A Call to Action
This is it. Now is the time.
Pivotal moments beckon us as we head into 2024, and it requires us to shift our thinking and doing.
The tried-and-true methods of fundraising—which have served the nonprofit sector for decades—are at a crucial turning point. The strategies that once yielded success are no longer as effective in the current environment.
You might be thinking, “Not us. We’re doing just fine.”
Take a step back and consider the broader trends that have impacted our society at large and the nonprofit industry as a whole:
20 million fewer U.S. households give to charities today (source).
This coincides with a decline in faith participation across the nation (source).
10,000 Baby Boomers turn 65 each day with retirement beckoning (source).
Trust in nonprofit organizations has hit an all-time low (source).
Donor participation has dropped for nine consecutive quarters (source).
Digital adoption accelerated rapidly during the pandemic (source).
Artificial intelligence has soared into the public sphere (source).
Our sector faces pressures that are creating heightened levels of burnout for nonprofit marketers and fundraisers (source).
That’s a lot of change. And it means we must adapt and evolve to meet this new environment.
The next generation of donors—Gen X—is stepping into their prime giving years, and Millennials are right behind them. Both groups behave and think differently from their predecessors.
Digital platforms and technologies have reshaped how these donors interact with nonprofits.
In this digital era, our old communication paradigms—characterized by faceless logos, a one-size-fits-all approach to donor engagement and a primary focus on simple offers—have lost their resonance. Moreover, this traditional approach often overlooks the well-being of fundraising employees, leading to burnout and inefficiency.
All of these factors combined are why RKD Group has been encouraging the nonprofit industry at large to #quitbadfundraising. But after you publicly quit, like we saw so many do, what comes next?
You shift.
For us, shifting includes both the inspiration (big idea) and application (everyday changes) that allow you to tackle the problems you face.
Our commitment—to our clients and the broader marketplace—is to put every ounce of energy toward improving how you plan, whom you plan for and how you can accelerate performance to reach your goals.
We’re done quitting. Now, it’s about our collective propensity to shift and accelerate.
Considering the inspiration—and application—we’ve decided to craft a compass to guide you as you seek to grow. The following four beacons will help you along your path into 2024 and beyond:
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In the pages that follow, we will dive deeper into each of these beacons, providing insights and reflections to guide your nonprofit marketing decisions as you navigate the complexities of today’s world.
The journey ahead is challenging, but with this compass, we can chart a course toward a more effective, empathetic and sustainable approach to nonprofit marketing and fundraising.
Connect the Dots
You’ve no doubt heard the expression that “data is the new oil.” But you may not realize that this saying was coined back in 2006.
Since then, the for-profit world has made leaps and bounds in how they use data. Meanwhile, far too many nonprofit organizations continue to invest in point solutions that solve a specific problem but create yet another set of disparate data and disconnected decision points.
As we enter 2024, nonprofit marketers and fundraisers find themselves at a moment.
The digital age is entering a new era of first-party data, thanks in large part to recent privacy restrictions around third-party data. The key to future growth lies not just in gathering data from the right sources but in effectively organizing it and activating it to provide a better constituent experience.
This wealth of information, if harnessed correctly, can transform fundraising and marketing efforts, leading to more personalized donor relationships, efficient resource allocation and, ultimately, greater impact to the mission.
Let’s break this all down into understanding where to get your data, how the right technology can help and what success looks like down the road.
Adapting to the changing privacy rules of data
In order to play the game, you have to know the rules. And in the data game, the rules are changing quickly.
Tech giants like Google and Apple are redefining the rules around data collection and usage, emphasizing user privacy and consent. Let’s look at some recent changes that have either gone into effect or will soon:
Apple’s iOS 14.5 update in 2021 required apps to ask users for permission to track third-party activity (source).
California’s CPRA law went into effect in 2023, expanding consumer rights around their data (source).
9 other states have enacted data privacy protection legislation (source).
Apple’s iOS 15 update in 2021 limited data collection for email marketing (source).
Google replaced Universal Analytics in 2023 with the more limited GA4 (source).
Apple’s iOS 17 strips out personal identifiers and “fingerprinting” in URLs (source).
Google has begun phasing out third-party cookies, starting in 2024 (source).
The “easy” button of tracking people’s behavior across the web is gone. These changes necessitate a shift in how nonprofits collect and use data.
It’s no longer just about having a vast repository of data but about having the right data—data that is collected ethically, with consent, and in compliance with the latest regulations.
This shift calls for a re-evaluation of data strategies, ensuring they are not only effective but also respectful of donor privacy. It also calls for the right technology to support those strategies.
The role of ‘marketecture’ in data optimization
“Marketecture”—a blend of marketing and architecture—plays a crucial role in this new data landscape. It refers to the strategic design of data systems, tech products and processes to support marketing objectives.
For nonprofits, this means building the right ecosystem that can handle diverse data sources (including first-party data) and integrate them seamlessly. This infrastructure should be agile, scalable and secure, enabling nonprofits to collect, analyze and act on data efficiently.
Effective marketecture is about creating a blueprint that aligns data collection and analysis with the organization's mission and fundraising goals. By doing so, nonprofits can ensure that their data strategy is not just robust but also relevant and focused.
Think about it. Donors interact with your organization in a wide range of ways, creating a wide range of data sources. Here are just a few examples:
Email platform
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CRM
Donation forms
Organic search
Mobile/SMS
Social media
How you connect or unify this data across these platforms is key to both understanding your constituents and communicating more effectively with them. If your marketecture platforms don’t communicate with one another, you’re stuck with data silos—and no clear understanding of your supporters.
Think of it as a kitchen where different ingredients and tools are stored in the refrigerator, the pantry, the cabinets, etc. When you need to cook a meal, you grab the pots and pans, the meat, the sides and the seasoning you need.
Your data needs to be in the same “room” where you can access it when you need it, and it needs to be organized so you can find it.
Activating data for better fundraising and marketing
The integration of various data sources and the strategic use of marketecture culminate in a more dynamic and effective approach to fundraising and marketing.
Data-driven strategies enable nonprofits to target their efforts more effectively, focusing on high-potential donors and campaigns with the best return on investment. With clear insights into what works and what doesn’t, nonprofits can also allocate their resources more wisely, investing in campaigns and channels that yield the best results.
As we begin 2024, it is evident that the nonprofits poised for future success will be those that effectively harness the power of their data. This involves not just collecting data but connecting the dots between different data sources, understanding the changing rules of data privacy and building a robust marketecture.
Ultimately, a data-driven approach leads to more successful fundraising efforts, allowing nonprofits to expand the reach and impact of their mission.
Think Dimensionally
Anyone who has gone through high school math and physics classes will understand that the more dimensions we add, the more complex the solution becomes.
For example, a basic chart starts with a specific point on an x-y axis. Several points connected together can form a line across the x-y plane. Then—if you want to get really complicated—you can add in a z axis for three-dimensional plots.
The more data points you add, the more possibilities emerge. And that’s exactly the way nonprofit marketers and fundraisers need to be thinking about how we communicate with our constituents.
Mass-market fundraising has traditionally measured donors through two lenses: demographic and transactional. As marketers, we want to know their age, gender, location, etc., and we often make decisions on segmentation around recency, frequency and monetary analysis—better known as RFM.
Understanding today’s donors demands a deeper approach, recognizing their interests, behaviors, motivations and the values they share with your cause. Each individual is a complex amalgamation of various facets, much like the many, many combinations of a Rubik’s cube.
So, let’s explore the necessity of thinking dimensionally about donors and how it can revolutionize nonprofit fundraising and marketing.
Evolving donor expectations in the age of personalization
In today's digital age, the lines between for-profit retail experiences and nonprofit interactions are increasingly blurring, especially when it comes to personalization.
This trend began years ago as retail giants like Amazon and Netflix set high benchmarks in personalization, utilizing advanced analytics to create individualized user experiences. And development in this area was greatly accelerated by the COVID-19 pandemic and the rapid rise of online shopping.
These companies analyze vast amounts of data, including past purchases, browsing history and customer preferences, to predict future needs and tailor their offerings accordingly.
Until recently, Home Depot focused on seasonal product promotion to all of its customers (grills during the summer, for example). Now, Home Depot has a data-driven strategy built around different buyer journeys.
A homeowner renovating their kitchen will receive a different promotion from the flooring contractor who works on that kitchen—all based upon their previous buying patterns and search history. (Adobe has a fantastic case study on this, if you’d like to read more.)
Donors, conditioned by their experiences with brands all around them, now carry these expectations into their philanthropic engagements. Just think—within one inch of a swipe to the right or left on your phone and you can access your bank, have take-out delivered, connect with a high school friend, shop for a new pair of sneakers and more.
Donors (also known as humans and customers and mothers and fathers and and and) have liquid expectations. What they experience from one brand flows across to what they expect from others.
They want to feel that their unique interests and values are being recognized and reflected in the communications and appeals they receive in positive and seamless experiences.
Consider the following statistics in a personalization study by McKinsey & Company:
71% of consumers expect organizations to deliver personalized interactions
76% get frustrated when this doesn’t happen
78% are more likely to refer friends and family to companies that personalize
Companies that grow faster drive 40% more of their revenue from personalization than their slower-growing counterparts
It’s clear that this shift in expectations demands that nonprofits not only collect but intelligently use data to customize their donor interactions.
Leveraging advanced analytics to better understand donors
How much do you truly know about your donors? Sure, you probably know their name, address (mail or email) and transaction history. What about their wealth capacity for giving? Or, better yet, their motivation for giving?
To meet these evolving expectations, nonprofits must employ advanced analytics. This involves collecting and analyzing a variety of data points to gain deeper insights into each donor's unique profile, or golden record. Advanced analytics help in segmenting donors not just based on traditional demographics or RFM but also based on their behavior, engagement levels and interests.
If you want to get really sophisticated, consider this: Each donor might not even be the same person, depending on the time of day. A person’s identity while working can change their mindset from who they are as a parent, spouse, friend, etc.
Analytics can reveal which causes a donor feels most passionately about, the kind of content that engages them the most and the communication channels they prefer. This level of insight is invaluable in crafting personalized messages and appeals, ensuring that each communication is relevant and resonates with the donor.
This tailored approach not only enhances the donor experience but also increases the effectiveness of fundraising campaigns. Personalized appeals are more likely to resonate with donors, leading to higher engagement and conversion rates.
As an added bonus, by understanding the unique preferences and motivations of your donors, you can even identify new opportunities for engagement and support.
Integrating dimensional thinking into nonprofit strategies
What does this look like for your organization?
For starters, thinking dimensionally is directly connected to the previous beacon of “connecting the dots.” Ensure that your data sources are unified into one system so you have access to all of these data points in one place.
Donor golden records can be used to power more personalization and automation within your fundraising program. How deep you go into segmentation depends on your data, your tools and your preferences.
Think about an animal welfare organization building an audience of $1,000+ donors who also follow them on Facebook … and live in Colorado … and love cats … you get the idea. Each data point is another square on the face of a Rubik’s cube leading to more and more combinations.
For example, a donor who has consistently contributed to environmental causes would likely respond more positively to targeted communications about a nonprofit's new sustainability project than to a generic fundraising appeal. Similarly, acknowledging a donor's past contributions in communication can make them feel valued and understood, thereby strengthening their connection to the cause.
By connecting and activating your data, you’re able to meet the expectations that have been set by commercial organizations in recent years.
The benefits to this are clear:
By thinking dimensionally, nonprofits can better tailor their communications and appeals. Personalization leads to stronger donor relationships and higher engagement levels.
Data also helps nonprofits understand donor lifecycles, enabling them to engage donors at the right time with the right message, thereby improving retention rates.
By showing donors that their preferences and interests are understood and respected, nonprofits can build a stronger foundation of trust and transparency.
The future success of nonprofit organizations increasingly hinges on their ability to adapt to the changing landscape. Understanding the complex tapestry of donors and engaging with them on a more personal level is no longer optional but necessary.
By embracing advanced analytics and thinking dimensionally about donors, nonprofits can create more meaningful interactions, foster lasting relationships and, ultimately, drive more effective fundraising and marketing strategies.
Be You
Two simple words that can mean so much.
For nonprofit organizations, “be you” means stop trying to be everything to everyone. Understand what’s at the heart of your mission and your values, then lean more into it.
That’s Step 1: Just be you.
Step 2 is then to amplify this out to the world: Be you …
in a way that is seen, heard and felt
in a way that reflects seeing and hearing those who support you
in a way that builds a connection from human to human
Social media has ushered in a new era of creators that empowers each person with the ability to share their thoughts—for better or worse. And nonprofit organizations can’t afford to simply shout out a one-sided message to the world.
You need to take full advantage of the tools of the era to harness your potential. Go beyond posting pictures from the latest volunteer event and making appeals for donations.
Let people in. Earn their trust. Build stronger relationships. Truly make it social media.
Before we unpack that any further, let’s step back to understand how and why we got to this point.
The rise of social media and influencers
The emergence of social media forever altered online communication, starting roughly two decades ago with the creation of MySpace (2003), Facebook (2004) and Twitter (2006).
Those tech platforms, plus others like Instagram, YouTube, LinkedIn and TikTok, have democratized communication for the masses. People no longer need access to a media company or sophisticated, expensive equipment to broadcast their message.
And they have spread across the globe, connecting people like never before in human history. Consider a few stats:
Nearly 3 billion users log in to Facebook each month.
YouTube boasts 2.7 billion monthly users.
TikTok sports 1.1 billion monthly users.
Social media usage dominates our everyday lives—for better or worse. The typical user averages about 2.5 hours per day scrolling, reading, watching and consuming.
From actors and politicians to athletes and musicians, “famous“ folks can now speak directly to their supporters. This has also led to the rise of a whole new class of influencers and creators whose primary outlet is social media. Consider a few:
Mark Rober spent nine years working for NASA building the Curiosity rover that’s now on Mars. In 2011, he started posting videos to YouTube that quickly went viral. Today, he has 27 million followers and a net worth of $5 million.
Addison Rae rose to popularity through dance videos on TikTok. She now has 89 million TikTok followers and 39 million Instagram followers. At age 22, she has an estimated net worth of $15 million (if not more).
Khaby Lame was laid off as a machine operator in Italy at the start of the pandemic in 2020. He started making videos that mocked overly complex “life hacks” and amassed a rapid following. Khaby now has 162 million followers on TikTok, triple the population of his native country of Senegal.
When Jimmy Donaldson dropped out of college to pursue a full-time YouTube career in 2016, his mom kicked him out. Today, Jimmy— better known by the name MrBeast—is YouTube’s top creator, with over 210 million YouTube subscribers and an estimated net worth of $100 million.
The general public has been drawn to these social media personalities for one big reason: authenticity. These creators let people in and give them an extended glimpse into their lives.
This is where nonprofits must take notice. Authenticity is a must because it builds trust—something that’s very much in need today.
The decline of trust in nonprofits
In 2023, the nonprofit industry fell behind business in the Edelman Trust Barometer rankings for the first time in the report's history.
Take a moment to let that sink in. People now trust for-profit businesses more than they trust nonprofit charities.
How can we fix this?
RKD Group commissioned research to ask donors a wide range of questions around the topic of trust in nonprofits. Our aim was to gain a deeper understanding of what drives trust.
Our findings were—like trust itself—both simple and complex. But two driving forces stood out in the research: People want transparency and competence.
In other words, donors want nonprofits to do three things:
Tell me what you plan to do.
Do what you say you're doing to do.
Show how my donation helps you do it.
This plays right back into authenticity.
Donors want to understand what’s really happening at your organization. They want to look behind the curtain and see the real wizards at work.
Putting authenticity into action
Add it all up, and what do you get?
There’s a great need to rebuild trust in the nonprofit industry.
Donors crave authenticity and transparency, and they want to be heard.
Social media and other channels provide an opportunity to showcase yourself.
While TikTok dances may not make sense, you can make a greater impact and gain more attention by amplifying your presence to your donors—and by opening up to their feedback.
You can start by grabbing your smartphone and simply showcasing the personalities within your organization. Do quick interviews, a walkthrough at your office, “day in the life” stories, etc. Keep it simple—these videos don’t need to be polished or produced.
Then, pull down that curtain and let people in. Share the videos through social media to help your supporters see the “who” behind what you do.
Likewise, pay attention to the groundswells of change that exist beyond your fundraising campaigns. Join in those cultural conversations that are relevant to your organization’s mission and values. Be willing to listen to your donors’ opinions and interests.
Give your followers a story and a consistent thread to follow. And, through the activation of your connected data, you can tell the right version of your story that most appeals to them.
Be a part of their journey, and make them a part of your organization’s journey.
And remember: Just be you. After all, no one is more qualified.
Plan with Care
So far in the 2024 Compass, we’ve zoomed in on formative ways to think about fundraising strategy. The last beacon may be the most crucial: It’s you. Yes, you. The nonprofit professional reading this.
As you consider the evolution that your organization needs to thrive in the future, you may be thinking, “There’s simply no way we can accomplish all of this.”
That’s because we all know nonprofits face resource challenges. Period. And, as was reiterated in the 2022 release of the movie "UnCharitable," the resource challenges can impact staffing and enhance pressures.
This cycle is further impacted by what’s known as “compassion fatigue”—the emotional exhaustion that comes with trying to help solve some of the world’s toughest problems.
It all adds up to a well-known issue of burnout that is often shrugged off as “just part of nonprofit work.” According to the Center for Effective Philanthropy, a staggering 68% of nonprofit leaders report concerns about employee burnout.
In our final beacon for 2024, we’ll look at how to set a path for fundraising efforts while ensuring the health and well-being of those who power these initiatives.
Shifting expectations and views in the workplace
There was a time—not too long ago, in fact—that working long hours in a stressful environment was seen a badge of honor in our society.
Employees who dedicated themselves to their companies were rewarded with promotions and pay raises. Those promotions typically led to more work, more hours and more stress, all of which has a huge long-term impact on health.
Today, there's a growing awareness and changing attitude toward holistic health and work-life balance. This shift toward wellness started several years ago due to notable rises in depression, stress, anxiety and burnout.
Consider these stats from Gallup:
76% of employees experience burnout on the job at least sometimes.
28% say they are burned out "very often" or "always" at work.
57% of U.S. and Canadian workers report feeling stress on a daily basis.
44 million American adults are experiencing significant loneliness.
29% of adults say they've been diagnosed with depression at some point in their lifetime.
Modern workers are increasingly looking for employers who recognize the importance of work-life balance, provide support for stress management and offer resources for mental health. In its “2023 Work in America Survey,” The American Psychological Association found that 92% of workers said it is very (57%) or somewhat (35%) important to work for an organization that values their emotional and psychological well-being.
This is particularly relevant in the nonprofit sector where the emotional toll of the work can be high. Workers in this sector need workplace cultures that acknowledge and address the unique stressors they face. They need environments where their well-being is a priority and where they are supported in managing the pressures of their roles.
Cultivating a positive culture toward change
Desmond Tutu is known for his instrumental role in ending decades of apartheid in South Africa. When asked about how to approach such a seemingly impossible task, he simply said, “There is only one way to eat an elephant: a bite at a time.”
Implementing major changes in an organization can be a complex and often challenging process. It requires careful planning, clear communication and a comprehensive understanding of the organization's structure, culture and goals. It also requires the buy-in of your staff and board.
Here’s a guide to navigate this process effectively:
Develop a Clear Vision
Plan and Strategize
Engage Stakeholders
Involve Leadership and Management
Be Flexible and Adaptable
Monitor and Evaluate
Sustain the Change
Reducing the number of “hats” you wear can also help as you take on the added responsibility of a major organizational change. As we all know, nonprofit professionals often juggle a variety of roles due to resource constraints. This can be a significant source of stress and burnout.
Addressing this requires both strategic organizational planning and the implementation of effective tools. Streamlining processes, outsourcing some responsibilities, using technology to automate tasks and ensuring that roles are clearly defined can help reduce the burden on individual employees.
In fact, this is an area where organizations should begin using AI and other technology tools to reduce the number of mindless, repetitive tasks employees are forced to do. In their book “The Smart Nonprofit: Staying Human-Centered in an Automated World,” authors Beth Kanter and Allison Fine lay out an excellent roadmap for this transformation.
Implementing major change is a journey that tests the resilience and adaptability of any organization. With the right approach, it will lead to significant improvements in performance, competitiveness and employee satisfaction, positioning your nonprofit organization well for future success.
A people-first organization with a strong future
When a nonprofit organization successfully integrates a focus on employee wellness into a well-thought-out strategic growth plan, the benefits are extraordinary. And these two elements combine to form a symbiotic relationship.
A people-first approach leads to happier, more engaged employees who are likely to be more productive and committed to their work. Likewise, a strong strategic plan focused on growth through change will lead to better revenue outcomes and happier employees.
Nonprofits that prioritize these two areas are also more attractive to potential employees and can better retain talented staff. In an increasingly competitive job market, this can be a significant advantage for organizations looking to attract and keep the best talent.
By cultivating a positive culture toward change, streamlining workloads and prioritizing employee development and well-being, nonprofit organizations can create a more sustainable and productive working environment. In doing so, they not only enhance the lives of their employees but also strengthen the foundation of their mission-driven work.
Think of it as strategic growth with a human focus. The result is motivated and healthy employees armed with the tools they need to deliver effective marketing and fundraising efforts.