Over the past few years, donations have declined due to the recession. However, charities learned a number of valuable lessons that helped them begin to turn things around in 2010.
A hard look at themselves
Charities knew that in order to overcome the economic downturn, they would have to go back to the basics. In 2010, organizations focused on streamlining business processes and increasing staff efficiency, preparing for when the economy began to pick up. Top executive involvement increased, and charities improved at evaluating poor management. They also realized they could not rely solely on one channel of giving, and decided to pursue funding from other sources while also aiming for major gifts. Many organizations invested in business intelligence services to enhance current donors' engagement and increase their involvement.
Data security builds confidence
One lesson learned in 2010 was the importance of investing in data security and becoming compliant with PCI standards. Charities tend to process more transactions (for donations and event registrations) for more customers than typical small- to medium-sized businesses, and this volume of credit card transactions exposes them to many risks. If they are not compliant and a breach occurs, they could face substantial fines. Using technology that supports PCI standards helps charities protect sensitive donor data, and consequently ensure a high level of confidence among their supporters that their data is safe.
Improving through technology
In addition, charities recognized that integrating their websites and databases could help them achieve their business goals. In 2010 they looked for new benefits from their existing technology. During that assessment, many realized the advantages of integrating their databases and websites into a single system that allowed them to record interactions with donors and to personalize e-commerce and e-marketing functions. For many organizations, it made sense to reinvest in one system to manage everything rather than adding new technology to a legacy system.
2010 provided charities with the opportunity to evaluate current security practices, technology investments and business processes. Organizations learned to make strategic improvements and find what works best for them. Although they are now in a great position to thrive and enhance their donors' experiences in 2011, there is still room for improvement.
Innovation
To succeed in 2011, charities will need to get creative when it comes to donor acquisition, retention and engagement. Throughout the past year, we saw an increase in online initiatives that integrated social media. Mobile campaigns and text donations also became more popular.
New technology brings new opportunities for charities to engage with their constituents. For example, a charity can use text messaging to inform its volunteers of opportunities to get involved, or can now create its own mobile application more easily. Recent examples of fundraising innovation include teaming up with local stores to ask their customers to make top-up donations when they check out at the register, or creating a viral campaign to get Facebook users to change their profile pictures and make a donation in support of the cause.
Social media
Charities have embraced connecting with supporters through social media and should do this throughout 2011 as well. Social media tools have proven to be a great way for charities to raise awareness and keep their supporters informed. In 2011, charities should keep up a presence on social networks and use these sites to maintain their reputation. In addition to posting organization updates and engaging with communities, charities will need to be aware of what is being said about them on social media networks and make sure to react to any positive or negative feedback.
Organizations should also consider creating an internal online community to maintain their branding and deepen their interactions with constituents. An internal community offers supporters a venue to express ideas, share valuable information and exchange contact details within a trusted network. Donors will feel a closer connection to organizations as they get more involved in the community, and will benefit from having access to resources around the clock.
Overall, charities seem to be entering into 2011 with more optimism after learning valuable lessons throughout this past year. While organizations will need to work hard to maintain their incomes and increase giving, the recession has provided charities with an opportunity to find more creative approaches. If organizations continue down that path, 2011 will prove to be an even greater success for the sector.
Robin Fisk is Senior Fundraising Executive with Advanced Solutions International (ASI).
