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


credit: Wikipedia

"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

Read the Entire Article


Selected Grant News Headlines

A customized collection of grant news from foundations and the federal government from around the Web.

Rest Backs Energy Transition in Latest Impact Investment

An Australian retirement savings fund has become the first in the world to invest in companies that have a "positive environmental impact"and it's doing so in a big way. Per the Guardian, the...more

Fund Puts $150M in Latest Impact Investment

One of Australia's biggest superannuation funds is taking a stand against climate change with a $150 million investment in green companies. The Australian Prudential Super Fundbetter known as...more

Tnfd: A Turning Point for Business Action on Biodiversity Loss?

"The race to biodiversity loss is even more crucial," one executive says. "Our planet, and our profits, hinge on it." That's the takeaway from the Wall Street Journal in a look at how some of...more

2023 Rolex Awards for Enterprise: Five Laureates Announced

Constantino Aucca Chutas is a Peruvian scientist who's created 16 protected areas in that country and around the world. He's also one of five recipients of the 2023 Rolex Awards for Enterprise,...more

Flexible Funding and Jewish Nonprofits: Meeting the Moment Calls for a Trust-Based Model

In the wake of the Santa Barbara shooting, the Los Angeles Times took a look at what's happening to the city's nonprofits. Here's what they're up to, their challenges, and what they're hoping for...more

Florida's Nonprofit State Association and Association of Grantmakers Elevate ...

Florida is home to more than 22,710 nonprofits with a combined revenue of more than $116 billion each yearabout 5% of the state's GDP, per a new report from the Florida Nonprofit Alliance and the...more

Financial Management for Nonprofit Program Directors Learning Lab

If you're in the nonprofit world and looking for some solid advice on how to manage your organization's finances, the National Post has just the course for you. It's called "Financial Management...more

Nonprofit Degree Forward Helps People Finish College Degrees

"There are no grades. There are no exams and you cannot fail." Those are the words of Danielle North, founder of Degree Forward, a Detroit nonprofit that has helped hundreds of people earn...more

10-Year, $10M Steelcase Foundation Research Project Centers on Mothers' Experience

The Steelcase Foundation is putting $10 million behind a 10-year project that will follow 30 black and Latina mothers in Michigan's Kent County. The Investment in Families Initiative will look at...more

Proposed Donor-Advised Fund Regulations

If new rules are put into place, it could be a lot harder for the rich to sock away money for retirement. The Wall Street Journal reports the Treasury Department has proposed new regulations that...more


The boon of social entrepreneurship serves as an inspiration to many to start their own businesses embedded with a social mission.  A list of social entrepreneur books will provide inspiration and motivation to follow one’s passions to embark on a social good business venture.




Human Services Jobs

  Social Work Jobs
  Substance Abuse Jobs
  Social Work Jobs
  Foundation Related Jobs
  Fundraising & Development Jobs


Federal Government Grant and Assistance Programs


Noninsured Assistance | Credit Union Charter, Examination, Supervision, and Insurance | Weapons Removal and Abatement | Overseas Refugee Assistance Programs for Western Hemisphere | Training Interpreters for Individuals who are Deaf and Individuals who are Deaf-Blind | Advanced Education Nursing Traineeships | Emergency Capital Repair Grants for Multifamily Housing Projects Designated for Occupancy | Commodity Loans and Loan Deficiency Payments | | Site Style by YAML | Grants.gov | Grants | Grants News | Sitemap | Privacy Policy

Edited by: Michael Saunders

© 2008-2024 Copyright Michael Saunders