We’re halfway through 2022 and technology continues to evolve everyday. New changes provide charitable organizations with various methods of promoting their causes. Nonprofits can connect with their current donors on a personal level, while attracting new donors at the same time. Meanwhile, donors have more accessibility to donate to the causes they care about, due to technological developments, such as fundraising on social media, text giving, digital DAFs and cryptocurrency.
Online giving grew by 12.1% in the past year. As it continues to increase, it would be beneficial for your nonprofit to leverage emerging digital tools and resources. While you may not be able to implement all the changes into your fundraising strategy, a look at some of the trends will allow you to understand what works best for your nonprofit. Here are 4 emerging digital giving trends your nonprofit should look out for.
1. Increased social media activism
Research shows that 56% of Gen Z and 51% of Millennials and Gen X prefer to learn about nonprofits online. This provides your nonprofit with an opportunity to encourage your current donors to
Meanwhile, younger generations are most active on Instagram and TikTok. Why? Because they both offer quick content that is easy to consume. As technology gets quicker, our attention spans get shorter. Research shows that the attention span of Gen Z is less than 10 seconds. This means that your nonprofit will need to create short and simple content about your mission. Gen Z tends to support and promote causes in many ways that are not monetary. You can encourage them to support your mission by providing volunteering opportunities, creating online petitions, or asking them to share information about your nonprofit on social media.
2. Text giving
In 2021, approximately 28% of donations were made online through mobile devices. Although it’s slightly lower compared to 13% in 2020, research shows that texting is an effective way to connect with your donors. Smartphone users spend approximately 3 hours on their phones per day and 85% of smartphone users prefer text messaging over all other forms of communication. This is a valuable opportunity for your nonprofit to make text giving more accessible to your donors.
As the average open rate for texts is 98%, compared to email which is only 17%, you can implement effective texting practices with your donors. Texting is more intimate and allows your donors to connect with your nonprofit better. Studies show increased revenues for nonprofits who personally reach out to their donors, compared to those who don’t. So, keep your texts short and casual! They will help maintain the attention of your donors, while getting your message across. You can also attach photos that show your real beneficiaries. This will emphasize the impact your donors have made, while reminding them why they give. For example, you can add a photo of a scholarship student on graduation day, which wouldn’t have been possible without donations. If you are struggling with sending personalized 1:1 texts, text messaging tools can help too. Communicating with your donors via text will add a personal touch and make it easier for them to give.
3. Donor Advised Funds
Contributions and grants from Donor Advised Funds (DAFs) rose tremendously in 2020, despite the global crisis. DAFs are gaining popularity because they allow donors to contribute to charities at their convenience, while receiving an immediate tax deduction.
According to a report by Fidelity Charitable, 91% of DAFs made at least one grant in 2021. This shows that accepting DAFs will be beneficial to your nonprofit and encourage your donors to give more, which can increase your yearly revenue.
Donors can contribute to DAFs online and offline. Online DAFs are easy to manage, and your donors can keep track of their giving activities online. When donating cash offline, via check or wire transfer, your donors can be eligible for an income tax deduction up to 60% of their adjusted gross income.
Cryptocurrency has grown in popularity over the pandemic, and many nonprofits are starting to take advantage of it. The Giving Block, a firm that helps nonprofits accept cryptocurrency, reported raising over $69 million crypto donations in 2021.
More than $500 million was donated in cryptocurrency in 2021. Many donors are choosing this method because it can reduce their capital gains tax. You will also be able to cater to younger generations as more of them choose to invest in it.
Though crypto giving is gaining recognition and preference, we strongly recommend that you do your research. Knowing the implications of accepting cryptocurrency will allow you to implement the right practices for your nonprofit.
The growth of technology has provided nonprofits with new ways of engaging with their donors. Ensure that you stay up to date with the latest digital giving trends to continue offering your donors a rewarding experience. Remember, your donors want to be a part of your cause, and with these new digital giving options, it just got a little bit easier!
Our donor analytics tool, DC Analytics will help you understand which practices to implement based on the behavior of your donors. Learn more: https://bit.ly/DonorCompassAnalytics