Year End 2022 … An Optimistic Sign for 2023?
If you listen closely, you could almost hear a collective sigh of relief as non-profits and fundraisers closed the book on 2022, another year of ups and downs and uncertainty as no one knew what a “post-pandemic” year-end would look like.
Thankfully, a successful Giving Tuesday gave fundraisers that much needed hope that the final stretch of 2022 would be a lucrative one and help set the tone for 2023.
So, did donors show up in December?
For the majority of the organizations, we work with the answer was a resounding – yes – with organizations reporting revenue exceeding budgeted goals and even surpassing last year! Fuse’s humanitarian clients all saw continued success at year-end with one client recognizing a 31% increase in digital revenue year over year!
As we continue to dissect the results of Year-End 2022, we are aiming to understand those tactics and techniques that are truly paying off at this time of heightened competition in the market.
It is likely no surprise that matching gift offers are still a top tactic at calendar year end and we are seeing that higher match multipliers (2X, 3X, and even 10+X) are resulting in stronger performance. So, if you have the ability to stretch your matching gifts farther, consider special days throughout the giving season where that multiplier increases to vary up your offer and entice giving even more. More on matching gift offers here.
We also saw that organizations that expanded their audiences at year-end, to include DAF donors and other valuable audiences who may not always receive direct response campaigns, tended to see an increase in high dollar gifts and more revenue. Often, instincts are to keep these higher level groups out of direct response communications in favor of major gift solicitations. Yet, the reality is when strategically planned, and appropriately messaged, direct response can be the right place for them, especially at a time of year when major gift officers may be stretched thin, finding it impossible to reach everyone in their portfolios.
When looking at channel performance, we see that pesky word “attribution” at play once more. While digital revenue for many organizations finished above expectations, we’ve found that, in many cases, when digging into specific digital channels (email, search, paid social, organic, etc.) there were some variances in how revenue came in vs. expected and when compared to prior years. If you’re finding this to be true, try to avoid reviewing these specific channels in a vacuum. The digital world is a very fluid space and looking at it holistically will give you a better picture of how all of your efforts are working together to drive revenue – no matter where that last click may have been.
Direct mail is seeing a longer tail this year, as many reported slow delivery in December, so likely the full results of year end may not be recognized for a few more weeks. To help avoid these delays, organizations may want to look at mailing earlier or even leveraging first class postage for key segments during year-end.
So, as we say goodbye to 2022, we want to congratulate all of our industry friends on a strong year-end, and we hope that this helps pave the way for continued success in 2023 and beyond.
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