2023 Giving Tuesday: Insights and Trends
As we delve into the heart of giving season, one day stands out prominently on the philanthropic calendar - Giving Tuesday. Since its inception in 2012, this global movement has become a cornerstone for charitable giving, encouraging individuals and organizations to come together in the spirit of generosity. The expectations this year remained high, with a projected 11% increase in revenue, adding an additional $450 million to the tally. So, the question is, how did this year parse out?
The team at Fuse Fundraising have proactively gathered valuable insights and trends derived from our clients' Giving Tuesday performance and industry reports to answer that very question. We hope these findings help set the stage for even greater success in the upcoming year and Giving Tuesdays to follow.
Giving Trends Across the Sector
In the lead-up to Giving Tuesday, nonprofits alike faced headwinds. For the first time in several years, organizations experienced a decline in overall average gift amounts and the number of donors, resulting in decreased year-over-year revenue. Data from Abacus for Q3 painted a concerning picture, with a 10% decrease in donors, an 8% drop in gifts, and an 8% reduction in revenue. However, a glimmer of hope emerged as Q3 showed slightly improved trends compared to Q2, hinting at a potential strong finish to round out the year.
As for the 2023 Giving Tuesday performance, reports shared by The Nonprofit Times and The Chronicle of Philanthropy revealed flat overall revenue growth compared to 2022, totaling $3.1 billion—a mere 0.5% increase or $20 million. Despite the overall decrease in the total number of donors across the industry, most of our clients witnessed a rise in total revenue with a higher average gift, demonstrating that the donors who did participate gave more.
Send Early and Often
Our inboxes on Giving Tuesday were crowded, reflecting the intense competition for donor attention. Nationally aggregated data revealed an increase in the number of emails sent per organization, from 5.7 in 2021 to 6 in 2022. On an individual level, our team received a staggering 50 Giving Tuesday emails within a 24-hour period. Subject lines varied, but a common theme emerged—matching donations were heavily featured.
One noteworthy trend we saw amongst our clients was email performance earlier in the month. In fact, emails sent a week prior to Giving Tuesday encouraging early giving outperformed those sent the day before, underscoring a shift in donor behavior towards early decision-making in selecting nonprofits to support earlier in the month. This shift reflects a strategic opportunity for organizations to engage and capture donor attention well in advance of Giving Tuesday.
Giving Tuesday is Not Just for Email
Organizations expanded their Giving Tuesday strategies beyond email, embracing a multi-channel approach. Direct Response Television (DRTV) paid digital media, direct mail, and telemarketing became integral components of the campaign. Notably, postcards featuring QR codes and frictionless payment options such as PayPal, Apple Pay, and Venmo gained prominence.
An unexpected star of the show was Google Ads, outperforming projections, and surpassing Meta by over 900% in Return on Investment (ROI) as well as a slightly higher average gift. With this finding, we recommend potential shifts in year-end strategies by allocating a greater percentage of digital advertising spend to Google Ads. To ensure budget optimization, we suggest allocating the majority of your ad spend to the final week of the year, as this period typically sees the highest influx of donations.
What's Next?
As the Giving Tuesday pot continues to grow, the need for organizations to stand out becomes imperative. With matches and email volumes proliferating, the focus in 2024 is projected to shift towards omni-channel marketing and extended campaigns that start earlier and end later.
We hope these insights and the buzz of Giving Tuesday fuel even greater success in your year-end fundraising efforts. We at Fuse are rooting for you!
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