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The philanthropic landscape has changed more in the last five years than it had in the previous twenty years. The pandemic forever altered the ways we operate; an exodus from the fundraising profession and less (and far more competitive) giving by foundations and corporations have all played a part in the way nonprofits are generating revenue.
Three trends have gained greater impact on not only how we raise funds today but also how we will raise funds over the foreseeable future and are shaping the focus of nonprofits and their fundraising staff:
AI
Generative AI within the nonprofit sector is quickly adding to the growing menu of technology available to help nonprofits increase their efficiency and their ability to contain costs. As more nonprofit professionals learn to utilize AI effectively, it will become an integral component in the tech stack that supports many organizations. Ongoing digital marketing campaigns, donor communications, and development planning are already integrated components of many organization's fundraising efforts.
Some NPOs are turning to AI to write grant proposals or stewardship letters, and MW&A cautions against this. Grant requests and thank you letters should be written with sincerity and authenticity and, as much as possible, tailored to resonate with your donor/potential donor's specific interests. Raising funds from foundations has become increasingly competitive in recent years and the more thoughtful and personalized your proposal is, the likelier your organization is to stand out.
Non Traditional Workforce
The change in hiring trends over the last few years has been met with many people going into consultancy roles, even with their former employers. It works well for both parties, granting expertise for hire when needed and the freedom to choose when and how to work.
With a dearth of development professionals in the job market, many long-time fundraisers retiring, and AI, CRM, and other technical specialists realizing they can work with multiple organizations, this consultancy trend will continue to grow.
Financial Sustainability
The smart NPOs are making reserve funds and endowments a high priority. This trend began in earnest with the slow recovery of the Great Recession. COVID cemented the need to build a nest egg capable of seeing organizations through unexpected times while providing annual dividends to support operations. Forward-thinking NPOs remain hyper-focused on diversifying revenue and creating value in new ways. During volatile times, there is added pressures on nonprofits to prepare for increased demand for their programs or services and for possible financial shortfalls.
Michelle Whiting & Associates can assist you in a variety of ways.
-Fundraising can't wait while your organization searches for its Chief Development Officer. MW&A can serve as interim leadership during this process, directing and coaching your development staff and ensuring all strategies stay on track to meet your funding goals.
-We conduct Development Assessments, taking a deep dive into the current capacity of the organization—staffing, development systems, and technology—to identify specific areas that need fortification to grow your revenue immediately. Our Development Assessment’s short-term and long-term actionable recommendations will ensure your organization is maximizing your annual fundraising efforts.
-We will review current funders to assess their capacity to give and have honest conversations with board members and leadership about expectations.
-MW&A will work with your organization to develop the critical Case for Support, ensuring your vision, funding needs, and impact are presented in the most compelling manner.
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