Four Executive Directors Perspective on Nonprofit Fundraising in 2021
2021 is a year of change. The last fourteen months were anything but normal, and in the coming months, we expect to make a change toward normalcy. While everyone is looking forward to shifting back into old routines, there are things nonprofits learned during the pandemic that will become a new norm. Some old routines may end up staying in the past. The challenges of the pandemic demanded innovation and nonprofits everywhere found new ways to implement their programs, reach donors, and support their communities. We asked nonprofit executive directors what changes they see occurring in the fundraising space and whether or not these are lasting or temporary changes? Gathering real insights from operating nonprofits is key to understanding how the world has forced organizations to evolve and whether or not their new strategies will become effective industry norms or just one-off successes in a unique circumstance. Let’s see what they had to say.
Aspen Academy
Aspen Academy, located in Greenwood Village, Colorado, is a pre-K through eighth-grade school that focuses on empowering students to lead purposeful and extraordinary lives. The independent school focuses on Next Generation Education, Leadership and Entrepreneurial Development, and Community Strength and Service. Here’s what Debbie Cordero, Director of Development and Community Engagement, had to say about changes to fundraising in 2021:
“Relevance is key: It sounds like an understatement, but during the pandemic, we've found donors are laser-focused on what matters most. As an independent school that delivered in-person learning during the pandemic, we made ourselves relevant by reinforcing the value we delivered during an uncertain time. We also emphasized our fundraising asks to a "per student" allocation that made it more tangible for parents.”
“Listening is more important than ever. Asking people who are struggling in life to donate felt difficult to us. Instead, we focused on our one rule: be kind. We arranged individual calls to check in with all families during the fall and winter. It was much less about the ask for a donation, and more about the engagement and finding out how our families were doing. The result was an increase in touchpoints and dramatically higher giving once we'd taken the time to connect and really understand what our families were experiencing.”
Immaculate Heart Community
With a focus on the arts, women, immigration, and the environment, the Immaculate Heart Community of California is a Christian community dedicated to peace and justice. Founded over fifty years ago in Los Angeles, California, the Immaculate Heart Community works to heal their community through serving those in need. The Community’s Executive Director, Kathleen Buczko, answered our questions about the future of fundraising in 2021:
What changes do you see occurring in the fundraising landscape?
“The importance of individual donors - from small online gifts to major gifts from high net worth individuals- is a requirement, not an option. Without a robust engaged base of individual donors, nonprofits are caught without sustainability when “things change”. This situation isn't new but 2020 had the perfect storm of a stock market downturn that impacted private and family foundations and a public health emergency that impacted governments at all levels. Organizations dependent on that funding were blindsided and may have scaled back operations as a result. It’s hard for any nonprofit to invest in future funding but targeted building of individual donors is an investment in the sustainability of a nonprofit.”
Are these lasting or temporary changes?
“Individual donors are the only sustainable way for a nonprofit to succeed. Hopefully, nonprofits will make the investment needed to build those relationships.”
PAWS NY
Founded in 2009 by Rachel Herman after years of fundraising for the ASPCA, PAWS (Pets Are Wonderful Support) NY is a nonprofit organization dedicated to helping New Yorkers care for their pets when they face physical or financial barriers. PAWS helps older adults, those living with illness, and those with disabilities to care for their pet’s daily needs such as walking, litterbox maintenance, grooming, and more. The organization also supports veterinary and foster care services and even operates its own Pet Pantry. Check out their fundraising insights below.
What changes do you see occurring in the fundraising landscape?
The pandemic has impacted every facet of fundraising, creating significant obstacles for nonprofits to overcome. Smaller organizations have been hit especially hard, as they are more likely to lack endowments or large financial reserves, to help them "weather the storm." Like so many organizations, Pets Are Wonderful Support (PAWS NY) has experienced the financial impact first-hand. Fundraising events account for 20% of our budget, and the pandemic essentially eliminated the ability to host events over the last 15 months. Virtual events can be great, but nothing replaces the in-person experience supporters receive when they engage with an organization face-to-face. In addition, institutional funding has changed. Some funders have shifted their focus to support COVID-relief while others have been impacted financially and thus have had to reduce their funding. Finally, individual giving has been impacted. People have lost their jobs, and in general, we're all struggling with all that this pandemic has thrown at us. With so much unknown this past year, it makes sense that people might delay or reduce support until they have a clearer picture of what's to come.
Are these lasting or temporary changes?
I don't believe that these changes to the fundraising landscape are long-term. While I don't have a crystal ball, I am hopeful that we will see a return to the giving we saw prior to the pandemic. It's been a long and difficult year, but we are finally at a place where we can feel hopeful that we are returning to a "new normal." For PAWS NY, we had to suspend our largest program in March 2020, and more than a year later, we are finally at a point where we can consider a safe reopening. We have continued to support older adults and others in need through other programs, but losing our most visible program, where we utilize our volunteer network through hands-on support, has most certainly had a negative impact on donor support. Once we reopen, I expect we will see a boost in giving. As I think about the landscape at-large, I believe that most nonprofits will begin to see a return to more typical giving by the end of 2021, in time for year-end fundraising efforts. The hope is that nonprofits can continue to hold on until we get there.
eMite
eMite is a nonprofit that links donors with charities around the world in order to support philanthropy the impactful work of incredible organizations. Self-described as a matchmaker for donors and charities, eMite strives to create a close-knit community of givers and charities in an ever-global society. Here’s what they had to say about their experiences in 2021 so far:
“Donation revenue is outpacing 2020 numbers by over 30%. We anticipate a mid-year lull with donations picking up again toward the end of the year. This would be a familiar cycle from previous years. The most significant change we see in the fundraising landscape is an increased adoption of technology. Communication platforms like Zoom and CRM software have become a mainstay in our donor relations effort.”
We always enjoy hearing from the organizations that face the challenge of fundraising every day. Listening to these insights and blending them with our own experience allows NMBL Strategies to develop innovative approaches to fundraising and overall nonprofit strategic planning. Different sectors of the nonprofit industries develop their own strategies to target specific donor pools and sharing these insights can help support all nonprofits. If your organization enjoyed these insights and agree or would like to share your own thoughts on fundraising, start a conversation with us today at info@nmblstrategies.com.
Want to learn how we’ve raised more than $100 million and developed millions of dollars more in earned income? We’ve spent over 20 years developing the strategies and insights behind fundraising efforts across the world.