As was reported recently by CBS News for 2018, donors are giving less. As a result of the new federal tax law that came into effect earlier this year, we expect giving to decline. And sure enough, that seems to be the way it is playing out so far in the year.

As was noted in the CBS report in an interview with Steve Taylor, a senior vice president at United Way Worldwide; the U.S. operation is one of the largest charities in the nation:

“‘We know that the main reason why people give to charity is not the tax incentive…We also know that the tax incentive allows people to give a little bit more than they would have otherwise. What you have is tens of millions of people who will give a little bit less, and that adds up to tens of billions of fewer dollars given to charity.’

“Taylor’s concerns were highlighted in a recent report released by the Fundraising Effectiveness Project (FEP), which showed that total revenue to nonprofits during the first three months of the year fell 2.4 percent compared with 2017. The total number of donors plunged 6.3 percent on a year-over-year basis, while the donor retention rate, which measures the numbers of donors who contribute to the same organization from one year to the next, dropped 4.6 percent. And the numbers of new donors plummeted by 12 percent.”

How To Stay Ahead of the Game

Now that you know donors are giving less across the board, and you can perhaps see that the decreased giving is part of a sector-wide pattern, it’s essential to be aware of what’s happening and take action. It’s important not to get caught in a situation where you’re unprepared for a potential revenue decrease. I would do the following things if I were still the CEO of a nonprofit.

Mobile, Mobile, Mobile

One of the quickest and easiest things that nonprofits can do has not been done by many. What are you waiting for at this point? It is vital that if your charity does not have a mobile website, it be one of the first things you do. Mobile surpasses desktop use for search. If you’re not mobile-ready, you’re missing an opportunity to have people donate on your website if they are using their cell or tablet.

Ask Your Donors For Support

Any good fundraiser knows that a donor supports an organization because someone asked. And if you ask often, many will give––often. So, be strategic and smart about asking your donors for financial support. But whatever you do, ask them. If your fundraising dollars declined, create a special campaign. Communicate what’s in danger of being cut (i.e., programs) because of the lack of sufficient revenue.

Get Good At Telling Your Story for Your Donors

You have to tell your story well. Period. You should learn if you don’t know how to describe it adequately. One of my recent posts was about the Nonprofit Storytelling Conference. Look it up and read and learn everything you can about telling a good story. Remember, the first part of getting a donor to give is capturing their emotion. When they make the rational decision to support your cause, it’s just a justification for how their heart feels. Also, when you’re telling your story, make sure you offer social proof to prospects, which are stories of other donors who have done what you’re asking of prospects. People are more willing to give if they see others supporting your nonprofit.

Measure Performance

Get used to slicing and dicing your fundraising reports so you can manage fundraising properly and get everyone on your team used to the conversation. Meet with your fundraising team at least weekly, if not a few times weekly. And be transparent with fundraising performance. If you hold weekly meetings, ensure everyone–including junior clerks and receptionists–understands your fundraising. That will foster a culture where everyone realizes they have to contribute to helping and supporting the fundraisers.

Make it Simple for Donors

Make donating easy. You want your donation page and donation forms on every piece of collateral that you use, including social media, are simple. Suggest giving amounts because it will increase the likelihood of people making a higher donation. For instance, start your donation page with $25 instead of having no stated contribution or a lower donation amount. And make sure you redirect people to your donation––often. Don’t be afraid to experiment by asking for a specific suggested amount, like $10 a month for a year. That’s $120, which is less than the cost of a monthly pizza.

We don’t know how 2018 and giving for nonprofits in the years ahead will turn out, but there’s a definite reason, based on evidence, that donors are giving less. That means there will be an exponential increase in competition for those dollars. You’ll want to be creative and think out of the box. Make it a point to have the topic of fundraising be something that is discussed as the first order of business at most if not all meetings, which will drive home the point that this is the lifeblood of your organization for executing its mission.

 

 

Author of “Not Your Father’s Charity: Grip & Rip Leadership for Social Impact”(Free Digital Download)

 

© 2018 Wayne Elsey and Not Your Father’s Charity. All Rights Reserved.