Combating Corporate Giving Declines
In 2022, the most recent year of available data, Giving USA reported an alarming 10.4% decrease in charitable giving when adjusted for inflation. Since that time, we have witnessed positive signs of recovery, and experts are predicting an uptick in the 2023 data that should carry into 2024.
While these overall giving metrics are trending positively, when we separate out giving by corporations, the picture isn’t as rosy. National data tells us that corporate giving is holding flat. Anecdotally, here in the metro Detroit region, we know that corporate purse strings are tightening. Sponsorship requests are up while sponsorship budgets are down. Businesses are increasingly looking for more ways to ‘partner’ than simply write checks. And, corporate giving priorities are shifting.
In light of these trends, it’s important to shift organizational fundraising strategies to ensure a dip in corporate giving doesn’t throw off your 2024 budget. Here are a few tips to keep in mind as you think about the year ahead.
Prioritize Individual Giving
Since donor data has been tracked, giving from individuals has far outweighed giving from any other donor segment. Depending on the year and the data source, individual giving accounts for anywhere from 64-82% of all charitable giving. Knowing this, if you aren’t prioritizing individual giving over corporate giving, you are missing the boat!
What does this mean?
Individual donors should be prioritized. This starts with getting out of your office and getting to know your donors, and it ends with crafting tailored strategies to deepen these relationships and nurture major gifts.
Don’t lose sight of the donors who are already giving. Far too often I see organizations more focused on finding new donors than retaining the donors already supporting their mission. However, it is not only more costly to acquire new donors but, these relationships start from square one; meaning that new donors are not as connected and committed and, therefore, generally give less. It’s a better use of your time and money to monitor your retention rates and adjust your strategies to ensure current donors are staying connected.
Don’t forget about younger donors. A monumental wealth transfer from baby boomers to younger generations is underway. Be sure you capitalize on this shift by shaping your fundraising strategies to engage younger donors.
Strengthen Your Online Presence
As we all know, online giving continues to grow year over year. However, beyond merely serving as a way to give, online channels should be utilized to help nonprofits shape their story and engage donors.
What does this mean?
Donors need to feel connected to your cause and the best way to do this is through storytelling across all channels – email, social media, appeals, etc. Be sure you are utilizing multiple channels, personalizing messages as much as possible, and using different modes of communication (videos, images, words).
Don’t make the mistake of not investing in marketing. Donors can’t give to nonprofits they don’t know about, and they won’t give to nonprofits who don’t tell a compelling story. Be sure your website draws people in and offers an easy way to navigate to the donate page. Promote awareness of your mission through Facebook ads. And, don’t shy away from hiring professional PR and marketing experts!
Understand Donor Advised Funds
Donor Advised Funds (DAFs) are continuing to grow in popularity. In fact, Schwab Charitable reported that their DAFs alone granted more than $6.1 billion to charity in 2023, a year-over-year increase of 31%. While federal regulations are on the table which may slow this trend in the coming year, DAFs are here to stay.
What does this mean?
Be sure you (or someone at your nonprofit) understand how DAFs work. There are nuances to soliciting, accepting, and acknowledging these gifts so it’s important to have a solid understanding.
As mentioned above, we are amid a generational wealth transfer. If you haven’t already devoted resources to a planned giving program, now is the time. Whether it’s DAFs or other planned giving vehicles, planned giving will help ensure your nonprofit’s long-term financial stability.
Develop Partnerships
If you’re in a situation where you are still relying on corporate dollars to ensure a successful fundraising year, be sure you are focused on building/strengthening those relationships. Many companies are no longer content with their support only going as far as a transactional payment. They are looking for deeper engagements that result in nonprofit-corporate partnerships.
What does this mean?
Focus on engaging your corporate donors in your mission through employee giving campaigns, volunteer opportunities, storytelling, and event participation. Don’t just ask for financial contributions.
Get to know the business and its decision-makers. Like all types of donors, corporate donors require solid connections before being solicited. They invest when they are connected and genuinely care.
Want to learn more about navigating corporate giving? Join me and a panel of corporate giving executives on February 29 to hear directly from the source!
About Rachel M. Decker
Having spent nearly 20 years in the nonprofit sector as an effective and strategic fundraising and foundation executive, Detroit Philanthropy Founder and President, Rachel Decker is passionate about helping others, making meaningful connections, solving problems and, most importantly, creating impact in our community. With the founding of Detroit Philanthropy, she turned that passion into a commitment to champion philanthropy throughout metro Detroit as a fundraising consultant, philanthropic advisor, and public speaker. Learn more about her work at www.DetroitPhilanthropy.com