The Evolution of Fundraising

Fundraising, like most things, has undergone a huge transformation in the past 50 years, thanks to advances in technology and the ever-expanding digital world.

The ways we raise and give money constantly change due to new situations, needs, priorities, and technologies.

But how did charities fundraise before everything went digital? And what new fundraising methods have emerged in recent years?

Let’s go on a little journey through time and find out.

The ‘Olden Days’

Fundraising has always been about connecting donors with a cause. Fifty years ago, volunteers organised fundraising activities to do just that. From flag days and cake sales to sponsored walks and jumble sales, the activities may not have been very efficient or sophisticated, but they got the job done.

In addition to events, asks were made by telephone, hand-written (yes, hand-written!) letters and door-to-door fundraising.

By 1980, advances in technology meant that non-profits were experimenting with TV advertising and live broadcast telethons.

The Worldwide Web

In 1990, everything changed with the advent of the Internet.

At first, charities used it in a similar way to print and direct mail - websites provided static information about their causes and beneficiaries, much like a brochure.

As charities became more comfortable with technology, websites became more hi-tech and interactive. And with the advent of online payment systems, such as PayPal, which was founded in 1998, people became more comfortable paying for things online.

Social Media

In the early part of the 21st century, the Internet became more interactive with the advent of social media sites. Facebook entered the scene in 2004 and offered charities an easy and cost-effective way to communicate with donors and run fundraising campaigns.

Other social sites soon followed suit.

Online Events

Everything ticked along nicely until 2019 when COVID-19 hit.

The pandemic had an enormous impact on charities, not least because it prevented them from holding fundraising events (a major source of income for many). Glitzy balls, gala dinners and sports events were banned for almost two years, as was any face-to-face contact with donors.

In order to survive, charities had to adapt and embrace digital fundraising: Online events became a lifeline in the fundraising calendar.

Fast forward to 2022, and although physical events are returning, virtual events continue to be a valuable source of income and are likely to be a staple in the fundraising toolbox going forward.

The Future is Online

A report by WPNC found that online giving doubled during the pandemic, with online donations growing by 115% in volume and 97% in income.

The stats say it all. Online platforms such as JustGiving and GoFundMe have made it easier than ever for people to donate.

Social media has also evolved, with Facebook’s birthday fundraisers and Instagram’s ‘add a fundraiser’ function, making fundraising easily accessible and user-friendly. And then there’s mobile giving. The public’s appetite for mobile technology has grown markedly in the last few years. Today, at least eight out of ten adults use a smartphone and spend more than two hours online on their devices each day.

Savvy charities have invested in mobile tech, enabling them to run campaigns on mobiles and accept donations by text and QR code. And these organisations are reaping the rewards, as text donations increased by 64% to £65.8m in 2021.

As mobile technology advances so will mobile giving.

This is one fundraising method that’s here to stay.

Cashless/Contactless

The move away from cash towards card and contactless payment methods has been happening for years.

Debit cards have been the preferred method of payment in the UK since 2017 and the simple act of tapping a card on a machine is fast becoming the go-to method of cashless payment, particularly for those looking to donate to charities.

It's predicted that by 2027, 36% of payments will be made via contactless methods – as opposed to 16% with cash. So, if you’re not set up for contactless, you’re going to miss out.

Demographics

In terms of demographics, historically, the majority of charitable donations came from those in the 40-50 age bracket, as they typically had the largest amount of disposable income.

As such, this was the group that organisations targeted with their fundraising campaigns.

However, this has shifted with the surge in online fundraising. Today, millennials are the largest donating demographic, with around a third of Gen Z donating to charitable causes each year. (It’s worth noting that, in contrast to older generations, young people tend to donate smaller amounts to multiple charities instead of committing to a single cause).

The Evolution of Fundraising

As you can see, fundraising has come a long way, but this isn’t the end of the story.

Technology, trends and ideas will continue to evolve, and the fundraising landscape is likely to have changed beyond all recognition again in another 50 years.

Until then, if you’re in the market for a new team member, give us a call on 0203 750 3111.