Anticipated Fundraising Trends of 2020
No matter where your organization is in its fiscal year, for donors the new calendar year brings with it new opportunities, a feeling of invigoration, and sense of possibility that development teams should be prepared to react to and capitalize on in order to start 2020 off right. Jordan Ritchie, Senior Associate Director and Shea Hermann, Associate discuss trends of the past decade, anticipated trends for the new year, and how best to plan for your nonprofit accordingly.
Looking Back to Look Ahead
To recap the year, we recently published an article that outlined seven top trends from 2019 focusing on collaboration, technology and digital fundraising with a more specific focus on AI, digital fundraising, corporate social responsibility, and planned giving.
Building upon the nonprofit trends of these areas, we explore three anticipated nonprofit trends for 2020 and discuss how to engage your prospects accordingly.
Three Trends to Anticipate in 2020 and Beyond
1. Increased focus on sophisticated planned giving avenues.
As we anticipate the largest and wealthiest generation in history transferring $68 trillion to their Gen X and Millennial children, an estimated $6.3 trillion will be transferred to charities through bequests. Unless donors are asked, 90% of donor mortality will result in a lost opportunity. We expect nonprofits to begin to utilize and leverage more sophisticated giving vehicles for their donors in anticipation of this wealth transfer.
It will be crucial for your nonprofit to capitalize on this transfer of wealth by providing the best vehicles for your donors to consider. Donors should consider whether a charitable bequest, charitable gift annuity, IRA charitable rollover and gifts or stock or life insurance are the best fit for them. By training your frontline fundraisers on the variety of planned giving vehicles available, they will be more equipped to help their donors build a legacy and expand their impact.
Whether your organization is looking to create a new gift planning strategy or exploring more sophisticated tools to amplify your existing program, planned giving can provide significant revenue for your organization, as well as build loyalty amongst your most passionate supporters. Orr Group recently published a three part series on Planned Giving which is a great place to start exploring what planned giving can bring to your organization.
2. Utilization of artificial intelligence in personalized, automated donor communications.
As you explore the use of AI, consider the capacity it will add to your frontline fundraising staff. By streamlining personalized donor messaging with AI, your frontline fundraising staff is freed up to cultivate stronger, more meaningful relationships with major donors. AI also helps to ensure that no donor is overlooked with staff turnover and transitions. More information on Gravyty and the resources they provide can be found here.
3. Focus on Diversity, Equity, and Inclusion from funders.
Diversity, Equity, and Inclusion (DEI) is no longer “nice to have” within a nonprofit organization but is now a crucial part of organizational identity that funders, specifically grant making organizations, will be focused on in the coming years. We have already seen an increase in grant applications inquiring about applicants’ culture of DEI. For example, last year, the William and Flora Hewlett Foundation began collecting information about the demographic makeup of their grantees in an ongoing effort to improve their practices regarding DEI. We anticipate this growing tremendously in the next decade.
As the fundraising landscape changes with the new decade, we see a rise in a new generation of donors. New population projections released by the Census Bureau indicate that the U.S. population will become “majority minority” in 2044. It is important to reflect the diversity of the population you serve within your own organization. With more diverse teams comes more creative ideas. Orr Group explored DEI within our own organization and its importance within the nonprofit sector in a recent article.
In conclusion, as we kick-off 2020, we hope that your nonprofit is able to consider some of the anticipated trends outlined above and plan accordingly to maximize your fundraising efforts for the next fiscal year and beyond. To learn more about our services and how we may help guide you through implementing best practices within your organization contact us here. Cheers to 2020!