Latest / The Nonprofit Podcast / Ep 121| Unlock Fundraising Success with Giving USA’s Top 3 Insights

Transcript

Ep 121| Unlock Fundraising Success with Giving USA’s Top 3 Insights · The Nonprofit Podcast

• 0:04
  SPEAKER_01: The Nonprofit Podcast, powered by DonorBucks.
• 0:08
  SPEAKER_01: Wouldn't you like to unlock a detailed map of charitable giving in the United States to see who gives money, how much they're giving, and where it all goes?
• 0:18
  SPEAKER_01: Well, I just did, and I can't wait to share more about what I learned with you.
• 0:22
  SPEAKER_01: Welcome to the Nonprofit Podcast.
• 0:24
  SPEAKER_01: I'm Kara, a nonprofit leader and fundraiser, and I have the honor of serving as podcast correspondent for DonorBox.
• 0:32
  SPEAKER_01: We're here each week with practical actions you can use today to increase donations and take your nonprofit to the next level tomorrow.
• 0:41
  SPEAKER_01: The new Giving USA Report is out.
• 0:44
  SPEAKER_01: And what's the big deal, you might ask?
• 0:45
  SPEAKER_01: Well, the Giving USA Annual Report is much like the ultimate guidebook on charitable giving in the United States.
• 0:52
  SPEAKER_01: Each year it breaks down how much money people donate, where it comes from, like individuals, companies, or foundations, and then it breaks down who gets it, like schools, charities, religious groups.
• 1:04
  SPEAKER_01: You know, it's kind of like peeking into the big picture of generosity in America, showing trends and changes over time and how things like money, taxes, and all that's going on in society affect all of this giving.
• 1:18
  SPEAKER_01: For anyone interested in nonprofits or making a difference, it's a gold mine of info to understand how and where donations make an impact.
• 1:27
  SPEAKER_01: Today we'll quickly talk through some of the takeaways and maybe even more importantly, figure out what we can do with that data to help move the needle in our own organizations.
• 1:39
  SPEAKER_01: Here's a quick overview of what I learned after reading through the results.
• 1:44
  SPEAKER_01: First, charitable giving is rebounding.
• 1:47
  SPEAKER_01: What a gift, right?
• 1:48
  SPEAKER_01: Charity is not dead.
• 1:50
  SPEAKER_01: And while 2021 was a record-setting year for philanthropy, 2023 showed some promising signs of continued growth.
• 1:59
  SPEAKER_01: And this is great news.
• 2:01
  SPEAKER_01: However, inflation is diminishing the impact of those donations because it's increasing operational costs for so many nonprofits.
• 2:10
  SPEAKER_01: Everything just costs more right now.
• 2:13
  SPEAKER_01: So while people are giving, the value of those donations just don't stretch as far as they used to.
• 2:19
  SPEAKER_01: So that's my first takeaway.
• 2:21
  SPEAKER_01: Next, I learned that there are some shifts in where the money is coming from.
• 2:25
  SPEAKER_01: The Giving USA data says we're seeing some significant shifts.
• 2:30
  SPEAKER_01: Individual giving is decreasing as a share of that overall pot of total giving, while foundation giving, especially through donor advice funds and family foundations, those are on the rise.
• 2:41
  SPEAKER_01: Corporate giving is also growing rapidly, although it still represents a small percentage of overall giving.
• 2:48
  SPEAKER_01: And then there's a shift in who's seeing the support.
• 2:52
  SPEAKER_01: It's a shift in the sectors that are receiving support.
• 2:55
  SPEAKER_01: So human services is gaining a little larger share of those donations.
• 3:00
  SPEAKER_01: It's already surpassing education, which has traditionally held that second spot right after religion.
• 3:05
  SPEAKER_01: Meanwhile, support for religious organizations is declining.
• 3:09
  SPEAKER_01: Knowing that data is important, but it's crucial to use that knowledge to create strategies that work in today's world of charitable giving.
• 3:18
  SPEAKER_01: It's about turning information into action so that we can effectively raise funds and make a meaningful difference in our community.
• 3:25
  SPEAKER_01: Let's talk about some strategic takeaways from these findings.
• 3:28
  SPEAKER_01: First, innovate and adapt.
• 3:30
  SPEAKER_01: That is going to be so important right now.
• 3:33
  SPEAKER_01: So let's get into some actionable steps you can take right away.
• 3:36
  SPEAKER_01: I've prioritized some practical actions based on their effectiveness and return on investment.
• 3:43
  SPEAKER_01: So here's the first way to easily adapt to what donors are looking for today.
• 3:47
  SPEAKER_01: Personalize your donor engagement.
• 3:49
  SPEAKER_01: Well, why should we personalize donor engagement?
• 3:52
  SPEAKER_01: You know, personalization is more than just a buzzword.
• 3:55
  SPEAKER_01: It's the key to building meaningful relationships with your donors.
• 3:59
  SPEAKER_01: When you personalize your engagement, you acknowledge each donor's unique interests, their values, their reasons for giving.
• 4:06
  SPEAKER_01: And this isn't just about saying thank you, although that's super important.
• 4:09
  SPEAKER_01: It's about making donors feel seen, feel appreciated, and feel like they're an integral part of your organization's success.
• 4:17
  SPEAKER_01: So, how do you personalize donor engagement?
• 4:20
  SPEAKER_01: Well, first it starts with knowing your donors beyond their contributions.
• 4:24
  SPEAKER_01: So use your CRM system to track your interactions with them, to track their preferences and take a really good look at their past support.
• 4:33
  SPEAKER_01: Did they attend an event?
• 4:34
  SPEAKER_01: Did they volunteer their time?
• 4:36
  SPEAKER_01: You know, understanding these details really allows you to tailor your communications accordingly.
• 4:42
  SPEAKER_01: And second, communicate impact.
• 4:44
  SPEAKER_01: Share stories of how their donations are making a tangible difference.
• 4:48
  SPEAKER_01: Whether it's through success stories or updates on projects or heartfelt testimonials from beneficiaries, showing donors the real-world impact of their support reinforces their connection to your cause.
• 5:02
  SPEAKER_01: Lastly, listen and respond.
• 5:05
  SPEAKER_01: Engage donors in conversations, ask for their feedback, invite them to participate in surveys or focus groups, and then listen to their suggestions.
• 5:15
  SPEAKER_01: By involving them in your organization's journey, you empower donors to feel like partners in your big mission.
• 5:22
  SPEAKER_01: The data is telling me that donors are craving community, and the nonprofit sector is really, really great at creating community.
• 5:30
  SPEAKER_01: When you personalize donor engagement, you create stronger relationships, and that means more donor loyalty and continued support.
• 5:39
  SPEAKER_01: Remember, every interaction, whether it's a heartfelt thank you note or a personalized update or a thoughtful conversation, has the power to deepen connections and drive meaningful impact.
• 5:50
  SPEAKER_01: Here's the next big takeaway.
• 5:52
  SPEAKER_01: Innovating and adapting in today's nonprofit world means leveraging donor-advised funds.
• 5:57
  SPEAKER_01: It's something I'm personally doing to really amplify my efforts between now and year end.
• 6:03
  SPEAKER_01: And this is becoming increasingly important for fundraisers, engaging donors who give through donor-advised funds or DAFs.
• 6:10
  SPEAKER_01: Now you might be wondering what exactly are DAFs and why should nonprofits pay special attention to them?
• 6:16
  SPEAKER_01: Well, DAFs are like personal charitable savings accounts.
• 6:19
  SPEAKER_01: Donors contribute money to these funds, they receive an immediate tax benefit from the fund itself, and then they recommend grants to their favorite nonprofits over time.
• 6:29
  SPEAKER_01: It's a popular and very strategic way for donors to manage their charitable giving.
• 6:34
  SPEAKER_01: And you can certainly tailor your communication, your stewardship efforts, specifically to donor advice fund donors.
• 6:42
  SPEAKER_01: And here's how I do it.
• 6:44
  SPEAKER_01: First, focus on building relationships and showing gratitude.
• 6:47
  SPEAKER_01: So promptly acknowledge and thank the donor who sent you a grant from their donor advice fund.
• 6:52
  SPEAKER_01: It shows appreciation for their generosity and it reinforces their connection to your cause.
• 6:58
  SPEAKER_01: Now, these supporters are getting the tax receipt from the fund itself.
• 7:02
  SPEAKER_01: So you can simply say thank you.
• 7:03
  SPEAKER_01: And that's a gift, right?
• 7:05
  SPEAKER_01: Now, then try to understand more about your supporters' preferences.
• 7:09
  SPEAKER_01: And here's where it gets interesting.
• 7:10
  SPEAKER_01: Using donor engagement surveys can really uncover valuable insights into donors' interests and motivations.
• 7:17
  SPEAKER_01: Do you have a specific program that's appealing?
• 7:20
  SPEAKER_01: Do they see you as a good investment?
• 7:23
  SPEAKER_01: By understanding what drives them to give, nonprofits can tailor their communication and fundraising appeals to align more closely with their passions, potentially increasing donor support over time.
• 7:34
  SPEAKER_01: And then nurture, nurture, nurture.
• 7:37
  SPEAKER_01: Treat your donor-advised fund supporters as valued partners, like you would treat a mid-level or major donor.
• 7:44
  SPEAKER_01: Add them to your donor caseload.
• 7:46
  SPEAKER_01: Get to know them personally.
• 7:48
  SPEAKER_01: Reach out for a get to know you meeting.
• 7:50
  SPEAKER_01: Providing these donors with some personalized attention and recognizing their long-term value can foster deep, meaningful relationships.
• 7:58
  SPEAKER_01: And this could lead to sustained support for your organization's mission.
• 8:03
  SPEAKER_01: Your organization could be their preferred partner in philanthropy.
• 8:07
  SPEAKER_01: And here's my last big takeaway from that giving USA data.
• 8:11
  SPEAKER_01: Here's what I'm going to do.
• 8:12
  SPEAKER_01: I'm going to do a better job highlighting impact stories.
• 8:16
  SPEAKER_01: We hear about impact stories all the time, but why is it a big deal?
• 8:20
  SPEAKER_01: Well, impact stories are more than just narratives.
• 8:23
  SPEAKER_01: They're windows into the real world change your nonprofit is making.
• 8:27
  SPEAKER_01: When you share these stories, you're not just reporting results, you're illustrating the tangible difference donors' contributions are making in people's lives.
• 8:35
  SPEAKER_01: And this emotional connection helps donors see the direct impact of their support and it reinforces their belief in your organization's mission.
• 8:45
  SPEAKER_01: What are some good ways to share these stories of impact?
• 8:48
  SPEAKER_01: Well, first, highlight some specific examples.
• 8:51
  SPEAKER_01: Whether it's a success story of a beneficiary whose life was being transformed.
• 8:55
  SPEAKER_01: Maybe it's a story of a community project that flourished or a program that reached some new heights.
• 9:01
  SPEAKER_01: Bring these stories to life.
• 9:02
  SPEAKER_01: Use compelling visuals like photos or videos to make the impact tangible and memorable.
• 9:08
  SPEAKER_01: Second, personalize the experience.
• 9:11
  SPEAKER_01: Tailor your impact stories to resonate with your donors' interest and values.
• 9:15
  SPEAKER_01: Show how their contributions are aligned with the causes they care about.
• 9:20
  SPEAKER_01: Lastly, be transparent and authentic.
• 9:23
  SPEAKER_01: Share both successes and challenges.
• 9:26
  SPEAKER_01: Donors appreciate honesty and want to know how their support is making a difference, even in difficult circumstances.
• 9:32
  SPEAKER_01: Remember, each story you share has the power to create empathy, to drive action, and ultimately change lives.
• 9:40
  SPEAKER_01: It's really time to share stories that inspire and showcase the change you're making in your community.
• 9:47
  SPEAKER_01: You can certainly innovate and adapt in today's world by prioritizing these three actions.
• 9:53
  SPEAKER_01: First, personalize your engagement with your supporters, then focus on your donor-advised fund supporters, and then share those oh so impactful impact stories.
• 10:03
  SPEAKER_01: When you do, you open the door to reimagine donor experiences and invest in relationship building.
• 10:10
  SPEAKER_01: And that, my friends, drives transformative impact.
• 10:14
  SPEAKER_01: Use these to boost giving and enhance your donor relationships.
• 10:18
  SPEAKER_01: All these things will make you stronger this time next year for sure.
• 10:21
  SPEAKER_01: And I'll be working hard on these right along with you.
• 10:26
  SPEAKER_01: Well, that's all for today's episode of the Nonprofit Podcast.
• 10:30
  SPEAKER_01: I've linked a copy of a really terrific donor stewardship checklist for you in today's show notes.
• 10:36
  SPEAKER_01: Be sure to download your copy to steal some sample thank you notes and ideas to make your donors feel extra special.
• 10:43
  SPEAKER_01: Thank you for joining us on the Nonprofit Podcast.
• 10:46
  SPEAKER_01: I hope you've left with the confidence to take a small step today that will make a big difference tomorrow.
• 10:51
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• 11:01
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• 11:04
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• 11:07
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• 11:10
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