6 Fundraising Trends to Watch in 2024
Posted by [email protected] on Apr. 22, 2024 / Technology / Subscribe 0
From the growing importance of authentic donor connection to the race for AI, fundraisers are gearing up to adjust their strategies to reach goals.
In this article, we explore the top fundraising trends to watch for in 2024—and the strategies to take advantage of them—as identified by leading industry experts.
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Diversifying donor engagement
One trend emerging in the new year is the shift from reliance on big donors to mid-level and monthly donors, with a keen focus on next-gen preferences.
Dana Snyder, Host of Missions to Movements, highlights the importance of diversifying donor engagement:
“There's been a lot of conversation about the shift of giving within the nonprofit sector. Earlier this year, I had a podcast conversation with Woodrow Rosenbaum, Chief Data Officer at GivingTuesday about what the data was telling us and how it should inform our donor relations. The data highlighted the importance of diversifying donor engagement and the risks entailed in relying too heavily on big donors. Organizations should focus on how to amplify their monthly donor efforts.”
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Relationship-centric fundraising
A trend that’s undoubtedly poised to continue and grow in its importance to fundraising strategies is relationship-centric fundraising. Genuine connections, hyper-personalization, and prioritizing donor relationships over transactions will continue to play a key role for fundraising in 2024.
Sabrina Walker-Hernandez, President & CEO, Supporting World Hope, says that a significant shift is underway, one that emphasizes the power of connection.
“It's not about the size of the group; it's about the profound impact you can create within it. By surprising them, you might just discover delightful surprises yourself.”
Walker-Hernandez says it's time to redefine fundraising, focusing teams and boards on relationships over transactions.
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Innovation and continuous donor engagement
While attracting new donors has always been a key measure of success to fundraising organizations, donor retention is emerging as crucial for sustained success.
Lynne Wester, Principal & Founder, The Donor Relations Group, points to cultivating long-term donor relationships through authentic connection and appreciation to build a strong donor retention strategy.
“Effective communication plays a central role, with personalized updates on how their contributions are making a tangible impact,” says Wester. “Nonprofits that actively engage donors beyond soliciting contributions are more likely to retain their supporters.”
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Responsible adoption of AI in fundraising
With the exponential growth of AI in fundraising processes, responsible adoption will play a key role in the year ahead.
Mallory Erickson, Fundraising Consultant & Podcast Host talks about this fundraising trend and cautions against blind adoption of AI integration, advocating for identifying organizational challenges before implementing a solution.
“As the AI market becomes saturated with technology vying for a piece of the AI scene, it is crucial to avoid treating AI as a cure for all fundraising challenges,” says Erickson.
Nonprofit leaders should focus on nailing down and solving their main issues, and AI might just be one piece of that puzzle.
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Personalize with the power of AI
Fundraisers will leverage AI technologies to reach donors at scale and in more effective ways through personalization, data analysis, and enhancing the overall donor experience.
“By leveraging AI, organizations are now able to analyze vast amounts of donor data – including past donation history, communication preferences, and engagement patterns – to tailor their fundraising appeals and communications,” says Josh Hirsch, Senior Strategist at Soukup Solutions.
The result is a more engaging, relevant, and impactful communication strategy that not only captures the attention of potential donors but also strengthens the bond with existing supporters.”
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Generative AI in annual giving
Potential applications of AI for annual giving teams such as content creation, data analysis and segmentation are also trending up in 2024.
Julie Knight, Ph.D., Executive Director of Annual Giving, Carnegie Mellon University, expands upon this trend:
“In the annual giving space, there are multiple use scenarios ranging from content creation to smart segmentation, soliciting donors with personalization at scale.”
Knight emphasizes that with all AI usage, it’s always important to consider data security and proprietary data within organizational and fundraising processes.
Fundraising trends for success in 2024
As we step into 2024, fundraisers will be faced with new challenges—economic uncertainty, global and environmental turmoil and evolving donor preferences will force teams to make changes to long standing processes and face tough realities.
Conversely, 2024 will also present plentiful opportunities to make an impact through exciting new trends and technologies that foster community, build authentic relationships, and do more good.
To see how other organizations are embracing trends, technology and innovations to drive fundraising success in 2024, download our donor engagement benchmark report, which features insights from 160+ fundraising leaders.
Gravyty empowers organizations to deliver best-in-class digital giving strategies, build thriving communities and fundraise more effectively. Learn more at gravyty.com.
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