Keeping up with changes and advancements in technology is a key concern for most charities, with 78% of charities saying that digital is becoming more of a priority for their organisations.
Technology can offer solutions that allow charities to lower overall costs and increase fundraising opportunities. As such, in times of austerity, it is no surprise that these solutions come sharply into focus. This may explain why almost two thirds (59%) of charities cited that they want to improve their online fundraising in 2023, up from 49% in 2022, and 29% in 2021.
“The current landscape is particularly difficult. Fundraising teams are increasingly under-resourced and overstretched. So, it makes sense to maximise giving channels and optimise ‘low effort’ income streams like online giving. Digital is cheap, quick to execute and, when prioritised, can have a significant impact on fundraising capability.”
– Stephanie Clark, Arts Professional, May 2023
Against this backdrop, and thinking specifically about the arts and cultural sector, we see some specific digital trends emerging:
The rise of Artificial Intelligence (AI)
AI is now the present reality for many charities. The use of AI to improve fundraising is a key theme, with AI promising to enhance productivity, personalise donor engagement, support with data-driven philanthropy, and more.
For arts organisations, there are interesting questions to ask around accessibility. Could artificial intelligence help arts organisations to more efficiently craft funding proposals and secure bigger pots of funding, allowing them more time to focus on the ‘art itself’? It may be that this thinking is too simplistic (and arguably undermines the skills of fundraising professionals) – but it does reveal bigger questions around how AI could be applied to grant-making as a whole, and whether current grant-making practices put arts organisations at a disadvantage.
Given that the technology is still emerging, the way in which AI is adopted across the arts will likely differ significantly according to size and resource. For large, internationally-renowned organisations, they will have the resources to use AI in technically impressive ways – but for smaller arts organisations, the focus is likely to be on ‘quick-wins’ and cost saving methods.
“Artificial Intelligence (AI) has been with us for decades, but recently it feels like it’s arrived in a much bigger, more significant, way. This is thanks to the launch of ChatGPT in November 2022. With 1 million users in just 5 days, it was the fastest adoption of a software in history. Generative AI has arrived, and the hype is huge; there’s a lot happening and it’s happening fast.” – Hector Edwards, New Philanthropy Capital
“Our findings about AI and emerging technologies show that charities are very interested in the potential of these tools but are not ready to respond. Charities will need to grow their digital skills across boards and staff teams to make the most of these opportunities, as well as improve how they collect and analyse data.” – Zoe Amar and Nissa Ramsay, Charity Digital Skills Report, 2023
Social media is becoming streamlined
In November 2022, The Atlantic predicted that ‘The Age of Social Media Is Ending’, citing the vast business losses incurred by Facebook and Twitter. Whilst it’s unlikely that social media platforms will drop off overnight, it does look as though charities are choosing to scale back or change priorities, and are focused on how to generate maximum return on investment with minimal resources.
For the short term, social media will still be a priority for most charities and perhaps more so for arts organisations – Capacity Interactive’s 2021 report Performing Arts Ticket Buyer Media Usage Study found that younger audiences tend to first become aware of an event or an organisation’s mission and impact through its social media posts at higher rates than older audiences. However, audience engagement does not necessarily translate to higher donations, and understanding this relationship is critical for arts organisations when they are pushed on time and/or budget.
Video content seems to be a key area where social media provides the best return on investment (ROI), with popular visual platforms being Instagram and TikTok. Visuals are processed 60,000 times faster in the brain than text, and 90% of all human communication is visual – so it’s no surprise that visual content generally performs well, with 89% of video marketers saying video gives them a good ROI. The latest research suggests that around a third (34%) of charities are using TikTok and other video channels (2023).
Many arts organisations are already using video-based content to communicate key messaging, or to act as a visual impact report. Whilst video-based content is not new, the different platforms that are available to share this content and the way in which these platforms are used, is ever evolving – providing organisations with another area in which they need to invest in skills development.
Personalisation
Engagement with donors is becoming increasingly creative and personalised. Virtual reality is allowing donors to make a deeper and more genuine connection with the organisations they support and to witness the impact of their donations first-hand. Virtual reality can be used to enhance the visitor experience, to inspire feelings of awe and wonder – but also to educate and inform, and this can really enhance the relevance of any arts organisation.
“Donors today are more empowered and seek greater control over their philanthropy. They desire choices, personalised giving options, and deeper connections with the causes that they support.” – The Good Gap, August 2023
Whilst arts organisations have always been aware of the challenges around donor acquisition, donor retention is now perhaps becoming equally challenging.
According to the Association of Fundraising Professionals Quarterly Fundraising Report (2023), donor retention in arts and culture organisations decreased by 4.6% between January and June 2022, even as they saw increased revenue from the previous year.
Flexible giving could be the answer. Flexible giving allows donors to alter their giving whenever it suits them. Therefore, allowing donors to ‘skip’ or ‘pause’ donations, is a key strategy to support donor retention.