Here are some of the biggest philanthropy trends to watch out for this year, along with tips on how to leverage the trends to strengthen your fundraising strategies.
Cryptocurrency is a difficult concept for nonprofit organizations to grasp. The product itself is volatile, the underlying technology is perplexing, and new cryptocurrencies are developed on a regular basis.
When crypto donations arrive, nonprofits must decide whether to sell right away, hold indefinitely, or diversify a portion of the donation. Each strategy has its own worth.
To progress toward new ways of doing good, nonprofits must continue to balance the benefits and risks of cryptocurrencies. Read more about the basics of cryptocurrency here.
NEXT GENERATION GIVING
The next-generation, particularly millennials and Gen-Zers are reshaping the donor landscape and upending nonprofit organizational standards.
Both generations were told as children that they could make a difference in the world, and now that they are adults, they’re putting that belief into action. These generations regard their time, and their money as equals when it comes to supporting organizations they care about. Understanding the contrasts between what inspires baby boomers to serve — and how they like to engage — and millennials or Gen-Zers is critical.
Here are some of the ways nonprofits can meet the expectations of a new generation:
- Flexibility and choice in giving modes
- Personalized giving experiences
- Opportunities for shared experiences with other supporters
TECHNOLOGY FOR SOCIAL GOOD
Nonprofits face the unique difficulty of gathering information from a range of sources, including communities, employees, volunteers, and donors. At the same time, organizations have been held back by limited funds and data expertise.
Nonprofits have started taking advantage of the rise of data philanthropy, predictive analytics, and machine learning to measure impact and extend their reach, thanks to the availability of innovative technologies and new partnerships.
Using technology, nonprofits can capture every touch and build a powerful understanding of their constituencies, including their history, location, demographics, unique interests and more. Analytics can be used to uncover new relationships that can help to better understand giving trends.
Technology can also help to personalize the giving experience. Acknowledging the donor’s interests and communication preferences to tailor unique messages to them about donor impact and upcoming engagement opportunities helps develop a stronger relationship with the donor. Check out StratusLIVE's technology solutions for nonprofit organizations here.
INCREASED DONOR PRIVACY
In 2021, Apple launched its much talked about Mail Privacy Protection Policy. Before the policy, nonprofits could gather engagement data about their email campaigns by inserting hidden pixels into the email body. When emails are opened and these pixels are loaded, the email host can see that the email was opened, the device type that was used to open it, and the recipient's IP (Internet Protocol) address, which provides an estimated location usually limited to the recipient's city. Once Apple’s mail privacy protection policy took effect, email marketers could no longer track these data points and came up against a few other challenges.
Nonprofits are now having to track alternative email metrics to assess campaign results such as:
- Click rate- The amount of clicks you receive inside your email content as a percentage of the total number of emails sent and emails opened is referred to as the click rate.
- Unsubscribe rate- You may better understand how many contacts no longer wish to receive your communications by monitoring the unsubscribe rate, as well as see if there's a link between specific content categories and unsubscribes.
- Conversion Rate- The percentage of recipients who clicked on a link and completed your desired action, such as a contribution or CTA (call to action), is known as the conversion rate. It provides you with a broad overview of your campaign's performance.
Nonprofits are also adapting by cleaning out bounced or unsubscribed email addresses leaving them with an engaged audience, which makes end-of-year fundraising campaigns function much more smoothly.
Whether we like it or not, the world is changing quickly, and technological advancements will have an impact on philanthropy. It will almost certainly yield positive outcomes but will also provide difficulties. We should expect an acceleration of advances in this field as a new generation of tech entrepreneurs and companies become involved in philanthropy.