Giving Trends for Nonprofit in 2019

Posted on April 26, 2019

2017 was the year that witnessed peak giving and the positive trend in giving continued in 2018 as well (2018 recording a 4.1% increase over 2017, according to Nonprofit fundraising statistics 2019), here you can find the Top 10 most generous donors of 2017 in the USA. As we tread into 2019, factors such as a slowdown in the economy, tax-reforms, and technological advancements are expected to impact the nonprofit sector. Various entities of the nonprofit sector need to brace themselves for these factors and come up with innovative fundraising solutions.

Factors that will impact US philanthropy in 2019:

Economic factors:

Trends indicate a slowdown in the US economy. This will directly affect philanthropy, especially of the smaller givers. It will also leave its footprint on corporate sponsorship for nonprofits.

Tax Reforms

The fact that exemptions are eliminated from personal tax is expected to impact overall giving.

Although less than 10% of US donors attribute tax write-off as the main reason for giving to charity, 42% say that they will contribute less in case of lower tax breaks. The donors are still not clear about the actual implications of the tax changes on their giving. These will unfold as the year progresses.

On a positive note, 40% of US donors are unaffected by the tax reforms as per a recent survey!

Corporate Sponsorship

In 2018, many large corporations participated in many philanthropic activities with spending expected in the range of a staggering $24.2 billion in North America alone! (Source: Projections IEG). This is a positive trend that nonprofits can leverage.

Corporations tend to sponsor charities with whom their mission is aligned. Corporate sponsorship could be through employee-driven fundraising events or volunteering or product donations for auctions, etc.

Growth of Online Giving

Online giving has increased by 12.1% over 2018! (Source: Nonprofit Fundraising Statistics 2019)

Social Media

Social Media has emerged as a powerful influencer of donors. 39% of millennials and 33% of Gen X donors are inspired by social media for contributing to charities. (Source: Nonprofits Fundraising Statistics 2019)

These are some of the major factors that have to be borne in mind by nonprofits while strategizing their fundraising efforts in 2019. Know what charities can do in the era of social media as it has become a powerful tool in today’s digital society – especially for nonprofits and charities.

Emerging trends in giving for charity in 2019:

Collaboration

2019 will witness the increased collaboration between public, private, and Government bodies in solving social issues. In fact, the partnerships between various entities will be at a cross-nation level to combat issues such as climate change, etc. Nonprofits can look for support from corporate and government bodies when they are raising funds for such large issues.

Transparency

There is an increased demand for transparency by nonprofits. Donors need to have complete information as to how their funds are being used.

Growing Concern over Cybersecurity

Nonprofits have volumes of data stored that is shared and analyzed. With a rise in cybercrimes globally, the data is vulnerable to cyber-attacks. There is a growing concern over securing the data from hackers. Nonprofits are tying up with technology partners to prevent data breaches.

Mobile Fundraising

As mobility steps ahead to take the center stage in all areas of our lives, fundraising is not left out of this trend. The number of fundraising transactions completed through mobile devices increased by 50% during the last year! And, this trend is expected to continue.

Personalized Giving

Thanks to social media, donors now have an opportunity to connect directly with a charity! They can type out a heartfelt message and donate directly through the social media channel.

Technology

Why technology is a must have for nonprofits? Emerging technologies such as Artificial intelligence, Augmented Reality, and Virtual Reality will have a role to play. One of the things that is slowly making a foray in the world of nonprofits is chatbots which offer an interactive platform so that the donor can chat with the bot about the charity.

Most recent need for nonprofits?

In the light of the uncertainties due to implications of tax changes and other factors influencing Giving in 2019, nonprofits need to have a goal-oriented strategy. They need to focus on the donor demographics for fundraising initiatives.

Organizing fundraising events

According to Nonprofit fundraising statistics 2019, 56% of donors regularly attend fundraising events. Fundraising events are a traditional method of engagement with donors and are still popular if organizes well.

Fundraising events could be networking events, charity auctions, training events, galas, etc.

The purpose of a fundraiser is to raise awareness about a cause and build a support group for the cause.

Nonprofits can encourage volunteers to join in organizing the event. Data shows that volunteering for nonprofit events motivates donating for the cause.

Nonprofits need to get creative and come up with innovative fundraising event ideas for better engagement.

Corporate Sponsorship

The top 10 most generous corporations donate over $2 billion annually to nonprofits, most of it through matching gift programs. However, $6-$10 billion in matching gifts go unclaimed every year! (Source: Nonprofit fundraising statistics 2019)

As noted, this is a major missed opportunity. The fact is that employees are willing to donate if they know that their employers can match it. At the same time, employers are willing to offer their employees these options as a part of their giving endeavors.

Nonprofits need to focus on this aspect of corporate sponsorship for their advantage.

Online Donations

Online fundraising has been on a constant rise in the last few years. In fact, in 2018, Online Giving revenues were up by 23%. (Source: Nonprofit Fundraising Statistics 2019)

Online recurring donations are growing in popularity among donors with online monthly revenue increasing by 40%! (Source: Nonprofit Fundraising Statistics 2019)

Another fact to be noted, more than half of the nonprofit website traffic came from mobile devices.

Charity auctions are organized online as well! With bidding options available on through mobile applications, the number of participants in the auction is likely to increase.

Therefore, it is time that Nonprofits took mobile device users seriously and optimized online donations through mobile applications.

Marketing

2019 will warrant nonprofits to run that extra mile as far as the marketing efforts are concerned. While the traditional marketing campaigns will be required, it is innovative digital marketing that is the current need.

Nonprofits will need to promote their events extensively across various channels. Blogging, posting relevant content on Twitter, Facebook, and LinkedIn, etc. will help increase the outreach.

Email marketing is another personalized marketing approach that has been found to be very effective for nonprofits.

Encourage Monthly Giving

The tax changes and the economic scenario might discourage small donations. The donors might be inclined to donate in larger chunks every other or every third year. This will enable them to itemize in their giving years and avail the standard deduction in other years.

Nonprofits can encourage monthly giving in small amounts through mobile, etc. This will ensure a regular inflow to the nonprofit while the donors will not feel the pinch due to the donation.

Wrapping Up:

2019 brings with it a number of uncertainties! Only time will tell how donors react to these uncertainties. Nonprofits need to be proactive instead of responding to donors’ reactions. They need to update themselves with the emerging trends and strategize their fundraising to meet their objectives.

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