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The Future Of Nonprofit Fundraising In Human Services: Embracing Next-Gen Payment Options To Attract And Retain Next-Gen Donors
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In the realm of human services nonprofits, evolving to meet the needs of those served means also adapting to the changing dynamics of donor behavior. As services are provided to some of the most vulnerable populations, there’s a need to ensure consistent funding. Traditional methods of receiving cash donations have seen a significant drop in recent years, with 70% of charities reporting a decline in cash contributions. This decline is further underscored by the fact that only 23% of donors used cash for contributions in 2022, marking a substantial 35% decrease from 2017.
One reason behind this transformation? The rise of Millennials and Generation Z as donors—who not only are generously contributing but also are driving a shift towards modern payment methods. Their giving patterns are shaping the future of fundraising for human services.
The generosity of Millennials and Gen Z in human services
Millennials and Gen Z are not just the future of charitable giving; they are actively influencing human services organizations today. Together, they wield an impressive $350 billion in buying power—yes, you read that correctly! And these cohorts are tech savvy and socially conscious, with deep commitments to causes like welfare, healthcare, housing, and disaster relief. And they hold a significant amount of generational wealth that they are eager to give back. 84% of Millennials give to charity, donating an annual average of $481 across more than three organizations, while 76% of Gen Zers give online. As these cohorts mobilize to support causes they believe in, they’re becoming highly-engaged advocates, sharing information on social media, and crowdfunding donations.
Digital wallets: Meeting the needs of human services supporters
Millennial and Gen Z donors today are looking for a giving experience that aligns with their online shopping habits. That means they expect to have access to modern payment methods and digital wallet options like Apple Pay and GooglePay. When Human Services organizations make digital payment options available, it’s been shown to reduce donor checkout friction, build trust, and increase unplanned gifts by 32% and repeat donations by 79%.
That’s especially important when considering appeals to attract and retain next-gen donors. As of 2023, approximately two-thirds of Millennials and Gen Z individuals have embraced digital wallets. And if they find an organization that doesn’t accommodate these preferences? 78% of Gen Zers stop their support. No need to be concerned about leaving potential donors behind as Gen Xers are also on board, with more than half reporting that they prefer digital wallets over traditional payment methods.
Always be ready to say “yes”: Embracing modern payment solutions
One of the significant advantages of embracing modern payment methods like digital wallets is that you’re more likely to receive donations. PayPal users are almost four times more likely to donate when PayPal is accepted, and donation conversions increase by over 32% when digital payment options are available. Moreover, repeat donations can surge by 76% when using PayPal.
The ease of donation significantly affects donor behavior. When donors find it effortless to contribute, they’re more likely to make a gift. By providing a seamless donor experience with multiple payment options, you’re more likely to see an increase in the generosity of your supporters.
Contactless payments at human services events: Attract and retain next-gen donors
Fundraising events for human services—which often cater to vulnerable populations—play a key role in attracting a significant number of Millennial and Gen Z supporters. To cater to their tech-savvy preferences, consider integrating contactless payment methods like Bloomerang Tap to Pay. Your donors can easily contribute using Apple Pay or Google Pay with a simple tap of their smartphones and instantly support initiatives like homeless shelters, medical aid, or community programs. In this way, you enhance their engagement and boost donations while they’re invested in the spirit of your mission.
Bloomerang Payments for human services nonprofits
Bloomerang Payments, the payment processor built exclusively for nonprofits, now incorporates digital wallets and Tap to Pay. Make sure your organization is set to deliver a better giving experience for your donors, with lower fees, better support, and no need to use a third-party provider. Bloomerang digital wallet options not only enhance the giving experience for donors but also make it easy for your organization to meet the preferences of next-gen donors. Features include expanded payment options through tools like donation forms and events, manual additions of offline donations, and transparent reporting for digital wallet transactions
Now’s the time to step into the future of giving
To stay relevant in today’s evolving fundraising landscape, it’s essential to adapt to the preferences of the donors of tomorrow. Consider embracing next-generation payment methods through Bloomerang Payments to:
- Attract and retain next-gen donors with mobile-friendly, digital options.
- Maximize the funds you can allocate to supporting your mission with lower administrative costs.
- Stay ahead of the curve and build a strong donor base for the future.
Incorporating digital payment methods isn’t just about convenience; it’s about securing your organization’s financial stability and ensuring you can continue to make a positive impact and move your mission forward. So, step into the future with Bloomerang Payments and embrace the next generation of givers by delivering a seamless and enjoyable experience. A bright future awaits.
What are some strategies you use to attract and retain next-gen donors?
Raise more and worry less with Bloomerang Payments!
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