Best Software for 2025 is now live!

Fundraising Trends in 2022

13 de Janeiro de 2022
por Dominick Duda

This post is part of G2's 2022 digital trends series. Read more about G2’s perspective on digital transformation trends in an introduction from Tom Pringle, VP, market research, and additional coverage on trends identified by G2’s analysts.

Impact of the pandemic on nonprofits 

2022 TRENDS PREDICTION

Nonprofits that embrace digital tools and contactless experiences as a core part of their fundraising strategy will see continued success in 2022 and onward.

Nonprofits rely on maintaining strong social connections to survive and have felt the burden of the COVID-19 pandemic perhaps more than organizations from other sectors. They faced a threat to their fundraising as revenue sources like galas, donor parties, and client programming were impacted by limitations or complete pauses on in-person gatherings. Digital connection has become the new norm, with social platforms and virtual options skyrocketing in popularity over the last year, even as countries are in various stages of reopening. 

What is digital fundraising?

Digital fundraising refers to the use of digital channels, such as social media, mobile apps, texting, or even QR codes, to build engagement with supporters. Nonprofits can use digital channels to reach donors and ensure stable donation flow throughout the year by shedding the outdated cycle of seasonal or biannual fundraising appeal campaigns. 

They can host different types of virtual events, reach audiences worldwide on social media platforms, and tap into the staying power of smartphones. Salesforce’s 2021 Nonprofit Trends Report found that 42% of respondents in marketing roles have built or at least explored connected web and social experiences for their supporters, and 38% reported adjusting their content strategy to include TikTok and similar new platforms. If they haven’t already, nonprofits will face the pressure to explore digital fundraising in 2022; how they do that, however, will depend on their unique organizational needs and audience.

Digital fundraising helps nonprofits meet more donors where they are

To varying degrees, nonprofits understand that it is now imperative to have a robust digital strategy. Smartphone and social media capabilities continue to evolve, and donors will prefer to use those channels to get involved with charitable organizations. Tools like Instagram Stories, TikTok, Twitch, and even QR codes on marketing materials have all been utilized by nonprofits to diversify their fundraising stream, especially when it comes to engaging Gen Z donors. They offer the added benefit of reaching audiences beyond a nonprofit’s geographic location and using the power of influencers for the greater good. 

Capacity and tech literacy are still the most significant barriers to embracing these tools properly, but that may not be as big a deterrent as it used to be. Faced with little choice, nonprofits are now trying to find the proper fundraising tools that provide the right balance of usability and customizability. These two themes--ease of use and level of customization--came up recurrently in G2 reviews left on Fundraising products over the last year. Users need more features to support their evolving fundraising goals, but they don’t have the time to learn a complex product. 

51% of G2 reviewers that left a 4+ star rating for a Fundraising product in 2021 cited its flexibility or ease of use

Nonprofits can’t afford to keep using software that hinders their digital strategy, so it makes sense that G2 replacement reviews (reviewer switched from one product to another) left on products listed under the Fundraising category rose by 15% in 2021 compared to 2020. 

Nonprofits understand that the loss of donations due to inefficient systems outweighs the cost to switch systems, and that organizations who can adapt to the digital landscape fare significantly better these days. Fundraisers and marketers can also capture more vital data by tapping into these various social channels, allowing further personalization when appealing to prospects and current donors. That will be crucial for identifying which campaigns provide the best ROI and which types of events will engage the largest number of people.

Speaking of events: nonprofits are embracing virtual platforms to reimagine engagement

G2’s Virtual Event Platforms category was created in May 2020 and already boasts 4,012 reviews across all its products as of November 30, 2021. Nonprofit reviewers represent 12% of that total count, which is impressive considering the wide range of industries represented in the reviewer pool. For nonprofits, long-term use of virtual event platforms will likely depend on ease of setup and how intuitive the product is. However, I imagine more tailored customer support will emerge to guide nonprofit customers. Even when in-person events make a complete re-emergence, nonprofits should still supplement with virtual offerings to engage wider audiences.

Review data reflects nonprofit reviewer count for products in the Virtual Event Platforms category from May 2020 until the end of November 2021

Nonprofits know that digital is key; now, they have to unlock its potential

Over the last two years, nonprofits have made considerable progress in modernizing their tech stack. Frankly, they had no choice if they wanted a fighting chance at weathering the pandemic. As everyone continues navigating the new norm, nonprofits need to invest in digital-forward fundraising strategies that push them out of their comfort zone and embrace technology that may not have been designed for them but nonetheless offers them a chance at staying ahead of the curve. Digital fundraising is now the primary focus for nonprofits, and the next year will highlight the disparity between those that adopt it smartly and those that fumble.

Quer aprender mais sobre Software de Arrecadação de Fundos? Explore os produtos de Arrecadação de fundos.

Dominick Duda
DD

Dominick Duda

Dominick is a Senior Research Analyst at G2 specializing in nonprofit software, with other vertical industry coverage including healthcare, government, and hospitality. Prior to joining G2, he spent years in the nonprofit sector as a fundraiser and grant writer, and he is deeply invested in understanding how nonprofits can make better use of the technology available to them. In his free time, he enjoys video games, museums, and reading and writing poetry.