Why Is It so Much Harder for Nonprofits to Raise More Funds Online in 2023?

"To sum it up, it is 3 times harder to acquire a new donor today than it was 10 years ago," writes Mathieu Stern in the Next Web.

Stern, who has worked with nearly 100 nonprofit organizations over the past decade, says they all want to do more good and need to generate new donors.

But "with the rise in customer acquisition costs," the future of digital fundraising is changing rapidly, forcing nonprofits to adapt and find new ways to engage donors.

Customer acquisition costs, or CAC, have been steadily increasing over the past decade, making it harder for nonprofits to reach their fundraising goals.

In 2012, the average CAC for nonprofits was $93; in 2018, it's $141, a 51% increase.

"Still, despite increased costs, nonprofits must continue to prioritize customer acquisition as a key component of their fundraising strategies," Stern writes.

There are a number of solutions to this problem, including crowdfunding and using psychological nudges such as social proof to get donors to give more.

But retention is another problem, with the average retention rate for new donors being 46%.

"By working harder to keep new donors more engaged, organizations can increase revenue without increasing expenses," writes Stern.

"This means that even as nonprofits are spending more money to acquire new donors, they are also

Read the Entire Article


Selected Grant News Headlines

A customized collection of grant news from foundations and the federal government from around the Web.

$30 Trillion in U.S. Wealth Will Transfer to Younger Women in the Next 10 Years

Women currently hold just 28% of the world's wealth, but that could soon change. A new study from the Bank of America Institute finds that by 2030, women in the US will hold more than half of the...more

World'S Largest Climate Finance Fund Explains Investment Approach

The Green Climate Fund is the world's biggest dedicated fund designed to help developing countries mitigate and adapt to climate changeand it's looking for new investments. Henry Gonzalez, the...more

M3F Music Festival Funds Art Programs, Other Nonprofits in Arizona

For two days in March, music fans gathered in Phoenix's Steele Indian School Park for the McDowell Mountain Music Festival, which featured electronic dance music (EDM), R&B, and indie rock. But...more

Study: 36% of Nonprofits Have Seen Funding Growth After 2022-23 Financial Upheaval

When it comes to fundraising, not much is known about corporate donors. But when it comes to targeting them, not much is known about corporate donors at all. That's according to UHY Advisors'...more

Uapb Chancellor'S Scholarship Gala Celebrates Philanthropy and Elegance
Foundation: Rockefeller Foundation, Winthrop Rockefeller Foundation

The University of Arkansas at Pine Bluff is honoring five people for their "extensive community involvement, philanthropic endeavors, and exemplary service to the community," per a release. The...more

Uniting Through Volunteerism: National Volunteer Month Q&Amp;A with Besa

"I was working in corporate America for one of the world's largest retail companies, and it was challenging and wonderful in many ways. But I was finding my truest fulfillment on Saturday...more

Firstbank Charitable Foundation'S Better Giving for Greater Impact Summit

If you're looking for a way to give back to your community, FirstBank has just the thing for you. The bank's Charitable Foundation is holding its first-ever Better Giving for Greater Impact...more

Gresb Announces Majority Investment from General Atlantic'S Beyondnetzero Fund to ...

It's a sign of the times: A real estate research firm has been bought by a private equity firm in a deal that values the company at more than $1 billion. The New York Times reports on GRESB's...more

Unicef Backs Young Innovators To Tackle The Climate Crisis

"The climate time-bomb is ticking. We need to seize the opportunity to invest in credible innovations that can contribute to reaching our global targets," UN Secretary-General Ant ? nio Guterres...more

Greenmoney: Investing in the Future of Water and Sanitation

Matt Damon and Gary White are putting their money where their mouth is. The two are co-founder and CEO of WaterEquity, a nonprofit that aims to improve access to safe water and sanitation around...more



Social Entrepreneurship
Spotlight



Why People Buy from Social Enterprises?


The Guardian has compiled a list of responses to its latest open thread, and has announced the winner of the social enterprise gift hamper packed with presents.



Federal Government Grant and Assistance Programs


Food for Progress | Safe and Drug-Free Schools and Communities_State Grants | U.S. Ambassadors Fund for Cultural Preservation | ARRA National Health Service Corps Loan Repayment | Forest Land Enhancement Program | Management Initiatives | Community Capacity Development Office | St. Mary Storage Unit Facilities Rehabilitation Project | | Site Style by YAML | Grants.gov | Grants | Grants News | Sitemap | Privacy Policy

Edited by: Michael Saunders

© 2008-2024 Copyright Michael Saunders