Between fundraising shortfalls, inflation, and the rise of artificial intelligence, nonprofits faced a demanding landscape in 2023. As we move through 2024, staying attuned to emerging trends is crucial for nonprofit leaders to ensure their organizations remain resilient and impactful.
To help nonprofit professionals align with these trends, here are some key predictions expected to shape the sector in the second half of 2024, as highlighted by members of the Forbes Nonprofit Council:
1. Nonprofit Collaboration
In 2024, collaboration among nonprofits will be critical. Addressing urgent issues such as human rights, global learning losses due to the pandemic, and climate change-induced humanitarian crises requires innovative and collective efforts. Nonprofits will need to work together to create robust support systems for the social sector (Kyle Zimmer, First Book).
For example, the Art + Sol Festival in Santa Fe, NM, brings together multiple arts nonprofits, local artists, and community groups to showcase visual arts, performing arts, and culinary delights, demonstrating the power of collaborative efforts.
2. Growing Influence of Community-Based Organizations
Community-based organizations (CBOs) will continue to play a crucial role in 2024. CBOs are non-governmental entities operating at the local level to address the needs and interests of specific groups. They can take various forms, such as cooperatives, self-help groups, and associations, and are driven by principles of participation, empowerment, and social justice.
CBOs emerged to fill gaps left by state and market institutions, respond to social movements, and partner with external actors for development and humanitarian interventions (George Hsieh, Community Resource Exchange).
For instance, the Ujamaa Community Resource Team (UCRT) in Kenya collaborates with pastoralist and hunter-gatherer communities to secure land and natural resource rights, supported by donors like the International Land Coalition and the Ford Foundation.
3. Digital Fundraisers and Initiatives
Digital fundraisers and initiatives have become crucial in 2024. Nonprofits that creatively engage their supporters in the virtual space will achieve greater success. Expanding reach beyond in-person events can significantly grow a nonprofit’s mission and impact (Amber Barbach, The Glioblastoma Research Organization).
For example, Non-GMO Project launched a successful digital lead generation campaign with BWF’s help. They targeted Facebook followers with a customized landing page during an Earth Day campaign, gathering 3,000 new leads. This led to three additional campaigns in the same year, significantly boosting their fundraising capacity and diversifying revenue.
4. Diversification of Revenue Streams
Nonprofits will focus on diversifying revenue streams to mitigate potential financial shortfalls. Creating value through new programs and services will be essential, especially with the looming possibility of an economic recession (Devin Jopp, Association for Professionals in Infection Control & Epidemiology).
Diversifying income sources offers several advantages. It reduces dependence on any single funding stream, enhancing financial stability. Methods like stock donations, cultivating major donors, and expanding global outreach broaden donor bases and boost fundraising capabilities. Corporate partnerships, passive income ventures, and targeted grants further fortify financial health.
An example of successfully diversifying revenue streams is The YMCA, which operates fitness centers and other recreational facilities that generate revenue from membership fees and program fees. This earned revenue helps support the organization’s mission to promote youth development, healthy living, and social responsibility.
5. Generative AI
Generative AI will become more integral to nonprofit operations, offering new ways to increase efficiency and manage costs. Nonprofits are leveraging AI to analyze donor data, predict giving patterns, and run more targeted fundraising campaigns. Tools like AI-powered chatbots and analytics streamline tasks, improve communication, and provide valuable insights (Victoria Burkhart, The More Than Giving Company).
For example, St. Jude Children’s Research Hospital used AI to analyze donor data and discovered that sharing patient stories was the most effective way to increase donations. By using cost-per-acquisition bidding on Google ads, they significantly boosted new donor contributions, which now make up a fourth of their total YouTube donation revenue.
6. Influencer Marketing
Nonprofits have begun to venture into influencer marketing to differentiate themselves from other organizations, fulfill content demands, and establish a robust online brand presence. By studying successful influencer campaigns, nonprofits can glean insights into the unique benefits and challenges of cause-based marketing collaborations with influencers. This strategic approach allows nonprofits to effectively engage with their audience, drive attention to their causes, and foster meaningful connections that support their mission-driven initiatives.
For example, Huggies partnered with Social Native to activate over 40 Instagram creators during August. Their campaign pledged to donate a day’s worth of diapers to the National Diaper Bank Network for every pack of Huggies purchased at Walgreens, up to 1 million diapers. Each influencer integrated the statistic “1 in 3 families in the US experience diaper need” into their posts to spark conversations and encourage audience interactions.
By collaborating with trusted mom creators and influencers like Brandon (@dadinsf), Huggies successfully engaged family-focused individuals. Collectively, the campaign posts garnered over 1,000 comments and reached nearly half a million potential consumers, demonstrating the impact of strategic influencer partnerships in nonprofit marketing efforts.
Wrapping Up
Navigating the opportunities and challenges of 2024 requires nonprofits to remain agile and proactive in adopting transformative trends. Whether forging community partnerships, leveraging digital innovations, or harnessing AI for data-driven insights, organizations have a unique opportunity to strengthen their missions and expand their impact.For nonprofits seeking strategic guidance to navigate these trends effectively, Anchor Marketing offers expertise and support tailored to your organizational needs. Connect with us at hello@anchormarketing.ca to explore how we can collaborate in driving your organization’s success in the years ahead.
