8 Charity Fundraising Trends in 2021

Since 2010, fundraising trends have changed rapidly. Many changes have taken place due to the rise of technology and the growing impact of the internet. Other changes are directly related to cultural and societal shifts.

The non-profit/donation industry is constantly evolving. Major non-profits are streaming live from their offices and adding GIFs to their Instagram stories, landlines are gone, donors give with their phones via Android Pay while riding the train to work, and organizations are being asked for proof of their impact through Facebook Messenger. And the speed at which this is happening is astonishing.

It seems that not all non-profits are ready for these rapid and unpredictable changes. In 2021 it is important that you have a clear fundraising plan and are aware of the possibilities. By thinking ahead and staying on top of the surrounding trends, your non-profit will be ready for 2021.

The 8 Key Fundraising Trends of 2021 Impacting Nonprofits:

Fundraising Trends #1: Watch the Generation Z

The world has been talking about millennials for years. While non-profits should continue to hear about Millennials, now is the time to start exploring Generation Z as they are the bulk of current donors.

It concerns people born after 1996, they make up an estimated 27 percent of the population.

They are also sometimes referred to as ‘’iGen’’, a term that refers to the digitally proficient group of this generation. Gen Z accounts for a quarter of the population and will account for 40% of all consumers by 2020. Understanding this group will be critical to succeeding in 2021 and the decade ahead.

The 2017 Global Trends in Giving Report reported that Gen Z members are interested in giving to many charities. The top-scoring categories include youth, animals, and humanitarian aid. Gen Z members are committed to a good cause and willing to help as volunteers.

Despite the majority of Gen Z not yet entering the labour market, they are highly motivated to do ‘good’ and give back. Be authentic. However, Gen Z’s digitally proficient group can quickly determine whether an organization is genuine.

What can you do?

Be short and sweet: This generation is growing up with access to an incredibly large amount of information, much of it irrelevant to their lives. To survive, they learn how to quickly filter and sort information. They are also adept at blocking marketing noises. To gain their attention, give them an engaging and direct experience with short and powerful messages.

Mobile Mobile Mobile: Gen Z is the first generation to be mobile-only. Gen Z members spend a lot of time on their phones and prefer to conduct all online activities that way. Your website and donation page must both be optimized for mobile. Being mobile-friendly is one of the main aspects of fundraising trends 2021.

Visuals are important: Gen Z spends a lot of time on visual-based platforms like Instagram and Facebook. When trying to interact with Gen Z, it’s important to emulate these platforms and create and use authentic visuals. In addition to photos and videos, infographics are also a great tool for communicating data visually and understandably. Use visuals to tell compelling stories.

Fundraising Trends #2: From Generalization to Hyper-Personalization

More and more donors expect a hyper-personalized and tailor-made approach. Tech giants like Netflix and Amazon use cutting-edge new technologies to make recommendations while browsing their sites. Netflix even shared how they not only use individualized viewing history but also use movie static images to display different cover images to different users to appeal to the widest range of tastes.

It seems that as a society we also expect this level of sophistication in our interactions with the rest of the world. In 2021, this expectation will increasingly also apply to charities.

It is no longer enough to use one generic marketing strategy for a diverse group of donors.

According to the 2017 Trends In Personalization, 96% of respondents think personalization helps build customer relationships, while only 45% agreed that marketers use personalization well. It is more important than ever to appeal to different demographics in society.

What can you do?

Make the “question” personal. Don’t propose a $50 donation to a potential donor who can donate millions. Do your research before asking a question, especially if you’re approaching potential donors individually.

Pay attention to the donation page. Get to know your audience before sending personal messages. Choose projects and formulations that you already know will best suit the donor base.

Personalize your messaging: When communicating with various donors, online fundraising or offline, specialize your messaging. Consider generational differences and other demographics.

Fundraising Trends #3: Email Isn’t Dead

Email is not dead, quite the contrary.

In 2017, there were 3.7 billion email users worldwide. This number will grow to 4.1 billion users by 2021.An email has an average ROI (Return On Investment) of 122% that is more than 4x higher than other marketing methods, including social media, direct mail, and search advertising.

A study found that email accounts for 26% of online revenue and the number is expected to increase in the near future. While only 6% of donors were willing to donate via email in 2012, that number rose to 28% in 2018.

Obviously, the way emails look has changed over the years. For example, emails today are much more visual than before. It has also been shown that while more and more people are using social media and spending more hours on their devices, the opposite trend has also occurred in recent years. There has been a backlash against social media that has quietly been among the young.

A 2017 survey of British schoolchildren found that 63% would be happy if social media had never been invented. Young people cite reasons such as wasted time, “false” presentation of life, stress, and pressure to be perfect, desire to make meaningful, real-life connections—as reasons they limit their use of social media.

Another reason email isn’t dead: Emails aren’t as disruptive as social media and are easier to check. Email is the way to reach those young people who are taking a break from social media. Plus, emails are cost-effective and easy to create.

What can you do?

Make sure your email marketing strategy is top-notch. Segment your audience based on demographics, preferred communication frequency, etc. Get clear insight into what you’re trying to achieve through your emails (e.g., increasing the number of monthly donors).

Pay attention to the emails. The emails should contain a clear call to action, with an inviting subject line, and be sent at the right time. While high-quality images are essential, don’t overload the email with visuals. Simplicity works. Thoroughly analyse the data, such as the percentage of open emails, CTR (Click-Through Rate), and unsubscribes.

Apply ‘’Story Theorem’’. Stories are one of the most powerful tools at your disposal. They convince people to donate and let them participate like no other method does. Use the emails to share stories about impact.

Fundraising Trend #4: The Growth of Business Donations

Corporate sponsorship is a payment made by a company to a non-profit to promote the non-profit’s operations, programs, or events.

In recent years, companies and their philanthropic departments have begun to invest more in initiatives that are socially and environmentally responsible. This was largely driven by the rise of the conscious consumer, as well as conscious workers.

Research has confirmed time and again that there is a positive relationship between how employees perceive their company’s social contributions to the community and employee engagement in their work.

A 2016 study by Cone Communications found that 58% of the population consider a company’s social and environmental obligations when deciding where to work. When you partner with a company, your non-profit will not only receive a donation but also reach a new audience. This new group could lead to new donors and volunteers.

What can you do?

Offer donation matching programs: Companies often offer donation matching programs to their employees. When an employee makes a donation, they ask their employer to make a donation to the same non-profit as well. The employer’s gift is the “matching donation”.

Corporate Sponsorship and Partnerships: Before partnering with a for-profit organization, think about your target audience and how they will receive the news about the partnership. Do your research and make sure the company’s values ​​match those of your organization. Prepare a sponsor proposal and start approaching potential sponsors!Offer volunteer work: Monetary donations aren’t the only way to give. More and more companies are allowing and encouraging their employees to set aside time inside and outside of work to volunteer.
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