Annual Giving Trends: Data forecasts boosted donor revenue for tech-forward nonprofits in 2024
Nonprofit fundraising is a dynamic field where every donation counts and the stakes are high. Benchmarks and data are vital to keeping strategies on track and providing a strong foundation against persistent funding pressures.
In a series of blog posts, Fundraise Up is forecasting the future of digital fundraising by analyzing 2023 user data against industry reports. For this second installment in the series, we’re focusing on annual giving trends.
Despite the 2023 nonprofit sector data showing stalled donation growth, Fundraise Up's nonprofit partners saw notable increases in 2023 annual giving volume. What's behind this positive shift for Fundraise Up users?
This article digs into annual giving volume data, offering insights and practical implications for nonprofits seeking to boost their fundraising outcomes in 2024.
Industry overview: annual and year-end giving volume trends
Year-end giving is one of the most lucrative times for nonprofits, often driving the bulk of annual fundraising revenue. However, a close examination of M+R's 2023 Benchmarks Study paints a challenging picture:
- Giving Tuesday revenue saw a 7% decrease.
- New Year’s Eve revenue also dropped by 7%.
- Total online donor revenue declined by 1% from 2022 to 2023.
With key fundraising days like Giving Tuesday and New Year’s Eve showing significant drops, it's clear that donors' preferences and behavior are changing. This shift contributes to a general decline in donor revenue, emphasizing the need for nonprofits to adapt quickly to maintain and grow their donor base.
Fundraise Up users see annual giving growth
We analyzed Fundraise Up user data from over 200 nonprofits across various causes, including environmental protection, human services, and emergency response. Such a comprehensive dataset ensures that insights are relevant and useful for nonprofits of all missions and sizes.
In contrast to the broader industry's stagnation in annual giving trends, our users saw encouraging year-over-year increases:
- Giving Tuesday donations increased 1.72% in value and 2.75% in quantity.
- New Year’s Eve donations grew by 2.8% in value and 57% in quantity.
- Total donations processed rose by 6.9% from 2022 to 2023.
Significant donor revenue growth on key fundraising days indicates how Fundraise Up's digital tools lead to higher donor engagement and fundraising outcomes. This remarkable rise in giving demonstrates the potential for advanced digital fundraising solutions to boost donation volumes and sustain revenue growth.
Why Fundraise Up users are outpacing the industry
To fully appreciate the annual giving trends revealed through our data, we must compare them directly to the industry averages. Fundraise Up's user data is comparable with M+R Benchmarks Study data due to similar samples in size and industry — each involving just over 200 nonprofits. This alignment ensures that the analysis is statistically meaningful and representative of the field.
Technology and tools are the key differentiators here. While the exact tech stack of the industry sample is unknown, we do know that every user in our sample has access to the latest innovations in digital fundraising tools offered by the Fundraise Up platform — solutions like high-conversion donation pages, AI-driven optimizations, and intelligent engagement strategies.
Comparing Fundraise Up user data to industry averages clearly shows that organizations using advanced fundraising technology are outpacing the rest. These insights highlight the potential for tech-driven fundraising strategies to create a brighter outlook for the future of nonprofit giving. Organizations using Fundraise Up fundraising solutions not only avoided the industry’s decreased donor revenue trends — they reversed it!
Fundraise Up’s platform leverages machine learning to personalize donor interactions, streamline donation processes, and enhance the overall donor experience. Features like Al-optimized upsells and global payment methods help nonprofits increase conversions and drive successful fundraising campaigns. Our online fundraising tools boost donation volumes and increase revenue, while also strengthening donor relationships and saving organizational resources.
Looking ahead
We believe that ongoing user data analysis is key to uncovering valuable insights and evolving trends in nonprofit fundraising. Fundraise Up will continue to compare our data against industry-wide reports, identifying trends and essential insights to help nonprofits optimize their fundraising efforts.
Interested in learning how Fundraise Up elevates fundraising strategies? Reach out to learn more about how our platform can maximize your organization’s fundraising potential.