Digital Engagement Offers A Broad Reach And Personal Touch For Nonprofits

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1 Digital Engagement Offers A Broad Reach And Personal Touch For Nonprofits GET STARTED

2 Overview As supporter demographics shift, nonprofits need to be able to engage with their supporters through their channels and devices of preference, which today are increasingly digital. Digital channels allow nonprofits to form easy, effective, and emotional connections with their supporters. Several social media fundraising campaigns that have gone viral in the past year showcase the power of digital fundraising and marketing, which will only grow in importance in the future. However, the transition from traditional media channels to digital channels is not always easy, requiring the right skills, strategies, and tools to succeed. Those that can unlock the potential of digital channels will create deeper supporter engagement and better deliver their message to the world. This Blackbaud-commissioned profile of North American nonprofit marketing and fundraising decisionmakers evaluates the ways data professionals access and analyze data today and the challenges with doing so, based on a custom study. Geographies Revenue size Department Title 95% US 5% Canada 31% More than $20M 13% $11 to $20M 13% $6 to $10M 43% $1M to $5M 47% Fundraising/development 24% Donor management/ membership services 20% IT 9% Advertising or marketing 32% C-level executive 8% Vice president 31% Director 28% Manager

3 1 2 3 Digital Channels Are Already Primary Channels For Supporter Engagement Today Consumers of all demographics have already adopted digital channels for personal and professional communication and interaction. It s no surprise that digital channels are some of the most important channels that nonprofits leverage to communicate with supporters today. Our survey shows that established digital channels like and the Web are used extensively for fundraising, marketing, and donor management activities because of their effectiveness, reach, ease of use, and cost of operation. In the next few years, these channels will only grow in importance, as additional investments in digital channels will make it easier than ever for nonprofits to engage with supporters. Over 70% of nonprofits use and website channels for fundraising, donor management, and marketing activities today.

4 1 2 3 Social Media Will Continue To Gain Momentum Campaigns like the ALS Ice Bucket Challenge highlight the potential of social media for peer-to-peer supporter engagement. Our survey shows that 64% of nonprofits use social media today for fundraising, and 79% use it for marketing. Social media will continue to grow rapidly in importance in the next few years. Nonprofits will invest more in social media in the next two years, and by 2018, nonprofits will see social media as one of the most important channels. Eighty-two percent of survey respondents will increase their investment in social media in the next two years. Seventy-four percent of respondents see social media as one of the most important channels in two years, the No. 1 response. Our survey shows that the top emerging digital trends that will be most important in two years are social media giving and crowd fundraising, underscoring the importance of social media for nonprofits.

5 1 2 3 Print Mail Declines As Supporter Demographics Shift Today, print mail remains a top channel for fundraising and is used by three-fourths of nonprofits. However, our survey suggests this will decrease in the next two years, as organizations shift funding from traditional channels like print and call centers to digital channels. Print is already used less today for activities like donor management and marketing. Print campaigns are often much more expensive than digital campaigns. They also require outside agency assistance to produce, and they lack the level of personalization that can be attained through a digital campaign. As younger supporters increasingly become the target of fundraising campaigns, nonprofits will need to connect with them on the channels of their choosing, which are predominantly digital. Print mail investment is stagnating and declining in the next two years. Thirty-six percent of nonprofits said their investment will stay the same, and 26% said their investment will decrease in the next two years.

6 1 2 Nonprofits Are Investing In Digital For The Future As established digital channels become the preferred channels of supporters, and newer digital channels like social media, video, and mobile gain momentum, nonprofits will continue to invest heavily in digital. Investment in digital channels can make communication and engagement with supporters easy and effective, but it can also be deeply contextual, leveraging giving history and supporter information to help build and nurture an emotional relationship. This is increasingly important as many nonprofits shift their focus from pure fundraising to long-term donor engagement and stewardship. This emotional connection is why in-person events are still essential for nonprofits in the future, and why nonprofits will continue to invest in these events at the same level as digital channels. Sixty percent of nonprofits said they will increase their investment in mobile applications in the next two years. Mobile payments is also a top emerging digital trend for the next two years.

7 1 2 Nonprofits Must Make Sure They Have The Skills And Tools To Drive Digital Engagement While most nonprofits plan to invest in digital for the future, lack of funding is the top barrier to digital engagement today. However, once budget is secured, another set of barriers can limit digital s effectiveness for nonprofits. Nonprofits must be sure they have the expertise, tools, and strategy in place in order to drive value from their investment in digital. Many nonprofits today do not have the modern systems and automation to take advantage of all digital can offer, and even if they have a strategy, they lack the manpower and know-how to execute on it. Thirty-six percent of nonprofits lack the IT expertise to move to more digital engagement. Twenty-seven percent don t have the right tools, and 23% lack a digital strategy.

8 Digital Channels Drive Awareness And Deeper Supporter Engagement For nonprofits, success depends on forming lasting relationships with their supporters, and digital channels are a key enabler of this. The contextual nature of digital communications means messaging can be more personal and effective, allowing for deeper supporter engagement. Digital also enables nonprofits to get their message out more easily and frequently. In this way, digital channels enable nonprofits to save money, better deliver their message/mission, and increase fundraising.

9 Conclusion Nonprofits will succeed through a balance of digital engagement and personal touch. The right tools, strategy, and expertise are important to unlocking the potential of digital channels. You must develop a comprehensive digital strategy that will make the most of your technology investments across all digital channels. Donor management technology is key to developing more personal relationships with your supporters. Your channels need to be integrated and work together to provide supporters with an optimal experience on the channels they choose to use. Adapting digital tools and strategies to the nonprofit industry requires industry expertise and the awareness of the emotional connection that is essential to driving lasting supporter engagement. METHODOLOGY This Technology Adoption Profile was commissioned by Blackbaud. To create this profile, Forrester surveyed 102 marketing and fundraising decision-makers at North American nonprofit organizations. The auxiliary custom survey was completed in February For more information on Forrester s data panel and Tech Industry Consulting services, visit forrester.com ABOUT FORRESTER CONSULTING Forrester Consulting provides independent and objective research-based consulting to help leaders succeed in their organizations. Ranging in scope from a short strategy session to custom projects, Forrester s Consulting services connect you directly with research analysts who apply expert insight to your specific business challenges. For more information, visit forrester.com/consulting. Project Director Andrew Magarie Market Impact Consultant 2016, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. For additional information, go to forrester.com. [1-WOTKCL]