Mike’s Monday Message: Q2 2024 FEP Takeaways for Year-End and Beyond

As we head into the critical year-end giving season, I want to focus on some of the actionable highlights from the AFP Foundation for Philanthropy’s Q2 2024 Fundraising Effectiveness Project report, which was released last week. The report presents both promising gains and some pressing challenges, offering insight into the areas where fundraisers can make the most impact in the months ahead. 

Key Takeaways: 

1. Decline in Donor Participation: Donor numbers have dropped by -3.9% year-over-year, with smaller donors ($1-$100) showing the steepest decline. This signals a weakening in grassroots support, which many nonprofits rely on for broad-based contributions, particularly during year-end campaigns.

What to Do in the Short Term: Strengthen Relationships with Mid-Level and Major Donors: Though small donor contributions have decreased, mid-level and major donors are offsetting these declines, resulting in the increase we saw this quarter in total dollars raised. Strengthening your relationship with these donors may offer some stability as you try to meet year-end goals. Offer these donors exclusive updates, impact reports, and tailored communications to show the unique role they play in achieving your mission.

What to Do in 2025 and Beyond: Though focusing on mid-level and major donors may be profitable right now, in the long-term, nonprofits will want to diversify their donor base to avoid being solely dependent on these groups moving forward. In 2025, explore strategies for engaging small donors, including appealing to Gen-Z, taking advantage of social media, digital platforms, and peer-to-peer fundraising, and investing in monthly giving programs.

2.  Falling Retention Rates: Retention rates are down 4.5%, with a notable -5.8% decline in dollars raised from repeat retained donors. Even traditionally loyal donors are becoming less engaged, making it essential to address retention strategies in the coming months.

What to Do in the Short Term: Focus on Donor Retention: Lapsed donors are crucial to reconnect with during year-end. Personalized outreach that reinforces the difference their gifts make can re-establish their connection to your mission. Implement re-engagement campaigns with tailored messaging and impact stories to bring lapsed donors back on board.

What to Do in 2025 and Beyond: Make sure that you’re thanking the donors that gave in 2024. See how you can use AI tools to make personalization easier and less time-consuming, so it doesn’t fall to the bottom of your list. Find ways throughout the year to engage your donors, without it always being an ask. Keep up with them using multiple touchpoints, reminding them of the impact their donation has had. 

3. Modest Increase in Overall Fundraising: In line with similar trends seen last year, total fundraised dollars have increased by 3.7%, albeit from a smaller amount of donors. This reinforces the need for nonprofits to remain agile, continuously adapting their fundraising strategies to capture as much year-end giving as possible.

What to Do in the Short Term: Create Urgency in Year-End Appeals: Year-end giving is a key time to encourage new or renewed contributions, particularly through time-sensitive campaigns tied to GivingTuesday or tax-deduction deadlines. Emphasize urgency with deadlines and match challenges to drive immediate responses.

What to Do in 2025 and Beyond: Leverage Data for Adjustments: Going into 2025, evaluate what worked and what didn’t in 2024 and adjust accordingly. Use your database tools to track performance, pivot, and adapt your outreach as you see trends emerge. What your organization is experiencing may not be the same as the trends we’re seeing on a broader scale, so keeping track of what is working for you is vital for continued success. 

With strategic planning, focused engagement, and adaptive fundraising, you can ensure your year-end campaigns resonate deeply with supporters, while planning for how you can evolve in 2025. Be on the lookout for the Q3 2024 Fundraising Effectiveness Project report in December. In the meantime, please feel free to email me at mike.geiger@afpglobal.org or connect with me directly on X at @AFPMikeGeiger. I’d love to hear from you.