The nonprofit fundraising landscape continues to evolve rapidly. As nonprofits look ahead to 2024, being aware of key trends, challenges and opportunities is essential to adapting an effective fundraising strategy. Based on recent data, here are three trends nonprofit fundraisers should understand for the coming year.
1. The continued surge of monthly giving
Monthly giving continues to emerge as one of the biggest growth opportunities for nonprofits. While 2023 data has not come out yet, in 2022, monthly giving increased by 11%, while one-time revenue declined by 12%. Monthly giving also accounted for 28% of all online revenue in 2022.
While 2023 data has not come out yet, monthly giving increased by 11%, while one-time revenue declined by 12% in 2022. Monthly giving also accounted for 28% of all online revenue in the same time period.
In today’s subscription economy, monthly giving programs average around 90% donor retention year-over-year – nearly twice the average donor retention rate of 46%.
For donors, small monthly gifts may not pinch budgets as much as larger one-off donations, but for nonprofits, these reliable revenue streams allow better financial planning and stability.
The takeaway? In 2024, nonprofits should consider starting or growing monthly giving programs with varied subscription levels as well as offering matching incentives for first-time monthly donors.
2. Dollars up, donors down may not continue
The year-over-year phenomenon of nonprofits raising more dollars from fewer people is a longstanding trend in the nonprofit sector. However, according to the most recent data released by the Fundraising Effectiveness Project, that trend may be coming to an end.
With data collected from more than 25,000 nonprofits, the number of people giving through the first three quarters of 2023 fell by 7.6%, while the total amount given also fell by 1.1% year-over-year.
The takeaway? In a world where fewer people are giving to charity, doubling down on stewarding relationships with givers and learning to truly listen to and learn their passions will be key to long-term growth.
3. The declining effectiveness of Facebook fundraising
Facebook organic reach has declined dramatically in recent years – even for pages with larger audiences. Where nonprofits could expect most followers to see posts a few years ago, Facebook’s algorithms only show posts to a small percentage of followers today.
In response, nonprofits are spending more on Facebook ads just to reach their existing supporters, and even promoted posts compete for limited attention in crowded news feeds.
As these changes have led to decreases in Facebook fundraising revenue, many organizations are realizing that over-reliance on third-party platforms is unsustainable long-term.
The takeaway? Consider using social media to grow your email audience. An opt-in to your email list often signals a deeper interest in your mission than a Facebook follow. Email engagement remains consistently higher than social media while also allowing for increased personalization. Growing your email audience insulates your organization from declines in reach and effectiveness caused by algorithms on external platforms like Facebook.
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In light of these three trends, how might your strategy or approach to fundraising need to shift this year?
-Michael Mitchell is the Director of Development & Discipleship for CAFO. Find a full list of upcoming opportunities for fundraising training and support at cafo.org/events.