Ever wish you had a crystal ball to see exactly what’s in store for nonprofits in 2024? We asked our fundraising pros to think about how the sector has changed and what challenges and opportunities nonprofits should expect in the year ahead. Read on!
It’s hard to know exactly what’s on the horizon for nonprofits. The last several years have brought radical changes to how nonprofits operate, define their impact, and – perhaps most importantly – fundraise. Many organizations still feel like they’re recovering from all of these changes, and that makes it even harder to sit down and plan effectively for the future.
I asked our three nonprofit experts Kara Schmid, Brittan Stockert, and Jena Lynch to reflect on what the last several years have brought the sector and to weigh in on what’s coming down the road in 2024.
We’ll cover how fundraising has changed over the last few years, along with some challenges to expect and areas to focus on in 2024.
In 2020, 59% of Americans reported trusting nonprofits. That number dropped to 52% in 2023.
“This means almost half of the population doesn’t trust nonprofits,” Jena Lynch, our Nonprofit Advocate, explained. “This is still the highest trusted sector out of businesses and corporations, but it puts nonprofits in a tricky spot because people are expecting more from them.”
Jena continued to highlight how nonprofit transparency can combat this.
“Nonprofits really need to go the extra mile to demonstrate the impact their donors’ dollars are making.”
It’s no secret that nonprofits now have access to incredible online fundraising tools like Donorbox to help collect more online donations, build stronger donor relationships, and streamline workflows.
“I spent many hours and late nights using spreadsheets to manage relationships and try to figure out who to prioritize,” Brittan Stockert, our Fundraiser Advisor, shared.
Many of us with nonprofit experience can relate to using clunky, outdated tools to tackle a big job. But our access to digital fundraising tools has changed everything – including our ability to strategize in 2024. Brittan continued, saying:
“Now we have these powerful tools that allow us to no longer be reactive in our fundraising, but truly proactive.”
In the last five years, Gen Z adults have appeared on the scene as donors with a big drive to give. Gen Z donors give 5.3 donations on average, more than Millenials (4.8 donations) and Gen X (4.7 donations).
Kara Schmid, our Content Marketing Manager, weighed in on what she’s seeing in the sector.
“Some nonprofits have been relying on the same major donors for years but they need to make sure their communications are also targeting younger donors who may not be able to give at that level yet – but could someday.”
Nonprofits need to ensure they’re speaking to this new wave of younger donors in their communications plan.
We’ll share some solutions to these challenges in the next section!
Inflation, high interest rates, and uncertainty have continued to affect donors’ ability to give – and give more – to organizations who need it to support their mission. The result is that donors must be pickier about who they support.
“Right now, it’s hard for donors to be generous – even if they want to be,” Jena explained.
Kara shared a similar thought: “Donors are still giving, but instead of giving to several nonprofits, they might pick two or three that they know well.”
Fewer donations overall mean more competition for donors – and nonprofits who don’t come up with a solid donor strategy to address this might struggle.
Many who work in the nonprofit sector have seen this firsthand – the myth that nonprofits should operate with little to no overhead costs.
Brittan shared how decreasing donor trust and continued economic pressures compound to make many nonprofits feel pressure to cut costs.
“We know technology can help us work smarter and more efficiently. But there’s this harmful expectation from the community that we can’t invest in the tools and structure that will help us succeed the way the for-profit sector would.”
Many organizations will feel unsure of how to proceed in the face of this pressure to operate on a slim budget.
With nonprofits feeling like they can’t invest in their staff, it’s no surprise that nonprofit burnout will continue to be a big issue in 2024.
“Staff burnout is a pressing issue,” Kara shared. “Often nonprofit staff members have big hearts and they want to go the extra mile to serve their cause. They want to work hard.”
But allowing staff to work hard without checking in can lead to job vacancies, longer wait lists for services, and more. In a 2023 survey, 50% of nonprofits cited stress and burnout as a major hurdle for recruiting more staff
If things go unchecked, nonprofits will continue to struggle to recruit and retain the staff they need.
Bonus Resource – Watch this webinar on how to create a 2024 fundraising game plan:
The answer to penny-pinching donors and less dependable government funding is to find new and exciting ways to earn revenue.
Jena shared that being adaptable to new revenue streams will be the key in 2024.
“Whether that’s accepting crypto and stock donations, rolling out membership programs, selling merchandise, or hosting unique events – nonprofits must think outside of the traditional fundraising box.”
Here are some ways Donorbox can help you diversify your revenue in 2024.
Donorbox Events makes it easy to create Events pages to sell more tickets, accept additional donations, and streamline your event-planning tasks.
Kara cited Donorbox Events as one of her favorite Donorbox tools:
“You can set deadlines and ticket limits to manage your sales better. Plus, showing the tax-deductible amount of each ticket tier is great to encourage attendees to purchase tickets at a higher level. The team working on Events has a lot of exciting new features coming, too!”
Learn more about how to create an event in this blog and download our free Event Planning Checklist to get started!
If you still have a cash donation box, you’re likely missing out on several in-person donations from people who no longer carry cash.
The Donorbox Live™ Kiosk app makes it easy to build a donation kiosk with a tablet and card reader. Collect cashless, in-person donations via cards, smartphones, and smartwatches – and never miss out again!
“You can use Live™ Kiosk in so many different ways,” Jena explained. “You can use it out in the field with volunteers, at a gala, or in your lobby – use it in a way that works for you.”
Learn more about Donorbox Live™ this blog. We also have several articles outlining the best way to use a donation kiosk, whether you want to use it as a point-of-sale system or at your next event.
The answer to staff burnout is to be more intentional about what you expect from your staff, how you hire, and how frequently you check in.
“The good news is many nonprofits are taking a humanistic approach to staffing,” Brittan shared. “Just as for-profit companies are recognizing the long-term financial consequences of not investing in their staff, nonprofits are starting to get ahead of it, too.”
Brittan expanded that pay equity – ensuring nonprofit staff members are paid enough to live where their organization operates – will be crucial moving forward.
Kara elaborated on other ways to be more intentional with your staff. “It’s so important to regularly check in with your employees and get their buy-in for new projects. Is hosting five events in two months really helping your organization if your employees are run down?”
If donors are giving to fewer nonprofits these days, how do you ensure you’re on their list?
All three of our experts agree that building strong donor relationships is the key to raising more in 2024.
“Keep your revenue-generating strategies, but place a larger emphasis on nurturing and deepening your relationships with individuals that are part of your community,” said Brittan. “Those relationships can sustain your organization when other funding sources can’t.”
Here are three key areas to keep in mind when it comes to donor relationships.
Personalization is the key to connection – with both long-term and new donors – in 2024. But Kara explained that personalizing your outreach should go beyond simply including your donors’ first names:
“Targeting is more than just segmenting your audience and changing a word or two. It’s about targeting them with personalized messaging, ask amounts, and program news that will resonate with them.”
Donorbox’s donor management tools help organizations take on this level of personalization. Use a variety of filters to sort your donor data and pull the perfect list for targeted outreach.
Plus, record both inbound and outbound donor communication so you never reach out too often – or not enough.
Being more transparent is a great way to build both stronger donor relationships and better donor trust.
“Every organization has the tools at their fingertips to be more transparent,” Jena said. “This doesn’t have to be a massive effort, but you should be communicating something to your donors and keeping them in the loop.”
Whether this is sharing your annual report or being more transparent about your funding needs, donors will appreciate your honesty – and will feel more connected to your mission.
Properly thanking your donors – and showing them the impact of their donations – will forever be an important part of fundraising
Kara explained that “a donor doesn’t care if you meet your fundraising goal. What they care about is seeing how their donation helped the community you’re serving.”
Donorbox helps with automated donation receipts that you can edit to add your messaging, stories of impact, and genuine gratitude. Find more donor recognition ideas in this blog.
A great way to build stronger relationships with your supporters is to ask them to fundraise on your behalf with a peer-to-peer fundraising campaign.
Jena expanded on this point:
“Peer-to-peer fundraising allows your supporters to take ownership of their passion for your cause. It’s engaging, and it allows them to be creative and build emotional ties with your organization. Plus, it helps get the word out!”
Peer-to-peer also helps you build up donor trust through social proof. If someone sees someone they know supporting your cause, they’re more likely to support it themselves.
With Donorbox, you can invite supporters to create their own fundraising pages where they can share their unique connection to your cause. Any donations they collect will automatically flow into your Donorbox account.
You can also allow anyone to fundraise on your behalf, the way Gamers on the Edge did for their 2023 campaign.
Launch Your Peer-to-Peer Campaign
Discover how peer-to-peer works in this blog.
No one can tell the future. But the nonprofit sector has managed to stay agile and adaptive in the face of many challenges – often leading to exciting new opportunities!
“It continues to amaze me just how resilient and adaptable nonprofits have been over the last few years,” Brittan shared. “They’ve remained passionate in the face of many unique challenges.”
2024 will bring more challenges, but also some opportunities to create better, lasting relationships with donors and discover sustainable ways to raise more.
Donorbox is here to help you every step of the way. Check out all of our features and start fundraising smarter in only four steps!
For more fundraising insight, check out the rest of our Nonprofit Blog. Subscribe to our newsletter to receive a monthly collection of blogs right to your inbox.
Lindsey spent years wearing many hats in the nonprofit world. Whether she was helping arts nonprofits with their messaging and content, planning a fundraising gala, writing an NEA grant proposal, or running a membership program with over 400 members, she learned how to navigate – and appreciate! – the fast-paced world of fundraising. Now, she loves sharing those hard-earned lessons with the Donorbox community.
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Lindsey Baker Bower