Fundraising must rebuild community trust

Canada’s nonprofit and cultural sectors are facing a difficult fundraising environment. Statistics Canada reports that the proportion of Canadians aged 15 and older who donated fell from 68% in 2018 to 54% in 2023. While the total value of donations remained relatively stable, the number of donors declined, a shift that coincided with rising living costs. Arts and culture donations also fell from $200 million in 2018 to $157 million in 2023, measured in 2023 dollars.

That should concern every museum, charity and nonprofit organization.

The old ways of raising money are being challenged by technology, changing household finances and donor fatigue. Artificial intelligence can identify past donors, automate emails and personalize fundraising appeals. Telephone campaigns can be relentless, and repeated requests can leave people feeling less like valued community members and more like names on a list.

That approach needs to change today.

Communication and planning

Simply asking for funds is not enough anymore. Families, who are often the target of support, have limited funds. Organizations must earn each donation. Their messaging must be constructive, inclusive and linked to the needs of the public.

Communicate how and why an institution’s needs and the community’s needs are connected. What will the institution provide with these funds? Will the public have a say in what is exhibited? How will volunteers and local youth be incorporated into institutional plans?

Public involvement needs to be earned. A cause without a plan is an unfulfilled cause.

Outreach and engagement

Communicate and engage the community at every opportunity. Festivals, fairs and community gatherings should include the presence of museums and nonprofits, while allowing people to feel their relevance.

Digital information can reach potential donors, but information overload is a bad call. Person-to-person contact remains important because giving is connected to relationships, trust and a sense of belonging. If you feel like a part of the team or cause, you will donate.

Fundraising after analytics

Organizations need to understand whom they are trying to reach. Research is essential to identifying audiences, interests and appropriate donation targets, but analytics should inform relationships, not replace them.

Institutions must never turn people away by creating an unfriendly or dismissive experience. If I am interested in canoes, give me opportunities to see one and imagine riding in it. Museums often exhibit objects with a label telling visitors what something is. They should also tell us when, why and how it matters.

Museums exist to inform. Charities exist to provide services. Both depend upon communication and public trust.

For institutions dependent on public funding, grants, donations and sponsorships, this is a relationship problem. Public investment also demands value, relevance and accessibility. The question is not, “How much can we raise?” It should be, “What are we building with the community, and why should people join?”

The answer cannot be another barrage of reminders. It must be a reason to care.

The future of fundraising belongs to organizations that understand donors are not transactions. They are neighbours, families, volunteers, advocates and potential partners. Treat them accordingly, and the relationship can become stronger than the appeal itself.

Philanthropy is a form of altruism, but people give for many reasons. Some donate for tax purposes. Others genuinely want to help. Some give because of religious beliefs, family traditions or a desire to create a legacy for themselves, their families or their organizations.

What of the average citizen? The answer may be simpler than another campaign: make people feel that they belong. Giving should not feel like an extraction. It should feel like participation. Feeling good about doing a good thing? There is nothing wrong with that.