As the COVID-19 pandemic disrupts businesses, philanthropic activities are affected, yet charitable efforts have to go on as many people require aid. The charitable works are also changing as time goes by. The philanthropic traditions are changing, and more changes are expected in 2021 as we advance.
The following are the philanthropic trends you should expect in 2021:
- Continuation of virtual fundraiser events.
Following the COVID-19 pandemic outbreak, raising funds has moved from physical to virtual fundraisers as the virus’s spread doesn’t allow in-person events. NGOs had to innovate new ways of holding the fundraisings; hence came up with the virtual events. Now that COVID-19 is not yet over, the organizations will continue holding the fundraising events virtually.
Virtual events are advantageous as the total collections have far passed the number of funds collected before. For instance, Upaya Social Ventures reported an increase of 142% in their annual collections. The virtual events have no limit to geographical locations, and the cost of holding is less for both the organizers and donors.
- Rise of virtual recurring donations.
As recurring donation programs continue to grow to give a predictable revenue stream, organizers hold them virtually. Donors are contributing monthly through online platforms. Organizers have realized that recurring donations raise more funds more than annual events. According to research carried out by the State of Modern Philanthropy, one-time donors who converted to become recurring donors top up their monthly contribution with an annual gift.
- A strong connection between nonprofit and for-profit entities.
2021 will see more collaboration between nonprofit and for-profit organizations. Nonprofit entities rely on funding from for-profit businesses. As more people will be looking to get help due to the pandemic, companies will be relied on to provide NGOs’ financial support. Even companies’ employees are still pressurizing their bosses to offer more support towards philanthropic efforts.
- Connecting with donors through online platforms.
Nonprofit organizations need to keep donors engaged throughout the year to build a strong bond and keep them aware of the utilization of their contributions. Since physical engagement is impossible, online platforms will engage donors, primarily through video conferencing.
- Diversified sources of donor funding.
More people will require help as the impact of COVID-19 hits in 2021. Nonprofit organizations will have to diversify their strategies of raising funds to meet the enormous demands. Nonprofit organizations will be sourcing funds through crowd-funding campaigns, donation pages, peer-to-peer campaigns, and ticket events.
As we match forward to 2021, the fortunate have a responsibility of helping the less fortunate. The fortunate should join hands to support NGOs as the future is bright as long as we have a unified social sector.