The following excerpt is from “DIGITAL FUNDRAISING TRANSFORMATION - The Insider’s Guide to Revolutionize Your Strategy and Raise More.”
Screeching halt.
That’s the phrase used to describe the state of the nation toward the end of March 2020. Our event-driven, travel-dependent lives filled with endless weeks of joyous family gatherings and exciting plans with friends ended seemingly overnight. Companies sent their employees home with office equipment and instructions for virtual meetings. Retail businesses, restaurants, bars, and gyms closed suddenly, some of them never to see the light of day again. We shut our doors and stocked up on supplies.
It felt like the world went silent.
In the nonprofit landscape, organizations with a heavy reliance on in-person events saw their revenues disappear. Leaders battled budget cuts, national organizations were forced to close affiliate offices, and staff members struggled to continue their mission of community service with dwindling resources amidst health concerns. Fundraising officers were forced to create two or three versions of revenue forecasts to address the best, worst, and hopeful median scenarios.
By the end of June, the Independent Sector reported that 55% of mid-sized organizations closed offices, 51% laid off employees, and 30% cut benefits. In The Voices of Charities Facing COVID-19 research series, Charities Aid Foundation America (CAF) found that 93% of global organizations were negatively impacted.
Meanwhile, the adoption of virtual tools skyrocketed. Video conferencing became the norm and offered event planners the opportunity to launch creative and engaging virtual fundraisers. Online yoga, livestreaming DJ dance parties, and “zoom-bombs” with captivating animals like owls and goats were just a few of the wildly creative ideas. QR codes made an astounding comeback, not only enhancing mail campaigns, but also allowing organizations to disseminate information and provide signup forms with a touchless approach. The explosion of delivery services offered a way to keep in touch with donors and provide unique member benefits. Some organizations utilized text messages to engage audiences, particularly during the U.S. federal election. But most flocked to email and invested time boosting their social media presence and online ad strategies. In May of 2020, I hosted a “Digital Fundraising in a Pandemic” webinar. Six fundraisers shared their pivoting strategies including a virtual gala, transitioning an in-person walk to an online experience, hosting a community giving day using digital tools, and launching online sweepstakes that raised over a million dollars.
The pandemic forced a digital transformation for many charities. But not for all.
Despite technological advances, most nonprofits were in terrible shape, particularly from an online fundraising and engagement standpoint. They struggled with the basic concepts of digital fundraising and were unsure how to piece together a comprehensive campaign. Others had trouble prioritizing the most impactful tactics. And for those who knew what they needed to do, they were unable to make any progress due to resource limitations, lack of knowledgeable staff members, insufficient technology, or tension with leadership and board members.
Now, over four years later, the gap between nonprofits who are in a good place to those who are not continues to widen. “The weak get weaker,” reported the Chronicle of Philanthropy April 2023 article The Post-Covid Nonprofit: Burnout, Chaos, and the Grinding Hunt for Staff and New Revenue. Memberships, ticket sales, and program attendance have not bounced back. Churches, who were slow to adopt online fundraising tactics, struggle with declining audiences. Nature centers, performing arts groups, and small colleges are unable to strike the right balance with virtual activities that connect to participants in a meaningful way, let alone generate the donor support to maintain balanced budgets.
It is a critical time in donor development.
Since early 2000, fewer than half of American households are currently giving to charity, according to The Lilly Family School of Philanthropy’s 2021 report, The Giving Environment: Understanding Pre-Pandemic Trends in Charitable Giving. That’s equivalent to 20 million households lost in the past two decades. The 2023 Giving USA Annual Report also found a 13% decline in individual giving after inflation: the greatest ever. If a digital transformation was not necessary before, it is now crucial.
The good news is that many nonprofits are aware of the importance of digital transformation and working hard to achieve their goals of growing programs. In volume six of the Charities Aid Foundation of America (CAF) research series, Future-Proofing Nonprofits for the Post-Pandemic World, 78% of charitable organization survey respondents in 152 countries reported that they were working to increase their online presence and 75% were working to find new ways to fundraise through digital technology. And there has been progress in this area. The 2019 Digital Outlook Report published by hjc reported that 35% of nonprofits did not have staff members dedicated to their digital strategy. Of the 65% that did, 10% of them were volunteers. Since then, things have changed dramatically. The 2024 report finds that 80% now have dedicated digital staff members.
Of course, knowing that digital fundraising is a priority and hiring staff to implement digital strategy are just the first steps. Being effective is another story.
“DIGITAL FUNDRAISING TRANSFORMATION—The Insider’s Guide to Revolutionize Your Strategy and Raise More” is publishing in March, 2025.
