The Digital Disruption of Fundraising
“Fundraising used to be quite straightforward and simple. There were only a small number of channels to reach an audience. Today, it’s so fragmented, and the old methods no longer work as well.”
The increasing reliance on digital platforms has led to a more complex and costly environment. “The big challenge that we’ve got is that with so many digital channels, it doesn’t work as well as we need it to. And you’ve got quite generational splits as well in terms of the way that people still consume fundraising messaging. The cost of fundraising has gone up to cover so many different channels.”
However, digital also offers incredible potential: “If we can get digital platforms working better, the opportunity is phenomenal. The reach and affordability are there, we just need to adapt.”
“Saying that, what digital allows is for certain fundraising activities, like when an emergency breaks, the ability to reach large numbers of audiences quickly and dynamically is huge. That’s where digital channels offer such great opportunities.”
The Challenge of Short Attention Spans
One of the biggest hurdles in digital fundraising is capturing attention quickly. “You have 1.8 seconds on a mobile device to get someone’s attention. And if you think about the principles of fundraising, it’s about storytelling. Trying to tell a story in 1.8 seconds is nigh on impossible.”
Where fundraisers once had minutes to engage supporters, now they have mere seconds. “In the traditional media, we had much longer periods with long letters, telephone calls, and stopping people in the streets to tell them a story. It hasn’t translated comfortably into digital.”
“And that is causing challenges as we try to work out ways to scale it. That’s the big challenge, how do we scale storytelling in a context where people have very short attention spans?”
The Power of Storytelling in Fundraising
While platforms and audience behaviours have changed, the essence of what makes fundraising effective remains the same: great storytelling. “Storytelling is one of the key foundations of fundraising, and it’s one of the things that hasn’t changed over time.”
So what makes a compelling fundraising story?
- Authenticity: “One of the key things that is absolutely grounding in telling a good story.”
- Clarity: “Donors need to be able to understand what the problem is, what the solution could be, and what their role is in that.”
- Tangibility: “If you’re telling a story, use those ingredients – authenticity, urgency, tangibility -as your checklist.”
- Urgency: “If you put those ingredients together, you’ve got the shape of what gets the best response from a donor.”
Maximising Impact on a Tight Budget
With fundraising costs rising, charities, especially smaller ones, must be more resourceful than ever. “Maximising impact on a tight budget is something all fundraisers have to learn. From the moment you start in the sector, you’re always looking for ways to do more with less.”
“If you happen to be at one of the big, top five charities, you’re going to have reasonable budgets, but you’re still trying to do a lot with relatively little compared to a corporate. If you’re in a smaller charity, you might be wearing multiple hats and looking at things differently.”
Digital channels have been a game changer for smaller organisations, allowing them to run campaigns that were once out of reach. “One of the key things that’s evolved over the last 15 years is how digital channels have allowed smaller charities to reach more people in a cost-efficient way. They can now run digital appeals and peer-to-peer campaigns, whereas before they would have been locked out due to cost.”
For larger organisations, the challenge is different: “It’s a more competitive market now, and that’s driven up fundraising costs across the board. Larger charities have to leverage both traditional and digital channels, which has increased their cost base.”
Engaging Board Members in Fundraising
Fundraising success is often linked to how engaged board members are. “The success of involving board members in fundraising varies greatly depending on the organisation and its board makeup. Some boards are designed with fundraising in mind, others focus purely on governance.”
However, there is a clear trend towards boards playing a more active fundraising role. “Most board members are fascinated by fundraising but don’t know how it works. If you take them on a journey, involve them in strategy discussions, and present clear investment models, they are far more likely to engage.”
“One of the things I absolutely observe is that most board members are fascinated by fundraising, but nobody’s really taken the time to educate them on how it works. They’re very receptive when there’s clear modelling and investment strategies presented.”
The Untapped Power of Video in Fundraising
Despite video being a powerful storytelling tool, it remains underutilised in the sector. Many charities still view video as a luxury rather than a necessity. However, the way people consume content has fundamentally shifted, making video a critical tool for engagement.
“I really wish we would use more videos. Given digital consumption habits, video has never been more important. Yet, when we audited 50 charities, very few used video effectively.”
Video offers an immersive way to connect donors to the impact of their giving. “There are so many opportunities for immersing supporters and making them feel great about either having given a donation or talking to them about the problem and the need.”
However, many charities are still hesitant to adopt video as a core component of their donor communications. “We found that very few charities use video in a thanking situation, and yet it can be so powerful in making donors feel more connected.”
With the rise of digital platforms, there’s an urgent need for charities to shift towards video storytelling. “It’s not just about using video occasionally, it’s about embedding it into every step of the donor journey to build deeper connections and long-term engagement.”
The Biggest Challenges Facing Fundraisers
The fundraising sector is at a crossroads. “We’re not convincing more Australians and New Zealanders to give. We’re relying on a smaller number of donors who are giving more. But that’s not sustainable long-term.” This increasing reliance on a shrinking donor base creates vulnerability, as economic shifts or changing priorities could significantly impact funding.
Another challenge is engaging younger generations. “Younger generations aren’t necessarily seeing or having the same connection to charities as older generations did. Will that change as they age? We don’t know, but the connection isn’t there.”
There’s also the issue of trust. With growing scepticism towards institutions, charities must work harder than ever to demonstrate transparency and tangible impact. “We need to be proactive in showing supporters exactly where their money is going, and why their support is crucial for long-term change.”
The Greatest Opportunity: Gifts in Wills
Amidst the challenges facing the fundraising sector, one of the most promising areas for growth is legacy giving. “Gifts in wills is the greatest growth opportunity for charities.” With an ageing population and an unprecedented intergenerational transfer of wealth on the horizon, this is a crucial moment for charities to establish sustainable funding for the future.
Despite its potential, many charities are missing opportunities to effectively promote legacy giving. “We are not creating television ads, putting video content on social media, or embedding this into our brand stories enough.” Legacy giving needs to be an integral part of a charity’s long-term engagement strategy, rather than a standalone campaign. Successful organisations embed it into their donor communications, ensuring that it is seen as a natural and impactful way to give.
One of the biggest hurdles is keeping the conversation ongoing. “We need an always-on approach so that when someone updates their will, they remember us.” Legacy giving is not about immediate action but rather staying top of mind, ensuring that when the time comes to update a will, supporting a cause is an obvious choice.
Education is another vital component. “Many donors don’t realise how easy it is to include a charity in their will. We need to educate them. Video content, personal donor stories, and case studies can make the concept more relatable and compelling.”
By prioritising legacy giving as a key part of their fundraising efforts, charities can secure transformational funding, ensuring their mission continues for generations to come.
Final Thoughts
The future of fundraising lies in embracing change, harnessing the power of storytelling, and fostering meaningful donor relationships. As digital channels continue to evolve, organisations that remain agile and innovative will be the ones that thrive.
“Those who embrace innovation, invest in storytelling, and build stronger donor relationships will thrive in this new era of fundraising.”
More than just securing donations, fundraising is about creating lasting impact. Charities must continually adapt to shifts in donor behaviour, digital consumption, and trust dynamics to remain relevant and effective.
“Fundraising isn’t just about money. It’s about making a difference. And when you work in this sector, you get to see that impact every day. That’s what keeps me passionate about it.”
