Donor Participation Project

Giving Tuesday participation surged in 2020 but declined again in 2021 and 2022, according to data from Giving Tuesday’s chief data officer Woodrow Rosenbaum. While 37 million people donated over $3 billion on Giving Tuesday in 2022, Rosenbaum sees worrying trends that nonprofits must address to boost donor participation long-term.

Rosenbaum found giving sentiment remains strong, with most people highly motivated to support causes and communities they care about. However, nonprofits are failing to tap into this motivation with broad, grassroots engagement. Instead, the sector relies increasingly on a shrinking pool of large donors, putting fundraising at risk in times of economic uncertainty.

To reverse course, nonprofits must expand engagement beyond the usual “giving season.”

Rosenbaum urges taking action now to cultivate diverse, year-round support. This means employing multichannel outreach on urgent issues, not just end-of-year asks. Matching gifts, peer-to-peer campaigns and social media show high returns on Giving Tuesday for activating new and existing donors.

Rosenbaum also advises against viewing different giving modes as competitive. Donors give in many ways, and nonprofits should provide opportunities for people to have the most impact. Someone giving to a mutual aid fund, for example, is also more likely to give to nonprofits. Partnerships and less transactional asks can better match how donors prefer to support causes.

For nonprofits seeking to get involved in Giving Tuesday’s efforts to boost donor participation, Rosenbaum recommends joining working groups to help develop and test new strategies. By providing data and recommendations, Giving Tuesday aims to scale interventions that prove most effective at reversing long-term trends.

To avoid a “nonprofit recession,” Rosenbaum urgently calls on organizations to start building grassroots support now. By engaging people year-round in the ways they want to give, nonprofits can ensure they enter end-of-year fundraising with a solid donor base to activate. The desire to make a difference is there, waiting for nonprofits to tap into it. Overall, Giving Tuesday data suggests donor participation depends on how well nonprofits can match the motivation to give with meaningful opportunities to act.

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Social impact bonds (SIBs) are an innovative funding mechanism for nonprofits looking to solve complex social problems. SIBs allow nonprofits to raise initial funding from private investors, then repay the investors if and when the program achieves agreed-upon outcomes. For nonprofits, SIBs provide multi-year funding and the flexibility to focus on outcomes rather than fundraising.

But how can nonprofits implement an SIB?

First, nonprofits need a program that can drive measurable outcomes. The program should aim to solve a pressing social issue and have a track record of success. Programs like workforce training, affordable housing development, or prisoner recidivism reduction may be good options. With data showing the program’s impact, nonprofits can make a compelling case to investors.

Second, nonprofits must identify and attract investors interested in the program’s mission. This could include donors, foundations, corporations with social responsibility goals, or impact investors looking for financial and social returns. Pitch the program’s outcomes and potential for significant community impact. Investors become partners in creating change.

Third, nonprofits need to partner with a government agency or other third-party “outcome payer.” The outcome payer, like a housing authority or health department, agrees to repay investors if the nonprofit achieves the promised outcomes. Outcome payers benefit by funding a program likely to drive change.

Finally, nonprofits must evaluate outcomes and results to ensure agreed-upon targets are met.

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To grow your fundraising, you need to understand your current performance and make an ambitious yet achievable plan. Start by analyzing at least 5-10 years of your own data to see trends in donations, expenses, and return on investment (ROI). Look for obstacles that held you back in the past and determine if they still apply.

Track your key metrics like dollars raised per staff member and ROI (dollars raised per dollar spent).

See if you’re improving over time and how you compare to similar nonprofits. This data builds your case for investment and helps set future goals. While comparing to other groups is helpful, focus mostly on your own historical performance.

Once you understand your performance, forecast future growth.

Ask why you couldn’t continue to improve if given more resources. There are only three real constraints: opportunity (have you tapped all sources?), resources (do you lack funds or staff?), or competence (do you have the skills?). Opportunity and competence constraints can often be overcome. Lack of resources is the most common barrier, so make a plan to obtain them.

Determine how much you need to raise to achieve your mission goals.

Then decide how to obtain resources, whether from your operating budget, endowment, events, or other sources. Taking a small percentage (e.g. 0.3%) of endowment funds each year to invest in advancement is an proven option, with many schools successfully using this model. Show how this investment leads to greater growth in donations and endowment value over time.

With a data-driven case and ambitious plan, you’ll find funders and supporters. Be transparent in reporting ROI and outcomes. While persuading others, focus on facts, not opinions. Let data demonstrate your competence and potential for success if properly resourced.

With funding and alignment, nonprofits can overcome roadblocks by building a high-performance fundraising operation. The key is making an investment in proven strategies for growth. Overall, the path to fundraising success is clear for those willing to track performance, make a plan, and invest in opportunity.

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Alumni participation rates have long been an important metric for higher education fundraising. But with increasing class sizes and more alumni each year, schools face what experts call “the participation cliff”—the nearly impossible task of raising participation rates. This challenge, however, also presents opportunities if schools focus on meaningful engagement over chasing metrics.

According to Dr. Shalonda Martin, an advancement strategy expert, “not only is the work itself hard to increase alumni participation…things like this are almost literally impossible to overcome unless we start saying proportionately.” Some schools resort to “gaming the system” by making broad swaths of alumni inactive to inflate rates. But this tactic ignores the real work of building lifelong relationships with alumni.

Instead of managing the denominator, schools should focus on the numerator by cultivating meaningful interactions and experiences with alumni.

This starts with understanding alumni motivations and priorities, which studies show are more linked to impact and affinity than rankings. Communications and engagement opportunities should highlight the ways alumni can support causes they care about.

Rethinking the traditional phonathon model is one way to foster more meaningful connections. As Perry Radford, founder of Rad Philanthropy, suggests, positioning phonathons “not just [as] about giving, but [as] about volunteerism, …events, [and] mentoring” helps schools tap into alumni’s desire to “help in other ways.” This broader engagement leads to greater long-term contributions.

Advancement offices should also partner more closely with other university departments to coordinate strategic initiatives. Alumni experiences are shaped by their interactions across the university, not just advancement outreach. Using tools like CASE’s Alumni Engagement Metrics (AEM) can help provide insight into the holistic factors influencing alumni perceptions and participation.

While rankings and metrics will likely persist in some form, the US News decision to drop alumni giving rates from its rankings gives schools freedom to concentrate on the relationships that truly inspire lifelong alumni participation. By refocusing resources on meaningful engagement over chasing rates, schools can overcome the participation cliff through a culture of philanthropy and shared purpose with alumni. Authentic connections, not metrics, build the most equitable, impactful advancement programs.

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A recent survey of university fundraising professionals revealed a significant roadblock to increasing donor participation: lack of support from campus leadership and culture. Of the 75 advancement leaders surveyed, 73% disagreed or strongly disagreed that their institution’s culture understands the work required to drive donor participation.  

Without buy-in from leadership across the university, fundraising teams struggle to get the resources and collaboration they need to effectively engage donors. As Cameron Hall, executive director of annual giving at the University of South Carolina, said, “Really shaping how we are having those conversations with our presidents, with our boards to give them a greater sense of what the current market looks like and how we need to be adapting to communicate with donors the way they are instead of relegating a lot of these sort of tasks and skill sets to lower level employees.”

Fundraisers also need support from their own institutional leadership, not just presidents and boards. The survey found a lack of alignment and buy-in even within advancement divisions, with some teams operating in “Hunger Games”-like environments of internal competition. This dynamic blocks the kind of collaboration and innovation that fundraising—and donor engagement in particular—demands today.  

To overcome these roadblocks, advancement leaders recommend:

• Educating campus stakeholders about the work of fundraising and how to achieve key metrics like donor participation. This includes communicating the need for investment in staff, skills training, and new technologies.  

• Adapting to engage today’s donors by hiring staff with digital marketing and analytics skills and training existing teams. Advancement needs leadership that can pivot quickly as new technologies and engagement channels emerge.  

• Fostering a culture of collaboration over competition within advancement divisions. Teams should align around shared key performance indicators and work together to achieve institution-wide goals.  

• Measuring and communicating the ROI and long-term impact of donor engagement efforts to make the case for more resources and support. Building the donor pipeline requires long-term investment.  

With the support of institutional leadership and a collaborative culture focused on donor experience, advancement teams can overcome roadblocks to growing donor participation and build a sustainable fundraising program. But first, they need to make a compelling case for this vision of the future. Fundraisers, make your case.

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Nonprofits often get caught in a cycle of continually soliciting donors to meet fundraising goals and metrics. While donor participation and revenue are critical, an overemphasis on solicitation can damage donor trust and engagement over the long run.

Pausing solicitations periodically to focus on donor education is key to building sustainable donor relationships.

According to fundraising experts, donor trust is the foundation of a successful giving program. However, donors today are bombarded with messages from countless organizations and causes. To break through the noise, nonprofits need to demonstrate how donor dollars are making an impact before asking for another gift. Giving donors a chance to understand your mission and programs better through tailored communications helps to build that trust.

Rather than scheduling back-to-back fundraising campaigns, nonprofit fundraisers should plan intentional ” rest periods” where solicitations pause for 1-2 months. During this time, communicate with donors through newsletters, social media, and your website to highlight recent wins and share stories of changed lives.

Explain your programs, events, partnerships, and upcoming priorities. Help donors see exactly how their gifts are transforming communities. 

When solicitations resume, donors will feel re-engaged and motivated to give again. They see the difference their support is making because you have taken the time to show as well as tell them. While counterintuitive, pausing solicitations can actually lead to improved donor participation and higher gift amounts over the long run. In a crowded and noisy fundraising environment, education and engagement are what set nonprofits apart and build lasting donor trust. The key is balancing solicitation with storytelling to achieve the most impact. Nonprofits that master this balance will thrive.

This approach requires patience but can transform how donors view and support your mission. As fundraisers, we must remember that people give to people and causes they believe in.

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Fundraisers today are busier than ever, with growing demands on their time and larger donor pools to cultivate. However, new AI tools are emerging that can help. Chatbots and content generators leverage machine learning to help with common fundraising tasks like donor engagement and copywriting.

The Donor Participation Project recently demonstrated some AI tools they created to help nonprofits. One tool is a chatbot “fundraising coach” that can suggest strategies for reactivating lapsed donors or overcoming board resistance to prospect sharing. You describe a scenario, and the bot provides a step-by-step plan of action, including advice like scheduling personal meetings, taking responsibility for mistakes, sharing corrective actions the nonprofit is taking, and highlighting other ways donors can engage. The bot is programmed with principles like “engagement leads to philanthropy” and “co-creating outcomes with donors increases the amount raised.”

Another useful AI tool is a content generator, like The Best Fundraiser’s Friend. You input information about your fundraising project or appeal, choose the type of content you need (like a donor letter), select a persuasive writing framework, and the tool crafts customized copy for you. Adding background on your nonprofit’s mission and programs helps the AI generate even better results. These tools can save time and provide a starting point for your appeals and outreach, though you still need to review and edit the AI’s suggestions. 

While AI will not replace fundraisers, it can make them more efficient and effective.  With chatbots and content generators, fundraisers can focus on building personal relationships and strategy rather than repetitive administrative tasks. These tools are still limited, but they are constantly improving and adapting based on interactions. Fundraisers should start experimenting with AI to see how it can best support their work and take their fundraising to the next level. The future of AI in the sector looks bright, as long as we’re thoughtful and strategic about how we integrate these new technologies into our nonprofit programs and fundraising efforts.

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According to Matthew Lambert, Vice President for Advancement at William &, engagement and stewardship.” Lambert and his colleague Dan Frezza, Chief Advancement Officer at the College of Charleston, shared how they doubled William & Mary’s donor base and fundraising results over the past decade.  

First, start with students and recent grads.

Creating opportunities for students to give and engage with your organization’s mission instills a habit of giving that continues after they graduate. At William & Mary, a student philanthropy education program teaches freshmen about long-term giving and engagement. This approach pays off, with new alumni more easily retained as donors.

Second, focus on stewardship and donor donors alike.  

Third, leadership and a culture of risk-taking are essential. Lambert credits William & Mary’s presidents for advocating for broad-based participation and allowing the advancement team to experiment. “Take risks, try new things and if you fail, learn quickly and move on,” says Lambert. Significant gains are hard to achieve without trial-and-error.

Finally, understand that technology should enhance human relationships, not replace them.

While digital tools can help scale and improve fundraising, “people give to people, not to machines,” says Adam Martel, CEO of the nonprofit tech firm Givzie. The most strategic technologies are those built with extensive input from advancement professionals and designed to “inspire people to dream,” says Martel.   

The keys to major fundraising growth are simple but not easy. Success requires leadership, vision, and a willingness to push beyond the status quo using strategic partnerships, technology, and an unyielding focus on people – both donors and staff. But for organizations bold enough to take the risk, the rewards of broad-based participation and a robust donor base are well worth it.

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The end of the fiscal year is approaching—are you ready to plan the next one? Having an effective planning process will lead to more successful fundraising campaigns and donor engagement. Follow these steps to start planning your nonprofit’s next fiscal year:

Gather your team.

Pull in stakeholders from key areas like fundraising, engagement, and stewardship. Their input is crucial, and including them builds trust in the process.

Start with a blank slate.

Leave behind last year’s calendar and any preconceptions. Look at your communications and campaigns with fresh eyes.

Brainstorm your must-haves, ongoing communications, and engagement opportunities.

Must-haves are non-negotiables like year-end appeals. Ongoing communications happen on a donor schedule like gift anniversaries. Engagement includes events, surveys, and emails. Map these on a shared calendar.

Get feedback.

Share your draft calendar with volunteers and donors. Make sure not to accuse other donors who brought campaigns of not liking their ideas, but thankfully allow other to share companies different ideas. Incorporate their input.

Present to leadership for approval.

Answer any questions. Document “the rules of engagement” for planning that are agreed upon. Now you’re ready to develop specific campaigns with the campaign owners owning decisions about the process.

Now you will need to flesh out the outline of campaigns with project briefs which are documents that guide decisions. Write down any new campaigns to gaining ideas for the next year. Solutions of air table planning templates to successfully manage your workload.

With an organized planning process, fundraising campaigns and strategy comes naturally because of the previous planning and participation in approval. Given the rough other years of COVID-19, a smooth planning process is more important than ever. Following these steps will set you up for success and create opportunities for participation the next year. The key is to engage, collaborate, and get the appropriate approvals which leads to a solid plan and community understanding.

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Nonprofit organizations have seen a worrying drop in donor participation over the last few decades. According to Lewis Diaz, executive director of annual giving at Milenberg College, the number of households donating to charities has declined in tandem with falling volunteer rates and trust in nonprofits.

However, some nonprofits have managed to buck this trend by making donor growth a strategic priority. Diaz’s research found that the nonprofits most successful at increasing donor participation share some key attributes.

First, they act as “community incubators” by constantly creating new opportunities for donor engagement. Rather than relying on a few longstanding programs, they experiment with different events, fundraising campaigns, and outreach for specific donor groups. This high-volume, multi-pronged approach helps expand their base of supporters.

Second, they leverage the power of recurring gifts through monthly or multi-year donation programs. Monthly giving, in particular, has extremely high retention rates of over 90% and should be a primary fundraising channel rather than an add-on.

Third, they focus on cultivating “deep community engagement” by developing participatory, purposeful, recurring events that identify and develop new leaders. For example, engaging donors through interactive virtual or gaming events can be an innovative way to build community.

Finally, nonprofit leaders emphasize that donor participation growth must be an organization-wide priority, not just an annual giving objective. Boards, presidents, and teams across the nonprofit must be aligned and invested in engaging and retaining donors for the long run.

The takeaway for nonprofit fundraisers is that declining participation can be countered with ambition, innovation, and a commitment to community-building. Creating a personalized, interactive, and mission-driven experience for donors can transform them into life-long advocates and champions of your cause. Overall, nonprofit organizations must make the cultivation of loyal donors an utmost priority to ensure sustainable success.

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