Synopsis:
In 2020, 83% of Nonprofits have experienced a reduction in revenue. Focusing on acquisition tactics like partnering with a small local business may be the answer!

By now, it’s clear that COVID-19 has affected us all. Some of us have pivoted to working from home while others adjust to new guidelines on the frontline. Let’s not forget this pandemic has also put thousands out of work, forcing governments to find ways to support a fragile economy.

Small businesses have had to get creative to maintain sales. Entire industries like tourism and hospitality have taken huge hits. But often overlooked in the face of the pandemic, the charity and fundraising sector continues to struggle. At the same time, the need for healthcare, social service, and community support non-profits has increased exponentially.

Earlier this summer, IndependentSector.org reported 83% of Nonprofit organizations had experienced a reduction in revenue in 2020. 

Many charities rely on events and face-to-face fundraising to acquire new donors and bring in mass revenue. Both options are now either extremely limited or cancelled completely depending on regional restrictions. Most charities are now scrambling to launch their campaigns online, which leads to a saturated, competitive digital market.

According to Nonprofit Marketing Guide, acquisition efforts have been pushed down the priority list as retaining current donors and maintaining brand awareness have been a huge focus. 

Here are some ways charities can stand out from the crowd and attract new donors:

1. Partner with a local business

Small local businesses need support right now, as do charities – this could be a match made in heaven! Partnering with a like-minded business is a way to acquire new donors, if the business’ employees and customers are aligned with the charity mission. A partnership can be done several ways – employee giving campaigns, donor drives, or even donating a portion of the business proceeds to charity. There are tools out there to help businesses and charities connect! In a previous blog post, we wrote about how partnering with a charity is good for businesses – truly a win-win partnership!

2. Host a virtual event

People are looking for connection right now, even if that means it needs to be virtual. Hosting an online run/walk, webinar, or challenge can help participants feel connected to each other and to the charity. Adding a peer-to-peer component and challenging participants to have their friends and family donate is a good way for charities to acquire donors that may not already be aware of their organization. While it is true that charities that rely on large-scale events have struggled in 2020, running a virtual event is something small Nonprofits can set up with relatively low cost.

3. Be honest with donors!

Donors still want to hear from the Nonprofits they support. If a charity is struggling financially, it’s important to be honest with donors and the community. Many people still want to help, but may not realize the situation their favorite charity is in.  Sending out an honest appeal, levelling with donors and letting them know their support is urgently needed is fair, and a route that charities should take.

Donor retention, loyalty and stewardship do remain important as ever – especially as the general population braces for financial uncertainty. But with the unemployment (and even underemployment) rates, charities can no longer rely on their donors to stay as loyal as previous years. Nonprofits should not neglect their acquisition efforts, even though it may be more expensive upfront. The power of community, connection, and reaching out to potential supporters is a matter of survival these days. 

To Nonprofits: don’t underestimate the importance of community and reaching out for support – even if it’s not within your usual brand voice! It’s time to get creative with partnerships and local businesses.

To donors: Nonprofits need you now, more than ever!