With more than 15 years of experience in nonprofit fundraising, I understand the importance of blending the art of storytelling with the science of data to shape effective fundraising strategies. I also understand the need to adapt and innovate as we continue to look for the best strategies to connect with donors today.
Recently, our CEO, Chris Pritcher, called for a significant shift away from traditional, channel-first fundraising methods, emphasizing the need to focus on an audience-first approach. Inspired by his vision and insights from his blog post, “If nonprofits want to accelerate growth, we have to shift our thinking,” our team of strategists at RKD has focused on developing new audience-first strategies for our clients that align with modern donor expectations.
Let's dive deeper into why this shift is crucial, when it is most relevant and how food banks can begin this transition with practical, real-world examples.
When audience-first matters most
Year-end giving is critical for nonprofits, including food banks, as it accounts for a significant portion of annual revenue. Typically, 40-60% of donations are received in the last three months of the year.
That’s why this period offers the greatest potential impact from adopting an audience-first approach, making it essential for nonprofits to rethink their strategies during this crucial time.
Other critical times of the year for food banks and nonprofits alike include:
- Giving Tuesday: This global day of giving, held annually on the first Tuesday after Thanksgiving, is a significant opportunity to engage donors who are looking to make a positive impact during the holiday season.
- Spring and fall campaigns: Seasonal campaigns often align with times of increased need and can attract donors who respond to timely and urgent appeals.
- Disaster relief efforts: Natural disasters and emergencies prompt immediate donor response. An audience-first approach can ensure that communications are timely, relevant and sensitive to the context, which is crucial for effective engagement.
- Recurring giving initiatives: Encouraging donors to commit to recurring gifts can help stabilize revenue throughout the year. Tailored messaging that resonates with donor preferences and behaviors can enhance the effectiveness of these initiatives.
In the past, our strategic planning focused on building campaigns in specific channels, then figuring out how we would reach out to different audiences. Putting the audience first engages various types of donors with a consistent message across channels.
This includes new donors benefiting from personalized communications, lapsed donors being brought back through tailored re-engagement campaigns, major donors valuing customized stewardship and impact reporting, and recurring donors responding well to regular, personalized updates and expressions of gratitude.
How one food bank is shifting to audience-first
The challenge
Donor expectations are evolving rapidly. With today’s “get it now” mentality, influenced by commercial experiences, people expect similar immediacy and personalization from the organizations they support.
For Food Bank For New York City (FBNYC), this shift required moving from campaign-focused strategies to prioritizing relationships, accommodating varied support preferences and transitioning from channel-centric messaging to strategic audience investments. Following the COVID-19 pandemic, FBNYC also faced the challenge of engaging a digitally savvy donor base where traditional direct mail tactics no longer resonated as effectively.
The switch
FBNYC made a strategic decision to shift more of their budget into digital fundraising, reducing their reliance on direct mail. This approach included:
- Reimagining direct mail to align with digital expectations by incorporating QR codes and vanity URLs for online giving.
- Focusing on data-driven insights to better understand and target the most engaged donor segments.
- Transitioning toward a human-centered fundraising approach, aiming to enhance long-term donor engagement and ensuring sustainable growth post-pandemic.
This audience-first strategy is being implemented now, particularly as we approach the year-end giving season. While we don't yet have concrete results, the strategy is designed to enhance decision-making, improve communication relevance and provide a better donor experience, with the goal of ultimately increasing donor engagement and retention.
We expect these efforts to significantly impact FBNYC’s fundraising outcomes as the strategy continues to unfold.
Integrating audience-first tactics
Based on our research and experience, here are some steps that food banks should take to integrate audience-first strategies into their fundraising efforts effectively:
1. Leverage data-driven insights- Analyze existing data in order to segment donors based on demographics, giving history and engagement preferences.
- Use these insights to tailor communications and appeals that resonate with specific donor groups, ensuring messages are relevant and timely.
- Incorporate extra stewardship touchpoints during the fourth quarter, such as a thank-you email, an impact report, or a text message with an impact video.
- These touchpoints should express appreciation and update donors on the achievements made possible by their support, fostering a stronger connection and sense of involvement.
- Utilize new channels, such as peer-to-peer text messaging, during high-impact times like Giving Tuesday or the calendar year end.
- This approach can optimize spending and maximize donor engagement during critical periods, making sure your communications reach donors where they are most active.
Conclusion
Shifting to an audience-first strategy can seem daunting, but it starts with using the data you have available today and evolving iteratively. For food banks preparing for year-end giving, integrating additional touchpoints and leveraging new channels are actionable steps that can yield significant benefits.
At RKD Group, we’re committed to helping our clients navigate these changes and achieve sustainable growth through innovative fundraising strategies.
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