Nonprofit Fundraising Trends for 2024: What to Expect During an Election Year
The election cycle impacts nonprofit fundraising & charitable giving across the board, but nonprofits deal with a more complex landscape than usual as we enter the second half of 2024. Reflecting on the trends observed in 2023 can provide insights into what lies ahead.
2023 Fundraising Report/Results
The fundraising outcomes of 2023 have set a precedent for 2024. Many nonprofits experienced shifts in donor behavior influenced by economic conditions and societal trends, and 2024 adds the election cycle and its widespread impact on donors, public sentiment, the economy, and how donors interact with content in a politically charged and saturated online landscape.
Fundraising Projections
Looking forward, projections for 2024 indicate a cautious optimism among nonprofits, but challenges such as inflation and shifting donor trust continue to loom large.
Factors Influencing Fundraising Insights
Several critical factors will influence nonprofit fundraising strategies in 2024:
Inflation
Rising inflation rates and a higher cost of living have impacted the disposable income available for charitable donations, especially in middle-income households, prompting nonprofits to adjust their fundraising targets and approaches accordingly.
Trust in Nonprofits
Maintaining and rebuilding trust remains a priority, with transparency and accountability becoming central to donor relations. Many donors are conducting more thorough research into what their funding is supporting ideologically and politically and choosing their donations to align with their values or political affiliations. In this research, donors may look at a nonprofit’s partnerships, sponsorships, major funders, activities, populations served, board composition, leadership, and financial activity. Make every effort to ensure your nonprofit is transparent about its activities, impact, partnerships, and financials to establish trust with past, current, and potential donors.
In addition, the rising prevalence of misinformation and misrepresentation online can make potential donors wary, and some may want to spend less time fact-checking or doing in-depth research. Make sure you include sources for stats and information and that your ads, social posts, and donation landing pages are clear, concise, and easy to understand. This is not the time for click-bait type headlines or clever messaging that may appear disingenuous.
Technology
Advancements in technology offer new opportunities for engagement and efficiency in fundraising efforts, from AI-driven strategies to enhanced digital platforms. These advances have made it easier for donors to give and share their donation activity. Encourage your donors to share their support for your organization and links to donate quickly and easily.
Election Year/Political Donations
Political fundraising can overshadow charitable giving during an election year as donors allocate resources to support political causes and candidates. Learn some helpful do’s and don’ts for fundraising during an election year.
Demographic Shifts in Charitable Giving
Understanding demographic trends is crucial for nonprofits aiming to tailor their outreach efforts effectively:
Generational Giving
Distinct preferences in giving behavior occur across different generations, with Millennials and Gen Z increasingly shaping philanthropic trends.
Millennials
Millennials tend to value impact and transparency, often preferring to engage with causes aligned with their personal values.
Gen Z
Digital natives who prioritize social justice and environmental sustainability, Gen Z individuals are influencing fundraising through social media and online platforms.
Diversity, Equity, and Inclusion in Giving
There is a growing emphasis on DEI principles in philanthropy, which influence donor choices and nonprofit strategies. Be clear about your nonprofit’s stance on DEI and your organizational efforts to improve DEI in your mission and within your teams.
Online & Digital Giving/Fundraising
The digital landscape continues to evolve, presenting nonprofits with unprecedented opportunities for growth. Online and digital fundraising changes as technology advances and donors adapt.
Online Giving Platforms & Tools
Robust online and social media platforms and tools are essential for nonprofits looking to expand their donor base and streamline donation processes. Learn about best practices for nonprofit social media to engage your audience, make an impact, and increase charitable giving.
AI Fundraising
Artificial intelligence revolutionizes fundraising strategies, offering predictive analytics and personalized donor interactions. As a newer technology, many are hesitant to use AI for fundraising efforts, but it can improve efficiencies, help refine your audiences, and increase giving.
Nonprofit Fundraising vs. Political Fundraising
Contrasting nonprofit fundraising with political fundraising highlights significant differences in goals, strategies, and regulatory environments, each tailored to their distinct purposes and operational contexts.
Political Fundraising & Super Pacs
Political fundraising supports political candidates, influences policy decisions, and promotes specific political agendas.
Purpose & Goals
Political fundraising is geared toward financing electoral campaigns, advocacy efforts, and lobbying activities. The primary goals are to secure political power, influence public opinion, and achieve legislative outcomes aligned with the candidate’s or organization’s platform.
Regulatory Environment
Political fundraising is subject to strict regulations under campaign finance laws. These regulations govern contribution limits, disclosure requirements, and restrictions on corporate and foreign donations to ensure transparency and prevent corruption.
Nonprofit Fundraising & Charitable Giving
In contrast, nonprofit fundraising is primarily driven by the mission to support social causes, community initiatives, and humanitarian efforts.
Challenges of Fundraising During an Election Year
Nonprofits face challenges in maintaining donor engagement and fundraising momentum amidst competing political campaigns.
- Donor Motivations: Nonprofit donors are often motivated by altruism and social responsibility, whereas political donors may be driven by ideological alignment, self-interest, or strategic objectives. However, as previously mentioned, nonprofits can feel the impact of ideological campaigning, as donors may be aligning their donations along party lines or supporting talking points.
- Regulatory Complexity: While both sectors face regulatory oversight, political fundraising is subject to more stringent rules due to the potential for undue influence and corruption in the political process. Nonprofits must be careful not to overstep or participate in political campaigning in ways that go against regulations and risk non-profit status.
- Longevity and Sustainability vs. Short-term Fundraising: Nonprofits strive for long-term sustainability and stability in funding to support ongoing programs, whereas political fundraising is cyclical, tied to election cycles, and can fluctuate based on political dynamics. With a significant election looming, the donation asks from political campaigns can fatigue an audience that is facing solicitation on every platform and in their day-to-day lives. Some donors choose to support candidates and campaigns over charities or allocate less to charitable giving because their donations are split. Nonprofits must compete for ad space, social media impact, followers, and donations against campaigns that often have larger budgets and more urgent messaging.
- Public Perception: Nonprofits are generally viewed favorably for their contributions to society, whereas political fundraising can be scrutinized for its influence on policy decisions and governances. However, when politics are heavily influencing tone and conversations online, nonprofits can feel the impact of the tone shift and donor sentiment.
Future of Charitable Giving & Nonprofit Fundraising
Looking ahead, the future of charitable giving is intertwined with technological advancements, demographic shifts, and evolving donor expectations. Nonprofits must adapt by leveraging innovation and fostering meaningful connections with donors.
Do not be discouraged by shorter-term campaigns and political cycles. Instead, get creative with strategy, use impactful, authentic messaging, and continue to nurture your supporters while trying to gain new donors.
While 2024 presents challenges for nonprofits amidst an election year, it also offers opportunities for innovation and growth in fundraising practices. By understanding these trends and adapting strategically, nonprofits can navigate the complexities and continue making a positive impact on society.
For more insights on effective fundraising strategies, read our nonprofit marketing blog. If you want more hands-on help to reach donors, explore our nonprofit marketing services.