How technology and the growing virtual environment has changed fundraising

Fundraising has evolved significantly over the last few years with new technologies, strategies, and trends emerging that are changing the way organizations raise money.

Your organization may be feeling some of the effects of some of these changes that have evolved over the last few years:

Increased use of digital platforms
The use of digital platforms, such as constituent relationship management (CRM) platforms, that are connected to social media, email, and mobile apps, has grown significantly in recent years. Many organizations are now using these platforms to reach out to donors, share their stories, and accept donations.

The rise of crowdfunding
Crowdfunding has emerged as a popular way for organizations to raise money in recent years. Platforms such as Kickstarter and GoFundMe allow organizations to raise money from a large number of people online, often in exchange for rewards or perks.

Emphasis on storytelling
Organizations are increasingly focusing on storytelling as a way to engage donors and build emotional connections. By sharing their stories and the impact of their work, organizations can help donors to understand the value of their contributions and feel more invested in the cause.

Increased use of data analytics
Organizations are using data and analytics to better understand their donors and target their fundraising efforts more effectively. By analyzing data on donor behavior, organizations can identify patterns, trends, and insights that can help them to make more informed decisions.

Emphasis on donor retention
More emphasis is being placed on donor retention in recent years, recognizing the value of keeping donors engaged and committed to the cause over time. Many organizations are now using CRM tools such as Salesforce for Nonprofits to manage and analyze their donor data to help them with retention.

The rise of social media fundraising
Platforms such as Facebook, TikTok, Twitter and Instagram have introduced features that allow organizations to accept donations directly through their social media pages.

Increased use of virtual and online events
The COVID-19 pandemic has accelerated the use of virtual and online events as a fundraising tool. Organizations are now hosting virtual galas, auctions, and other events to raise money and connect with donors remotely.

We have seen nonprofits react to these changes both during COVID and post-COVID times by addressing their digital maturity. They have been adding digital capabilities, one by one, to allow them to raise funds in this new digital world. 

At Redpath Consulting Group (Redpath), we often see the data silo and data quality problems, which is indicative of a digital strategy that has not integrated all of the digital solutions. Salesforce Nonprofits Trends Report 5th Edition indicated that less than 1 in 5 nonprofits reported a high-level of digital maturity. 

We believe that the strategic use of technology directly links to improved organizational efficiency and performance across nonprofit operations. Nonprofits with a high level of digital maturity are more likely to exceed their goals and have stronger relationships with all stakeholder groups, including their employees.

Redpath offers a Path to Success strategic advisory service that takes a people-and-process-first approach to help your organization identify your current technology landscape. From there, we partner closely with your team to use vision-driven decisions that align Salesforce to your organization’s strategy and goals. When we conclude your Path to Success, you will have a blueprint that increases organizational alignment, reduces risk, and allows you to plan for a Salesforce implementation confidently.

In conclusion, fundraising has evolved significantly over the last few years with new technologies, strategies, and trends emerging that are changing the way organizations raise money. While this is driving nonprofits to increase their digital capabilities, these changes have opened up new opportunities for organizations to reach more donors, build stronger relationships, and raise more money.

At Redpath, not only are we experts in Salesforce for Nonprofits, we also know and love nonprofits and are ready to help you leverage the power of Salesforce to accelerate your impact.