What will digital fundraising look like in 2023?

There is good news in the charity sector. In facing the pressures of the cost-of-living crisis, charities are “cautiously optimistic”, according to new research from donations, fundraising, and events platform Enthuse. 

Though the crisis has posed pressures around income, which the report shows are still very much present, 64% of fundraising income has either increased or stayed the same in the past year, and nearly three quarters (72%) of respondents were either very or fairly optimistic about the year ahead. 

So while the current economic climate is challenging, there are positives to be found. Below, we look into the research and discover more about the impacts of the cost-of-living crisis on charities as we enter 2023.  

Fundraising events and activities 

Fundraising events and activities are seen by over half of the charities surveyed as the fastest-growing source of income in 2023. 

But the report notes two major ways in which the cost-of-living crisis will create challenges for charity fundraisers: supporters will have less money to give than usual, and fundraisers themselves are reluctant to ask for donations because of the crisis. 

To help with effective fundraising, the research has found that there are numerous technological developments that charities can consider, with AI being a popular option right now to help personalise user journeys. 

Mass events are highlighted as a popular strategy for fundraising, with the majority (81%) of charity leaders participating in the research saying they are planning to use them. 

The report also shows that a common cause for optimism about the coming year is supporters’ willingness to get involved in virtual and hybrid events. 

Changes in fundraising platforms 

Since the beginning of the COVID-19 pandemic, charities have increasingly been using digital fundraising tools, but the 2023 report shows that the methods of digital fundraising are now changing. 

Charities are increasingly using charity-branded third-party platforms as opposed to running digital fundraising in-house or using unbranded third-party consumer platforms.  

Despite this, the research found that 64% of charities are concerned about how such third-party platforms deal with their data, including concerns about platform owners recontacting or collecting data from supporters. 

Reactions to new technologies 

When it comes to social media, TikTok is on the rise for charities, with 34% already using and 22% trialling the app. Podcasts are also being used for digital fundraising, with 30% using them and 26% trialling them.  

Other technologies are also being used to improve the giving experience in-person, with a growing use of contactless payment and QR codes. 

The research found that most charities are not adopting technologies such as VR, augmented reality, and the metaverse, however a surprising number of charities are engaging with the idea of using cryptocurrency for donations, with half of all surveyed charities at least giving some consideration to the technology. 

Team morale has also remained relatively high in the charity sector since last year, with 83% ranking morale as either good or excellent. The report correlates this to increased flexibility around working from home, a trend which in part results from the increased use of certain technologies for remote working.  

In addition, more than half (55%) of charities are optimistic about 2023 because there are more opportunities to make use of digital channels. 

Charities can learn more about how digital fundraising can help them tackle the cost-of-living crisis at Enthuse’s panel session ‘Digital fundraising trends and planning for the future’ at our #BeMoreDigital Conference on 9 March 2023.

The panel will discuss the up-and-coming digital and tech trends and how charities can effectively include these in their fundraising strategy for the future.