As a nonprofit professional, it’s important to stay up-to-date with 2022 fundraising trends, so that you can leverage and adapt to them. These past two years have taught us that technology and convenience are rapidly taking priority, and we can anticipate that these modern fundraising trends will continue to prevail in 2022. By giving donors the choice of how they want to be engaged and how they can donate, we can make them feel understood and fulfilled during the donation process.
Let’s take a further look at some of the up-and-coming 2022 fundraising trends.
1. An increase in digital and online donations
Throughout the pandemic, we’ve started to see a massive increase of services that we can access from a click of a button. Not only has this overall trend impacted the way we attend meetings and order our takeout, but it has also affected the way donors are choosing to donate. By incorporating this added convenience, we can appeal to those who are technology-focused and make it easier than ever to give.
The cryptocurrency market has generated substantial new wealth. Crypto holders prefer to donate in their cryptocurrencies, rather than converting it to cash. We’ve recently seen a rise of cryptocurrency being integrated into our everyday lives, such as physical Bitcoin ATMs and stores accepting cryptocurrency as a payment method. Naturally, this is trickling over to the nonprofit sector through a whopping 583% increase in cryptocurrency donations in 2021, compared to 2020.
Digital wallets, such as Apple Pay and Google Pay, and payment apps, such as Paypal and Venmo, have been making significant impacts on the way we spend our money. During the pandemic, we began to shy away from physical cash. Instead, cashless options have kept the exchange of money going. Many nonprofit organizations have turned towards offering tap-to-pay options at physical fundraising locations, as well as incorporating digital wallets and payment apps as a method to increase engagement and convenience.
In this day and age, not having cash in your physical wallet is no longer a barrier to charitable giving.
2. The impact of inflation on the nonprofit sector
Since the beginning of the pandemic, inflation in both Canada and the United States has been steadily increasing to exceed pre-pandemic inflation levels. This rapid boost in inflation is mainly attributed to disruptions in the supply chain and staffing shortages. This has lowered the supply of goods and services, while demand remains steady.
The nonprofit sector will feel the impact of inflation through rising operational costs, diminishing value of donations, and a rise in poverty. Considering that high inflation is expected to persist until at least 2024, it’s important for nonprofits to plan ahead and take these additional costs into consideration.
Fostering a strong donor relationship is key for your organization’s continued success — especially in challenging and uncertain times. Our planned giving programs uncover your top giving prospects, while offering a multi-channel outreach approach. You can achieve your nonprofit’s goals through our donor-centric tailored programs.
3. A generational shift to younger donors
As Millennials and Gen Z start to make a shift to the largest population demographic, we’re beginning to see a significant upturn in the amount of younger donors.
Donors in these generations are more concerned about social issues. Building a relationship with this generation could involve telling an inspirational story, or providing them with the specific impact that their donation or participation will make on your cause. Visual storytelling is an effective way to create memorable and impactful engagement with these generations.
Millennials and Gen Z donors are also receptive to social media and peer-to-peer fundraising. Staying connected with their online networks is incorporated into their everyday lives. A consistent and personable social media presence is a great way to increase donor engagement for this demographic. Along with the upward trend of technology and convenience, our need to stay connected is another trend that’s anticipated to stay in 2022 and beyond.
4. Greater demand for workplace and employee giving
Many employees and job-seekers are beginning to pursue jobs with companies that reflect their own values and ideals. Organizations that support employee giving will see higher levels of job satisfaction and employee pride, as well as brand elevation in the eyes of the consumer.
Companies can encourage workplace and employee giving by providing incentives such as donation matches, volunteering time off, automatic payroll deductions, and seasonal campaigns. Nonprofit organizations have the opportunity to partner with companies that share the same values and beliefs, which could attract new donors and spread awareness for your nonprofit.
2022 Fundraising Trends Summarized:
There’s strong evidence that the fundraising trends that we’ve seen during the past two years of the pandemic will only continue to be more prevalent in the charitable giving space. It’s important to start shifting towards digital donations, planning for inflation, marketing to younger generations, and incorporating workplace giving. These trends will give nonprofit organizations the chance to engage and connect with more donors.
Be sure to keep these fundraising trends in mind when creating your 2022 fundraising strategy. To learn more about how Legacy Leaders can help build a fundraising strategy for your nonprofit, click here.