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The non-profit and fundraising worlds had a strong and successful year in 2016 but now the question is, will this trend continue into 2017? With so much change occurring in the new year Andrew Payne, director of product marketing and product management at Abila noted, “The volatility of the economy, political instability and greater demands on non-profits will require a bit of rethinking and refocusing for many organizations going into the new year.” The National Council of Non-Profits has identified several of these trends and issues expected to impact non-profits and development efforts in 2017.
To review these trends for the non-profit industry in more depth, download our free report.
With more federal dollars going towards military spending and infrastructure projects there could be a shrinkage of financial support for non-profits and other social programs. This would then place more financial stress and pressure on charitable organizations.
Analysts have shown that the President supports a cap on itemized deductions which could lead to a 4.5 to 9 percent fall in charitable donations. But, Speaker Paul Ryan promotes tax code changes which helps encourage charitable giving.
During President Trump’s campaign he condemned colleges that increased tuition rates while compiling large endowments. This suggests that changes in tax law could encourage higher education to lower tuition costs for students. Which would then likely influence state and local governments as well.
The Non-Profit Times, has indicated that more for-profit chief financial officers are considering a transition to the non-profit sector. They also indicated that, “With these personnel moves, organizations will likely be much more data – and ROI-driven, creating new business models and financial performance expectations at nonprofits.”
“Clustering” is also expected to gain traction in the non-profit world in 2017. This involves combining personnel, resources and overhead which will aid smaller non-profits and help them compete more effectively by expanding their services.
Digital technology has been the new and trending platform for non-profits to reach recipient’s but it is important to remember the basic modes of communication. Roger Craver and Tom Beldford, editors of the Agitator, stated “Successful non-profits will benefit from mastering two seemingly paradoxical trends; the increased use of technology and digital data and a return to the ‘old fashioned’ pre-digital methods of communication and relationship building.”
Competition for donors is on the rise and it is becoming even more critical for non-profits to use business intelligence tools to improve their CRMs. Claire Axelrad, J.D, CFRE, and principle of Clarification has emphasized the concept that retention is more cost-effective than acquisition. Having a deeper understanding of current donor can help identify and cultivate influencers and help find new donors in a timely manner.
Being aware of influences on the non-profit/fundraising industry is imperative when developing successful strategies to find and retain donors both today and in the future.