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Nonprofit 2022 Outlook



Once again the crystal ball for nonprofits in the coming year is hazy. The sector is coming off a strong $2.7 billion Giving Tuesday, but with Omicron raging through the world and economic uncertainty, the 2022 outlook is still unclear.

One very interesting clue came from the Fundraising Effectiveness Project's look at 3rd quarter giving last year. The data shows that, comparing the first three quarters of 2020 with the first three quarters of 2021, giving was up slightly (+1.4%) while the number of donors dropped slightly (-1.4%). Repeat donors dropped by a substantial 7%. What's it mean? Maybe those smaller donors who were moved to give for the first time in 2020 didn't repeat their donations in 2021. Looking ahead it could mean that nonprofits should focus even harder on stewardship to keep the support of their larger donors, but you knew that already.

There are also a few predictions about what will and won't work for fundraising tactics. The Association of Direct Fundraising Counsel (I promise we will just call it the ADRFCO from now on) surveyed members involved in things like email, mail and telephone fundraising about 2022 trends.

  • Recurring donors was the big trend for the coming yearcoming year (76% said it would be a top area of growth).

  • Mid-level donors was the second positive trend (52% said it would be a top area of growth).

  • Telefunding was predicted to be the big loser (69% say it will lose effectiveness), mostly because people are less likely to be sitting at home and able to talk on the phone.

  • Email was a surprise. The group was split over email donations with 34% saying it would increase as a platform and 34% saying it would decrease.

  • QR Codes have now established themselves and there is no turning back.

So the bottom line is show your current supporters a lot of love, look for ways to turn first-time donors into recurring donors, and make sure your communications plans are in order so that you can tell your story through any medium that works for your unique nonprofit.

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