5 Higher Education Fundraising Trends to Be Aware of in 2023

Charitable giving to higher education institutions has recently been on the rise, increasing by 12.5% in the last fiscal year to a whopping $59.5 billion. Is your institution prepared to make the most of current fundraising opportunities?

If you feel like your university’s fundraising efforts could use a refresh, it can be helpful to analyze recent fundraising trends to identify and fill gaps in your strategies. Major developments in fundraising technology mean that the virtual environment is more important now than ever for building and sustaining donor relationships.

Let’s review five higher education fundraising trends to keep in mind when developing your strategy:

1. AI tools are becoming increasingly popular
2. Reaching young alumni continues to be crucial
3. Matching gift fundraising is providing a major boost
4. Recurring gifts are critical for sustainable funding
5. Donors want to see real impact

Higher education fundraising is constantly evolving, so establishing processes for monitoring and implementing new best practices will set you up for long-term success.

1. AI tools are becoming increasingly popular

Today’s higher education donors expect personalized experiences. Amid constant messages and notifications from other organizations competing for attention, personalized outreach helps your university’s message stand out.

AI fundraising tools are helping organizations learn more about their audiences to personalize outreach and build stronger donor relationships. 

According to BWF’s guide to AI fundraising, these tools are useful in several key ways, including:

• Predictive analytics: Your higher education institution can use machine-learning technology that gathers information from your unique database to anticipate future donor behaviors.
• Prospect research: Using insights gathered from predictive modeling, AI tools can help universities identify prospective donors who are most likely to reengage, continue giving, or upgrade their donation amount. Plus, AI insights can help you determine the right ask amounts, marketing messages, and communication channels for your unique audience.

AI tools take the guesswork out of fundraising, allowing you to increase your ROI by pursuing the strategies that are most likely to help you reach your goals.

Getting started with AI fundraising might seem daunting, but there are plenty of higher education fundraising consultants available to guide you through the transition to a more AI-driven approach. AI is the future, so reaching out to a consultant now can put your institution in a strong position to maximize fundraising in the years to come.

2. Reaching young alumni continues to be crucial

The college experience is still fresh in the minds of your young alumni. They may have a strong passion for your institution but aren’t in a position to contribute large gifts like many of your older alumni likely are.

Even though young alumni might not have a significant giving capacity, their potential to give will grow as they advance in their careers. You can retain their support by engaging with young alumni regularly and offering opportunities that appeal to their interests. These might include:

• Young alumni events. Plan tailgate parties, networking events, or picnics for your young alumni to relax and connect with fellow grads.
• Mentorship opportunities. Connect young alumni with experienced professionals in their fields to help them learn and grow in their careers.
• Mobile fundraising opportunities. Make any fundraising opportunities that you promote to young alumni convenient to participate in on a mobile device. For example, you might send a quick text promoting your annual giving day or post on social media about your Giving Tuesday campaign.

Digital fundraising platforms are the most effective channels for reaching young alumni. Whether you choose to prioritize text, social media, email, or your website, regularly reaching out to alumni using digital platforms will keep your institution top-of-mind.

3. Matching gift fundraising is providing a major boost

Matching gifts are corporate-sponsored donations that businesses contribute after their employees have donated to a philanthropic cause. Most companies match donations at a 1:1 ratio, but some offer 2:1, 3:1, or even 4:1 ratios.

Along with nonprofits, higher education institutions are often also eligible for these valuable funds. With more and more businesses adopting corporate social responsibility programs, matching gift initiatives are becoming increasingly widespread.

To make the most of this opportunity, your institution should develop a strategy to spread awareness of matching gift opportunities and encourage donors to submit matching gifts. 

According to Double the Donation, one of the most effective ways to spread the word about matching gifts is by creating videos. These videos should:

• Explain what matching gifts are.
• Provide clear instructions for filing matching gift requests.
• Describe the impact of matching gifts on your university, such as allowing you to offer more scholarships for students or fund construction projects.
• Include captions to enhance accessibility.
• Be branded to your university, with your logo, font, and colors.

Embed a matching gift video on your online giving page and share the video on your social media pages and email newsletters to increase awareness.

4. Recurring gifts are critical for sustainable funding

One-time gifts are great, but they won’t sustain your fundraising efforts for very long. That’s why it’s essential to focus on retaining donors and boosting your recurring giving efforts.

Recurring gifts, like monthly giving, foster a sustainable, predictable funding stream. Plus, recurring giving boosts donors’ lifetime value.

You can increase recurring donations using the following strategies:

• Thank donors quickly after they give and provide multiple ways to stay in touch with your organization via email, social media, or direct mail.
• Include a button on your giving page that allows donors to turn their one-time gift into a recurring contribution.
• Reach out to past donors during your recurring campaigns. For example, if a certain donor gave last Giving Tuesday, reach out to them this year to see if they’d be willing to give again or increase their donation amount.

Celebrate your recurring donors by inviting them to events (like your annual silent auction or gala) or sending special certificates to mark certain milestones, such as the yearly anniversary of their first donation. Investing in donor satisfaction will pay off in the long run as you successfully retain donors’ support and maintain steady funding.

5. Donors want to see real impact

When donors give to your higher education institution, they want to know who or what they’re supporting. By showing donors the real impact of their gifts, you emphasize the fact that their donations make a tangible difference.

Elevate your fundraising communications by highlighting donors’ impact using the following strategies:

• Allow donors to designate their gifts. Provide a multiple-choice option on your online donation page that lets donors choose the initiative or area to which they’d like to devote their gift. For example, you might provide options for giving to different scholarship funds or schools within your university. This allows donors to direct their giving toward areas they’re most passionate about.
• Send impact updates. Give donors ongoing updates about how their gifts are fostering positive change. For instance, send an email update with a thank-you message from a student who was supported by a donor-funded scholarship. Donors will appreciate being kept in the loop about who they’re supporting.

Providing updates about how you’re using donors’ gifts shows them that their investment was worth it. This can make them more likely to give again the next time you ask.

As you can see, each of these trends emphasizes the necessity of getting to know your supporters on a personal level and highlighting giving options that resonate with them. If you need support when developing your higher education fundraising strategy, don’t hesitate to reach out to a fundraising consultant. These professionals can help you stay up to date with fundraising strategies, education technology, and best practices and create an approach that works best for your university.

About the Author: James Barnard, Associate Managing Vice President of Annual Giving and Digital Marketing at BWF

James an integral part of the team at the global fundraising consultancy BWF. He helps nonprofit clients develop digital strategies for fundraising and marketing. James has been active in CASE for a number of years, participating as a conference speaker and CASE District II board member.