By Bonnie Devlin, Managing Principal, Washburn & McGoldrick

By Carla Willis, Managing Principal, Washburn & McGoldrick

Over the years, women's philanthropy has grown to be a powerful force in many higher education institutions and independent schools. With more women taking leadership roles in corporate boardrooms, entrepreneurial endeavors and in philanthropic initiatives, their contributions are reshaping how institutions engage with their female donors. Bonnie Devlin and Carla Willis, Managing Principals at Washburn & McGoldrick, share their keen insights into this trend and its implications for colleges, universities, and independent schools.

The Rise of Women’s Philanthropy

Women’s philanthropy is on the rise, and it's changing the traditional narrative of giving. Think Mackenzie Scott and Melinda Gates -- and a host of other generous women philanthropists. Studies show that women are more likely than men to engage in philanthropic activities, especially in education and community development. According to a recent study by Fidelity, women are in charge of philanthropic decisions in more than 70% of all US households. This shift isn't just about the amount of money donated; it’s also about the strategic approach women take in their philanthropic efforts.

Bonnie Devlin emphasizes that women often prioritize causes that resonate with their personal experiences and values. “Women tend to give in ways that reflect their lived experiences, often focusing on education, health, and social justice,” she notes. This nuanced understanding of giving is driving a more holistic approach to philanthropy in educational institutions.

Collaborative Giving and Community Impact

One of the most significant trends in women’s philanthropy is the emphasis on collaboration. Carla Willis highlights that women are increasingly forming networks to pool resources and amplify their impact. “When women come together to support a cause, they not only increase their financial contributions but also create a community of support that enhances the effectiveness of their giving,” she explains.

This sense of community is particularly important in educational settings. Women-led initiatives often focus on scholarship funds, mentorship programs, and leadership development for young women in schools and universities. By fostering these programs, women philanthropists are not just providing financial support; they are creating pathways for future generations to succeed. She noted a scholarship fund founded by her sorority and the satisfaction she gets from supporting that effort.

Engaging Women in Philanthropic Leadership

Colleges, universities, and independent schools have recognized the importance of seeking out women for philanthropic leadership roles. Bonnie and Carla advise institutions to actively include women’s voices on boards and committees and to develop fundraising strategies tailored to women. “Creating advisory boards or committees that include women leaders can bring different, distinct perspectives to fundraising efforts,” Bonnie points out.

Moreover, institutions that prioritize women’s philanthropy often see increased engagement from female alumni and donors. By highlighting the impact of women-led initiatives and showcasing female role models, schools can inspire the next generation of female philanthropists.

The Future of Women’s Philanthropy in Education

As we look to the future, the role of women in philanthropy within educational institutions will continue to grow. Carla emphasized, “Institutions need to be proactive in understanding the unique motivations and preferences of women donors. This means creating tailored engagement strategies that resonate with them”.

Moreover, as women continue to break barriers in leadership positions across various sectors, their philanthropic influence will likely expand. By championing causes they are passionate about, women are not only transforming their communities but also redefining what it means to be a philanthropist.

Importance of Thoughtful Stewardship

Women donors care greatly about making a difference through their philanthropy. Bonnie and Carla recommend crafting thoughtful ways of demonstrating the positive impact of women’s gifts. Bonnie notes, “Look for opportunities for them to meet scholarship recipients, to mentor students or to spend time with inspiring faculty, and share clear proof of the progress made by their support.” 

Conclusion

Women’s philanthropy is and will continue to be a dynamic and influential force. With the insights of Bonnie Devlin and Carla Willis, it is clear that as women take on more prominent roles in giving and leadership, they are paving the way for a more inclusive and impactful philanthropic landscape. By fostering collaboration, engaging women in leadership, and understanding their unique giving motivations, colleges, universities, and independent schools can harness the power of women’s philanthropy to create lasting change.

In the words of Bonnie and Carla, “The future of education and philanthropy is female, and it’s time for institutions to embrace this transformative reality”.

Call to Action

If you’re interested in supporting women’s philanthropy in education, consider joining or forming a network of women philanthropists in your community. Whether you’re an alumna, a parent, or simply passionate about education, your involvement can make a significant difference.

By Nils Smith, Chief Strategist, Social Media + Innovation at Dunham+Company

Artificial intelligence is revolutionizing the nonprofit sector, offering powerful tools that enhance efficiency, engagement, and impact. From automating administrative tasks to improving donor outreach, AI enables organizations to focus on what truly matters—their mission.

AI is not here to replace human-driven efforts but to support and enhance them. By automating routine tasks, analyzing data for better decision-making, and improving communication strategies, AI helps nonprofits work smarter, not harder.

As AI becomes more integrated into daily operations, it’s essential to establish clear policies to guide ethical use. A well-defined AI policy ensures that technology aligns with an organization’s values, maintains data privacy, and is used responsibly.

AI-powered tools are making a tangible difference in how nonprofits operate. Here are some of the most impactful tools available:

1. ChatGPT - This is your utility AI tool. For most nonprofits, the free version should add plenty of value to your organization when it comes to research, brainstorming, campaign development, etc. Allow ChatGPT to be your digital administrative assistant.
2. Claude - This is your best friend when it comes to copywriting. While Claude doesn't currently offer a Nonprofit discount on its service, the lowest tiered pricing plan should serve you well. By creating custom projects and writing styles, Claude can optimize your website copy, email newsletters, and so much more.
3. Canva - This is your in-house graphic designer. Using Canva Magic Studio you can utilize this AI functionality to make every PowerPoint slide, YouTube thumbnail, email template and more look like you have a team of designers supporting your nonprofit organization.
4. ChatBot.com - This is your digital customer support engine. This tool offers a free platform for nonprofits that can learn more about your organization and provide real-time support to every website visitor around both what you do and how they can support your cause.
5. Notion - This is your go-to collaboration platform for your team. Notion makes document development faster and more efficient with both their easy collaboration features and AI integrations.

As AI continues to evolve, organizations that adopt these tools responsibly will gain a competitive edge, increasing efficiency and maximizing impact. By integrating AI into everyday operations, nonprofits can better serve their communities, reach new audiences, and drive meaningful change.

Is your nonprofit ready to harness the power of AI? Now is the time to explore how technology can amplify your mission and make a lasting impact.

By Timothy R. Burcham, CFRE,
President & CEO, Burcham Solutions Group

Campaigns are fundamentally about change.

Organizations most often mount major gift or capital campaigns to reach strategic objectives that expand their mission, add new and improved programs or services, or uniquely address significant needs of those they serve. By their very nature, campaigns are designed to take an organization from where it is today to where it wants to be in the future, and with that transition comes some degree of change. Sometimes the changes are incremental, and sometimes they are transformative in ways that can be disruptive to everyone involved.

But how often do those charged with designing and implementing a major campaign consider the necessary organizational and individual changes that are inherent in the campaign’s processes and outcomes?

A major gifts campaign is an organization-wide commitment.

Mounting a campaign is a significant investment that requires coordinating and managing several interdependent elements, divisions, and resources across an organization, all with their respective limitations on time, people, and money.

It is essential to understand the nature, scope, and impact of changes on the organization and the individuals within it, not only within the fundraising operation itself, but also the other key parts of the organization that support the campaign effort, such as marketing, IT, finance, etc. Doing so enhances the potential for successfully achieving the campaign objectives on time and on budget. And who doesn’t want that?

Managing a campaign is about managing change.

The level of organizational complexity and the scope of the campaign significantly influences how much change management needs to be incorporated into campaign plans.

At a minimum, I recommend that campaign plans address the impact on individuals, at all levels and in every role, who are tasked with making the campaign a success. Are they ready and equipped to make the changes that are necessary?

The worldwide authority on change management, Prosci©, has conducted decades of research on how to manage change at the organizational and individual levels. They have determined that there are five foundational tenets of change management:

• We change for a reason.
• Organizational change requires individual change.
• Organizational outcomes are the collective result of individual change.
• Change management is an enabling framework for managing the people side of change.
• Applying change management helps realize the benefits and desired outcomes of change.

Managing individual change can increase a campaign’s success.

Organizations don’t change; people change. Encountering resistance to change is natural and inevitable. People resist change for a variety or reasons that are unique to each individual – it could be that they don’t understand the reasons for the change due to poor communication, or it impacts their workload or responsibilities. Sometimes it’s fear of the unknown and uncertainty about the future. Quite often it’s because they were excluded from the decision-making processes which created feelings of mistrust and alienation, or it’s something more personal such as age, health, and circumstances that may not align with the change. Understanding these reasons can help organizations better address resistance and support employees through the change process.

Take, for example, the potential change that can occur in the early stages of campaign planning when an organization’s leadership decides to transition from an internal, legacy donor management system to a new, state-of-the art software solution. This decision was made to enable the organization to implement its first-ever capital campaign more effectively and efficiently.  

Several departments beyond the development office – most notably the IT department and marketing departments – are directly impacted by the decision and are critical to the success of the implementation.  

However, not everyone involved in the implementation is enthusiastic about moving in this direction. Some of the development officers and support staff would prefer to hold onto their legacy system because they understand it and don’t want to be forced to learn something new. Others outside of the development office don’t see the need for it and think it’s a waste of time and money. This level of resistance to change can significantly slow down the campaign process and possibly threaten its success.

This situation could significantly benefit from infusing Prosci’s ADKAR© model for managing the “people side of change” into the campaign plan. 

Awareness considers the compelling rationale for individual change. You need to be able to answer these questions:

• What is the nature of the change and how does it align with the vision for the organization? 
• Why is the change being made and what are the risks of not changing?
• How will the change impact the organization and/or the community? 
• What’s in it for me?

Desire relates to the personal choice to change. The key questions include:

• How will the change impact the individual? 
• What is their perception of the organization? 
• What is their personal situation? 
• What are their expectations and what motivates them?

Knowledge is about understanding the requirements for individual change. Ask these questions:

• What is their current knowledge base? 
• What is their capacity or capability to gain additional knowledge? 
• What resources for education and training are available? 
• Do they have access to the required knowledge?

Ability is about the potential required for individual change. Key questions include:

• Are there psychological blocks that are barriers to change?
• Are there physical limitations that create barriers to change? 
• Do they have the intellectual capacity to make the change? 
• Do they have the necessary time to implement the change? 
• Are the resources available to enable the change to take place?

Reinforcement is about sustaining the individual change. Ask these questions:

• Is the reinforcement meaningful to the person making the change? 
• Is the reinforcement associated with actual progress and/or accomplishment? 
• Is there an absence of negative consequences for making the change? 
• Are there accountability systems to sustain the change

Campaign consultants and managers would be well-served to use the ADKAR© model and address key questions early in the planning process, especially if significant organizational change is involved. Doing so increases the likelihood that the campaign will be implemented more smoothly, with less resistance, and more successfully. And moreover, managing the people side of change effectively increases readiness, flexibility, and adaptability; enhances engagement, morale, and preparedness; boosts performance and the likelihood of achieving long-term benefits; and reduces disruption, performance declines, and the learning curve during the transition.

Obviously, this is just the tip of the iceberg. There are many tools and templates that can guide your use of change management concepts and methodologies, and that are easy to incorporate into your campaign planning and management. If you are interested in learning more, visit this site - Prosci | The Global Leader in Change Management Solutions

J. Michael Durnil, PhD
Director, Executive Search
Cooper Coleman LLC

The political and economic landscape continues to shift dramatically, leaving many social sector organizations and advancement professionals scrambling to adjust to a host of executive orders, policy changes, public opinions, and donor anxieties. Whether you face economic uncertainties, new tax policies, or evolving regulations on nonprofit organizations, this new era brings challenges, some known and many unknown. I also believe there are opportunities.

Below are suggested key steps that you and your organization can consider to stay ahead of the curve and ensure your fundraising efforts continue to thrive in this turbulent time. From rethinking donor engagement to reevaluating your compliance strategies, here are concrete, actionable steps you can take as the political winds shift.

1. Stay Informed and Adapt Quickly

In an environment of constant change, the first step to staying ahead is to keep yourself and your team informed. The new term of the 47th president continues to produce a flurry of executive orders, with many having significant implications for tax laws, charitable giving, and government-funded programs. These rapid-fire orders can change how your donors think about giving and the types of incentives they expect. 

Actionable Tip:

• Subscribe to Legislative Updates: Ensure you or your team subscribe to dependable subject- or mission-specific newsletters, blogs, or policy trackers to help you monitor these changes in real-time. Many organizations like the National Council of Nonprofits, Movement Advancement Project, and Independent Sector offer resources that highlight key policy shifts. These resources should include local, state, regional, or national coordinating organizations aligning with your mission or program areas. 
• Collaborate with Your Legal Team: If your organization has a legal team, develop a close relationship with your legal or compliance teams to interpret how these changes may impact your organization’s operations or fundraising strategies. If you do not have access to in-house counsel and using outside counsel is cost-prohibitive, consider leveraging board members or key stakeholders closely connected to your organization and qualified to provide pro bono or low-bono guidance. 

2. Reevaluate Your Donor Engagement Strategy

Political instability or policy changes lead to shifts in donor priorities. Donors might reassess how they allocate their giving in response to political climates or changes in tax laws. As a fundraiser, it is vital to maintain strong relationships with your donor base, provide them with information on how these changes affect the organization’s mission and their charitable contributions, and offer clear calls to action.

Actionable Tip:

• Engage Donors in Dialogue: Reach out to your major donors and ask about their current concerns and priorities. A brief survey or a personalized call can help you understand how the political changes are influencing their philanthropic decisions.
• Leverage Technology for Donor Communications: Use CRM software and email automation to send targeted updates about tax deductions, new laws, or regulatory changes. Being transparent about how these policies affect giving and showing how your organization can provide impact will keep your donors engaged.

3. Adapt to New Tax Incentives and Regulations

With each executive or legislative term, there are likely to be shifts in tax law that impact giving. Whether it is changes to deductions for charitable gifts or the introduction of new tax incentives, the key to maintaining a healthy giving pipeline is staying ahead of these changes and communicating with your donors. 

Actionable Tip:

• Educate Your Donors on Tax Benefits: If new tax incentives for charitable giving are introduced, ensure your donors know these changes and understand how they can benefit or be impacted. Consider working with a tax advisor or financial consultant who can offer workshops for high-net-worth individuals on maximizing their giving under the new law to calm the concerns of your most loyal donors. 
• Consider and/or Revise Your Planned Giving Strategy: In response to policy changes, consider reassessing your planned giving campaigns. Planned giving can be especially sensitive to tax law changes, so be sure your donors are aware of new options that might suit their goals. If your organization does not currently use a planned giving strategy, consider offering this longer-term donation option for donors that may rise above the turbulent times presently affecting the sector. 

4. Diversify Revenue Streams and Rely on Multiple Channels

Given the uncertainty around government funding, possible cuts to nonprofit programs, and tax implications for annual giving, it is crucial, perhaps now more than ever, to avoid relying solely on one source of revenue. A shift in government policy could dramatically impact or have unintended collateral consequences on donor giving, grants, government funding, or tax incentives on which many organizations rely.

Actionable Tip:

• Expand Your Donor Base: Take the time to expand your donor base and diversify your sources of revenue. Consider how different donors give to your organization and look for new opportunities that align with the intent of groups of donors you might not yet be reaching. Cultivate new donor groups, such as young professionals or foundations that may have different funding priorities, given the current circumstances under the new administration. Digital giving and crowdfunding can also open new avenues of support.
• Consider Corporate Partnerships: Corporations may play a more significant role in funding nonprofit initiatives, especially if they have and continue to pursue a corporate social responsibility strategy for marketing or support, as tax incentives or government funding programs become less dependable. Seek to develop mutually beneficial partnerships with aligned and allied businesses, which can offer financial support and greater exposure for you and the corporate organization. The Association of Corporate Citizenship Professionals (ACCP), which focuses on advancing the practice of corporate social impact by connecting and supporting CSR and ESG professionals, might be a good place for you to explore.

5. Reevaluate Your Organization’s Advocacy and Public Policy Stance

In a political climate that is constantly shifting, nonprofits must be vigilant about how they align with government policies and positions. Advocacy efforts will play a critical role in this environment, whether to influence policy or protect nonprofit interests. Understand the limits of your organization based on your IRS designation and carefully operate within those guidelines. The current government leadership will likely introduce policies that impact issues nonprofits care about, such as social justice, well-being, healthcare, social sector support, and environmental concerns.

Actionable Tip:

• Identify and connect with trusted advocacy resources: The Charitable Giving Coalition encourages giving and advocates for the charitable tax deduction. The Council of Nonprofits is leading at the forefront of recent social sector developments. Coalition-building organizations by geographic area or mission focus can be sources of actionable ideas, resources, and activities for you, your board, and key stakeholders. 
• Collaborate with Other Nonprofits: Strengthen alliances with other nonprofits in your sector by mission and location. Coalitions can amplify the impact of missions and the effectiveness of advocacy efforts, especially when responding to sudden policy changes that may affect a group of organizations.
• Engage in Policy Advocacy: Within the allowable IRS regulations of your organization, now may be the time to advocate for policies that will help your organization and your cause. Ensure that you follow new legislation closely and that your organization is equipped to respond effectively. Remember that you are also a citizen and have the right to advocate within that role. 

6. Prepare for Increased Scrutiny and Regulatory Changes

New policy decisions often invite increased scrutiny of nonprofit organizations, especially those serving targeted populations or having large endowments. Whether it is manifested as changes to nonprofit tax exemptions or heightened accountability standards, organizations must prepare for greater regulatory requirements.

Actionable Tip:

• Invest in Education and Training: Equip you and your team with the tools they need to remain compliant with new regulations. Consider working with other organizations, hosting a compliance training workshop, or bringing in an expert to cover the essentials. Take advantage of opportunities offered by local, state, regional, or national coordinating organizations that align with your mission. 
• Conduct a Compliance Audit: Take time to conduct an internal audit of your organization’s compliance with current regulations. Review your donor tracking processes, financial reporting systems, and tax documentation to ensure everything is in order. Your federal or state representative’s legislative aides with responsibility for your sector are a good source of providing current information. 

7. Harness the Power of Data and Analytics for Strategic Decision-Making

In times of change, tracking real-time shifts in donor behavior and giving patterns is essential. Nonprofits with access to rich data and insights are poised to respond more quickly to these changes and refine their strategies.

Actionable Tip:

• Monitor External Trends: Look beyond your donor base and monitor the larger economic and social shifts. Pay attention to national and local economic reports, as they can give insight into potential changes in charitable giving patterns. The Giving USA Project, a public service initiative of The Giving Institute, tracks philanthropic giving trends in the United States. The National Philanthropic Trust (NPT) and AFP’s  Fundraising Effectiveness Project (FEP) are additional resources tracking trends in giving.
• Invest in Data Analytics: If you have not already, now is the time to integrate advanced analytics into your fundraising strategies. Consider this action as an investment in infrastructure and organizational longevity. Tools that track donor behavior, engagement, and giving trends will help you stay ahead of any changes in donor preferences due to political or economic shifts.

Do not be overwhelmed

It should go without saying, however, that you must prioritize you. You are a valuable resource for your organization; to be the most effective in your role, you must take care of yourself. You cannot be of service to your mission, organization, or donors by jeopardizing your own resiliency. 

By staying informed, diversifying revenue streams, maintaining strong donor relationships, and embracing technology, fundraisers and advancement professionals can position themselves to survive and thrive in this period of uncertainty. While the beginning of any new legislative term introduces new challenges, the resiliency of the social sector inevitably shifts the paradigm from roadblocks to opportunities for innovation and adaptation.

Remember, the key to navigating any tumultuous political or economic shift is flexibility and transparency. By proactively adjusting your organization’s strategies and focusing on your mission and the needs of your donors and supporters, your organization can survive and find new ways to grow and succeed in an evolving landscape. By being transparent with your communication, you can create valuable dialogues with your Board, donors, and other stakeholders so that they understand the impact and consequences of the actions affecting your organization and be more engaged in the problem-solving process.

Visit www.coopercoleman.com and subscribe for updates on the nonprofit landscape, new job opportunities, and executive search and hiring trends across the social sector.

By Richard Tollefson, Founder & President, The Phoenix Philanthropy Group

According to GivingUSA, the definitive report on charitable giving in the U.S., philanthropy has been amazingly resilient over the past 60 years. With only four years of decline over that period, philanthropy continues to grow, achieving new levels of investment each year. Many in our sector, however, believe that we are experiencing — or approaching — a major crisis in generosity. An increasing trend is for fewer donors who make larger gifts, complicated by more complexity in how donors give; greater scrutiny of the nonprofit organizations invested in; and increased diversity in the demographics, giving patterns and institutional or issue loyalty of those who give.

Philanthropy has never been rooted in the true concept of democracy, an ideal where each person’s viewpoint is equally valued, everyone has an equal opportunity to impact our economy and society, and each dollar has the same value as any other. Philanthropy is a meritocracy, in which those who have more give more (in absolute dollars, but not as a percentage of their disposable income) and, in return, receive greater recognition and influence. While those at the top of the giving pyramid give and get more, it is important to pay attention to those at the bottom and middle of the pyramid because their consistent albeit lower level of support can often be used to cover operating expenses; and they are the major donors of the future as their wealth and influence and/or passion and commitment grow.

In 2025, added to these trends of the past decades will be the questions, changes and complexity that come with a new Presidential administration. Tax breaks may be made permanent, personal wealth may rise (or appear to rise, at least temporarily), and the rich will likely become richer. That could positively impact philanthropy. On the other hand, a strained middle class, combined with reduced government support for basic human needs, education, healthcare and more, means that there will be more people in need who must rely on the largesse of philanthropic people and institutions to close the gap. As experienced in 2016, the wave of giving to support the environment, social justice and healthcare organizations increased and accelerated, and was sustained over multiple years, because people feared that government would no longer act on their behalf, and that their personal philanthropy was critical to making a statement; expressing fear and anger, optimism or hope; and optimizing quality of life. Other donors also gave more, but in a more temporary fashion, to more conservative institutions aligned with their personal and political viewpoints.

I do not take a pessimistic view of philanthropy. I do not believe we are in a crisis. We are in times of fundamental challenge and change, and nonprofit leaders working with philanthropists must be ready to leverage and optimize that change.

I hope that we are not undergoing an existential threat to the American Way. If that happens, and if concepts of democracy, the rule of law, and a just and equal society as we have known them in the U.S. for hundreds of years goes away, all bets are off. But If that does not happen, and the political, economic and social pendulum swings — as it always has in the past — from left to right to left and on and on, nonprofit leaders working with individual and institutional philanthropists can and should be assured that people still want to build stronger communities, have clean water and air, educate their kids, support their neighbors, and create a quality of life that improves with each generation. While it is challenging to see in the day-to-day, I still believe in the fundamental good and generosity of the majority of people. I still believe people will devote their time, talent and treasure to make the world a better place. Philanthropy is the fuel that feeds that engine of positive, social change.

By Kurt Worrell, SVP Donor Engagement and Non-Profit Strategies , Publishing Concepts

The concept of the giving pyramid no longer exists. Why do I believe this? For one, the face of donor acquisition has changed completely. With the rising cost of postage, minuscule response rates, and a 13.8% retention rate (FEP 2024), what used to be a 24-month payback is now more than three years for many organizations. Donors at the low-dollar level (less than $100) account for the most significant declining donor group. Secondly, the harsh reality is that donors who joined at less than $50 have approximately  a 1% chance of making a gift of $1,000 or more over the next 10 years. The majority of donors just don’t move in a linear fashion anymore.

I share these thoughts not to discourage you but to emphasize the need to change our  approach to retaining and growing our donor base. The importance of your mid-level donor segment has never been greater. For many organizations, mid-level donors represent 35%+ of annual giving revenue and typically about 5% of the annual giving population.

Each organization defines mid-level donors differently. I consider mid-level donors to be those giving $1,000+ who are not in an active major gift portfolio. An effective mid-level program must have a full life-cycle strategy, including acquisition, retention, growth, and movement.

Acquisition into Mid-Level

Donors join the mid-level ranks in one of two ways: they either grow their cumulative annual giving or make their first gift at the mid-level threshold. The best place to find these donors is your organic pipelines (alumni, patients and their families, followers, and subscribers). Focus your donor acquisition efforts on creating a content stream to engage prospective donors before they make a gift. Identify prospect pools with the potential to give at the $1,000+ annual level. Provide them with something of value—not a premium like labels or tote bags, but meaningful information delivered through their preferred channel that engages their interests. Delight them with storytelling.

For existing donors, creating a donor journey that includes meaningful stewardship will keep them engaged and show them that they are important to you. This can take the form of impact reports, authentic and personal gratitude, educational opportunities, webinars, offers of tours, and recognition of giving anniversaries and birthdays. Make it personal. When donors reach a giving threshold (e.g., $500), kick off the journey. Evaluate your donors monthly or quarterly and invest in growing these donors into your mid-level segment.

Strategies for Retaining and Upgrading Mid-Level Donors

First, you have to treat these donors differently than your $50 donors. A named giving society is not a program.  It is critical to show them that they are on your radar and you value their generosity and feedback.

1. Talk to Your Mid-Level Donors

The first objective with major gift prospects is to interview them and learn more about them. You need to make that same investment in your mid-level segment. Find out their “why.” Understanding their motivation for giving, what is most important to them about the work you do, where you rank in their philanthropic priorities, their current state of consideration, and their big life-stage events. Never introduce an ask during an interview. Lead with stewardship, and have a plan to capture and retain the information learned.

2. Identify Your Pioneers and Settlers

Not all of these mid-level donors are the same.  By discovering who is possibly open to doing more you can segment this population and better personalize your outreach to this group.

• Pioneers: These donors show capacity and engagement, indicating potential growth to transformational giving.  This is the group where your major gift prospects will come from.
• Settlers: These are loyal, long-time donors who are likely giving at their maximum capacity. Meet them where they are and capture their preferences (e.g., preferred communication channels, timing of gifts, stewardship preferences). Settlers make outstanding gift-planning prospects.

3. Consider Creating Portfolios of Mid-Level Donors

Just like with major donor management, creating portfolios and providing personalized outreach is a powerful way to grow and retain your mid-level segment. Here’s how a Donor Experience Officer might operate with a mid-level donor portfolio:

• Manage a portfolio of 1,000 donors to annual performance benchmarks.
• Conduct annual donor interviews to identify growth opportunities and preferences.
• Thank donors promptly, personally, and often via phone, email and hand-written notes
• Utilize impact reports to personalize outreach based on donor preferences.  Match what you know the individual donor cares most about with the work that you are doing.
• Create and send email and direct mail templates tailored for each donor.
• Engage donors authentically via telephone, email, and personal notes.
  
• Share compelling stories about the impact of their generosity.
  
• Collect donor stories and conduct surveys.
• Provide high-touch, multichannel engagement monthly, including thank-yous and impact reporting.
• Experiment with innovative solutions to make donors feel like insiders. For example, provide a donor update from a board meeting or create learning opportunities around your mission.
• Make asks whenever the opportunity arises.
• Email the portfolio monthly with updates on upcoming communications.
• Collaborate with your team to serve donors effectively.
• Align your annual giving case for support with strategic goals.
• Track engagement, including email opens, clicks, and subscriptions, as passive consumption also has an impact.

4. Create a Donor Journey for Your Entire Mid-Level Segment

If portfolio management isn’t feasible, develop a donor journey for all mid-level donors. Create a calendar emphasizing interviews, impact reporting, and personalized asks similar to major gift proposals. The more personalized, the more effective.

5. Establish a Process for Moving Donors

Define criteria for moving donors out of mid-level treatment and into major gift or planned giving opportunities. Stick to KPIs around engagement and giving. When donors move up from mid-level, track their subsequent giving as part of your ROI calculations.

6. Track your Results

Set a baseline for KPI’s like, retention of mid-level donors, cumulative giving, number of new major gift prospects, etc.  

By prioritizing mid-level donors and implementing thoughtful strategies for acquisition, retention, and growth, organizations can build stronger, more sustainable donor bases. A strong mid-level program is more critical than ever to maintaining and growing your annual giving revenue.  The success of your mid-level program will be determined by your ability to create true one-to-one relationships with your donors.  The mid-level donor segment represents a vital opportunity to strengthen philanthropy and ensure long-term success.

By Scott R. Lange, President, Visionary Philanthropic Consulting

The philanthropic landscape is undergoing significant transformations, presenting both challenges and opportunities for fundraising professionals and fundraising consultants. Recent data from the Giving USA 2024 Report indicates that while charitable giving in 2023 reached $557.16 billion, this figure represents a decline when adjusted for inflation. Notably, the number of donors has decreased, with small-dollar contributions (less than $500) experiencing the most significant drop. (Fundraising Effectiveness Project)

In contrast, alternative forms of giving are on the rise. Crowdfunding platforms, such as GoFundMe, have seen substantial growth, with many individuals opting to support specific causes or individuals directly, especially in response to crises like natural disasters. $32.7 Billion was contributed through Crowdfunding in 2023 and projections are to exceed $43 Billion in 2025. 

 
Additionally, social impact investing has become a formidable force, with over $1.19 trillion allocated to funds focusing on social causes, including small business startups and low-income housing. While these investments generate a lower rate of return for the investor, the impact, or value proposition is that these investments provide a benefit to the community. Projections suggest that by 2025, investments in social impact funds will reach $422 billion, further blurring the lines between traditional philanthropy and financial investment.

   
This shift is also evident in the behavior of donor-advised funds (DAFs). According to Fidelity Charitable, donors recommended an average of 11.8 grants per DAF in the past year, with an average grant size of $4,000. This trend underscores a move towards more strategic and impactful giving.  (Forbes: 6 Trends Shaping Philanthropy Show the Growth of Smarter Giving)

Moreover, significant contributions from high-net-worth individuals continue to shape the philanthropic landscape. In 2024, the largest charitable donations amounted to nearly $6 billion, with substantial contributions directed towards financial aid for medical schools and the establishment of foundations. Notably, Netflix co-founder Reed Hastings and his wife, Patty Quillin, topped the list with a $1.1 billion donation to their Hastings Fund at the Silicon Valley Community Foundation to support education. (APNEWS: Billion-dollar donation from Netflix’s Reed Hastings). Yet the number of people who made gifts of $1 Million or more to charity in 2023 declined to 386 from 435 the year before.

 
We live in a generous society. Clearly donors are presented with more options to facilitate their acts of kindness. While we monitor the numbers related to charitable giving at The Giving Institute, our radar is also scanning the horizon.  For fundraising professionals and consultants, these developments highlight the need to adapt strategies to align with evolving donor preferences. Embracing technology-enabled giving platforms can facilitate easier contributions, especially among younger donors who prioritize convenience and transparency. Additionally, understanding the motivations behind social impact investing and leveraging donor-advised funds can open new avenues for engagement. 

In conclusion, while traditional charitable giving faces challenges, the rise of alternative giving mechanisms indicates a transformation rather than a decline in generosity. We cannot focus on the few mega donors and neglect the many in the middle and those at the base of the giving pyramid.  By staying informed and adaptable, fundraising professionals and those who advise them, can effectively navigate this evolving landscape and continue to foster impactful philanthropy.

By Gabe Cooper, CEO, Virtuous Software

The world of fundraising has dramatically shifted in the past 15 years. Today’s donors are surrounded by 7000+ ad messages, personalized social feeds, and targeted content, all competing for their attention. Whether it’s our Netflix recommendations, or our personalized Apple News Feed, it’s becoming increasingly difficult for nonprofits to break through the noise and create a personalized connection with each potential donor.

To thrive in this environment, nonprofits need to adopt new strategies that connect with constituents more personally at scale. This new model nonprofit growth is commonly known as Responsive Fundraising—and a growing number of nonprofits are adopting this strategy with unprecedented success. 

The problem is that moving to this new paradigm can feel like boiling the ocean for many nonprofits. Overstretched teams, limited budgets, and legacy, siloed data make it feel almost impossible to move away from traditional, impersonal fundraising to a world dynamic, personalized campaigns based on the behavior of each donor. 

This is where the Responsive Maturity Model comes in. 

A maturity model is simply a framework that helps an organization evaluate their capabilities and processes to determine their current level of maturity. It provides a set of steps to “level up” methodologically over time without feeling overwhelmed by the scale of change. The Responsive Maturity Model, in particular, provides a structured path to help nonprofits become more Responsive to donors over time. Each step in the model provides incremental value to the fundraising strategy and creates a foundation for future growth. And when executed well, you should experience.

• A Better Experience for Your Donors
• Enhanced Fundraising Efficiency
• Scalable Personalization to Drive Retention & Average Gift
• Better Data-Driven Decision Making
• Overall Increased Generosity
  

Let’s dive in deeper to see how the model works.

Understanding the Responsive Maturity Model

The Responsive Maturity Model is crafted to guide nonprofits through five progressive steps, each building upon the previous one to create a cohesive and responsive fundraising strategy. 

These steps are:

1. Data Health and Reporting
2. Integrated Technology and Teams
3. Segmentation and Personas
4. Dynamic Campaigns
5. AI Personalization

Diving Into the Steps

As tempting as it is to skip steps, the Responsive Maturity Model should be executed linearly. Meaning, Step 1 should be at least 80% addressed before moving to Step 2, and so on. It’s impossible to be 100% perfect on each step, but skipping or exiting a step too early will inevitably create issues as you try to mature.

1. Data Health and Reporting

Establishing a foundation of clean, complete, and accessible data is paramount to fundraising success. Driving personalized fundraising and gleaning data-driven insights are functionally impossible if you can’t trust your data. Any good data health strategy begins by conducting a comprehensive audit of your existing contact data, including:

• Identifying Inaccuracies: Reviewing data for errors, inconsistencies, and outdated information.
• Eliminating Duplicates: Merging duplicate records ensures each donor has a unique profile.
• Filling Gaps: Identify missing information and implement processes to collect complete data moving forward.

After your initial audit is complete, it’s then important to establish protocols for ongoing data hygiene to maintain long-term data integrity. Regular audits and data cleaning processes will help support the accuracy and reliability of your donor information.

My favorite business guru, Peter Drucker, famously said, "You can’t manage what you can’t measure." However, trusted data is only the first step in effective management. True acceleration happens when clear, summarized data is available to your entire organization and aligned with your overall goals. Great reporting creates clarity around what’s important, what’s working, and what’s not. It also allows you to confidently test new ideas, knowing you can quickly measure and adjust based on trusted data.

If you feel like your organization struggles to provide clear reporting, I’d recommend defining 3-5 clear quarterly goals tied to your organization's Key Performance Indicators (KPIs). Once the goals are clear, build reports to showcase each KPI and ensure everyone on your team has access to the appropriate reporting. Each team member should have a clear view of their core metrics and understand how their daily tasks drive overall mission success. 

Once your core reports have been created, work to remove any gatekeepers or roadblocks in your organization that prevent your frontline team members from diving into the data on their own. Most of your best insights will come from empowering your team to do additional analysis or build reports that facilitate their individual work.

2. Integrated Technology and Teams

As nonprofits scale, unseen walls begin to form between teams. Fundraising, program, finance, marketing, and volunteer teams begin to operate in their own silos. And each silo often includes its own set of data and KPIs that are segregated from the rest of the team. The result is limited team collaboration, missed data insights, duplicate work, and ultimately, a disconnected donor experience. Breaking these internal team and data silos is essential truly scaling a more effective and personalized fundraising strategy at scale. 

The fix to this problem is simple, but it’s not easy. It will take work. At minimum, I recommend focusing on the following tactics.

• Promoting Open Communication: Establishing regular cross-functional meetings and communication channels to facilitate information sharing across teams.
• Implementing Integrated Technological Solutions: Utilizing platforms that allow different departments to access and share data seamlessly.
• Aligning Team Efforts: Ensuring that all departments understand and are aligned with the overarching fundraising strategy. When possible, share KPIs and goals across teams.
  

Cross-departmental collaboration not only cuts down on inefficient work, it ensures that every interaction with a donor is coordinated, consistent, and data-informed, ultimately leading to a more cohesive donor experience.

3. Segmentation & Personas

Donor personas and segmentation help to provide a clear understanding of your audience, enabling more effective and personalized communication that resonate with each donor’s unique characteristics. Unless you can effectively group donors by their behavior or affinity, it will be impossible to communicate in a more personal way at scale.

In order to begin this process of segmenting donors, I recommend starting with the following three steps:

• Defining Personas and Giving Segments: Develop comprehensive profiles for 3-5 core “personas” who are likely to give to your organization (e.g., “recently graduated alumni”, “clean water influencer”, etc. Each profile should highlight a personas typical motivations and engagement patterns. As you scale, overlay giving analytics to further segment based on financial capacity and propensity (e.g. “recently lapsed,” "monthly donor prospect,” “major donor”).
• Analyzing Donor Data: Use your existing data to “bucket” your donors as much as possible. Where you have gaps in understanding donors, use surveys, UTM codes on donation forms, or good old fashioned phone calls to fill in missing data.
• Mapping the Communication Strategy: Once complete these personas should guide the creation of targeted messages, engagement tactics, and content tailored to each group. This step can feel overwhelming, but start small with your “top three touch points” that are non-negotiable for your top persona.

By segmenting donors by their interests and stage in the donor journey, you’ll be well-positioned to connect more personally, increase engagement, and ultimately drive higher average gift, response rate, and donor loyalty.

4. Dynamic Campaigns

One-to-many fundraising campaigns based on the nonprofit’s timing (think “our standard November appeal) are becoming less effective over time. Again, your team is competing for attention in a world where donors are distracted by an endless stream of content personalized to them.  In order to truly break through the noise with a more personalized approach, you’ll need to move to dynamic campaigns that are triggered by the behavior and intent of each donor.

Now that you have 1) trusted data, 2) integrated teams/data, and clear segments and personas, you’re ready to take this massive leap in your journey to becoming more responsive. 

Here are the three steps that you’ll need to take to get started

• Listen to Donor Behavior: Decide on key donor behaviors or insights that should trigger specific outreach (e.g.” first gift from clean water donor,” “event attended,” “planned giving prospect,” “lapsed alumni donor”).
• Leverage Fundraising/Marketing Automation to Respond: Your team can’t do this on their own with manual one-to-one outreach. Automation allows you to send the right message on the right channel at the right time based on donor behavior, persona, or segment.
• Personalizing Messaging: Personalize your automated messaging based on the donor’s behavior along with any messaging/CTAs that are specific to each persona.

If the idea of dynamic campaigns is new to your organization, don’t be afraid to start small. The easiest first step in an automated New Donor Welcome series that sends automated messages on at least two channels (email, SMS, postcard, call, etc.) over a 90-day period. Next, begin splitting your Welcome Series based on the size/capacity of each donor or the channel/source they came from to better tailor each experience. 

When done well, this more responsive form of donor engagement will inevitably increase donor retention, giving level, volunteerism, and overall engagement.

5. AI Personalization: The New Frontier

AI can dramatically improve your ability to deliver highly tailored experiences at scale. Leading nonprofit fundraisers are already experimenting with AI to find creative ways to free up their team and better personalize your communication. 

If you are new to AI, we recommend starting your journey by evaluating AI tools using the following criteria:

• AI that Predicts Behavior: Employing AI and Machine Learning to predict donor behavior, such as the likelihood of giving or areas of interest. The better you can listen to donors and predict likely actions, the more successful your fundraising efforts will be. 
• AI that Generates Content: Using Generative AI to quickly write copy, edit videos, or generate images can help accelerate both content creation and personalization. It can also help ensure all messaging that leaves your organization conforms to your brand and best practices.
• AI that Does a Job: AI Agents are designed to not just “help you do your job better” but to actually “do the work for you”. When AI cannot just learn but take action on data, you can gain back hours a week in manual tasks. 

AI helps nonprofits to anticipate donor needs and preferences. By leveraging AI, organizations can create a more engaging and personalized donor experience at scale.

Overcoming Common Challenges

Implementing the Responsive Maturity Model is not without its challenges. Nonprofits may encounter limited resources, resistance to change, or technical complexities. 

Here are a few helpful tactics to overcome these common hurdles:

Limited Resources

Nonprofits often operate with constrained budgets and limited staff. 

To address this:

• Prioritize Initiatives: Focus on the most impactful stages of the model that align with your immediate needs and long-term goals.
• Leverage Technology: Utilize cost-effective tools and platforms that offer robust functionalities without requiring significant financial investment.
• Seek Partnerships: Collaborate with technology providers, consultants, or other nonprofits to share resources and expertise.
  

Resistance to Change

Change can be daunting, especially in organizations with established processes. 

To create a culture of adaptability:

• Communicate the Benefits: Clearly articulate the advantages of adopting the Responsive Maturity Model, emphasizing how it will enhance donor relationships and organizational efficiency.
• Provide Training: Offer comprehensive training and support to help staff understand and embrace new technologies and strategies.
• Involve Stakeholders: Engage key stakeholders in the planning process to ensure buy-in and collective ownership of the transformation.
  

Looking Toward the Future of Responsive Fundraising

Implementing the Responsive Maturity Model requires commitment and a willingness to embrace change. However, the benefits are worth the effort. 

As the philanthropic landscape continues to evolve, nonprofits that adopt the Responsive Maturity Model will be well-positioned to thrive, making a lasting and impactful difference in their communities.

By Jeff Jowdy, President, Lighthouse Counsel

By Victor Wilson, Senior Consultant, Lighthouse Counsel | Vice President of Student Affairs Emeritus, University of Georgia

Philanthropy has played an essential role in American higher education since John Harvard’s donation created Harvard University in 1636. Higher education has played a vital and leading role in the growth of philanthropy and the profession of advancement since then.

Giving USA 2024 reported that giving to education was at an all-time high, even when adjusted for inflation. According to CASE, giving to U.S. higher education institutions was $58 billion in the fiscal year ending June 30, 2023.

While there are positive trends, higher education institutions still face varying challenges.

Daunting Challenges

The need for and importance of philanthropic support has increased while institutions face daunting challenges:

Relevance

• The pandemic illuminated the need for vocational workers, and the prospect of student debt has many high school graduates considering technical training.
• With the rise of distance education, schools must more effectively articulate the case for and benefits of being and living on campus.
• Online education is regarded as an alternative to the expense of an on-campus education. For college or university, online education is expensive, particularly if offered in addition to the campus-based education.
• Schools must ensure that their online programs are robust and differentiated from competitors.
• As higher education costs rise, the pressure to major in a professional program with a positive “return on investment” does as well. There is growing concern and discussion about the “real world” relevance of some higher education programs and traditional degrees.
• Colleges and universities must ensure that graduates have the practical, technical and soft skills needed for the workforce.

Affordability

• Student loan debt and tuition are increasing, and graduates are struggling to repay loans. Large debt limits workforce options based on the need to repay loans.
• There are recent calls to shrink degree completion to three years to offset student costs.

Enrollment

• The number of high school graduates in some regions of the country is decreasing, leading to lower enrollment, particularly in small private and faith-based colleges and universities.
• As students increasingly opt for vocational/technical training, colleges and universities may find their pool of prospective students shrinking.
• Annual college closures are likely to increase above their current rate if the anticipated decline in higher education enrollment transpires, according to a Federal Reserve Bank of Philadelphia working paper.
• An analysis by Deep Thoughts in Education reveals that approximately 30 nonprofit universities ceased operations in 2024.

Political Environment

• With changing demographics in the United States, institutions face pressure to address racism, sexism and other inequities to ensure an inclusive environment. Calls for greater inclusivity and diversity can be met with resistance to “woke” education, resulting in tensions among stakeholders.
• Campus actions and policies increasingly could become an internal or external lightning rod. With today’s geo-political climate and a politically divided nation, donor activism is increasing, with some donors placing conditions on their contributions or canceling their commitments over disagreements with the university.

Technology

• Information technology tools are inextricable from modern education. Sadly, they are expensive and carry the risk of external threats and internal abuse. Colleges and universities need financial support to keep up with rapid changes in technology and maintain its infrastructure.
• Students have embraced distance learning – and competitors offer it – so schools must continue to adapt to online and hybrid learning models.
• Artificial intelligence and automation are transformative, and institutions are learning how to embrace them while maintaining academic integrity.

Leadership

• The average tenure of a president continues to shrink, leading to more frequent disruptions in the continuity of leadership. There are also continuing debates as to who is now qualified to be a president. Many do not feel experience in higher education is necessary anymore, and more political leaders are being appointed without endorsement from campus constituencies.

These challenges may adversely affect the perceptions of donors and prospective donors. However, they also present opportunities for refining an institution’s identity, which could increase philanthropic support.

We offer observations based on our 25 years of partnering with higher education institutions and the experience of our team members, who include former university presidents and vice presidents. The following are tips for increased success in 2025.

Tips for Increased Success

Staff Recruitment, Retention and Coaching

• The right leadership is essential for an advancement program to fulfill its potential. At larger institutions, a poor leader can survive while momentum carries a program. At the same time, it can take years to fix problems and increase success.
• Passion for the institution is essential in advancement. Staff retention statistics are poor, and smaller institutions have challenges competing with larger institutions and the for-profit sector. The average tenure in a single position is two to three years in a profession where deep relationships built on behalf of the institutions are vital.
• Leaders should work to provide a stellar, positive culture for the advancement team by investing in training and development for all team members. Be wary of hiring professionals with a history of short tenures – especially as they mature in the profession. Have succession planning in place while making sure team members know they are valued.
• Increase staff where needed – the return will more than pay for itself. CASE’s VSE survey data from 101 institutions showed a typical return on investment in 2018 of 942 percent! With returns of three to five times the investment, this presents a sound business model for enhancing staffing. You need enough staff to support essential functions and to be in front of your major donor prospects.
• Consider outsourcing certain staff functions when facing complex staffing issues. Some positions may only be needed for a specific duration, which also allows the opportunity to expand a search or develop additional internal capacity.
• Invest in relationship-based training rather than sales/insurance training. Transactional approaches may see short-term gains but will lose in the long term. Build capacity so that internal staff coaches your major gift team.

Growing Constituency Engagement

• Most significant gifts to higher education come from those engaged with the institution. Provide meaningful and sustainable opportunities to engage alumni and friends, including future friends. Potential significant donors should be offered the opportunity to engage in the college/university activities of interest to them.
• Create engagement opportunities for alumni to connect with each other and the institution through mentoring programs, regional events and virtual programs and platforms.
• Build a strong student alumni program and educate faculty and staff that students are the institutions’ customers, future alumni and donors. Plan to keep student leaders involved with the institution as they graduate – this can have a significant impact on alumni giving.
• Every academic program should have an advisory council, which should be staffed fully or partially by advancement professionals. Properly support advisory councils for alumni, colleges and programs. Provide opportunities for continued involvement and communication when people leave these groups.

Enhancing Cultivation and Stewardship

• While focusing on major gifts, ensure that every donor’s giving and stewardship experience is as personalized as possible. Stay attuned to donor perceptions and interests through regular visits, broader surveys and focus groups.
• While institutions have a need for unrestricted gifts, most often initial gifts are for a specific program or need. As donors bond and become more engaged with the institution, they become comfortable with unrestricted giving. Focus on aligning institutional goals with donor passions. Personalize donor experiences by targeting your outreach based on interests, past giving and engagement patterns.
• Regularly recognize and thank donors with personalized updates about how their contributions make a difference. Effective stewardship builds trust and helps retain donors. Remember that keeping donors is much easier and more cost effective than securing new ones.
• The importance of storytelling is vital – bringing to life the difference a donor can make (and supporting it as appropriate with facts). Interaction with students who have benefited from a donor’s support is paramount. Students tell the story better than anyone. From letters from scholarship recipients to lunch with them, make every effort to connect donors with the students and faculty who have benefited from their generosity.
• Use technology to enhance relations through a hybrid model of donor engagement, combining in-person and virtual interactions to meet diverse preferences. With technology and AI-powered tools, outreach can be increasingly personalized, speaking to a donor's history and interest. Institutions and donors are embracing technology and virtual meetings/visits (paired with in-person visits and gatherings) to maximize participation and flexibility. Key campus traditions as well as student presentations such as TEDx, pitch competitions, etc. should be online and accessible.
• Focus on data integrity – institutions of all sizes suffer from inaccurate records and insufficient procedures and support.
• Be sure that any donor or prospective donor outreach is in sync with the desires of the donors.

Growing Giving Opportunities and Methods

• The "Great Wealth Transfer" is expected to see around $84 trillion transferred to younger generations by 2045, primarily from the aging Baby Boomer generation. This figure is based on research from Cerulli Associates. Higher education is seeing great success and great opportunity with planned giving.
• In major campaigns, we see planned gifts typically accounting for 20% to 30% and sometimes approaching 50%. CASE reports a substantial increase in endowment gifts to higher education in recent years.
• Enhance planned giving programs through staffing and technology to make planned giving understandable and easy for donors, and to share compelling legacy stories.
• Share a variety of giving opportunities, including capital, programming and endowment. Develop an ongoing catalog of gift opportunities for each college/unit/program. Educate donors about the opportunities to spread a gift commitment over time and the use of donor-advised funds, IRA distributions, matching gifts and planned/legacy giving.
• Donors, especially younger donors, are increasing their giving through innovative methods and to causes beyond traditional higher education and nonprofits.
• Crowdfunding campaigns and giving days can use online platforms to target younger donors and drive their engagement.
• Keep appeals fresh. Your donors and prospective donors have many organizations seeking their support. Consider how you can stand out.

Increasing Communication Effectiveness

• Advancement communications is different than traditional marketing. Your advancement communications need to be coordinated in delivery and content with a donor focus. Highlight your institution's impact with compelling stories that emotionally connect with audiences. Invite the donor to be the hero of the story.
• Communicate with donors through multiple channels and in ways that they prefer. If a donor texts you, this opens the door for appropriate texting. Video messaging (such as birthday greetings) can be very effective with individual donors. Your communications plan should include broad, overarching advancement messaging (coordinated with that of the institution) and funnel down to communications tailored as much as possible to each donor/prospective donor.

Building a Culture for Philanthropy

• Advancement professionals must understand the institution’s mission and vision. That means they must be included in planning and must be on board with the institution’s direction.
• For maximum success, philanthropy must be embraced across the campus, from the board and president to academic and administrative leaders to faculty and staff.
• The university community needs to understand the critical role advancement plays in the institution's health.
• Donors value their teachers and mentors, thereby making them excellent ambassadors.
• Since alumni value former teachers and mentors, encourage those individuals to be ambassadors to alumni.
• Promote collaboration between advancement, academics and student affairs. This ensures a unified message and maximizes the use of institutional resources. Engage students early in the idea of giving back. Encourage philanthropy through senior class campaigns, student giving days and educational initiatives about institutional funding.

Growing the Donor Pipeline

• For long-term success you will need to build the pipeline of future donors and combat donor attrition. Concentrate on alumni, non-alumni, potential friends, businesses and foundations. Include donor acquisition in many forms and with many constituencies in your advancement plan.
• Use committed donors to help identify and connect you with future donors. Implement fun and innovative strategies to gain prospective donors’ attention and gauge their interest. Beyond major gifts and events, use digital platforms like crowdfunding, social media campaigns and text-to-give tools to reach younger and tech-savvy audiences.

Utilizing Campaigns Strategically

• Comprehensive fundraising campaigns are normal in higher education. You have ongoing annual giving and endowment programs, and most institutions roll these programs in with a major capital campaign for a comprehensive effort.
• Adopt comprehensive fundraising strategies to engage a broader donor base and align stakeholders with the institution's vision. Be sure that your campaign’s goals are integrated with the long-term institutional goals as outlined in the strategic plan and campus master plan. By continually communicating these priorities, donors will not be surprised when elements fall into a major campaign.
• Many institutions are stretching the timeline of campaigns – some nearly a decade from study to completion. Over the past few decades, most campaigns have had five-to-seven-year horizons. Institutions can often raise more and build deeper relationships by lessening the duration of campaigns, focusing more on engagement and using smaller, targeted or phased campaigns between major comprehensive campaigns. Some institutions give the impression of being in a perennial major campaign.
• We have seen remarkable success with campaigns using a two-to-three-year active solicitation timeline and a five-year pledge period. Be sure to have major gift efforts that you can focus on between major campaigns. At the same time, be aware of donors' interests and receptivity and pace gift requests to align with their interests and your interest in a long-term relationship
• A reliable campaign strategy and benefit is marshaling resources to build enthusiasm and focus for a specific time. Even at a major institution with significant resources, it is not easy to maintain volunteer, staff and donor enthusiasm for the duration of a campaign.
• The essential research phase of a campaign planning study is as relevant as ever in major campaigns, and we have seen remarkable success in having college/program unit mini studies as a phase of a major campaign study. The added investment pays rich dividends, allowing you to have a more targeted strategy and increasing the effort’s success.
• For all advancement programs, adhere to the highest standards of integrity in reporting.
• When announcing campaign results, go beyond the headlines for transparency and give details. Do not be tempted to take shortcuts in reporting to achieve a campaign goal or gain “status” in a publication.

Reflecting Inclusiveness

• Despite competing political narratives, inclusion remains paramount to higher education.

Leveraging Data, Technology and Systems

• Technology provides cost-effective tools for engaging donors, tailoring cultivation, enhancing conversations and facilitating gift solicitation. Predictive analytics and AI can identify high-potential donors, while virtual platforms expand engagement opportunities for donors. Appeals can be personalized using insights from donor history, geography, academic major and areas of interest, with tools like virtual reality or 3D tours becoming standard for promoting major capital projects.
• Every advancement program will benefit from leveraging data, technology and systems. Audit CRM and digital tools to ensure that they support personalization, predictive analytics and robust data management. Use analytics to identify trends, predict donor behavior and measure campaign impact.
• Adopt AI tools to streamline prospect research, provide actionable donor insights and automate communication, improving efficiency and precision in targeting donors and alumni. Choose data-driven strategies to guide fundraising decisions and help assess and refine processes for greater impact. Enhance reporting capabilities for critical insights into fundraising performance and to tailoring of engagement approaches.

Developing a Relevant Case

• Donors like projects that address key issues and bring together partnerships from across the campus and with other institutions and partners.
• Institutions are attracting donors by linking campaigns to sustainability and social impact. This could ensure renewable energy and other programs that appeal to environmentally conscious donors. This reinforces the importance of having institutional values and priorities intersecting with those of donors and prospective donors.
• Be sure that donors see their role in solving critical issues through your institution and that your case is compelling and relevant.

Engaging Key Constituencies

• Successful institutions bolster their alumni relations programs and ensure they are integrated and coordinated with development and expanding outreach to other key constituencies. According to CASE, in 2022 alumni giving represented around 23% of total giving to higher education, giving from non-alumni individuals 16% and giving by organizations 61%.
• This includes integrating alumni relations and career services, offering a life-long value to alumni and engaging alumni in mentoring roles with students. Continuing education programs can be successful in engaging alumni and non-alumni alike.

A Bright Future

Donors are critical to the success of higher education. While facing daunting challenges, there is great opportunity even in the challenges themselves. Many people are eager for 2025 to be quite different from the drama and tensions of 2024. Now is the time to express optimism about the future and eagerness for people to be part of a success story.

By Jessica Browning, Principal and Executive Vice President, Winkler Group

For too long, we’ve been mesmerized by the one-stop-shopping lure of the megadonor and the power of the major donor. Who hasn’t been tempted by the idea of meeting a fundraising goal with fewer asks?

This obsession—fueled by reduced tax incentives for giving, societal shifts, and nontraditional forms of giving—has put us in a precarious position. Because we’ve ignored the everyday donor, they’ve stopped giving and now our traditional philanthropic ecosystem is out of whack.

Let’s take a look at how we got here, why the alarm bells are ringing, and how we can fix the problem.

Economic and Societal Shifts

“The Shifting Landscape of American Generosity,” published by the Generosity Commission earlier this year, identified the reasons we’re seeing fewer monetary donors.[1]

• Economic precarity and the lasting impacts of the Great Recession
• The decline in Americans’ religious affiliation and participation
• A declining trust in nonprofits and institutions in general
• Social disconnection or what Surgeon General Vivek Murthy describes as an “epidemic of loneliness and isolation”[2]

If we stay on this path, we will continue to see declines in the number of Americans who give to 501(c)(3)s. More giving will shift away from nonprofits and toward crowdfunding and person-to-person giving. We’ll be less prepared for the impacts of an economic downturn. Worse yet, we’ll set ourselves up for future failure when we don’t cultivate our pool of younger, emerging donors.

We’ll also see an imbalance among sectors. Because the wealthiest donors tend to support arts organizations, higher education, and health-related causes, other sectors like human service organizations and religious institutions will be more vulnerable.

Fewer Volunteers

A reason for the decline in everyday donors is the shrinking number of volunteers. AmeriCorps data shows the volunteer rate fell from 30 percent in 2019 to just 23 percent in 2021—continuing the decline that began in the mid-2000s.[3]

The decline may be blamed on the same factors influencing donor decline. It could also be us because we make it too hard to volunteer. With limited spots and lots of hoops to jump through, we put up a lot of barriers to volunteering.

Take my mother, for example. For years, she has volunteered to read to children who are falling behind. After Covid, she wanted to volunteer closer to home and chose an early childhood center where she is a long-time donor and past board member. The organization’s background check policy included fingerprinting. The skin on my 82-year-old mother’s fingers is so worn that it’s impossible to find fingerprints. They couldn’t make an exception. Now she feels unwanted by the organization she’s long championed.

Yes, managing volunteers can be time-consuming and frustrating, and security measures like background checks are important. But connecting someone—a prospective loyal donor—with your mission is worth it. “When you volunteer your time, you see the need and you’re more compelled to donate,” explains my mom.

2017 Trump-Era Tax Reform

Recent tax reform has eroded giving from everyday donors. For 93% of Americans, a tax deduction for charitable gifts is no longer a realistic choice.

We used to gather giving statements or receipts for the bags of clothes we dropped off at the thrift store because we could deduct those contributions from our taxable income. It wasn’t the reason for giving, but for many of us, it was a worthwhile incentive and motivation to give more.

The Tax Cut and Jobs Act (TCJA) that passed in late 2017 raised the standard deduction and eliminated the option for most Americans to itemize their deductions, including their gifts to charity.

According to the Urban-Brookings Tax Policy Center, the percentage of American households donating to charity fell from 66.2 percent in 2000 to 49.6 percent in 2018, the first full year the TCJA was in effect.[4] Today, only 7.5% of Americans itemize their deductions, meaning the financial incentive to give is concentrated among a sliver of Americans.

“Tax Incentives for Charitable Giving: New Findings from the TCJA,” a working paper drafted by Xiao Han, Daniel M. Hungerman, and Mark Ottoni-Wilhelm and published by the National Bureau of Economic Research, finds that charitable giving has fallen by nearly $20 billion annually as a result of the TCJA.[5]

This chart illustrates the gap between actual charitable giving and the projected trajectory had TCJA not been passed.

The TCJA has also fueled our hyper-focus on giving from the wealthiest Americans because it increased the limit on deductions for charitable contributions from 50 percent to 60 percent of adjusted gross income (AGI). For example, a donor whose AGI is $1 million a year can now deduct up to $600,000 in charitable gifts rather than the $500,000 they could deduct before the TCJA.

Us (Fundraisers)

Perhaps the biggest hurdle is that everyday donors don’t think we appreciate them.

Case in point: a friend of mine has volunteered with the same organization every month for the past three years. Yet, when they send newsletters and appeals to her house, they send them only to her husband. And they misspell his name!

“Why would I trust them with even more of my money?” she says with an awkward laugh.

We’ve all heard horror stories like this. Ironically, as we amass more tools like AI and predictive wealth screening—tools that supposedly make it easier for us to communicate more authentically—we hear these cases about donors being alienated even more.

The Case for the Everyday Donor

The pandemic era proved that it’s worthwhile to engage and steward the everyday donor. The CARES Act of 2021 temporarily enabled all taxpayers (including non-itemizers) to claim a modest deduction for charitable contributions. The result: $18 billion in new gifts from 47 million households. And nearly a quarter of the households (21.3%) had adjusted gross incomes below $30,000.[6]

Once we acquire everyday donors, it’s just as important that they feel valued. Here are some strategies to find and keep supporters:

• Use your CRM’s AI-enabled powers to segment by donor personas and then share stories tailored to their interests. For example, a hospital system can share the heartwarming story of a child who beat cancer with donors to their children’s hospital—and news of groundbreaking cardiovascular research to their heart center donors.
• Use a platform like Gratavid to show your donors their impact first-hand. Imagine how donors to a clean water charity, for example, would react to seeing children in a remote African village taste flowing fresh water for the first time. Combine the video with the message, “you made this happen,” and you have a powerful case for support.
• Give donors the exclusive by sharing behind-the-scenes information on research and new programs. Survey donors on strategic issues and then communicate the results.
• Advocate for the Charitable Act: Use AFP’s form (link to https://afpglobal.org/policy-advocacy/charitable-act) to send a pre-written email to your senators and representative and encourage them to permanently enact a charitable deduction for non-itemizers.

Why Diversify?

Just like a strong stock portfolio, our donor pool must be diversified. By ignoring our everyday donors in favor of larger ones, we all lose. We end up with top-heavy organizations that are vulnerable to the unexpected. Instead, strive for the pyramid on the right—the one with the broadest base of support.

As fundraisers, there are challenges we won’t be able to overcome on our way to building a diversified donor portfolio. Social isolation, economic fluctuations, and declining religiosity are beyond our control.

But it is within our power to make the case for philanthropy and demonstrate its impact to those who fuel our missions.

About the Author:

Jessica Browning, principal and executive vice president of the Winkler Group, has more than 30 years of nonprofit experience. Her specialty is donor communications. She holds a B.A. from Duke University and an M.A. and M.B.A. from the College of William and Mary.

[1] While some will argue that generosity is more than the financial, this paper focuses on contributed revenue.

[2] “The Shifting Landscape of American Generosity,” The Generosity Commission, June 2024, https://www.thegenerositycommission.org/generosity-commission-report/

[3] “The Shifting Landscape of American Generosity,” The Generosity Commission, June 2024, https://www.thegenerositycommission.org/generosity-commission-report/

[4] https://taxpolicycenter.org/briefing-book/how-did-tcja-affect-incentives-charitable-giving

[5] https://www.nber.org/papers/w32737?utm_campaign=ntwh&utm_medium=email&utm_source=ntwg6

[6] https://www.ncsl.org/state-legislatures-news/details/spreading-cheer-through-charitable-giving#:~:text=The%20temporary%20incentives%20boosted%20giving,4%25%20from%20the%20previous%20year.

By Nathan Stelter, President, The Stelter Company

Ever feel like you could use a boost in your work? Something concrete to prove that your efforts are yielding a solid return on investment?

We’ve discussed the efficacy of using data and metrics to guide your planned giving marketing strategies and determine ROI in previous posts on our Stelter Insights blog.

Today, however, we’re talking about YOU—your return on investment; or using data and metrics to prove to yourself and to leadership that you’re doing a good job.

A Few Points to Bolster Your Confidence

Planned giving is nothing for decision-makers to dismiss.

• Highpoint: In 2022, for example, charitable bequests (the most common type of planned gift) accounted for 9% of all donations, totaling $45.60 billion. That’s more than double the donations from corporations ($21.08 billion).

Planned giving remains a steady, secure funding source even amid uncertain times.

• Highpoint: A Blackbaud report shows that some organizations receive over 25% of their annual revenue from planned gifts, with these gifts increasing nearly 5% every year, even during times of widespread financial distress.
  

Planned giving offers a higher ROI than major gifts or annual gifts.

• Highpoint: A typical planned gift is 200 to 300 times the size of a donor’s largest annual gift.

Planned giving lifts all boats.

• Highpoint: According to Russell James, J.D., Ph.D., CFP®, those who include a nonprofit in their estate plan also increase their annual giving by about 75%.

Planned gifts enable your nonprofit to plan with confidence. In fact, it’s not a “nice-to-have” in your organization’s overall funding program but an absolute anchor to help ensure your nonprofit’s long-term sustainability.

• Highpoint: The average time from inception to maturity for a planned gift is seven to 10 years. Remind people that planned gifts aren’t as deferred as they might think.

Donors who’ve made a planned gift often have a stronger attachment to your organization. They’re invested—financially and emotionally.

Determining the Worth of Your Work

Data and metrics give your board, committees, development teams and even your boss the confidence to get behind planned giving. These concrete measurements show that short-term tactics, combined with a long-term strategy, will continue to yield a pipeline of planned gifts.

Part 1—Start Here For a Foundation

Review the National Standards for Gift Planning Success (NSGPS) to inform your ROI. They are a framework—already classified and organized—to advance your program and ensure accountability.

Our Stelter team is professionally invested in these standards, which means they’ve been scrutinized and vetted repeatedly to ensure their clarity and effectiveness.

I’ve been a board member and chair of the National Association of Charitable Gift Planners, the group that spearheaded these standards, and co-chaired the NSGPS task force. Lynn M. Gaumer, JD, Stelter’s senior gift planning consultant, has been involved as chair of CGP Leadership Institute.

TIP: The place to start for ROI measurement tools is Ability and Capacity to Execute.

The National Standards for Gift Planning Success

Real-world applications:

1. Under each standard, write bullet points or a narrative about what you’re doing to advance the standard. Try a SWOT analysis for a more complete understanding.
2. This is a good exercise to impart clarity and a way forward for you and your planned giving team. It also can be used to validate your work to leadership.

Part 2—Drill Deeper for Solid Backing

You’ve got to be comfortable playing the long game in planned giving. As I mentioned earlier, it takes an average of seven to 10 years to realize funds from a planned gift intention. True, we’re not talking decades to receive a gift, but it can be a longer time frame than what some decision-makers expect or are comfortable with.

That’s why measuring ROI only in dollars received from planned gifts tells an incomplete story and reflects short-term, “show-me-the-money” thinking. A large part of your metrics should also focus on activity, or what you’re doing to move a prospect from awareness to action (i.e., making and notifying you of a planned gift).

Making these activities a metric relies on the assumption that purposeful, targeted activity will translate into dollars in the long term. These types of activities include:

• Your contact plan. Document your marketing touches—like multichannel marketing efforts, calls and visits—monthly, quarterly and annually.
• Identified/engaged planned gift prospects. Track reply card responses, prospect-initiated outreach (calls, emails) and repeat traffic to your gift planning website.
• Planned gift intentions. How many intentions are you recognizing each year? How many prior revocable intentions are you stewarding? How many (if any) gifts were rescinded? How many new members did you add to your legacy society? These are all important questions to track and tackle to improve your fundraising effectiveness.

More Resources

Read more about advanced ROI measurements to provide deeper insight and proof of planned giving success. And we’ve got your back with more ways to use data. Below are the blogs I mentioned earlier for more support to prove that you are your nonprofit’s star ROI.

Yes, You Can Measure ROI in Planned Giving. Here’s How.
6 Essential Metrics to Track for Planned Giving Marketing Success

By Bill Tedesco, CEO & Managing Partner, DonorSearch

Artificial intelligence (AI) is quickly becoming more prevalent in the nonprofit sector. As of September 2024, 58% of nonprofits leverage AI tools in their marketing efforts, and 68% use AI to analyze constituent data. This push for innovation exceeds for-profit implementation, as only 47% of business-to-consumer (B2C) companies have integrated AI into their communications, and 64% have incorporated it into customer analysis.

The two functions analyzed in the study above require different types of tools. If your nonprofit uses (or wants to use) AI for communications, you’ll leverage generative AI solutions. If your goal is to understand your supporters more deeply, predictive AI is your best bet.

However, the most effective AI fundraising strategies involve both types of tools working together. In this guide, we’ll dive deeper into the unique functions and benefits of generative and predictive AI before discussing how to use them in conjunction. Let’s get started!

Generative AI

Generative AI uses its intelligent pattern recognition and analysis capabilities to create original content. These solutions are “trained” by inputting large amounts of data. Then, when you enter a prompt into the tool, it generates an output of text, images, audio, or video.

Benefits

Using generative AI effectively will provide the following advantages for your nonprofit:

• More consistent branding across channels in both visuals and messaging.
• Easier content personalization to show donors you appreciate their individual support.
• Increased innovation capabilities that allow you to try new marketing approaches or fundraising methods.
• Improved accessibility since AI can create closed captions for videos, suggest alternative text for images, and take other steps to help all audiences gain value from your content.

Use Cases

Your nonprofit can leverage generative AI for a wide range of content creation purposes, including:

• Multi-channel marketing. As Getting Attention’s nonprofit marketing guide explains, this marketing approach allows you to connect with as many supporters as possible, but it’s time-consuming to create high-quality, consistent content across various platforms. Using generative AI can streamline this process and spread awareness of your mission.
• Prospect reporting. AI-generated prospect reports summarize key information about individual potential donors to provide your major and planned gift officers with actionable insights for relationship-building.
• Donor cultivation. Once you start the relationship-building process, you can use generative AI to develop educational resources and draft messages to keep prospects informed about your organization.
• Fundraising appeals. Whether you’re soliciting a gift via email, direct mail, or a face-to-face meeting, AI will help you craft asks that resonate with your audience.
• Donor stewardship. After a donor gives, you can also save time on choosing stewardship methods and writing thank-you messages with generative AI.

In all of these cases, generative AI should supplement human content creation, not replace it. Evaluate and revise your AI tools’ outputs to ensure they’re accurate, aligned with your nonprofit’s writing style, and tailored to your audience.

Predictive AI

At its base level, predictive AI analyzes data and creates models based on this analysis. Since these tools are also trained to recognize patterns, they can project future trends and make suggestions based on past data.

Benefits

The main benefits of predictive AI for nonprofits like yours include:

• Informed decision-making capabilities for key processes like strategic planning and major donor outreach.
• Optimized donor cultivation based on your AI tools’ recommendations for the best ways to engage specific prospects.
• More effective fundraising asks that don’t request too much of your donors or leave money on the table.
• Efficient resource allocation through suggestions for optimizing your team’s time and your organization’s funds when engaging donors.

Use Cases

Since predictive AI is most useful for constituent data analysis, here are some ways your nonprofit can leverage it effectively:

• Donor prospect modeling. Standard prospect research only provides a general sense of donors’ giving capacity, affinity for your mission, and philanthropic tendencies. Predictive AI models go a step further by rating how likely a prospect is to give to your organization based on these factors so you can prioritize outreach to the highest-ranked candidates.
• Engagement analytics. By showing you how supporters have responded to different types of outreach and fundraising appeals in the past, predictive AI can help you capitalize on your donor engagement strengths and improve where necessary.
• Sector-specific fundraising needs. According to DonorSearch, “AI-supported analytics can especially help organizations in niche sectors like healthcare and higher education model their unique data and inform their strategies.”

Like with generative AI, predictive AI should enhance your organization’s decision-making rather than making decisions for you. Always maintain human oversight when using these tools and treat their outputs as one of several key factors that inform your nonprofit’s strategies.

How do generative & predictive AI work together in fundraising?

The short answer to this question is that predictive AI informs your nonprofit’s fundraising efforts, and generative AI helps you execute your strategy.

To help you understand this relationship more deeply, here is an example of the process a university might use to cultivate a relationship with a major donor, leveraging both generative and predictive AI tools along the way:

1. The university’s major giving team conducts prospect research as usual. Once they’ve screened several potential donors, they use a predictive modeling tool to prioritize their prospects based on giving likelihood and an AI-powered prospect generator tool to create reports for their top prospects.
2. A gift officer then schedules a one-on-one meeting with the highest-priority prospect on the list. Since the predictive models showed that the prospect responds well to emails, the officer uses an AI content generation tool to draft an email requesting the meeting and produce a meeting agenda with relevant talking points and questions.
3. After the meeting, the prospect seems interested in the university, and they express a passion for the arts that’s also reflected in their prospect report. So, the gift officer continues using the content generation tool to draft weekly follow-up emails to the prospect over the next few months. Some of these emails include resources about the university’s visual and performing arts programs, while others introduce key players in those departments that the prospect communicates with to learn more.
4. The gift officer generates a personalized invitation to a performance and behind-the-scenes tour of the university’s spring musical to give the prospect an inside look at the arts program. The prospect had talked at length about their children in the initial meeting, one of whom is involved in her high school drama program, so the officer invites the prospect to bring their daughter along.
5. After seeing the musical, the prospect seems almost ready to give. The gift officer starts preparing the donation request, revisiting their predictive modeling tools to determine the right amount to ask for. Since the prospect has given to foundations in the past (and foundation giving is growing in popularity, according to Giving USA 2024), the gift officer lists donor-advised funds (DAFs) as a giving option to suggest. The upward trajectory in corporate giving that Giving USA also reported prompts the gift officer to research the prospect’s employer’s matching gift program and make a note about it in the request.
6. The gift officer formats the request into a presentation using generative AI and delivers it to the prospect. The prospect responds well, and they work out a payment plan for a major gift to support the renovation of the student practice rooms and dance studios in the performing arts building.
7. The donor’s prospect report shows that they’ve previously been recognized for their charitable gifts at donor appreciation events and in annual reports. So, the university generates an invitation for the donor to their next appreciation dinner and collaborates with them on a “Featured Donor” spot for its annual report to effectively steward them.

Of course, the exact ways generative and predictive AI affect your donor cultivation processes will vary depending on your nonprofit’s mission, prospecting results, and donor responses. With that in mind, this example will hopefully get you thinking about how you can integrate these tools into your efforts for more efficient and effective fundraising.

By Amanda Macdonald, Managing Partner, The Monument Group

A couple of years ago my daughter’s soccer team was in the championship game of an end-of-season tournament. My daughter is a defensive player, and in that position, she will often go a whole season without scoring a goal. With just a minute left, she kicked the ball with everything she had straight at the goal, and it sailed in right over the goal keeper’s head. They won! Afterwards, I asked her what gave her motivation to try to score from so far back. She said that the team decided that when they got down to the end, everyone would do everything they could to score a goal. I thought to myself, shouldn’t they always be trying to do that?

Every year, we development officers and directors come up with an annual fund plan that includes a typical sequence of mailings, events, and meetings that will get us to our annual fund goal. Much like a soccer team passing the ball and progressing down the field, we follow our tried-and-true calendar of mailings and events that get us to our annual goal.

But this annual fund cycle can often feel repetitive, can lack a sense of urgency and excitement, and have many development directors feeling like they are the only one kicking the ball down the field.

This is the opposite of a campaign. With a campaign, an organization comes together around a shared goal that is often bold and somewhat scary. Time is spent perfecting the case, months of research is done to see if what you envision is even possible, and volunteers get excited and engaged. The entire organization is laser focused on raising major gifts, because you must hit your campaign goal in a specific amount of time. Everyone has leveled up. It’s exciting just thinking about it!

But here is the secret – you don’t have to be in a campaign to be in this campaign mode. An annual fund is just a mini campaign. You have to raise a certain amount of money in a certain amount of time. And the stakes are high. Depending on the size and financial health of your organization, the consequences of not making goal can impact the current operations of the organization and your ability to raise funds the next year.

So, what does it mean to be in campaign mode? It means adding a layer of strategy and urgency to your annual fund. It means looking at steps you traditionally think of as campaign planning steps and applying them to your annual development plan.

1. Case for Support – Take time each year to refine your case for support and involve staff from all areas of the organization. Focus on specific goals for the year and connect those goals to the long term goals of the organization. Involving all departments in this process helps create a team approach to reaching the goal.
2. Scale of Giving – When planning for a campaign, a scale of gifts is often used to determine how many leadership gifts you need to hit your goal. Using this same tool for the annual fund will help keep you in the campaign mode mindset throughout the year. Create a scale based on your major donors from the previous year (this could be $500 and up or $1,000 and up, depending on the size of your organization). Then, determine how many more donors at each level you will need to hit the increase in your annual fund goal. Line those up with actual donors whom you think have the potential to increase their gift. Then set a personalized cultivation and solicitation plan for these donors based on their interest and passion. You could craft an ask for an increased annual gift, a multi-year gift to support a program, or even a capital request for immediate needs or maintenance. You don’t have to be in a campaign to make a campaign-like solicitation.

2. Event Strategy – Many organizations have a large fundraising event as part of their annual fundraising strategy. How many times have you seen this used as a campaign strategy? Not many, right? This is because of the amount of staff time required to make this event successful, making the return on investment quite small. When an organization embarks on a campaign, they are doing this on top of ongoing annual operations. The return on investment for each strategy has to be high because time and capacity are limited. So, you won’t see a big fundraising event in a campaign, but you will see small cultivation events for targeted groups of donors. This is an excellent way to get many donor cultivation conversations completed on one night, getting you one step closer to a major gift solicitation. These events don’t bring in gifts the night of the event, but they can be a catalyst to increased annual donations.

3. Weekly Meetings – Many campaigns utilize weekly strategy meetings to make sure cultivation steps and solicitations are happening regularly. This framework is essential to keeping your annual fund effort in campaign mode. A weekly meeting with everyone who has fundraising assignments – including your Executive Director – will keep the team accountable. Use this meeting to report on recent donor meetings, next steps that should be assigned, and strategy for upcoming donor meetings. It also gives you the opportunity to pull in program staff or finance staff that are vital to certain solicitations and proposals.

Implementing these campaign strategies to your annual fund plan will ignite passion into your purpose and bring your team together around your shared goal, so that you are fighting to get that goal in the last minute, no matter what.

By Sarah Sebastion, Director of Communications, OneCause

As a nonprofit, understanding your donors' motivations is key to creating effective campaigns, improving events, and enhancing communication. With clear data on what motivates your supporters, you can create deeper connections, increase fundraising, and make a bigger impact.

In a continuation of tracking the attitudes, motivators, and behaviors of social donors, OneCause partnered with Edge Research to survey 1,036 social donors and create the 5th edition of the Giving Experience Study. These donors engaged in social giving by participating in or donating to one or more of the following:

• Fundraising events such as galas, golf fundraisers, etc.
• Nonprofit auctions
• Peer-to-peer campaigns such as runs, walks, or rides
• Giving days, occasions, memorial giving, or challenges

The report sheds light on what makes social donors want to give and offers actionable strategies for nonprofits to adopt as they plan for the future. Here are some key highlights:

Social Donor Generosity Holds Steady Amid Economic Challenges

Despite inflation concerns, social donors have remained generous, with 37% reporting they gave more than they usually do. While a smaller segment of donors (1 in 10) gave less than in previous years, the fact that many continued to prioritize generosity showcases resilience in the face of financial pressures. Despite ongoing economic challenges, donors remain committed to supporting the causes they care about.

Trust, ease, and belief in a nonprofit’s mission are again the top social donor generosity motivators, as we saw last year. The lesson for nonprofits is clear: donors will continue to give if they trust you and believe their money is being used effectively. It's essential to ensure that your giving platforms are easy to use and that your messaging highlights the tangible impact of donations in furthering your mission.

Younger and Diverse Donors Shine

During the pandemic, social giving surged as virtual campaigns became necessary and numerous. Today, social giving participation has returned to pre-pandemic levels, with 1 in 5 U.S. adults identifying as social donors. An important takeaway is that over half of social donors cited inclusivity and a welcoming atmosphere as key motivators this year—10 points higher than in the previous year. Younger, more diverse donors, who have come to expect intentional inclusivity as the standard, are leading the charge in keeping social giving strong.

Notably, Black and Hispanic donors over-index when it comes to social giving, making up 17% and 23% of social donors respectively, compared to 13% and 19% of the general population. Gen Z showed strong recovery in social giving, growing to 10% of the social donor pool while representing 8% of the general population of U.S. adults 18+. They’re the most likely social donor segment to participate in giving days, with 39% reporting to have done so. They’re also highly motivated by current issues, especially around human rights and social justice.

To appeal to these donors, nonprofits should focus on diversity, inclusion, and immediate impact. Plan campaigns around awareness days and giving events to leverage the urgency these groups respond to. Consider visiting local schools or colleges to engage younger audiences and creating planning committees that represent diverse communities. Engaging younger donors early and creating inclusive experiences will foster long-term relationships.

The Power of Auctions: Driving Loyalty and Recurring Giving

Auction donors are among the most loyal supporters of nonprofits, with 8-in-10 reporting they would attend another event for the same organization in the future. Not only are they engaged, but they’re also likely to deepen their involvement, with 83% indicating they are very or somewhat likely to convert to regular annual donors and 64% indicating the same about becoming monthly donors. This data highlights the significant opportunity auctions present for nonprofits to build long-term donor relationships.

They also highly value hearing about the impact of their generosity, with 63% rating hearing testimonials from people directly benefiting from an organization’s work as the most engaging aspect of their auction experience. However, less than half of the 100+ nonprofit professionals we also surveyed reported incorporating testimonials into their auction events. This gap highlights a crucial area for improvement, as sharing personal impact stories — in an ethical and responsible way with consent from beneficiaries — can deeply resonate with attendees and increase engagement.

There were interesting generational differences in preferences for frictionless giving at auctions. For example, Gen Z and Millennials place high importance on receiving outbid notifications (65%), having fixed-price or buy-it-now items available (61%), and receiving suggestions for similar items based on what they're bidding on (59%). In comparison, these features were rated significantly lower by Gen X and Boomers/Matures. To ensure younger donors are engaged and will return to your auctions, it’s worth investing in technology featuring these capabilities.

Younger Donors Value Innovation & Impact

Gen Z and Millennials are particularly attuned to nonprofits that demonstrate innovation and adaptability in addressing societal challenges. When planning your campaigns, demonstrating how your organization is achieving impact through novel approaches could be a successful way to encourage giving from this group.

Gen Z’s giving increased significantly, with their average annual donation total rising 34% over last year, from $864 to $1,115. This generation is driven by immediate impact, with 46% citing a current issue as the primary reason for their most recent donation.

For nonprofits looking to appeal to these tech-savvy donors, it’s also critical to embrace technology to simplify the giving process. For example, leveraging mobile wallets and digital payment options is crucial—50% of Gen Z and 36% of Millennials reported using digital wallets for their last social donation.

Ensuring Success

As the social donor landscape continues to evolve, nonprofits must stay attuned to the motivations driving generosity in order to build lasting relationships.

• Focus on transparency and impact, regularly sharing how donations are being used to further your mission.
• Create inclusive campaigns that resonate with younger and diverse donors by addressing urgent issues and showing adaptability in your approach.
• Prioritize ease of giving through seamless digital experiences, making sure your donation platforms are accessible, efficient, and engaging.

By embracing these strategies, nonprofits can attract, retain, and engage more social donors; deepen supporter loyalty; and drive continued generosity.

By Kaitlin Robb, Consultant and Director of Marketing, The Curtis Group

Now that fall is officially here, we have also officially entered a crucial time for nonprofits. According to most sources, nearly 30% of charitable giving happens in the last quarter of the year. Planning now can make an enormous difference between meeting and exceeding your year-end fundraising goals. Here is how you can set the stage for success and maximize your fundraising efforts before December 31.

1. Engage Donors Early: Don’t wait until the last minute to reach out to your supporters. In October, begin building momentum by sharing stories of impact and reminding donors of the difference their past support has made. Personal, heartfelt communication is key. Consider sending a series of emails or social media posts highlighting milestones and progress.

• • Tip: A simple “Thank you for being part of our story” can be a powerful start to
    your year-end communication strategy.

2. Make Your Ask Urgent and Specific: As November approaches, tie your asks to tangible outcomes. Donors are more likely to give when they see exactly where their donation will go. One of the biggest year-end giving mistakes you can make is assuming that last year’s gifts will be repeated, especially from your top donors. You must ask! Sitting down with your donors and prospects for specific in-person asks will:

• • Secure higher-level gifts, including multi-year commitments
  • Build meaningful relationships
  • Allow you to hear each supporter’s personal story as to why they support you
    and if they would be willing to help connect you to additional potential donors
  • Bottom line: If your strategy does not involve in-person meetings, you are
    leaving serious money on the table.

3. Ensure a Seamless Donor Experience: A smooth, easy-to-navigate donation process is essential, especially as the year-end rush begins. Review your website, email campaigns and social media pages to ensure that your “Donate” buttons are visible and working properly, everything is mobile-friendly and easy to navigate, and that you clearly articulate your organization’s mission-centered work and the critical role donations play in helping you meet your mission.

4. Get Your Board on Board: Make sure that year-end fundraising is on all the board meeting agendas, and make sure that each board member has been asked for a personally meaningful gift. The sense of urgency around year-end fundraising with concrete goals is an opportunity to encourage your board’s involvement in the fundraising process. Would they set up a tour, sign thank you letters, make calls? For more specifics, check out my colleague’s article on engaging your volunteers.

• • Tip: Add urgency and engage your board by asking several board members to
    pool their support to establish a matching-gift campaign that would double year-end donations.

5. Thank and Update Your Donors Regularly: After each donation, promptly thank your supporters with a personalized email, card or even a phone call. Let them know how their gift will be used and what kind of impact they can expect. This fosters a deeper connection and increases the likelihood of continued support throughout the year.

• • Donor loyalty: Consider sending a “Year in Review” in mid-December to
    showcase all that has been accomplished at your organization, thanks to donor
    support. It is a great way to encourage one last push before the end of the year!

6. Follow Up and Stay Engaged: After the year-end campaign, don’t forget to follow up with donors in January, beyond just the basic thank you letter. Acknowledging their generosity, as well as updating them on the impact of their contributions, sets the tone for ongoing engagement into the next year. For more tips on donor cultivation, check out our webinar on Building Lasting Relationships to Maximize Impact.

Start Now to Finish Strong.
The year-end fundraising season is your organization’s opportunity to close the year with maximum impact. By starting now, and engaging donors in October, you are setting the foundation for a successful campaign that drives donations and deepens relationships.

For 35 years, The Curtis Group has consulted with more than 250 nonprofits throughout the country, helping them raise a billion dollars. The Curtis Group is a member of The Giving Institute, the nation’s research and thought leader on philanthropy. Additionally, President Keith Curtis is a past chair of Giving USA Foundation and EVP and COO Wendy McGrady is current chair of the Foundation. Learn more www.thecurtisgroup.com.

By Wendy McGrady, Executive Vice President and Chief Operating Officer, The Curtis Group

I was in D.C. for the release of the Generosity Commission’s report at the end of September. Since then, I’ve been thinking:

1. With rare exception, the number of dollars and hours given to nonprofits has gone up, but the number of donors and volunteers has gone down. What is the impact of this trend on our larger society?
2. Why does it matter that there is “top heaviness” within the philanthropic giving landscape?
3. What can we all do to promote and celebrate generosity through our work and personal life?

Below is our high-level summary of their findings and recommendations, but I would encourage you to read the full report. And I would love to chat with you about these questions shaping our sector.

After years of research, focus groups and listening sessions throughout the philanthropic sector to consider the implications of the decline in participation in giving and volunteering by everyday donors, The Generosity Commission released its final report on September 17th.

The report, Everyday Actions, Extraordinary Potential: The Power of Giving and Volunteering, explores the reasons for this decline, celebrates generosity and everyday donors and volunteers as the backbone of our society, and asks what we should do about changes to the philanthropic landscape. According to the report, giving and volunteering:

• Affirm our commitment to meeting community needs and working together toward a larger purpose
• Foster social connectedness in a time when our nation faces “the epidemic of loneliness and isolation”
• Provide crucial support to nonprofits that have filled gaps in services not provided by the government or the market for at least a century
• Promote good physical and mental health

Yet, over the last 10 years there has been a 15.8% decrease in the number of households donating to nonprofits, and the pandemic resulted in a 25% decrease in people volunteering for nonprofits.

The pandemic certainly provided a logical reason for less volunteering and maybe even fewer donors, but pandemic levels of participation — in giving and volunteering — never recovered. Now, we are faced with a continuing trend of declining participation in these traditional expressions of generosity and the resulting decrease in diverse perspectives, social connection and the practice of civil engagement. These are important elements of living in community that we certainly don’t want to lose.

The Generosity Commission’s research shows:

• People have given and continue to give time, money, goods and expertise, but many of these expressions of generosity are beyond the scope of what has historically been counted as a donation.
• The last few decades have shown a clear decline in the share of American households that report donating to charitable organizations. In 2008, 65% of households reported donating to nonprofits; in 2018, that dropped below 50%. Nonprofits of all sizes have been impacted by this trend. However, smaller nonprofits, which make up most of the nonprofit sector (88% have a budget of $500,000 or less), have had an even more pronounced loss of donors and dollars.
• The total number of donors decreased during the pandemic while the average gift grew substantially: over 200%. Further, generosity during the pandemic raised our awareness about people giving in creative ways to support neighbors and communities by donating blood, advocating for policy or giving to a specific local need.
• The decline in donor participation has been concentrated within a few demographics, with level of education as the single strongest predictor of volunteering and age as the strongest predictor of giving.
• Social connectedness influences volunteering and giving — people who belong to one or more community groups are more likely to volunteer (by 14.3%) and give (by 8.6%). Further, volunteering and giving appear to increase the likelihood that adults vote in national elections when controlling for other factors.
• Public conversations about generosity are dominated by those who don’t represent everyday givers. Everyday givers don’t want to talk about their giving or be told how to give. However, they do want to know their gifts are making a difference and are willing to discuss their giving with those close to them if it inspires increased giving.

In addition to providing inspiring insights, the Commission made many recommendations that fall under four key action areas:

1. Research: Expand efforts to better understand diverse expressions of generosity.
2. Culture: Encourage leaders and public figures to share their experiences with generosity and infuse ideas, beliefs and norms about the benefits of giving and volunteering in art, music, education, media, etc.
3. Practice: Support community foundations to lead efforts that encourage giving and volunteering. Reinforce the importance of business leaders supporting giving and volunteerism in their organizations.
4. Policy: Promote local, state and federal policies that would incentivize giving and volunteering, such as charitable tax deductions, sufficient funding for the IRS Exempt Organizations division and state charity regulations, and simplified regulatory compliance.

To boil it all down, The Generosity Commission’s focus on the decline in participation is tied to a belief that a broad base of participation in giving and volunteering has an intrinsic social good that must be pursued and promoted. I believe they’ve got it right! We all need to do all we can to encourage, promote and recognize giving by everyday donors.

The report concludes, “So, we inhabit this shifting landscape of generosity with some apprehension at its transformed terrain, with resolve to cultivate it purposefully where we can, and with excitement about how it will continue to develop in the coming years. If this moment represents in any respect a crisis of generosity, then it is one that we can approach with resolve, and even with wonder at the opportunities that lie ahead.”

Let’s all do our part. How can you promote and celebrate generosity at all levels in your organization?  I’d love to hear your thoughts and ideas.  Email me at wendy@curtisgroupconsultants.com

By George Ruotolo, Chair & CEO, Ruotolo Associates

As some of you may know, my experience as a fundraising consultant dates back to the early 1970s. At that time, an integral part of fundraising in community, religious, and institutional organizations was the involvement and active utilization of volunteers. Their charge was to reach out to their fellow organization members and solicit their gifts for a capital campaign.

We have found 50 years later that much of this activity and behavior has disappeared. While it is said in many studies that volunteerism is increasing, I think the difference is that campaign committee members are open to a level of involvement in fundraising efforts, but they appear to abhor having to ask their friends or other potential donors for a gift.

Our role at one time was to provide training to these individuals, increasing their comfort level with the task of asking for a philanthropic gift.

There is an old adage in fundraising that “people give to people” as opposed to being solicited by Major Gift Officers or with consultants’ involvement. I believe it is a dynamic that we should not turn our backs on, but instead, look for more and creative ways to actively engage volunteers in the art of asking.

What we do at Ruotolo Associates is to adjust the actual process of the ask, by having volunteers involved in attending solicitations and affirming the campaign’s case, but not actually making the request, which can be done by a staff person, or in concert with a consultant. Also, we have used the written word as a replacement for the verbal ask by having the volunteer speak of the campaign’s needs and leave the prospect with a letter that stipulates the ask either specifically or in a range.

This does lighten the load of the volunteer to actually “make the ask”. It is hard to objectively evaluate how impactful the volunteer ask is, and I would encourage us all to not turn our backs on the importance of this solicitation strategy. I am sure there are many who will read this and think this is a tactic that should be long forgotten. I feel it is worth reenergizing this approach where the prospects can be motivated and encouraged by their friends, colleagues, and organization members.

By involving volunteers in the solicitation process, we tap into the power of peer-to-peer influence. Prospects are often more motivated and encouraged when approached by friends and fellow organization members. As we continue to evolve our fundraising techniques, let's not forget the value of personal connections and the unique role volunteers can play in driving successful campaigns.

By Daniel Stevens, Co-founder and COO, Windfall

Introduction: The nonprofit sector is on the cusp of a significant shift, driven by the so-called "Great Wealth Transfer." Over the coming decades, an estimated $84 trillion will be passed down from Baby Boomers to younger generations. This monumental transfer of wealth presents both opportunities and challenges for nonprofits. To successfully navigate this landscape, organizations must adapt their fundraising strategies, and artificial intelligence (AI) is poised to play a critical role. In this blog post, we'll explore how the Great Wealth Transfer will impact nonprofit fundraising and how AI can help organizations maximize their potential during this unprecedented period.

1. Understanding the Great Wealth Transfer

The Great Wealth Transfer will have two primary components:

1. Generational wealth transfer to heirs (estate inheritance) AND
2. Donations to charity

While the focus of our analysis in this post is on the first category, it's important to note that an estimated $6 trillion to $27 trillion of this transferred wealth could be donated to charity (according to Boston College's Center on Wealth and Philanthropy). For ultra-high net worth families, estate tax exemption amounts will significantly decline in 2026, so many wealthy families are either a) allocating more to charity or b) planning ahead and transferring wealth to the next generation in 2024-2025.

Implication for Nonprofits: To capitalize on this transfer, nonprofits need to understand the preferences and values of the emerging generation of donors. Organizations also need to maintain always-on data insights, as wealth transfer events will be hard to predict, and can only be picked up with an investment in continuous enrichment with recently refreshed data.  This topic was discussed in depth in Windfall’s recent Webinar on Fundraising During Economic Uncertainty.

2. The Changing Donor Landscape

As wealth changes hands, the donor landscape will evolve. Younger generations, who are digital natives, are more likely to engage with causes online and expect seamless, tech-savvy interactions with the organizations they support. They are also more inclined to use social media platforms to discover, vet, and share information about the causes they care about. Furthermore, they value experiences over transactions and are drawn to organizations that provide a sense of community and shared purpose.

It's important to note that younger generations may not necessarily align with their parents' philanthropic preferences when deciding where to direct their charitable giving. Unlike previous generations who may have followed in the philanthropic footsteps of their parents, Gen Xers and Millennials often choose to support causes that reflect their own personal values and passions. This generational shift underscores the need for nonprofits to not only understand the unique interests of younger donors but to apply AI and big data strategies to tease out signals that will allow these organizations to maintain relationships with the new generation of donors.

Implication for Nonprofits: Nonprofits must evolve to meet these expectations by enhancing their digital presence, utilizing social media effectively, and offering opportunities for meaningful engagement beyond financial contributions. This might include volunteer opportunities, events, and other forms of involvement that align with donors' interests and values.  Event teams should also leverage the power of data to inform strategies.

3. The Role of AI in Fundraising Strategy

As nonprofits navigate the Great Wealth Transfer, AI can help tailor fundraising strategies to the evolving donor landscape. Here’s how predictive AI and generative AI can be leveraged:

Use Cases for Predictive AI

• Donor Identification: Predictive AI analyzes donor behavior, giving patterns, and other 1st and 3rd party data, to identify high-potential donors within the younger generation. This allows nonprofits to prioritize outreach to individuals with the highest propensity to contribute at certain target levels (Windfall does this through bespoke Propensity to Give models).
  • Check out Windfall’s upcoming customer roundtable addressing how to operationalize prospecting efforts with big data.
• Predictive Audiences: Predictive AI can segment donors into specific audiences based on shared characteristics, behaviors, and giving potential. This allows nonprofits to target and personalize their messaging for each segment, improving the effectiveness of their campaigns.
• Proactive Donor Stewardship: Predictive AI can monitor donor engagement and alert organizations to potential signs of disengagement. This enables timely interventions to maintain relationships and encourage continued support.

Use Cases for Generative AI

• Generative Dossiers: AI can help organizations scale prospect research efforts. Predicated on a foundation of high-quality wealth screening and career data, LLM-generated dossiers can empower frontline fundraisers with the contextual information they need at scale.
• Personalized Communications: Generative AI can craft tailored content—such as emails, social media posts, and thank-you notes—that resonates with individual donors based on their unique preferences and values.
• Content Creation: Generative AI can automatically produce compelling campaign materials, including blog posts, social media updates, and visual content, ensuring consistency and relevance across all platforms.

For a deeper dive, check out our blog post on 5 Ways AI Empowers Nonprofit Fundraising Professionals.

4. Preparing for the Future

As the Great Wealth Transfer progresses, nonprofits must be proactive in adapting their fundraising strategies to meet the expectations of younger donors. This includes embracing digital transformation, leveraging AI tools, and cultivating a deep understanding of the values and motivations of the next generation of philanthropists.

Final Thoughts: The Great Wealth Transfer represents an unprecedented opportunity for nonprofits to adopt data driven fundraising strategies. By incorporating AI into fundraising strategies, organizations can gain valuable insights, engage donors on a deeper level, and create personalized experiences that resonate with a new generation of supporters. As we move into this new era of philanthropy, nonprofits that embrace AI and adapt to the evolving donor landscape will be best positioned to thrive.

By Mike Gianoni, President, CEO and Vice Chairman of the Board of Directors, Blackbaud

As the election season hits its stride, the spotlight has turned toward the role of government in improving our society and leading the path forward. In my discussions within the business community, this focus has largely touched on market stability, public-private partnerships, and regulatory frameworks.

However, I’d like to shift the conversation to an often-overlooked and undervalued form of collaboration—between businesses and nonprofits. While we may lack a catchy, household label like "public-private partnerships," the potential impact of scaling these efforts is significant and untapped.

I know this to be true anecdotally and professionally, as CEO of Blackbaud. Emerging trends and new data research are also now signaling promising tailwinds for this form of growth.

The Win-Win Mindset

For businesses, it’s simply good business to do more good. Partnerships with nonprofits and other social impact initiatives are one of the unique ways that businesses can drive positive change horizontally across their organizational needs. It deepens ties with communities, improves culture and motivation, and boosts brands. It also builds customer affinity and loyalty. In moments of sustained uncertainty–like we’ve been experiencing of late–corporate giving, volunteerism, and generosity are tried and true ways to improve an organization.

The benefits are clear for nonprofits as well, both for diversifying revenue streams and expanding ties to their local ecosystems. These relationships can prove a powerful source not just of revenue for a nonprofit, but of everyday volunteers and advocates for their cause, of which businesses are natural and prominent conveners through their access to wide bases of employees. For these reasons and more, corporate philanthropic giving is one of the fastest growing categories, with an average growth rate of 14.3% in the last five years according to Giving USA’s reporting.

Public Trust & The Emerging Opportunity

Many institutions in the U.S. are facing a legitimacy crisis, with the public’s trust declining in sectors like government, business, and the media. It’s a formidable challenge facing democracies across the globe.

Civil society and the social sector, on the other hand, have maintained steady credibility—although researchers observed a 7% decline from 2022 to 2023, before bouncing back in 2024. It ranks as the sector the public trusts the most, according to the Independent Sector.

This moment provides an opening for businesses and nonprofits to join forces to a much greater degree, filling the void in leadership that communities are calling for. Communities win when their organizations move forward with their shared values and commitments, embodied so well by cross-sector partnerships. Businesses are strengthened when civil society’s halo extends to them and their brands.

I see this every year across the United States and in my home of South Carolina, where Blackbaud is headquartered. We proudly stand alongside our partners like the International African American Museum in Charleston and the American Heart Association. Communities across the country know they can rely on institutions like these to be on the frontlines of progress and positive impact.

It’s Needed Now More Than Ever Before

The past half decade has indeed felt like a rollercoaster, both locally and globally. From the unprecedented disruption of the pandemic to its turbulent aftermath, some argue we’re in a moment of “polycrisis.”

Younger generations are particularly engaged and attuned to the need for prioritizing solutions, and we must listen and adapt. More than eight in ten Gen Zers report that they support nonprofit organizations or causes in some way, according to Blackbaud’s own research. When it comes to careers, 57% of Gen Zers also say that whether their workplace has a volunteering program is important to them.

A wider shift has also emerged across the giving landscape, with recent data finding that fewer Americans are making charitable contributions—despite overall giving rising year-over-year (in terms of total dollars). Research points to lingering economic uncertainty following the Great Recession, declining rates of religiosity, and new tax policies that disincentivize giving.

These warning signs have inspired the work of the Generosity Commission, which I proudly co-chair alongside Jane Wales and is a project of The Giving Institute and Giving USA Foundation.

***

There are indeed a number of challenges today preventing business-nonprofit collaborations from taking off. Unfavorable macroeconomic conditions and other external obstacles hamper growth. If “purpose” is not already a core part of a company’s culture, it can prove difficult to align with causes and advance win-wins.

I’ve been in tech and business for a long time and have seen how cycles like these can shift. It can feel like a moving target.

The underlying foundations for business-nonprofit collaboration, however, remain steady and favorable, and we must lean in more. Polling from the Association of Corporate Citizenship Professionals (ACCP) and YourCause from Blackbaud for example found that nearly three in four private sector leaders (71%) report an increase in demand for their impact to be measured, up from 54% the year prior.

In the business community, we must continue applying similar vigor to generosity and impact that we bestow on traditional business decisions. CEOs like myself must empower our teams and managers with the tools, data, and guidance to pursue opportunities with nonprofit partners, measure progress, and deepen impact. From the top down, leaders must foster a culture of generosity and collaboration that allows it to spread across all levels.

When we as businesses make it easy to participate in generosity—through employee workplace giving, volunteer partnership opportunities, and even alongside our consumers and purchasers—we are doing valuable work that lifts up all sectors and communities. Whether a company of twenty employees or twenty thousand plus, businesses can play a leading role.

In return, I invite our civil society partners to continue opening themselves up for partnership. To ask more of the private sector and be creative and open-minded in proposing initiatives.

In a few days, the Generosity Commission will release its much anticipated “Everyday Actions, Extraordinary Potential: The Power of Giving and Volunteering” report. The seminal message is that we all have a role to play—that we can scale generosity and reverse recent declines. Let’s start by committing to a new chapter in business-nonprofit collaboration.

By Dwayne Ashley, Founder and CEO, Bridge Philanthropic Consulting, LLC.

More than ever, recruiting top talent is essential to keeping our sector strong and vibrant for the future. Given the changes in our country’s demographics, the sector must align its recruitment goals to reflect the markets it serves. Particularly regarding Men of Color in fundraising. This disparity offers an opportunity for organizations to enrich their teams with diverse perspectives, experience and access to more talent. Over my 30 years of experience, my lived experience has provided me with a keen understanding of the reasons behind this underrepresentation, its impact, and some insights to address the recruit of more Men of Color.

Understanding the Representation Gap

Several factors influence the underrepresentation of Men of Color in fundraising:

1. Limited Exposure and Awareness:  Many Men of Color may not consider fundraising a viable career option due to limited exposure to the profession. Fundraising is often seen as a niche field and can feel inaccessible without visible role models.
2. Stereotypes and Misconceptions: The stereotype that fundraising is solely about "solicitation" can deter potential candidates who are unaware of the broader skill set required—such as strategic planning, cultivation, management, marketing and communications.
3. Systemic Barriers: structural barriers can affect both entry into the field and career advancement.
4. Non-Inclusive Hiring Practices: Updating hiring practices to ensure they address all demographics especially help to drive talent from Men of Color to apply for recruitment opportunities.

The Importance of Diversity in Fundraising

Diversity in fundraising is not just a matter of fairness or equity; it's also a strategic advantage. Diverse teams bring varied perspectives, which can enhance decision-making, foster innovation, and build stronger relationships with donors and communities. Specifically, increasing the representation of Men of Color in fundraising can help organizations:

• Connect with a Broader Range of Donors: A diverse team can engage more effectively with diverse donor bases, understanding and resonating with their unique experiences and motivations.
• Foster Inclusive Philanthropy: Men of Color in fundraising can help shape more inclusive philanthropic practices, ensuring that fundraising efforts reflect the values and priorities of a diverse society.
• Promote Organizational Equity: A diverse fundraising team promotes a culture of equity within the organization, demonstrating a commitment to inclusive practices across all areas of work.

Strategies for Recruiting More Men of Color into Fundraising

To address the gap and build a more inclusive profession, organizations can implement several strategies:

1. Increase Awareness and Outreach:

1. • Highlight Success Stories: Organizations should actively showcase the successes of Men of Color in fundraising through newsletters, blogs, webinars, and social media. Highlighting their achievements can inspire others to pursue a career in the field.

• • Partnerships with Educational Institutions: Collaborate with the Association of African American Development Officers, Historically Black Colleges and Universities (HBCUs), community colleges, and other educational institutions to promote fundraising as a career path. Offer workshops, guest lectures, and internships to provide students with firsthand experience.

2. Create Pathways and Opportunities:

1. • Mentorship Programs: Establish mentorship programs that connect aspiring fundraisers with experienced professionals. Mentorship helps build networks, provides guidance, and fosters a sense of professional belonging. One example is the program Ken Miller, an AADO Board Member, has developed to foster mentoring for Black Men in fundraising.

1. • Fellowship and Scholarship Programs: Develop fellowships or scholarships specifically for Men of Color interested in fundraising. These initiatives can help break down financial barriers and attract new talent to the industry.

3. Adopt Inclusive Hiring Practices:

1. • Diversify Recruitment Channels: Use diverse recruitment channels to reach potential candidates. Partner with organizations that focus on Men of Color such as the fraternities, civic organizations and local Men of Color professional networks.

1. • Inclusive Job Descriptions: Craft job descriptions that emphasize the wide range of skills needed in fundraising rather than focusing solely on technical competencies or experience in the field. Highlight the organization's commitment to diversity and inclusion.

4. Foster an Inclusive Work Environment:

1. • Cultural Competency Training: Provide ongoing cultural competency training for all staff to build an inclusive and welcoming workplace. Training should focus on understanding diverse perspectives and addressing unconscious bias.

1. • Employee Resource Groups (ERGs): Support the formation of ERGs for Men of Color employees and other underrepresented groups. ERGs can provide a platform for networking, professional development, and advocating for organizational change.

5. Build Stronger Community Connections:

1. • Engage with Black, Indigenous, People of Color Communities (BIPOC): Develop authentic relationships with BIPOC communities and organizations. Being present at community events, supporting community-led initiatives, and listening to community needs can build trust and open doors to potential candidates.

6. Leverage Data and Accountability:

1. • Set Diversity Goals: Set specific, measurable goals for diversity in recruitment and retention. Use data to track progress and hold leadership accountable for achieving these goals.

1. • Regularly Assess and Improve: Continuously assess the effectiveness of diversity initiatives and make improvements based on feedback and data. This iterative approach ensures that strategies remain relevant and practical.

Addressing Systemic Barriers

To successfully recruit and retain more Men of Color in fundraising, it's essential to address systemic barriers within organizations and the broader sector:

• Challenge Implicit Bias: Organizations must actively challenge implicit biases in hiring, promotion, and everyday workplace interactions. This requires a commitment to ongoing education and training for all staff, particularly those in leadership positions.
• Ensure Equitable Compensation: Compensation practices must be fair and equitable across all demographics. Regular compensation audits can help identify and address any disparities that may exist.
• Promote Inclusive Leadership: Leadership must be committed to diversity and inclusion, modeling inclusive behaviors and holding themselves and their teams accountable for creating an equitable work environment.

The Role of Leadership

Leadership plays a crucial role in driving diversity and inclusion efforts. Leaders must be champions of change, setting the tone for an inclusive culture and demonstrating commitment through actions and decisions. This includes:

• Leading by Example: Leaders should be vocal advocates for diversity in hiring and promotion, demonstrating a genuine commitment to cultivating a workplace that embraces diversity and inclusion.
• Building a Diverse Leadership Team: Prioritize diversity in leadership roles within fundraising teams and across the organization. A diverse leadership team brings varied perspectives, driving innovation and better decision-making.
• Investing in Professional Development: Provide access to training, mentorship, and leadership development programs that prepare Men of Color for senior roles within the organization. Supporting professional development reflects a dedication to their growth and success.

Recruiting more Men of Color into fundraising is not just a matter of diversity for diversity's sake; it is about recognizing the value that diverse perspectives bring to the profession and the organizations it serves. Organizations can build a more vibrant and impactful fundraising profession by implementing strategies to enhance visibility, promote inclusive practices, and foster a supportive culture.

The journey toward a more inclusive fundraising sector requires intentional effort and commitment from all stakeholders. By embracing diversity as a strength and actively working to address barriers, we can build a profession that reflects the rich diversity of the communities we serve and is better equipped to achieve meaningful impact.

By Kevin Smyrl, Associate Partner, Alexander Haas

Are you tired of hearing about AI and how it’s going to change literally everything that we do every day? I certainly am.

I’ve always considered myself somewhat of an early adopter when it comes to technology. I’ve had Palm Pilots, Blackberrys, iPhones, iPads, Kindles, etc., all within the first iteration or two being released. I’ve also either adopted or tried to adopt any number of software products to help with productivity…think Evernote, OneNote, Outlook, MS Project, and many, many productivity programs, philosophies, and systems.

Now, social media is something I never got into. I realize the reach of social media is unmatched, but I’m half a century old now, so the worlds of Facespace, SnapSlap, InstaPic, Tick Tack, and others will not miss me, and I certainly don’t feel I need them. Amazingly, these devices, apps, and programs all have a couple of things in common. First, they are TOOLS. These tools can no doubt be very effective in helping us do our work as fundraisers and non-profit leaders. Second, not even one of these tools DOES THE WORK FOR US. It still takes a human being to set up and use the tool in the best possible way to work properly.

Enter Artificial Intelligence. Suddenly, this can do the work for us. A.I. can tell us when to call our donors, when to follow up after a conversation, and what specifically to ask the donor about based on our prior conversations—all without prompting from a human. It can write your emails, social media posts and even script phone calls. Among many other things, it can even write this column if I get a little lazy.

THIS IS HUGE!!!

As the world grapples with AI and how it will change virtually everything we do in our collective work, I believe it is still just a tool—an amazing, efficient, perhaps life-changing tool—that we must embrace and learn to deploy strategically. It might even help one write a column for a newsletter when one has trouble getting started (although not in this case…honestly).

Our work, the work of connecting donors and volunteers to organizations and causes they are passionate about, is at its core a business about people, human beings. Our work has always been, is today, and forever will be a relationship business. You’ve no doubt heard this many times, but it cannot be overstated.

I’ve seen some thank you notes written by A.I. and I’ve received some notes clearly written by a robot.  “Danger Will Robinson” (showing my age again). There is no replacement for that handwritten note or personal email to say thank you for your gift. No replacement for that phone call and invitation to lunch. And certainly, there is no replacement for that face-to-face meeting to learn more about those who support your cause and physically see their reaction to new ideas and priorities.

Most of us still cherish that phone call from a friend or colleague. We read the personal notes we receive. We still write on paper. We cash the paper checks mom sends on our birthday. I’m willing to bet many of us still read paper books; I do (again, my age?). In the end, it’s the IMPACT that really matters. The impact your organization has on humanity and the impact a donor or volunteer has on your organization.

I’m not hating Artificial Intelligence; we should embrace it and its many possibilities. Let the tool help you establish a communication cadence with your constituents, help you through a moment of writer’s block, or prompt you to send that email checking in on your top donor or volunteer. Just remember, A.I. can’t deliver impact. Stay in charge of the relationship, human to human. If we don’t, then I fear Sky Net will become self-aware (circa 1984).

By Chad Paris, Partner & CEO, Parisleaf

Like many, today’s fundraising leaders face unprecedented challenges and opportunities. As we transition into a new era marked by shifting generations, donor priorities. and technological advancements, it is critical that leaders adapt.

Over the past year, I have visited some of the leading fundraising shops in the country and met with some of the brightest minds in the field to learn about their experiences and how they’re adapting. Drawing on these recent insights on leading practices, and from the Giving Institute’s March Meeting, this article outlines some of these insights for successful fundraising, and leadership, in today's dynamic environment.

Impact > Dollars-Raised

An ongoing shift is the emphasis on Impact rather than merely the amount of money raised in a campaign. Donors are keen to see how their contributions can make a difference. Leaders should focus on communicating the real-world impact of their fundraising efforts, showcasing success stories and measurable results to foster deeper donor engagement. A Dollars-raised focus makes many donors feel like their support can have little to no effect. Transparent reporting on the outcomes and successes funded by philanthropic support lends credibility and trust. Dollars-raised is great for a few things: for the internal team to know where the goal post is (and to pad their resumé) and for mega-donors to know that your organization has a sophisticated enough palette to handle their philanthropic support.

Cause > Institution

Donors today are more Cause and Impact-focused, motivated by the impact their contributions can make, rather than the name brand of any organization they support. Fundraising leaders must align strategies and messaging to highlight how contributions directly advance a cause, demonstrating tangible outcomes and stories of change. This approach not only resonates more with donors but also builds a stronger emotional connection to the cause. A book could be written on this.

Authenticity > Differentation

We are in a differentiation-obsessed world, but authenticity has become a cornerstone of effective fundraising and something the world is craving, overall. It isn’t a coincidence that ‘Authenticity’ is Merriam-Webster’s Word of the Year. Since the advent of social media, authenticity has taken a leading role. It’s not that differentiation doesn’t matter, it’s what we lead with. Authenticity is the hook, differentiation is the line and sinker. Fortune 500 companies understand this better than most - look to their taglines. Nike lives “Just Do it” as part of their DNA, as does Apple with “Think Different”. Donors (and employees) seek genuine connection and transparency from organizations and their respective leaders. By fostering an environment of authenticity, leaders can build lasting relationships based on trust. This means being honest about both successes and failures. This involves open communication, sharing both achievements and areas needing improvement, and maintaining a consistent, honest narrative.

The Great Wealth Transfer

Books need to be written on this. The ongoing transfer of wealth from older generations to younger ones presents a unique opportunity. Recent projections I’ve come across range from $70T-$140T, of which one-third is projected to come in through philanthropic support. This has the potential to 3x-6x our industry. This demographic shift calls for strategies for a more dynamic donor-base of older as well as their younger counterparts. These younger donors have different values and expectations. Surprisingly, the pendulum is swinging back from Digital back to human-to-human, in-person connections for younger generations. Fundraising leaders need to understand the motivations of these young donors and tailor their approaches, emphasizing global, social causes that resonate with them like global warming, war, famine, systemic racism, women’s reproductive rights, and democracy.

Donors Partners

“Creating a safe space” was an interesting insight presented during the Giving Institute Meeting this past March. Not many heard it, but this is critical. We need to align with donor needs, concerns, and motivations, and ensure they feel valued and respected. As one of the top fundraisers in the country recently told me, “I did well in fundraising because I never treated Billionaires any differently.” A shift in perspective from seeing donors as mere benefactors to recognizing them as partners in the mission is essential. This partnership approach fosters a shared sense of purpose and collaboration. Leaders should engage donors in meaningful ways, involving them in the ideating, and decision-making processes and acknowledging their contributions beyond financial support. Bring them along for the ride. Leaders should foster an inclusive environment where donors feel comfortable expressing their opinions and feedback.

Balancing Creativity and Politics

I’m not sure this is something new, but as the years go on, I’m realizing how much of an art form politicking is. Fundraising is as much about creativity and innovation as it is about navigating the political landscape. Leaders need to love politics because Politics = People. Leaders must balance fundraising targets, talent, and innovation with slowing down and leaning into political dynamics. This involves seeing the bigger picture, being politically astute, building alliances, and fostering collaborative environments to drive successful campaigns. This also goes back to the last point - treating people as partners. Again, bring people along.

Fundraising Campaigns as Branding Campaigns

When you’re a hammer, everything looks like a nail (written by the CEO of a Fundraising Campaign Branding Agency). That said, some of the greatest minds in this field have shared with me that fundraising campaigns are essentially large marketing (branding) campaigns. It’s branding that helps foster impact and a successful campaign. A strong, cohesive brand message that everyone can get behind and that resonates with donors can elevate the entire fundraising operation. Leaders should ensure that their fundraising campaigns align with the organization's overall brand strategy, creating a unified and compelling narrative that attracts and retains donors. As a favorite fundraising consultant of mine talks about, “Getting everyone to sing from the same songbook.” Consistency and clarity is key. Brand with authenticity as the leading role.

By Mauria Brough, President, Advancement Resources

Growing Challenges for Nonprofits

If you are a manager, anywhere in any profession, you know that finding people to hire is becoming more and more challenging. Throw in the nuances of development work and the “keep everybody happy” tightrope advancement professionals traverse daily, along with a dash of post-pandemic malaise and a sprinkle of our divided and divisive society in the mix, and you have the perfect recipe for workplace woes. But, it doesn’t have to be that way. Here are five strategies you can implement right now to nix the negativity in your shop.

First, let’s get a better understanding of the demographics of our workplace. You aren’t imagining that hiring is getting more difficult—it is more difficult. That’s because the number of workers available is shrinking in number while job opportunities are growing. Our newest hires are younger and more diverse, with 51% between the ages of 25–44. Boomers are retiring en masse, and those younger employees are having to step into managerial positions earlier than their Boomer and Gen X counterparts, causing a lot of stress and anxiety. This particular cohort of the workforce has higher expectations for psychological safety at work, expecting to participate in all aspects of your shop wholly without fearing repercussions. They don’t mind blurring the line between work and their personal life, and you can expect them to bring their whole selves to work, wonder and warts included.

Contrast the typical make-up of today’s workplace with that of today’s board. Even though they are slowly diversifying, boards are nearly 84% white and 65% male, with nearly two-thirds between the ages of 50–69. They have higher expectations for being able to influence or control what’s happening in the organizations they serve, and they appreciate a firm separation in their work-life balance. Because of that, it’s not surprising that they will participate remotely but prefer meeting face-to-face.

Polarizing world events can further divide organizations. Rather than engaging in open communication with people who hold different points of view, people generally prefer to stay firmly entrenched in their opinions. They seek out news sources that support, rather than challenge their thoughts, and quickly condemn those who see the world differently. Of course, AI and social media make this easier than ever before.

Given this complicated state of affairs, you might be tempted to throw up your hands in despair of ever being able to create a positive workplace culture. Despair not. Together with Alisa Robertson, President and Chief Advancement Officer of the Wisconsin Foundation & Alumni Association, and Matt White, the Vice President of Advancement and President of the Utah State University Foundation, we came up with five key strategies to create and maintain a positive professional workplace culture.

1. Establish clear values, code of conduct, policies, and procedures.

You’re going to need a foundation on which to build. Your workplace values, including clear directives about conduct and procedures, will make that foundation strong. Infuse these values into the life of your shop. Share them with applicants during the interview process and with those contemplating serving on your board, so there are no surprises later when the “fit” is not right. Make them visible—post them in public spaces, provide employees with a copy they can display in their workspaces, put them on every meeting agenda, and integrate them into your performance management process.

While selecting and living out the core values of your organization is serious business, you can make them fun, which helps further embed them into your office culture. Here at Advancement Resources, we take a moment at the end of our weekly company meetings to “drive” the Love Bus—a toy replica of a VW bus that our CEO picked up in an airport gift shop—to the desk of a team member who clearly demonstrated our core values during the previous week.

As you are crafting and refining your values and policies, be mindful that they align with federal and state legislation.

2. Provide training and support for foundation employees.

Onboarding is only the beginning. Training should continue throughout the employee’s life cycle and include a variety of methods—from formal workshops and courses to mentoring and informal networking opportunities. Build confidence for all members of your team by giving them the space and opportunity to practice through scenarios and examples of appropriate language to use.

Because of Title IV and other governmental mandates, many organizations spend a lot of time addressing what is and isn’t appropriate internally. Advancement work is unique in that it requires team members to build professional relationships often in settings outside an office with people who aren’t employees. Be sure your team members know that their safety is your organization’s top priority in all work-related environments. Support practices that reduce risk, such as team visits and meetings in public places during regular work hours and provide clear direction in addressing situations that challenge their safety.

3. Equip supervisors with tools for success.

Remember, our team members are often stepping into management and leadership roles earlier than ever. When one of their direct reports encounters a problem, the manager is going to be the first to hear about it. In addition to making your supervisors aware of their mandatory reporting responsibilities and procedures for harassment, prepare them to be the first line of response when challenging situations arise that don’t cross legal boundaries. Put empathy and deep listening at the center of that training, and build their confidence through scenarios, role-playing, and examples of appropriate language.

4. Extend assistance to trustees, board members, and volunteers.

Bridge the generational gap by making sure that all your volunteers know their role in upholding organizational values and modeling positive professionalism. Offer training that helps define what their relationships should look like with foundation employees, their fellow volunteers, and other constituents. When volunteers work in a public-facing role, they may have to answer difficult questions, deal with constituents who don’t share their personal beliefs, or even manage inappropriate behavior. They, too, will benefit from practice using examples of appropriate language in different scenarios—and they’re often surprised to learn about some of the real situations that advancement professionals encounter in their work.

5. Follow through on situations that arise.

This is the tough part. You have to walk the talk. You’ve spent a lot of time crafting core values, policies, and procedures. Use them to navigate challenging situations and rely on them to make the hard decisions. You may need a team member or a board member to enroll in disciplinary training or to change the nature of their relationship with the organization for the greater good. As difficult as this might be, failing to do so can chip away at morale and foster the negativity you’ve worked so diligently to eliminate.

Of course, having clear values and a code of conduct will not solve every problem you might encounter in your workplace, but they will provide a roadmap for how to react in a positive, professional manner. They will be the firm foundation on which you can do the important work of advancing your organization in a complicated world.

By Mary Whitrow, Content Marketing Manager, Kindsight

Growing Challenges for Nonprofits

Nonprofits today face stiff competition for donor attention. Since 2000, the number of nonprofits has increased^[1], but giving by individuals (adjusted for inflation) has decreased^[2]. With more organizations vying for fewer donors, standing out is crucial.

Adding to the challenge, the demographics of donors is shifting. They’re getting younger and more digital-savvy, requiring new engagement strategies.While giving among Generation X and Boomers has decreased (-4% and -12% respectively), Millennial household giving has surged by over 40% between 2016 and 2022^[3]. Additionally, 54% of Millennials say they would give more if approached in modern ways^[4]. This signals a need for innovative, digital-first engagement strategies.

Lastly, trust in nonprofits is also at an all-time low. And with donor retention rates at a historic low of 30%^[5], it’s clear that traditional methods are not keeping up with the times.

The Fundraising Blindspot

In light of these changing trends, one of the biggest hurdles for nonprofits is the "Fundraising Blindspot”. Many organizations struggle with siloed data, poor targeting, and a lack of personalization because they are using old fundraising methods. This often leads to ineffective fundraising efforts and missed opportunities.

Adapting to the New Philanthropic Landscape

So, what should fundraisers or prospect researchers do about it? How can you adapt? The first step is to embrace how technology can help you gain an edge and transform the way donors are found, contacted, and relationships are built.

Picture a world where you can meet these challenges head-on, engaging donors in a more specialized, personalized way. Imagine having tools to automate some of your daily actions and guide your team on others. Instead of spending hours finding accurate information on your donors, you could have up-to-date, verified information at your fingertips. What if you could easily find new prospects that resemble your ideal donors without exhausting your network? What if you could share actionable insights with your team in real-time?

So, what’s the answer? Modern Fundraising Intelligence.

Fundraising Intelligence leverages big data, artificial intelligence (AI), and automation to revolutionize modern fundraising efforts. It combines comprehensive CRM systems with rich data and insights, and revolutionary AI-based content creation to help nonprofits discover, engage, and steward donors more efficiently and effectively.

Think about holistic software platforms like HubSpot and Salesforce in the for-profit world. These tools are not just about managing data; they hypercharge efficiency and fuel strategic decision-making. Nonprofits can leverage similar tools to streamline operations and enhance donor engagement, helping them navigate an increasingly challenging environment.

Components of Modern Fundraising Intelligence:

Big Data: Provides vast amounts of internal and external information and insights.

Automation: Triggers actions or takes action on your behalf.

AI: Predicts behavior and generates content for you.

Utilizing these tools allows you to make a bigger impact, build meaningful relationships with donors, and ultimately raise more support more efficiently.

The Power of Fundraising Intelligence: A Personalized Stewardship Use Case

Everyone dreams of discovering a treasure trove of hidden gems in their donor database—individuals with untapped potential, ready to be engaged. With Fundraising Intelligence, this isn't just a dream; it's a reality. So how can you leverage AI to identify high-potential donors and create personalized engagement plans?

Step 1: Identify Hidden Gems

First, harness the power of AI to dig deep into your database. AI will comb through both first and third-party data to identify hidden gems—donors with untapped potential. These might be people who have made modest donations in the past but have the capacity to give much more. Since the data is in real-time, you can trust it is up-to-date.

Step 2: Draft Personalized Stewardship Strategies

Once you've identified your hidden gems, use generative AI to craft personalized stewardship strategies for each one, based on their profiles. Imagine having an AI assistant that knows exactly what each donor cares about and can draft a strategy that resonates with their unique interests and giving history. This isn't just a generic plan; it's a tailor-made approach that speaks directly to the donor’s passions and motivations.

Step 3: Seamless Integration with CRM

Next, push these personalized plans directly into your CRM. The AI not only drafts the strategies but also creates the necessary tasks to execute them. This means that the actions needed to engage these donors—whether it's sending a personalized email, making a phone call, or setting up a meeting—are automatically scheduled and assigned to the appropriate team members.

Step 4: Personalized Communications

Imagine opening your CRM to find a personalized email already drafted for each of your hidden gems. These emails are ready for a quick review and send, making your job easier and ensuring that each communication feels thoughtful and personal. The AI has considered all available data to draft messages that will resonate deeply with each donor.

Step 5: Effective Follow-Up Calls

Not only are emails prepared, but the AI also provides preset call scripts tailored for more effective communication. When you pick up the phone to call a high-potential donor, you have a script that highlights key points of interest and previous engagement history, ensuring that your call is impactful and engaging.

Step 6: Real-Time Evaluation and Adjustment

As new data comes in—perhaps a donor attends an event or makes a small donation—AI continuously evaluates their potential and adjusts the stewardship strategy accordingly. This real-time approach ensures that you’re always engaging donors in the most effective way possible, maximizing their potential and fostering deeper relationships.

Bringing It All Together

By leveraging AI and Fundraising Intelligence, you transform your approach to donor engagement. You move from a one-size-fits-all strategy to a highly personalized stewardship plan that recognizes the unique potential of each donor. This approach not only saves you time but also enhances your ability to connect with donors meaningfully, ultimately driving greater support for your cause.

The Way Forward

The philanthropic landscape is changing, but you can change with it. With Fundraising Intelligence, you can go beyond internal data and wholly understand your prospects and donors on a deep level. Engage with them in a way that resonates, foster stronger relationships, and improve efficiency. Big data, AI, and automation don’t have to be intimidating. With some fresh thinking, they can be your saving grace in a fast-changing world.

^[1] https://www.irs.gov/statistics/soi-tax-stats-tax-exempt-organizations-and-nonexempt-charitable-trusts-irs-data-book-table-14
^[2] https://givingusa.org/
^[3] https://www.ccsfundraising.com/insights/philanthropiclandscape/
^[4] https://charityvillage.com/how-technology-can-help-your-nonprofit-attract-a-new-generation-of-donors/
^[5] https://data.givingtuesday.org/fep-report/

By Alexis Cooke, Chief Operations Officer, Alford Group

By Lieve Hendren, CFRE, Senior Consultant and Director of Strategic Initiatives, Alford Group

By Thandi Cai, Senior Marketing Associate, Alford Group

In the world of nonprofit fundraising campaigns, community-centric and donor-centric approaches are often considered as either-or methodologies. Community foundations defy this perceived binary: they are uniquely positioned to activate both models, and doing so strengthens their impact in communities. The benefit is that this change satisfies the need for an internal shift from reactive to proactive fundraising strategies. Alford Group shares recommendations for 4 key ideas that community foundations should consider and implement to effectively prepare for a campaign.

Alford Group has been privileged to partner with a variety of community foundations in recent years. In March 2024, in partnership with AdNet’s Annual Conference, we conducted a survey of 55 participating community foundations seeking to define the state of community foundation campaigns.

Our experience and findings validate that the most successful community foundation campaigns are a balance between community-centered and informed strategies and donor-centric fundraising practices.

#1 From crisis to community: the value of being community-informed and donor-centric

Over the past five years, 47% of the community foundations surveyed conducted a campaign guided by strategic priorities, crisis response and social justice/equity initiatives. This aligns with the central issues facing our communities since 2019 and underscores that community foundations have been leading their communities’ rapid response support for local racial equity, social justice and COVID-19 pandemic-related programs and services. Leveraging their role as a convener and community leader, community foundations were able to create new opportunities to engage and educate donors, fundholders and community members, reminding them that they can and should give to and through their community foundations for immediate impact.

Following the surge in crisis and rapid response, many community foundations sought to reaffirm their strategic direction. Remarkably, 84% of participating community foundations are in a current strategic plan, which Alford Group believes is more important than ever. Community foundations seek to impact and support human services, education and social justice initiatives as top issues facing their communities. However, survey participants reported that only 57% have conducted listening tours to inform strategic priorities and response to these issues.

Participating community foundations shared with us a shift in strategic priorities from crisis and social justice response to strategic priorities guided by and informed by the community, community grantmaking and growing the invested asset base.

Additionally, many community foundations are considering or launching a campaign right now. Of the community foundations surveyed that did not conduct a campaign over the past five years, 64% intend to do so in the coming five years.

73% of these campaigns will be defined as comprehensive or both designated and comprehensive (meaning funds raised will both be designed to support goals strategically aligned to foundation directed priorities and/or a specific community goal or initiative).

Despite how frequently community-centric and donor-centric approaches are seen as mutually exclusive, community foundations are in the perfect entity to employ both simultaneously. By doing so, they can enhance their impact while fostering an essential internal transition from reactive to proactive fundraising strategies. This dual approach not only broadens their reach but also solidifies their ability to support and sustain community initiatives more effectively.

There are four primary benefits to aligning community-informed strategic direction with donor-centric relationship building activities:

1. Reinforced role as a trusted community partner through an aligned vision with established measurable outcomes and needs informed by the community
2. Raised profile and bolstered reputation with trust from the foundation’s closest donors, community members and leadership volunteers
3. Leveled up cultivation and stewardship practices that invite donors and fundholders to join the foundation’s efforts as partners and co-investors
4. Energized staff and volunteer leaders serving as ambassadors connecting community with philanthropy, directly supporting fundraising asks and activities

#2: How to create a community-informed vision and fundraising strategy

When validating the feasibility of a potential campaign, it’s important to hear that stakeholders positively perceive the foundation’s image and reputation. Community foundation donors see themselves as partners and co-investors. Trust, transparency, high visibility and impact in the community are deeply important to them. Alford Group often hears from donors in our conversations that community listening work is one of the top reasons they get involved in a community foundation campaign. Not only that, but donor predisposition is significantly altered by their understanding of and alignment with campaign impact, purpose and defined measurable outcomes.

To re-align strategic priorities and re-affirm vision and outcomes for a community, we strongly recommend centering community voice in the planning processes and creating multi-year strategies to address community priorities. To accelerate campaign planning, community foundations should:

• Conduct listening tours. Community foundations can embrace their role as a leader and convener that listens, understands and addresses major, current and future community needs. Community foundations interested in a campaign should consider shifting their internal narrative from “why invest in our community foundation” to “why invest in our region.”
• Define specific community outcomes within the campaign priorities. The primary value proposition of a community foundation is the interconnectedness of the information that staff has about the community and ongoing projects and discussions, and if applicable, foundations can directly connect the campaign components and target goals with community outcomes.
• Articulate measurable outcomes. If appropriate, define grantmaking outcomes with impact measures. The single most common recommendation Alford Group provides community foundations is to ensure their desired impact is measurable, whether that is quantifiable or qualitative. Foundations should be ready to articulate what success looks like, how to know when the need has been met (or is being met effectively), etc.

Community members often expect community foundations to be both a pillar of the community and to be nimble, modern and adaptive, and this is why strategic visioning is crucial. It’s also why campaigns are about so much more than raising money. Community-informed strategic visioning work can be both reactive and long-term, and only community foundations can do that.

Once the foundation has established a solid strategic plan, it’s important to continue building on that energy. Get loud and celebrate the priorities stated with the help of community input. To bolster their image and reputation, community foundations can:

• Embrace their role as a driver accelerating generosity across the region, thereby creating more impact and activate clear, transparently shared reporting.
• Educate prospective donors and fundholders on philanthropic services and impact, and on community knowledge and grantmaking.
• Educate board, volunteer leadership, community members and local philanthropic advisors to support expansion of the foundation’s network.
• Define campaign goals more broadly, focused on more general community driven programmatic and conceptual goals.
• Raise their profile through regional event presence and participation.

#3: How community foundations can sustainably cultivate donors

Though community foundations are relying on traditional methods of communication to share their impact and work (including but not limited to annual or investment reports, newsletters and social media), the survey indicated there has not been enough investment in proactive fundraising practices that center people and quality contacts. This work is relationship-driven, and Alford Group can’t emphasize enough the importance of aligning cultivation efforts with fundraising best practices ahead of a campaign.

Donors may see the community foundation as an exceptional philanthropic solution provider that amplifies their philanthropic impact. One way to begin cultivating those donors is by having conversations, as a point of entry, around what kind of philanthropic solutions they need. Most nonprofits have a focused, directed conversation about giving to their nonprofit. Community foundations can offer a multi-lane impact journey to their donors and fundholders, inviting them to give not just to the foundation, but also with and through the foundation.

There is greater success when community foundations do not prescribe the giving vehicle, but instead open the doors to a donor as part of a campaign. Cultivating donors is key to achieving campaign fundraising goals, but it’s so much bigger than that. Community foundations can convene conversations around collective giving! Don’t be afraid to have these courageous conversations with donors: They are aligning their giving with their dream for the community.

Donors have higher expectations for cultivation from community foundations, and the cultivation cycle takes longer compared to the average nonprofit. Because Alford Group often sees that the top 20 prospects will fund the entire first phase of a community foundation campaign, investment in fundraising resources and bolstering staff capacity is justified ahead of launching a campaign.

#4: How to prepare internally for launching a campaign

It is not uncommon for community foundation teams to operate in silos, or for staff to not be aligned to the foundation’s values and vision. The average rating for strength of internal alignment on vision was a 70 amongst those who participated in the survey (on a scale of 1 to 100). This stands out because in Alford Group’s feasibility studies, we’re looking for an 85% rating from outside stakeholders on their perception of vision alignment. When the internal rating is low, stakeholders and community members feel this disconnect.

In addition to shoring up cultivation and stewardship activities to support relationship building efforts, we strongly advise that community foundations activate the strategies mentioned above, which will help mitigate the pressure on fundraisers and philanthropic advisors. As fundraising consultants, we consistently hear overwhelm from the development team trying to manage the start of the campaign when fundraising has not kicked into gear, and they are working so hard on their business-as-usual goals.

To level up cultivation efforts and activate the internal change management needed to effectively prepare for campaign fundraising, Alford group recommends community foundations take the following actions:

• Audit infrastructure. Survey the systems of cultivation and invest in long-term relationship building. This includes but is not limited to moves management-related principles, staffing capacity and structure, policies and procedures, data record keeping and reporting, and stewardship practices and templates.
• Create a relationship action plan. Qualify and organize identified board, donor, fundholder and prospective relationships assigned to appropriate staff members and create relationship action plans that detail out six to 24 months’ worth of cultivation activities informed by their values and giving priorities.
• Embrace donors as co-investors and partners. Validate donor’s intentions, intelligence and community work by creating a menu of giving opportunities that offer several different ways to get involved in the campaign aligned to their values and giving priorities.
• Actively welcome family philanthropy. Invite families in for philanthropic service discussions and/or invite family foundations to transition to a fund. Steward multiple relationships with families to prepare for intergenerational wealth transfer.
• Be open to new ways of giving. Welcome direct and indirect gifts and donor-directed giving vehicles, in addition to those most desired, and consider ‘bundled’ asks of donors and fundholders. Offer non-endowed DAFs as a giving vehicle that successfully attracts new donors.
• Engage all appropriate staff. Specifically engage community impact, programs, philanthropic advisors and others in relationship building activities and prospect strategy; provide trainings and workshops; enable cross-department information sharing and ensure all staff are hearing fundraising/development progress updates to expand visibility across the community foundation team.
• Prepare and energize leadership to serve as ambassadors. Prioritize the value of prospective donors hearing their peers share: “Why this campaign is so meaningful for the region, and this is why I am making a transformational gift”, or “This is why I/my family hold(s) my fund here.” Activate, engage and train leadership and an intentionally curated group of volunteer ambassadors who feel comfortable discussing their philanthropy with their peers.

Conclusion

As a community foundation embarks on a campaign planning journey, they are often embracing a deeper internal change management process. With a community-centered and informed vision and donor-centric, relationship-centered fundraising approach, everyone is invited. Community foundations can share both the power of philanthropy through, with and to the community foundation and how the community foundation is advancing community informed, community centered impact.