They also estimate that the pandemic has increased the pace of digital adoption by at least three years- now with the cost-of-living crisis, the increased demand, cost pressures including inflation, rising energy bills and falling donations mean charity leaders will need to find efficiencies in their operating models. This represents an opportunity for the charity sector in the shape of digital fundraising, which has become increasingly normalised and accepted by consumers in recent years. However, as UK consumers and businesses face into the cost of living crisis, Charities are looking for ways to continue to build on the opportunity presented by digital fundraising in the face of increased running costs as energy prices and inflation rise, and falling donations as UK consumers tighten their belts.
In a survey by Charities Aid Foundation (CAF), they found that 14% of people plan to cut back on charity donations in the next six months[2]. The current climate makes it even more critical for the charity sector to encourage all donors to use GiftAid to increase the value of their donations. Data validation solutions can help to capture and validate contact data in real time as it’s collected and maximise Gift Aid revenues. When it comes to charitable contributions, every penny counts. As a result, when charities invest in technology, they must consider the impact of their investment. Helping to offset the reduction in charitable giving and delivering quick time to value. It’s all too easy to blow a lot of money on digital without seeing much of a return on investment.
Donations increased during the pandemic
For charities and not-for-profits adapting rapidly to new realities is a critical success factor, especially with fundraising. Think about this: Prior to the pandemic events were a key component of many organisations’ efforts. They were a way to personally meet with major donors and to leverage those donors’ contacts to expand their reach and increase revenues. Now, Lockdowns and regulated crowds have eliminated most interest in gatherings and generated new health and hygiene sensitivities. In fact, donors’ habits have permanently changed as they’ve found increasing trust in the availability and transparency of online information, via websites and social media pages, and experienced the convenience and control provided by online payment methods.
Know your supporters. Grow your support.
The key to successful fundraising is to know your donors—and to know who cares. McKinsey[3] retail research reveals that 71% of consumers expect the brands they deal with to personalize their interactions, knowing who they are, their preferences and transaction histories. 76% of consumers get frustrated when they don’t find it and 78% of consumers are more likely to make a repeat purchase from companies that do personalize. The message is clear, it’s important for non-profit organizations to know who their current donors are and why they donate. Then to use that knowledge to create more personalized messaging when communicating with both their existing donors as well as with prospective new ones.
Personalization doesn’t mean writing hundreds or thousands of individual letters or emails, but it does mean segmenting your audience into distinct cohorts where a targeted message will resonate. For charities looking to attract and retain support in challenging times, personalisation is an option to establish and nurture relationships with supporters. Knowing and understanding their donors’ and volunteers’ needs, motivations and nuances is more important than ever.
Charities must improve their ability to attract, retain, and grow support. The first step is to become acquainted with your supporter. Hyper-personalisation is a new approach to fan engagement that will move your fans up the engagement ladder. Charities can establish and nurture a long and mutually beneficial relationship with their supporters by knowing and understanding their donors’ and volunteers’ needs, motivations, and nuances.
There can be differences driven by income, location (supporting local businesses, farmers), gender, and family situation (marriage status, children, pets). The giving experience you provide to each of your segments will also be important.
Data Validation for Microsoft Dynamics 365 CE
Speak with a data quality expert todayWhere to start: data you can trust
Trust is clearly key to fundraising. Knowing who your supporters are and being able to communicate with them in a way that resonates personally helps create trust.
Personalised communication starts with data accuracy. Did you collect the correct contact information when at the first encounter? Messages don’t feel very personal when the name or address is misspelled. Of course, when you have an inaccurate address, email, or phone number your message may simply not arrive at all. Plus, when your contact data is inaccurate it becomes harder to enrich. There are numerous third-party sources of data, including Experian, that can be used to expand knowledge of your donors by adding the demographic that help you better understand who they are. However, to get a good match within those data sources requires valid contact data. Poor quality contact data yields few matches and is of little value.
In 2020, donations to UK charities grew by over 6% to hit a total of £11.3 billion[4] Charities that already provided online services for fundraising were not only able to sustain revenue but also discover new ways to interact with donors—virtual events, other non-traditional approaches like online volunteer sign-up and social media campaigns played an important role. For example, animal welfare is the UK’s most popular cause for donating to charities. Online giving to charities soared by 110% during the pandemic[5]. In general, organisations that were agile, adapted their programs to support online donations, and communicated well (transparently) benefited enormously. The accuracy of information stored in a fundraising CRM is what allows charities to effectively understand, communicate with, and engage supporters. By making the most of the data you hold, you can transform the way your charity works – from reducing costs to increasing supporter reach. There are pre-built data validation integrations available for a variety of systems, including Microsoft Dynamics 365 CE. Did you know Microsoft Dynamics 365 CE is also available at a reduced cost to charities?
Armed with good contact information and knowing more about your donors and prospective donors allows the optimal use of your marketing resources. Whether you are sending letters or emails, leveraging social media or TV advertising, or leveraging crowdfunding, your messages need to hit home and that means recognising the needs and desires of your audience. The more targeted your messaging, the greater the impact, and the more cost-effective the use of your promotional funds and human resources.
Ready to explore Experian’s data quality solutions for charities? Contact us.
Sources
[1] McKinsey: How COVID-19 has pushed companies over the technology tipping point—and transformed business forever, McKinsey
[2] Increased demand and falling donations create “perfect storm” for charities in cost-of-living squeeze, Charities Aid Foundation
[3] The value of getting personalization right—or wrong—is multiplying, McKinsey
[4] UK Giving Report 2021, Charities Aid Foundation
[5] Online donations soared during the pandemic, WPNC