Is the future hybrid for Nonprofit Fundraising
A mix of offline and online events is the way forward but Nonprofits need to revisit the basics of fundraising
My dad would always say do one thing and do it properly. He knew that I am easily bored with things and keep jumping from one thing to another.
I have always wondered why do I keep juggling. The answer lies in another story.
Finding myself inside
Last year when the pandemic had hit all of us, I observed a plethora of new behavior patterns both personally and professionally. One of them was the proliferation of online Zoom events. I was approached by a college dean to give an online talk on digital marketing and my journey to a batch of new MBA students. I passed on the opportunity to a guy better than me.
However, I have pondered what would be just one piece of advice to my younger self.
“Don’t chase things in the outside world, sit with yourself. You will find your answers.”
Don’t yawn!
Besides this insight has nothing to do with the pandemic. But all my life I have always chased things and my answers in everything else other than myself. How can my problems and questions have answers with someone else?
I never sat with myself and hence I kept juggling in the external world.
But would I listen if someone had told me this when I was 30/20? Definitely NO! I don’t listen to anyone and that’s where experiences from life come into the picture.
Now you must be wondering what is sitting with oneself got to do with Nonprofit fundraising.
Pivot to virtual fundraising
By the end of 2020 OneCause published “Fundraising Through A Pandemic - virtual pivot and 2021 outlook”; a report that surveyed 1997 nonprofit professionals between September 14 - October 16, 2020.
Sharing my thoughts on the report I emhasized on a known fact that 2020 was the year of the pivot to virtual fundraising.
Almost all nonprofits surveyed (98%) typically hold one or more fundraising events annually. In 2020, 48% had to cancel one or more events, and 40% postponed. However the report further states that it’s encouraging to see that of the 62% of nonprofits that converted to a virtual fundraising event, the majority (70%) describe the event as successful – i.e. either very or somewhat successful.
Giving a forecast about 2021, OneCause mentions in the report:
“Engaging and retaining known donors is the most important goal for Nonprofits in 2021.”
The report also mentions that 2021 will also witness the proliferation of hybrid events:
“Hybrid events are gaining popularity with 42% planning to hold one next year, that’s nearly two times the amount that reported holding a hybrid event in 2020. Many organizations are also optimistic about holding at least one in-person event in 2021. Approximately 1-in-5 nonprofits remain undecided as to their 2021 event fundraising plans.”
With the rise of COVID-19 mutants in 2021 and lack of confidence in vaccines; I don’t see a life without masks and lockdowns. So it will be okay to say even this year majority of fundraising will happen virtually.
However, Nonprofit organizations will prefer a mix of offline and online events which is hybrid.
Is the future hybrid for fundraising?
But is the future really hybrid and lies in discovering new approaches for digital or online fundraising? I can understand why OneCause will pitch hybrid as the next evolution of fundraising.
“Challenge your organization to reexamine donor experiences, identifying opportunities to simplify and infuse new engagement touchpoints. Use what we learned about important factors in engaging a virtual audience to help reshape your strategy. Continue to try new approaches, and expand your online fundraising footprint.”
In its latest report “Why America Gives 2020” Classy highlights that in-person donation has seen a drop in 2020.
“Impressively, almost a third of U.S. consumers (30%) said they have supported or participated in a virtual charity event since the COVID-19 pandemic began, with 60% saying they actually donated and/or raised more virtually than they have at past in-person events.”
A mix of both in-person and online events is the road ahead mentions Classy in the report.
Going back to the basics of fundraising
While I am not denying the fact that hybrid events will be the flavour of 2021 but more than that we really need to go back to the drawing board and revisit the basics.
In fact, most marketers across the globe are revisiting the basics and hence brand strategy has become one of the key focus areas.
This is the perfect time for Nonprofits to revisit the basics of fundraising. Why do I say so?
The answer lies in the findings of the OneCause report: “For 2021 55% virtual event is in the hold, 58% hybrid event is in the hold and 55% live event is in the hold. Even the experience provided via live events in 2020 failed at converting it into online fundraising. 41% pointed out that online giving could be better.”
As a digital strategist, I never mix objectives.
“If it is generating leads or looking for revenue then let’s not say we also want engagement. I understand you won’t agree with me but I like to simplify.”
Live events and fundraising
If you see with the case of live events - Nonprofits initially were looking for engagement and numbers with live events and then they loaded it with fundraising.
In other words, if I am not a donor but an online follower of a Nonprofit then I would watch a live event may be a music show or a comic show or something that adds value, and while it is being performed if I am motivated I make a donation to the Nonprofit.
Ignoring how the online event is influencing me to make a donation but for now, let’s assume I am a supporter of the Nonprofit then the technology should provide seamless giving.
This is where most Nonprofits struggled because most of them were depended on external platforms like Facebook, Instagram, and Zoom for live events. Initially, these platforms focussed only on the engagement of live events and later they started incorporating online giving.
Six months into the pandemic Instagram enabled the option of direct giving while watching the live event. And this was not rolled out globally and even registering on Facebook as a Nonprofit is a pain.
While we are all dancing to the tune of Digital Transformation but it also requires developing a tech stack and that means having the required budgets. Nonprofits who are struggling with fundraising should first look into the tech that is already there and use it to the fullest rather than investing in tech-related to live events.
Facebook fundraising
The other focus area could be Peer-to-Peer Fundraising or let just say Facebook Fundraising. Last year most Nonprofits tried it and got good results. Most Indian Nonprofits tried with their known celebrities and influential crowd.
This year Nonprofits should infuse Facebook Fundraising with their brand advocate present in the donor database.
Let’s assume that you have 100 donors and out of that, there would be 10 donors who would be really vocal about your cause. As a Nonprofit your job should be educating them, doing a monthly Zoom call, and just preparing them for the next fundraising campaign. So when the need comes you ask them for help and I am sure they will do the best to raise money for you via Facebook Fundraising.
Don’t you think this also solves one of the biggest problems faced by Nonprofits - Donor Retention?
I understand this will involve work and time investments. Cut down your engagement campaigns and focus on the basics of fundraising. If you don’t have funds how will your Nonprofit survive, forget saving the world?
Club all the above with my 3 key areas to invest in 2021. You will be walking the path of effective fundraising.