The future of giving
Nonprofit leaders predict the next chapter of operations
by Kate HaydenAfter six months of changes during the 2020 COVID-19 pandemic, Iowa nonprofits quickly altered nearly every aspect of daily operations. Going forward, what changes are temporary, and what will remain?
The Business Record asked Central Iowa nonprofits to predict the next big changes in fundraising, hosting events and connecting with donors.
In the next five to 10 years, what will be the biggest challenge for nonprofits in engaging their most active donor base?
“One major challenge will be the economic downturn caused by COVID-19, which will likely reduce fundraising for several years as families across the country recover. Another challenge will be getting our message through other noises competing for attention. We need to speak powerfully and clearly about the needs of our clients and the impact we are already making. We need to provide engaging, regular content to donors and advocates and promote influencers among our donor base who can speak to our cause in a peer-to-peer environment. Without these communication strategies, our message will get lost among all the things competing for our attention.” Erin Kim-Cho, director of communications and development, EMBARC
“As our economy experiences the full effect of the pandemic and mounting natural disasters due to climate change, I believe there will be an increase in social interest with perhaps a decrease in disposable income.” Melissa Vine, executive director, Beacon of Life
Who do you predict will play a bigger role in fundraising: individual donors or corporate/organizational philanthropy? Why?
“It’s going to take all of us! Individual donors will need to stay engaged in and contribute to their local communities; corporate foundations will need to stay connected to the communities they work in, understanding the diverse needs and the way in which they can make [an] impact with their charitable giving. Whether an individual or family, private foundation or corporate foundation, it’s important to know what the community needs are, where you can best align passion or area of interest and impact, and have a strategic plan for giving. The needs are great, the opportunities are great and there is a big role for all of us.” Kristi Knous, president, Community Foundation of Greater Des Moines
Kim-Cho: “We believe individual donors will play a bigger role in fundraising, continuing the trend that has been occurring over the past several years. Donors have more choice about where they want their money to go to, and the digital world allows people to easily find, research and donate to organizations across the world. This is a positive trend for smaller nonprofits, who are getting more exposure and more donations through social media and websites.”
Vine: “The insurance industry, which provides much of the corporate giving in the Des Moines area, is experiencing the negative fiscal impact of growing natural disasters due to climate change. This may have an impact on their ability to support nonprofit work, but in my experience, the insurance businesses that have a presence in Des Moines have been actively engaged in the community. I predict they will continue to make that a priority.”
What upcoming trend in donor outreach or engagement are you most interested in following over the next few years?
Kim-Cho: “We are interested in how nonprofits and foundations are working to integrate more people of color, as well as representatives of the people they serve, into their decision-making process and leadership. In order to retain donors and find new ones (especially in the new generation of diverse young donors), nonprofits will have to show not only how they are working toward social justice and equality, but how they are using grassroots techniques, rather than a top-down approach. Becoming an inclusive, collaborative organization will be a difficult process, but one every nonprofit should be engaged in.”
Vine: “The call has been made loud and clear in 2020 to give attention to social inequities. As more people begin contemplating the reality of racism and other forms of oppression, some will discover that nonprofits have been working at these issues for decades. It is helpful when individuals discover a nonprofit that is aligned with their passion and contribute their time and financial resources to further the work.”
What is one challenge facing nonprofits as they consider their mission and services in light of 2020 conversations around diversity and anti-racism initiatives?
Knous: “So many nonprofits are leaning in and leading in this space and can really be lifted up as exemplary models. I would challenge all of us, from nonprofits to businesses to individuals, to commit to using the 4 Equity Tool, developed by Capital Crossroads. By considering the questions posed in the tool, we make the conscious decision to be deliberate about inclusion and to take the time needed to ensure all voices are represented and considered. The 4 Equity Tool can be found at CapitalCrossroadsVision.com.”
What is one way nonprofits will incorporate values such as diversity and accessibility in their varying missions?
Knous: “I think we start with the admission that we haven’t done enough and that hasn’t been acceptable and isn’t acceptable moving forward. I say ‘we’ because I think most of us need to look in the mirror on this issue, myself included. ... Using the 4 Equity Tool in planning, in reflection and in setting future course is a first step. As is being intentional in our desire to DO SOMETHING as an organization and as a community. We may not get it right every time, but we need to commit to a more inclusive, equitable future for all and do something every single day to move us forward. ... Better. Together.”
Vine: “The volunteers, staff and board should be reflective of the client population with regard to race, age and ability, so that all voices are represented.”
How do you predict donor expectations of nonprofits will change in the next five to 10 years?
Knous: “Given resources will be tight and in high demand as we recover, donors will push like-minded or like-missioned organizations to come together to collaborate, perhaps join forces or align, and to ensure they are functioning as efficiently and effectively as possible.”
Vine: “As our culture becomes increasingly authentic, donors will expect more transparency from nonprofits.”
Following the effects of the COVID-19 pandemic, what do you predict will be the biggest change by most nonprofits hosting in-person gatherings?
Knous: “It’s difficult to predict, not knowing what the future holds in terms of mitigation and safety best-practices, but I think we’ve all seen how innovative and adaptive nonprofits have been thus far. They are creative, flexible, and most importantly, they are telling the story of their impact and engaging donors in new ways to support their work. Our nonprofits will continue to adapt and stay connected to the donors that support them. And frankly, the donors we work with at the Community Foundation have responded very well to the more personalized (virtual) outreach by our team and have enjoyed the individualized communication and conversation we’ve offered rather than the events we’ve typically held.”
Vine: “I believe many in-person gatherings will have online options for participants to attend.”
How likely is your organization to continue hosting online-only or socially distant events in the next five years?
Knous: “I anticipate we will hold both. We’ve seen our reach and attendance increase through the virtual options, so that’s great and something we will want to continue. However, we also recognize our work is about relationships, and we are wired for relationship with one another. I anticipate we will continue to hold nonprofit trainings, professional adviser outreach, donor connection sessions, community convenings and events once we know it is safe to do so.”
Vine: “I believe our organization will continue to host online-only/socially distant events until COVID-19 pandemic is controlled.”