5 Nonprofit Trends We’re Watching in 2022

nonprofit trends 2022

With the New Year comes new possibilities for fundraising. In recent years, we’ve seen fundraising trends fluctuate, especially with the COVID-19 pandemic. Here are some recent trends you should keep an eye on for 2022!

What You'll Learn

Gifts from Donor-Advised Funds (DAFs) are increasing. 

According to the National Philanthropic Trust’s 2021 Donor-Advised Fund Report, DAF donors granted at historic levels, totaling an estimated $34.67 billion. This is the highest DAF grant increase in a decade, and it represents a 27 percent increase compared to 2019.  

 The report, which is based on data collected during the second quarter of 2021 about DAFs and the charitable sponsors that operated them in fiscal year 2020, also states that the DAF payout rate was 23.8 percent, one of the highest payouts on record. 

 DAF donors provide consistent charitable support, and they are committed to supporting charities now and in the long term. This is evidenced by the fact that key metrics like contributions and charitable assets also increased. 

 The number of DAF accounts, the giving vehicle that enables donors to support charitable organizations and causes, reached above one million for the first time. Individuals may choose DAFs for their flexibility and user-friendly characteristics and continue using them because they can plan for and respond quickly to causes that are important to them. 

Monthly giving is an important consistent revenue stream.  

Monthly giving is more important than ever for nonprofits. According to a M+R Benchmarks study conducted in 2020, monthly giving now covers 17 percent of overall online revenue in one calendar year. 

 A monthly giving program is easy to maintain and helps build long-term relationships with donors that can lead to larger, planned gifts. Monthly giving revenues can provide a stable funding base to support your programs, especially as they grow. 

 January is the ideal time to make a monthly giving push! As the beginning of the year, donors have their New Year’s resolutions in mind and want to start the year off well by making a positive impact. Read this case study for an example of a monthly giving program in action, and here are 4 tips for maximizing your monthly giving program in 2022. 

The Apple iOS update is changing the way we analyze email performance. 

In September 2021, Apple rolled out iOS 15 email privacy changes that is affecting how organizations analyze email performance.  

 The Mail Privacy Protection “helps users prevent senders from knowing when [a person] opens an email, and masks their IP address so it can’t be linked to other online activity or used to determine their location.”  

 This means that nonprofits are not able to accurately track who opens their emails on Apple Mail. The privacy change means that the unique and total open rates will artificially go up, not down. This is because Apple isn’t blocking the tracking pixels used to see who opens an email and who doesn’t. Instead, they are pre-loading all tracking pixels before a subscriber sees the email. 

 Broadly, the change will affect 25-50% of your email subscriber base. Your email analytics will show the specific percentage for your email file. 

 Remember that this change will only affect Apple Mail users. It does not affect people who use Gmail, Outlook or another mail app on their iOS device. 

 Email remains a strong platform for growing and engaging audiences, so the key takeaway is that it’s important to adapt. Clicks will be the defining email KPI, so optimize your emails to encourage clicks. When analyzing email performance, focus on clicks and website visits instead of the open rate. 

 Adjust your baseline email open rate expectations based on an analysis of your email list and how many people open your emails on Apple Mail. Actively monitor key engagement metrics and understand how the privacy change impacts your metrics before making updates to your email engagement and cleaning processes. 

Crypto giving is growing exponentially. 

Around the world, 220 million people use cryptocurrency today, and about $300 million is donated in the form of cryptos each year. The Giving Block projects $1 billion in crypto donations to be processed in 2022. 

 The Giving Block empowers nonprofits to securely and compliantly accept cryptocurrency donations, and enables individuals to easily give crypto to their favorite charities.   

 In 2021, The Giving Block saw a 1000% increase in individual cryptocurrency donations, and nonprofits using The Giving Block have raised an average of $50,000+ in cryptocurrency donations. 

 On #CryptoGivingTuesday, donors gave $2.4 million to nonprofits, a 583 percent increase from Crypto Giving Tuesday 2020. The average donation size was $12,600, a 20 increase from the average crypto donation in 2021. 

 Learn more about crypto giving and about how our client, Friends of Notre-Dame de Paris, is diversifying their fundraising options by accepting cryptocurrency donations. 

Gifts of appreciated securities are an untapped source of revenue for nonprofits.  

Asking for gifts of appreciated securities is a great way to further diversify your organization’s fundraising revenue.  

Giving stock and appreciated securities is a win-win for both nonprofits and donors. When donors give stock, they don’t have to pay a capital gains tax and can take a charitable deduction on the current value of their shares, making it a tax-savvy way to give to their favorite nonprofit organizations. Stock gifts make a big impact while saving money in the process. 

Too often nonprofits don’t ask their donors for gifts of securities, and many donors are not aware that gifts of stock are an opportunity for them to support the causes they care about. 

 To help spread the word about this tax smart giving option, Faircom New York launched #SecuritiesForSecurity in November 2021. 

 

About the author
Corinne Servily
Founder and President of Faircom NY

Corinne provides strategic guidance for every client—based on decades of experience in the fundraising industry. Her successes have led to her being recognized as the sixth best fundraising consultant in the US.

Beginning with the establishment of Doctors Without Borders’ US fundraising program, her expertise in supporting overseas organizations entering the US market has made her a highly sought after authority in the fundraising world.

Corinne has been the keynote speaker at many fundraising conferences, including the King Baudouin Foundation Conference in New York, the Swiss Fundraiser’s Conference in Geneva, and the Association of Fundraising Professionals in Paris.