6 Nonprofit Fundraising Trends to Utilize in 2023
Now that we’re comfortably into 2023, and the end-of-year solicitation rush and follow-up stewardship season is past us, let’s take some time and consider the 2023 nonprofit fundraising trends. So far, we know a few trends from 2022 and prior that are sticking. Below are the biggest noticeable trends, along with Strat Lab’s thoughts.
In-person fundraising events were the norm before the COVID-19 pandemic. However, with the need for social distancing, many nonprofits shifted to virtual fundraising events. Virtual events are expected to remain popular in 2023 due to their flexibility and cost-effectiveness. Virtual events have their benefits and their limitations. These events allow supporters to participate from anywhere and are not confined by geographical location, allowing greater and more convenient participation. Virtual events also allow nonprofits to cut costs on venue rentals, catering, and transportation—something quite important for many small nonprofits struggling to regain financial losses. Virtual events also face major challenges, especially in raising funds. Virtual doesn’t allow for real connection, therefore, losing some oomph and ability to raise significant funds. Virtual is fine for large school programming or information sharing, but not for meaningful fundraising. Our recommendation is to keep important cultivation and fundraising events in person.
Collaborations and Partnerships
Collaborating with other nonprofits, corporations, or individuals can help nonprofits expand their reach and increase their fundraising efforts. In 2023, nonprofits will likely continue to seek collaborations and partnerships to pool resources and expertise. Collaborations and partnerships can be through joint fundraising events, resource-sharing, or co-branding campaigns. Such partnerships can help nonprofits tap into new audiences, leverage each other’s strengths, and maximize their impact. Strat Lab’s agrees that collaborations and partnerships are worth embracing, especially when used to enhance fundraising.
Artificial intelligence (AI) is already used in various industries to improve efficiency, reduce costs, and enhance customer experiences. In 2023, nonprofits are expected to adopt AI in their fundraising efforts to enhance their donor experiences. AI can be used to analyze donor data, identify patterns, and make personalized recommendations. AI can also be used to automate processes such as donation processing and thank-you notes. By using AI, nonprofits can better understand their donors, tailor their messaging, and create more targeted fundraising campaigns. While a helpful tool, and a low-budget opportunity to support writing projects, Strat Labs urges nonprofits to think about how and why they’re using AI. Human interaction remains the strongest tool for raising money, especially for major gifts.
Sustainability is a growing concern among consumers, corporations, and nonprofits. In 2023, nonprofits are expected to adopt more sustainable fundraising practices. Sustainable fundraising involves using environmentally friendly practices in fundraising efforts, such as reducing paper waste, using eco-friendly materials, and reducing carbon emissions. Nonprofits can also adopt sustainable fundraising practices by using renewable energy sources, reducing energy consumption, and sourcing locally produced goods. By adopting sustainable fundraising practices, nonprofits can appeal to eco-conscious donors and reduce their environmental impact. Sustainability is HUGE and here to stay. It’s also ethical and the right thing to do. Strat Labs loves sustainable fundraising, and we’re urging our clients to embrace this as standard practice, not a trend.
Peer-to-peer fundraising is a popular fundraising model where supporters create their fundraising pages and ask their network to donate. In 2023, nonprofits are expected to adopt peer-to-peer fundraising to reach new donors and increase their fundraising efforts. Peer-to-peer fundraising allows supporters to be advocates for the nonprofit’s mission and share their personal connection to the cause. This model also allows nonprofits to expand their reach beyond their existing donor base and tap into new networks. We love peer-to-peer fundraising! It’s a powerful tool for instilling confidence in your organization. It’s also a cost-effective way to raise philanthropy. This is another one that should be standard practice–not a trend.
Influencer fundraising is a new trend involving partnering with social media influencers to promote a nonprofit’s mission and fundraising efforts. In 2023, nonprofits are expected to use influencer fundraising to reach younger audiences and create viral fundraising campaigns. Influencer fundraising can be done through social media platforms such as Instagram, TikTok, and YouTube. By partnering with influencers, nonprofits can leverage their large following and create engaging content that inspires donations. If you have an influencer, who is willing to help you raise funds, embrace them! This is a quick, easy, and powerful tool to crowd-source funding from individuals who wouldn’t typically donate to your organization.
If you’re in fundraising or nonprofit management, get in touch with Strat Labs and let us know if you’re experiencing these trends. We’d love to chat with you!