Here are the top three trends to watch for in the charitable world in 2013.
1. Fundraising will see a renewed focus on major gifts and individual donations in 2013.
The last few years have seen (and even demanded that) organizations seek new and innovative funding models. The phrase "revenue diversification" has become overused as charities have sought more corporate funding, initiated social enterprise and enhanced their on-line campaigns, sometimes all at the same time. But the fact remains that the majority of charities still raise the majority of their funds through individual gifts, including major gifts. 2013 started off with a great example: the biggest-ever private gift for cancer research in Canadian history. My prediction is that we'll see a "return to basics" as charities prune back some the less successful initiatives of the last few years.
2. Fundraising will see significant innovation in terms of leveraging technology and on-line giving in 2013.
I remember the first time I received an e-mail from a friend that had a link to an individualized site where I could donate to support them in climbing the CN Tower. At the time it seems quite remarkable... But that was many years ago. My own Movember campaign raised a bit less this year than last, and others I know had the same experience. Yet the web and on-line giving is nothing if not flexible and innovative. My first prediction notwithstanding, I believe that we'll see memorable and innovative new ways to leverage technology in support of philanthropic efforts in 2013.
3. There will be even more new faces leading charities in 2013.
Partly due to demographics, partly due to the ever-increasing challenges facing charities, and partly due to new and more complex expectations of leaders of charities (ONCA, CNCA, AODA, etc.), I have the sense that new leadership will be a theme this year. This isn't a new trend, just one that I believe will accelerate, and a quick review of the Charity Village and LinkedIn job postings would seem to support this belief. My prediction is that we'll see even more postings and a number of long-standing roles change in 2013.
I’ll keep you updated on examples and stories behind these trends all year, and check back in 12 months to let you know how accurate I was.
Showing posts with label Top 3. Show all posts
Showing posts with label Top 3. Show all posts
Thursday, January 31, 2013
Saturday, January 21, 2012
Top Three Charity Trends in 2012
Here are the top three trends to watch for in the charitable world in 2012.
1. Many small and medium sized charities will disappear in 2012.
As all three levels of government reduce spending, charities that have relied for much (or even all) of their funding from government will feel the pinch. Sadly, some will actually go "out of business", but others will come up with creative solutions to continue their Mission. I'm already seeing (and have been part of) mergers, innovative funding models, partnerships, co-location, hubs, cost sharing, virtual offices, restructuring and other concepts. So your favourite small or medium sized charity might disappear, but actually still exist in some new form within a new organization or space.
2. Big Charities will get bigger in 2012.
The obverse of the first trend is that larger, better-funded and more media-savvy charities will continue to find ways to grow and fill social needs. The good news is that as the big charities get bigger their ability to weather economic turmoil usually gets stronger, and as they see service needs that are related to funding opportunities they generally seek to fill them. The bad news is that larger charities often struggle with the balance of healthy reserves and program funding, and that their very marketing and fundraising strength can help force the demise of fledgling, smaller charities.
3. Charities will continue to think and in some ways act more like for-profit businesses in 2012.
As you’ve read in my posts, charities for years have tried to imbue themselves with the best practices of the for-profit world (often with mixed results). This trend will accelerate in 2012 as two influences come to the forefront. First, increasing numbers of for-profit talent joining charities will soon reach a critical mass, and second charities will increasing desire to show “impact”. Charities are already starting to “sell” their impact, moving beyond merely quantifying results, to now pitching their value in creating a better society in a very direct way. It’s worked in the for-profit world for generations, and now with staff that think this way already charities are increasingly giving this mindset a try as well.
I’ll keep you updated on examples and stories behind these trends all year.
1. Many small and medium sized charities will disappear in 2012.
As all three levels of government reduce spending, charities that have relied for much (or even all) of their funding from government will feel the pinch. Sadly, some will actually go "out of business", but others will come up with creative solutions to continue their Mission. I'm already seeing (and have been part of) mergers, innovative funding models, partnerships, co-location, hubs, cost sharing, virtual offices, restructuring and other concepts. So your favourite small or medium sized charity might disappear, but actually still exist in some new form within a new organization or space.
2. Big Charities will get bigger in 2012.
The obverse of the first trend is that larger, better-funded and more media-savvy charities will continue to find ways to grow and fill social needs. The good news is that as the big charities get bigger their ability to weather economic turmoil usually gets stronger, and as they see service needs that are related to funding opportunities they generally seek to fill them. The bad news is that larger charities often struggle with the balance of healthy reserves and program funding, and that their very marketing and fundraising strength can help force the demise of fledgling, smaller charities.
3. Charities will continue to think and in some ways act more like for-profit businesses in 2012.
As you’ve read in my posts, charities for years have tried to imbue themselves with the best practices of the for-profit world (often with mixed results). This trend will accelerate in 2012 as two influences come to the forefront. First, increasing numbers of for-profit talent joining charities will soon reach a critical mass, and second charities will increasing desire to show “impact”. Charities are already starting to “sell” their impact, moving beyond merely quantifying results, to now pitching their value in creating a better society in a very direct way. It’s worked in the for-profit world for generations, and now with staff that think this way already charities are increasingly giving this mindset a try as well.
I’ll keep you updated on examples and stories behind these trends all year.
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