Everything You Wanted to Know About Online Fundraising in a Bad Economy
Lets be frank, daily doom and gloom reports about the economy are scary. Nonprofits are facing challenging times with leaner resources.
“The year-end fund-raising results last month confirm what we already suspected: for most people giving is not a luxury but a natural extension of who they are,” said Mark Rovner, Founder of Sea Change Strategies. “Many groups received significant numbers of gifts this past December, but the average size gift amount dropped, especially at the higher end.”
The big question on every fundraiser’s mind these days is this: How can an organization sustain and even increase their online donations in a recession? While there is no magic formula, the best practices for online fundraisers right now lie in a solid communication strategy and philanthropy fundamentals. Two of the biggest takeaways from Obama’s incredibly successful fundraising campaign were to: 1) embrace low dollar donors; and 2) make the case that donors are part of a movement.
The Obama team quickly recognized that many people just couldn’t afford to donate $50, yet still wanted to support and contribute to the campaign. Nonprofits can easily use a similar strategy by setting donation limits at $5 or $10 -- or not even having a limit. This tactic makes low dollar donors feel valued and part of an organization, even if they don’t have a lot of money to contribute. It also builds good relationships. As these donors earn more money, they will increase their donation amounts.
It’s also important to give donors a sense of mission and purpose. Given the bad economy, make the case that if they donate money to your organization, you will do something concretely to improve their lives. Give them the sense that they will get more back than they are giving. Click here to read more.