The gap is getting bigger, not smaller, between nonprofits who are quickly adopting technology and others who are falling behind. So says a report from GiveCentral Nonprofits that do not fear technology change and are ready to digitally evolve are gaining from the trend.
The report highlights how effective communication is one area in particular that many nonprofits consistently overlook in their efforts to engage donors in technologically savvy ways. Despite 84 percent reporting their organization embraces technology change, more than one-quarter (27 percent) do not have a formal email communication schedule in place and only 10 percent send weekly donor emails. An additional one-quarter (26 percent) still send weekly printed newsletters. As a result, nonprofit senior executives are leaving many opportunities on the table to communicate and engage with donors to build stronger relationships and increase giving.
“The pace of technological change will escalate for the nonprofit industry in 2015,” said GiveCentral CEO Patrick Coleman. “With the declining use of checks, increasing use of mobile giving, and overall competition for donors’ dollars, the need to make it easy for donors to work with a nonprofit is more important than ever before. While nonprofits are certainly embracing technological change, the pace needs to quicken if they want to build a loyal donor base and bring in more dollars this year.”
Coleman continued, “Our
2015 Predictions for Nonprofit Giving survey underscores that improved technology and communication are what’s needed most to increase donor engagement. The most important actions nonprofits must take in 2015 are to communicate with their audience on a regular basis, make it as easy as possible for them to donate and make these new behaviors a permanent part of the organization’s strategy.”
Highlights from the GiveCentral survey report,
2015 Predictions for Nonprofit Giving, include:
Lack of Communication Puts Donor Relations at Risk
27% of nonprofits have no structured email schedule, 54% lack a timetable for phone calls, and 89% have no organized text messaging communication program, missing a significant opportunity to facilitate regular donor engagement
22% send emails monthly, and only 10% send emails weekly
Only 3% send monthly text messages
Through effective communication programs, nonprofits can speed up the process by which their donor audience is reassured digital donating is secure, easy to understand, convenient, and provides an engaging giving experience
Education is Desperately Needed
Nearly half (49%) the respondents said their donors don’t understand online giving
Only 12% of respondents say online giving technology is too complex for their organization to use
Traditional and Electronic Giving Together is Critical
Just under half (48%) currently receive online donations
Only 6% receive donations via mobile device
Paper checks (58%) are still the most commonly used form of receiving donations
Nonprofits Aren’t Measuring Donor Activity
Four-in-ten (39%) do not measure donor processing costs and therefore do not know if they are operating effectively
Less than one-third (31%) measure administrative costs
23% measure related marketing costs
Donor Fear of Technology Diminishing
Although a slight majority of nonprofit senior executives (52%) believe their donors still have concerns about electronic giving, they also report that more and more donors are becoming comfortable with digital channels
84% of nonprofits recognize the importance of catering to a new generation of donors and embrace technology change
Only one-in-ten nonprofits retain fully manual donation processing
Biggest Challenges in Managing Donor Giving
Lack of trained personnel to manage donations
Concern about the robustness of existing processes for electronic donation administration
Worry that donors don’t trust the security of technology to give online or via mobile
Top Benefits of Electronic Giving
Payment security (66%)
Real-time transactions (64%)
Donor relationship tracking (51%) (yet very few do track donor relationships)
To access a full copy of the results of the survey, please
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