ARTICLE
Adopting Modern Payment Methods To Engage And Keep A New Generation Of Donors
The Future of Nonprofit Fundraising
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In today’s rapidly evolving world of nonprofit fundraising, nonprofits must adapt to changing donor preferences and behaviors. 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 is 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 like contactless payments.
The generosity of Millennials and Gen Z: A shaping force
Millennials and Gen Z are not just the future of charitable giving; they are actively shaping it today. Together, they wield an impressive $350 billion in buying power—yes, you read that correctly! And, these cohorts are tech-savvy, deeply committed to making a difference with social causes, and 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 3 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: The preferred choice for next-gen donors
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 PayPal, Venmo, Apple Pay, and GooglePay. Making these digital payment options available has 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 next-gen donors. As of 2023, approximately two-thirds of Millennials and Gen Z individuals have embraced digital wallets. And 78% of Gen Zers would reconsider patronizing a business that doesn’t accept digital wallet payments. But there’s no need to be concerned about leaving potential donors behind as Gen Xers are also on board, with more than half reporting that they use digital wallets more than traditional payment methods.
Always be in a position to say “Yes” to potential gifts
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.
Venmo, with more than 80 million users, offers a familiar and trusted platform for next-gen donors, who donate at more than twice the rate of non-Venmo users.
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.
Engaging next-gen donors at events using contactless payments
Fundraising events play a key role in nonprofit fundraising efforts. A significant number of attendees are often Millennials 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. By offering a seamless way for next-gen donors to give while they’re inspired by your mission, you can boost donations.
Take advantage of next-gen payment options with Bloomerang
Digital wallets and Tap to Pay are now an integral part of Bloomerang Payments, the payment processor built exclusively for nonprofits. 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 address next-gen giving preferences. Bloomerang Digital Wallet offers the ability for nonprofits to:
- Accept expanded payment options. Donors using Bloomerang fundraising tools, like donation forms, donation pages, events, and crowdfunding pages, will now see PayPal, Venmo, ApplePay, GooglePay, and Bloomerang Tap to Pay as convenient payment choices.
- Add offline donations. You can manually add offline donations processed through digital wallet platforms, including PayPal, Venmo, ApplePay, and GooglePay.
- Make the most of transparent reporting. Gain valuable insights into your fundraising efforts by tracking funds raised through 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:
- Effortlessly grow donations: Attract and engage new donors with mobile-friendly options.
- Save money for where it matters most: Streamline your operations and reduce administrative costs.
- Set up your organization for success: Stay ahead of the curve and build a strong donor base for the future.
Incorporating these modern 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 on the causes you’re passionate about. So, step into the future with Bloomerang Payments and watch your donations soar while you make giving a seamless and enjoyable experience for your donors. A bright future awaits.
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