Nonprofit fundraising changes and growth in 2014

Nonprofit fundraising donations and indeed the variety of methods used to donate have seen an impressive 2014 so far on aggregate. While totals funds raised in North America by nonprofit organizations is on track for modest improvements the sector itself is seeing a new wave of fundraising methods continue to change the landscape so that what was taking place ten or even five years ago is beginning to look almost unrecognizable.

Even while technology, the internet, social media and other variables have dramatically changed the way donors give over recent years the total donations are yet to fully recover to the levels seen before the recession. Within about 60 days time we’ll have a fairly accurate picture of the final 2014 fundraising results for Canada and the United States and I anticipate that we’ll see growth that is quite similar to the 2013 gains over 2012 although probably slightly less robust.

In 2013 overall giving on the year improved by somewhere between four and five percent depending on which study you reference and this was powered by significant growth in online giving which was estimated to have improved by more than 12-15%. I’d expect online giving to once again grow by a ratio somewhere between 10-15% and total fundraising growth to be quite close to 3%. Last year also saw the greatest growth in funding experienced by larger organizations who saw donations grow from 5.5% to 7.2% depending again on your point of reference. This year is poised to deliver similar results with the largest organizations currently most likely to report the strongest growth.

Organizations with total funding of less than $1 million are experiencing a better year so far with growth slightly up from around 3% to nearer 4% which means for the third consecutive year it is medium sized nonprofits, those with funding between $1-10 million, showing the greatest difficulty in growing funding. Each of these numbers are of course aggregates so there will naturally be major exceptions to every rule.

The methods of fundraising continue to change at a rate that is rather unlike anything seen before. Technology is behind so much of this change with tools and approaches now available that weren’t even thought of a decade ago never mind actually implemented. What is clear is that new and improving tools alone won’t drive nonprofits to better results by themselves but a dedication to innovation, communication and interaction from charities that is mirrored by clear and measurable goals, fundraising effectiveness and proper transparency in everything that the sector does.

At times I think that there can be too much emphasis on technology providing all of the impetus behind growing fundraising results and achievements. At the heart of a nonprofit’s long-term accomplishments is building relationships and donor retention and much of this is maintained via channels that are less reliant on technology and more dependent on people. The people who represent an organization are the ambassadors of your cause whether it be via telephone fundraising, lottery fundraising, mail campaigns or event fundraising.

It’s via these people that bonds created with donors in terms of knowing how funds are being used, seeing key accomplishments and understanding how, when and where support is needed each help to solidify overall donor retention.

Over the coming months we’ll look deeper at some of the trends and changes in nonprofit fundraising seen throughout 2014 and some of the data regarding annual results as it becomes available. If you would like to share any of your own personal thoughts about events and changes this year we’d be happy to hear from you in the comments section below.
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Miratel Solutions is a Toronto call centre, eBusiness, and letter shop mail house specializing in professional fundraising services including PCI compliant inbound telephone fundraising, outbound telephone fundraising, online fundraising, lottery fundraising services, donation processing and receipting and direct mail fundraising services. We are committed to our CSR business values in all our business decisions and advancing the missions of the nonprofits we proudly serve.