The future of fundraising
For sustainable success and revenue growth within today’s charitable and social enterprise sector – and for the future – organisations need to be alert and responsive to two key elements:
The growing community minded audience.
The rise and here-to-stay consumer preference for alternative digital payments.
This is how open banking technology fits in perfectly.
The community-driven audience
The pandemic saw a rise in community spirit reflected in elements like the weekly NHS claps and an increase in both regular and one-off charitable donations.
Millennials and Gen-Z made up the majority of donors in this period and according to GWI, today’s regular donor is more likely to be from these generations, despite often falling into a lower income bracket.
What’s more, for these younger generations in our hyper-connected world today, community goes beyond their immediate
vicinity – as shown by the likes of Greta Thunberg. No charity or cause is too small for their attention and hard-earned cash .
Millennials and Gen Z expect total transparency around their spending and are driving the ethical and sustainable consumer revolution. They see themselves as a powerful force for change and want to see their income make a positive impact as a result.
The digital payment preference
There was already an increase in digital fundraising and consumer spending online versus in-person. This trend was proving a challenge for charities before the COVID-19 crisis, but it has since accelerated, making this the preferred way to pay.
Times are changing
• According to the CAF, there has been a sustained increase in cashless giving since March 2020. • Charities in the UK reported a 35% increase in online revenue in 2020. • TrueLayer’s study showed that 63% of donors would be comfortable paying via open banking today. • Retail research by Checkout.com shows that 30% of consumers now actively want to try new payment
methods based on their digital experience in 2020.
In all, for charities to remain relevant and to attract long-term advocates and future donors, they need to embrace the best technologies:
To build a strong online community presence.
To enable new preferred payment solutions that facilitate quicker and safer donations.