Top 6 Fundraising Trends for More Donations in 2023
This new decade has brought some interesting challenges and opportunities for nonprofits. Keeping up with fundraising trends in 2023 will ensure you don't get left behind – but it can also help you and your organization grow. Check out these six trends to see what's coming up and why it matters to you.
When the pandemic hit, we saw nonprofits pivot in extraordinary ways. Offering more online giving, online connection with donors, and compelling asks to support difficult work were all essential.
Those trends have largely continued for the last two years, and will likely continue even with our different circumstances – but there are a few specific trends to keep an eye on in 2023.
Let’s unpack these trends so you can make the most out of your fundraising in 2023!
6 Nonprofit Fundraising Trends to Watch in 2023
1. Digital wallet payments for smart giving
Cash is a thing of the past – it’s time to embrace smart payment solutions.
By 2026, it’s estimated that 60% of the world’s population will use digital wallets. In fact, the use of digital wallets will grow from 3.4 billion in 2022 to 5.2 billion in 2026.
That means it’s time to get started with digital wallets. So that you can capture those donors who are becoming comfortable with this smarter giving method.
Donorbox campaigns come enabled with UltraSwift ™ Pay which includes popular digital wallets such as Google Pay, Apple Pay, Venmo, PayPal, etc. in addition to other regular payment methods.
UltraSwift ™ Pay also eliminates the need for your donors to input their personal details as Donorbox takes it directly from the wallet they choose. This helps make your giving process 4 times faster and increase donor satisfaction.
The below image shows the digital wallet options on a Donorbox donation form. Right after donors have selected the donation amount and clicked “Next”, they’ll be given these options to give quickly. However, they can also proceed to explore other payment options like card payments, bank transfers, etc. Maya’s Hope that is using Donorbox to raise funds for its Ukraine Emergency campaign has UltraSwift ™ Pay enabled on their form and collected close to a million dollars with us.
Card readers for nonprofits are excellent ways to collect in-person donations in an increasingly cashless world. They make for secure and quick contactless payments that people are used to these days.
According to a survey run by Mastercard, 82% of people are already considering this method as a safer way to make payments. Not just that, payments with card readers are also faster and more convenient when it comes to donations at your events or venues.
Donorbox Live™ Kiosk allows you to set up an in-person contactless donation option by downloading the app to an iPad or Android tablet and pairing it with a card reader device. The best part is – this innovative app is backed by the powerful Donorbox fundraising platform!
Also, your donors can give quickly and easily in a few steps through secure and speedy transactions. They don’t even have to go online – all it requires is a few taps, swipes, or dips from their cards or smartphones!
Texting continues to be an important part of any nonprofit’s communication plan and one of the largest global fundraising trends, but 2023 sees that importance growing even larger.
The average text message open rate is 99%. That’s huge! Compare that to the average email open rate for nonprofits of roughly 27% and you’ll see why SMS communication is so important right now.
If you don’t already have one, you should find a marketing platform that helps you seamlessly start communicating with donors via text message. But also, opening a text message doesn’t guarantee that you will receive a donation. That’s where utilizing text-to-give comes in.
Donorbox Text-to-Give is a simple and potent solution for nonprofits and their donors. Simply share a campaign ID and the text-to-give number with your donors. When donors text the ID to the number, they’ll quickly get a link connecting them to the organization’s mobile-friendly donation page. They can also easily repeat the donation through text message again!
See how IFCS is encouraging supporters to text to give to their Donorbox campaign by sharing the shortcode number 801801 and the custom campaign keyword on their website.
4. Fundraising vs. inflation – analyzing donation data
Inflation plays a huge role in understanding your fundraising success. And that is why keeping an eye on it is a global fundraising trend for 2023.
In 2021 in the USA individual giving grew by 4% compared to 2020. But when inflation gets factored in, that growth actually turns into a 0.7% decrease in giving. This means that while the dollar amount was significantly higher, the dollar value was much lower.
Unfortunately, this will stick around.
In 2023, understanding how much money you need to keep your mission going when factoring in inflation will be key. After all, inflation affects not only the value of the donations you receive but also your operating costs.
Having efficient donation management software that lets you run reports to understand your organization’s fiscal health by analyzing key donor metrics is vital.
Donorbox stores and lets you manage your donor and donation data on the tool. You can also easily use and customize pre-made templates to get the information you need about your donors to make informed financial decisions about your fundraising.
A major fundraising trend for nonprofits in 2023 will be diversifying revenue streams. This year will bring more inflation and a resulting decrease in government and foundation giving.
Diversifying both contributed and earned revenue is vital to ensure the financial health of any organization. But it’s especially important for nonprofits who want to make the most out of 2023.
The key to diversifying your contributed revenue is to have a key that lets you fundraise with multiple strategies. With Donorbox, you can fundraise using multiple ways –
Customizable fundraising pages
Crowdfunding campaign pages
Donorbox Live™ Kiosk app
Having a one-stop shop to try many different kinds of fundraising can help you diversify your revenue so you aren’t affected by the economic downturn. Get Started with Donorbox in just 4 simple steps – read our detailed guide or watch this tutorial to start fundraising right away!
Donors are more empowered than ever when it comes to their philanthropy. They have endless choices of organizations to support, tons of giving options, and deeper connections with the organizations they give to.
With the economic projections remaining gloomy for 2023, donors want more control over their giving to account for that uncertainty. This will make them more comfortable committing to things like recurring donations or memberships.
You can achieve this in a few ways –
Add relevant recurring donation intervals to your donation form based on your research of the current donation data, so donors feel comfortable choosing.
Research existing donor data and include a wide range of giving amounts as well as a custom giving option in your donation form.
Add a donation designation option to your donation form, letting donors direct their donations to a specific fund.
Let donors log in to their own donor accounts and manage their donation plans.
Let your nonprofit members get access to their membership plans – upgrade or cancel at any time!
Automatically send event payment receipts to ticket purchasers, which they can use to file tax forms.
With Donorbox, you can easily activate all the above options for successful fundraising in 2023. Here’s an example of a great donation form created this year to accept online donations while also taking into account the giving experience of donors.
Amp up Fundraising in 2023
Like any year, this one will bring new challenges and exciting new opportunities.
Although we need to keep an eye on inflation and make sure we’re taking care of our organizations’ finances, we should also find exciting new ways to connect with donors through smart events and personalized outreach.
Also, we should never forget the value of important tools, like digital wallets and texting. Donors in 2023 will be looking for streamlined and easy giving that they have more say over.
When you’re ready to optimize your 2023 fundraising, Donorbox is here to help. Donorbox has powerful yet simple-to-use tools that help you collect, manage, and analyze donations to streamline your contributed income – and so much more. Sign up to get started today!
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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.