Nonprofits start making strategies and appeals for their final campaigns of the year months in advance, and end-of-year giving statistics can help shape their planning process. This article is meant to answer the questions and doubts you may have and ideas on how to improve your campaign. We’ve segregated eighteen year-end giving statistics into six important surprising facts that will help you prepare for this year’s giving season.
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Nonprofits start making fundraising strategies and appeals for their end-of-year giving campaigns months in advance. Throughout this process, they keep wondering how to reach more people, pick up the right tools, craft effective appeals, and make a stellar marketing plan.
In 2022, nonprofit revenue decreased for the first time in decades by 3.4%. This article is meant to answer the questions and doubts you may have about the decisions you’re making this year and how you can improve your efforts in the future.
We’ve collected 18 nonprofit fundraising statistics into five important and surprising facts that will help you prepare for this year’s giving season.
Most people would agree that the Christmas holiday season is one of giving and charity. It’s wise to assume that charitable giving during end-of-the-year campaigns would raise the most money for nonprofits. For many organizations, that’s true.
Imagine collecting a third of your fundraising revenue during the holiday season! That would really take the load off your organization’s shoulders and help you breathe easy.
While the season of giving is obviously a time of generosity, some of you may be surprised that most end-of-year giving isn’t on Giving Tuesday.
This isn’t an insignificant amount of money, but it only consists of 4% of nonprofits’ online year-end revenue.
These statistics may make you want to rethink your campaign plans for this year’s holiday campaign. Giving Tuesday is an excellent time to start your year-end giving campaign. This year, Giving Tuesday is on December 3rd, but don’t stop there. You’ll want to reach out and connect with new, current, and lapsed donors throughout the season.
Pro tip: Read this article for more tips to get the most out of this year’s giving season.
There are several viewpoints on the best time to start a year-end campaign. Best practices suggest starting your campaign in September or October. While this may seem difficult, it is definitely not impossible. See why –
That’s not a significant number, but what if these are the nonprofits that are easily meeting their fundraising goals by the end of the year? There’s no harm in jumping on the bandwagon! All it takes is getting your team ready on time and starting a month or two early.
This number grows exponentially for the month of October.
It is evident that most nonprofits are finding it effective to start their holiday season planning way in advance. So, if you can’t make it in September, you should definitely aim for October!
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Many nonprofits may start in November because that’s when most stores and communities in the United States start their Christmas season. Thanksgiving is also an essential giving holiday for many. Thanks to the abundance of cheer and giving everywhere, people are more inclined to give starting in November.
The number declines further and about 30.8% of nonprofits end up starting their year-end asks in December. This leaves them with little opportunity to send follow-ups.
It’s easy to assume the economy in 2022 was the reason for the drop in donations. That’s definitely true for a lot of it, but there are some significant decisions and changes nonprofits made or missed that had an impact too.
That’s a decline of 6.4% from 2021 or 13.4% with inflation. The interesting part of this statistic is that the amount individuals gave actually increased last year.
It was the number of donors that decreased. All decreases in donors for nonprofits were for individuals who gave $500 or less. So where did that decrease come from?
New donors are essential to the success and sustainability of any nonprofit, but sometimes we don’t put in the effort necessary to connect with new audiences. 2022 brought lower totals of new donors overall, causing some of the 2022 slump.
Retaining donors is just the first step – they need to be engaged in order to participate and become valuable, long-term supporters. 2022 saw a slump in engagement for end-of-year fundraising, so nonprofits should keep this in mind as they plan their 2023 campaigns.
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Maintaining donor momentum – and maintaining donors – often look like the same thing. Having trusty, repeat donors who support you year after year is the key to end-of-year fundraising success.
Nonprofits must start planning and acting on their fundraising goals much earlier than December to make an impact. Much of this has to do with donor communication. If the only thing your donors receive from you is an appeal letter at the end of the year, you can’t blame them for not sticking around. It’s not too late to run a report of lapsed donors to see why they left and if you can regain their trust and support.
Pro tip: Take a look at our article on how to regain lapsed donors for a few tips to help you get started.
Regardless of the economy, there are steps you can take to strengthen relationships with donors and raise more funds. Nonprofits need to stay updated on each generation and type of donor. Knowing what they like to donate to and how they’d like to be contacted will help your giving season strategies.
Check out our article Why Do People Donate? to learn more.
At the end of the year, many organizations (us included) assume that a primary reason people give is for tax deductions. But seeing the impact of their donation can help drive more enthusiasm and participation.
Donors want to know how their gifts are making a difference, and there are several ways you can do this. Monthly or quarterly newsletters are a popular communication trend, but you must ensure you’re sending information and details your donors want.
Your organization’s newsletter should include personal stories and facts. Most donors want to hear compelling tales that show how their gifts are impacting real people. Others may need to see statistics that break down exactly where their donations are used. A combination will help you reach both of them.
Pro tip: Do you have a nonprofit newsletter? Are you struggling to find things to write about? Read our article for helpful newsletter tips and best practices.
Don’t forget your volunteer base when sending appeals for year-end donations. They do not need convincing that your nonprofit is working diligently toward its mission. Plus, they’re your most ardent supporters!
Pro tip: Learn more ways volunteers can help your organization.
Your organization may assume that Millennials aren’t as interested or able to give as older generations. Many millennials have now reached their 40s, have started a family, bought a home, and are looking to the future. Millennials make up 25.9% of the US population, and discounting them is a dangerous assumption that will cost you.
The trick to winning over Millennials and Gen Z populations is to make it easier to give.
Nonprofits must make recurring donations a significant part of their fundraising strategies. Recurring gifts offer organizations a sense of relief. Nonprofits can add these gifts to their annual budget and base some of their programs and expenses on this income.
Donors appreciate this option because it takes no effort on their part to continue to support their favorite charities.
Pro tip: Donorbox makes it easy for nonprofits to add weekly, biweekly, monthly, quarterly, and annual recurring donations to their online donation forms.
Most Millennials and Gen Z use their smartphones for everything. That’s equally true when they donate. Most people will see your website on their phones first, so a mobile-friendly website is necessary. Most website-building tools will do this for you, but you can catch visitors’ attention better by adding videos and compelling images, and limiting text when you can.
Another way you can convert smartphone users into donors is by making it quicker and easier to fill out your donation form.
These payment choices are becoming more popular with smartphone users because of their convenience and time-saving.
It’s easy to include these options and more using Donorbox’s UltraSwift™ Pay. Simply enable it on your campaign and your donors will enjoy checkouts that are four times faster.
The year-end giving statistics and facts listed in this article are meant to help you effectively plan your giving season campaigns. As you write and carry out your appeals, remember to segment donors by demographics, their ability to give, and their interests in your organization.
Remember, it’s not too late to reach out to lapsed donors. As we near the holiday season, run a report and find ways to reconnect with donors you’ve lost. You will see your efforts pay off in the end.
Online donations have become a vital revenue source for all nonprofits, especially during giving season! Donorbox is a powerful and affordable tool for you to get started right away – for free! Our features include Recurring Donations, Crowdfunding, Peer-to-Peer, Events, Memberships, QuickDonate, Text-to-Give, and more. Learn more about our features here.
Experts at Donorbox can help take your end-of-year campaign to the next level! Check out Donorbox Premium to get a customized success package for your organization.
Kristine Ensor is a freelance writer with over a decade of experience working with local and international nonprofits. As a nonprofit professional she has specialized in fundraising, marketing, event planning, volunteer management, and board development.
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Kristine Ensor