Cheers to an incredible Paris Olympics! The athletes always provide stunning competition and are such professionals in their sport. There’s much to learn and apply to fundraising as you think through their dedication to the sport and their finesse.
However, if you didn’t catch some of the other crazy fun happening over the last month:
- The annual World Dog Surfing Championship just took place in Pacifico, Calif., and it will make you grin ear to ear to catch a glimpse of the gathering. As the AP reported, “They weren't soaring out of giant barrels like their human counterparts at the Paris Olympics surfing competition in Tahiti. But dozens of dog surfers shred some waves in Northern California this weekend at the World Dog Surfing Championship.”
- ‘Rough’ Time — Gameplaying Shiba Inu Raises $70,000 And Counting. To date, viewers and well-wishers following PB’s play have celebrated by donating more than $35,000 (final numbers were not in as of deadline) to Médecins Sans Frontières, also known as Doctors Without Borders. All in all, participants in Summer Games Done Quick 2024 generated more than $2.5 million during the weeklong event, which was held in Minneapolis, Minn., between June 30 and July 6.
- Women Hype Each Other Up With ‘Boots and a Slicked-Back Bun’—memes that went viral when applied to animals at Arizona Humane on Tik Tok.
If you’re not a Swiftie, you may have missed her generosity to food banks on her 52-stop Eras Tour. Since last March, Swift has donated the equivalent of hundreds of thousands of meals to help feed the growing number of Americans. She chooses to give without celebrity fanfare.
Swift’s support has been meaningful, food bank operators say, especially in drawing attention to their crucial service for low- and mid-income people. Food banks fortunate enough to receive a slice of her wealth have praised the pop star for drawing more attention to their efforts to reduce hunger amid inflation, rising food and energy costs, and increased demand for their services. She might have just created a New Era for Food Bank Donations.
Year end is truly right around the corner, and that’s when all the charity rating websites are most frequented by donors. If you would like to know how to maximize your Candid/GuideStar profile for the giving season, you can sign up on Candid for their upcoming free training from 2 - 2:45 p.m. ET (11 - 11:45 a.m. PT) on Wednesday, Oct. 2. I highly recommend you update your organization profile before Oct. 2, then go back and make it more robust with what you might learn at the training.
For more insights, jump over to RKD Group’s LinkedIn articles and grab Ronnie Richard's Thinkers Newsletter on LinkedIn. He shares fundraising and marketing insights inspired by his own experiences as well as blogs from our own strategists and partners. He’ll have a new August edition launching just around the corner.
More good reports and fundraising tips were released last month, so grab your favorite beverage and dive in.
1. Q1 2024 Fundraising Effectiveness (FEP) report
The 2024 Q1 Fundraising Effectiveness Project quarterly report measuring giving for 2024 Q1 January-March 2024 vs. 2023 was released July 30.
FEP Q1 2024 Report Key Takeaways:
- Q1 data shows a slight increase of 4.1% in dollars raised, while reporting a continued decline of -1.3% and -3.0% in donors and retention metrics, respectively. While still negative, the rate of decline in the number of donors appears to be slowing down from the precipitous -10.3% drop in 2022, indicating a potential reversal.
- Conversely, micro-sized donors (those who gave less than $100) showed the largest drop in performance, decreasing 10.4% while all other donor categories declined 5.2% to 0.8%. This trend mirrors the same quarter last year, indicating that organizations are failing to attract and retain small donors in the beginning of the year, and accounting for nearly 75% of the topline decrease in donors.
- While most organization sizes have been experiencing a decrease in fundraising totals since 2021, small organizations (≤ $100K) continued to see an increase in dollars raised, performing well above their larger counterparts in fundraising outputs.
- Constituting only 3.5% of total dollars, the “International, Foreign Affairs” cause category saw the largest YOY increase (9.6%), which is likely attributed to aid and relief campaigns caused by international conflicts.
Developing tactics to encourage donor retention and broader solicitation will be essential in 2024.
“There appear to be two diverging trends: We are losing broad support from a large number of small-dollar donors, while the International and Foreign Affairs segment is gaining ground with these very same donors," said Ben Miller, Chair of the Fundraising Effectiveness Project, and SVP of Data Science at Bonterra. "This indicates that the numbers do not reflect a decline in donor generosity, but rather a need for our sector to adapt and figure out new ways to unlock that generosity more effectively."
2. U.S. Charitable Giving Fell About $20B in First Year of Tax Law Change
Shortly after Giving USA released their new annual report, a new study was released that is quite eye-opening on the $20 billion in giving that didn’t happen due to the 2017 Tax Cuts and Job Act’s implementation of a standard deduction.
A new study by researchers at Indiana University and the University of Notre Dame finds that U.S. charitable giving fell by about $20 billion in 2018, the first year of the 2017 Tax Cuts and Jobs Act’s (TCJA) implementation. The drop was caused by the law’s change to the standard deduction for individual income taxes. The research provides the first available estimates for the dollar amount of TCJA’s impact on giving.
“The 2017 Tax Cuts and Jobs Act is the largest change in U.S. tax policy in a generation, and our research shows that it had a large effect on charitable giving,” said Mark Ottoni-Wilhelm, a professor of economics at IUPUI. “Among households that had previously been itemizing but switched to taking the standard deduction in 2018, the amount they gave to charity decreased by an average of $880.”
Applying the $880 per household decrease to the 23 million households that switched from itemizing charitable deductions to the standard deduction suggests an aggregate drop of about $20 billion in giving.
The researchers estimate that about $4 billion (20%) of the $20 billion decline is attributable to households “re-timing” some of their giving, i.e., moving forward into 2017 amounts they had planned to give in 2018, in order to benefit from itemizing deductions in 2017. They estimate that the remaining $16 billion (80%) is a permanent annual drop caused by TCJA.
TCJA’s increase in the standard deduction had little to no effect on giving to religious congregations, whose primary focus is on religious purposes and spiritual development, the study finds. Most of the decrease was in giving to other types of organizations, especially in giving to organizations whose primary focus is helping people in need of basic necessities.
3. GivingTuesday Releases 2023 Data Commons Lookback Report
The GivingTuesday Data Commons released "The Giving Bridge: Lookback at 2023 Trends in Global Generosity," its fourth annual exploration of global giving trends. This comprehensive report offers an in-depth analysis of generosity worldwide, aiming to foster a more effective and evidence-driven social sector.
The Giving Bridge goes beyond familiar philanthropic metrics, often narrowly focused on financial donations to charities, to also report on giving money, time, items and voice in many different contexts, including giving to community groups and non-family individuals.
Key findings include:
- The Giving Bridge is Real: Amid global concerns about polarization and social cohesion, the data shows that most people are willing to give across ideological, lifestyle and community boundaries.
- The Need for Nonprofit Adaptation: Although there are declining trends in monetary donations and participation rates, most people remain open and ready to help those in need. In other words, the giving ecosystem is as robust as ever, and it appears increasingly clear that it is nonprofits who must adapt and redesign their relationship to giving to overcome the steady declines in donors and dollars.
- Diversify for Impact and Resilience: The social sector as a whole is not inviting enough different kinds of people into its support ecosystem, whether as donors, volunteers or cause supporters. By focusing on high-net worth individuals, many other potential donors—including many highly generous, albeit less wealthy, individuals—are excluded. Tapping into existing giving ecosystems in client communities is a smart long-term strategy to increase resilience and impact.
4. RKD Group, GivingTuesday Unveil GivingPulse Field Guide
The GivingPulse Field Guide is a comprehensive resource designed to provide nonprofit organizations with actionable strategies and insights drawn from the GivingTuesday Data Commons' quarterly GivingPulse Report.
The GivingPulse Field Guide was created in collaboration with GivingTuesday's Data Commons team. RKD and GivingTuesday share a commitment to advancing the understanding of generosity trends and improving nonprofit outcomes. This partnership ensures that the guide is grounded in the latest research and best practices, making it an invaluable tool for organizations of all sizes.
GivingTuesday’s quarterly GivingPulse Report has a wealth of data, but people can get overwhelmed by so much and think, “OK, now what?” The Field Guide has three main themes:
1. Connection to the community
- How to localize your impact
- Community has different meaning for different people
- National/International orgs must localize impact
- How to understand what drives people to support you
- “Know their why” by going beyond transaction data
- Add “What sent you here?” to donation forms
- Stay top of mind through communication (newsletters, media)
- How to make donors feel like they’re making a difference in someone’s life
- Support is not about the org—take a step back
- Storytelling is essential, and we must personalize it
- Combination of empathy and urgency wins
"Combining RKD's fundraising strategy leadership with GivingTuesday's data leadership is a game changer for nonprofits in the U.S. and around the globe," said Woodrow Rosenbaum, Chief Data Officer at GivingTuesday. "The combination of the GivingPulse Report and Field Guide create a powerful resource set that will help organizations maximize their impact and foster deeper connections with their supporters."
5. GivingTuesday and Giphy—fun GIFs for social media
GivingTuesday and Giphy partnered together to create “an epic collection of GIFs” that you can use on your socials: https://giphy.com/givingtuesday
More GT resources available here too: https://www.givingtuesday.org/logos/
6. Join the DAF Day Movement
DAF Day is a new kind of giving day to redefine how donor-advised funds are used—and who uses them.
Leaders from The Michael J. Fox Foundation, Memorial Sloan Kettering Cancer Center and International Rescue Committee held a workshop on July 31. There’s an area on the website for nonprofit organizations to join the movement and unlock the full power of DAFs with your donors.
An upcoming webinar, DAF Day Prep: Your Playbook for Success, will be held Tuesday, Aug. 20 at noon ET to prepare your team for the big day on Oct. 10!
7. Donors Who Give Through DAFs Tend To Be Generous Contributors, Study Finds
The 2024 DAF Fundraising Report, which looked at DAF-related data from 2019 to 2023 that was provided by nonprofits, found that among the 20 organizations studied, DAF-generated revenue grew by 214% from 2019-23. At the same time, the revenue sourced from donors outside of DAFs rose by only 1%, illustrating a “really drastic comparison.
The study comes at a time when scrutiny of DAFs continues and as more individuals are opening and funding these vehicles.
The research by Chariot and K2D also found that the average annual retention of DAF donors was higher than non-DAF donors by more than 15 percentage points over the five-year period they studied.
Key Findings:
- The study data shows that for these organizations, once someone starts giving from their DAF, their annual giving increases by 96%.
- Data from a new study shows the number of DAF donors increased between 2019 and 2022. During 2023, however, 25% of organizations studied had slightly fewer DAF donors than the prior year, while 75% had declines in the number of non-DAF donors.
- The change in total number of DAF donors remains meaningfully less than the change in number of DAF gifts because a significant portion of DAF donors make two or more gifts per year. And, if a donor had given an organization $1,000 via credit card but in 2022 gave with a DAF for the first time, their annual support increased to nearly $2,000 per year thereafter.
If an active donor file had 10,000 non-DAF donors in 2019, it’s likely 600 have been lost by 2023, based on the data from the 20 nonprofits. But if there were 500 DAF donors in 2019, there would be 895 in 2023, making 19 times larger gifts than non-DAF donors, on average, the authors said of the data.
8. Bridging the Gap: Aligning Annual Campaigns with Major Gifts
Nonprofits must harmonize fundraising strategies to successfully manage clients focused on annual campaigns versus those oriented toward major gifts. Here’s a practical approach:
- Integration of Teams: Encourage collaboration between annual campaign and major gifts teams to ensure consistent messaging and holistic donor engagement.
- Stewardship Beyond the Annual Campaign: Implement stewardship plans that extend beyond the current year to nurture annual campaign donors toward major gifts partnerships.
- Data-Driven Decision Making: Use donor data to identify annual donors with potential for major gifts, gradually introducing them to long-term partnership opportunities.
- Education and Training: Invest in educating fundraisers about the distinctions between cash and wealth giving, including advanced charitable vehicles and how to engage donors at each level.
- A Focus on the Future, Not Just Meeting Budget: Donors who see a vision for the future and avail themselves through a thoughtful, persuasive, honest relationship manager are more likely to spend time being involved. They also make an effort to understand the issues and their own connection to them.
- Deploying a Compelling Narrative, Not Missing a Step: Compelling narratives for fundraising look like the following:
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- What's the scope of the problem you are solving?
- Why are you uniquely positioned to address this problem?
- If available, who has helped you address this problem already?
- What do you want to do about this problem?
Adopting the right mindset is critical when managing clients focused on annual campaigns vs. major gifts. By understanding and appreciating these nuanced differences, nonprofits can strategically navigate donor relationships, leading to sustainable philanthropic growth and stronger partnerships in the fundraising landscape.
9. Nonprofit fundraising in an election year is especially tough. What can fundraisers do?
What can be done to boost nonprofit fundraising in an election year? Research from Blue State suggests steps organizations can take to position themselves for success this election year and for future sustainable growth.
Findings show donors in swing states are less likely to give to nonprofits in 2024. Here are three steps Candid shows to bolster nonprofit fundraising in an election year:
- Tailor and target messaging. Scrutinize your fundraising campaigns. Does the tone or content resemble political messaging? Research reveals the next generation of nonprofit donors positively engage with political fundraising, while donors 55 and older tune out. Segment your approach—prioritize clear, compelling storytelling that emphasizes impact and values beyond politics.
- Diversify your outreach. Our research revealed that many donors are only hearing from nonprofits in a single channel (e.g., 44% of nonprofit donors ages 35 to 64 only remember content from a single channel). Explore a diverse mix of online and offline channels to reach potential donors. Consider online events, connected TV (CTV), synchronized mail, and digital, as well as influencer collaborations to cut through the noise and connect on a more personal level.
- Embrace data-driven decisions. Closely monitor your advertising performance by state. Identify which regions yield the best returns and which are lagging. Don’t be afraid to throttle spending in underperforming states, particularly those heavily contested in the election.
The 2024 election cycle demands that nonprofits, especially those in swing states, rethink their fundraising strategies. This is not a year we can put programs on autopilot or expect the “same-old” tactics to yield better results.
To realize sustainable growth, organizations need a new mix of channels and messages, as well as a renewed focus on audience diversification. Start now to maximize nonprofit fundraising long after the election.
10. Donors Less Likely to Give on Smartphones—How Fundraisers Can Combat ‘Mobile Giving Gap’
Charities are losing out by failing to see the importance of adapting their fundraising appeals across device types. Donors are less likely to give to charity and also give less money when they’re engaging with their smartphones, according to a new report, “The Mobile Giving Gap: The Negative Impact of Smartphones on Donation Behavior,” from researchers at the University of Connecticut and the University of Notre Dame. The researchers call this phenomenon the “mobile giving gap.”
While nonprofits tailor their fundraising appeals for direct mail, personal phone calls, face-to-face meetings and online communications, they are not adapting their messaging for different types of digital devices. Ferguson says charities are losing out on bringing in more charitable donations and new donors when they ignore this difference.
The report’s authors offer several simple strategies that fundraisers can use to close the mobile giving gap. One key insight: Fundraisers should create “other-focused” messaging that highlights the needs of individuals or groups, or spells out that the potential donor can help those who are less fortunate, instead of focusing only on details of the fundraising campaign. The report says this approach leads to increased awareness, which in turn can lead to increased donations.
11. Economic Headlines
News released on July 25 reported that U.S. economic growth increased last quarter to a healthy 2.8% annual rate. There were talks of Goldilocks for third quarter. But then, jobs data reported on Aug. 2 triggered a stock sell-off, prompting a sudden switch in the economic narrative from a soft landing to a hard landing. In fact, Aug. 5 was the worst day for U.S. stocks in nearly two years.
- Of course, we are now hearing cries of an impending recession yet again. But as the Wall Street Journal reminds us: A recession isn’t a switch that is arbitrarily thrown on or off; it’s a process: a self-reinforcing cycle of weakening spending, employment and income, usually triggered by tight financial conditions such as high interest rates or a credit crunch, or a shock such as higher oil prices or, in 2020, a pandemic.
- Alas, there’s a growing gap between Americans who are battered by high inflation and interest rates and those who are actually benefiting from it. The stock market is soaring, household wealth is at record levels and investment income has never been greater. At the same time, some families’ pandemic-era savings are running dry, and delinquencies on credit card and auto-loan payments have jumped.
- A UBS analysis of federal data showed excess savings accumulated during the pandemic have been fully depleted for the bottom 40% of earners. Now, delinquency rates for credit cards are higher than at any point since the aftermath of the Great Recession in 2010, according to BCA Research. The unemployment rate then was more than double its level now.
- An alternate reality is playing out among America’s high earners. In addition to paper gains from stocks and home values, Americans are pocketing more cash than ever from dividends and interest, helping many wealthy people keep pace with inflation, if not outrun it.
Visit the RKD Resources Website Page for some great insights
- New research: What drives people to donate to animal welfare organizations
- 17 digital wins your nonprofit can implement today
- Inspiration and adaptation: The dual keys to nonprofit success
- Google is keeping cookies—what should nonprofits do now?
- Rossi’s Roundup: Giving USA, economic data and a camera for scents
- The future of tribute donor retention: What will your nonprofit do to innovate?
RKD Group: Thinkers Monthly LinkedIn Update:
- A new recipe for growth: The GivingPulse Field Guide
- Not just for kids: What board games can teach us about fundraising
- Sometimes you just need to pause and celebrate
- Step up to the plate: What nonprofits can learn from MLB
- Thinkers: From IT to AI: Transforming nonprofit fundraising with Cherian Koshy
- Thinkers: The evolution of We Are For Good with Jon McCoy
- Chat: Meet Vivian Borja from Food For The Poor
- Thinkers: Kindness and compassion: Building a better world with Brad Montague
- Thinkers: Transitioning into the nonprofit sector with Christa Stelzmuller
- Chat: Meet Alisa Gray from Kentucky Humane Society
- GivingPulse Field Guide in partnership with GivingTuesday
- The 2024 Nonprofit Marketer's Compass
- Solid Gold: The Nonprofit Marketer's Guide to Trust
- Listen Up: The Nonprofit Marketer's Guide to What Donors Want
So many insights from the annual and inaugural reports that have been released over the past few months. How will you apply these to your October-December fundraising plans? Would love to hear from you.
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