Navigating Challenges and Opportunities: The 2024 Status of Canadian Fundraising

Blackbaud 2024 Status of Fundraising in Canada Benchmark Report

Blackbaud recently released its 2024 Status of Fundraising in Canada Benchmark Report. You can find the full report at the following link, or I wrote a summary below if you just want the highlights. https://www.blackbaud.ca/industry-insights/resources/the-status-of-canadian-fundraising-2024-benchmark-report/thank-you?

Navigating Challenges and Opportunities: The 2024 Status of Canadian Fundraising

Summary of “The Status of Canadian Fundraising 2024 Benchmark Report”

Overview

The report examines the current state of fundraising within the Canadian nonprofit sector. It provides insights into the effectiveness of various fundraising strategies, the challenges organizations face, and the impact of digital maturity and technology adoption on fundraising performance.

Data Source and period

The findings are based on a survey conducted in April 2024, which gathered responses from over 550 nonprofit professionals across Canada. The study aimed to capture insights on fundraising performance, income changes, the role of artificial intelligence, and technology attitudes within the sector.

Foreword and Introduction

• Effective fundraising is emphasized amidst economic uncertainty and social change.
• Focus on innovative strategies and technology to diversify income sources.

Key Findings

Economic Challenges

• Economic factors and public perceptions lead to fewer donations.
• More organizations report income growth than decline.

Data Management

• Improved data management was deemed valuable by 52% of participants.
• Digital maturity correlates with fundraising success.

Digital Maturity: Digital maturity measures how well an organization uses data and technology to improve its operations and achieve its goals. Higher digital maturity indicates better integration and utilization of digital tools and strategies.

AI Utilization

• 67% of organizations use AI, primarily for content creation rather than predictive analytics.
• Early adopters of AI show higher performance and digital maturity.

Artificial Intelligence (AI): AI uses computer systems to perform tasks that typically require human intelligence, such as visual perception, speech recognition, decision-making, and language translation.

Technology Integration

• Only 25% utilize CRM systems to their full potential; most organizations need help with integration.

Customer Relationship Management (CRM) Systems: CRM systems help organizations manage interactions with current and potential donors, streamline processes, and improve profitability.

Performance Section Highlights

• 60% of organizations met or surpassed fundraising targets.
• 36% experienced income growth compared to the previous year.
• Major gifts are identified as primary contributors to income growth.
• Economic conditions and donor retention are cited as frequent causes of income decline.

Major Gifts: These are significant donations made by individuals, foundations, or corporations, often forming a substantial part of an organization’s fundraising income.

Digital Maturity

• The average digital maturity score is 5.5, a decrease from previous years.
• Organizations with higher digital maturity are more likely to experience income growth.

Personas Identified

Early Adopters

• Focus on innovation, generally satisfied with technology but face tool-related challenges.

Tech Navigators

• Use AI but limited in applications; rely on major gifts.

AI Skeptics

• Hesitant to embrace AI, struggle with donor retention, and depend heavily on traditional fundraising methods.

Fundraising Challenges

• Economic conditions, difficulty in talent recruitment, and public perception challenges were noted.
• 78% express concern over the economy impacting donations; 53% cite hiring and retaining talent as a significant issue.

Fundraising Opportunities

• Organizations need to embrace multichannel communications and improved data management for fundraising success.
• Smaller nonprofits particularly benefit from collaborations to reach new audiences.

Multichannel Communications: This refers to using various communication platforms (e.g., email, social media, direct mail) to engage with donors and supporters.

AI and Technology Insights

• AI is a double-edged sword; while many see potential, concerns over ethics, misinformation, and data security persist.
• Integration between different technology systems is minimal but considered necessary for maximizing fundraising efficacy.

Recommendations

1. Enhance Digital Maturity: Invest in training for technology users and consider upgrading to more integrated systems to improve fundraising performance.
2. Diversify Income Streams: Organizations should actively pursue diverse funding sources beyond grants, particularly leveraging relationships with major donors.
3. Embrace AI Responsibly: Develop policies for AI usage that address data security and ethical considerations while exploring its potential benefits for fundraising.
4. Strengthen Talent Management: Focus on recruiting and retaining skilled fundraising professionals, ensuring their growth aligns with digital transformation.
5. Foster Public Engagement: Proactively communicate the value and impact of the nonprofit sector to improve public perception and increase donor confidence.
6. Leverage Collaborative Opportunities: Partner with other organizations to reach new audiences and enhance fundraising capacity through cooperative initiatives.

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