By James Watkins, Senior Fundraising Strategist at ntegrity
Teams managing high volume fundraising programs have navigated a few challenging years recently. Devastating bushfires in 2019/2020, a string of COVID lockdowns, conflict in Syria, Russia’s invasion of Ukraine, and the RBA raising the country’s cash rate for the first time in over 11 years, to name just a handful of significant events.
As expected, the 2022 Benchmarking Project Essentials Report highlighted how fundraising programs responded to this evolving landscape. In 2020, for the first time ever, Digital channels drove more single gift income than Direct Mail.
In 2022, Digital overtook Direct Mail for the first time as the highest source of new Single Givers. Digital fundraising provided 40% of new Single Givers and another 36% via Direct Mail activity.
Interestingly a variety of participating charities drove this strong growth in digital fundraising including UNICEF, Foodbank NSW & ACT, The National Breast Cancer Foundation and Lifeline. This diversity of cause types suggests that external factors may not have been the only reason why Digital income grew by 66% between 2018 – 2022.
The continued rise of digital givers
Many charities have recognised that the preferences and behaviours of donors and prospects are evolving. Millennials and Gen Z are more digitally engaged than their predecessors. They’re the ones scrolling through social media feeds, engaging with online content, and making transactions with a simple tap on their smartphones.
Digging into the benchmarks it’s clear how the channel mix we invest in has an impact on the different supporter demographics we engage with. During 2018, the average age of a single donor acquired via digital channels was 48, compared to 71 years old for the average first-time donor acquired via direct mail.
Digital fundraising is providing valuable real-time reporting and insights into donor behaviour. These insights allow teams to create targeted campaigns and optimise media, audiences and creative more frequently which is driving greater performance.
The digital ecosystem is creating diverse engagement opportunities with personalised email journeys, interactive content, videos, and real-time updates, allowing supporters to feel connected to the causes they are interested in supporting.
What every fundraiser should be focusing on: Nine key ingredients to elevating your digital fundraising
Regardless of your organisation’s current position in its digital evolution, these nine ingredients are crucial for advancing your fundraising initiatives:
Search Engine Optimisation: Laying a foundation for ongoing success
The journey to digital fundraising success begins with ensuring your organisation’s online presence is easily discoverable. Search Engine Optimization (SEO) plays a pivotal role by ensuring you’re very visible when donors are actively searching for the topics your organisation covers. Optimise your website with relevant keywords, meta tags, and quality content that aligns with your cause and consider the journey from each page to either a lead or a donation.
Search Engine Management: Targeted donor intent for maximum impact
Search Engine Marketing (SEM) complements SEO by allowing you to reach potential donors through paid advertising. Use platforms like Google Ads to create highly targeted campaigns. Craft compelling ad copy and ensure that your landing pages are optimised for conversions. SEM provides a direct route to individuals actively searching for causes to support.
Harness the power of paid social media
While search channels are excellent for pulling the donor towards you based on their intent, social media is a powerful tool for driving potential donors towards your cause through a strong case for support. Invest in paid social media advertising to target specific demographics, engage with your audience, and promote your regular giving program. Platforms like Facebook and Instagram offer robust targeting options, and sophisticated artificial intelligence that constantly learns over time, allowing you to connect with cause aligned potential new donors.
Audience segmentation and personalisation
One size does not fit all in digital fundraising. Leverage data analytics to segment your donors and prospects into distinct groups based on their connection, motivations, giving history, and engagement types. Tailor your fundraising appeals and messaging to resonate with different segments and include name, asks, and interest personalisation to foster deeper connection with donors.
Leverage the strength of storytelling
Powerful storytelling is just as critical for digital fundraising as it has been for direct mail programs. Craft compelling narratives that evoke emotions and connect donors to your mission on a personal level. Make sure you balance need with impact by sharing stories of individuals whose lives have been positively impacted by your organisation’s work.
Data-driven decision-making
Data is your secret weapon in the digital fundraising arena. Continually track and analyse key performance indicators (KPIs) such as click-through rates, conversion rates, and second gift or donor retention rates. Use these insights to refine your strategies and re-allocate resources effectively. Create an A/B testing matrix to help track and measure results over time and use historical learnings to incrementally optimise campaign performance.
Campaign page optimisations: Small improvements can have big payoffs
Your campaign pages are the heart of your digital fundraising efforts. There is very low patience for poor experience, so ensure they are well-designed, donor-centric, and optimised for conversions. Implement clear and compelling value propositions and calls-to-action (CTAs) and provide tangible information about your cause and the impact of donations. Mobile optimisation is crucial, with 40% or more of your supporter traffic likely to be on smartphones.
Deepen engagement and show appreciation through onboarding and nurturing
Many fundraisers know that securing a first donation is just the beginning. Focus on supporter onboarding, or welcome, and nurturing to transform one-time donors into loyal givers to increase lifetime value and grow sustainable fundraising programs. Develop personalised thank-you journeys, share regular updates on your organisation’s impact, and offer opportunities for deeper engagement through values aligned content aligned to unique audience interests and motivations. Check out the International Rescue Committee for some great email content examples!
Build trust through transparency
In an era marked by scepticism, transparency is your most valuable asset. As KPMG’s 2021 Disruptive Philanthropists report indicates, 71 percent of philanthropists place measurable impact at the top of the list when selecting causes to support. Use a range of digital and social channels to effectively communicate how donor funds are being used and the impact they’ve made. Share success stories, impact reports, videos and testimonials to build trust and demonstrate how your cause is delivering on the promises made. Preemptive Love presents their impact transparently through a dynamic and mobile responsive webpage, clearly showcasing their scale and program outcomes.
The ongoing digital revolution is providing new avenues for reaching valuable donors more efficiently and offering real-time performance insights. However, adapting to digital and social channels requires a strategic shift and a commitment to building best practice techniques that resonate with digital audiences.
By embracing digital fundraising while still recognising the value of traditional methods, nonprofit organisations can thrive in this new era and continue to make a meaningful impact on the causes they champion.
If you’d like to discuss digital fundraising further, please don’t hesitate to reach out to James at james.watkins@ntegrity.com.au