5 Strategies to Respond to Donor Sentiments this Christmas on Digital
This article was initially published on Fundraising & Philanthropy Magazine.
Planning for appeals and setting fundraising growth targets seems fraught in the current economic climate.
It’s been another tough year. Household spending has slowed dramatically, 86% of Australians indicate the cost of living has affected their day-to-day lives and no one is getting the Christmas gift of interest rate cuts they hoped for.
Now in its third year, ntegrity’s Christmas Donor Sentiment Research surveys 300 Australians on their intentions to give during the festive season – to help charities best prepare, set targets, and drive fundraising growth on digital at the largest fundraising campaign in the calendar, despite the uncertainty.
Here are five strategic recommendations to come from this year’s research.
1. Christmas 2024: be the antidote to commercialism.
Christmas is the most meaningful day for Aussies, and they are increasingly frustrated by the waste, commercialism and materialism of Christmas (McCrindle Research). In fact, Australians are 4 x more likely to give at Christmas than at the start of the year, and 10 times more likely than EOFY.
This year, our research shows 73% of people plan to donate this Christmas, showing it’s still Australians’ favourite time of year to give. When asked why they give, responses largely fell into two dominant motivators: “because it’s a time to be generous” (40%) and “because there’s more need” (35%). These intrinsic and extrinsic motivators are powerful and good to keep in mind when you get to crafting your unique value proposition and key messages.
Remember your charity and fundraising proposition offers the antidote to commercialism and materialism this Christmas – and press into that.
2. Tailor your ask to the different generations’ ability to donate
Last Christmas I wrote on the need to adjust your fundraising strategy to allow for generational giving habits in Millennials and Boomers. The same advice still applies:
Focus on growing donation value today from Baby Boomers with the highest propensity to give
Also focus on engaging Gen X and Millennials with the intention of building for tomorrow
Our research shows that while younger donors (47%) are more optimistic and intend to give at Christmas, their ability to do so is hindered. Nearly 45% of them report a significant impact from the cost of living, compared to just 27% of older donors. Spending has continued to decline year-on-year for Australians under 40, while those aged 40-70 have slightly increased their spending. However, this increase is still below the rate of inflation. In contrast, spending by those over 70 has risen above inflation, thanks to strong savings, fewer mortgages, and the windfall caused from higher saving interest rates (CommBank IQ).
There are a lot of new donors out there at Christmas, the majority of whom are looking to give a gift of less than $100. With this in mind, their decision is likely to be based as much on convenience and ease as on spending time researching and considering. Keep this in mind when developing both your messaging and donation experience.
3. The future now is online, and your digital channel selection matters
The trend towards online donations continues to surge, with 65% of donors preferring this channel in 2024, up from 48% in 2022.
With a majority of Australian adults intending to give at Christmas it makes sense to look at where the majority of Australians are – and as one of the most digitally savvy societies in the world, Australia has strong uptake across search/website and social media channels. 80% of Australians use Google Search, 78% are on Facebook and YouTube and spend a whooping average of 42 hours per month on TikTok (twice that of Facebook at 22 hours or 11 hours per month on Instagram).
4. Cut through the sameness online to deliver authentic stories
Every industry – fast food, cars, superannuation – has a look. It’s a sector code of sameness that is safe. While this lowers risk, it generally only works for the biggest brands and for your existing donors.
75% of short-form videos are watched on mobile devices, and 70% to 90% are viewed on mute, audience preferences have shifted. Authenticity is crucial for standing out to attract donations and new donors. Utilise user-generated content to showcase real impact.
To engage effectively, involve your audience in content creation, show behind-the-scenes moments, and experiment with video length. Embrace low-production videos that feel genuine, such as those with iPhone voiceovers. Authentic storytelling is powerful and cost-effective, thriving on platforms like TikTok and Meta’s short-form video features.
5. Be in market early
This year, with 25% of donors still unsure about their giving plans, and 38% planning in advance, it’s crucial to start your campaign early to create awareness and be in front of your audience with their planning OR with those still making up their mind. Because while the majority of revenue will come in the 2-3 weeks prior to Christmas, the decision on who to give starts earlier for many donors.
However, there’s a shorter planning period compared to EOFY so we recommend lighter spend through November with a ramp-up in December.
Bringing it together on digital
As digital giving continues to grow in popularity, consider going a step further and adopting a digital-first approach to your campaign. Creating experiences and propositions that are fit for digital, rather than just translated from Direct Mail. And remember, the most effective digital-first Christmas campaigns create a cohesive omnichannel experience across website, social media, email campaigns, direct mail, in-person events and more. By being present, relevant, and easy to engage with, charities can succeed in achieving significant fundraising outcomes this Christmas.