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 Foundation News

A customized collection of news from foundations from around the Web.

West Michigan Schools Receive Grant for Healthier Food Options.

"It will make sure the foods we make reflect the communities that we live in, and being able to make sure our foods are culturally relevant and filling those spaces that normally aren't...more

Insider Q&Amp;A: Jean Case on Impact Investing and Esg Backlash
Foundation: Case Foundation

Jean Case, who rose to fortune and fame as an executive at American Online, has been a fan of impact investing since before it had that name. It looks to invest in projects and companies that...more

Ex-Beauty Queen, Tomi Salami, Unveils Elite Project

If you're a high school student in Lagos, Nigeria, you're going to want to catch them young. That's because Tomi Salami, a former beauty queen and social entrepreneur, is organizing an...more

Primer on an Emergent Core of Business and Communication

When it comes to corporate social responsibility, there's no continent as steeped in tradition as Africa. In fact, Ujamaa and Ubuntu "demonstrate collective and communal involvement in the...more

Africa Social Impact Summit 2024: Lagos to Host over 5000 Participants

The Islamic State in Iraq and Syria (ISIS) is claiming responsibility for an attack last week that killed at least 24 people and injured scores more in northern Iraq, the New York Times...more

Ex-Beauty Queen Spearheads Environmental Awareness Project in Lagos

A former beauty queen in Nigeria is trying to change that. Tomi Salami, who was crowned 2012's Miss Tourism Nigeria, has founded the Aurora International Charity Foundation, which aims to raise...more

A Cooking School Is Helping Young People with Disability Learn Skills That Will Help Them Find ...

When Montana Whiteley and her brother Jamieson were young, they both had Fragile X syndrome, a genetic condition that causes a change to one of the genes on the X chromosome. It can make everyday...more

Redefining Development

Anand Mishra was 8 years old when he watched his grandfather break the social segregation between Nepal's upper and lower castes by working with the Dalits in their village, Tilathi,...more

5000 Participants to Attend Africa Social Impact Summit

"More than half of the targets" set by the United Nations for sustainable development are "weak and insufficient," says Lagos State Commissioner for Social Development, Zainab Ambrose. "We need...more

Mellon Foundation, Neh and Others Fund Grants for Vi Architecture Center
Foundation: Community Foundation of the Virgin Islands

The US Virgin Islands' Old Barracks was built in the early 1800s as a military barracks, but it's long since been forgottenuntil now. The Virgin Islands Architecture Center for Built Heritage and...more

Caroline Diehl is a serial social entrepreneur in the impact media space. She is Executive Chair and Founder of the UK’s only charitable and co-operatively owned national broadcast television channel Together TV, the leading broadcaster for social change runs a national TV channel in the UK and digital platform which helps people find inspiration to do good in their lives and communities.

Federal Government Grant and Assistance Programs

Edited by: Michael Saunders

© 2008-2024 Copyright Michael Saunders