Nonprofits have long been a driving force for social change, relying heavily on the generosity of donors to fund their missions. However, recent statistics paint a disappointing picture for the nonprofit sector, with donations, donor retention, and revenue from various channels all declining in 2022.
As a leader in texting for nonprofits, Tatango’s goal is to arm nonprofits with the knowledge and digital tools they need to succeed in their fundraising goals and amplify their mission. In this blog post, we’ll explore the new statistics for nonprofits and what they mean for the sector. Be sure to read to the end as we will highlight the unique opportunities nonprofits can utilize to increase donations, get their messages seen by constituents and continue to amplify their mission in 2023 and beyond.
Nonprofit Donations on the Decline
According to a report by Giving USA, charitable giving in the United States declined by 1.6% in 2022, marking the first decrease in giving since 2013. This decline in giving is particularly concerning for nonprofits, as they rely on donations to fund their programs and services.
Donor Retention Drops
Not only are nonprofits receiving fewer donations, but they are also struggling to retain donors. The Fundraising Effectiveness Project’s 2022 Fourth Quarter Report found that the donor retention rate was 43.7% in 2022, down from 45.5% in 2021. This means that more than half of the donors who gave in 2021 did not give again in 2022.
Results from Email, Social, and Digital Ads Show Decline
Revenue from email, social, and digital ads also showed a decline in 2022. According to a report by M+R Benchmarks, nonprofits saw a 22% drop in email revenue on December 31, 2022, compared to the previous year. On GivingTuesday, nonprofits saw a 13% decline in online revenue and an 18% drop in email revenue.
Gift Type Changes
One-time gifts decreased by 12% in 2022, while monthly gifts increased by 11%. The average online gift was $121, up slightly from the previous year. Interestingly, only two subsectors – Disaster/International Aid and Wildlife/Animal Welfare – saw an increase in donations, at 8% and 6%, respectively.
Nonprofits Sent More Emails, But Response Rates Dropped
Nonprofits sent 15% more emails in 2022 than in the previous year, but revenue from email declined by 4%. The response rate for emails also declined by 18%, and click-through rates dropped by 15%. In 2022, nonprofits sent an average of 60 emails, with half of those being fundraising emails.
What Does This Mean for Nonprofits?
These statistics paint a concerning picture for nonprofit donations, with declines in giving, donor retention, and revenue from various channels. The pandemic and other recent economic changes may have played a role in these declines, as donors may have redirected their giving to pandemic-related causes or struggled financially themselves.
However, there are some silver linings in these statistics. Monthly gifts saw an increase, which could suggest that donors are looking for more sustained engagement with nonprofits. Additionally, the increase in average online gift size could indicate that donors who are still giving are giving more generously.
Nonprofits should also consider the decline in email response rates as an opportunity to reassess their email marketing strategies. Sending more emails may not be the solution if response rates continue to decline. Nonprofits should focus on sending more targeted and personalized emails, with a clear call-to-action and impact statement.
How Can Nonprofits Increase Donations And Amplify Their Mission?
This blog post highlights the challenges faced by nonprofits in light of recent statistics, but it also offers encouragement and suggestions for navigating these changes. While the decline in donations, donor retention, and revenue from various channels may seem disheartening, there are opportunities for nonprofits to adapt and improve their strategies.
One positive aspect to note is the increase in monthly gifts, indicating that donors are seeking sustained engagement with nonprofits. This presents an opportunity for organizations to cultivate stronger relationships with their supporters and build a more reliable revenue stream. Nonprofits can consider developing compelling monthly giving programs that showcase the impact of consistent contributions and offer exclusive benefits to donors.
Furthermore, the statistics reveal a decline in email response rates, emphasizing the need for nonprofits to reassess their email marketing strategies. Rather than relying on a high volume of emails, organizations should prioritize quality over quantity. Crafting targeted and personalized message with a clear call-to-action and impactful storytelling can significantly improve engagement and encourage donors to take action.
While the challenges ahead may be daunting, it is crucial for nonprofits to remember their vital role in driving social change. By adapting their strategies, focusing on sustained giving, and leveraging effective communication channels like personalized texting, nonprofits can overcome these obstacles and continue making a positive impact in their communities. The path may require innovation and creative thinking, but the work of nonprofits remains more important than ever, and the potential for success and positive change is within reach.
If you’re looking to use an innovative tool to combat these challenging statistics and turn your challenges into an opportunity, look no further than texting. Reach out to Tatango today to learn more about our platform and how texting can help your nonprofit organization engage constituents and amplify your mission.
