We managed a dozen appeals at tax time – Here’s what the data is saying

We like to go into a major campaign season prepared, and you should too. 

As well as our annual Christmas Donor Sentiment Research, we also track and analyse dozens of our clients’ digital performance benchmarks at Tax and Christmas – so we can see trends to better plan for upcoming campaigns. 

This year at Tax Time we managed over a dozen paid digital media campaigns across Meta, Google, Programmatic and more, for charities of all cause types and sizes, and the data is telling. 

Here are the key takeaways and actionable steps to help you optimise your Christmas fundraising efforts.

Things to factor into your appeal planning in FY24 

1. Inflation applies to your digital media spend also. Diversify your spend across cheaper channels

We saw significant digital media cost inflation at Tax Time 2024 in key digital fundraising conversion channels – Google Paid Search and Meta Advertising. Cost-Per-Click increased by 24% on Google Search and 38% on Meta year-on-year across a range of cause types, budgets and different advertising campaigns. 

And we expect Christmas Campaigns and Appeals over the next 6-12 months to follow a similar trend.

Recommendation: First, make sure you factor in this added 20-35% cost into your media planning. But if you don’t have any extra budget to spare, conserve your spend in order to have enough budget to compete in the final weeks before Christmas. 

Another way to maximise your budget is to test audiences and creatives ahead of appeal season (before costs spike), so that you’re able to focus your budgets on the most effective audiences that drive revenue at the more competitive end of campaign. 

Also, while we are in no way recommending taking budget from key revenue generating channels of Google Search and Meta Advertising, you may also want to diversify your 'awareness' budget to more cost-effective channels that may get more bang for your buck. Channels like  Programmatic showed an average drop of 45% in CPM (that’s cost per 1,000 impressions) and these channels are a great way to build awareness and engage audiences more cost effectively, to then retarget in the later fundraising conversion stages. 

2. The average gift amount is declining, reflective of the cost of living pressures

We’ve also seen average gift decline year on year, which is likely reflective of current cost of living pressures (a variation of 3.02% on paid search and 16.62% on paid social).

This data matches what donors are telling us. Our Donor Sentiment Research shows that while younger donors under age of 55 (47%) are more optimistic and intend to give at Christmas, their ability to do so is hindered . Nearly 45% of NextGen Donors report a significant impact from the cost of living, compared to just 27% of older donors.

Recommendation: To counter the impact of smaller average gifts, develop your messaging and donation options to accommodate different giving capacities by generation. Also consider placing clear dollar handles on your creatives and making donation tiers specific, showing how each level will make an impact for the cause. By providing donors with options, you can encourage them to contribute at a level that feels comfortable for them while still making a meaningful difference.

3. The earlier the campaign launch, the stronger the results

This year, our Tax Time digital campaigns ran for an average of 6-10 weeks, launching one to two weeks earlier than usual. Starting early means less competition and more impact for your media spend. Our research showed that 25% of donors were still undecided about their giving plans five months before Christmas, and 38% practice planning ahead. This stage is your opportunity to get in front of your audiences and be at top of mind from the start.  

Recommendation: Launch your campaign early to raise awareness and reach your audience during their planning phase—or persuade those who are still undecided. This strategy also allows you to build momentum, engage donors over a longer period, and avoid the last-minute rush. The extended timeline will give you the opportunity to fine-tune your messaging, optimise your approach, and retarget audiences in later conversion stages, leading to stronger results. 

4. Be aware of the days of the week for your final push

The timing of those critical last days (29-30 June for Tax Time or 23-25 December for Christmas) can significantly impact donation behaviour. Traditionally we recommend ramping up your ad spend at this point, as urgency is a key motivating factor for people donating ‘in the moment’. However with June 29th and 30th falling on a weekend this year, results were weaker than previous years. Instead we saw the bulk of donations come through on Thursday 27th and Friday 28th. Which means…the day of the week matters!

Recommendation: Planning is everything. If key dates, such as the final days of your appeal, fall on a weekend or holiday, plan to drive donations earlier in the week and drive more urgency throughout the campaign with incentives such as matched giving or a countdown to a specific date to reach a goal. Adjust your outreach and budget allocation to ensure you capture donor attention when they are most likely to give. This approach is crucial for both EOFY 2025 and your upcoming Christmas campaign.

5. Don’t forget that always-on paid performance (outside of your Appeals) pays off

Maintaining an 'always-on search' strategy throughout the year, ensures your cause and brand is well-positioned when it’s time to ramp up efforts for significant fundraising pushes like tax, Christmas, and every major campaign you may have planned for the coming year too. We saw strong results for our clients who have now run a full 12-months of digital always on. After all, your donors have thoughts and feelings all year round. So why limit your fundraising to set times a year, when they're willing and able to donate right now?

Recommendation: Keep an always-on campaign in market year-round to pre-test creative, audience targeting, budget and channels, ahead of peak campaigns so you can apply those learnings to really nail your high-income campaigns like Christmas. Also keep in mind digital ad platforms use AI to learn and optimise, which takes time. Going in and out of market with your campaigns resets the learning, so the platforms need to start from scratch which eats into time and budget.

A snapshot of some transformational EOFY campaigns we worked on!

We hope these insights offer critical guidance for maximising your Christmas fundraising campaigns and beyond. The data clearly shows that early planning, strategic budgeting, and targeted messaging are key to navigating the current economic landscape. The economic challenges are real, but with the right approach, your fundraising appeals can navigate them successfully.