4 Fundraising & Giving Trends to Know in 2024

No one knows what the future holds (especially not me), however, as you look ahead to 2024, knowing some of the key trends, challenges, and opportunities will help you develop an effective fundraising strategy that is both aspirational while also being grounded in reality.

With that in mind, here are four trends to know in this coming year:

1. The Continued Surge of Monthly Giving

Monthly giving continues to emerge as one of the biggest growth opportunities for nonprofits.

While 2023 data has not come out yet, monthly giving increased by 11%, while one-time revenue declined by 12% in 2022. Monthly giving also accounted for 28% of all online revenue in the same time period.

In today’s subscription economy, monthly giving programs average around 90% donor retention year-over-year – nearly twice the average donor retention rate of 46%.?

For donors, small monthly gifts may not pinch budgets as much as larger one-off donations, but for nonprofits, these reliable revenue streams allow better financial planning and stability.

The takeaway??

If you're not already, consider starting or growing your monthly giving program this year.?

2. Dollars Up, Donors Down May Not Continue

The year-over-year phenomenon of nonprofits raising more dollars from fewer people is a longstanding trend in the nonprofit sector.

In 2022, 3% of donors provided 74% of charitable dollars. At the same time, the number of donors who gave <$500 declined by 23%.

However, according to the most recent data released by the Fundraising Effectiveness Project, that trend may be coming to an end, and NOT in a way that's good for charitable giving.

With data collected from more than 25,000 nonprofits, the number of people giving through the first three quarters of 2023 fell by 7.6%, while the total amount given also fell by 1.1% year-over-year.?

The takeaway??

In a world where fewer people are giving to charity, take a hard look at how you're stewarding relationships with individual givers. If it's not already a priority, doubling down on your relationships with givers and learning to truly listen to and learn their passions is key to long-term growth and sustainability.

3. The Fundraising Talent Shortage

The persistent nonprofit talent shortage that began pre-pandemic continues to disrupt organizations large and small.?

In the What Makes Fundraisers Tick study, completed in the summer of 2022, 46% of the 2,700 fundraising professionals surveyed reported that they were planning to leave their jobs within the next two years.

Replacing departed staff can cost between 90-200% of the position's salary in lost productivity and hiring expenses, and some fundraising positions can take between 6 and 12 months to fill.

In addition to their direct impact on a nonprofit's ability to serve givers well, these challenges tend to cascade as understaffed development teams handling too many relationships struggle to nurture the connections that often lead to increased ownership and giving.

The takeaway??

While compensation always comes to mind, consider other creative ways to prioritize staff retention, including hybrid workplace options, increased professional development, and leadership opportunities to attract and retain development talent.?

4. The Declining Effectiveness of Facebook Fundraising?

Facebook organic reach has declined dramatically in recent years – even for pages with larger audiences.

Where nonprofits could expect most followers to see posts a few years ago, Facebook's algorithms only show posts to a small percentage of followers today.

In response, nonprofits are spending more money on Facebook ads to reach their existing supporters, and even promoted posts compete for limited attention in crowded news feeds.

As these changes have led to decreases in Facebook fundraising revenue, many organizations are realizing that over-reliance on third-party platforms is unsustainable long-term.

The takeaway??

In 2024, consider using social media to grow your email audience. An opt-in to your email list often signals a deeper interest in your mission than a Facebook follow. Email engagement remains consistently higher than social media while also allowing for increased personalization. Growing your email audience insulates your organization from declines in reach and effectiveness caused by algorithms on external platforms like Facebook.

What do you think? How might your strategy or approach to fundraising need to shift this year?

Head over to LinkedIn and share your thoughts in the comments on this post.

DISCLAIMER: Trend lists are NOTORIOUSLY inaccurate at predicting the future. This one is likely no exception.