Preparing for an Uncertain Giving Season

As we saw in exit polls following the recent election day, inflation is one of the biggest issues on people's minds. The inflation rate was 7% in 2021 and rose to 7.7% for the 12 months running through this October.

Other factors are also weighing heavily on the economy. Even though the GDP in the U.S. grew in the third quarter, consumer confidence remains low. The Federal Reserve has been raising interest rates repeatedly, and some economists think rates should continue to be raised until we cut the current rate of inflation in half. However, recent data shows inflation may be easing slightly.

Way back in June, we offered some advice on preparing for a potential recession. We haven't moved into a free fall or a recovery yet, so the last five months have felt like walking a tightrope. In a situation where the economy could go either way, people tend to prepare for the worst option. How should this mentality affect your fundraising methods as we move into peak giving season?

Blackbaud recently released its Philanthropy Through Recession report. In the report, the authors note seven steps to future-proof your organization:

• embrace digital transformation;
• find and target major donors;
• focus on donor retention;
• invest in a sustained giving program;
• add to your donor pool;
• harness the power of peer-to-peer fundraising; and,
• diversify your revenue mix.

Let's look at some ideas and strategies for achieving each of these steps:

Embrace Digital Transformation

The report mentions using automation to reduce manual processes. This can open up more time for your staff and volunteers to spend on other tasks, such as fundraising. Also think about digital methods of reaching out to potential donors. Are there any social media strategies you might have overlooked? (Check out our coverage on engaging digital-native donors.)

Find and Target Major Donors

Looking for large donors may leave a lot of us feeling like Captain Ahab, but we still need to try. Part of bringing these folks into the fold is expanding your messaging. Consider the digital methods above. (And take a look at our blog post on using your website to engage donors.) Also explore various methods of direct outreach, such as phone calls or in-person meetings.

Keep in mind that there may be some potential large donors lurking within your existing donor base. Try to brainstorm recognition tactics that might bring them out of the main mix. For example, do you offer any perks based on the amount of a donation? The report also points out that your organization should be prepared to accept non-cash gifts.

Once you have found a major donor or two, you need to keep them engaged. A previous GrantStation blog post looked at how to make that happen.

Focus On Donor Retention

Of course, you want to keep donors of all sizes engaged with your organization. While you may choose not to expend as much effort as when trying to retain major donors, small gestures can go a long way toward keeping many of your donors happy. Consider personalized thank you messages, or maybe even a donor appreciation party. Make your donors feel seen and recognized.

Invest in a Sustained Giving Program

Does your organization have a sustained giving program? These types of commitments can equal steady, reliable dollars for your organization. It's probably no surprise, but donors that commit to these types of programs are also very likely to stick with your organization, with retention rates between 70 and 80 percent.

Add to Your Donor Pool

A lot of the ideas mentioned above apply here as well. Think about different demographics and how you might expand your outreach. Are you reaching both the younger and older generations of donors? How can you target groups you are missing out on?

Harness the Power of Peer-to-Peer Fundraising

Peer-to-peer fundraising lets you leverage your existing donors and membership to reach new audiences. Some folks might be more willing to join when the appeal isn't coming directly from the organization itself. This strategy also helps engage your membership, making them an even more active factor in the organization.

Diversify Your Revenue Mix

Don't limit your fundraising to just individual cash donations. Try reaching out to funders for both grants and in-kind support. Local businesses may consider sponsorships of your fundraising activities. If you can develop funding from a broad range of sources, your organization can better withstand a downturn in one of them.

Fundraising isn't an easy job. And it gets even more difficult when concerns about the economy cause people to keep a firmer grip on their wallets. But with a diversified and well-developed strategy, you can make this giving season even more successful than the last.