Email senders raised more money than Facebook fundraisers

Insights from the 2021 Peer-to-Peer(P2P) Fundraising study by Blackbaud

“The next five years may be the first time we truly understand the impact of community fundraising efforts on an entire organization. The front door was shut in 2020. Every revenue channel will suffer the loss of new blood, which is arguably peer-to-peer fundraising’s most important role.” — Katrina VanHuss, Turnkey said to Blackbaud.

2020 was a challenging year for Nonprofits. In fact, it just prepared us better for the future when the second wave of COVID-19 is already knocking on our doors. Additionally, the pandemic also showed us that individual giving is relevant. Initially, it was obviously the concern and the visible mayhem but later on, the Nonprofits that asked for donations were able to do so. 

According to the latest 2021 Peer-to-Peer(P2P) Fundraising study by Blackbaud as the pandemic wore on, we start to see the 2020 trend line become closer and closer to previous years.

“Overall, online fundraising was down “only” 40%, which coupled with the above, indicates that although participants numbered less, they continued to fundraise and, in some cases, fundraise more on average than previous years. It also points to the accelerated shift in funds from offline to online.”

The study that underlines the role of P2P fundraising represents an analysis of 687 organizations that produced 31,035 peer-to-peer (P2P) fundraisers from January 1, 2019, through December 31, 2020. More than 9.4 million people combined to raise over $1.3 billion during that two-year period.

2020 retention rates have declined

While the report dwells in deep around different areas of P2P fundraising I was particularly interested in the topic that often gets sacrificed in the name of acquiring new users - “Retention”. According to the study: 

“Overall percent of 2019 participants returning in 2020 was 14.7%.”

The report highlights that participants have considered returning if they use the same account to register in both years. This is understandable since no one wants to go through the boring process of account creation even if it is a matter of few clicks. This also shows that Nonprofits who are still dreaming to go back to pre COVID-19 era will be at the receiving end. 

Additionally, the retention rates have declined from years prior and represent a significant opportunity to win prior participants back in 2021 with a more compelling event experience.

Email senders raise more money

Email still an influential fundraising tool, says the study. “Though there has been a gradual shift away from email and towards modern communications channels, like Facebook and SMS, email is still an influential fundraising tool. The lack of a physical event dissuaded Cycle and Challenge participants from sending emails this year, but was found useful in other categories.”

An overall email has found growth when compared to 2019.

When we talk about P2P fundraising, by default Facebook fundraising comes to mind. But the report states that email senders have raised more money compared to Facebook fundraisers. 

“Though more participants are turning to Facebook to fundraise, those who send email as a part of their fundraising strategy raise significantly more than those who are using Facebook. Though there is overlap between the two groups, it is clear that email continues to fuel our most enthusiastic fundraisers.”

Facebook fundraising

However, one cannot dismiss the community power that Facebook brings and it is one of the pillars of success for P2P fundraising.

Besides, Facebook gives the ease of setting it up and zero friction donation process. It is so smooth that before you have made up your mind the money has already gone from the card. And this is why people struggle with email because it is a tough and continuous thankless job.

Overall the report finds that Facebook fundraising has become synonymous with P2P fundraising.

However, the study finds a dip in average raised by Facebook fundraising. While the study finds no answer at the moment but one of the reasons I have come across is Facebook’s inability to share donor data. Obviously, Facebook wants you to be committed to a life long relationship.

Looking at the first quarter of 2021 data Blackbaud states that participation is rebounding from the massive declines we saw in 2020. However, event fundraising is taking a step backwards as fundraising decreases outpace registration decreases.

My takeaways

In 2021 Nonprofits will have to provide a balance of hybrid events - virtual events and physical events where ever possible.

As always a clear “Why” will always set you apart. Because lack of clarity will hurt you hard: 

“While fundraisers report feeling “disappointed” (43%) and “frustrated” (19%) by the postponement/ cancellation of an event, they did not appear to be put off long term, with 90% very likely or likely to register for a similar event within next 3 years,” according to Summer of 2020, JustGiving.

Finally, Email plays a crucial role so don’t compromise in front of the fancy Facebook numbers.

Last but not least personal connection will and always play the deciding role: 

“In 2020 individuals became more effective at raising money for the causes they care about. In fact, when we look at the last 3 years of personal fundraising, 2020 carried the most individual pages created with a 3% increase over 2019.

Additionally, the average amount raised per page increased by almost 8% year-over-year. Taken with the fact that 90% of fundraisers also make a personal donation, we see that they are more motivated than ever to advocate and give on behalf of the causes they care about.”