Why Is It so Much Harder for Nonprofits to Raise More Funds Online in 2023?


credit: Planet Save

"To sum it up, it is 3 times harder to acquire a new donor today than it was 10 years ago," writes Mathieu Stern in the Next Web.

Stern, who has worked with nearly 100 nonprofit organizations over the past decade, says they all want to do more good and need to generate new donors.

But "with the rise in customer acquisition costs," the future of digital fundraising is changing rapidly, forcing nonprofits to adapt and find new ways to engage donors.

Customer acquisition costs, or CAC, have been steadily increasing over the past decade, making it harder for nonprofits to reach their fundraising goals.

In 2012, the average CAC for nonprofits was $93; in 2018, it's $141, a 51% increase.

"Still, despite increased costs, nonprofits must continue to prioritize customer acquisition as a key component of their fundraising strategies," Stern writes.

There are a number of solutions to this problem, including crowdfunding and using psychological nudges such as social proof to get donors to give more.

But retention is another problem, with the average retention rate for new donors being 46%.

"By working harder to keep new donors more engaged, organizations can increase revenue without increasing expenses," writes Stern.

"This means that even as nonprofits are spending more money to acquire new donors, they are also

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