Over the years, fundraising has become difficult and more challenging in the United States. The number of causes for which funds need to be raised have increased consistently and are continuing to increase while there is a regulatory control that needs to exist. Despite being a country that is home to some of the biggest corporate giants in the world, fundraising for charity continues to be one of the most challenging tasks in the country.
As per the 2016-2017 American philanthropy statistics, the non-profit sector accounts for a meager 5% of the country’s GDP. The total amount of resources that this 5% generates is only enough to fund the public goods for only 34 days. According to the statistics, a public school in New York spends more money in two weeks than what companies such as Coca-Cola and Ford spend on their marketing in a year. The volatility and uncertainty about the public-private partnership further triggered the insecurities when Donald Trump, who has been known for its anti-philanthropic views, took over the presidential office.
While it has been observed that new donors have mobilized to a great extent ever since Trump took oath as a president, however, private donations constitute only 15% of the total revenue generated by the nonprofits. Most economic observers believe that the future of fundraising looks murky shortly due to Trump’s controversial tax policies. It is expected that as stock market will move to correction and employment rate will slow down, there will be a recessionary pressure on the national growth and many donors will be pulling themselves out. The media’s negative hype given to foundations such as Clinton foundation and Trump foundation is also leading to donors losing their trust in foundations.
It has been observed since 2011 that while the donation figures have increased continuously, there has been a significant decline in the number of donors. According to the National Center for Charitable Statistics, there has been over 30% increase in nonprofit entities between 2000 and 2009, and it is continuing to increase. The competitiveness in fundraising has further increased by growth in digital fundraising platforms that aim at making fundraising smoother and quicker. Many nonprofits have been suffering because they are undermining the significance of the technological arena when it comes to tapping the resources.
Nonprofit leaders need to realize that while the demand for donations is increasing, the supply side is also increasing with more foundations and tech forums jumping on the fundraising bandwagon. With the increased competition, it is inevitable for nonprofit leaders to focus on smart technology and explore options to use the tech arena to increase their revenues.