Three Economies Impacting Fundraising (That Aren’t About Money)

It’s a challenging time for fundraisers. Consumer confidence is shaky, trust in institutions is declining rapidly, and donor retention statistics aren’t great. Many higher education institutions and a ton of causes have set records for fundraising in recent years, however.

What sets these top fundraising organizations apart?

They are focused on capturing donor attention and making giving a meaningful experience rather than on donor transactions.

A friend mentioned the “fundraising economy” the other day. I thought I would rephrase some things I’ve been sharing with fundraisers using that lens. The way I see it, there is a new, multi-faceted “economy” that charitable fundraisers now live in.

When we use the word economy, we’re mostly talking about choices. We’re talking about the choices that people make with their money, and with other limited resources.  Winners in any economy over the long term more consistently become the opportunity of choice. And when we think about the fundraising economy, the choices for donors aren’t just about cash.

Winning fundraising programs know that fundraising isn’t just about money: it’s also about attention, purpose and trust. You have to win in three other non-money “economies” to succeed with donors. Here they are.

The attention economy for fundraising

We all face staggering demands from our attention. Whether it’s advertising, social/political causes, or other nonprofits, the truth is that we all receive hundreds of requests for our attention and support daily. As low as 1% of messages will even be remembered.

How do you break through the attention barrier to gain attention from donors, especially those who haven’t given before? The first answer is to be authentic and compelling.

The second is to communicate across multiple channels (think email, text, social media, print and even voicemail), in a sort of “surround sound” to your donors.

The third is to personalize and be responsive to a donor’s preferences. To do that, you’ll need technology, but the good news is that AI-driven solutions are becoming accessible to all size organizations.

Winning fundraising in the attention economy = communicating in compelling ways across multiple channels, amplifying social connection, and personalizing your appeals at scale.

The experience economy for fundraising

Once you have donors’ attention, you must make giving a truly joyful experience. Remember, donors aren’t buying “stuff” with their money. They’re making choices that offer them meaningful, joyful experiences.

To put it simply: the “experience” economy has taken over. Last year, Taylor Swift achieved the first-ever $2B concert tour, with Coldplay right behind with over $1.5B. Disney’s new CEO? Not a media exec, but the former head of Experiences. We can see this trend everywhere, as the biggest brands invest in experience-based marketing. (Yep, all those QR codes for mini-games and social media challenges have a point. They are a brand experience, not a transaction and they lead to long-term customer “stickiness”).

Giving is an experience. And we are in an experience economy, so fundraising can flourish.

This is great news for philanthropy, which can flourish in the experience economy. Because we’ve just never been focused on “stuff.” We’re even seeing gift premiums (the thing you get after a donation) focus more and more on access to experiences. I hope fundraisers will truly lean into this shift, making giving low friction, joyful, and inviting donors to celebrate the mission as a participant, not just a name on a donor list.

Winning fundraising in the experience economy = focusing past the transaction of a donation to show donors their impact, and inviting them into an experience of celebrating of your mission.

The purpose and meaning economy for fundraising

What is the top reason why people give? The answer we’ve trained fundraisers to say for decades is “because they are asked.” Asking again and again won’t work anymore, however. And how you ask matters.

In the most recent Bank of America study on giving by affluent households, we heard once again that the top giving reasons for big gifts are a belief in the mission, expectation of making a difference and impact to the community. The lowest-ranked reason for giving by high net worth families? “When they were asked.”

Top donors tend to lock in on specific cause areas over time. We can see this in donor research data, and the patterns of giving with the biggest philanthropic families in the U.S. Today, the biggest predictor of a major gift to your college, university or nonprofit is likely a gift to another similar organization at a high level.

Research tells us that big givers also become strategic giving experts over time. They are highly aware of giving methods, and have had numerous experiences that inform their decisions by the time you come to the table with a request. They are not “targets” for fundraisers, they are philanthropic peers and partners. That means a collaborative mindset will be more important than any “pitch” you can make as a fundraiser.

Winning fundraising in the purpose and meaning economy = listen to your donors, link their passion to your mission, and treat them as strategic partners in meeting your shared goals.

Fundraising is less about money and more about meaning

As I’ve said before, our job as fundraisers isn’t to “convince” donors, it’s about collaborating with them. Like all partnerships, they build over time with trust. And in today’s world, the way we use technology to amplify human relationships (not replace them) will make a big difference.

It’s true that financial uncertainty is impacting philanthropy. We are, however, amidst the largest wealth transfer in human history, and record-setting giving will be the norm for the next two decades.

While those giving records will primarily be driven by mega-giving from a small number of donors, it’s important to remember that major gifts don’t grow on trees. They come from a relationship. In the socially connected world we live in, big givers will also be influenced by how you are inspiring your broad base of donors as well.

Donors build affinity and trust over time, just like people do with brands. That relationship is where the biggest gifts come from. Bring your donors on this journey in the three competitive economies of fundraising – from attention to experience to purpose, and you will truly amplify the joy of giving.