Donors are giving less: here’s what you can do

As CBS News (source below) recently reported, fundraising for 2018 has slowed. Unfortunately, the new federal tax law that went into effect earlier this year was expected to depress donations to charities, and indeed that appears to be the way it is playing out so far this year.

As noted in the CBS report in an interview with Steve Taylor, Senior Vice President of United Way Worldwide; the U.S. operation is one of the largest charities in the country:

“‘We know that the main reason people donate to charities is not the tax incentive … We also know that the tax incentive allows people to give a little more than they would have given otherwise. People who would give a little less, and that adds up to tens of billions of dollars less donated to charity. ‘

“Taylor’s concerns were highlighted in a recent report published by the Fundraising Effectiveness Project (FEP), which showed that total revenue for nonprofits for the first three months of the year fell 2.4 percent compared to 2017. The total number of donors plummeted 6.3 percent year-on-year. While the donor retention rate, which measures the number of donors contributing to the same organization from one year to the next, fell 4.6 percent. And the number of new donors plummeted 12 percent. “

How to stay ahead of the game

Now that you know that donations are declining across the board, and perhaps you can see that declining donations is part of an industry-wide pattern, it is essential to be aware of what is happening and take action. The following are some of the things I would do if I were still the CEO of a nonprofit organization so as not to get caught up in a situation where my team and I are not prepared for a possible decrease in revenue.

• Mobile, mobile, mobile: Incredibly, one of the quickest and easiest things nonprofits can do has not been done by many. What are you waiting for right now? It is vital that if your charity does not have a mobile website that it is one of the first things you do. The mobile surpasses the use of desktop for search. If you are not mobile ready then you are missing the opportunity for people to donate on your website if they are using your cell phone or tablet.
• Request support from your donors: Any good fundraiser knows that a donor supports an organization, because they were asked. And if asked often, many will give, often. Be strategic and smart about how you ask your donors for financial support, but whatever you do, ask them. If your fundraising dollars have decreased, create a special campaign and communicate what is in danger of being cut (i.e. programs) due to insufficient income.
• Be good at telling your story: You have to tell your story well. Period. If you don’t know how to describe it properly, then you have to learn it. Remember, the first part of the process of getting a donor to donate is capturing their excitement. When they make the rational decision to support your cause, it is just a justification for how their heart feels. Also, when you tell your story, be sure to offer prospects social proof, which is stories from other donors who have done what you ask prospects of them. People are more willing to give if they see others supporting their nonprofit organization.
• Performance measure: Get in the habit of splitting and splitting your fundraising reports so that you can manage the fundraiser properly and get everyone on your team used to the conversation. If you have weekly meetings, make sure everyone, including junior clerks and receptionists, understands where you are regarding fundraising. This will foster a culture where everyone realizes that they have to contribute to help and support fundraisers. Meet with your fundraising team at least once a week, if not a few times a week, and be transparent with your fundraising performance.
• Keep it simple: Make your donation page and the donation forms on every guarantee piece you use, including social media, are simple. Suggest giving amounts because it will increase the likelihood that people will make a higher donation. For example, start your donation page with $ 25 instead of not having a set contribution amount or a lower donation amount. Make donating easy and be sure to redirect people to your donation, often. Don’t be afraid to experiment by asking for a specific suggested amount, like $ 10 a month for a year. That’s $ 120, which is less than the cost of a monthly pizza.

At this point, we don’t know how 2018 and donations to nonprofits will turn out in the years to come, but there is a definite reason, now based on evidence, that fundraising revenue will decline. That means there will be an exponential increase in competition for those dollars. You want to get creative and think outside the box. Make sure the topic of fundraising is something that is discussed as the first order of business in most, if not all meetings, which will drive home the point that this is the lifeblood of your organization. to execute your mission.

Source: CBS News

Source: Fundraising Effectiveness Project