Fundraising or how nonprofits raise money to spend on their causes is evolving as we enter a new decade. Fundraisers and philanthropists should be aware of and take note of the following five trends occurring. The trends include a need for flexible work environments, political influence, global impact, and financial transparency (how money is spent), integrated giving, and the giving experience.
The Flexible Work Environment
Numerous studies into nonprofits have revealed that many nonprofit organizations suffer from a high turnover rate of fundraising employees. The most desired benefit outweighing even salary is a flexible work environment. Nonprofits should, therefore, take note and try to offer as much flexibility as they can to their employees. High-turn over rates can not only result in the loss of valuable employees that bring in money and make an impact, but they can also cost the organization hundreds of thousands of dollars per lost employee.
The Political Environment
Whether you are involved in politics or not, the political environment and debate can help nonprofits attract additional donors and attention. This is because politicians will often propose public policies that may impact areas that nonprofits are involved in, such as the environment, healthcare, and education. Smart nonprofits should try and leverage the additional attention brought to issues that they may be involved with to attract more donors and money for their causes.
The concept of financial transparency is extremely important for charities. Donors want to be able to see when, where, and how their money is spent. Financial transparency helps ensure that charities are acting responsibly and not skimming donations and putting that money into their pockets. Blockchain for good and donor-advised funds are two financial instruments that are appearing to improve financial transparency in the nonprofit sector. Expect them to grow or be demanded by certain donors.
Integrated Giving Means Using Technology
As we head into an ever greater connected world, nonprofits must be able to use technology to establish a footprint into the connected world to reach out to prospective donors. Nonprofits should try to establish themselves on mediums such as Amazon’s Alexa, smartphones, and other apps that are rapidly growing in popularity, such as Uber. The concept of integrated giving and technology is especially important as there seems to be a trend of small to medium donors shrinking. Technology can help reach out to and grab such donors back.
The concept of giving experiences refers to the overall experience and interaction involved in philanthropy. Many donors now want a more genuine and first-hand connection with the charities they are supporting. Nonprofits should take note and plan accordingly to meet the need for more genuine giving experiences and more direct contact. Interestingly, technology such as webcams and even virtual reality and augmented reality can help create a more authentic experience.