How digital fundraising can improve donor retention

The expansion of digital giving has created fresh fundraising opportunities for nonprofits and higher education institutions exploring avenues like crowdfunding and giving days. However, this growth raises important questions: What approaches best support donor retention in digital channels? How should stewardship evolve to serve new digital donors? Can digital initiatives unlock major gift potential?

Hubbub spoke with Justin Ware and Rosa Conrad, co-founders of Groundwork Digital, ahead of their presentation at Texas Christian University’s Digital Giving Day (April 11). Both are strong advocates for digital fundraising evolution and shared insights on effective donor retention practices.

How has digital technology changed fundraising?

Justin: The transformation has been substantial with more growth ahead. Online giving days are now standard at most institutions; universities employ dedicated staff for crowdfunding programs; and digital strategies are entering major gift work.

Significant untapped potential remains. I anticipate “big data” becoming standard in development operations. Simple steps, like training gift officers to engage donors on Facebook, Instagram, and LinkedIn, yield immediate results. Low-cost Facebook advertising campaigns can identify previously unknown major gift prospects with minimal investment.

Rosa: Digital tools enable concise yet impactful storytelling demonstrating a gift’s personal impact regardless of amount. With shrinking attention spans and competing demands, efficient personal impact proves critical.

Project-based fundraising like crowdfunding excels at this, though adopting similar approaches for annual and unrestricted funds remains challenging. Mapping stories for sustaining funds online, creating urgency and personal connection for nonprofits and institutions, represents exciting potential.

What’s the most frequent concern you hear from anyone trying to embrace digital fundraising?

Justin: Too many options exist. Multiple proven vendors offer online giving days, crowdfunding, ambassador programs, content management, and data solutions. The challenge: few integrate these comprehensively or strategically across channels. Our work bridges gaps, helping fundraisers develop integrated multi-channel approaches with appropriate technology.

Rosa: Beyond Justin’s point, abundant options require significant time commitment. Launching giving days and managing crowdfunding projects demand substantial effort. While quality work takes time, connecting digital initiatives strategically reduces long-term demands.

From your own experience, how can digital fundraising improve donor engagement?

Justin: UC Santa Barbara’s Give Day exemplifies this. Beyond fundraising, the campaign targeted alumni digital engagement, succeeding at both. Raising $3.72 million from approximately 1,300 donors generated extraordinary social reach: UCSB hashtags trended twice on Twitter, Facebook posts accumulated hundreds of thousands of views, and content reached massive audiences. The campaign created a community rallying point.

Rosa: Challenge events within giving days powerfully engage donors. One- or two-hour windows with real-time updates excite donors toward shared goals. University of Massachusetts Amherst’s 2016 UMass Gives campaign illustrates this: nearly 50% of gifts arrived during “Power Hour” campaigns matching or unlocking $2,000 to $10,000. Modest additional amounts significantly motivate donor participation.

Which donor retention strategies work better in digital fundraising?

Rosa: Stewardship matching the gift medium forms the critical foundation. Communicating both short- and long-term impact provides expected transparency while creating ongoing relationship touchpoints. For donors connected to specific ambassadors or project themes without broader institutional ties, this opens opportunities introducing similarly themed areas.

However, project-specific stewardship must precede introducing additional giving areas.

What should we expect from your session in Hubbub’s Digital Giving Day event at Texas Christian University?

Rosa: Stewardship dominates our discussion, an often-neglected digital giving element with potential long-term consequences. We’ll examine new digital donor stewardship: what it includes and excludes, plus actionable strategies for adjusting your stewardship approach.

Justin: I’ll demonstrate that digital belongs centrally in major gifts programs, arguably as important, if not more so, than annual fund efforts. We’ll present statistics and real examples supporting this, offering attendees actionable tips for integrating digital into major gifts strategies.