If you’re in charge of promoting a nonprofit, you already know the importance of donations. It’s the fuel that drives your mission and allows you to make a positive difference in the world.
Despite the selfless nature of nonprofits and the increasing number of charities, fundraising remains a challenge. The overall donations saw a 1.7% decline in 2022—marking the first contribution decrease since 2012.
There's no surprise because people are swamped with oversensationalized media headlines, bombarded with paid ads, and constantly exposed to short-form content designed to hold their attention. As a nonprofit, you have to cut through all this noise to convince people to donate to your cause.
The good news is that you can do this by making a few conscious choices. In this article, we outline 15 proven ways nonprofits can increase donations. Whether you're a large international nonprofit or a small charity, these approaches can help you unlock new funding streams and maximize your impact.
Strategy 1: Foster active community engagement
Cultivating strong community engagement is crucial for nonprofit organizations seeking donor support and involvement. Statistics reveal that 85% of U.S. donors are also volunteers, indicating a clear correlation between community participation and donations.
To build a robust community, your nonprofit needs to give people meaningful ways to get involved. Usually, it involves organizing events in line with the nonprofit’s mission. These programs help nonprofits build stronger relationships with their members and give them rewarding experiences. Regular updates about these volunteer opportunities through newsletters, social media, and community meetings are great ways to keep the community spirit high.
Recognizing and appreciating the efforts of community members can also go a long way in fostering loyalty and continuous support. Simple gestures like thank-you notes, public acknowledgments, and small tokens of appreciation can make volunteers feel valued and more connected to the cause.
Strategy 2: Tell impactful stories
Storytelling is a powerful tool for nonprofits to connect with potential donors on an emotional level and inspire them to take action. Tell compelling stories about the impact of your work and the lives you've touched. Sharing compelling narratives and humanizing your cause will make people feel closer to it.
The Most Shocking Second a Day campaign by Save the Children is a great example. The campaign had a hero video that showed how the Syrian war changed a girl's ordinary life into one of fear and displacement. It worked because the video humanized and gave a face to the Syrian refugee crisis. It evoked empathy and highlighted the devastating impact of conflict on children.
Highlight beneficiary stories
Present real-life accounts of individuals or communities your organization has helped. Show how your program transformed their lives. These personal accounts can humanize your cause and demonstrate the tangible impact of donations.
Use multimedia elements
People prefer different content types, so use different forms of media for storytelling. Incorporate videos, photos, and audio clips to bring your stories to life. Visual storytelling can be incredibly powerful and engaging, allowing donors to connect with your cause more deeply.
Data storytelling
While personal stories play a significant role, quantifying your organization's impact with data and statistics is equally important. Share measurable results, such as the number of people served, resources provided, or positive outcomes achieved.
Highlight your people
our volunteers and staff are often the unsung heroes behind your organization's success. Share their stories, motivations, and experiences to showcase the dedication and passion that drives your work.
Create a consistent narrative
Create a cohesive narrative that ties together your organization's mission, values, and impact. The message should be consistent across all your communication channels, from your website to social media to donor communications.
Strategy 3: Improve your online presence
A strong and engaging online presence is a non-negotiable for nonprofits hoping to increase donations. Here are a few ways to do that.
Create a compelling website
Invest in a well-designed, mobile-responsive website that clearly communicates your mission, programs, and impact. Your website should highlight compelling stories, statistics, and visuals that resonate with potential donors. It should be easy to navigate and have clear calls to action, like the "Donate Now" button. Here’s how we did it for Ronald McDonald House Charities Connecticut and Western Massachusetts chapter:
Optimize your donation page
Your donation page is where the magic happens. Nonprofits lose donations because their donation pages are either too complicated or not compelling enough. Your donation page should make it easy for donors to contribute. Don't limit your donors to one payment option; offer recurring donation options. Incorporate elements like progress bars, recommended donation amounts, and processing fee coverage to get more conversions.
Leverage Google Ad grants
Google provides advertising credits to nonprofits that meet their criteria. Eligible nonprofits can receive up to $10,000 per month in ad credits. Run targeted advertising to raise awareness, attract donors, and recruit volunteers through targeted ad campaigns.
Embrace social media
Social media platforms like Facebook, Twitter, Instagram, and LinkedIn are powerful tools for nonprofits to connect with supporters, share updates, and promote fundraising campaigns. Develop an effective social media strategy, share compelling content, and engage with your audience to build a strong online community.
Build your email list
Email marketing remains an effective channel for nonprofits to communicate with donors and supporters. Create an email marketing strategy that shares regular updates, success stories, and fundraising appeals. Segment your email lists and personalize content for better engagement.
Social media platforms offer a powerful tool for nonprofits to reach and engage with potential donors, raise awareness about their cause, and drive fundraising efforts. By implementing a targeted social media marketing strategy, you can amplify your message, connect with new audiences, and cultivate a community of supporters. Charity Water is an example of a nonprofit that is doing well on social media.
Here are a few steps to get you started:
Identify your target audiences
Research your ideal donors' demographics, interests, and online behaviors. This customer research will help you tailor social media content and advertising to resonate with the right target audience.
Develop a content strategy
Create a content calendar that’s easy to follow. Share a mix of educational, inspirational, and fundraising content. Use different media, including videos, images, memes, gifs, and text. Engage your audience by asking questions, running polls, and encouraging discussions.
Leverage paid advertising
While organic traffic is valuable, consider investing in paid social media advertising to amplify your message. Diversifying to platforms like Facebook, Instagram, TikTok, and Twitter will help you reach new audiences. Most of these platforms provide powerful targeting options to help you reach the right audience with your ads.
Encourage user-generated content
Empower your supporters to become brand ambassadors by encouraging them to share their stories, experiences, and connections with your organization on social media. User-generated content can be incredibly powerful in building trust and credibility.
Analyze and optimize
Regularly analyze your social media performance metrics, such as engagement rates, click-through rates, and conversions. Use these insights to optimize your content, targeting, and advertising strategies for better results.
Strategy 5: Embrace recurring donation programs
Recurring donation programs create a reliable and predictable revenue stream for nonprofits. Create a donor retention program encouraging supporters to make ongoing, automated contributions. It also fosters long-term donor relationships.
Here’s an example of this in action:
Here are a few ways to get recurring donations:
Make it easy
Whenever you ask donors to authorize payments, you create friction, so set up a system that preauthorizes standing payments. Make sure that your donation platform or website offers a seamless and user-friendly experience for setting up recurring donations. Provide clear instructions, multiple payment options, and the ability to manage or update their contributions easily.
Offer incentives
Consider offering incentives or rewards for recurring donors, such as exclusive updates, special recognition, or unique experiences related to your cause. It encourages long-term commitment and loyalty.
Provide flexible options
While monthly recurring donations are popular, many people prefer different payment cycles. Allow donors the flexibility to adjust their contribution amounts and frequency (e.g., quarterly, annually).
Segment and personalize
Segment your recurring donors and tailor your communications to them. Share updates on how their ongoing support makes a difference, and express your gratitude for their ongoing commitment.
Highlight the benefits
Educate your donors on the importance of recurring donations. Explain how regular contributions provide stability and sustainability. Make sure donors understand how their contributions enable your organization to respond quickly to emerging needs and opportunities.
Strategy 6: Increase referrals and word-of-mouth marketing
According to the 2021 Trust in Advertising study by Nielsen Group, 88% of those surveyed trust the recommendations of people they know. Nonprofits can take advantage of this and use word-of-mouth marketing to raise donations. `Encourage referrals and harness the power of social proof to reach new networks of potential donors.
Make it easy to refer
Set up an easy-to-use referral program on your website. Choose a fundraising platform that offers user-friendly tools for individuals to create and customize their personal fundraising pages. Provide templates, images, and suggested messaging to make it easy for them to get started. Your supporters should be able to share your message with their networks via email, social media, or personalized links.
Offer Incentives for Referrals
Consider offering incentives to the referrer and the new donor. Incentives could be discounted event tickets, merchandise, or exclusive access and updates. It can motivate supporters to spread the word and attract new contributors.
Highlight donor stories and testimonials
Share compelling stories and testimonials from existing donors about their experiences supporting your organization. This social proof can inspire others to join your community and contribute to your cause.
Encourage social sharing
Make it easy for supporters to share your content and campaigns on their social media channels by incorporating social sharing buttons on your website, emails, and donation pages.
Leverage online reviews and ratings
Encourage satisfied donors to leave positive reviews on platforms like Google My Business, Charity Navigator, or GuideStar. Positive online reviews can enhance your organization's credibility and attract new supporters.
Offer support and resources
Provide your fundraisers with ongoing support, training materials, and guidance. Teach them how to reach out to their networks. Consider hosting webinars or Q&A sessions to answer their questions.
Strategy 7: Get creative with fundraising tactics
While traditional fundraising methods like direct mail appeals and gala events still have their place, don't be afraid to think outside the box and explore creative fundraising tactics that can engage your audience in new and exciting ways.
One notable example is the ALS Ice Bucket Challenge. In the summer of 2014, this viral campaign took social media by storm. Participants were challenged to dump a bucket of ice water over their heads, share a video of the act on social media, and nominate others to do the same within 24 hours or donate to ALS research. Many did both. The campaign not only raised awareness for Amyotrophic Lateral Sclerosis (ALS) but also generated over $115 million for the ALS Association in just a few months.
Host online auctions or raffles
Auctions are a great way to raise money for your cause while allowing your supporters to have some fun bidding on unique stuff. Many online platforms let you host virtual auctions and raffles.
These events allow your supporters to have some fun bidding on unique items or experiences while supporting your cause.
Organize crowdfunding campaigns
Crowdfunding platforms like GoFundMe or Kickstarter provide a powerful way to raise funds for specific projects or initiatives by leveraging the power of collective giving.
Partner with local businesses
Collaborate with local businesses to create co-branded products or services, with a portion of sales donated to your organization. It can be a win-win for both parties: you’re raising funds, and they’re increasing brand visibility.
Host themed events
Organize fun and engaging events that align with your organization's mission, such as walkathons, bikeathons, trivia nights, or talent shows. Encourage participants to raise pledges or make donations to support your cause.
Leverage social media challenges
Create social media challenges or contests encouraging people to donate, share your message, or volunteer their time. This can be a fun and effective way to raise awareness and generate buzz around your cause.
Strategy 8: Demonstrate financial transparency
Transparency and accountability are the pillars on which nonprofits build trust with donors. You can inspire trust and confidence by openly communicating how you use the funds and showcasing the outcomes.
Publish detailed financial reports
Make your financial information readily accessible to the public by publishing annual reports, audited financial statements, or summarized financial overviews on your website. Create a downloadable report outlining your income sources, expenses, and program allocations.
Create an impact report
Put together a report that communicates the impact of your work. Include stories, testimonials, and data showing how donations make a difference. Highlight specific projects or initiatives and quantify the outcomes achieved.
Embrace third-party evaluations
Consider engaging independent third-party organizations to asses your programs and financials. This external validation can enhance your credibility and provide objective insights into your effectiveness.
Be responsive to donor inquiries
Encourage donors to ask questions about your financials or programs and respond to their inquiries promptly and transparently. Be open and honest about any challenges or setbacks you may face.
Strategy 9: Create compelling donation campaigns
Fundraising campaigns are a powerful way to rally support for specific projects or initiatives. By creating compelling marketing campaigns that resonate with your target audience, you can inspire action and generate a surge in donations. Here are a few best practices to create an effective donation campaign.
The Missing Types (2017) campaign by the American Red Cross is a good example. The campaign removed the letters A, B, and O (representing blood types) from famous logos and signage to highlight the need for blood donation. The campaign was visually striking and sparked curiosity.
Set clear goals and objectives
Define specific, measurable, achievable, relevant, and time-bound goals for your campaign. Determine the amount of money you need to raise, the timeframe for the campaign, and the impact you aim to achieve.
Develop a compelling narrative
Tell a compelling story that connects emotionally with your audience and highlights the urgency and importance of your cause. Use powerful imagery, videos, and testimonials to bring your story to life.
Choose your channels
Select the most effective distribution channels to reach your target audience, whether it's email marketing, social media advertising, online fundraising platforms, or a combination of approaches.
Offer incentives and matching gifts
Consider offering incentives or matching gifts to encourage donations. A matching gift is when a company or high net-worth individual agrees to match donations up to a certain amount. If you can find a company to do this, you'll effectively double your income.
Track progress and communicate results
Regularly monitor the progress of your campaign and share updates with your donors. Celebrate milestones, highlight the impact of their contributions, and express your gratitude for their support.
Strategy 10: Personalize your outreach efforts
Generic outreach and donation recommendations will only get you mediocre results. Instead of spamming your entire list, tailor your outreach efforts to each donor's interests and contribution history. Here are a few ways to do it:
Segment your donor base
Divide your donors into groups based on shared characteristics, such as donation amount, frequency, campaign involvement, or interests. This allows you to tailor your messages and offers to specific segments.
Personalize email communications
Address donors by name, reference their past giving history, and highlight campaigns or projects that align with their interests. Use email marketing platforms that allow for segmentation, A/B testing, and personalization.
Customize donation appeals
When soliciting donations, tailor your appeals to different donor segments. Highlight specific projects or initiatives that resonate with their interests and emphasize the impact their contributions will make.
Acknowledge and thank donors promptly
Send personalized thank-you notes or emails immediately after receiving a donation. Express your gratitude and reiterate how their contribution will support your mission.
Cultivate relationships through stewardship
Go beyond transactional interactions by nurturing relationships with your donors. Send birthday cards, invite them to events, or offer exclusive updates to make them feel valued and appreciated.
Strategy 11: Leverage influencer partnerships
The right influencers can be valuable allies for nonprofits looking to raise awareness and increase donations. Here are some tips for influencer marketing:
Identify relevant influencers
Use an influencer database tool to find people with a good following. Do your homework and make sure their content, values, and audience align with yours. Partner with them to create sponsored content, share your stories, or promote your fundraising campaigns.
Build authentic relationships
Reach out to your chosen influencers with a personalized note. Clearly communicate your mission, the impact of their potential support, and how you envision a mutually beneficial relationship.
Explore different collaboration options
Collaborations can range from sponsored social media posts and blog articles to influencer-hosted events and fundraising campaigns. Determine the best fit based on the influencer's audience and your campaign goals.
Provide clear guidelines and expectations
Establish clear guidelines for content creation, messaging, and disclosure requirements to ensure transparency and maintain authenticity.
Track results and measure impact
Monitor the reach, engagement, and conversions generated through influencer partnerships. Use tracking links, promo codes, or dedicated landing pages to measure the effectiveness of campaigns.
Strategy 12: Demonstrate impact and build trust
Donors want to know that their contributions are making a tangible difference. Regularly demonstrating the impact of your work and building trust through transparency are crucial for cultivating lasting donor relationships.
The Bill and Melinda Gates Foundation's "Goalkeepers" report is an excellent example of building trust. They use data and statistics to tell the story of progress towards the United Nations' Sustainable Development Goals.
Share compelling success stories
Collect and share powerful stories highlighting the real-life impact of your organization's work. Use quotes, photos, and videos to bring these stories to life and create an emotional connection with your audience.
Provide regular updates and reports
Keep your donors informed about the progress of your programs and initiatives through newsletters, email updates, blog posts, and annual reports. Highlight key achievements, milestones reached, and challenges overcome.
Use data and metrics to showcase results
Quantify the impact of your work by sharing relevant data and metrics. This could include the number of people served, resources distributed, or improvements achieved in specific areas related to your mission.
Be transparent about your financials
Openly share your financial information through annual reports, audited financial statements, or summaries on your website. Clearly outline how donations are allocated and their impact on your programs.
Encourage donor visits and engagement
Invite donors to visit your programs, meet the people they are helping, and see firsthand the impact of their contributions. This type of personal experience can be incredibly powerful in deepening their connection to your cause.
Strategy 13: Harness the power of data and technology
Data and technology are powerful tools that can revolutionize how your nonprofit connects with donors. By harnessing the insights offered by data analytics and implementing innovative technological solutions, your organization can unlock new levels of efficiency and impact.
Invest in a robust CRM system
A customer relationship management (CRM) system can help you manage donor information, track donations, segment audiences, and automate communications. Choose a system that connects with your other fundraising tools and provides comprehensive reporting.
Use data to segment and target donors
Analyze your donor records to identify your most profitable segment. Consider factors like demographics, giving history, interests, and engagement levels to gain insights. It lets you personalize communications, tailor fundraising appeals, and cultivate deeper relationships.
Leverage email marketing automation
Automate your email communications to deliver timely and relevant messages to your donors. Use segmentation and personalization to ensure each email resonates with the recipient's interests and giving patterns.
Track website analytics
Use website analytics tools to understand how donors find your website, which pages they visit, and how they interact with your content. This data can help you optimize your website for donations and improve the user experience.
Monitor social media engagement
Track social media metrics, such as likes, shares, comments, and click-through rates, to understand which content resonates with your audience. Use this data to refine your social media strategy and maximize your reach.
Strategy 14: Leverage psychological principles on your website to encourage donations
Understanding the psychology behind charitable giving can help nonprofits design more effective fundraising appeals and create a website experience that encourages donations.
Low initial commitment
Start with a low-threshold option, such as a $10 monthly commitment; this can seem more manageable to potential donors, removing barriers to that first step.
Reciprocity principle
Offer something small in return for a donation, such as a thank-you gift or exclusive content. This principle operates on the social norm that people feel obligated to return favors, encouraging them to give when they receive something first.
Endowment effect
Frame the donation as a way for donors to "own" a part of the cause. For example, state that a donation can "fund a child's education for a month" or "provide meals for a family." When people feel a sense of ownership over the impact of their donation, they are more likely to give.
Donor autonomy
Promote autonomy by allowing donors to choose where their funds go, which invests them more in the cause.
Identity cues
Refer to individuals as "donors" rather than using the action verb "donate" to influence their self-perception and increase their likelihood to donate.
Personal address
Directly addressing site visitors with "you" can create a more personal connection and prompt immediate action.
Personalized gratitude
Follow up with personalized thank-you messages, especially for high-value contributors. Show the direct impact of their donations, strengthening the emotional bond and increasing the likelihood of ongoing support.
Use social proof to encourage giving
People are more likely to take action when they see that others are doing the same. Display testimonials from satisfied donors, showcase the number of people you've helped or highlight successful fundraising campaigns.
Emphasize emotional connections
People are often motivated to give by emotional appeals. Share stories that evoke empathy, compassion, or a sense of urgency. Use images and videos that create an emotional connection with your cause.
Strategy 15: Grants
Securing grants is one of the most effective ways to increase donations for your nonprofit. Grants come from various sources, including government agencies, private foundations, and corporations. Each grant typically has specific criteria and application processes, so it's crucial to do your research and find grants that align with your mission and projects.
To start, make a list of potential grant opportunities. Websites like Grants.gov, Foundation Center, and local community foundations can be excellent resources. After you've identified possible grants, carefully read through their requirements and tailor your application to show how your nonprofit's work is aligned with their objectives.
A compelling grant application should include a clear statement of need, a detailed description of your project or program, measurable objectives, and a budget outline. Including success stories or testimonials can also strengthen your application by demonstrating your nonprofit's impact.
For example, a nonprofit focused on environmental conservation might apply for a grant from a foundation dedicated to sustainability. By clearly outlining how their tree-planting initiative will improve local ecosystems and reduce carbon footprints, they can make a strong case for funding.
Strategy 16: Auctions
Hosting auctions can be an exciting way to raise funds for your nonprofit while engaging your community. Auctions come in various forms—silent auctions, live auctions, and online auctions—each offering unique opportunities to attract donors.
To organize a successful auction, start by gathering appealing items or experiences that will capture the interest of your supporters. These could include donated goods from local businesses, vacation packages, or exclusive experiences like dinner with a local celebrity.
Promote your auction through multiple channels, such as social media, email newsletters, and community bulletin boards. Make sure to highlight some of the standout items to generate buzz and excitement.
During the event, create an engaging atmosphere that encourages bidding. For a live auction, consider hiring a charismatic auctioneer who can keep the energy high and drive up bids. For silent or online auctions, ensure the platform is user-friendly and that bidders receive regular updates on the status of their bids.
For instance, a local animal shelter might host an online auction featuring items like handmade pet accessories, private dog training sessions, and weekend getaways to pet-friendly destinations. By creating a fun and competitive environment, they can raise significant funds while bringing their community together.
Strategy 17: Crowdfunding
Crowdfunding has become an increasingly popular method for nonprofits to raise funds by leveraging the power of social networks. Platforms like GoFundMe, Kickstarter, and Indiegogo allow you to create fundraising campaigns and share them with a broad audience.
To launch a successful crowdfunding campaign, start with a compelling story explaining your nonprofit's mission and why funds are needed. Use engaging visuals—photos, videos, infographics—to make your campaign more appealing.
Set a realistic fundraising goal and provide regular updates on your progress. Transparency is crucial. Inform donors how you intend to use their contributions and the impact they will have.
Promote your campaign through all available channels: social media, email newsletters, your website, and even local media outlets. Encourage supporters to share the campaign with their networks to reach a wider audience.
For example, a nonprofit focused on building schools in underprivileged areas might create a crowdfunding campaign to fund the construction of a new classroom. They could share stories of students who will benefit from the new facility, include photos of the current overcrowded classrooms, and provide updates as they reach key milestones in their fundraising efforts.
Strategy 18: Use donor management software
Donor management software can significantly streamline your fundraising efforts and enhance donor relations. Tools like Classy and Blackbaud can help nonprofits maximize their impact by delivering comprehensive solutions.
Classy offers a user-friendly platform that facilitates crowdfunding, peer-to-peer fundraising, and event management. It allows you to create customizable donation pages, set up recurring donations, and organize peer-to-peer fundraising campaigns. With Classy’s real-time reporting and analytics, you can track your campaign’s performance and make data-driven decisions to optimize your fundraising strategies.
Blackbaud is another powerful option known for its extensive suite of features tailored for nonprofits of all sizes. Blackbaud's CRM system helps you manage donor relationships by tracking interactions, preferences, and giving history. The software also supports automated workflows and email marketing tools, simplifying routine tasks like sending acknowledgment emails and receipts. Its segmentation capabilities enable you to personalize communication and fundraising appeals, improving the effectiveness of your outreach.
Both Classy and Blackbaud offer mobile-optimized donation options, so donors can donate from any device. They also integrate with social media platforms to extend your reach. With these advanced tools, your nonprofit can build stronger relationships with donors, increase engagement, and ultimately boost donations.
Conclusion
By implementing these strategies, you'll be able to create a powerful fundraising campaign that attracts new donors, deepens existing relationships, and generates sustainable revenue. Remember that the nonprofit landscape is constantly changing, so it's important to periodically revisit your strategy. Measure what’s working and adapt to new opportunities and challenges. Stay curious, stay agile, and never lose sight of your mission.
