Five Important Fundraising Trends to Look Out For in 2021

Fundraising has become more challenging in the pandemic era, but at the same time, there’s more sympathy and support for causes. Another undercurrent that affects fundraising is the changing relationship between non-profit organizations and business partnerships. Understanding these trends and speaking with your insurance agent can help reduce fundraising pressures.

Here are five important fundraising trends to look for in 2021.

  1. Growing Interest in Virtual Events

After the pandemic led to the shutdown of countless public events, many organizations began shifting to live online streaming events. Various social media platforms and apps make it possible to hold webinars, online trade shows, and artistic performances on the internet. Zoom has been one of the most popular apps of 2020 for bringing groups of people together.

Upaya Social Ventures was able to benefit from a virtual event with less than a week of planning in 2020, raising $283,000. Making the transition from physical to virtual events can pay off in many ways, particularly by cutting costs for venue rental and travel for participants. The internet allows organizations to be free of geographic restrictions while simultaneously reaching a wider audience.

  1. Increased Focus on Recurring Donors

Non-profit organizations are creating more predictable revenue streams by tapping into recurring donors. People who give to a cause once are usually open to giving again. The pandemic has raised widespread awareness that money is needed to tackle social issues and fundraising is necessary to secure that money. Donors who give to causes that are focused on curing social problems are the most likely to give on a regular basis. According to The State of Modern Philanthropy 2020, recurring revenue accounts for over a quarter of the income collected by fundraising firms that raise over $50 million in donations.

  1. More Engagement Between Non-profit and Commercial Entities

Prior to the pandemic, non-profit organizations were already working increasingly closer with commercial entities. This type of collaborative effort can help improve a non-profit’s funding stream while boosting the commercial firm’s public reputation. As the pandemic has unfolded, consumers have become more concerned about supporting companies aligned with social causes.

Investors have also become more vocal about supporting commercial enterprises that promote corporate social responsibility (CSR). Specifically, non-profit organizations working toward improving workplace safety for employees and cleaning the environment have an opportunity to gain funding from a wide array of corporate manufacturers because helping a company lower its risks can help it lower its insurance rates.

  1. Connecting with Supporters in their Comfort Zone

Gaining support from donors often comes from meeting them where they spend most of their time. Although the pandemic has created physical challenges, it has also opened the door for more online activity. Thus, if the target donor spends a lot of time on Facebook, try engaging with them more on their page or with a live streaming event you host on the platform. St. Jude Children’s Research was able to raise over $2.3 million through Twitch from an audience of 3.6 million followers.

  1. Maintain a Nimble Presence

More organizations have adopted a nimble strategy to reaching out for fundraising support during the pandemic. By being nimble, the organization has the ability to do things quickly and easily, with a focus on minimalism and cost efficiency. The nimble approach is less aggressive and calls for operating within the organization’s means.

Social challenges that have arisen from the pandemic have caused non-profit organizations to alter their approaches to fundraising. Considering the above trends will help you better position your cause in the next year. If you would like deeper insights on non-profit insurance coverage, contact the experts at Colorado Non-profit Insurance Agency, part of HUB International, in Denver, Colorado at 303-894-0298. We will help you achieve optimum coverage for your organization.