News & Research - Classy https://www.classy.org/blog/news-research/ Mobilize & Empower the World for Good Fri, 15 Sep 2023 16:27:35 +0000 en-US hourly 1 https://wordpress.org/?v=6.3 https://www.classy.org/wp-content/uploads/2022/06/cropped-favicon-classy-32x32.png News & Research - Classy https://www.classy.org/blog/news-research/ 32 32 The Current State of Donor Engagement for Food Banks https://www.classy.org/blog/foodbank-fundraising/ Fri, 15 Sep 2023 07:00:32 +0000 https://www.classy.org/?p=27165 Food banks pour passion and ideas into expansive programs to relieve communities from hunger. At Classy, we always look for innovative ways to best support these nonprofits by providing seamless paths to generosity. 

Partnerships with over 60 food banks, including Feeding America, help us continue learning about top priorities, roadblocks, and new ideas. This informs us on how to shape our technology to support these nonprofits’ ambitious goals best. 

Most recently, Classy joined RKD Group, Capital Area Food Bank, and Food Bank for New York City for a timely conversation with over 40 organizations. Our representatives, ranging from vice presidents of fundraising initiatives and executive directors to senior vice presidents of marketing, discussed what defines successful donor engagement, connections, and stewardship in the modern social landscape. We used the time to explore ways modern organizations evolve to meet growing demands. Below, you’ll hear the most significant takeaways from hunger-relief nonprofits to bring back to your organization. 

The Top Takeaways From Our Food Bank Roundtable

1. There’s Potential Ahead in Acquiring Next-Gen Donors

Alongside the common priority of finding new ways to reach supporters who could make a long-lasting impact on food banks, the newest generation of donors was a hot topic. The impending great wealth transfer will affect Gen Z and Millennial donors in the next two decades, making now the most opportune time to build strong relationships.1

Younger generations must decide which nonprofits resonate most deeply with their passions. That includes choosing whether they’ll seek new causes or remain loyal to those they know. These are also the individuals with more digital acuity across various channels than other generations. From the wide array of social media platforms that now include the latest Threads app to online media outlets they engage with daily, online engagement is ubiquitous in their lives. 

Our roundtable of attendees discussed the delicate balance between being on the right channels and standing out on those channels to make a meaningful first impression. It’s critical to craft appealing copy that speaks to the tangible impact of each donation to capture a person’s attention and inspire action. Tapping into the personal side of video content and tailoring messages to local communities can do a lot to attract the right people to your food bank.

Converting Curiosity Into a Donation

With multiple touchpoints at a food bank’s disposal to create a memorable first impression, it’s vital to understand how each plays a key role in the greater donor experience. 

The introduction should detail who a food bank serves and help potential donors begin to envision the value they can make with a single gift. From there, the donation page is where organizations guide decisions around how much someone can give to make the biggest impact in that moment. Aspects like suggested gift amounts and impact blocks that tie outcomes to monetary value offer this clarity.

Once food banks establish the initial connection with younger donors, elements like a mobile-friendly design, modern payment options, and a simple flow on the donation site tie a nice bow on the overall first impression. When you attract donors from modern channels like social apps, the donation process should feel consistent to the experience they received on the previous channel for the best chance at seeing a gift come to completion.

 

2. The Power of Thoughtful Engagement Fuels Loyalty

On the topic of helping donors see the value of their gift, our roundtable talked about how to continue that sentiment as part of a donor retention strategy. To ensure every engagement point is memorable, it’s critical to reiterate the impact of someone’s investment in your organization as a reminder of their value to your mission. 

Shining a Spotlight on Increased Need 

As hunger-stricken populations expand, there’s an even greater need for ongoing support. We heard a few ways organizations directly aligned aspects like food, number of families, and total individuals fed with specific dollar amounts to create more detailed repeat donation appeals. When people see an opportunity to help five families eat dinner next week, instead of prompting a vague dollar amount, it’s more likely their bond strengthens and their giving patterns become more reliable.

We loved hearing from David Jones, the Vice President for Fundraising Operations from Food Bank for New York City, about some ways his nonprofit calls on supporters for increased generosity after their initial gift. One that stood out was adding real-life examples of rising food costs in direct mail solicitations to emphasize community needs across the five boroughs. Retention appeals can also help you showcase the beneficiaries whose lives change with every donation decision and offer an easy way for donors to stretch their support through a monthly donation that fuels ongoing demand.

3. Unprecedented Financial Times Call for Courageous Asks

Over the past few years, the growth in support for food banks led to conversations about maintaining increased generosity in uncertain economic times. Inflation continues to impact the price of food, heightening the demand for food banks and associated programs. It also means gift amounts received one year ago cannot produce as much supply or impact this year. 

The room agreed that it’s more important than ever to be confident and courageous in asking for more from donors who can contribute to match the growing need. It’s also an opportune time to test new things and share new ideas at your food bank that respond to the current state of the economy. 

You’re not alone if asking people to increase their generosity feels a bit nerve-racking when you don’t know exactly how the economy impacts each donor. Our food bank participants talked about the ease they felt when pairing those appeals with a strong reason why donations matter at that time.

Be Willing to Test

Part of growing a relationship with donors is establishing nonprofit transparency about where the organization is and what it needs to make the most significant impact. Food banks can start with something as simple yet effective as offering donors the option to cover transaction fees. For example, Mary Beth Healy, the Chief Revenue and Marketing Officer from Capital Area Food Bank shared that her organization increased the fees that donors can cover to 13%, the percent increase in the food bank’s food budget. Being willing to test small elements with your donors can unlock new avenues to raise more that you might never have thought of while requiring far less effort than an entirely reimagined fundraising strategy.

Specificity Matters

Appealing to donors to give more means being highly specific about the gift amount that will make an impact. It’s worth adding an array of dollar amounts that are higher than usual on donation pages or specific campaigns to see what can come from it. Many food bank leaders shared the benefit they saw from increasing their individual fundraising page goals on peer-to-peer campaigns and saw their average donation total rise significantly. 

As we head into Giving Tuesday 2023 and the year-end giving season, it’s a good time to strip away any preconceived limits to your fundraising goals to fuel your essential programs. One way food banks actively practice those more courageous appeals is by bringing fund drives back for monetary gifts through a donation page, crowdfunding, or other dedicated campaign. While put on halt during the COVID-19 pandemic, organizations are reintegrating virtual fundraising into strategies to invite increased giving online. Fund drives also allow organizations to be more agile to achieve larger goals.

4. Trust and Transparency Are Everything

Millennials and particularly Gen Z are more inclined to give to organizations they trust. Still, we talked about how that trust is declining. To combat this, it’s critical to share the correct information with donors to bring clarity about how money translates to impact.

The group agreed that transparency and competence are the key drivers of trust. Every email, text, and phone reply is a chance to show a donor that your organization cares, understands them and their giving history, and provides them with the answers to any curiosities they may have to establish that trust.

Stand Apart By Knowing What Matters to Donors

People come across 10,000 ads on average daily. Those ads include nonprofits’ fundraising appeals. Part of standing out in a sea of other messages is establishing a unique bond with individuals. That doesn’t necessarily mean trying to be their best friend but rather showing up as an investor in your mutual goal of hunger relief. It also may involve communicating when you’re wrong or practicing transparency when you need urgent support. Breaking out of the highlight reel and sharing the vulnerability of being an organization in this specific cause sector means a lot to people.

Moving Food Banks Forward through Modern Fundraising

Food banks take on incredibly impactful work that changes many lives. As fundraising evolves in response to a shifting economy, generational giving patterns, and more ways to give than ever before, Classy will be here to support you. 

Our mission to mobilize and empower the world for good starts with each of your missions to advance change through food access. By learning firsthand about what will make a difference for modern food banks, we can continue innovating our fundraising platform to help you deliver a seamless giving experience that leads to greater lifetime value.

Copy Editor: Ayanna Julien

Article Source

  1. “The Great Wealth Transfer From Baby Boomers to Millennials Will Impact the Job Market and Economy,” Forbes, accessed August 30, 2023, https://www.forbes.com/sites/jackkelly/2023/08/09/the-great-wealth-transfer-from-baby-boomers-to-millennials-will-impact-the-job-market-and-economy.
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Monitor These 6 Corporate Giving Trends for Maximum Impact https://www.classy.org/blog/corporate-giving-trends/ Wed, 30 Aug 2023 07:00:09 +0000 https://www.classy.org/?p=26948 This blog was written in collaboration with the team at Double the Donation, an online donation matching tool built to amplify nonprofit fundraising. 

Staying on top of the latest fundraising trends is essential in today’s ever-changing nonprofit landscape. In particular, one area that continues to grow in prominence and popularity year over year is corporate giving.

When charitable organizations partner with socially minded corporations, there’s potential to establish a symbiotic relationship that leverages their strengths, opportunities, and resources to drive positive change. These partnerships may involve project or event sponsorships, community grants, workplace giving programs, cause marketing campaigns, and more. In other words, corporate partnerships come in all shapes and sizes, and there’s much to gain, regardless of the partnership form.

As a result, nonprofits must closely monitor current and projected corporate giving trends to set their fundraising and partnerships teams up for success. By aligning your nonprofit’s strategies with the findings in this guide, you can position yourself for greater collaboration, funding, and community engagement to increase total giving levels. And you can do it all while fostering long-lasting, sustainable partnerships to maximize the impact of your mission.

Key Takeaway: Corporate Partnerships Must Come Before Corporate Giving.

The most effective donation appeals take a personalized engagement approach, with the fundraiser investing time and energy into building a relationship with the prospective donor. When individual contributors lack knowledge of your organization and a connection to your cause, they’re not likely to write you a check.

Similarly, corporate partnerships require solid connections and understanding before pitching a sponsorship. Like individual donors, companies tend to invest resources and rally their employees around causes they genuinely care about.

Take time to engage with a company and learn about its values, business objectives, employee base, and corporate social responsibility (CSR) goals. This paves the way for a more meaningful and fruitful conversation. Building rapport with potential partners helps them understand your nonprofit organization’s mission and demonstrates your commitment to a mutually beneficial, long-lasting relationship.

Remember, relationships are at the core of successful fundraising efforts, whether with individual donors or corporate stakeholders. With robust fundraising software like Classy, you can uncover partnership opportunities, streamline engagement efforts, and simplify corporate fundraising. This enables you to provide an optimal experience for your corporate partners, fostering strong and lasting relationships to support your cause in the coming year and beyond.

Relevant Corporate Giving Trends for Nonprofits to Track

Corporate giving is a prevalent strategy⁠—and it only continues to grow. Data discussed in Classy’s recent webinar, Six Ways to Strengthen Your Corporate Partnerships, indicates that 2021 saw over $21 billion in donations from companies to nonprofits, a 24% increase over the previous year. Meanwhile, surveys indicate that 94% of major U.S. corporations plan to heighten or maintain charitable giving in the next few years.

The ways in which these opportunities manifest can differ greatly, yet it’s essential to watch these specific and impactful trends in corporate philanthropy and CSR. Doing so will better position your team to uncover and pursue partnerships effectively.

1. Philanthropy Aligned More Closely With Crisis Response, Current Events

Year-long giving initiatives remain a crucial tenet of corporate philanthropy, but there’s also been a notable shift toward aligning efforts with more timely campaigns. In particular, many companies have rallied their employees to support crisis response and current events⁠—such as the COVID-19 pandemic, social justice movements, refugee crisis support efforts, natural disaster relief, and other urgent affairs⁠—through corporate and workplace giving.

Such efforts have unearthed that crowdfunding websites are an excellent tool to raise funds quickly and effectively. By mobilizing employees⁠—and sometimes the general public⁠—to contribute directly to relief efforts, they can use their influence to make a significant impact with their charitable contributions.

2. Reinstated Employee Giving Programs

While most companies’ employee giving programs get sustained from year to year, in some instances, companies pause the initiatives. According to Double the Donation’s matching gift trend analysis, several companies, including Kimray Inc., IBM, and UPS, had temporarily suspended their employee matching gift programs. However, all three companies reinstated these initiatives as of 2023, demonstrating a renewed commitment to CSR and employee engagement.

The reinstatement affirms the value of these programs, and many staff are eager to be re-engaged in corporate giving alongside their employers. Check out this list of companies that match donations for future corporate giving initiatives.

3. Increased Match Ratios and Donation Maximums

The more funding companies contribute to nonprofits, the greater the partnership benefits received. Today, companies continuously expand matching gift programs to bring their corporate giving potential to new heights. These include American Eagle Outfitters (which has upped its maximum match amount), The Hartford (which has doubled its existing match ratio), Chicago Community Trust (which has increased its donation limit and its match rate), and more.

In addition to maximums and ratios, many companies actively incentivize employees to participate in monthly giving programs (and match those donations) rather than only contributing one-time gifts. These program enhancements encourage employees to engage in sustained giving, motivating individuals to contribute regularly and increasing their impact on the nonprofit sector over time.

4. Increased CSR and Philanthropy Participation

Companies continue to roll out new corporate giving initiatives daily. Not to mention, corporate philanthropy and CSR are no longer exclusive to the largest corporations. Now, smaller and mid-sized businesses have shown elevated participation in social good initiatives⁠—particularly those that leverage team member involvement.

In recent years, there’s been a growing market for CSR platforms targeting small and mid-sized companies, enabling corporate giving as an increasingly accessible business strategy. This allows companies of all shapes and sizes to drive positive change through the philanthropic sector. It also provides employees with new and exciting opportunities to give back and support the nonprofit missions of importance to them.

5. Tighter Relationships Between Nonprofits and Companies

The nature of corporate-nonprofit relationships also continues to evolve. Often, companies that give are no longer content with partnerships going only as far as transactional payments. Instead, there’s a need for deeper engagement and alignment with the nonprofit missions they support through volunteer programs, event participation, and more.

Here’s how Mary Elise O’Brien, Manager of Corporate and Community Relations at the Gary Sinise Foundation, described it in a recent Classy webinar:

We’re seeing more and more that our partners don’t just want to write a check and walk away. They’re looking for ways to get truly involved in the mission and find ways that our mission and our programs can align with what their employees are involved in. Our relationships are becoming much more personal and much more customized.

Though it may require a more targeted approach to secure these types of partner relationships, the result tends to be more profound, impactful, and long-lasting collaborations that benefit both parties.

6. Rise in Virtual Employee Engagement

Since the start of the COVID-19 pandemicnonprofits and companies have each seen significant shifts from primarily in-person to virtual and hybrid engagement. There are more remote workers than ever, and fundraisers have expanded their efforts beyond geographic boundaries. This has increased reliance on virtual events (like webinars, auctions, fundraising galas, online challenges, remote run/walk/rides, interactive campaigns, and more) and the platforms that power them. 

From the company’s perspective, virtual solutions enable business leaders to engage team members from afar, building employee loyalty and retention and fostering a positive workplace culture. Such virtual engagement is also an excellent avenue for nonprofits, whose teams can establish connections with corporate partners and their employees while retaining their cause at the top of supporters’ minds from anywhere in the world.

What These CSR Trends Mean for Your Organization

Corporate giving increasingly comprises purpose-driven partnerships and collaborations between nonprofits and for-profit businesses. As nonprofits strive to make a tangible difference in the world, maximizing the available support of committed funders is crucial.

Keeping up with corporate giving patterns⁠—including shifting focus areas, preferred engagement models, and employee involvement levels⁠—enables your team to tailor their partnership approach accordingly.

How to Take Advantage of These Top Trends

With a strategic approach to engagement, corporate partnerships can go a long way. Implementing these expert tips and insights can help your team build lasting relationships with companies and employees.

Ensuring Flexibility in Giving Options

Modern corporate giving prioritizes flexibility. Companies and employees are more likely to support causes when it’s easy and convenient. That’s why offering diverse giving options—one-time donations, embedded donation forms, recurring contributions, and time-based campaigns—is essential.

Emphasizing Win-Win Partnerships

Positioning partnerships as mutually beneficial is vital. Don’t go into any relationship talking solely about “me, me, me.” Instead, highlight how your mission and proposed collaboration align with the company’s goals, whether diving into CSR, increasing awareness, improving brand reputation, driving sales, or deepening employee engagement.

By showing the prospective partner that your relationship will solve a problem they face in tangible ways, you make it a no-brainer for the company to get on board.

Employing Customized Sponsorship Packages

Your partners (or prospects) have a unique place in your nonprofit’s engagements by offering tailored sponsorship opportunities. This is often the most tangible value-add a nonprofit can offer a corporate partner, and it serves as a testament to your organization’s collaboration.

Ensure you cater each package to appeal to a partner, including tailored branding on event print and digital promotional materials, virtual platforms, in-person event spaces, swag, auction items, merchandise, and more.

Utilizing Advanced Technology

Like all fundraising engagements, equipping your team with a comprehensive fundraising platform is crucial for streamlining partnership efforts and maximizing their impact. 

Features such as in-house donation processing, donor management, campaign tracking, and matching gift automation maximize the impact of corporate giving. Not to mention, recurring giving continues to gain momentum in corporate partnerships, so ensure your fundraising solution offers a complete recurring donation platform to enable corporate employees to contribute regularly.

Empowering Employee Advocates

Companies know to engage their employees in corporate giving now more than ever. Stay ahead by harnessing existing donors’ influence to advocate for your cause within their workplaces and across professional social media channels like LinkedIn.

Your donor database⁠—paired with an employee giving tool like Double the Donation⁠—can also help uncover the best partnership opportunities. If you see that a sizable supporter segment works for manufacturing company A, it’s worth reaching out to initiate a relationship. You already have a lot in common, which might be what you need to get your foot in the door.

Elevating Engagement With Peer-to-Peer Fundraising

Once you have a corporate partner on board, peer-to-peer fundraising can be an excellent way to deepen engagement with the company’s employees and fuel greater levels of philanthropic giving. Equipped with impactful peer-to-peer fundraising tools, this approach fosters healthy competition between teams and departments. Virtual engagement also pairs well with gamification tactics like online leaderboards, fundraising thermometers, goal setting, incentives, and prizes.

When you challenge corporate groups or segments to see who can raise the most for your cause through social fundraising, you build positive experiences with your organization, enhance corporate giving impact, and attract new supporters through employees’ networks.

Next Steps: Getting Started With Powerful Corporate Partnerships

By monitoring and adapting to relevant trends in the corporate philanthropy space, your nonprofit team can best identify, pitch, secure, and maintain high-impact partnerships. And when you consider that the emphasis on corporate giving will only grow, you understand the increasing need for a well-thought-out strategy.

The time to launch such a strategy is now.

Gen Z and millennials continue to demand CSR as employees and consumers, applying pressure on the companies they may work for and shop from to give back and invest in social good. Such participation in corporate philanthropy allows companies to benefit greatly. Meanwhile, your organization gains additional revenue streams, new audiences, and more.

That’s not something you want to miss out on. If you’re ready to begin exploring the largely untapped potential of corporate partnerships, Classy and Double the Donation⁠—experts in corporate philanthropy⁠—can help.

Copy Editor: Ayanna Julien

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Salesforce Elevate Is Retiring: What Your Nonprofit Needs to Know https://www.classy.org/blog/salesforce-elevate/ Thu, 24 Aug 2023 07:00:24 +0000 https://www.classy.org/?p=26877 In April 2023, Salesforce announced the sunset of its online fundraising solution, Elevate. Here, we dive into what this means for nonprofits and how organizations affected by this update can prepare for a smooth transition to the next fundraising platform.

What Is Elevate?

Salesforce.org’s Elevate is a tool that helps nonprofit organizations reach their fundraising goals. This customer-driven product allows them to create campaign donation pages that link directly to campaigns within their Salesforce CRM instance.

Elevate also allows organizations to accept payments that flow into Salesforce’s Nonprofit Success Pack (NPSP), evaluate recurring donation programs with a unified view, and personalize donation pages with engaging, customized content.

However, as Salesforce began evaluating Elevate earlier this year, the results revealed there was a limited future innovation envelope, and the intended value was not being delivered with the available resources. The result was the tough decision to sunset the product by the end of 2024.

What Nonprofits Currently Using Elevate Need to Know

The Salesforce platform will honor all existing contracts to provide ample time for migration to alternate online donation solutions. Its team is also committed to maintenance and bug fixes, although there will be no innovation with the tool.

While this news can overwhelm organizations leveraging Elevate for their giving pages or other fundraising needs, Classy’s deep Salesforce integration and long-standing partnership enable a smooth transition with minimal operational downtime. We’re committed to supporting nonprofits through this change to protect and fuel your impact.

Top Migration Considerations for Your Next Fundraising Software

It’s critical that your team has access to the right tools to propel your mission forward. Deciding which software is best for your organization comes down to knowing what to ask a potential vendor.

A few technical questions to ask during your evaluation include:

  • What types of organizations are most successful when using your solution?
  • Is there a limit to how many campaigns I can create?
  • Which payment options do you offer?
  • What are the standard transaction fees?
  • Does everything operate seamlessly on a mobile device?

In addition to technical questions, you’ll want to understand a provider’s rate of innovation and how it can support your other fundraising needs, like expansion and scalability. Here are a few holistic questions to add to your list:

  • What’s ahead on your company’s roadmap and plan for future product innovation?
  • What makes your company stand out in the market beyond its products?
  • What do you envision as the future of giving, and how are you working to support organizations like mine in preparing?

For additional guidance, here are 20 questions to ask during your nonprofit software evaluation.

How Classy Can Fuel Your Fundraising Long-Term

Classy’s comprehensive fundraising platform and payment offerings, coupled with our proven migration capabilities, ensure:

  • Unlimited access to scalable tools designed to grow as you do
  • Seamless, optimized giving experiences and donation forms that help nonprofits double revenue to do more for their communities
  • Multiple ways for donors to get involved, including five campaign types and multiple payment methods
  • Flexibility to tell your stories in personalized ways and tools to share them at scale
  • Seamless communication between your front-end and back-end experiences through thoughtful integrations and award-winning APIs
  • No fundraising hiccups due to unprotected data or unreliable technology

Classy vs. Classy Alternatives

Classy’s robust suite of products makes it possible to create the right experience for the right donor at the right time, every time. When evaluating Classy versus Classy alternatives, there are a few key differentiators worth noting:

  • Embedded donation forms: Drive conversions up to 2x the industry standard thanks to a mobile-first, streamlined design.
  • A/B tested: Benefit from A/B tested Classy donation experiences with large sample size, real-world conditions, time and cost efficiency, and insights from long-term trends and patterns that inform development and innovation for future functionality.
  • Peer-to-peer and registration with fundraising: Activate your supporters to raise on your behalf and extend your reach to their networks.
  • Auctions, mobile bidding, and on-site payments: Engage networks through events and Classy Live by developing customized and curated experiences that act as a powerful springboard for extending supporter lifetime value. With flexible, scalable options, like auctions, mobile bidding, and on-site payments, you have the ability to boost attendee engagement and generate more revenue opportunities.
  • Payment flexibility: Make it easy to give more, and more often, with a campaign experience backed by Classy Pay that offers donor payment flexibility.

For us, it’s never been about the dollar, but always about the impact. Classy has made it easy for us to communicate the impact of a donation to our donors while making it even easier to collect any donation!

Legacy Youth Leadership

What does transitioning to Classy look like?

Classy and Salesforce’s long-standing partnership has resulted in the deepest integration in the industry. Our alignment in shared values and customer success means you can transition from Elevate while maintaining and strengthening your Salesforce environments.

We also understand how crucial it is for your fundraising and CRM solutions to integrate seamlessly within your unique use case. With a dedicated Classy for Salesforce team and an innovative approach to our solution, Classy for Salesforce works for you now and in the future.

To empower Elevate customers with Classy, we’re offering special packaging that includes the following for the first year with a three-year subscription term:

  • $0 subscription fee
  • Free recurring donor migration
  • Free Classy for Salesforce integration
  • Comprehensive onboarding assistance

Transform Your Fundraising Future With the Right Technology

We encourage nonprofits to demand more of their technology, with the ideal fundraising suite seamlessly operating in the background. This allows your impact stories to take center stage.

Unfortunately, that’s not always the case, deterring donors due to a lack of trust, disruption in the storytelling process, or distraction from the call to action. A fundraising experience’s quiet efficiency determines a nonprofit’s ability to establish deep, meaningful personal connections at scale. So how does your current experience ladder up?

For more information on how Classy can support your fundraising efforts, we encourage you to request a demo and see our in-house payment processing, expansive fundraising campaign portfolio, industry-leading user experience, and more in action.

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HubSpot for Nonprofits: Brilliant Ways to Market and Generate More Donations https://www.classy.org/blog/hubspot-for-nonprofits-brilliant-ways-to-market-and-generate-more-donations/ Mon, 03 Jul 2023 07:00:00 +0000 https://www.classy.org/blog/hubspot-for-nonprofits-brilliant-ways-to-market-and-generate-more-donations/ Intentional, personal relationships with people who care deeply about your work and mission are at the heart of nonprofit success. Creating connected fundraising experiences that deliver meaningful stories to the right individuals at the right time is the first step in establishing those critical connections and building strong donor engagement. 

Today, we’re taking a deep dive into one of the most critical pieces of any nonprofit tech stack: customer relationship management (CRM). We’ll specifically use HubSpot for Nonprofits as our CRM software example and detail why a HubSpot integration into your online fundraising platform is critical to generating more donations.

Consider this your comprehensive guide to harnessing the power of HubSpot’s CRM and marketing platform and amplifying your impact directly. 

We’ll cover:

  • Improving donor management processes
  • Personalizing your nonprofit communications 
  • Maximizing impact using HubSpot’s deal pipeline with Classy
  • Employing donor segmentation as a key marketing strategy for nonprofits
  • Analyzing nonprofit data and metrics with HubSpot and Classy

The Power of HubSpot for Nonprofits

HubSpot for Nonprofits offers organizations access to the leading CRM and marketing hub at a discounted (sometimes free) rate. 

When managing donor relationships, segmenting supporters, creating personalized campaigns, and analyzing data, HubSpot’s CRM functionality is the go-to for over 4,000 forward-thinking organizations. 

5 Reasons Why Nonprofits Gravitate Toward HubSpot

  • Digital marketing becomes data driven: HubSpot’s CRM software helps you manage donor and volunteer relationships by tracking critical interactions, creating targeted communications, and leveraging A/B testing to track outreach effectiveness for future planning 
  • Donor segmentation is simple and organized: HubSpot helps you gain a more organized view into every donor and volunteer with segmented lists that group your supporters into clear categories, such as loyal donors, first-time donors, inactive donors, donors in specific locations, event attendees, and many others
  • You save time but don’t sacrifice quality: HubSpot helps you create messages that resonate and schedule them to automatically send to the right audience, at the right moment, for the most impactful interactions, thanks to accessible email and inbound marketing tools
  • There’s always something to learn and improve on: HubSpot helps you track your data in an easy-to-use dashboard to quickly identify opportunities to improve, whether website performance, email campaigns, social media management, or any other area of interest
  • The value far outweighs the cost: HubSpot helps nonprofit organizations that hold 501(c)(3) status by offering significant discounts on its tools, allowing them to operate at the scale of for-profit organizations without a huge budget barrier*

*With pricing, it’s always a good idea to check in with the HubSpot for Nonprofits website or contact the team to see what eligibility criteria might apply to your unique organization. 

Why Intentional Marketing Matters

Online giving opened up a new realm of fundraising for nonprofits beyond the scope of physical locations. It also reminded us of the sector’s constant rate of change and the value associated with intentional evolution. Today’s donors want to hear from nonprofits through the channels they prefer and use most often, such as social media, mobile web browsers, and apps. 

In today’s saturated digital landscape, you may feel like you need to be everywhere to prompt moments of inspiration to give effectively. While diversifying your nonprofit marketing strategy is key, the more critical piece of the puzzle is identifying the most effective, impactful places to dedicate your resources to achieve the largest return on investment for your nonprofit organization. 

Also, the importance of personalizing those touchpoints to make each supporter feel special cannot be understated. Marketing automation and quick email templates can help, but donors also know when they receive a robotic-templated message as a follow-up to their actions. 

So how do you present your cause in all the right places but maintain your personality and authenticity? 

That’s where connected fundraising comes in with tools like HubSpot. Get strategic about establishing and nurturing relationships with donors and confident you’re not losing the humanistic feeling that makes all the difference in your nonprofit marketing strategy.

 

Taking It Up a Notch With a Classy + HubSpot Integration

By now, you’re starting to see how impactful HubSpot’s data can be in fueling your supporters’ journeys from their first impression to celebrating their 10th donor anniversary. The Classy + HubSpot Integration, built by Lynton, helps you peel back a new layer of data-driven decision-making and growth.

Integrating Classy with HubSpot brings two critical systems together for change. Discover how. 

Let’s Take a Look

The biggest benefit of Classy and HubSpot platform integrations is unlocking new pathways for data to travel without requiring anything more from your team. 

Together, integrated data sets create richer insights that allow you to see the entire donor journey. So instead of simply tracking one element of their donor journeys, you receive a 360-degree view of supporters’ involvement. That means you can see marketing patterns that lead to your most successful campaign performance, areas of opportunity to promote an upcoming event, and communication prompts for a recurring gift.

Data on each interaction provides visibility into meaningful trends across your donor base and a reliable full view of individual activity despite how your community scales over time. This information leads to solid marketing campaigns and fundraising plans that reflect the needs and interests of each supporter in your network.

How to Integrate Classy and HubSpot

Organizations can integrate Classy by SyncSmart Integration to sync data into HubSpot’s contact activity and deals. 

Data fields that sync back and forth include:

  • Classy Supporters to HubSpot Contacts
  • Classy Transactions and Recurring Donation Plans to HubSpot Deals
  • HubSpot Contacts to Classy Supporters
  • HubSpot Deals to Classy Transactions
  • HubSpot Deals to Classy Recurring Donation Plans

Lynton is also here to help nonprofit organizations integrate Classy and HubSpot no matter the situation or customization required. 

See It in Action: Classy and HubSpot Case Study

The Cornell Feline Health Center is a proud organization using Classy and HubSpot for Nonprofits to drive its mission forward. With the help of Media Cause, a mission-driven nonprofit marketing agency, the Cornell Feline Health Center built a strong partnership between the two solutions that fit exactly what the nonprofit wanted.

The team wanted a change and sought out a multifaceted solution that offered:

  • An easy way to retain existing records of memberships 
  • A superior experience for members and staff administrators
  • A more efficient use of HubSpot to help track and scale the nonprofit’s programs
  • An improvement in functionality to make reporting simpler

With Media Cause’s expertise and onboarding, the Cornell Feline Health Center had three core campaigns, each with an optimized donation form, to boost conversion rates and gain access to cleaner data in HubSpot. 

Now, the organization has a holistic view of each member’s interactions from before the switch and even more insight as donors engage with the integrated systems. 

Real-time communication and reporting in HubSpot gives the Cornell Feline Health Center informed outreach and clarity about the most effective marketing workflows as it continues to scale.

cornell-feline

Get One Step Closer to Connected Fundraising

You know your story best and deserve the tools to get it out in a way that pulls in support for your greatest potential impact. A deeper understanding of your supporter relationships and intentional communications across email, SMS, content-rich landing pages, and other inbound channels help you do what you do best. Each interaction is an opportunity for donor retention and expanding your circle.

The teams at HubSpot and Classy are excited and ready to chat through any questions about the integration as you imagine how your donor journey can unfold with the support of connected data insights. 

Copy Editor: Ayanna Julien

 

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AI for Nonprofits: How the New Google AI Experience Will Impact Search Results https://www.classy.org/blog/ai-what-your-nonprofit-needs-to-know/ Wed, 21 Jun 2023 07:00:00 +0000 https://www.classy.org/blog/ai-what-your-nonprofit-needs-to-know/ In the ever-evolving world of digital marketing, search engine optimization (SEO) has long been the cornerstone of successful online visibility. Google, the dominant player in the search engine realm, has consistently introduced updates to its algorithms, shaping how it ranks and discovers websites.

Now, imagine a future where artificial intelligence (AI) takes center stage, revolutionizing the organic search landscape as we know it. With the introduction of Google’s groundbreaking new AI experience, the impact on organic search is nothing short of transformative.

In this blog post, we dive into the possibilities ahead, exploring how Google’s AI advancements will influence website rankings, user behavior, and the future of SEO strategies. Get ready to unlock the doors to a new era of organic search.

Google AI 101: Understanding the Basics

At its core, Google’s new AI experience leverages advanced machine learning algorithms and natural language processing capabilities to understand the intent and context of each query. It goes beyond keyword matching, aiming to provide users with more relevant and tailored search results.

This development marks a paradigm shift in how Google discovers websites and ranks them in organic search results—websites that align more closely with the user’s intent and offer high-quality content will likely gain visibility. Catering to the user’s needs is now just as critical as optimizing for particular keywords.

This means website owners and digital marketers like yourselves must adapt their SEO strategies to align with these new AI-driven algorithms to stay competitive in the ever-evolving online landscape.

So how do you do that? Let’s first dive into the AI experiences currently available to the public or offered in beta to understand what Google users can expect in the coming months.

Google Bard

There are currently two components of Google Bard: the standalone AI experience and the generative AI search experience.

Introducing Bard

Google Bard is a large language model (LLM) chatbot developed by Google AI. It’s an advanced technology that uses machine learning to generate human-like responses based on the provided prompts.

Bard’s standalone AI experience is still under development but already capable of things like:

  • Translating languages for easy comprehension
  • Answering detailed prompts in a clear, concise way
  • Generating creative content like blog posts, poems, code, musical pieces, and more
  • Working with other Google apps to help accomplish tasks more efficiently

Introducing the Bard AI Search Experience

Google Bard’s AI search experience offers a new way to search the web. It uses generative AI to understand the nuances of people’s queries better, leading to more precise results.

Google Bard AI search experience

When you search for something on Google Bard, you’ll see results like:

  • AI-powered snapshots of short, human-like summaries that provide a tailored response to users’ queries
  • AI-powered answers consisting of longer, more detailed responses to more complex concepts
  • Traditional search results that you’re used to seeing on Google, but now supplemented with the AI-powered snapshots and answers introduced above

Creating high-quality, relevant, and engaging content that satisfies user intent is more important than ever. Additionally, understanding how to optimize content for AI-driven search algorithms will play a crucial role in improving organic search rankings and driving traffic to your websites.

While that answer is still unclear, we’ll update this blog as we test the beta experience and identify the most effective strategies.

What to Expect With Google Bard’s AI Search Experience

So far, we see a few notable features:

  • Bard will answer commercial and informational queries
  • Bard will not answer “Your Money or Your Life” (YMYL) queries
  • Bard users can view the sources referenced to craft its summary within the AI snippet box
  • Bard users can expand the AI snippet box and see corroborated information in a line-by-line breakdown

When an AI response appears in search results, it pushes search engine results page (SERP) features, like featured snippets, images, videos, People Also Ask, knowledge panels, and organic search results, below the fold. This is significant because it confirms that the new Google AI experience heavily favors AI-generated results.

Google Perspectives

Like the motivation behind Google Bard, Google Perspectives leverages generative AI to help users navigate more effectively and discover the information they seek more easily.

Google Perspectives factors in the importance of what others have to say on a particular topic and feeds users long- and short-form videos, images, and written posts that people have shared on discussion boards, Q&A websites, and social media platforms relating to certain queries.

Google Perspectives

Generally, Google Perspectives appears in search when users may benefit from the advice or personal feedback of others regarding their query. For example, if you searched “Low maintenance houseplants” and tap the Perspectives filter, you’ll see a page of results with advice from other people, like personal stories told through videos or tips from commenters on Reddit.

What to Expect With Google Perspectives

In its current functionality, we see:

  • Google’s content ranking will show more “hidden gems” (comments in a thread, posts on an emerging blog, geo-tagged Instagram photos, etc.) through its Perspectives tool to source information that lives in hard-to-reach places
  • Google shares details about the creators of this featured content as well, such as their names and profile photos

Google’s Perspectives tool offers snackable content that exposes users to simplified, vetted responses to particular queries. Just like people seek advice from friends and family, they can now go directly online to seek trusted responses from real people who have advice, opinions, and experiences to share.

How to Proceed in the Age of AI

With all these changes, you may be thinking, or potentially might have heard, that “SEO is dead.” But in reality, SEO remains critical to a strong digital strategy, and companies that continue evolving and investing in SEO efforts will likely find success in the future.

Let’s dive into three ways your nonprofit can continue strengthening its digital performance in response to Google’s new AI search experience.

1. Join the Google Labs Waitlist

Google Bard, the standalone AI experience, is now accessible to all, but its generative AI search experience is still under development. To access the search experience and engage with the technology in beta, we highly recommend joining the Google Labs waitlist.

Beta-testing functionality comes on a first-come-first-served basis, meaning those who requested access to the experiment when the option first became available are those who were initially approved and are currently exploring the experiment.

The waitlist to join Google Labs is still open, so the general public can experience it themselves once approved. Immersing yourself in the technology is the quickest way to learn what it currently offers, how it functions, and how it’s changing the search landscape.

2. Lean Into Thought Leadership Content

Understanding how effective generative AI already is in creating short-form content based on specific prompts, it’s worth questioning how your nonprofit’s content will emerge through the AI noise to remain relevant online.

Organizations that provide timely, thought-provoking content with a deep level of expertise will likely not see as much of an impact on digital performance as those relying on top-of-funnel content intended solely to drive traffic.

Large language model chatbots, like ChatGPT, can now supply lower-effort content with incredible efficiency and relatively high levels of accuracy, so writers and marketers need to evolve. The goal now is to offer something readers can’t get from AI, which is genuine thought leadership content written by experts in the space.

3. Prioritize EEAT Guidelines

In the context of digital marketing, EEAT stands for experience, expertise, authoritativeness, and trustworthiness. Prescribed by Google’s search quality rating guidelines, these guidelines help human evaluators to assess search results.

While not direct ranking factors, these guidelines provide insights into the factors that Google considers critical for determining how to rank a website. And in the age of AI, content that adheres to Google’s EEAT guidelines will be rewarded for serving as a top-tier resource that’s trusted and informative.

Learning to Embrace the Future of AI for Nonprofits

When technology evolves as quickly as it has over the last decade, it’s normal to feel overwhelmed. The concept of AI seemed a distant reality for most, then quickly became a part of our daily lives. If you’re feeling that way, you’re not alone.

Although understandable to be hesitant about embracing change, whether due to fear or comfortability with your current strategies, nonprofits must start the learning process to stay on pace. Not only is this critical for your organization’s visibility, but it’s also necessary for safeguarding your mission and sustaining revenue despite this online evolution.

At Classy, we’re committed to real-time learning to share our experiences and recommendations with you. We’ve already begun conducting research on the topic of AI in the following articles and encourage you to revisit our blog as we update these existing pieces with new AI developments as the space continues to progress:

We look forward to learning together.

Copy Editor: Ayanna Julien

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Philanthropy Trends Report: The State of Modern Philanthropy 2023 https://www.classy.org/blog/announcing-new-philanthropy-trends/ Tue, 16 May 2023 07:00:01 +0000 https://www.classy.org/?p=21766 It’s an exciting day for nonprofit professionals who want a glimpse into today’s most impactful fundraising trends and the data to back them up. Classy is proud to release its annual philanthropy trends report, The State of Modern Philanthropy 2023: Creating Dynamic Journeys to Maximize Supporter Lifetime Value

Your daily decisions are some of the most influential in shaping the future of the social sector. The State of Modern Philanthropy 2023 makes those decisions simpler with over 130 fresh data points to guide you at every stage.

Confidently attract new supporters, convert them into donors, and retain their support for the long run with Classy platform data collected across 54,000 active campaigns.

Data to Navigate the Changing Giving Landscape 

Does the rate of change in online giving make your head spin? We get it. 

You may already know the key to growing a sustainable donation stream is offering authentic, memorable experiences to supporters online and offline. Even then, each time we turn around, there seems to be a new way to do it, like crafting personalized email appeals with artificial intelligence (AI) language tools

Based on insights from this year’s report, personalization and connection are critical to nonprofits’ donor acquisition, conversion, and retention strategies. 

The State of Modern Philanthropy 2023 has the data to help you reach the right donors in the right places at the right time to make the most significant impact possible.

Dive Into the Trends Shaping Philanthropy

This year’s report combines Classy platform data with insights from our parent company, GoFundMe, to give you the full picture of the giving landscape. Our combined giving community across these platforms sits at over 150 million donors, making Classy and GoFundMe the holders of the largest and most unique philanthropic data set in the world.

Regardless of where your focus is this year, the size of your organization, or your cause category, you’ll find relevant information that boosts your confidence about where to place your time and resources. 

Bonus: Unpacking the Strongest Results From the Leading Nonprofits

We’re also peeling back the layers on some of the highest-performing nonprofits on Classy to demonstrate what it looks like to lean into these trends strategically. 

  • 44% conversion rate for Feeding San Diego (3x industry average)
  • 13-point lift in conversation rate for V Foundation
  • 56% increase in donation volume for Many Hopes 

Build and Empower a Passionate, Active Community 

So are you ready to build your powerful, multifaceted donor experience to retain your loyal community? 

Choose where you want to focus as you land on our interactive report website:

  • Building community and engagement
  • Fundraising beyond your donation website 
  • Revealing patterns in donor retention

The Outcome: Keys to Lifelong Donor Relationships

At Classy, and in partnership with our GoFundMe community, we mine the latest insights across our platforms each year to inform how we build a comprehensive suite of fundraising experiences that best support nonprofits on a mission to raise more so they can do more. 

Take advantage of this year’s data and fundraising themes to identify how your organization can provide supporters with multiple ways to participate in and support your mission to grow relationships over time.

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INFOGRAPHIC: Data Reveals the Power of Recurring Donations https://www.classy.org/blog/recurring-donations-infographic/ Wed, 08 Feb 2023 08:00:00 +0000 https://www.classy.org/blog/recurring-donations-infographic/ Repeat giving and automated gifts set nonprofits up to scale and achieve goals in entirely new ways. Today, we review the lifetime value of loyal donors and the positive financial impact they can have on the health of your organization in an easy-to-navigate recurring donation infographic. 

Feel free to share these recurring charity infographics on social media or save them to build out your programs.

The Power of Recurring Giving

A recurring giving program is an unmatched source of predictable and sustainable revenue. Check out the key statistics highlighting the potential impact to your organization from strengthening your recurring donation strategy this year. 

Below, you’ll see data insights from Classy’s platform data and annual reports: The State of Modern Philanthropy and Why America Gives.

recurring-donation-infographic

Organizations who allow donors to give at a daily, weekly, biweekly, monthly, quarterly, semiannual, or annual frequency see incredible returns. The data shows the impact of having a recurring gift option on a donation site on attracting repeat donations. 

More than that, organizations constantly apply entrepreneurial thinking to establish recurring gift programs that model our 21st-century subscription economy. The better the experience you offer recurring donors, the more loyal they become to contributing a reliable income stream.

recurring-donation-infographic

The power of a recurring donation became further amplified when we had the opportunity to survey American donors themselves. While heading into the unknowns of 2022, donor loyalty  was incredible as they consistently returned to the same organizations and causes. 

This confirms that recurring donors not only show up to impact your current year’s revenue but also seek connections with organizations they can continue to support for years into the future. As we continue to navigate the impact of economic uncertainty on charitable behavior, it’s highly beneficial to have (and lean on) a cohort of reliable supporters.

recurring-donation-infographic

There’s always a new audience of donors ready to grow their support. It’s about how you engage one-time supporters and grow your donor relationships that lead to their commitment to a recurring donation. 

The more education you provide to donors about the benefits of giving small amounts over a longer period, the more potential you have to see your recurring momentum grow.

recurring-donation-infographic

When giving levels hit natural seasonal spikes, such as on Giving Tuesday or at year-end, recurring donation momentum follows. That’s why days like these or significant giving days for  your cause are optimal for outreach about recurring gift opportunities. 

People are naturally more inclined to make an impact and want to feel like they’re part of a larger solution. When you pair storytelling and a design template with the clear desired outcomes of an established fundraising goal, you have an open door to welcome and recruit passionate individuals that will be by your side for the long run.

Apply These Donation Infographic Learnings to Your Nonprofit’s Aggressive Goals

Consider how a recurring giving program can fit into your overall annual fundraising strategy for short and long-term gains. To help you envision what the results could mean for your organization, we packed each of these digital and printable infographic elements with recurring giving statistics and pointers on starting or strengthening the functionality of your recurring giving program.

Get more information or answers to frequently asked questions about recurring donations on Classy by requesting a demo

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5 Fundraising Trends to Watch in 2023 https://www.classy.org/blog/nonprofit-fundraising-trends/ Thu, 05 Jan 2023 14:00:38 +0000 https://www.classy.org/?p=20183 This past year, an international humanitarian conflict, major legislative changes, devastating natural disasters, and 40-year high inflation rates dominated headlines and our attention. These events raised demands for the nonprofit community and continued to fuel donor engagement, ignited by unprecedented supporter activation during the height of the COVID-19 pandemic. 

Throughout the year, we heard insights from our nonprofit and technology ecosystem partners that deepened our understanding of the social sector’s opportunities and challenges. We also conducted research, shared in our annual reports, including Why America Gives and The State of Modern Philanthropy. Now, as part of GoFundMe, we have the broadest view of the donor landscape to date that accounts for both giving to individuals and organizations. 

I’ve synthesized all of these inputs into five trends I believe nonprofits can use to create proactive strategies to raise more in 2023.

1. Fundraising Will Require Precision to Break Through the Noise 

Donors are often inundated with requests to give. Consider the requests that occur on an average day—donors round up a bill at the grocery store, receive a donation appeal through email or social media, and find a pamphlet about an organization in the mail. With so many methods of giving available to today’s donors, you will need to break through the noise with a clear message on the specific channels that reach your donors. 

Focus on data specific to your target cohort of donors to inform which interactions are most likely to result in donations. Understand your target donor’s daily interactions and influences, such as their demographics, careers, location, friends, and family. We’ll see advanced A/B testing capabilities, marketing analytics, and audience segmentation become a greater focus in the coming year as organizations hone in on their ideal audience. New opportunities will be unlocked when a nonprofit knows where to place an impactful message and what that message should contain to align with its donors.

2. Privacy Controls Will Promote High-Quality, Targeted Marketing

As privacy controls increase, creating valuable, relevant content that targets the right audience becomes even more critical. Generic marketing campaigns will lose their effectiveness in garnering donors and hinder your ability to reach and engage the right audience. We’re already seeing this in some of our marketing channels. Take email, for example. It’s becoming even easier to unsubscribe to emails as Apple and Google develop banners at the top of emails and prompts asking whether you’d like to unsubscribe. If your content is not customized toward the individual, you risk getting left behind.

Additionally, as more donors opt out of data sharing, the transparency of how and where you are using their data will become even more important. By increasing the trust in your organization and your data collection practices, you’ll make donors more likely to share their data willingly. 

3. Charitable Funding Will Further Diversify

We see the definition of giving evolving to include not only monetary donations to organizations but also donations given directly to individuals through platforms like GoFundMe, and non-monetary gifts such as volunteering time or the contribution of goods. 

As younger generations inherit wealth from Baby Boomers, the ways in which these younger generations give will continue to evolve the fundraising landscape. We see, for example, that Millennials and Gen Z prefer to be more hands-on with their investments, with 40% checking their investments daily

As these generations earn and inherit wealth, they are more likely to turn to investment-based giving such as stocks, Donor Advised Funds (DAFs), and cryptocurrency. Almost 60% of millennials own cryptocurrency or stock, and younger generations are twice as likely to give through structured vehicles, such as DAFs. As you look to diversify fundraising at your nonprofit, donations through DAFs and non-cash gifts will be particularly fruitful as those gift options are typically much larger than cash gifts from the same donor.

4. Nonprofits Will Trade Custom Platforms and All-in-One Solutions for Comprehensive, Specialized Partners

The time, development, and resources required to maintain and keep up with the latest technological advances will outweigh the benefits of a customized solution.

Similarly, while the concept of an all-in-one solution seems to promote ease of use and time-savings, in reality, it lacks the flexibility and agility to match the pace of technology. An all-in-one solution’s reliance on acquisitions means that its extensive list of products does not easily integrate and is not updated to keep up with the latest advancements.

In its place, nonprofits will lean on platforms that take the middle path between point solutions and all-in-one approaches. Organizations will prioritize platforms that balance breadth and focus to drive key efficiency gains. This balance will help avoid the complexity tax associated with managing disjointed solutions and donor frustrations bred from platforms trying to be everything at the cost of innovation and user interface.

5. Technology and Partnerships Will Drive Human Resource Priorities 

You might be one of the many nonprofits seeing heightened competition (and turnover) of employees with expertise in high-priority tools and systems. By leaning on technology and partnerships to automate tedious, day-to-day operations, employees will be more likely to stay on board. 

Instead of seeking out talent based on experience with the platform, we’ll see talent sought out for their expertise in a particular function, such as digital marketing, and their ability to learn quickly as systems innovate. Organizations will look for intuitive, easy-to-adopt technology to pair alongside strong digital partners that support scalability in areas such as SEO, paid advertising, email marketing, and A/B testing. 

Nonprofit Fundraising Trends and the Year to Come

I see so much opportunity ahead for the social sector. As a new generation of donors emerges to redirect fundraising efforts, as the pace of innovation quickens for fundraising technology, and as the way you build relationships with donors strengthens from precise, targeted marketing, 2023 holds a lot of promise. I hope these trends help you take on the new year with a critical lens to identify new ways to support your nonprofit and raise more for your mission.

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4 Current Events That Got Donors’ Attention in 2022 https://www.classy.org/blog/donations-current-events/ Wed, 14 Dec 2022 08:00:39 +0000 https://www.classy.org/?p=25074 Current events call donors to action. And nonprofits can harness this to attract donations from more individuals by understanding how timely need influences the donor psyche.

Today, we’ll recap the four events that caught donors’ attention in 2022. We’ll also dig into the learnings from the causes that sparked donors’ passion for timely giving to help you prepare for the year ahead.

Top 4 Current Events That Caught Donors’ Attention in 2022

Why Timely Giving Taps Into Donor Motivations

Over a quarter of donors expect to donate more in 2022 than they did in 2021. Of those donating more, the top motivations are a recent increase in:

  • Donor passion
  • Donation need
  • Cause relevance

All this helps us understand why timely events and current challenges in the news move donors to get involved. That’s especially true as we see the newest donors show a particular interest in charity. Here’s how 2022 events shaped giving and continue to impact donors looking to make a significant impact.

4 Current Events That Got Donors’ Attention in 2022

1. International Human Rights Crises

ukraine-war

In February, Russia deployed its military into Ukraine and established the start of a lengthy conflict. The events influenced a global humanitarian crisis, with many Americans stepping up to help.

As of March, we identified 16 organizations that responded to the crisis, collectively raising over $105 million on the Classy platform, which was only the beginning. One of those organizations is World Central Kitchen, a nonprofit that believes food is a universal human right. The organization has been working across Ukraine in 2022 to serve over one million meals daily to those in need.

International human rights crises are the top cause that loyal donors gave monetary support to in 2022 as of September, ahead of the giving season. Our Why America Gives report also shows that it’s one of the top four causes that donors who didn’t donate yet will contribute to before 2022 ends.

2. Climate Change

current-events

 

Climate change isn’t new in 2022. However, it’s gaining importance and focus as we learn more about ways to make a difference in the environment.

The more education people have about the impact of climate change and ongoing legislation shifts, the more they prioritize ways to impact the future. In fact, the Pew Research Center found that in 2022, “42% of US adults say dealing with climate change should be a top priority for [the] President and Congress to address.”

One of our 2022 Classy Award winners, Trees for the Future (TREES), is one of the many organizations doing incredible work to combat climate change through sustainable land use. Its focus on building vibrant economies, thriving food systems, and a healthier planet consistently attracts new attention from passionate donors.

Climate change is the cause that most donors plan to donate to by the end of 2022. It’s also the top event that Gen Z donors plan to donate to, with over half sharing their expectations to make a monetary contribution.

3. Reproductive Rights and Women’s Health

current-events-4

The overturn of Roe v. Wade brought gender equality and women’s rights to the forefront this year. One example of how these conversations increase among younger generations is the Washington Post analysis of over 1,000 viral TikTok videos using the #abortion hashtag.

Exhale Pro-Voice is one organization focused on women’s reproductive rights and support for their well-being. The nonprofit provides nonjudgmental, supportive, peer-pro-voice counseling around topics including abortion.

We can expect to see the momentum around reproductive rights and women’s health continue into the giving season and new year. In fact, Why America Gives shows it’s the second cause loyal donors plan to donate to by the end of 2022 and the top cause passive donors will act on by the end of 2022.

4. Disability Rights

current-events

Amplifying the voice of underrepresented groups continues to be a reason for people to take action. And people are ready to create change as diversity and inclusion continue to be a priority.

According to the Centers for Disease Control and Prevention’s 2022 numbers, 61 million adults in the US are living with a disability. That number equates to one in four citizens. As with other current events that caught donors’ attention this year, the more conversations around disability rights, the more people look to play their part, especially younger generations.

Gen Z donors are at least 2x as likely to have donated to disability rights in 2022 than other generations. Additionally, as we look to the end of the year, Millennials are the most likely to donate again to disability rights before 2022 comes to a close. Our report also saw that 31% of both generations have plans to contribute to disability rights in 2023.

The Power of Current Events to Activate Gen Z Donors

As noted in the current events above, Gen Z, who leans more heavily on social media and influencers, is often more motivated to give to a current event compared to other generations.

Not to mention, younger generations like Gen Z engage with channels differently than other generations. Coupled with the spread of news about a crisis in seconds worldwide thanks to social media, this means that causes that matter to Gen Z tend to get more exposure.

This increased exposure to screens represents more opportunities to get in front of Gen Z and tap into their passion for supporting those in need. However, they also live out their values of charity differently than older generations.

In fact, Gen Z is most likely to say that they donate because they feel it’s just the right thing to do. And if offered a job in an organization with a mission they care about, 30% of Gen Z members would agree to a 10-20% pay cut.

Below, we’ll wrap up ways to capture this timely interest and target new generations.

How to Prepare to Capture Timely Donations

Keep Your Site Up to Date

Why America Gives 2022 found that a nonprofit’s website is the top place Gen Z donors go to do research before deciding whether to donate. It also found that 69% of Gen Z and Millennial donors prefer to hear from organizations on social media.

After a timely event or crisis, include language about your nonprofit’s efforts to address the event or crisis on every channel you talk to donors. You can place imagery or a short text blurb in a place that greets any page visitor to your website, indicating their contributions are going to a timely need.

Next, you can continue the experience through your donation page with consistent language and branding specific to the current event you’re supporting.

Lastly, you can also consider a pop-up modal that brings your donation form to your homepage to capture attention quickly and convert a researching visitor to a donor. Embedded giving experiences like this have resulted in a 56% year-over-year donation volume increase for the Many Hopes organization.

Make It Easy to Donate

Whether through your website or social media, donors who find your organization while looking to take action after a timely event need a simple way to do so. That’s where your donation page comes into play.

Think about ways to keep donors moving through your process:

  • Quick payment: The more you can collect donations through mobile apps, digital wallets, and bank transfers, the more likely you can get donors to donate. In fact, Gen Z is most likely to prefer PayPal or Venmo compared to all other payment types.
  • Completion steps: Think about every form field you require donors to fill out before completing a donation. If you reduce that down only to what’s necessary, you can cut the length of the process and get to conversion faster.
  • Giving options: When you offer donors a simple way to select a donation amount that works for them, you help them feel confident about the transaction based on their current budget. Let people know small contributions are still encouraged by placing suggested amounts on your page to keep people from leaving if they feel they can’t make a big enough impact.

Keep Passionate Supporters Coming Back

As we look ahead to the new year, donor retention is a top priority. A straightforward way to give donors offering timely support an opportunity to come back is to provide a recurring gift option on your donation page or donation pop-up modal.

In fact, Why America Gives found that loyal donors with proven records of repeat donations are twice as likely to keep their donations the same even if they’re experiencing a financial stressor compared to passive donors. Gen Z and Millennial donors, in particular, are also more likely to account for charitable donations in their financial planning than other generations.

By capturing loyalty through a recurring donation to a cause a donor is already passionate about, you can lay the foundation for the start of long-term relationships.

Stay Ahead of Today’s Donor Behavior Trends

Each year, Classy evaluates the psyche and expectations of today’s US donors. Our goal is to help nonprofits like yours understand what drives donations and how to build lasting relationships with donors based on their sentiments around giving in the current landscape. Discover what we found this year in our latest release.

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7 Takeaways From Donors About Charitable Behavior in an Uncertain Economy https://www.classy.org/blog/donation-expectations-economy/ Wed, 16 Nov 2022 08:00:40 +0000 https://www.classy.org/?p=24896 No one thought interest rates would spike to fight 40-year-high inflation rates and the word recession would pop into headlines weekly in 2022, but here we are. Then there’s the confusion about how charitable giving changes as the economy shifts, which is also real.

Uncertain times can either ignite people to help the rising demand for support or cause them to pull back. To get the clarity nonprofits seek, Classy surveyed 1,000 US donors. Unsurprisingly, our report found that the 2020 pandemic introduced an air of resilience in uncertain times that showcased the strength of the social sector and those who fund it.

Whether it’s an unforeseen health crisis or a changing economy, our data continuously points to donors who do their best to give when their communities need it most. Here, we’re digging into our September 2022 survey of 1,000 nationwide donors to showcase their shared takeaways about how the economy impacts their giving behaviors.

7 Takeaways From Donors About Charitable Behavior in an Uncertain Economy

1. Donors Are Concerned About the Economy

We found that nearly half of US donors share a pessimistic view of the economy. And while the remaining group of donors is mainly neutral, we see that 29% still have optimism for what’s to come.

Uncertainty of any kind in the economy is likely to cause concerns, significantly when prices are rising around us. People are exposed to constant news coverage and projections that seem to share different forecasts for what’s to come, which can also cause people to air on the side of caution.

However, as you go through these takeaways, you’ll see that charitable giving isn’t always a reflection of how a donor views the economy.

2. The Majority of Donors Made Changes to Their Lifestyle

It’s natural to see people take proactive steps to secure their financial position, especially in times of economic uncertainty. It’s crucial for nonprofits to understand this when crafting appeals during economic fluctuations.

We saw that 77% of donors made financial changes to their lifestyles in response to the economy, with 22% making changes they considered significant. Bloomberg’s insights mirrored this, showcasing that US consumers are considering a tighter spending budget for the 2022 holiday season.

While for-profits may see significant changes in how people spend their money, nonprofit organizations could see daily spending cuts in donations.

3. The Cost of Giving Doesn’t Mirror the Cost of Living

Americans are stepping up to meet the increased demand for support from nonprofit organizations and seeing the importance of their contributions. Coming in at the highest percentage we’ve seen in the last four years, 90% of US donors plan to meet their generous giving levels from 2021 or increase it for the 2022 season.

And when more communities need support, the call to help seems to resonate more with donors who see an opportunity to make an impact. So despite constantly changing financial situations, it’s still critical for nonprofits to consider asking for donations. What we hope you take away, however, is that donors are ready to help when they find organizations they trust and rely on to help solve challenges that resonate with them.

4. Many Donors Intentionally Save Money to Donate

Wonder why we see increased giving potential as more donors express concerns over the economy? It makes more sense when you see how they make their donations possible, even in times of financial strain.

We saw that 39% of donors made minor changes and sacrifices in their daily expenses to ensure they had funds to donate in 2022. Across the board, we also saw that over half of donors plan for donations in their budgeting.

Understanding how US donors prioritize their giving behaviors over their personal costs gives us a window into why they continue to give. Next, we’ll share a deeper look into the internal motivations that keep charitable giving top of mind.

5. A Subset of Passionate Donors Will Increase Contributions

Over a quarter of all US donors plan to give more in 2022 than they gave in 2021. We asked that group of donors why they plan to donate more to help nonprofits craft thoughtful, relationship-building strategies.

The Top Reasons Donors Will Give More in 2022

  1. The donor’s passion recently increased
  2. The need for donations recently increased
  3. The cause’s relevance recently increased

This year’s report also separated loyal donors, who give a recurring gift or gave at least three times in the past five years to the same organization, and passive donors. Loyal donors not only plan to give donations 4x the amount that passive supporters plan to give in 2022, but they’re also more resilient in the face of financial stress.

As you dig into the full report online, you’ll see just how to connect with loyal donors and ways to convert passive interest into long-term relationships that can sustain your organization through any future uncertainties.

6. Options Keep Donors From Canceling Donations

Not all donors can continue to give at the amounts they might have if their financial situations hadn’t changed. Still, it’s essential to see that many will change their donations over canceling them entirely.

When you think about recurring contributions, in particular, each cancellation regularly impacts the predictability of income. That’s why we asked donors what would prevent them from canceling a monetary donation.

The responses show that donors would not cancel if the organization offered them the ability to change the donation amount (e.g., reduce the donation by 50%) or the donation frequency (e.g., bimonthly to monthly). These small changes add up when you can retain donors through more challenging times and invite them back to give more as they feel comfortable doing so.

7. Donors Are Showing Nonmonetary Support

There’s value in the way donors step up to the plate to provide nonmonetary support too. In fact, 56% of surveyed donors have already shown nonmonetary support to organizations they feel connected to or plan to by the end of 2022.

Why America Gives showed everything from volunteering time and physical goods donations to advocating to spreading awareness of a cause from today’s donors. This is why it’s a great time to lean on supporters to fill gaps through volunteer time and food or clothing donations. That way, you’re still building relationships and igniting their inner passion for helping, keeping your organization top of mind when they talk to their friends and family or decide to donate a monetary donation again in the future.

Build Loyalty That Outlasts Economic Fluctuations

As you build your new year strategies and determine the best way to stay connected to donors, we’re here to help. Find all the insights we’ve shared here today and so much more to help you foster loyalty among new and existing donors in Why America Gives 2022.

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Today’s Donors Share New Giving Intentions and Motivations: Why America Gives 2022 https://www.classy.org/blog/announcing-why-america-gives-report/ Thu, 10 Nov 2022 08:00:27 +0000 https://www.classy.org/?p=19751 America is activated, impassioned, and determined to give back this year.

In just one year from Classy’s last US donor survey, the country faced an international humanitarian conflict, controversial legislative changes, devastating natural disasters, and 40-year-high inflation rates. These all raised the demand for relief from nonprofit organizations and some important questions about how individual donors would take action to continue funding that crucial work.

Before heading into the busiest season for online donations, we went right to the source for clarity: 1,000 U.S. donors shared their charitable giving plans, loyalty to organizations, and motivations.

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Giving Intentions From 1,000 of Today’s US Donors

Hearing directly from today’s donors helped us glean new insights for nonprofits looking to establish relationships that result in long-term support. And while digging into the psyche of donors who contribute monetary gifts to nonprofits and individuals, we saw just what distinguishes loyalty and passive support.

With that, we measured the impact of economic uncertainty and timely events on expected giving patterns, emotional drivers, preferred relationship-building channels, and what establishes deep connections to nonprofits.

My trust and excitement levels are a function of the results I see from a charitable cause. When I see good being done by one of the organizations I contribute to, I am much more inclined to give more in the future.

Surveyed US donor

Baby Boomer, Male

An Optimistic Outlook on Loyalty in Economic Flux

Why America Gives 2022 found that while Americans remain ready and committed to making a difference with their wallets, major donors still outpace individual households in giving monetary donations to nonprofits across the sector.  Still, our report findings offer an optimistic view into how donors help to solve challenges that make them feel passionate.

Here’s what the data shows:

  • America is activated to make a difference, with 90% of US donors willing to give the same as in 2021 or more by the end of the year, despite nearly half sharing a pessimistic economic view
  • Loyal donors are the key to long-term results, expecting to donate at levels 4X higher than passive donors and showing more resilience when faced with financial stress
  • Passive donors are looking for organizations to match their values, with 59% who give to an individual in need seeking more information about charities that support a similar cause
  • The generational divide changes giving expectations and the way nonprofits can retain loyalty among donors of all ages

What to Expect From Future Giving Behaviors

While expectations for charitable giving are strong as we close out 2022, the prospects going forward are equally promising. This is especially true as loyal donors are eager to donate again to causes and organizations they feel passionate about in the new year. With that, we hope you’ll use our findings to foster your strongest community of support yet.

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8 Nonprofit Website Best Practices (Plus Examples) https://www.classy.org/blog/heres-what-you-need-to-build-a-great-nonprofit-website-includes-examples/ Wed, 02 Nov 2022 07:00:00 +0000 https://www.classy.org/blog/heres-what-you-need-to-build-a-great-nonprofit-website-includes-examples/ Building a nonprofit website is more than having a place where supporters can make online donations. By following nonprofit website best practices, you have a chance to showcase your brand in an impactful way, telling a story that encourages people to give.

Shaping your nonprofit’s narrative through a website requires thoughtful content and user-friendly functionality. Below, we’ll walk you through eight nonprofit website best practices that cover these needs. We’ll also share some nonprofit website examples to inspire you to build a nonprofit website or revamp your existing one.

1. Incorporate an Action-Oriented Modal

A modal on a nonprofit website is a pop-up box that temporarily deactivates the page a visitor navigates to and presents them with an action. The visitor can close the window and return to the original page or choose to complete the action, which returns them to the page.

There are many actions your nonprofit website could include in a modal, such as a:

  • Link to registration for your upcoming event
  • Streamlined donation form or donation site
  • Subscription form for your email updates

And since modals encourage immediate action, customers can see a median conversion rate improvement of three points after implementing one on their nonprofit website, according to Classy’s platform data. This ultimately equates to 28% improvement in revenue per site visitor.

Many Hopes, a nonprofit that equips children to become changemakers in their communities, used a modal on its nonprofit website to promote an upcoming gala event. The modal showcased the colorful branding of the event, some quick facts about it (date and location), and a button to click for details and tickets.

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This feature on its nonprofit website encourages supporters to attend who may not have otherwise known about it before. It does so while offering an easy way to navigate to more information.

2. Optimize for Influxes of Mobile Traffic

Based on findings from our annual report, The State of Modern Philanthropy 2022, donors are most likely to land on campaign pages from a phone. Even further, all campaign types receive about half (if not more) of their traffic from mobile.

Given these statistics, it’s best practice for nonprofit websites to be mobile-friendly. This is especially true on key dates like Giving Tuesday, where nonprofits likely see an influx of mobile traffic from social media campaigns, email marketing, and other outreach efforts.

To offer an easy mobile donation experience, ensure your nonprofit website has:

  • Reduced required textbox fields when donating for easy  navigation)
  • Decreased image sizes to speed up page load times
  • Clear, bold buttons and calls to action for accessibility
  • Increased font sizes and minimal text for easy reading/skimming
  • Responsive web design that adjust on any screen size

As you can see in the screenshot below, Many Hopes employs a responsive nonprofit web design, so its event modal works on a smaller smartphone screen and a desktop.

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3. Spotlight a Clear Donation Button

Your donation button is your primary call to action, so you want your supporters to identify and navigate to it easily. Some best practices for incorporating your donation button on your nonprofit website are to:

  • Make it stand out by using a color that contrasts with the rest of your page
  • Check that it links to the correct page and that page loads quickly
  • Include it on every page of your website, typically as the top header
  • Use brief, clear text, such as “Donate,” “Donate Now,” “Give,” “Give Today,” or “Support Our Work”

You can also get more creative with your donation buttons based on different campaign types, such as using impact blocks, pairing them next to a fundraising thermometer, or adding an option to become a fundraiser beside them.

Feeding San Diego, a hunger relief and food rescue nonprofit, includes its donation button at the top of every page via its header. It also includes the donation button as the first call to action on its homepage, next to on-brand imagery and short, impactful text that reads: “Help end hunger through food rescue. Every $1 helps provide two meals.”

donation-website-7

This strategy helps visitors to Feeding San Diego’s website quickly see where and how they can donate. The donate button is also a noticeable blue against a white backdrop and is paired in both locations with a Find Help button of the same size in a contrasting orange color. This draws attention to the area where the buttons are while also putting the nonprofit’s mission of helping people in need front and center.

4. Track Donor Interactions

To know how donors interact with your nonprofit website pages, you can set up a Google Analytics 4 (GA4) property. This allows you to collect data to understand better how your supporters navigate your content and, ultimately, your donation page.

Having this data can inform future improvements to your website, help reveal the days and times supporters visit your site most, and disclose what your top referral sources are. You can learn all about the feature and how to set it up on your nonprofit website through Google’s resources.

5. Include Compelling Visuals

Supporters don’t tend to visit your nonprofit website looking to read a novel. Instead, they want to see and feel your story quickly. You can accomplish a lot of your storytelling through visuals. In particular, you should aim to use:

  • On-brand imagery: Use photos and graphics in line with your overall style. For example, if you typically use black-and-white photos, incorporate that same aesthetic on your website. Keeping imagery consistent with your design helps donors identify you.
  • Informative infographics: Incorporate infographics to tell your story. For example, if you highlight the top five data points from the past year that show your impact, consider representing each of those measures with a simple graphic.
  • Emotionally appealing photos: Choose photos that touch the hearts of your supporters. For example, highlight the people you’ve helped or the animals still in need. You could also select photos that evoke the emotion behind your mission’s work.

Concern Worldwide US, a global nonprofit working to end extreme poverty, uses short videos to fill the banner image on its website’s homepage. These four videos cycle through and show how the nonprofit empowers people through community projects, provides clean water to community members, and offers services to young children. These videos captivate and place website visitors right into the story of its work.

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The nonprofit also overlays brief text and a button to learn more on the imagery to move a website visitor straight from the videos into taking action to help.

6. Highlight the Problem Your Nonprofit Solves

When a prospective donor visits your nonprofit website to learn more about your work, one of the first things they want to know is what problem exists that makes your nonprofit necessary. By clearly stating the problem on your website, donors can quickly connect to your cause and whether it’s an issue they want to help make a difference.

The Anti-Defamation League (ADL), a nonprofit antihate organization, centers the problem it faces by including a recent headline on its nonprofit website that describes documented incidents of antisemitism. You can learn more by clicking the button below the headline or keep scrolling to see more issues ADL works to address. This approach of centering the problem first, helps connect donors to the topic right away by evoking an emotional response to a subject they want to see addressed.

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7. Center Your Nonprofit’s Solutions

Not only do visitors to your nonprofit website need to know what the problem is, but they also want to know what you do to solve it. Including highlights of your solutions on your homepage helps prospective donors understand the steps you take to make a difference—and where they fit into that process.

California Central Food Bank, the largest nonprofit food bank in Central California, uses short text on its homepage that touches on the problem but focuses on its solutions for it—how it addresses that problem. The first thing you see on its homepage is: “We fight hunger by gathering and distributing food, engaging in partnerships that advance self-sufficiency, and by providing community leadership on issues related to hunger.”

It also provides an easy way for donors to become a part of that solution, writing that “$1 can help provide up to 4 meals.”

donation-website-2

The homepage then includes quick, colorful blocks to navigate for more solutions, including finding food, volunteering, and donating. This approach pulls donors in by showing them how they can be the solution to a problem. Nonprofit websites that take a solution-first approach draw in donors through evoking a sense of hope.

8. Showcase Your Nonprofit’s Impact

Finally, supporters visiting your nonprofit website want to see that you’re accountable in how you say you address a problem. They want to see the impact you’ve already made and your plans for the future. By showcasing key impact data from your work, it helps visitors to your website see their donation to your cause would be a good investment.

Second Harvest Foodbank of Southern Wisconsin, a nonprofit working to end hunger, uses impact blocks on its homepage highlighting key statistics on how the nonprofit turns donations into impact. For example, it notes that it provides 50,000+ meals daily in a block showing a photo of its warehouse pantry.

Below the impact blocks, it has a link reading: “See where your money goes!” This creates a direct connection for website visitors between their donations and the impact they can have.

donation-website-example-1

Use Nonprofit Website Best Practices to Drive Traffic and Engage Donors

Nonprofit website best practices focus on the user-friendliness of your website and its ability to tell a compelling story about your work. By implementing these strategies, you can help your nonprofit increase engagement with your website and convert more website visitors into donors.

However, don’t stop there—always thoroughly test your website after making any changes to ensure the user experience remains smooth.

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Boost Donor Engagement on LinkedIn With Insights From Our New Report https://www.classy.org/blog/donor-engagement-linkedin-report/ Tue, 01 Nov 2022 15:00:57 +0000 https://www.classy.org/?p=24647 LinkedIn isn’t just for building your network, driving traffic, or meeting your next hire. Donors use the platform to research organizations and discover donation and volunteer opportunities—and we have the data to prove it.

Classy’s latest platform data shows that LinkedIn is the highest-converting social media platform for nonprofits. In addition, LinkedIn for Nonprofits reveals that LinkedIn members are 56% more likely than the average internet user to donate to a nonprofit.

That means your audience is on LinkedIn, and engaging them to support your cause is easier than you might think. To help you build meaningful connections with your supporters, we joined forces with LinkedIn for Nonprofits to conduct a joint report. We surveyed 1,000 US donors with active LinkedIn accounts to glean insights that’ll help you better understand how your nonprofit can use the channel to build donor relationships.

According to our new joint report, 71% of surveyed donors follow at least one nonprofit organization on LinkedIn, and 28% visit the app (on mobile or desktop) daily. Potential donors use LinkedIn frequently—and we want to help you learn how to engage with them.

Below, we’ll show you a few donor engagement strategies we found based on insights from the report.

Use LinkedIn to Build Connections and Drive Donor Engagement

Your potential donors are on LinkedIn, and they’re already searching for nonprofits to support. According to our joint report, 42% of respondents use LinkedIn to research companies or organizations, and 26% discover donation opportunities on LinkedIn.

Complete Your Company Page

To help donors find your nonprofit, you’ll need a LinkedIn Company Page—but don’t stop there. Donors ranked having a complete, up-to-date LinkedIn Page as the most important factor motivating them to donate to a nonprofit. 

Complete your LinkedIn Page with the details donors need to find donation and volunteer opportunities and learn more about your organization. Then, keep your LinkedIn Page accurate and up to date by reviewing your content and details at least quarterly.

Share Relevant Content

Regularly post relevant content for your supporters on your LinkedIn Page. After all, family members and friends are the most impactful relationships in donor decision-making—that means your supporters will have a better chance of engaging your target audience than your LinkedIn Company Page. So encourage your supporters (e.g., employees, donors, and volunteers) to share on your behalf to spread awareness and drive donor engagement.

Streamline Giving

Our survey found that having a Give button on your LinkedIn Company Page is one of the most important factors in motivating a donor to donate. Make it clear and easy for donors to donate to your nonprofit and find volunteer opportunities by taking advantage of your call-to-action button at the top of the page. Then, provide links to donation pages and share events where volunteers can get involved.

Find More Donors on LinkedIn

How likely are donors on LinkedIn to post about a cause they care about, and what’s the best way to reach out to them on the platform? Should you focus your efforts around major giving days, and how you can boost your odds of showing up on your followers’ feeds?

We had the same questions, so that’s what we asked respondents in our joint report with LinkedIn for Nonprofits. 

Read The Donor Engagement Report: How Nonprofits Can Build Meaningful Connections on LinkedIn to find the insights you need to make data-backed decisions. Our joint report provides data from our survey and donor engagement strategies to help you put them to good use. 

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How Nonprofits Find Resilience in Times of Economic Downturn https://www.classy.org/blog/nonprofit-economic-resilience/ Fri, 22 Jul 2022 11:00:31 +0000 https://www.classy.org/?p=23902 When the economy fluctuates, it’s more important than ever to have a reliable set of tools and processes that maximizes a nonprofit’s impact.

This year, inflation has hit a 40-year high, and financial institutions like Bank of America predict a mild recession.

We know this is top of mind for many organizations, so we’ll discuss how leaders in the social sector can look to their existing fundraising programs and technology, alongside data from past recessions, to develop a sustainable long-term strategy.

A Look Back on the Nonprofit Outcomes During a Recession

By now, many investors, organizations, and individuals have already felt the impact of inflation. When you tune into the news and hear of the possibility of a recession, it’s natural to experience fear or concern as a first reaction. We’ll help you explore the reality that shows more optimism than you’d think.

Nonprofit Quarterly completed a thorough analysis of the Great Recession that helps us learn from the past. The findings include a measure of nonprofit stability before, during, and after the hardest-hit years of 2007, 2008, and 2009. While some nonprofits ultimately shut their doors, there were also several positive outcomes to share.

The Financial Impact of the Great Recession

Total social sector revenue saw a slight decline

Between 2007 and 2010, total revenue across charitable organizations outside of higher education and healthcare organizations declined by 1.6%.

The number of organizations that halted operations increased slightly

Between 2008 and 2010, the number of public charities (outside of higher education and healthcare organizations) that closed increased by 3.3% from the previous period (2005 to 2007).

Optimism for Nonprofit Resilience in Recession

Assets grew by 27.6% in higher education and healthcare organizations

Between 2007 and 2015, higher education, hospitals, and healthcare organizations grew assets by 27.6%, while all other nonprofits gained 12.3% in assets.

When we look deeper into these cause categories related to recent donation trends, we also see healthcare and education in the top three cause categories donated to in 2021.

Revenue increased by 6.3% for human services organizations

Between 2007 and 2010, human services organizations experienced an overall increase in revenue. Specifically, these nonprofits saw a 15% increase in donations.

Human services also remained the top cause category to donate to on Classy in 2021, in addition to healthcare and education.

4 Focus Areas for Resilience in Economic Fluctuation

When nonprofits plan for moments of economic fluctuation by establishing long-term goals and using their existing technologies to the fullest potential, they can continue to maximize their impact.

1. Define Desired Long-Term Outcomes

We know it’s second nature to think about your annual plans and budgets. We’re proposing a shift to seeing each year’s goals, tactics, and results as part of a larger 3 to 5-year strategy. On average, recessions since 1900 have lasted about 15 months. By shifting to a 3 to 5-year strategy, the recession is no longer a focal point, but part of the natural ups-and-downs of a long-term strategy.

Establish Long-Term Goals

Economic status aside, envision your ideal organizational outcomes five years from now. Write down where you want to be, what you want to achieve, and what you need to get there.

Just as important, make sure you communicate your long-term vision to your donor base to continue their investment in your organization, even if they need to reduce their monetary giving for the short term.

Work Toward Tangible Milestones

Identify smaller milestones to hit in the next one, two, and three years that are grounded in the ideal outcomes you’ve set for your organization.

Breaking out of the one-year focus can help you feel more confident in achieving the much larger goals at play. As each year’s plan unfolds, your clear path to earning more will develop. Focus on the most thoughtful short-term decisions you can make today to bring your larger goals to light.

2. Establish Your Sound Technology Foundation

The tools your team uses determine what they achieve every hour of the day. Using your technology to the fullest shapes your ability to connect with and convert the right people in this year’s campaigns. You can then sustain your revenue to achieve your long-term outcomes.

This is the time to feel confident that your fundraising tools are powerful, flexible, and secure. If you already have software, use it to its fullest potential. If you don’t, consider the best solution to invest in now to benefit your organization for the long term.

That means looking at key factors such as:

  • Extensive payment options
  • Recurring management capabilities
  • Flexible campaign design and branding to tell your story authentically
  • A secure platform that protects data and offers a reliable infrastructure

Build the Trust That Retains Supporters

When people need to lessen their contributions due to economic strains, they will likely prioritize relationships with organizations they trust. Outside of meaningful communication, secure and seamless donation experiences are huge factors in building that trust.

Trust, security, and stability can support donor conversion, retention, and engagement rates. These outcomes will be significant as you focus on the donors who are prepared to continue giving and potentially increase their contributions.

3. Recall Tactics That Led to Results During the Pandemic

The financial uncertainty triggered by the COVID-19 pandemic is a good point of reference to evaluate what donor behavior looks like when the economy shifts.

Many nonprofits exercised resilience during the pandemic in the face of new restrictions on in-person fundraising. At a time when many Americans tightened their wallets for fear of layoffs, rising prices, and an unknown trajectory for the economy, the social sector worked together to adapt to uncertainty. Those learnings will serve the industry as we approach our next wave of economic challenges.

Take a look back at which fundraising approaches your donors responded well to, and what you might want to shy away from.

Gather your teams to discuss planned vs. expected results such as: 

  • Did a virtual event that you hosted during the pandemic result in an unexpected flow of donations?
  • Did peer-to-peer opportunities result in higher fundraising participation among your donors?
  • Did you leverage social media to engage with donors online and unlock a channel that now fuels new donor acquisition?
  • Which campaigns resulted in the highest average donation amount, despite the number of individual donors who contributed?

Look at what worked well and be honest about what didn’t to focus time, resources, and budget on proven strategies.

4. Thoughtfully Allocate Resources to Long-Term Growth

With your long-term strategy and technology, you’re in the best position to maximize efficiency.

The key is to invest time now in a way that helps your future self. That comes with optimizing your team’s current tools while also reducing spending on activities that don’t ladder up to your long-term growth. Take the opportunity to reallocate time and budget to fundraising tactics that will outlast an economic downturn.

For example, you can use automation, deep data analytics, and innovative functionality within the technology you already have. These tools help you free the space and time your team needs to focus on strategy and planning that allows you to achieve more.

Get more out of your day-to-day operations and your team’s potential output with the modern automation technology provides to you. You can automate tasks to see more value from each staff member’s working hours, which we’ll review below.

Ideas to build efficiency with your technology

  • Save time with campaign templating for initiatives you repeat often
  • Pre-establish email and social media templates for frequent communications
  • Create automated emails to keep donors informed, prompt them to give, and thank them when they do
  • Integrate your fundraising tools to reduce manual data entry and keep metrics that inform performance and decision-making consistent

Find Direction in What You Can Control

While it’s easy to get overwhelmed by the latest news headlines, remember you have control over your future. These four focus areas are just a few examples of where you can turn concerned into confidence.

The nonprofit community is strong and resilient. Your visions and innovation are there. Now, it’s a matter of proactively reframing your long-term strategy to sustain any future situation we find ourselves in.

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How to Navigate Inflation as a Nonprofit https://www.classy.org/blog/what-is-inflation-doing-to-fundraising/ Fri, 24 Jun 2022 11:00:20 +0000 https://www.classy.org/?p=23796 Inflation in the U.S. reached the highest level in over four decades in May of 2022. We’re breaking down what this rise in inflation tells us about fundraising and how nonprofits can confidently recast their strategy with seven subtle shifts.

The Impact of Nationwide Inflation

Nonprofits kicked off 2022 with optimism around the generosity of American donors. 

Following a record year of donations in 2020, 84% of donors were ready to match or increase their contributions through the final months of 2021. 

When we entered 2022, a number of events occurred to further impact the economy to where it is today. Russia invaded Ukraine in February. Harvard Business Review shares how the resulting sanctions, pandemic-related shutdowns in China, and other lingering impacts caused significant bottlenecks in the U.S. supply chain. 

The impact of inflation and talk of recession should influence organizations to evaluate their current financial positions and take action where they can today.

Fundraising Through Economic Fluctuation

Rising inflation has a direct impact on fundraising. Nonprofits should consider proactive measures to prepare for donors who may have less to give, and pivot to anticipate higher fundraising costs. 

For organizations that provide human services, demand for help increases alongside the price of essential supplies. With more demand comes a greater need for volunteers to keep operations running, although it may be harder to motivate people to dedicate their time without financial return.

Nonprofit organizations will likely need to earn more through fundraising to offset the cost of inflation and meet any distribution requirements without dipping into their assets. While several financial strategies can support budgeting and expenses for the year, we’ll focus on fundraising tactics you can immediately implement.

An important focus area for organizations, regardless of size, may be to ensure donors understand how they can continue supporting your cause as the economy fluctuates. 

7 Shifts for Nonprofits to Sustain Fundraising

1. Be Clear About the Impact of Inflation

Donors don’t want to see their contributions diminish in value. Still, they won’t immediately correlate inflation to depreciating donation amounts. Be transparent to inform donors about the reality of the situation early.

Frame your messaging and appeals in a way that carefully communicates the impact of inflation on your nonprofit with individual supporters who are likely facing personal financial challenges during this time. It’s okay to ask people to increase their generosity if your outreach is thoughtful. Express that you know not everyone can help but that you’re grateful for anyone who has a bit more to give.

Most importantly, this is not the time to be vague. Add as much detail as possible about how each additional contribution impacts your goals, mission, beneficiaries, and ultimately your ability to continue serving your community. Call on your supporters to become the heroes who can ease the burden of inflation, which we’ll explore below.

2. Rethink Recurring Gift Appeals and Amounts

As you reach out to various groups of supporters, your recurring donors are a great place to begin. It’s much simpler to budget for the year when you know what you can rely on from monthly donations.

The fall and winter seasons present new opportunities for recurring donations as Giving Tuesday and the year’s final days incite generosity. We’ll talk a bit more about how to attract new donors during this time, but building sustainable revenue is more about retaining these year-end donors. It’s a great time to reiterate the value of recurring donations and what your cause is doing with the funding these individuals provide.

Ask recurring donors to:

  • Consider increasing their existing recurring gift size by  $5, $10, $20, or $50
  • Increase their giving frequency  to weekly, bi-weekly, or daily for the next few months
  • Recruit others in their network to start a recurring gift at a frequency and amount that works for them right now

Call on one-time donors to:

  • Break up their year-end, annual gift amount into a monthly recurring donation starting now to make their donation more affordable in high-inflation months
  • Find a frequency and gift amount that works best for their budgeting needs
  • Make a recurring donation on behalf of a loved one or celebration this year

3. Forge Partnerships With Corporate Partners

Nonprofits that rely more on corporate giving may not see the same impact from inflation.

As the most recent long-term financial strain to hit businesses, the COVID-19 pandemic is an interesting indicator of how corporate partners increase their focus on charitable giving in an economic downturn.

Fidelity survey of approximately 1,200 workers across the U.S. found that 66% of respondents felt it’s important for companies to be philanthropic and support different causes in 2020. Among millennials, it was 75%.

In 2020, U.S. companies provided $6.2 billion to nonprofit organizations to COVID-19 relief. Corporations and businesses recognized the value of expanding their charitable giving and taking action when the community needed it.

That set the stage for continued engagement with nonprofit organizations into 2021 and 2022, making this a great time to build new relationships.

When thinking about organizations to connect with, consider Certified B Corporations. Focus on outwardly socially responsible companies that are well-aligned to your cause and likely draw in employees who are passionate about giving back to the community through their employer. LinkedIn is a wonderful place to connect with the right people and expose them to the good you’re doing first-hand.

An idea to get your thoughts flowing: Engage companies in employee giving through teams and team-building peer-to-peer campaigns. We recently highlighted how JoyRX Children’s Cancer Assocation brought together 19 corporations and partners through creative activity-tracking, making it easy to participate and expand their reach with more participants.

4. Diversify Your Fundraising Income Streams

Like any good financial strategy, the more streams of income you can secure for your nonprofit, the better position you will be in if one slows down.

We talk a lot about the idea of diversified campaign portfolios on our blog and in our annual report, The State of Modern Philanthropy. Nonprofits can utilize several concurrent campaign types throughout the year and their yearly or season-specific initiatives. This also expands to nurturing one-time and recurring donors and cultivating a network of reliable major donations.

Recent findings from our report highlight the most effective campaigns regarding acquiring specific donors during designated timeframes and based on your organization’s goals.

Here are a few key insights to showcase the importance of versatility in your fundraising strategy:

  • Campaigns that are part of a peer-to-peer fundraising platform prove to motivate more donors, raising an average of 3.8X more than all other time-based campaigns combined
  • Donation pages, or nonprofits’ main donation websites, bring in the most average recurring revenue of all campaign types and have the least likelihood of those recurring donors canceling their contributions in the first year
  • Events bring in the most donations above $1,000 and show the highest conversion rates (defined as the act of a page visitor turning into a completed registration or donation)

Building various campaigns into your annual fundraising strategy gives new donors more options to support your organization in the way that resonates most with them.

5. Sharpen Your Grant Application Strategy

Grants can carry you through a more challenging financial time to help you rebound sooner once inflation levels out. Now is an excellent time to apply.

Write effective grant proposals by building off past grants and using your annual reports as a data source to support your request. Staying organized with documentation demonstrating your impact can make it easier to tailor your grant request in a way that resonates with the potential funder.

6. Lean on Free Resources

You can amplify all the tactics above with the right promotional strategies and materials. Luckily, you can access many free tools and resources as a nonprofit. Tapping into these now can help you reach the right audience who will support your cause through meaningful donations.

Here are a few free resources nonprofits can tap into:

  • $10,000 Google Ads grant credit to help maximize your reach and tap on new audiences of donors who can make a real difference in tighter months
  • Elevate your marketing efforts with a Canva Pro membership to design professional emails, social media posts, videos, presentations, reports, and more based on pre-established templates
  • Establish a nonprofit Facebook Page to boost your discoverability and quickly update a community of supporters as inflation impacts outcomes
  • Tap into the YouTube Nonprofit Program to tell your story through video and enhance your social media presence

7. Prepare Now to Rebound at Year-End

Giving Tuesday and year-end giving through New Year’s Eve offer a great opportunity for nonprofits to connect with donors of all levels. It’s not just major donors who give more during November and December.

The State of Modern Philanthropy reveals several other data trends that point to year-end as a critical time for donations, including:

  • Giving Tuesday and New Year’s Eve both see 2X the conversion rate of any other day on average
  • Nonprofits acquire 10X more donors on Giving Tuesday compared to an average day of the year
  • 30% of annual donation volume on Classy takes place between Giving Tuesday and December 31

Connect donors with the “why” behind their gifts through authentic appeals and powerful storytelling. If you can tap into empathy this year especially, donors will feel more called to do what they can to support you.

Stay Prepared to Keep Fundraising Going

Regardless of what’s next, it’s all about what you can do today to prepare for economic uncertainty. The tactics we discussed here can benefit your organization’s long-term and short-term outcomes, and you can apply them in any moment of urgent need moving forward. While we hope you never have to tap into your safety nets, it’s essential to know they are there.

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2022 Fundraising Event Attendee Insights Report https://www.classy.org/blog/fundraising-event-attendee-experience/ Mon, 21 Mar 2022 11:00:23 +0000 https://www.classy.org/?p=21012 Today, we’re officially launching our 2022 Fundraising Event Experience Report to help nonprofits across the social sector confidently engage donors in the ways they prefer. We’re diving into why over 92% of both virtual and in-person event attendees say they’re likely to donate during an event in addition to registration and participation costs.

Where Are Fundraising Events Going in 2022?

Fundraising events will never return to their pre-pandemic state, for good reasons. 

Nonprofits introduced many technology and experience-driven improvements in response to the pandemic. Those improvements paved the way for elevated fundraising experiences that engage event attendees on entirely new levels. 

To clear the confusion around where to go next, Classy conducted a third-party survey of over 1,000 fundraising event attendees in the U.S. in February 2022. 

The result is a report that pairs first-hand virtual and in-person attendee sentiments with compelling data to inform your organization’s decision-making. Dive in for insights on how to deliver an event that offers meaningful value strengthens donor relationships and keeps your community engaged long after the closing ceremony.

Head Into the Next Era of Fundraising Events With Confidence 

Fundraising Event Planning

What’s Inside:

  • A deep dive into the state of fundraising events
  • Attendee preferences for in-person vs. virtual events
  • Motivators, deterrents, and best practices from attendees themselves
  • The lasting impact of an excellent event experience on fundraising goals
  • How to evaluate event technology to bring it all together

Get Answers to Your Fundraising Event Planning Questions

The data throughout our new report provides clarity on the modern world of fundraising events after two years of constant fluctuations. 

Get fresh data points and impactful actions to navigate questions such as:

  • How do we confidently create an event experience that compels a broader group of attendees to get involved?
  • How can we better understand attendee preferences in 2022 and beyond? 
  • Which safety measures will people look for before they register? 
  • Will a virtual component increase attendance and fundraising potential? 
  • Should our focus be on high-tech experiences, or simplicity and safety? 
  • How can one event spark long-lasting donor relationships?
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How to Support the People of Ukraine  https://www.classy.org/blog/support-ukraine/ Tue, 01 Mar 2022 17:00:13 +0000 https://www.classy.org/?p=20912 On February 24, 2022, Russia deployed its military into Ukraine. This unprovoked attack came after eight years of steady armed conflict between the two countries.

In an aggressive attempt to overthrow Ukraine’s democratically elected government, Russia’s full-scale invasion has the potential to be the largest military action in Europe since World War II.

What Does the Russian Invasion Mean for Ukraine? 

In 2014, Russia invaded the Crimean Peninsula and began supporting pro-Russian separatists in parts of eastern Ukraine that want to disassociate from the country.

Since 2014, the conflict between Russia and Ukraine has taken the lives of 3,000 Ukrainian civilians and displaced 850,000 people from their homes. Prior to the February attack, nearly 3 million Ukrainian civilians were already in desperate need of humanitarian aid. Now, U.S. Intelligence warns that this conflict could claim the lives of up to 50,000 civilians.

In response to this attack, we’ve identified a list of top organizations currently taking action to mobilize critical resources, provide aid, and offer life-saving assistance to the civilians forced to flee their homes, collectively raising over $243 million on Classy to date.

Learn more about the refugee crisis from a recent World News Tonight ABC News segment below, as well as how you can support Ukraine during this unprecedented time.

The American Jewish Joint Distribution Committee (JDC)

The American Jewish Joint Distribution Committee (JDC), the leading global Jewish humanitarian organization, serves as a beacon of hope for Jews and others worldwide in more than 70 countries.

JDC logo

In response to the Ukraine crisis, JDC is on the front lines, delivering urgent, life-saving care to Jewish seniors and families. With donor support, JDC is activating hotlines, providing emergency homecare plans, and securing safe facilities for Jews fleeing their homes.

Get real-time updates from JDC on social media:

Manna Worldwide 

Manna Worldwide logo

Manna Worldwide is on a mission to rescue children from the grip of poverty. To show their support for friends and family living in Ukraine, the nonprofit is accepting direct donations to help aid in a safe evacuation and recovery from the Russian invasion.

Get real-time updates from Manna Worldwide on social media:

Lutheran World Relief 

Lutheran World Relief logo

Lutheran World Relief saves and improves lives in the poorest parts of the world. In an attempt to extend love to every neighbor, their team launched the World of Good Fund to provide families in Ukraine with emergency food, clean water, safe shelter, medical supplies, and more.

Get real-time updates from Lutheran World Relief on social media:

World Central Kitchen

World Central Kitchen logo

World Central Kitchen (WCK) is first to the frontlines, providing meals in response to humanitarian, climate, and community crises.

In response to the February 24 attacks on Ukraine, the WCK team is serving hot, nourishing meals at a 24-hour pedestrian border crossing in Southern Poland.

Get real-time updates from WCK on social media:

Feed Israel

Feed Israel logo

Feed Israel is striving to enable individuals to break out of the cycle of poverty by giving them the tools they need to become self-sufficient and live more dignified lives.

In support of Ukrainian Jews at this time of war, the nonprofit is working to provide food, water, medicine, and accommodations for the upcoming days to Jewish and Israeli refugees fleeing the country.

Get real-time updates from Feed Israel on social media:

Spirit of AmericaSpirit of America logo

Spirit of America works alongside America’s troops and diplomats to help save and improve lives.

The nonprofit is currently working with U.S. military and State Department personnel to defend Ukraine’s freedom, meet the urgent needs of Ukraine’s Armed Forces on the front lines, and provide emergency assistance to Ukrainians who have escaped to safety.

Get real-time updates from Spirit of America on social media:

The Salvation ArmyThe Salvation Army logo

The Salvation Army exists to meet human needs wherever, whenever, and however they can. In direct alignment with their greater mission, the nonprofit’s “Love Beyond Conflict” campaign is asking donors to support families fleeing crisis in Ukraine to help provide peace and safety.

In addition, The Salvation Army California South Division is supporting Ukraine through a secondary campaign to offer resources to families impacted by the Russian invasion. Discover how each gift can impact the life of a refugee in need.

Get real-time updates from The Salvation Army on social media:

Concern Worldwide

Concern Worldwide logo

Concern Worldwide is a global humanitarian organization focused on the world’s most vulnerable. With over 1 million people having fled Ukraine, the nonprofit is asking donors to support their rapid response through contributions to their Emergency Fund.

Get real-time updates from Concern Worldwide on social media:

Combined Jewish Philanthropies of Greater Boston (CJP)

CJP is on a mission to inspire and mobilize the diverse Boston Jewish community to engage in learning and take action that strengthens Jewish life and improves the world.

CJP logo

The nonprofit is raising money to provide direct support to the American Jewish Joint Distribution Committee (JDC), the Jewish Agency for Israel (JAFI), the Jewish Federations of North America (JFNA), and other partners on the ground in Ukraine.

Each donation will support CJP’s effort to provide food, shelter, medicine, and other basic needs to Ukrainian civilians and refugees during this vulnerable time.

Get real-time updates from CJP on social media:

Minneapolis Jewish Federation

Minneapolis Jewish Federation logo

For 90 years, Minneapolis Jewish Federation has empowered, engaged, and inspired Jewish communities around the world. The nonprofit’s Ukraine Emergency Relief Fund is an extension of their work to provide humanitarian assistance to vulnerable Jewish populations everywhere.

To provide critical welfare where it’s needed most, Minneapolis Jewish Federation has joined the Jewish Federations of North America’s (JFNA) $20 million emergency campaign. Funds will be allocated through Jewish Federations’ core partners who are on the ground in Ukraine, protecting and safeguarding Ukraine’s Jewish community.

Get real-time updates from Minneapolis Jewish Federation on social media:

Community Organized Relief Effort (CORE)

Community Organized Relief Effort (CORE) is a crisis response organization that brings immediate aid and recovery to underserved communities across the globe.

CORE logo

In immediate response to the crisis in Ukraine, the CORE team is on the ground in Poland supporting the immediate needs of refugees.

CORE’s initial efforts are focused on distributing hygiene kits and supplying refugees with cash assistance to help families get access to life-saving items such as food, water, and safe transit to shelter.

Get real-time updates from CORE on social media:

The Evangelical Alliance Mission (TEAM)

The Evangelical Alliance Mission Logo

The Evangelical Alliance Mission (TEAM) has been working since 1980 to plant churches around the world where the most need exists.

Their mission to proclaim the Gospel in word and deed is lived out through community development, healthcare, social justice, and more. Serving more than 35 countries worldwide, TEAM is dedicated to mobilizing disciples from anywhere to serve everywhere.

In support of Ukrainian refugees, TEAM is garnering support from generous supporters to help provide transportation, lodging, food, clothing, medical supplies, and hygiene materials during this time of crisis. Discover how each donation can make a difference.

Get real-time updates from TEAM on social media:

Tunnel to Towers Foundation (T2T)

tunnel to towers logo

The Tunnel to Towers Foundation honors the sacrifice of firefighter Stephen Siller who laid down his life to save others on September 11, 2001, as well as our military and first responders who continue to make the supreme sacrifice for our country.

On March 10, the nonprofit committed $1 million to the children of Ukraine in an effort to help them find safety amid the conflict in their country. Additionally, T2T is asking their loyal network of supporters to contribute to the cause to amplify their impact and provide relief.

Get real-time updates from T2T on social media:

Save Our Allies (SOA)

Save Our Allies (SOA)

Save Our Allies (SOA) rescues American citizens, permanent residents, Special Immigrant Visa (SIV) holders, and other special populations from conflict zones and contested areas. With team members already on the ground, SOA is offering immediate assistance to Ukrainian refugees in need of aid and comfort.

With donors’ support, SOA is sending additional highly-trained specialists to the Polish-Ukrainian border to assist with medical treatment and supply distribution. Every dollar raised through their Ukraine Mission campaign will go directly towards the provision of evacuation and medical assistance.

Get real-time updates from SOA on social media:

Direct Relief

Direct Relief works to equip health professionals in resource-poor communities to meet the challenges of diagnosing and caring for people in need. In an effort to support those affected by the war in Ukraine, their team is providing critical medical aid, including wound care and ICU medications, to refugees within Ukraine and those who have fled to neighboring countries. Direct Relief logo

In addition to medical aid, Direct Relief has provided more than $30.8 million in financial assistance, including direct cash aid to support local healthcare organizations to help Ukrainian refugees obtain needed medications at no cost. You can explore the impact of their efforts in more detail in Direct Relief’s comprehensive Ukraine One-Year Report.

Get real-time updates from Direct Relief on social media:

As a Certified B Corporation and Public Benefit Corporation, Classy’s mission is to mobilize and empower the world for good. We are proud to support a community of nonprofits that work tirelessly to serve those in need whenever and wherever disaster strikes.

This post was updated on February 27, 2023. 

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NFT Fundraising Explained: What Is a Non-Fungible Token Donation? https://www.classy.org/blog/nft-fundraising/ Fri, 25 Feb 2022 12:00:25 +0000 https://www.classy.org/?p=20859 If you opened this blog with absolutely no idea of what a non-fungible token (NFT) is, you’re not alone.  NFT fundraising is only one piece of the larger cryptocurrency donations conversation. That’s why we’ve dedicated this post to help you understand how it all works and how to test the waters when you’re ready.

NFTs are evolving from a far-reaching idea to a transactional norm. Nonprofits can jump right into this digital currency evolution by understanding how NFTs can help them reach new audiences and fuel their long-term missions.

Over the course of this article, you’ll learn why the $23 billion trading volume of NFTs signals the next wave of fundraising potential for nonprofits worldwide.

What Is a Non-Fungible Token (NFT)?

An NFT, or non-fungible token, is a type of cryptocurrency. Each NFT represents ownership of a unique item. Imagine them as tokens representing the official ownership of digital commodities like art, collectibles, and real estate.

Each NFT has its own unique identification code and metadata that distinguishes it from any other NFT on the market. Each NFT sits securely on a blockchain, a collective record that stores all cryptocurrency transactions. While Ethereum is the most popular blockchain for NFTs, it is not the only one. Any blockchain that can do smart contracts can support NFTs such as Tezos and Solana. Because of that, no one can change the record of ownership or duplicate the original copy.

Let’s explore the concept of an MP3 file as a comparison. Artists have rights to the original song files they create and release, but the copy someone makes illegally or shares with a friend at no cost is still the same song. NFTs avoid that copy-and-paste scenario by verifying the owner on the public record, making it impossible to replicate.

What Does Non-Fungible Mean?

Non-fungible means something is unique and cannot be replaced. It could also describe things like your laptop or phone. Each item has unique properties that you can’t see on the surface. You wouldn’t be able to swap your computer with the person next to you without losing programs, passwords, custom code, and more.

What Does an NFT Look Like?

We know NFTs are digital tokens, but what does that actually mean? How do you know if you’ve seen one or ever will?

You can’t hold an NFT in your hand. The digital token is often artistic in its own right, but its purpose is to represent a cryptocurrency value on the blockchain.

Some people may wonder why a piece of digital art could cause such a buzz. They might have said the same when credit cards were launched as simple pieces of plastic. It’s all about understanding the context of the value it represents beyond what you can see or hold.

How Does an NFT Gain Value?

VanGogh painting Starry Night.

Think about the VanGogh painting Starry Night.

When Van Gogh created the original Starry Night, he didn’t assign any specific value. He likely didn’t anticipate the value ever reaching the level it has today, either. Instead, the perceived worth of the painting at the time of creation determined how much it sold for, and it’s been increasing in value ever since.

Many people own copies of the famous Starry Night. Those copies will never compare to the value of the original painting that lives in the Museum of Modern Art since 1941. The original is a one-of-a-kind copy that can’t ever be replicated the same way again.

An NFT works the same way. The original copy gains value as it transfers ownership. Each NFT begins with a buyer’s perception of its worth. Just like Starry Night, NFTs are sold on the global market to find owners that appreciate them, and one purchase is all it takes to get the ball rolling.

Examples of NFTs

Here are a few examples to help you see NFTs in action. Notice that they each capitalize on a moment or experience in a way that a physical item couldn’t.

  • A digital clip of LeBron James dunking on  Nemanja Bjelica sold for $208,000 as a “Moment” on NBA TopShot.
  • Coachella announced their own line of lifetime Coachella passes, art prints, photo books, digital collectibles, and more through their Coachella Collectibles NFTs. Coachella is even donating a portion to Give Directly, Lideres Campesinas, and Find Food Bank.

What is NFT Fundraising?

​​So, how can you enter the world of NFTs without letting the complex terminology and forward-thinking processes become overwhelming? NFTs represent an exciting innovation in capturing value, which brings us to the topic of NFT fundraising.

When in-person fundraising slowed through 2020 and 2021, people got creative about using NFTs to entice worldwide donations without the restrictions of completing transactions internationally.

Cryptocurrency isn’t new to the nonprofit sector, but it’s now more accessible and understood. The American Red Cross started accepting bitcoin in 2014, for example.

NFT Charity Auctions: The Possibilities are Endless

NFT charity auctions are a way to increase donations without spending time and resources on the exchange of physical artwork or shipping costs.

Organizations can collaborate with NFT artists to create an item unique to their mission or potentially source an NFT auction item from a passionate supporter. There’s also the option of creating a one-of-a-kind NFT yourself to motivate giving.

Steps to create an NFT

  1. Choose a concept that seems relevant and unique
  2.  Establish an ETH wallet and pay any associated creator fees
  3. List the NFT on a marketplace to “mint” it on the Ethereum or Solana blockchain as digital art. Research tells us that these platforms are popular among beginners:
NFT charity auctions

Once the NFT is created and minted, it’s ready to sell.  The nonprofit can then work in collaboration with corporate partners and sponsors like we saw in the Coachella example or on its own to arrange for proceeds to benefit particular causes.

Start With a Few Ideas to Inspire Your NFT Concept

  • Digital art of elephants made into a collectible NFT and auctioned to benefit wild elephant rescue in Africa
  • Digital ribbons sold to fund cancer research
  • A collection of NFT portraits created based on real women benefiting from the support of a local shelter
  • A digital NFT home sold to fund the disaster relief of earthquake victims

Examples of New NFT Projects for Fundraising

The success of NFT fundraising is dependent on the creativity of nonprofits, creators, and those selling NFTs for good. We’ll showcase what’s been done so far to help you see the impact of this fundraising method.

  • Melania Trump launched NFTs to help donors collect rare and limited-edition pieces while benefiting children in the foster care community. Her latest NFT is a digital painting of herself that sold for $190,764 in January of 2022.
  • Blankets of Hope held a five-day crypto auction called “Right-Click, Give!” after collecting digital items and works of art from 50 members of the NFT community. Their list of contributors included Nicole Buffett, Gary Vaynerchuk’s VeeFriends, Tom Bilyeu’s Merry Modz, plus GutterCatGang, PixelVault, and World of Women.
  • Hope for Haiti and FXG announced an NFT auction and exclusive virtual reality experience of Haiti to benefit the Haiti Earthquake relief in October of 2021.

We recognize the need for innovation and to create new avenues for support and collaboration. Hope for Haiti has partnered with digital artists who want to use their time and their talents for social impact. 

During our last NFT auction, select NFTs were recreated in Virtual Reality (VR), and displayed on the “walls” of the VR classroom for users to view — something that hasn’t really been done before!

In addition to receiving the proceeds of sales to support our programs, we are learning how NFTs work and how they are created so we can be actively involved in the process and effectively organize large-scale campaigns.

Sarah Porter

Director of Business Development and Strategic Partnerships at Hope for Haiti

Tips to Break Into the NFT Fundraising Community

Before you go, here are some tips to help you get to know NFT fundraising a bit more and see if it’s a good fit for your organization.

  1. Connect with NFT artists in your community to start forming relationships that can lead to partnerships when you feel ready to launch an NFT auction or sell NFTs as part of your fundraising strategy.
  2. Keep tabs on NFT news related to your specific cause sector or niche to set realistic goals for an NFT auction or specific fundraising campaign.
  3. Survey your donorsto get a pulse on their comfort level with NFTs so you can tailor your timing around the highest likelihood for a successful launch.
  4. Partner with corporate sponsors and organizations who’ve mastered the NFT marketplace already so you can test the concept with your audience.

Feel comfortable being uncomfortable, recognizing that there’s always something new to learn about cryptocurrency—specifically NFTs, and that embracing the learning curve will help you break down the fear of getting started.

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Postage Price Increases: How to Plan for the Proposed Change https://www.classy.org/blog/postage-price-increases/ Wed, 12 Jan 2022 04:00:00 +0000 https://www.classy.org/blog/postage-price-increases/ There’s a postage price increase among us. Here’s what your nonprofit can expect.

Multiple news outlets reported that the United States Postal Service (USPS) increased its postage costs, effective August 29, 2021. This is not the first hike to postage prices within the last five years. We know a good majority of nonprofits still rely on direct mail to drive fundraising, many of which are already on a tight budget. This postage cost change serves as an important signal to review your fundraising operations.

In fact, there’s a potential upside for your nonprofit here, especially if this spurs you to test new approaches with online fundraising. To provide insight into the opportunities that come with this news, we met with the following industry experts:

  • Audrey Phillips, associate manager of scaled customer engagement at Classy
  • John Stauffer, managing director of strategic planning and channel strategy at DEG

Below, we’ll go over the details of the price increases, what it means for your nonprofit, and tactics to reevaluate your direct mail program and strengthen your online fundraising strategy to potentially increase your revenue.

Postage Price Increases Explained

First, let’s take a moment to review the news. The Postal Regulatory Commission (PRC) has officially approved the new postage costs, which have now:

  • Increased costs to send a metered letter by two cents
  • Increased price of standard stamps from 55 cents to 58 cents
  • Increased First-Class Mail (FCM) prices by 6.8%

To the average consumer, these price increases may not seem like much. But nonprofit professionals know that these increases have significant impacts on marketing their campaigns and sharing their mission through direct mail outreach.

With the price of stamps for a letter increasing from 55 to 58 cents, your cost might suddenly jump from $2.5 million in postage to $2.64 million: a $140,000, or 6% increase on your overall budget.

Pro Tip: To qualify for bulk rate prices, you must meet a minimum quantity of 200 pieces of mail or 50 pounds of mail. Make sure you check with the USPS for more details on pricing.

Where is this extra 6 percent supposed to come from? If your budget has been approved for the next fiscal year, but you suddenly need an extra $140,000, you might not be able to send the same amount of direct mail you did last year.

Battle Postage Cost Increases With Online Fundraising

Increased postage costs are pushing nonprofit marketers to be even more strategic about how they approach their direct mail strategy. You’re left with a few options:

  • Find money to increase your budget and maintain the reach of your current direct mail program
  • Cut your direct mail distribution to fit your existing budget
  • Rethink what direct mail you send out and opt for cheaper pieces of mail, like a postcard instead of a pamphlet, to maintain your reach and existing budget

Regardless of how you choose to account for the price increases, online fundraising can help extend the legs of your fundraising revenue to cover this gap with low-cost, high-return methods that can supplement your direct mail efforts.

Below, we’ll share tips on how to bring offline and online fundraising together as well as explain how these strategies can help offset the cost of the proposed price increases.

Send Postcards With a Link to Your Online Fundraising Page

Postcards, as mentioned, are cheaper pieces of mail to send rather than bulky mailers. Send a branded postcard that includes a brief message and link to your online donation form or campaign page.

You could use a QR code on the postcard that readers can easily scan with their smartphones or tablets and be taken directly to the intended page. Although QR codes are a common tool businesses use nowadays to easily direct consumers to a webpage, it could be a good idea to include brief instructions on how to scan the QR code, just in case your direct mail recipients are not as familiar with this technology.

Use Attribution Links

It’s a general rule of thumb to include URLs to your online fundraising campaigns on every piece of direct mail you send. However, you can take this strategy a step further by making it an attribution link, so you can track who received your direct mail and then chose to make a gift online.

This ensures that, as your links get sent out to the world, the original source is represented. You’ll know which specific segments and demographics are landing on your campaign page based on which specific link they use.

For example, you could make use of Classy’s source code links. These are unique identifiers that represent a fundraising appeal or marketing activity, and can be used to track the effectiveness of specific efforts.

For your direct mail, you could include a link to your year-end online fundraising campaign on every piece of direct mail you send out asking for year-end donations. The parameters could look like this:

  • Source 1 = Year-End-Direct-Mail-Appeal; Source 2 = November-Mailing

Pro Tip: Consider using a link shortening tool like bit.ly once you create the links. When it comes to your direct mail, the shorter the link you include the better.

You’ll know precisely which and how many people from your November batch of mailings went to your online year-end campaign and made a donation. Your organization is able to create as many different source code links as you want, which can include parameters to correspond with things like different direct mail segments, time of mailing, or donor demographics.

There’s a big payoff in multi-channel promotions and being able to link a specific piece of direct mail to an action. You need to know who your donors are, and what different channels they use so you can maximize your response rates.

John Stauffer

Managing Director of Strategic Planning and Channel Strategy

When you know what groups are most responsive, you can allocate your direct mail budget to the areas where it will have the most impact.

Collect Email Addresses

In addition to including your online fundraising campaign URL on direct mail appeals, include a section for supporters to write in their email addresses when they mail a donation. This way, you can begin to transition donor segments off your direct mail list and onto your email appeal list.

This is important, especially if your direct mail budget is stretched thin and you have to send fewer pieces due to the postage cost increases. Once someone responds to a piece of direct mail with a gift, and the email address written in, add them to your email distribution list.

When the time comes for your next appeal, send a piece of direct mail to these people and send them an email appeal. As soon as they respond to your online appeal over the direct mail appeal, and make an online gift, you can remove them from your direct mail list.

The hope is that when someone donates online, they won’t go back to offline donations. This can free up money in your direct mail budget and help you more easily engage supporters through online communications.

Transition Checks to Recurring Gifts

Many offline donors give regularly via check, making them prime candidates for your recurring giving program.

Coordinate your staff to execute a call blitz to these regular donors, and ask them if they’d like to set up an online recurring gift instead. If your offline donors are older, there’s a chance they might not know how to set up a recurring online donation on their own, so your team can use this opportunity to set up the gifts for them over the phone.

An individual, especially one who’s less savvy with technology, might not ever get to setting up a recurring online gift themselves, so having someone help them do it over the phone can make a world of a difference.

Audrey Phillips

Associate Manager, Scaled Customer Engagement, Classy

Explain to these supporters that instead of having to grab their checkbook all the time, they can just set up a gift once and let it run. You can take their credit card information over the phone to set up their gift, or if they have something against credit cards, Classy Pay allows them to give via ACH (among other payment options like digital wallets), which essentially acts as an e-check. This makes it easier for your organization too, as there are no credit card expirations for ACH.

You can also help them select their preferred frequency for their recurring donation.

When you get these offline donors to transition to online, it becomes easier for both your nonprofit and supporters to manage their giving.

Leverage Matching Campaigns

Encourage online giving by tweaking the incentive of the matching gift period. More people give when there’s a match, especially if it’s from a reputable source. Like taking your link one step further with source codes, you can extend the power of a matching gift period as well.

Maybe you have a one-to-one match for donors who give offline through your direct mail appeals: $50 gets $50. When it comes to online, though, you can have a two-to-one matching gift to incentivize people to give online: $50 gets $100.

This is a great way to encourage more online donations while simultaneously increasing your online fundraising revenue. That increase in online revenue can potentially help offset the cost of your postage as well.

Keep Your Offline and Online Branding Consistent

Many nonprofits who send direct mail work with third-party firms or mailing houses. If you do, it’s crucial you clearly communicate your vision, mission, and branding with them so that your online and offline efforts are consistent.

Tell your direct mail firm that you expect your branding to be aligned across the materials you create, and what they create for you.

If your nonprofit’s message is one of hope and prosperity, it could be counterintuitive to let these third parties send pieces of direct mail that emphasize negative elements your team is combatting, like images of suffering children. Without this brand cohesion, you risk a disjointed and confusing message, especially if you’re linking someone to an online fundraising campaign that prioritizes positive messaging.

It all boils down to the donor experience you provide for your audience. When your branding and imagery look and feel the same across direct mail, social media, email, and online campaigns, it can help drive donations.

Hyper-Segment Your Mailing List

If you’re unable to send the same number of direct mail pieces due to postage cost increases, you will likely have to hyper-target and segment your direct mail audience. All of the above tactics can benefit from aggressive segmentation of your customer base, and a personalization mindset from your nonprofit.

John gives us the example of a wildlife conservation nonprofit that has a specific donor who supports the protection of elephants from poachers in Africa. This nonprofit may have countless other programs focused on other wildlife, but they’ve got to target this supporter with elephant-related appeals.

You have to know what a particular person is most interested in and what got them to donate. This has a huge impact on your direct mail outreach.

John Stauffer

Managing Director of Strategic Planning and Channel Strategy

When you know what your audience likes, down to the very program they support, it’s less of a gamble when you send them a hyper-targeted appeal. The chances are high that someone who previously supported an elephant-related program will support an elephant-related program again. With this strategy, your direct mail budget has a potentially higher return than if you simply mailed appeals for an elephant program blindly.

Despite the fact that the USPS has increased its postage costs, it’s not the end of the world for your organization. Direct mail can still play a central role in your fundraising, but there’s a major opportunity in augmenting those efforts with online fundraising.

In any situation, Classy has you covered and can help in your journey. Reach out below and talk with our team today for even more insight and strategy.

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The 16 Most Interesting Data Points for New Year Fundraising https://www.classy.org/blog/most-interesting-nonprofit-data-points/ Wed, 29 Dec 2021 04:00:00 +0000 https://www.classy.org/blog/most-interesting-nonprofit-data-points/ The new year brings fresh energy for fundraising professionals and the opportunity to refocus your time on impactful activities based on data from the year before. Our quick list of the 16 most interesting nonprofit data points is here to offer some clarity on where to direct your attention.

Grab key statistics from a full year of Classy’s external research, platform data, and donor behavior reports. The right information will help you take decisive actions in line with the biggest fundraising trends shaping 2022.

In case you missed it, jump into our main reports from 2021:

Donors Plan to Give More to Causes They Care About

  1. 84% of donors intended to meet or exceed their donations from 2020, during the 2021 giving season. (Why America Gives 2021)

We thought it would be tough to match 2020’s chart-topping fundraising results, but donors showed up once again. Increased generosity throughout 2021 tells us that charitable giving is still a priority that people value and plan for. Now, it’s about how to get (or keep) your cause front and center.

2022 Fundraising Opportunity: Nurture and retain year-end donors with marketing tactics that help them identify with the reason behind a donation and the significance of continued giving.

Donors Find Causes Through Personal Connections and Values

2. 61% of Gen Z donors and 62% of millennials are likely to learn about causes on social media.(Why America Gives 2021)

Social media helps nonprofits connect with donors in a time and cost-effective way. People are conditioned to turn to Instagram, TikTok, Twitter, LinkedIn, and Pinterest to learn and engage with their communities. This is especially true for newer generations. Build out your social presence to establish trust and a community with your donors.

2022 Fundraising Opportunity: Form deeper donor relationships by enriching your annual social media content calendar with meaningful or educational content that breaks away from typical appeals.

3. 48% of donors are likely to donate to charitable organizations that practice values of diversity, equity, and inclusion.(Why America Gives 2021)

Diversity, inclusion, and belonging are critical practices across sectors. In fact, these values are criteria that donors use to evaluate whether they will donate.  Go beyond just talking about DEI. Showcase your unique perspective through any channel your donors access to learn about your cause from your website to videos on social media.

2022 Fundraising Opportunity: Use thoughtful imagery and language to show how you live out your values. Instill confidence among prospective donors that your mission is at the foundation of all you do.

Form Community Around Fundraising to Fuel Peer-to-Peer Potential

4. 67% of donors are most likely to hear about new causes through word of mouth from friends and family. (Why America Gives 2021)

People lean toward causes that impact or relate to the people closest to them. Peer-to-peer fundraising offers them an organic way to show support for communities and contribute to a nonprofit’s meaningful mission at the same time.

Create and share content that equips fundraisers with the tools they need to advocate for your cause and specific initiatives. The right preparation can empower more people to spread the word and entice new donations.

2022 Fundraising Opportunity: Take a fresh look at your peer-to-peer campaigns. Encourage supporters to share their personal connection to your cause with well-designed and thorough fundraiser toolkits and tips for organic social sharing.

5. 4 out of 5 donors who donate to an individual’s fundraising campaign on behalf of a nonprofit are new to the organization. (The State of Modern Philanthropy 2021)

Your existing supporters are the gateway to new networks you otherwise would never be able to access. Peer-to-peer campaigns will be critical to solid fundraising in 2022. Your nonprofit can run one campaign to engage entire communities of new donors.

2022 Fundraising Opportunity: Build a strong group of advocates to kick off fundraising pages for every new campaign, empower them with specific tools for success, and spotlight them on your social media and newsletters to not only help them feel valued, but to also encourage others to take the same action.

6. On average, each ticketed fundraising campaign on Classy results in 118 individual fundraiser pages.  (The State of Modern Philanthropy 2021)

Events that feature a fundraising component are picking up steam. You can also use this to appeal to people who want to show support without attending or being in the same physical location. In 2022 we will likely see more sophisticated hybrid events that capitalize on peer-to-peer fundraising to generate greater revenue.

2022 Fundraising Opportunity: Open your event registration earlier. Include a pre-event fundraising goal to kickstart the momentum and maximize your donation potential.

Subscription Giving Builds Predictable Income and Loyal Donors

7. In May of 2021, 67% percent of surveyed donors who noted they had donated to a charitable organization in the past, also noted that they donated on a recurring basis (e.g., weekly, monthly, quarterly, or annually). Of those donors, 71% were still giving a recurring gift. (2021 Recurring Donor Sentiment Report)

Recurring giving has become a standard for most nonprofits. If you haven’t invested in a proper recurring donation program, or haven’t focused on its growth, make it a priority in 2022. Recurring gifts empower donors to make a continued impact on your cause, while also producing a sustainable flow of income that helps you plan for the future.

2022 Fundraising Opportunity: Offer a recurring giving option on every donation page to entice donors at checkout. You can also build your membership program to nurture a community of loyal recurring donors into the future.

8. 61% of donors give on a recurring basis because it’s more affordable to break up gift amounts over time. (2021 Recurring Donor Sentiment Report)

Recurring giving makes it more manageable for donors to give smaller amounts over an extended period of time versus making one sizable donation upfront. We’ll continue to see this preference grow alongside the ever-popular subscription-based business model.

2022 Fundraising Opportunity: Advertise your recurring giving option as a convenient set-it-and-forget-it donation. Help donors make an impact that adds up for your organization by framing it as a subscription gift.

9. 73% of recurring donors continue giving when they understand their donations’ tangible impact. (2021 Recurring Donor Sentiment Report)

It’s one thing to secure a recurring donor, but another to keep them interested in giving for an extended time. We’ve heard from many donors in our reports this year that it’s critical for them to understand how donations make an impact. Recurring donors are no different and need to see why their regular contributions matter.

2022 Fundraising Opportunity: Help every recurring donor see the impact of their ongoing contribution. Lean into impact blocks on your Classy campaign pages, targeted emails that describe what your recurring donors are making possible, and creative storytelling from beneficiaries.

10. 59% of recurring donors prefer to give outside of monthly increments.(2021 Recurring Donor Sentiment Report)

Recurring donations are no longer limited to a monthly cadence. Nonprofits can now offer many donation frequencies that give donors more options to fit their lifestyles.

Consider giving donors the option to donate weekly, bi-weekly, quarterly, annually, or daily. From what we can see, the preference to give outside of monthly will only continue to gain steam in 2022.

2022 Fundraising Opportunity: Give donors the power to customize their recurring gift by choosing when and how they’d like to contribute, and promote the option to choose on your donation page.

Flexibility During the Donation Experience Drives Conversions

11. 91% of donors who’ve completed donations online describe their experience as good or excellent. (Why America Gives 2021)

Nonprofits quickly adapted to entirely online fundraising in 2020. In 2021 we saw that a seamless online experience leads to completed donations.  People are looking to give in the same fast and intuitive way that they shop on a brand’s website or app. The online donor experience must evolve to match that of ecommerce and the expectations of the modern consumer.

2022 Fundraising Opportunity: Walk through your donor experience from start to finish. Consider new fundraising tools to incorporate at steps that create unnecessary friction, whether it’s a clear donate button, shorter checkout forms, or another option for payment.

12. 58% of donors who have donated online, donated through an app or mobile site on their smartphone or tablet. (Why America Gives 2021)

A few years ago, it was a luxury for nonprofits to support mobile donations. Today,  it’s not uncommon to find people who rely solely on their mobile devices for access to the internet at home and on the go.

The conversation is shifting from simply offering a mobile donation option to making it an enjoyable experience. Keep straightforward, on-the-go transactions top of mind in the year to come.

2022 Fundraising Opportunity: Create the simplest path to give on any device. Format each button, image, and video to fit mobile and place your call to action at the top of your donation pages.

13. 20% of donors reconsidered donating when their preferred payment method was not an option. (Why America Gives 2021)

Beyond a mobile donation option, donors also want to see more intuitive ways to pay. They won’t hesitate to pass on making a donation if their preferred payment is not available. Donors also shared that one of the top factors of an excellent donor experience is the ability to pay how they’d like via options like ACH, Venmo, PayPal, or cryptocurrency.

2022 Fundraising Opportunity: Get ahead of researching which payment options your donor base wants to see. Determine how to integrate more payment options into your fundraising software before your biggest fundraising months.

14. During the early 2021 giving season, organizations that activated Classy Pay and PayPal had a 4-point conversion lift vs. organizations with neither.  (ClassyPay Platform Data)

Curious which payment options to consider outside of standard credit card processing for nonprofits? PayPal and Venmo are great places to start. Donors across all generations show interest to pay using these options. It’s likely that many of your donors already have login credentials readily available.

2022 Fundraising Opportunity: Integrate PayPal and Venmo into your donation pages. Give donors the option to expedite the checkout process in just a few clicks.

15. 11-14% higher average mobile conversion rates occur when organizations enable digital wallets on Classy campaigns.(The State of Modern Philanthropy 2021)

Digital wallets make it simpler to pay without a physical card in hand or the need to remember your card number. Popular options include Google Pay and Apple Pay. These digital wallets are often unlocked with the quick scan of a face or Touch ID, making them both secure and fast. Mobile payment options lessen the friction that can deter someone from completing a donation.

2022 Fundraising Opportunity: Boost conversion rates with digital wallets at every donation checkout page. Classy customers can do this easily with Classy Pay.

16. 55% larger recurring gifts on average result from donors using ACH, compared to those who use credit cards on Classy.(The State of Modern Philanthropy 2021)

ACH may not be the flashiest new payment method, but it’s a massive opportunity for nonprofits. Boost your nonprofit’s recurring giving revenue with payments that don’t expire, unlike credit cards. That makes it easier for donors to store credentials once and pay on a regular basis without a thought. Nonprofits will want to keep this in mind when crafting their 2022 giving experience.

2022 Fundraising Opportunity: Attract more recurring donors and larger gifts by offering ACH payments. Retain supporters longer with a secure payment method they can feel confident in.

Keep Up With Our Most Interesting Nonprofit Data

Subscribe to the blog to be the first to hear about our new data releases throughout the entire year. We are working on a lot of exciting research that will better support you in your fundraising planning, strategy, and execution. Our extensive platform insights and external studies with donors aim to provide you with a roadmap to confident fundraising.

Stay tuned for what’s new in 2022.

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How to Support Tornado Relief Efforts https://www.classy.org/blog/support-tornado-relief-efforts/ Tue, 14 Dec 2021 07:00:48 +0000 https://www.classy.org/?p=20267 On the night of December 10, 2021, a string of tornadoes devastated communities in the Midwest, wreaking havoc on towns across Arkansas, Illinois, Kentucky, Missouri, Mississippi, and Tennessee.

Hundreds of homes and businesses were leveled throughout southwest Kentucky, the hardest-hit state. So far 88 people, including 74 in Kentucky, have been found dead. Kentucky Governor Andy Beshear expects the death toll to continue to rise throughout the week.

In response to the disaster, President Joe Biden approved an emergency declaration for the state of Kentucky to provide federal aid to support the local authorities.

A few nonprofits have taken the lead in providing support in the aftermath of the tornadoes. See how you can help the following nonprofit organizations that are on the ground helping the affected communities.

Salvation Army

The Salvation Army, an international movement, is an evangelical part of the universal Christian Church and serves approximately 30 million Americans annually. The organization is fundraising to provide disaster relief services to those affected by the tornadoes. They will be serving meals and drinks to first responders and displaced residents. With a network of trained responders and strategically placed equipment, the organization can quickly and effectively respond in times of disaster. 

Follow The Salvation Army’s efforts on social media

Team Rubicon

Team Rubicon is a disaster relief organization that connects the skills and experiences of military veterans with first responders to deploy emergency response teams. A recon team set up base in Benton, Kentucky, and will be working on clearing roadways and removing fallen or hazardous debris.

Follow Team Rubicon’s efforts on social media

World Central Kitchen

World Central Kitchen (WCK) is on the ground in Kentucky delivering meals to first responders that are helping with disaster relief. WCK uses the power of food to nourish communities in times of crisis. The organization works to create food resiliency within communities to better prepare for future disasters. 

Follow World Central Kitchen’s efforts on social media

As a Certified B Corporation and Public Benefit Corporation, Classy’s mission is to mobilize and empower the world for good. We are proud to support a community of nonprofits that work tirelessly to serve those in need whenever and wherever disaster strikes.

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Your Single Stop for Donations: Classy’s 2021 Giving Tuesday Resource Center is Here https://www.classy.org/blog/giving-tuesday-resource-center/ Wed, 22 Sep 2021 07:00:00 +0000 https://www.classy.org/blog/giving-tuesday-resource-center/ Classy’s Giving Tuesday Resource Center is back for 2021 to provide nonprofits with cohesive campaign examples, timely tips, and over 50 free resources all in one place.

This resource center is your launchpad to collect new ideas for Giving Tuesday and elevate your giving experiences for year-end.

Nonprofits who took advantage of Classy’s resources in 2020 saw five times the donation volume on Giving Tuesday than those who didn’t, and now you can too.

This year, we’re returning with even more free blogs, guides, checklists, templates, and webinars tailored to what your organization needs to succeed. These resources were built based on what our nonprofit audience wanted to hear more about, and what they couldn’t find anywhere else.

There’s something for everyone, whether you’re kicking off your first Giving Tuesday campaign or looking to top years of ongoing success. You’re only a click away.

Classy Knows Giving Tuesday

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The Classy fundraising platform helps nonprofits launch successful campaigns every year. Our proven scalability, security, and flexibility allow you to create the campaign your team is envisioning with ease and precision.

The State of Modern Philanthropy 2021 shared that nearly one-third of annual giving on the Classy platform takes place between Giving Tuesday and December 31. In the same report, we saw that Giving Tuesday brings in eight times more returning donors to the platform than any other day of the year.

This year, we’ll help you unlock the generosity of supporters and thoughtfully connect with donors in a hybrid fundraising environment to make an impact that will last well into the new year.

“We’re excited to bring back the Giving Tuesday Resource Center as a comprehensive library for nonprofit success from Giving Tuesday through the year-end giving season. After seeing the results from last year, we’re getting even more creative to deliver your organization the content that matters.”

-Alexa Grossman, Marketing Specialist

Expand Your Giving Tuesday Knowledge to See ROI

Organizations who engaged with Classy’s Giving Tuesday resources:

  • Raised $2M on Giving Tuesday alone
  • Saw 6.8 times more transactions than those that did not
  • Raised 5.5 times more on average than those who did not

We can’t wait to see what this year holds. Dive in early to untap your full potential.

Popular Giving Tuesday resources to look forward to this year:

CHECKLIST: Take your Giving Tuesday campaign to the finish line with our 3-Month Giving Tuesday Checklist.

BLOG: Capitalize on the biggest giving season of the year with answers to your top Giving Tuesday 2021 questions.

WEBINAR: Learn which campaign type is best suited for Giving Tuesday, the features to look for in your fundraising tech, and how to set up your communications plan through 4 Tips to Set Your Giving Tuesday Campaign Up for Fundraising Success.

Here’s what you can find this year:

  • Over 50 resources that will help you raise more for your cause
  • Visual campaign examples from successful nonprofits
  • Templates to make your life easier in the busiest days
  • Best practices to reflect the latest social media and online giving experience trends

Get Minute-by-Minute Updates on Giving Tuesday

On November 30, visit the resource center to check out our by-the-minute broadcast of Giving Tuesday fundraising activity. Be sure to bookmark the page so you can follow the action on the big day and watch the donations fly in.

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7 Ideas to Create a Modern and Easy Donation Experience https://www.classy.org/blog/ideas-for-an-easy-donation-experience/ Wed, 28 Jul 2021 00:00:00 +0000 https://www.classy.org/blog/ideas-for-an-easy-donation-experience/ An easy donation experience offers value to both supporters and nonprofits, and we’re breaking down how to achieve it all. 

Help your supporter make easy donations through pathways that meet them where they are, whether that’s payment type or donation frequency. At the same time, introduce tools and strategies that increase your revenue and grow your audience.

Our latest report, The State of Modern Philanthropy 2021, elevated data trends from over 4,800 nonprofits to consider when establishing a modern donation experience.

Get ready to deep dive into new considerations based on new data and what it shows us for the future of fundraising. Download the full report to dive deeper into these insights, as well as many more.

1. Engage Supporters Through Desktop and Mobile

Support your donors by engaging them through both their desktops and mobile devices. While we found that 79% of total donations on Classy come from desktop users, 58% of total web traffic comes from mobile. Mobile traffic is notably higher. Their social media sources, accounting for 27% of total mobile traffic.

Desktop visitors may already be familiar with your cause, which could account for the higher donation rate we see. However, your supporters are increasingly on the go., Ensure your website and campaigns are mobile-friendly to capture donations from band new donors.

2. Segment Your Donation Pages

Classy allows you to provide four recommended gift size options on your campaign pages, as well as the option to include a prefilled donation amount. You can use these to send custom donation pages with tailored gift sizes and recommendations to different cohorts of donors.

For example, you can use pass-through parameters to send targeted campaign emails to your high-tier donors. Their suggested donation amounts are $2,000, $3,000, $4,000, and $5,000. For your entry-level donors, you could update those amounts to $10, $20, $30, or $40.

Taking time to segment your donors and customize their donation platforms can positively influence their giving behavior.

Take the first step to building donation pages that convert visitors into tangible donations for your cause through our on-demand lessons in Classy Academy.

3. Track Top Donor Acquisition Days

Keep an eye on your calendar to note your top donor acquisition days. 

Look for trends among the following:

  • Outreach strategies you used on those days
  • What time of year it was
  • Any other optimization tactics you may have implemented

By tracking your results year over year, you can explore opportunities for further acquisition and conversion optimization. You’ll learn effective re-engagement paths for segmented stewardship tracks.

4. Grow Your Recurring Giving Program

Recurring giving is a critical revenue source for nonprofits and is growing in popularity within an increasingly subscription-based economy.

For a modern donation experience, encourage recurring gifts through compelling storytelling and targeted campaigns. Consider the different types of recurring giving programs that might be best suited for your nonprofit’s community. Maybe you’ll tap into sponsorship opportunities or incentive levels to build and maintain recurring gifts.

You can also use donor segmentation to launch targeted email campaigns. Draft messages that suggest recurring gift options to donors who have already returned to your site to donate at least twice.

5. Incorporate Different Payment Options

The average monthly recurring gift made through ACH on Classy is 55% larger than recurring gifts made with credit cards. Additionally, there’s an 11-14% lift in mobile conversion rates when digital wallets are enabled.

Classy customer GallantFew enabled ACH and digital wallet payment options through Classy Pay. Their 2021 event held on Classy brought in $80,000 more in online donations than their 2020 event. This was with nearly one-third fewer registrants.

By offering digital wallets like Apple Pay, Microsoft Pay, and Google Pay, as well as ACH or e-checks, nonprofits create an easy, familiar experience for their donors.

6. Leverage Matching Campaigns

Campaigns that leverage donation matching on Classy raise three to five times more money than those that do not. Find the right donation match partner for your campaign, whether a corporate sponsor, local business, or individual. You can also run a campaign to crowdsource a future match.

You’ll want to make sure to market your match opportunity effectively on your campaign pages and in your email marketing. As you organize your match campaign, also beware of myths about these efforts, such as the thought that you can only leverage a match at certain times during the year, like year-end.

7. Frame Transaction Fees as Donations

Allow your supporters to go the extra mile and cover credit card processing fees. Our data shows that many will opt in to include that additional donation amount when presented the option. Classy offers a Classy Mode feature, which allows your donors to cover the transaction fees associated with their donations.

Classy customer Friedreich’s Ataxia Research Alliance has 90% of their recurring donors opt-in to pay their credit card processing fees, saving the nonprofit $104 per month.

GallantFew also reports having 92% of its donors choose to cover their transaction fees.

Make Simple Updates to Modernize Your Donation Experience

Minor adjustments can modernize and incentivize your donation experience for supporters. This makes for happy donors and more straightforward, more consistent revenue streams for you. 

If you get inspired to switch up fundraising to meet your year-end goals, take our free Benchmark Assessment. We’ll show you how your fundraising metrics stack up against the performance of over 4,800 other nonprofits on the Classy platform. 

Just a few minutes of your time to submit your current fundraising results lets you instantly uncover areas of opportunity to improve your strategy and results.

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How to Attract, Retain, and Delight the Modern Recurring Donor [REPORT] https://www.classy.org/blog/recurring-donation-report/ Wed, 21 Jul 2021 00:00:00 +0000 https://www.classy.org/blog/recurring-donation-report/ A recurring donation program is essential to a well-rounded fundraising strategy. 

Whether you have a recurring giving option or a robust recurring giving program, our 2021 Recurring Donor Sentiment Report brings you direct feedback and data points to optimize your efforts.

We surveyed over 1,000 recurring donors to learn what exactly motivates recurring donors to give, incentivizes them to stay, and causes them to abandon their recurring gift subscriptions.

Learn From Recurring Donors Themselves

Today, we’re revealing our findings around the qualitative feelings and sentiments that drive recurring donors. That means you can reduce the guesswork that goes into building a strong recurring gift program

The data for our 2021 Recurring Donor Sentiment Report was conducted through a third-party survey of recurring donors who give to various U.S. organizations across an array of platforms and frequencies. 

Here’s a snapshot of some findings that may surprise you:

recurring-donation-stats

Get these exact stats and over 40 more inside the report.

 

Fuel More Recurring Donations With Fresh Data

recurring-donor-sentiment-report

Get the full picture on recurring giving today, including:

  • A pulse check on the state of subscription giving
  • Top recurring gift motivators and incentives
  • Considerations to avoid recurring donor churn
  • Actions to attract and retain recurring gifts
  • How recurring donors take action outside of just monetary donations

Benchmark Your Recurring Donation Strategy

To understand where your recurring giving approach falls alongside over 4,800 nonprofits on Classy, we’ve designed a free, simple Benchmark Assessment to help you gauge your performance.

Simply input your fundraising metrics into our quick assessment and receive instant results on just how many donation dollars you could potentially see with a strong recurring giving program in place.

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Insights to Future-Proof Your Fundraising [INFOGRAPHIC] https://www.classy.org/blog/fundraising-success-insights/ Wed, 30 Jun 2021 00:00:00 +0000 https://www.classy.org/blog/fundraising-success-insights/ The State of Modern Philanthropy 2021: Future-Proofing Your Fundraising reveals insights on fundraising success in the wake of a tumultuous year. While Classy’s annual report always seeks to explore the latest in donor behavior and offer insights that help organizations grow and scale, this edition focused on the strategies that not only proved effective but served as a means of strategic safeguarding into the future. 

From stats on conversion and acquisition to retention and supporter experience, check out the infographic below to get a peek at the data from the 2021 report. Download the full report for a more detailed analysis and findings. 

Insights for Future-Proof Fundraising Success

classy year fundraising infographic

See How Future-Ready Your Nonprofit Is Today

It’s one thing to track metrics, and another to understand the story they tell about where your organization is today and what the most valuable actions to take for the future will be. 

We created a free Benchmark Assessment to surface actionable fundraising takeaways based on your organization’s current metrics. You can now get instant access to new opportunities for growth based on the success of Classy’s most innovative and passionate nonprofit customers. Get instant results with a few minutes of your time to make sure no donation is left on the table to support your cause. 

 

Achieve Success Backed by Timely Fundraising Data

The organizations best-positioned to grow and scale in the face of uncertainty are the nonprofits that leverage a healthy mix of online fundraising campaigns and tactics. Dive into The State of Modern Philanthropy 2021: Future-Proofing Your Fundraising to explore the strategies that proved fruitful and learn how to apply the data to your own approach. 

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Top Fundraising Benchmarks to Share With Your Nonprofit Board [SLIDESHARE] https://www.classy.org/blog/nonprofit-board-fundraising-benchmarks/ Wed, 23 Jun 2021 00:00:00 +0000 https://www.classy.org/blog/nonprofit-board-fundraising-benchmarks/ When your work changes the world daily, your nonprofit board should see just how impactful it is. We’ve made it easier than ever to effectively showcase your performance with three easy steps and our latest fundraising insights.

Fundraising benchmarks help you elevate where your current strategy shines compared to peers in the sector. Present clear areas of opportunity with data-driven recommendations that lead your organization down a proactive path to success. 

The State of Modern Philanthropy 2021 deep dives into the latest fundraising data and actionable takeaways based on the performance of over 4,800 nonprofits. 

After you’ve soaked in the full report, use this SlideShare to easily and strategically elevate findings that align with your nonprofit board’s priorities.

Step 1: Understand the Common Priorities of a Nonprofit Board

  • Secure long-term financial stability: Ensure the organization is fiscally responsible with an appropriate budget 
  • Advance the mission: Align all activities and supporter experiences back to the organization’s goals and mission, with a high return on investment
  • Maximize fundraising efficiency: Confirm that every fundraising program and activity delivers the most substantial outcome for the input of costs, employee hours, and resources 

Step 2: Know Which Fundraising Benchmarks to Share With Your Nonprofit Board

Share these slides with your nonprofit board directly, and use our game plan in step three to bring thoughtful considerations to the table. 

Step 3: Present Compelling Recommendations to Your Nonprofit Board 

Fundraising Benchmark: ACH payments resulted in a 55% larger average recurring donation than a credit card payment.

NONPROFIT BOARD PRIORITY: Secure long-term financial stability.

RECOMMENDATIONS AND CONSIDERATIONS: Elevate the value that an ACH payment option can have on your existing fundraising campaigns. Add this option to all donation checkout pages to allow donors to donate straight from their bank account. 

Share the impact that lower ACH processing fees and decreased risk of an expired credit card would make for your organization.

STAY PREPARED: How Classy Pay Supports ACH and Continues Fight Against Fraud

Fundraising Benchmark: Of organizations that raise over $50 million online annually, the percent of revenue from recurring gifts increased from 26% in 2019 to 37% in 2020.

NONPROFIT BOARD PRIORITY: Secure long-term financial stability.

RECOMMENDATIONS AND CONSIDERATIONS: Invest in recurring giving as the future of sustainable revenue for your nonprofit. Deliver creative ideas around how to build a program that lasts all year, offers new incentives to recurring donors, and attracts more supporters to your cause. 

STAY PREPARED: The Ultimate Guide to Recurring Giving 

Fundraising Benchmark: Campaigns that leverage donation matching raise 3 to 5 times more than those that do not.

NONPROFIT BOARD PRIORITY: Advance the mission.

RECOMMENDATIONS AND CONSIDERATIONS: Bring a donation match into campaigns throughout the entire year from various pools of matching funds. Get creative to support a greater sense of urgency among donors who give more due to their gift being doubled. 

Your nonprofit board might even be able to support some of your first donation matches if you’re just getting started or help you identify critical significant donors and corporate sponsors to elevate the impact of donation matching.

STAY PREPARED: Don’t Let These 8 Donation Match Myths Hold You Back

Fundraising Benchmark: Four out of five donors to an individual peer-to-peer fundraiser page are new to the organization.

NONPROFIT BOARD PRIORITY: Advance the mission.

RECOMMENDATIONS AND CONSIDERATIONS: Prioritize several peer-to-peer fundraising campaigns throughout the year that give supporters the tools and ideas they need to fundraise on your behalf and introduce new donors along the way, with less work on your teams.

STAY PREPARED: Checklists for Crowdfunding, Peer-to-Peer, and Event Fundraising Campaigns

Fundraising Benchmark: An event typically raises 4.5 times more money when attendees fundraise on the organization’s behalf through registration with fundraising campaigns.

NONPROFIT BOARD PRIORITY: Maximize fundraising efficiency.

RECOMMENDATIONS AND CONSIDERATIONS: Pivot events to include the opportunity for participants to fundraise, so they can create a greater significant financial impact. Activate event attendees to raise more and expand your audience.

STAY PREPARED: The Anatomy of a Successful Registration With Fundraising Campaign

Fundraising Benchmark: When digital wallets are enabled, organizations see an 11-14% lift in mobile donor conversion rates.

NONPROFIT BOARD PRIORITY: Maximize fundraising efficiency.

RECOMMENDATIONS AND CONSIDERATIONS: See where you can offer more flexibility in payment options like digital wallets to meet donors where they’re at. This option is something you can turn on once and continue to see an impact in every campaign you create for the future. 

As the world moves more to touchless payment options, your organization has the opportunity to get ahead of a modern donor experience that pays off.

STAY PREPARED: 10 Proven Tips to Supercharge Your Online Fundraising Campaigns

Show Your Fundraising Impact With Ease 

Use key insights from over 4,800 organizations, 46,000 active campaigns, and 9.4 million transactions to show your nonprofit board you’re prepared for anything the future holds. 

The State of Modern Philanthropy 2021 features the following benchmark data to measure your efforts against:

  • One-time (non-recurring) donation size
  • Recurring donation size
  • Amount raised by various campaign types
  • Amount raised by a peer-to-peer fundraising page

Take It to the Next Level With a Personalized Fundraising Analysis

Our free Benchmark Assessment applies The State of Modern Philanthropy 2021 findings directly to your organization’s fundraising results.

Receive an instant analysis to uncover new opportunities and present clear and actionable plans to your nonprofit board.

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How President Biden’s Proposed Tax Plan Could Incentivize Charitable Giving https://www.classy.org/blog/proposed-tax-plan-for-nonprofits/ Fri, 28 May 2021 00:00:00 +0000 https://www.classy.org/blog/proposed-tax-plan-for-nonprofits/ This post is written by Jordan Keller of Dark Horse CPAs. Jordan has broad experience providing comprehensive tax and accounting services across many industries and specializes in serving nonprofit organizations.

President Biden’s proposed tax plan has raised a number of questions, particularly from charitable organizations that rely on tax-deductible donations to fund their efforts. Although donating to charity to reduce tax liabilities is not a new concept, Biden’s proposed tax increases might further incentivize high-earning donors to consider this option.

It’s important to note that this proposed tax plan has not yet been passed by Congress, and there may still be major changes made by the Biden administration, but this post will help your nonprofit understand the implications of his current proposal by breaking down the policies that could impact charitable giving and what they mean for your organization.

Proposed Policies Your Nonprofit Should Note

On April 28, President Biden proposed his $1.8 trillion American Families Plan, which is intended to grow the middle class, expand the benefits of economic growth to all Americans, and reinvest in the future of our country’s economy.

To help fund this plan, the president has proposed to boost the taxes on the U.S.’s most affluent individuals and families in a number of ways, including raising the capital gains tax for people earning $1 million or more, increasing the corporate income tax rate, and eliminating the stepped up basis of assets for estate taxation.

Proposed Increase of the Top End Capital Gains Tax

The first key component of the president’s proposed tax plan is to raise the top end of the capital gains rate to 39.6%, which is nearly twice as much as the current 20% tax. If you include the net investment income tax, the top rate jumps to 43.4%.

The intention is that Americans in the top tier tax bracket should pay the same rate on long-term capital gains as they do on ordinary income. As it stands, the top marginal tax rate on ordinary income is 37%, but the president has proposed to increase this rate to 39.6% as well, which would apply to 2022 income above $452,000 for individuals and $509,300 for joint filers.

Proposed Increase of the Corporate Income Tax Rate

Secondly, President Biden has proposed to increase the corporate income tax from 21% to 28% and impose a 15% minimum book tax on large corporations with over $100 million in book income (a company’s financial income before taxes which is publicly reported to its investors and shareholders).

These proposals would repeal the changes to the corporate tax made by the Tax Cuts and Jobs Act (TCJA) in late 2017 with the goal to target gaps between financial and taxable income and ultimately promote tax fairness. This change could help generate the revenues to finance needed investments and reduce the disproportionate share of tax benefits received by corporations and households at the top.

Proposed Elimination of the Stepped Up Basis for Estate Taxation

The last key component we’ll be covering is President Biden’s proposition to eliminate the stepped up basis, which currently minimizes the capital gains tax on an asset when it’s sold by the person who inherited it.

Under current law, the stepped up basis states that when the inheritor sells the asset they’ve been gifted, they only pay capital gains tax on the difference between the selling price of the asset and the fair market value at the date of inheritance, rather than the difference between the selling price and the original price it was purchased for by the decedent.

President Biden’s proposal would change the treatment of the capital gains tax on assets when people pass away by requiring that the estate of the deceased person pay a 39.6% tax on the total acquired capital gains, from the date it was purchased to the date of the owner’s death, before it’s gifted to the designated beneficiary.

The goal here is to capture tax revenue from very well-off people who may not have assets valuable enough to be subject to the estate tax, which currently allows for an individual to leave $11.7 million to their heirs and pay no federal estate tax when it’s passed down. President Biden is proposing to restore this limit to its 2009 level of $3.5 million per person at a 45% tax rate.

Continued Impact of the CARES Act on 2021 Charitable Giving

Under the 2020 CARES Act, the maximum 60% tax deduction for cash donations was lifted and it will remain that way for donors in 2021. Anyone who gives up to $300 in cash, whether they itemize or not, can deduct up to 100% of their adjusted gross income (considered an “Above the Line” deduction).

The adjusted gross income for cash contributions also remains increased for corporate donors, who can now deduct up to 25% of taxable income. This is a major increase from the 10% deduction prior to the CARES Act.

New this year, any joint filers who aren’t itemizing will also be allowed to take an Above the Line deduction up to $600 in cash contributions. President Biden has proposed making these deductions permanent to continue incentivizing charitable contributions.

Why These Proposed Tax Reforms Matter for Your Nonprofit

Reducing tax liabilities through charitable contributions is a longstanding practice, but the proposed tax rate increase for both individual and corporate taxpayers could further incentivize charitable giving. In addition, elimination of the stepped up basis could fuel a new conversation between you and your donors about the benefits of planned giving.

By gifting an asset to a charitable organization, donors can hold onto the full appreciated value of that asset, take the tax deduction, and avoid the capital gains rate. Keep this in mind when connecting with your donors who might be impacted by this tax reform in order to strategize your appeals and target the appropriate audience.

Jordan Keller has broad experience across many industries in both accounting and tax and has deep knowledge of the following industries: real estate, health care, nonprofit, retail and eCommerce, construction, and manufacturing. Learn more about Dark Horse CPAs. 

The views expressed are not intended to be legal or accounting advice and are not endorsed by Classy, Inc. (“Classy”). Further, the content is not the advice of Classy nor any of its personnel, and neither Classy nor the author bears any responsibility for the content of this post. The information included in this post has not been verified by Classy for accuracy.

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Future-Proofing Your Fundraising: The State of Modern Philanthropy 2021 [REPORT] https://www.classy.org/blog/state-of-modern-philanthropy-future-proof-fundraising/ Mon, 24 May 2021 00:00:00 +0000 https://www.classy.org/blog/state-of-modern-philanthropy-future-proof-fundraising/ Today’s nonprofit organizations will still require regular evaluation against data-driven insights to thrive into the future.

In 2021, we’ve surfaced the most valuable and forward-thinking insights from over 4,800 organizations and across 46,000 campaigns. Collectively, these new data points and recommendations give charitable organizations and leaders across the sector a clear path forward through the fundraising landscape.

Key Lessons From a Year Like No Other 

The State of Modern Philanthropy 2021 dives into fundraising data from 2020 that will help organizations optimize their supporter acquisition and conversion, retention, and supporter giving experience to maximize donor lifetime value—no matter what circumstances the future might hold.

We don’t pretend to know what the future holds, but with the right planning, we can continue to design solutions that will keep your nonprofit mission moving forward. We hope that the findings in this report inspire and inform your work. It is through your dedication, sacrifice, and determination that we will move the world forward in the years to come.

- Soraya Alexander

SVP of Marketing and Customer Growth at Classy

We’ve designed The State of Modern Philanthropy to make it easier than ever to apply key findings in a way that’s unique to your organization.

Strengthen decision-making with fundraising insights such as: 

state of modern philanthropy

Benchmark Your Fundraising Potential

This year’s report comes right alongside the launch of our first online Benchmark Assessment. Take our free assessment to see how your fundraising results stack up against larger trends surfaced in The State of Modern Philanthropy.

Receive instant results that uncover new opportunities and access custom resources for a clear path to greater fundraising success.

How the State of Modern Philanthropy Has Evolved

See just how far the industry has come with a look at past reports:

The State of Modern Philanthropy 2020: Deconstructing the Online Donor Journey

The State of Modern Philanthropy 2019: Trends in Return Donor Behavior

The State of Modern Philanthropy 2018: Examining Online Fundraising Trends

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10 Reasons to Attend the Collaborative: Virtual Sessions https://www.classy.org/blog/reasons-attend-collaborative-virtual-sessions/ Fri, 07 May 2021 00:00:00 +0000 https://www.classy.org/blog/reasons-attend-collaborative-virtual-sessions/ This is a guest post written by event planner Alexa Steevens on the Classy events team.

The Collaborative: Virtual Sessions, hosted by Classy, is an online conference designed exclusively for nonprofit and social sector professionals. We created the event to encourage collaboration and meaningful connections. Our goal is to provide nonprofits the space for new insights, strategies, and inspiration to accelerate and maximize their organizations’ impact.

For the second year in a row, the Collaborative: Virtual Sessions is completely free, and completely virtual. From June 8 to 11, 2021, attendees will have access to dozens of live sessions, workshops, and experiences that we developed through extensive partnerships with the industry’s top experts and practitioners.

Our attendees are guaranteed to walk away with tangible tips to grow your organization and continue to generate meaningful impact in an ever-evolving sector.

Whether you’re a fundraising and marketing professional, an executive, a social entrepreneur, or a technology professional, read on to learn our top 10 reasons to attend the 2021 Collaborative: Virtual Sessions.

10 Reasons to Attend the Collaborative: Virtual Sessions

1. It’s Absolutely Free

We said it before, and we’ll say it again. The four-day Collaborative: Virtual Sessions will feature over 50 online sessions, product demos, networking opportunities, and roundtable discussions for you to access for free in the comfort of your own space.

If we’ve learned anything in the past year, it’s that connection with like-minded leaders has never been more critical to the sustained success of our industry. That’s why our goal for the 2021 event remains the same, making this experience available for everyone, everywhere.

2. You’ll Have Access to the Session Content You Want to Hear Most

Classy is dedicated to providing the content you want to learn. We listen to our attendees’ wants and concerns and present thoughtful commentary on topics that the nonprofit industry needs to address.

It’s precisely this knowledge and feedback that help us curate a program full of industry leaders and risers who are eager to share their insights and ideas on the current and future landscape of the sector.

From the future of virtual fundraising to today’s essential leadership strategies, you’ll walk away with actionable advice after each of the four days.

Sample Session Topics to Expect:

  • Resilience and mental health
  • Data trends
  • Virtual events
  • Design and branding
  • Fundraising and marketing
  • Future of fundraising
  • Leadership, management, and culture
  • Recurring giving
  • Stakeholder engagement and partnerships
  • Technology
  • Classy product sessions and demos

3. You’ll Have Takeaways to Implement Immediately

As a Collaborative attendee, you’ll gain access to presentation decks, session recordings, and dedicated time for Q&A with our speakers. Our goal is to ensure you leave sessions feeling empowered and ready to tackle the complex landscape we’ve come to experience today.

You’ll have access to on-demand recordings of each session to refer back to all event content and tools at any time, or share with team members who weren’t able to attend the live sessions.

4. You Can Build Your Own Custom Session Schedule

We would love for you to join every session during our live event, but we understand your time is limited. That’s why we’re offering a mix of one-hour and 30-minute sessions. You’ll have the freedom to select as many individual sessions as you would like based on your availability, time, and interest.

If you’re eager to learn even more before we go live in June, this recap of our 2020 Collaborative will give you a good idea of the insights you can expect.

5. You’ll Experience the Classy Awards

The Classy Awards are returning for the first time since 2017 to honor today’s most innovative nonprofits and social enterprises that are addressing the world’s social and environmental challenges.

Our Collaborative attendees will get a first look at the 50 Finalists announced at our event live. If you’d like to see your team recognized alongside some of the most reputable organizations in the social sector, be sure to check out all the details on how to submit a nomination for the Classy Awards.

classy speaker

6. You’ll Have New Opportunities to Form Meaningful Connections

Virtual doesn’t mean isolated. We built the Collaborative on the belief that growth happens when we connect, support, and inspire each other.

When you attend, you’ll gain access to our all-in-one virtual platform to participate in intimate group discussions broken out by topics that interest you, cause-sectors, and subject matter specific to your role, during our networking breaks.

We’ve set the stage to encourage all attendees to learn from leaders in the nonprofit space, connect with the Classy team, and engage in live video roundtable discussions with our speakers.

7. Your Entire Team Can Participate

In-person conferences are important settings for learning and professional development, but we understand travel expenses add up. The reality is it can be tough to take more than a couple of team members away from their work.

We encourage you to take advantage of our virtual conference experience to invite anyone on your team who can tune in throughout the event right from their desk or kitchen table.

collaborative-virtual-sessions-pro-tip
Divide and conquer. Divvy up sessions between your team, then come together to share your learnings.

8. You Can Earn Continuing Education Points

The Collaborative: Virtual Sessions is an approved Continuing Education Provider for the Certified Fund Raising Executive program.

By participating in our event, you’ll be eligible to earn points towards initial certification and recertification that shows your accountability, service, and commitment to making a difference for good.

9. You’ll Learn About Leading Services and Resources to Advance Your Mission

Don’t worry about missing out on the excitement of visiting educational booths.

The Collaborative: Virtual Sessions will feature over 20 exhibit booths full of downloadable resources, demonstrations, and “mini-sessions” developed by key partners and providers to help advance your mission.

When you “visit” a booth, you’ll be able to schedule one-on-one appointments as well as video chat with booth representatives in a one-to-many setting.

10. Together We Will

No matter how hard the past year-plus has been for your organization, or for yourself personally, we must all come together to show up stronger than ever before. Come together with Classy this June and let’s all move forward together.

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What Nonprofits Need to Know About the Apple iOS 14 Update https://www.classy.org/blog/nonprofits-apple-ios-14-update/ Thu, 06 May 2021 00:00:00 +0000 https://www.classy.org/blog/nonprofits-apple-ios-14-update/ In an effort to strengthen user privacy and informed data use, Apple recently launched changes that apply to iOS 14 devices and others moving forward. Specifically, this change requires that apps in the App Store provide a prompt to iOS 14 users if they’re doing any “tracking” activity. Apple’s AppTrackingTransparency framework prohibits certain data collection and sharing unless people opt in to tracking on iOS 14 devices via the prompt.

This change impacts any businesses that advertise mobile apps or optimize, target, and report on web conversion events from various business tools. As more people opt out of tracking on iOS 14 devices, ad personalization and performance reporting will be limited for both app and web conversion events, which includes the act of making a donation. 

We consulted with Classy partner Community Boost, a digital marketing agency working with nonprofits to help them accelerate and scale online revenue and impact. With their expert insight, we’ll cover Apple’s changes in more detail, how they could impact your nonprofit’s fundraising and marketing efforts, and steps to take in response to the change.

Overview of Apple’s iOS 14 Changes

Before diving into how Apple’s changes impact your nonprofit, it’s useful to understand exactly what these changes are.

Tracking Transparency

The first main change is that all apps must now ask users for permission to track their activity across apps and websites through third-party pixels. 

App developers will now have to display a tracking prompt pop-up when a new user downloads their app that tells the user what data will be collected and how it will be used.

Ernie Civic

Area Practice Manager, Community Boost

Users then have to specifically agree to sharing their data before you can collect it to inform your targeted marketing efforts.

New App Attribution

Apps downloaded by a user in the Apple App Store are now also subject to a new attribution solution. 

Historically, organizations were able to obtain a 28-day lookback period on a user’s activity and track the process they went through before making a purchase or donation. This was useful for marketers since it typically takes 3 to 4 touchpoints before someone completes an action.

Ernie Civic

Area Practice Manager, Community Boost

The new attribution, SKAdNetwork, uses last click-only attribution. This limits organizations to a seven-day lookback. It also delays delivering that information to an organization between 24 to 48 hours. Nonprofits will still be able to see the basic success of ad conversion rates through this attribution, but won’t have data as specific on user identities and which audiences responded more positively to the ad.

Device-Level Intelligent Tracking Prevention (ITP)

A third main change is an expansion of ITP use.

ITP is a privacy feature developed by WebKit and used by Apple’s Safari browser since 2017. It seeks to protect users’ online privacy, limiting the ways advertisers and site owners can track users across domains to personalize content and advertise goods and services. With the most recent iOS update, ITP was enabled at the device level for iOS devices and is active across all browsers on these devices.

Ernie Civic

Area Practice Manager, Community Boost

Potential Challenges for Nonprofits

Now that you’re familiar with the changes, the next step is understanding how they impact your nonprofit’s marketing efforts.

Limited Ability to Target and Build Specific Audiences

Given that tracking on iOS 14 is now an opt-in system, the audience from which you’re able to collect data is much smaller than normal. Community Boost expects a drop from 70% of users sharing their data to only roughly 10 to 15% of them doing so.

As a result, nonprofits will likely lose some ability to target specific audiences using demographic and interest data with ads. 

Since this information will be less accessible, nonprofits won’t be able to leverage things like lookalike audiences as well as they once could. Audience building will also become difficult since iOS 14 removes certain features like detailed interest targeting, retargeting, niche lookalike audiences, and more.

Ernie Civic

Area Practice Manager, Community Boost

Optimization Impacted by Conversion Data Delays and Event Limits

The iOS 14 updates also bring reporting delays. Conversion data can be delayed up to three days. This means nonprofits have limited ability to optimize their ads because the data they receive at any given time is off from what’s happening real-time.

Facebook Ad users are now also limited to tracking eight events. Therefore, they’ll need to have a good idea of what their conversion funnel is—meaning the path an individual takes before making a donation or purchase—and which conversion funnel matters most. 

Users won’t be able to track separate events for different conversion funnels, such as making a donation or signing up to volunteer. In addition, the ‘purchase’ event always fires for Classy donations, so there may be some conflict with other events that nonprofits want to track. If your nonprofit also wants to track shop purchases, for example, there won’t be as much wiggle room as there used to be in terms of using different events.

Ernie Civic

Area Practice Manager, Community Boost

Must Have a Subdomain

Pay As You Go Classy users will likely run into tracking issues because their campaign pages won’t be on a subdomain. For example, let’s say your campaign page exists at classy.org/CampaignName. Facebook won’t allow you to run ads for that page without verifying that the domain (i.e., classy.org) is actually you. 

However, Facebook will only verify a domain name for one organization; it can’t be tied to hundreds of organizations. Therefore, since classy.org is already verified for use by Classy, your nonprofit won’t be able to collect Facebook tracking information for your campaign page. You would have to have a subdomain to do so (e.g., OurNonprofit.classy.org).

Steps Your Nonprofit Should Take in Response

While the iOS 14 updates undoubtedly cause some disruptions in how nonprofits receive and use data on their supporters, there are some steps you can take in response to the change.

1. Verify Domain and Install Meta-Tags

A critical first step to respond to these changes is to get your domain verified since both Facebook and iOS 14 updates require this. They basically want to confirm that you are who you say you are before you can track data and run ads through their platforms.

The verification process involves installing meta-tags onto your website. These don’t appear publicly, but rather live in your page’s source code. You obtain the meta-tag—a unique string of text for your specific organization’s page—from a platform like Facebook, which will then verify that what they’ve provided you is what also appears on your website. Once this verification syncs with Facebook, it tells Facebook that you own the domain to which you’re running ads.

Community Boost can assist nonprofits in ensuring these features are properly set up.

2. Collect First-Party Data

Previously, nonprofits may have relied on tools like Facebook Pixel to gather data on potential supporters. Facebook Pixel provides third-party data through putting a cookie on a user’s browser that can then match searches back to a user’s Facebook data. 

However, with the iOS 14 updates, people have to intentionally choose to provide those data to organizations. Since a 30 to 40% drop is expected for the data collected through these means, nonprofits won’t know as much about how particular users interact with their organizations, making it more difficult to retarget audiences. Therefore, now is a good time for nonprofits to focus on upping their efforts to collect first-party data on supporters to fill in this data gap.

First-party data includes efforts such as using Facebook messenger to connect with supporters, email campaigns, and other campaign efforts where supporters willingly choose to provide you with information like name, email address, age, and other information that could be useful for marketing purposes. You can then import these first-party data sources into Facebook to match people back with their Facebook data.

Getting started on collecting first-party data is particularly important for smaller businesses and nonprofits who might have less of this information to begin with compared to larger, more established organizations. Without collecting these data, it’s harder for smaller and newer organizations to get discovered since they don’t have thousands of contacts to connect with right off the bat.

Understand and Respond to Apple iOS 14 Updates to Keep Your Nonprofit’s Efforts Thriving

As you adapt to the iOS 14 changes, know that there may also be some benefits to these updates down the road. 

While initial data collection may decrease, the quality of the data nonprofits do receive will likely be better since it’s coming only from users specifically choosing to opt in. In addition, big platforms like Google and Facebook may also start to help with data analysis by aggregating their large data sets for organizations to see trends within their smaller data sets. The obstacle is the way. Forward thinking nonprofit leaders that build a strong first party data strategy and infrastructure will undoubtedly have a competitive advantage in the years ahead.

Ernie Civic

Area Practice Manager, Community Boost

Apple’s iOS 14 updates may feel a bit overwhelming, but both the Classy team and Community Boost are here to help you work through the changes and keep your mission thriving.

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