In a technology-driven world, it is no surprise that the nonprofit sector has begun to adapt technology into fundraising strategies. Of 300 nonprofit leaders surveyed for the 2024 Nonprofit Technology Trends Report, 64% use a software-based donor management or customer relationship management (CRM) solution tool. Leveraging technology in fundraising strategies can lead to more time to focus on relationship-building with donors while ensuring fundraising strategies are relevant, informed, and reliable. It is an enhancement strategy, not a replacement strategy.
We recommend nonprofits consider leveraging technology the following ways:
Communications
Large-language models, such as ChaptGPT, can be used to help nonprofits draft donor communications such as thank you letters, organizational updates, social media content, and anything else in written form. Key word is draft. Before being distributed, all AI-crafted donor communications should be reviewed to ensure organizational voice and values are accurately represented and expressed.
Donor Stewardship
MaxEx’s State of Sioux Falls Philanthropy study found when, how, and why donors give to be elusive. The elusiveness can be minimized when donor activities are intentionally and actively tracked. AI predictive analytics models can be used to segment donors and predict future donor behaviors such as frequency of donor giving, preferred communication platforms, and average donor giving amounts.
AI software, like predictive analytics, can be intimidating, which is where CRM integrated AI models come into play. CRM-integrated predictive analytics merges CRM software and predictive analytics software into one user friendly tool. CRMs store donor data, and predictive analytics finds trends and patterns in that data to predict donor behavior.
When this data is fed into the software, the process of identifying trends in giving and, subsequently, the best ways to steward donors becomes streamlined. Organizations can then use this information to personalize and tailor each fundraising strategy to individual donors, with the goal of increasing engagement and spurring reoccurring giving.
Online Giving & Broadening the Base
Digital wallets are becoming more popular, with 2/3rds of Americans expected to have a digital wallet by the end of 2024. Organizations can use digital wallets and online giving platforms to allow for secure, fast, and easy online giving, particularly at events. And offering online giving options promotes ongoing, sustainable fundraising by increasing the accessibility of an organization by meeting donors on the platforms they already use.
Additionally, the use of online giving options can propel reoccurring giving opportunities through a monthly giving program. Using your CRM or AI predictive analytics model, you’ll be able to segment donors based on organizational interest, amount of giving, and frequency of giving to personalize a monthly giving program. BONUS!