The Nuances of Fundraising Content and Strategies for Nonprofits

One of the things I was most surprised about when I took my marketing director position at LSS after working in retail marketing for 13 years was that direct mail was their most lucrative fundraising strategy. It brought in the overwhelming bulk of the multimillion-dollar budget every year. That was 2014. Over the seven-plus years I led the marketing team there, the returns on direct mail waned a bit (especially during the pandemic). However, it never became secondary to any other fundraising strategy, including digital. I'm not sure that will always be the case or that this is true for all nonprofits, but it was a good lesson for me to learn. The traditional strategies don't automatically become obsolete just because there's a new digital tool or channel. The ROI depends more on the audience, message, and goal than the channel.

The goal of fundraising makes creating content and campaigns a unique and nuanced endeavor. It balances sales and marketing, storytelling and transaction, and brand building and customer influence. It's kind of a dance. You want to lure the donor onto the dance floor with compelling stories, impactful images, and an appeal to their emotions and then tango the heck out of them with strong CTAs and impact data until they want to dance with you forever.

Digital versus Traditional Fundraising Strategies

In addition to direct mail, traditional fundraising strategies include:

1. Events and Galas: Organizing fundraising events, such as charity galas, dinners, auctions, and benefit concerts, can be an effective way to raise funds. Attendees purchase tickets, participate in auctions, and make donations during the event.
2. Face-to-Face Fundraising: Professional fundraisers or volunteers approach potential donors in person, seeking one-time or ongoing contributions. In the past, this could have meant actually going door-to-door to find donors. Today, face-to-face fundraising is mainly used to nurture large or corporate donors. The goal is to build a strong, engaged, long-term relationship with the donor to facilitate ongoing donations.
3. Telephone Fundraising: Nonprofit organizations use telemarketing to reach donors and request contributions. This approach can be more personal than direct mail and is commonly used for annual fund drives. LSS still does this from time to time as well, very successfully.
4. Corporate Partnerships: Establishing partnerships with businesses and corporations can provide financial support through sponsorships, cause marketing, and workplace giving programs.
5. Merchandise Sales: Selling merchandise, such as branded clothing, calendars, or promotional items, can generate funds for a cause. These items are often sold at events or in retail settings.
6. Sustainer Programs: Nonprofit organizations often offer special programs for donors who give monthly or yearly. The donors receive benefits like access to exclusive content, discounts, or event invitations.
7. Peer-to-Peer Fundraising: Encouraging supporters to raise funds on your behalf through their social networks and personal connections. Supporters create individual fundraising pages and ask their friends and family for donations.
8. Sponsorship Opportunities: Provide opportunities for individuals or businesses to sponsor specific programs, events, or projects in exchange for recognition or promotional benefits.
9. Community Fundraising: : Representatives from the local community fundraise on a nonprofit's behalf through activities like bake sales, car washes, or charity runs.
10. Legacy Giving: Encourage individuals to include an organization in their wills or estate plans. Legacy giving allows donors to leave a lasting impact on a cause.

These traditional fundraising strategies can be effective, but they may require significant time, effort, and resources to implement successfully. Many organizations today also complement these strategies with online and digital fundraising methods to reach a broader audience and simplify the giving process.

Here are some digital fundraising strategies:

1. Online Donation Platforms: Every nonprofit needs a user-friendly online donation platform on their website. Make sure it accepts various payment methods and allows for one-time or recurring donations.

2. Crowdfunding Campaigns: Utilize crowdfunding platforms like Kickstarter, Indiegogo, GoFundMe, or specialized nonprofit crowdfunding sites to create fundraising campaigns for specific projects or causes.

3. Email Fundraising: Send targeted and personalized email campaigns to new or current donors explaining the cause and providing easy links for online donations.

4. Social Media Campaigns: Leverage social media platforms like Facebook, Twitter, and Instagram to raise funds. Share engaging stories, images, and videos to create awareness and encourage supporters to donate directly through the platforms. Many social media platforms, including Facebook, provide tools for creating dedicated donation pages where supporters can easily contribute to an organization.

6. Text-to-Give Campaigns: Text-to-give has become a very powerful fundraising channel. Promote text-to-give campaigns, where supporters can make donations by texting a specific keyword to a designated phone number. These donations are often added to the donor's phone bill.

7. Virtual Fundraising Events: Host virtual events such as webinars, online concerts, or charity auctions, where participants can donate during the event or through associated webpages.

8. Mobile Apps: Apps can be expensive but can provide revenue if developed well. Build a dedicated mobile app that allows supporters to donate, access information, sign up for volunteer shifts, and stay engaged with a cause from their smartphones.

10. E-commerce Integration: If you sell products or merchandise, integrate an e-commerce component into your website to generate funds by selling goods. Use platforms like Shopify or WooCommerce.

16. Content Marketing: Compelling content, such as blog posts, videos, and infographics, tells an organization's story and conveys the impact of donations. This content can be shared on all digital channels.

Digital fundraising strategies offer flexibility and convenience for both donors and organizations. They can also provide valuable data and insights to optimize your campaigns.

Combining digital strategies with traditional fundraising methods can help organizations reach their fundraising goals effectively.

Advantages and Challenges of each Approach.

Traditional Fundraising Strategies

1. Personal Touch:

- Advantage: Traditional methods often involve face-to-face or more personalized interactions, allowing for a personal touch and building strong donor relationships.

- Challenge: Personal interactions may be limited by budget, geography, or time constraints.

2. Trust and Familiarity:

- Advantage: Some donors may feel more comfortable with traditional fundraising methods, as they are familiar with and have been used for decades. LSS saw this often because the donor base was aging and needed to be more technically savvy.

- Challenge: Traditional methods may not be as effective in reaching younger audiences. Many young people do not trust brands that do not have an online presence.

3. Tangible Events:

- Advantage: Traditional fundraising often includes tangible events like galas, auctions, or charity runs, which can generate excitement and a sense of community.

- Challenge: Organizing and managing these events can be resource-intensive. The pandemic has also made in-person events less effective because we now have virtual options.

4. Limited Outreach:

- Advantage: Traditional fundraising may focus more on a specific local or targeted audience, which can be advantageous for specific campaigns. Hyperlocal nonprofits can benefit from an audience based on location, and it could create an authentic connection.

- Challenge: Limited outreach can hinder the potential to tap into a broader donor base.

5. Donor Loyalty:

- Advantage: Traditional methods may cultivate strong donor loyalty through personal connections and longstanding relationships.

- Challenge: Transitioning loyal donors to digital channels may be challenging for some organizations.

Digital Fundraising Strategies

1. Reach and Accessibility:

???- Advantage: Digital fundraising can reach a global audience, breaking geographical boundaries. Donors can contribute from anywhere with an internet connection, enhancing accessibility.

???- Challenge: The increased reach also means more competition for donor attention and contributions.

2. Cost-Effectiveness:

???- Advantage: Digital fundraising often has lower overhead costs than traditional methods like direct mail or in-person events, allowing nonprofits to allocate more funds to their programs.

???- Challenge: Effective online marketing and digital infrastructure may require initial investments and ongoing maintenance costs. Digital marketing tends to be more labor intensive and needs digital experts, which can be costly for a nonprofit marketing team.

3. Data and Analytics:

???- Advantage: Digital platforms provide robust data and analytics tools, enabling nonprofits to track donor behavior, measure campaign success, and make data-driven decisions.

???- Challenge: Managing and interpreting data can be complex and may require expertise or additional resources.

4. Real-Time Engagement:

????- Advantage: Digital platforms allow for real-time engagement with supporters through social media, email, and website updates. This can create a sense of immediacy and community.

???- Challenge: Maintaining consistent and engaging online content can be time-consuming.

5. Flexibility and Experimentation:

???- Advantage: Nonprofits can easily experiment with different digital fundraising strategies, adjusting them on the fly to optimize results.

???- Challenge: The rapidly changing digital landscape requires nonprofits to stay up-to-date with new technologies and trends. This can be highly challenging for an overworked nonprofit marketing team (been there, done that!).

Many nonprofits (LSS included) use modern digital fundraising and traditional methods to diversify their fundraising strategies and reach a broader range of donors. As I said, the choice between these methods should align with the organization's goals, target audience, and available resources. Ultimately, the most effective fundraising approach will depend on the specific context and the preferences of the donor base being served.

Want to learn more? Check out my blog or contact me today!