More than half of charities are ending the year with a budget shortfall, according to a new survey of nearly 2,000 nonprofit professionals. Much of that missing revenue was forfeited when nonprofits canceled in-person fundraising events due to Covid-19.
Nearly all respondents to the survey, conducted by the fundraising technology company OneCause, said their charity typically holds at least one fundraising event each year, and 48 percent said their nonprofit canceled an event this year. Among groups that raised less money than they expected, 66 percent said they canceled at least one fundraising event.
While social-distancing measures challenged fundraisers, the survey found that new approaches to virtual events show promise. Charities that pivoted to an online event, or one that mixed in-person and virtual experiences, were 10 percent more likely to meet or exceed their original 2020 fundraising goal. What’s more, among the 62 percent of groups that moved an in-person fundraising event online, 70 percent said it was a success. Just 3 percent said it was not successful at all.
The survey identified some key features that helped virtual events succeed. For example, 66 percent of respondents said it was critical that an online event was easy to view on a smartphone or tablet. Half said virtual events must include both pre-recorded and live content. Forty-seven percent said opportunities for attendees to engage with the event on social media were critical.
Predictably, 95 percent of nonprofit professionals said forfeited revenue due to Covid-19 was one of the biggest fundraising challenges they faced this year. Another 88 percent said donor engagement was among their toughest challenges. And 85 percent said year-over-year fundraising growth and donor fatigue were top obstacles.
When asked about their primary goals for next year, most respondents said they hope to continue securing gifts from existing donors. Getting major gifts was another high priority, as was continuing to be innovative in planning events next year.
Respondents were mixed about whether in-person events without a virtual component would return next year: 55 percent said they expected to hold one in 2021, while 45 percent said they were not planning any.
Among the other findings:
- 64 percent of nonprofits that held benefit runs, walks, or bike rides said their event was successful.
- 42 percent said their charity will hold an event in 2021 that features both in-person and online activities. That’s almost twice the share of nonprofits that planned an event this year that blended in-person and online components.
- At roughly one in five nonprofits, the fundraising plans for next year are still up in the air.
