media attention, increasing the organization's visibility and potentially attracting new supporters.
- Fundraising Efficiency: While events require upfront investment, they can yield significant returns through ticket sales, auctions, sponsorships, and donations collected during the event.
- Donor Recognition: Events provide an opportunity to publicly acknowledge and thank donors, which can strengthen relationships and encourage continued support.
- Community Building: Hosting events helps organizations establish a presence in the community, encouraging local engagement and volunteerism.
- Diverse Revenue Streams: In-person events can incorporate various fundraising methods—such as silent auctions, raffles, and merchandise sales—diversifying income sources.
- Tradition and Expectations: For some organizations, annual events become a staple that supporters look forward to, creating a tradition that reinforces donor commitment.
In summary, in-person fundraising events have always been a multifaceted approach that generated immediate funds, built relationships, increased awareness, and fostered a supportive community around the non-profit or charity's mission. With the onset of the pandemic forcing the rapid cancellation of in-person events, 7 in 10 nonprofits struggled with the quick move to online fundraising, and revenues were down for 55% of charities.
Fundraising platforms such as CanadaHelps, an all-in-one solution for online donations and fundraising, became invaluable to many small nonprofits because they could not afford to invest in their online fundraising technologies. CanadaHelps reported an increase of 95% in the number of Canadians giving through their fundraising tool in 2020, which benefited almost 30,000 Canadian charities. While total donations in 2020 fell, online donations grew by 86% from the previous year.
In the US, The Blackbaud Institute's 2020 Charitable Giving Report stated that 13% of revenue now comes from online sources—the highest percentage ever for online donations in the US. This reflects a necessary move by charities to pursue more diversified fundraising methods.
With the technology and fundraising platforms now in place to receive online donations and increase digital donor engagement, the proportion of online donations will only grow, even when the pandemic is behind us. Embracing digital transformation is key to survival among nonprofit organizations.
15 Must-Track Metrics & KPIs for Nonprofit Success
Why Many Donors May Prefer Online Fundraising Campaigns
Here is a summary of the reasons many donors prefer online fundraising campaigns.
1. Convenience and Accessibility
- Anytime, Anywhere Donations: Donors can contribute at their own convenience without the need to attend a physical event or adhere to specific timings.
- User-Friendly Platforms: Online donation systems are typically designed to be straightforward, making the process quick and hassle-free.
2. Ease of Use
- Simplified Process: Filling out online forms and processing payments electronically streamlines the donation process.
- Auto-Fill Features: Modern browsers and payment apps can auto-fill personal and payment information, reducing the effort required.
3. Anonymity and Privacy
- Option to Remain Anonymous: Donors can choose to hide their identity if they prefer, which is harder to do at in-person events.
- Secure Transactions: Reputable online platforms use encryption and other security measures to protect donor information.
4. Immediate Impact Visualization
- Real-Time Updates: Online campaigns often display progress bars or counters showing how close the campaign is to its goal.
- Instant Gratification: Donors can immediately see their contribution reflected in the campaign totals.
5. Lower Pressure Environment
- No Social Pressure: Donating online eliminates the potential discomfort of being solicited in person or feeling pressured to give a certain amount.
- Time to Decide: Donors can take their time to research and decide without on-the-spot expectations.
6. Transparency and Information Availability
- Detailed Information: Online platforms can provide extensive details about the organization, the specific use of funds, and the impact of donations.
- Access to Reports and Testimonials: Donors can read annual reports, watch videos, and view testimonials at their leisure.
7. Cost-Effectiveness
- More Funds to the Cause: Without the expenses associated with physical events (venue rental, catering, etc.), a larger portion of donations can go directly to the mission.
- Reduced Overhead for Donors: Donors save on costs such as travel, accommodation, or event tickets.
8. Enhanced Engagement Opportunities
- Interactive Content: Videos, infographics, and stories can make the donor feel more connected to the cause.
- Social Media Integration: Donors can engage with the organization through likes, shares, and comments, fostering a sense of community.
9. Easy Sharing and Amplification
- Viral Potential: Donors can effortlessly share the campaign with their network via social media, email, or messaging apps.
- Peer Influence: Seeing friends and family support a cause can motivate others to donate.
10. Flexible Payment Options
- Multiple Payment Methods: Credit/debit cards, PayPal, digital wallets, bank transfers, and even cryptocurrencies can be used.
- Recurring Donations: Donors can set up automatic, regular contributions if they wish.
11. Environmentally Friendly
- Reduced Carbon Footprint: No need for physical travel or printed materials, appealing to eco-conscious donors.
- Paperless Transactions: All communications and receipts are electronic.
12. Instant Receipts and Tax Documentation
- Immediate Confirmation: Donors receive instant acknowledgment of their contribution.
- Easy Record-Keeping: Digital receipts simplify tax preparation and personal accounting.
13. Global Reach
- Support from Anywhere: Donors are not limited by geographic boundaries and can support international causes.
- Diverse Donor Base: Organizations can tap into a wider audience, increasing potential funding.
14. Customized Giving Options
- Directed Donations: Donors can often choose to fund specific projects or initiatives within the organization.
- Matching Gifts and Challenges: Online platforms can facilitate matching donation programs, increasing the impact of each contribution.
15. Safety and Health Considerations
- Contactless Giving: Especially relevant during health crises like pandemics, donors can contribute without physical interaction.
- Reduced Risk: Avoids large gatherings, aligning with public health guidelines.
16. Real-Time Engagement and Feedback
- Live Updates: Organizations can provide immediate updates on campaign progress or how funds are being used.
- Donor Recognition: Online platforms can acknowledge donors in real-time, enhancing their giving experience.
17. Personalization
- Tailored Communication: Donors can receive personalized messages, updates, and impact stories relevant to their interests.
- Preference Settings: Donors can control how and when they are contacted in the future.
18. Empowerment and Control
- Informed Decisions: Access to comprehensive information empowers donors to make choices that align with their values.
- Feedback Mechanisms: Donors can often leave comments or reviews, engaging more deeply with the organization.
Online Fundraising Strategy & Digital Engagement
In-person charitable events will not become a thing of the past, but these events may become much smaller. Even with all restrictions on social gatherings being lifted, event organizers might still experience a perceived risk to in-person events for some time, forcing a more long-term rethink of future fundraising strategies, with a more significant focus on digital donor engagement. In short, it is strategic to diversify funding sources as in-person fundraisng may face episodic limitations in the future.
Social media platforms, email marketing, and online advertising should become as important as in-person events in collecting donations for fundraising campaigns. Reaching the right type of donors through the right marketing channel with the right marketing content is paramount to the success of online fundraising strategies.
Example: If your nonprofit organization is executing a campaign that raises funds to support gender-focused injustice, there's a good chance your target audience is a younger, active demographic on Instagram. You can then create content about your mission, specifically targeting that demographic on that platform to generate awareness and encourage your target audience to donate.
Tapping into Live Streaming
Live streaming is one type of content that has exploded in popularity on social media platforms like Facebook, Instagram and Tiktok. Typical live streams for a nonprofit would show day-to-day or behind-the-scenes operations, the work they do with donations, and how their work impacts the community. This type of content creates a deeper and more personal connection with potential donors, increasing engagement and donations and encouraging more people to volunteer their time.
The key to successful online engagement is targeting. You need to identify who your target audience is, what is important to them, and where they consume content online to increase engagement on the right platforms. Here is an approach to this quandary:
1. Select Which Audience to Engage
Importance of Targeting the Right Audience
- Efficiency in Resource Utilization: Non-profits often operate with limited resources. By identifying and focusing on a specific audience likely to support their cause, organizations can allocate their resources more efficiently, maximizing the impact of their campaigns.
- Higher Conversion Rates: Targeted campaigns yield higher engagement and donation rates because the messaging resonates more deeply with the audience's interests and values.
- Building Long-Term Relationships: Engaging the right audience fosters a community of supporters who are more likely to provide sustained support, volunteer, or advocate for the cause.
Strategies for Audience Selection
- Demographic Analysis: Examine factors like age, location, gender, and income levels to identify segments more inclined to support the cause.
- Psychographic Profiling: Understand potential supporters' beliefs, values, and lifestyles to tailor messaging that appeals to them.
- Past Donor Behavior: Analyze previous donors' characteristics to identify patterns and target similar profiles.
2. Understand What's Important to the Audience
Resonating with Audience Values
- Tailored Messaging: Craft messages that align with the audience's core values and concerns. This personalization makes the campaign more compelling and increases the likelihood of engagement.
- Emotional Connection: Stories and narratives highlighting donations' impact can evoke empathy and motivate action.
- Transparency and Trust: Providing clear information about how donations will be used builds trust, which is crucial for encouraging donations.
Addressing Audience Needs and Preferences
- Preferred Communication Styles: Some audiences may prefer concise, data-driven appeals, while others respond better to emotional storytelling.
- Acknowledgment and Recognition: Understanding if the audience values public recognition or prefers anonymity can influence how you approach them.
3. Know Where the Audience Consumes Content Online
Strategic Platform Selection
- Social Media Platforms: Different demographics favour different platforms (e.g., younger audiences on Instagram and TikTok, and professionals on LinkedIn). Choosing the right platform ensures your message reaches the intended audience.
- Email Marketing: Personalized email campaigns can be highly effective for audiences that prefer direct communication.
- Content Consumption Habits: Understanding whether the audience prefers video content, blog articles, podcasts, or infographics helps design content they are more likely to engage with.
Maximizing Reach and Engagement
- Influencer Partnerships: Collaborating with influencers who have sway over your target audience can amplify your message.
- Online Communities and Forums: Participating in niche online groups where your audience congregates can increase visibility and foster engagement.
4. Channeling the Synergy of Audience, Message, and Platform
Create Cohesive Campaigns
- Integrated Approach: Aligning the selected audience, tailored messaging, and appropriate platforms creates a cohesive campaign that reinforces the message across multiple touchpoints.
- Feedback Loops: Engaging with the audience on their preferred platforms allows for real-time feedback and interaction, strengthening relationships.
Measure and Optimize Campaigns
- Analytics and Metrics: Using platform-specific analytics helps understand engagement levels, allowing for adjustments to improve effectiveness.
- A/B Testing: Experimenting with different messages and content types on various platforms can reveal what resonates best with the audience.
Engaging in Donor Data
With the growth in online donations comes a greater abundance of donor data that can be used to segregate and better target potential donors. No longer limited to the information that donors provide, nonprofit organizations can use digital data to expand their reach and connect with more potential donors that match their ideal donor profile, developing relationships that will boost future donation and donor retention rates.
Donor management platforms like Keela and DonorPerfect track donor data, storing it in a centralized database to better segment donors for more targeted communications. There is an abundance of Customer Relationship Management (CRM) systems on the market for every organizational size and budget. It's probably best to look for one specifically built for nonprofit organizations. Still, if you do plan on investing resources into purchasing a CRM for your nonprofit, make sure, at a minimum, it has:
- List segmentation capabilities. Segmenting and sorting donor profiles into various lists based on attributes of your choosing (e.g. age, location, size of donation, last donation date etc.) means your communication with your donors will be more customized to their specific situation and demographics.
- Engagement measurement. A nonprofit's CRM should be able to track an individual's history with your organization (e.g. how often they have opened an email or clicked a link, which specific link they clicked, how many times they open an email etc). This can let the nonprofit know if that individual is more likely to donate or volunteer their time, and it can be used for further communication to prompt them to take affirmative action.
- Data analysis and Reporting functionalities. The software should be able to keep tabs on the effectiveness of different engagement methods with donors. Most donor platforms come with standard reports to analyze metrics such as donor retention, but you might want to be able to create your own reports, too.
Ultimately, the way donors give to nonprofit organizations has and will continue to change in light of the Coronavirus pandemic. If there's one thing the pandemic highlighted, it's the need for nonprofits to be able to adapt how they operate, particularly how they raise funds. Technological advancements must be embraced and integrated into organizations, and planning now for future uncertainties will make adaptation down the road much easier.
Did you know, Enkel can help your not-for-profit organization track fundraising efforts and improve your financial reporting? Contact us today and find out how!
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