Nonprofit fundraising expert Juan Azkue says donor behavior is shifting in a way that challenges traditional nonprofit-donor relationships. Donors today are increasingly cause-driven rather than organization-loyal. They care about issues and solutions, not brands.
This trend means nonprofits can no longer rely on long-term donor loyalty and retention.
Donors may come and go as their interests and the urgency of causes change. To adapt, nonprofits need to focus on demonstrating impact and value. “Evidence-based demonstrations are way more important than it used to be in the past,” Azkue says. Annual reports and project updates are not enough. Donors want to see how their dollars are driving meaningful change.
Nonprofits also need to provide more interactive, customized donor experiences.
New technologies make personalized journeys possible at a large scale. Asking donors what they care about and tailoring communications around their interests can build trust and loyalty to the mission if not the organization.
With donor loyalty fleeting, nonprofits must work to stay nimble and responsive. They need to spot new “jobs to be done” and causes gaining attention, then develop products and campaigns to match. Partnerships with companies, brands, and platforms that reach new audiences can help nonprofits scale their efforts. According to Azkue, the majority of successful nonprofit innovations have come through collaborations, not solo efforts.
To attract and retain today’s cause-driven donors, nonprofits should:
• Focus on demonstrating impact through evidence and outcomes. Share stories of lives changed and problems solved.
• Deliver personalized interactions and tailored content. Ask donors what they care about and meet them where their interests lie.
• Embrace an agile and innovative mindset. Continually spot new causes and opportunities, then develop products, services, and campaigns to match.
• Pursue strategic partnerships. Work with brands, companies, and platforms aligned with your mission to reach new audiences and scale efforts.
• Accept that donor loyalty is transient. While still important, long-term retention should not be the primary marker of success. Impact and responsiveness are key.
The organizations that adapt to this new reality will be the ones to thrive.
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