Fundraising in Shaky Markets: 4 Tips for Nonprofits - The Giving Block

Fundraising in Shaky Markets: 4 Tips for Nonprofits

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Don’t Panic, Prepare: Engaging Donors During Uncertainty

In times of economic uncertainty, nonprofits may feel a sense of déjà vu, reminiscent of past financial crises. Global markets rattled, trade tensions, and increased volatility can lead to donor hesitation and program uncertainty. However, history has shown that nonprofits are resilient, especially when they adapt and open new giving channels. Notably, crypto philanthropy proved to be a lifeline for many organizations during the COVID-19 pandemic. Today, with greater mainstream adoption, crypto is an even more powerful tool for fundraising.

Here are four key recommendations for nonprofits to keep in mind about engaging with donors during times of market volatility and uncertainty:

 

1. Economic Stress Doesn’t Kill Giving, It Shifts Patterns

Past recessions have demonstrated that overall giving tends to dip, but not as drastically as one might expect. Instead of disappearing, giving patterns shift. Major donors often lean in, while smaller donors may pull back. Currently, we’re observing similar trends: traditional assets may be down, but many crypto portfolios still hold long-term gains. Many crypto investors are still seeing high double-digit or even low triple-digit gains, depending on their situation.

Key takeaway: Don’t assume your donors are out of the game. Instead, recognize that they are likely to be more thoughtful and impact-driven than ever. Crypto donors, in particular, are known for being values-driven and eager to see the tangible impact of their contributions.

2. Crypto Is Still “Extra Money” for Many Donors

Despite recent market dips, many long-term crypto holders have significant gains in their portfolios. With tax season around the corner, these donors may be looking for smart ways to offset those gains, and donating cryptocurrency can be a tax-efficient strategy. Historical data even suggests that crypto giving can spike during market downturns, as donors seek to allocate assets that aren’t tied up in traditional, potentially shaky investments.

Key takeaway: Now is the time to remind your donors that they can donate cryptocurrency directly. For some, it may be the smartest asset to donate in a volatile market. Make sure this messaging is included in your communications.

3. Nonprofits That Thrive Know Their Audience

In previous recessions, larger institutions often fared better than smaller nonprofits. A key differentiator was a clear mission and nimble revenue strategies. Crypto giving represents a new, and still underutilized, strategy across the nonprofit sector.

For nonprofits, this is your moment to shine. In a world saturated with noise, your message of impact and long-term benefit cuts through the static. Don’t shy away from sharing the tangible results of your work, the lives you’re transforming, and the positive ripple effects that extend far beyond the immediate horizon.

Pat Duffy

Co-Founder, The Giving Block

Key takeaway: If you haven’t already, now is the time to educate your major donors about the benefits of crypto giving. The messaging can be similar to that used for other appreciated assets, with a focus on the tax advantages and the ease of donating with just a few clicks. Don’t miss this opportunity to connect with a growing segment of donors.

4. Preparation, Not Panic

Most nonprofits cannot afford to retreat when donors are seeking meaning and purpose. In times of uncertainty, a clear mission becomes even more critical. Crypto donors, especially high-net-worth, younger individuals, are often driven by values and impact. They may not be as connected to traditional philanthropic communication channels.

Key takeaway: Lean into storytelling and highlight the impact of crypto-friendly giving. Show donors why your mission is crucial and worthy of protection. Make a direct appeal by explicitly stating that you accept crypto donations and provide clear instructions on how to give.

By understanding these dynamics and adapting their fundraising strategies, nonprofits can continue to thrive even in shaky markets.

Learn More

Interested in accepting crypto donations to diversify your revenue stream? Connect with The Giving Block today 🚀 and start your crypto fundraising journey.

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