Artificial intelligence and predictive analytics have captured the attention of the fundraising world. We now all have tools that allow something only a few organizations could do in the past: analysis at scale to detect the passion of donors. However, we hear daily in our consulting work that nonprofits struggle to make use of data in a practical way.
We need to start thinking differently. It is time to use these tools to go beyond wealth ratings and fundraise “smarter.” That means looking past simple wealth numbers to see how and why your donors are engaging with your cause. When you make the shift to putting engagement first, it makes a massive difference for both your goals and the donor experience.
Here are three ways that this “engagement-first” data strategy can quickly impact your fundraising results.
Predictive analytics and AI can transform your fundraising strategy
The most common fundraising strategy today is to make lists of wealthy people and ask them to meet with you. That approach will never go away. With the tools now available to all fundraisers through AI and predictive analytics, you can reach a new level of precision philanthropy and accomplish three things that are crucial to your success:
- Focus on the capable donors who are signaling readiness to make major gifts. Research tells us that few major gift officers will exceed 100 unique prospects visited in a year. That number will be even lower if you are fundraising alongside other duties in a small organization. So, your focus is crucial. Look for high-capacity donors who are also showing engagement and readiness. These donors are opening your emails, clicking, attending events, volunteering, buying tickets, and advocating. They are demonstrating that your mission is part of their lifestyle. Key tip: the engagement model you use must be unique to your organization, because your opportunities to engage are different than other causes.
- Grow your leadership and mid-level giving. In a big campaign, it is smart to focus on the biggest principal and major donor prospects. However, donors who are giving below their capacity but not ready for major gifts can be crucial to your success and are likely your number one revenue boost opportunity. These donors are often just below the surface of your “top prospects” and can be detected with smart use of data, engaged at high scale, and energized to step up. Key tip: be ready to show direct impact for leadership giving to these donors.
- Personalize the donor experience. The best fundraising data today now contains not just a look at wealth, but where donors are spending their time, energy, and purpose. That includes better data than ever about where donors are giving outside your organization. Personalization in your outreach makes a big difference, and can more than double response, based on marketing research. A great example is a complex nonprofit, like a college or university. You can create opportunities for giving that might include scholarships, the arts, support programs, athletics, and even medical research. If you have data about what your donors are giving to elsewhere the world and what they are opening and clicking on from you, you can tailor communications and appeals to what you already know they care about. Key tip: work to personalize based on both the “how” and the “why” of where a donor spends their energy.
Fundraising smarter boosts results and provides a better donor experience
Fundraisers are focused on meeting goals. That is our job. When we use data to listen to what donors care about and align our purpose and message with theirs, we amplify the joy of giving. Having a purpose, especially later in life, is strongly associated with living longer. Data is not just about hitting targets, it is about serving donors.
Artificial intelligence, predictive analytics, and wealth data are becoming more accurate and cost effective. By embracing the dual purpose of driving results and connecting with donors where they find meaning, you can start fundraising smarter. It is crucial to remember to craft that strategy in a way that is specific to your organization’s history, culture, and resources.
More than 60 organizations have taken this leap with us using JGA’s Acuity fundraising data solutions. On average, we find 60% more top prospects than are currently in gift officer pools. We think this is a game changer. An “engagement-first” fundraising strategy meets donors where they are placing their energy, and it can significantly boost your fundraising results.
Contact us today to talk about how you can fundraise smarter with data-driven, customized consulting that fits your mission and resources.