Insights Archive - Page 5 of 31

Is your nonprofit acquiring new donors but finding it challenging to keep them? If so, you’re not alone. The 2024 CCS Philanthropy Pulse report reveals that donor retention remains a top challenge, as only 48% of nonprofit organizations reported keeping over half their new donors from the previous 12 months.

Successful stewardship builds trust and loyalty. Further, donors who feel appreciated and connected are likelier to become repeat contributors, increase their giving over time, fulfill multi-year pledges, and even advocate for your organization among their networks.

What Is Donor Stewardship?

Stewardship is a relationship-building process requiring the strategic management of donors through consistent communication, personalized engagement, and demonstrated impact.

A successful stewardship program:

Improves your donors’ experience through engagement and appreciation
Educates the donor about your organization’s mission, particularly as new programs emerge
Highlights donor impact
Accelerates pledge fulfillment through consistent interaction
Builds personal relationships between the donor and the assigned relationship manager
Increases donor retention as donors feel valued and appreciated

A positive stewardship experience has the power to turn a one-time donor into a longstanding partner of your organization.

best practices for strengthening your donor stewardship program

1. timely and grateful acknowledgement

Promptly thank a donor for their contribution—ideally within 24 to 48 hours. Express sincere gratitude and mention how their support will make an impact. Acknowledgment should be tiered based on the donor relationship, with some donors receiving standardized, personalized, letters while major donors should receive phone calls and hand-written notes. For transformational gifts, senior leadership should make personal, immediate outreach to the donor.

2. regular, personalized communication

Utilize data analytics to understand donors’ preferences, interests, giving history, and communication styles. Tailoring communication based on a donor’s preferences and interests will foster a stronger connection. Use existing touchpoints and think outside the box to maintain donor engagement, such as events, volunteer opportunities, or guided tours. Provide updates on the organization’s programs, achievements, and impact—ensure you are connecting with the donor throughout the year in ways beyond solicitation.

3. Involving donors in your mission

Engage donors beyond financial support and let donors experience your nonprofit’s mission in action. This could include engaging them as volunteers, event attendees, committee advisors, or key stakeholders or having them share their expertise with your organization.

4. recognition opportunities

Discuss recognition or naming opportunities with the donor to identify what would be most meaningful, depending upon the size of their gift. These opportunities should be customized for each prospect—many donors are not looking for public recognition, so it’s important to know their preferences.

5. impact reporting

Show donors the tangible impact their support has made on the organization through individual impact reports, newsletters, annual reports, or other creative storytelling opportunities. Use data to quantify the outcomes of their support as much as possible. Visual representations such as infographics or success stories can make donors feel closer to the mission and see the impact they make with their gifts.

6. seeking feedback

Solicit donor input via surveys, focus groups, or one-on-one conversations to understand their preferences, satisfaction levels, and suggestions for improvement. With so many organizations making timely donor stewardship a standard practice, creativity can make all the difference in retaining strong donor relationships.

7. diversifying your approach to donor stewardship

Think outside the box to create memorable and meaningful donor interactions. Innovation can look like sending a personalized video message from beneficiaries expressing gratitude, an invitation to insider events, or behind-the-scenes access to the organization’s work. Creative stewardship approaches leave a remarkable impression and deepen the donors’ emotional connection to the cause.

8. placing a premium on efficiency

Maximize your capacity—effective stewardship does not necessarily require additional resources. Organizations should leverage existing resources such as volunteer networks, social media platforms, and current staffing infrastructure to enhance a donor’s experience. For example, volunteers can write personalized thank-you notes, or donors can be invited to a behind-the-scenes day in the office.

donor stewardship helps you find—and keep—your donors

Stewardship and fundraising should be viewed as the same: a continuous journey of nurturing relationships, building trust, and inspiring generosity. Organizations can cultivate an engaged and committed loyal donor base by prioritizing donor relationships and implementing best practices. We repeatedly see that effective stewardship drives donor retention and increased giving.

More Insights

Article

Nonprofit Communications Strategy: A Generational Guide

June 6, 2025

Leverage the latest research on donor communication preferences to support your personalized nonprofit communications strategy.

Article

Association Foundation Fundraising: Eight Fundamental Tips

March 11, 2025

Discover how your association foundation can effectively engage and mobilize its members.

New York, NY – CCS Fundraising, a leader in nonprofit fundraising and strategic consulting, proudly announces the release of their latest position paper, AI in Fundraising. This comprehensive report examines the rapidly growing role of artificial intelligence (AI) technologies in the nonprofit sector.

In the dynamic and ever-changing philanthropic landscape of today’s nonprofit sector, harnessing the power of AI is paramount to enhancing operational efficiency and fundraising impact. This paper – researched, written, and produced by CCS’s Data Analytics team – explores how AI enables nonprofits to leverage data, automation, and personalized communication to engage prospects and donors effectively, ultimately advancing their mission and achieving financial goals.

“As the nonprofit sector continues to evolve, it’s essential for organizations to embrace the innovative applications of AI to achieve fundraising efficiency, increased generosity, and more impactful philanthropy,” stated Greg Hagin, Principal and Managing Director at CCS Fundraising. “I’m excited to share this research by CCS to leaders in the nonprofit industry, as it provides invaluable guidance on leveraging AI to drive meaningful impact and achieve long-term success.”

The AI in Fundraising position paper comprises five insightful themes for nonprofits to study:

Understanding AI: Tracing the evolution of AI from traditional algorithms to modern generative AI, providing a historical context and overview of key advancements.
AI Fundraising Applications: Exploring how both types of AI, machine learning and generative, empower nonprofits to acquire, segment, upgrade, and retain donors, with real-world examples and case studies.
Implementing AI in Your Fundraising Strategy: Offering a practical framework for nonprofits to effectively integrate AI into their fundraising initiatives, including goal setting, infrastructure development, and ethical considerations.
Harnessing Your Fundraising Power with AI: Advocating that with the power of AI, nonprofit organizations can automate and optimize their fundraising practices to more effectively engage donors and make a more significant impact.
Generative AI Use Cases: Showcasing how AI can be implemented to help with fundraising tasks, such as identifying prospects, generating proposals, and developing cultivation strategies.

Ashutosh Nandeshwar, Senior Vice President and Head of CCS Data Analytics, emphasized the practical applications of AI highlighted in the report, saying, “AI offers unparalleled opportunities for nonprofits to optimize fundraising efforts, from predictive modeling to personalized communication. By integrating AI into their strategies, organizations can enhance donor engagement and streamline operations.”

What industry leaders are saying about AI in Fundraising:

“Traditional AI and generative AI are moving the efficiency frontier in many industries, fundraising included. With these technologies, organizations will be able to create more personalized and deeper donor relationships while being able to use their resources more effectively.” ~Nicolaj Siggelkow, David M. Knott Professor, Vice Dean MBA Program, and Co-Director, Mack Institute for Innovation Management at the Wharton School, University of Pennsylvania, and co-author of Connected Strategy

“It’s a very thorough and easy to understand overview of how AI can be used in the fundraising space. I imagine many nonprofits are overwhelmed with where to start, and this can serve as a useful roadmap.” ~Jeff Kula, Senior Vice Chair, Philanthropy, Cleveland Clinic

“Elevate your nonprofit’s potential with AI in Fundraising. This insightful guide examines how AI technologies, from predictive modeling to generative AI, can be implemented to boost fundraising efforts, enhance donor satisfaction, and secure a sustainable future for nonprofits.”

~Max S. Bennett, co-founder of multiple AI companies, author of A Brief History of Intelligence

For further information on AI in Fundraising and to download the report, visit CCS Fundraising Data Analytics.

About CCS Fundraising

CCS Fundraising is a strategic consulting firm that has partnered with nonprofits for transformational change for more than 75 years. CCS provides various services to support and strengthen nonprofit fundraising programs, including campaign management, strategic planning, data analytics, gift planning, systems and change management, and major gift strategy. The firm’s expert consultants, skilled in campaign and development strategy, work closely with organizations of all sizes across nonprofit sectors and geographies.

For more information on CCS Fundraising, please visit www.ccsfundraising.com.

AI in Fundraising Paper

Our industry-leading Data Analytics team can help you stay ahead of the curve with AI in Fundraising, your comprehensive guide to harnessing the power of artificial intelligence. Explore how to leverage data, automation, and personalized communication to engage prospects and donors effectively, ultimately maximizing your organization’s operational efficiency and fundraising impact

It’s a very thorough and easy to understand overview of how AI can be used in the fundraising space. I imagine many nonprofits are overwhelmed with where to start, and this can serve as a useful roadmap.
Jeff Kula, Senior Vice Chair, Philanthropy, Cleveland Clinic

Click to explore AI in Fundraising

Learn About:

The history of AI
Implementing AI in your fundraising strategy
Benefits and considerations of using AI
AI example cases and making the most of AI chat prompts
And more!

DOWNLOAD PDF

EXPLORE INTERACTIVE PAPER

AI is changing the way nonprofits fundraise

Nonprofits often operate with limited resources and staff but are responsible for securing funding, engaging with supporters, and fulfilling the organization’s mission. AI makes this easier.

Traditional AI—algorithms and techniques that group or separate objects, transactions, or entities—and Modern AI—used to generate content, images, or video based on simple text prompts—can be instrumental to an effective fundraising strategy. Traditional and Modern AI (Gen AI) allow you to work more efficiently and productively.

With AI, you can obtain accurate, rich data to build custom predictive models around acquiring, segmenting, reassigning, and retaining donors. AI can also create a targeted list of major donor prospects, identify which donors to upgrade based on their donation history, and personalize donor communications by segmenting their interests.

streamlined donor management

Managing your nonprofit’s donor database manually can be incredibly time-consuming and prone to errors. AI can help you automate your data entry, clean up existing data, and ensure that current and prospective donor data is accurate and updated.

Further, AI can segment donors based on various factors, including donation history, interests, and engagement level with your organization. You can use this information to tailor your fundraising and communication strategies to each donor group. One example is using AI to identify previous donors who have lapsed and automatically generate reengagement appeals to encourage them to become donors again.

automated processes

Gen AI can automate processes for nonprofits with lean support staff, including acknowledgment letters for all donation designations—you can edit and approve these automated versions before sending them to donors. Gen AI-powered automation can also create impact stories of significant gifts to share with current and prospective donors.

likelihood prediction

One of the most promising uses of AI in fundraising is predicting which donors are likeliest to give to your nonprofit again. By analyzing donation histories, AI algorithms can forecast future donations and help segment donors, allowing for more tailored communication and targeted fundraising strategies.

One such prediction method is Random Forests, or “decision trees,” which use specific conditions to visually map out all possible outcomes of a decision. This AI-driven approach removes the need for manual decision-making and helps you enhance your targeting efforts for potential donors and donations.

enhanced fundraising campaigns

AI can analyze your organization’s past campaign performance and predict which strategies are likeliest to succeed by assessing criteria such as donor demographics, previous donations, and contribution frequency to recommend the best outreach timing and methods.

content generation

AI language generation models like ChatGPT can create qualification emails, thank-you letters, and proposals as well as research profiles. By automating content creation and testing variations, AI ensures you present the best possible content to donors. This boosts efficiency, allowing you to focus on other important tasks.

leverage the power of aI for your nonprofit

Relationship-building is essential to successful fundraising, and AI is not designed to replace but augment human work. When it comes to efficiency and productivity, AI has the potential to transform not just nonprofit operations but donor engagement and retention. By automating routine tasks, personalizing donor engagement strategies, and providing data-driven insights, AI allows you to focus more on your organization’s mission.

Embracing AI technology can help you secure the necessary resources to achieve your nonprofit’s goals and drive your mission forward for an even greater impact.

Still have questions about AI?

Our industry-leading Data Analytics team is here to help!

CONNECT WITH US

Explore Our Reports

Publication

The Philanthropy Outlook 2024 and 2025

March 13, 2024

Strengthen your fundraising strategy this year and next with this data-driven publication, revealing predictive insights for the philanthropic sector in the years ahead.

Publication

CCS Philanthropy Pulse

February 13, 2025

Uncover the latest fundraising trends in the 2025 CCS Philanthropy Pulse report! Packed with data-rich insights from 600+ nonprofit organizations across diverse nonprofit sectors, this free report will help you plan for success in 2025.

Publication

2024 Philanthropic Landscape, 13th Edition

September 9, 2024

This report provides a comprehensive look at the current state of US philanthropy, compiling and analyzing annual data from Giving USA and other prominent research to ensure your organization stays up-to-date on the most significant industry trends.

Many parishes opt for a campaign when considering capital projects or debt reduction, but often become intimidated by the tremendous needs and the equally tremendous goals associated with such an endeavor. CCS Fundraising always recommends doing a thorough analysis to assess the feasibility of a capital campaign before deciding whether to move forward in that direction. If your conclusion is that your parish is not ready for a large or extensive campaign, it would be wise to consider an alternative approach: conducting a campaign to increase weekly collections.

Like most charities, operational funding in churches often comes from annual giving. To keep up with inflation and growing expenses, such as maintenance, compensation, and benefits, it is vital that churches also grow donor giving over time. An increased offertory campaign can help begin that process.

Increased Offertory Programs Are an Easy alternative to large Fundraising campaigns

Many religious denominations have used pledging and annual stewardship drives for years and, as a result, encourage their members to grow their giving regularly. But what about those churches (especially Catholic parishes) that haven’t developed such programs?

CCS’s experience shows that Catholic churches (and even entire archdioceses and dioceses) are more often turning to increased offertory programs to overcome financial challenges and fulfill unmet needs. These programs can be easy to implement and can help you accomplish the following:

Educate parishioners on the need to be responsible stewards of the gift that is their church
Commence discussions regarding the importance of increasing giving annually to keep up with growing expenses
Get more parishioners involved as volunteers
Start a pattern of written commitments that can aid in real-time budgeting
Address real financial needs in a fair approach that doesn’t negatively impact a parish’s ability to run a campaign at a later date

Increased Offertory programs Have a High Return on Investment

These programs are indeed easier to run than a traditional capital campaign, and can often be completed in a period of seven weeks. They have also proven to be very effective. Through our work in this sector around the world, CCS has found our tailored increased offertory programs to elevate parish giving as much as 25% with sustained levels of increased giving during the years that follow our engagement. When combined with broad implementation of electronic giving by parishioners, these increases can be “locked in” and generate a steady stream of additional revenue for the parish.

For over a decade, CCS has helped parishes in the US and UK conduct over 170 increased offertory programs. These programs engaged 1,040 volunteers, and saw more than 9,740 commitment forms returned. Parishes gained an average 21% increase in giving, ending with a projected $8,676,111 (in current US dollars) increase in annual offertory. Some parishes even experienced an increase that approaches capital campaign results when calculated over five years.

Just as important as the results, however, is the cost. Most of these increased offertory campaigns saw a complete return on their investment after just five weeks of increased collections.

volunteer leadership and clear objectives are key

Volunteers are the key to generating the highest response and keeping the costs. A well-run program will take advantage of every communication channel a parish has to offer: the bulletin, the pulpit, mail, email, social media, and the personal contacts made by parishioners. These contacts need not be solicitations, but rather a personal reminder to respond and a testimonial about why the parish is so important to them. These personal contacts help reduce the number of mailings needed in the program and have been proven to generate higher rates of commitment.

When planning an increased offertory program, it is important to have a very clear sense of what you hope to achieve. In addition to increased financial support, an increased offertory program should focus on achieving the following objectives for the parish:

Identifying parish strengths, weaknesses, opportunities, and threats
Increasing the clergy and laity’s understanding of the principles of stewards
Developing ongoing educational and faith formation opportunities
Obtaining parishioner commitments of time, talent, and treasure
Increasing parishioners’ active involvement in parish and diocesan life
Growing Mass attendance
Upsurging registration
Increasing giving
Developing and implementing a plan for ongoing commitment to the principles of stewardship

Increased offertory programs support a culture of giving

In the end, however, the ultimate objective of an increased offertory program is changing the pattern of giving. At the conclusion of each program, CCS offers parish leaders training on conducting annual renewals of these commitments. Permanent change in parishioner giving behavior is only possible through regular attention and communication. It takes some work, but as any “stewardship parish” will attest, the process becomes automatic and expected by parishioners after a few years.

As an additional benefit, conducting an increased offertory program will not impact your parish’s ability to conduct a capital campaign in the near future – in fact, the process may help get you closer to campaign readiness.

So, when a campaign seems out of reach, or maybe you just need another year before starting one, consider an increased offertory program.

More Insights

Article

Nonprofit Communications Strategy: A Generational Guide

June 6, 2025

Leverage the latest research on donor communication preferences to support your personalized nonprofit communications strategy.

Article

How to Strengthen Your Donor Portfolio With Data Analytics

May 19, 2025

Learn how to effectively analyze, refine, and refresh your donor portfolio to secure long-term fundraising success.

SEE ALL IN: Catholic Episcopal

Boomers, born between 1946 and 1964, currently hold the largest share of US wealth and reflect 43% of total charitable giving— but that’s about to change. The Great Wealth Transfer is on the horizon, and it’s time for your nonprofit organization to start preparing for when assets will pass to the next donor generation, reshaping the philanthropic landscape.

Now Is the Time to Think About the next Donor Generation

Despite wealth concentration in older demographics, Millennials and Generation Z are the two largest in the US. As Boomers grow older, an anticipated $84.4 trillion in assets will transfer to Millennials and Generation Z through 2045, including $72.6 trillion going directly to Boomer heirs. Inevitably, nonprofits are already seeing this transfer reflected: between 2016 and 2022, the average Millennial household increased its annual giving by 40% (from $942 to $1,323), contrasting the decrease in Gen X’s (-4%) and Boomers’ annual giving (-12%) during this same period.

With this impending shift comes a pivotal moment for your nonprofit to adapt as new donors bring new perspectives and giving priorities. Longtime, reliable donors have different values than their children—even if wealth stays within a family, giving priorities and personal motivations may not. The organizations that have taken the time to invest in the younger generations in preparation for this great wealth transfer are seeing rewards and a strong pipeline for the future of their organization.

Understand the Next Donor Generation

With this transfer, most wealth will pass directly to the heirs of current donors. You can begin establishing yourself with your next donor generation by learning about the descendants of your current donor base and getting to know them as individuals with interests and values separate from their family name.

Philanthropic parents raise philanthropic children, and family foundations make up over half of all private foundations, often staying within the family for several generations. However, recent trends show a departure from this norm, with some family foundations transitioning management to non-family members. This shift underscores the importance of engaging with both current and future generations of donors.

Millennial and gen z giving motivations

Millennial and Gen Z donors are driven by a desire to create meaningful change in the world and support causes that align with their values while also expecting transparency, authenticity, and community engagement in their philanthropic endeavors.

millennials

Millennials, born between 1981 and 1996, are adaptive to technology but much less dependent on it than Generation Z. Millennials make up a large percentage of today’s workforce, balancing the demands of building a career, raising a family, and giving back to organizations they are most passionate about. Like Generation Z, Millennials are closest to organizations that directly reflect their values about current societal and economic issues. Millennials typically research a nonprofit or make a connection before making a gift.

Gen z

Generation Z (Gen Z) refers to those born between 1997 and 2012. Considered the most technologically advanced generation, the internet, social media, and smartphones are part of their everyday life. They have witnessed global issues ranging from economic downturns, domestic and international safety concerns, gender inequality, racial injustice, and climate change. Unsurprisingly, Gen Z cares about impact and wants others to know they are a part of specific causes, focusing more on public recognition.

where to find your next donor generation

The Great Wealth Transfer provides opportunities to discover new donors whose interests and values align with your organization in a way those of other generations did not, but where can you find them?

Young donors spend time online

Millennials and Gen Z donors have moved away from desktops in the last decade and are online, specifically on mobile devices. As the world becomes increasingly virtual, so does philanthropy. Even when responding to direct mail campaigns, which are still popular among nonprofits, Millennials and Gen Zs give online more often than their predecessors.

millennial and gen z donors crowdfund

The COVID-19 pandemic helped fuel the recent increase in online giving while also creating a significant shift toward crowdfunding, proven by the popularity of sites like GoFundMe and Kickstarter. These small-scale, collective aid efforts help cultivate young donors by introducing philanthropy and planting the seeds to one day become consistent donors. Crowdfunding, fueled by 24- to 35-year-olds, also allows individuals to directly support causes they care about, regardless of organization size or complexity.

millennial and gen z donors use social media and explore your website

Exploring Gen Z and Millennials’’ behavior on social media will help you understand what organizations young donors want to give to and how to market your nonprofit work to them. Nonprofits should leverage social media for outreach and invest in user-friendly online giving platforms, as a seamless online experience enhances donor engagement and retention, particularly among tech-savvy Millennials and Generation Z. Undertaking website optimization assessments can further enhance searchability, branding and design, user experience, security, and content, to name a few.

Consider the following:

How can my organization make charitable giving more accessible to young donors who may feel discouraged because they cannot give at high levels?
Is my organization active on many social media platforms and encouraging online giving?
Is my organization’s online giving platform easily accessible?

how to engage the next donor Generation

So, you know where to find young donors, have built out your website, and created an easy path for online donations… now what? The following three principles will help you engage Gen Z and Millennials.

demonstrate authenticity

Like those before, the next generation of donors has various interests and will give across sectors. Whether addressing climate change, education reform, healthcare support, or social justice advocacy, Millennials and Generation Z respond generously to causes aligning with their values. Nonprofits must demonstrate authenticity, emphasizing tangible outcomes to resonate with these donors.

be transparent

Transparency is paramount for younger donors accustomed to readily accessible information—public financial statements and annual reports are crucial in fostering trust and accountability. Whether through social media, email outreach to your current database, or an event celebrating your end-of-year impact, make sure people know that their donation, no matter how small or what type, supports your cause and not just your organization.

get donors involved

Allow up-and-coming donors to give to your organization beyond financial gifts. Millennials and Gen Zs can volunteer, act as social media ambassadors for your cause or fundraising events, peer-to-peer fundraise, attend events, or obtain corporate sponsorship through their employment.

how to retain the next generation of donors

Once you’ve found and engaged young donors, the next challenge is keeping them engaged. Here are some important tactics for ensuring donors stay committed to your nonprofit’s mission past their initial donation.

communicate effectively

When communicating with Millennials and Gen Zs, using multiple channels, particularly social media platforms like Instagram, TikTok, X, or Facebook is most effective.

Ensure emails, your website, and giving pages are all mobile-friendly.
Articulate the action step you want the recipient to take (e.g., raise awareness, attend an event, donate, volunteer, etc.).
Use images or video, when possible, for more interesting storytelling.

Because this next donor generation gives to the causes it cares about and wants to know it makes a difference with its gifts, being open and celebratory about what donations allow your organization to achieve is paramount. Share success stories early and often with donors, including quotes or other personalized features.

involve the next donor generation on your board

Another key strategy for young donor retention is involving them on your nonprofit’s board. Here, we’ll delve into two approaches to engage the next generation through board activity, each with its own benefits for building lasting connections with up-and-coming supporters.

create a junior board

Unfortunately, a shift in values is not the only difference between generations, as Millennials and Generation Z are more likely to experience affordability challenges, such as delayed homeownership. Millennials are also the generation most likely to live paycheck to paycheck. Despite this lack of resources, Millennials and Generation Z are the most likely to volunteer their time with organizations they care about.

Junior boards effectively involve young donors, create interest and investment in your organization’s goals, and encourage other young donors to give. People like to see themselves represented—an organization showing genuine interest in the next generation’s opinions will attract more young people.

create a more inclusive board

If your nonprofit doesn’t have a junior board, consider ways to make your board more inclusive for young people by examining why there aren’t Millennials and Generation Z in organizational leadership. Explore ways to break down financial barriers to involvement, such as sliding scale contributions, non-traditional give-and-get policies, and mentorship or sponsorship programs. Include younger generations now to create lasting relationships.

the next donor Generation Is changing philanthropy

You now have the resources to cultivate young donors before the Great Wealth Transfer. Get to know your donors and volunteers of all ages and explore new ways to connect on your shared values, beliefs, and unique purpose. The next donor generation is speaking up and wants to help solve the world’s most pressing issues, so focus as much on your nonprofit’s future philanthropists as you do on your traditional donor base. By actively engaging the next generation, your organization can harness the opportunities of the current and continued changes in the philanthropic landscape.

*This article is a refresh of “Engaging the Next Generation of Philanthropists” by Courtney Labetti, CFRE, CAP, Vice President; Kaleigh Wagner, Assistant Vice President; Alexander Fruin, Assistant Vice President

DOWNLOAD PDF VERSION

More Insights

Article

Nonprofit Communications Strategy: A Generational Guide

June 6, 2025

Leverage the latest research on donor communication preferences to support your personalized nonprofit communications strategy.

Article

Association Foundation Fundraising: Eight Fundamental Tips

March 11, 2025

Discover how your association foundation can effectively engage and mobilize its members.

Do you believe your donor database could reveal untapped major gift prospects but find it too challenging and time-consuming to dive further into major donor fundraising?

Fortunately, advances in technology and data analytics have created ways to streamline and maximize your efforts. Specifically, predictive AI and statistical modeling offer powerful tools to help nonprofits leverage their resources more effectively and achieve fundraising success. Just as for-profit businesses often use predictive analytics to grow revenue, nonprofit organizations can use it to improve fundraising results. At CCS Fundraising, we use predictive AI with our nonprofit client partners to identify new or unmanaged major gift prospects efficiently, methodically, and accurately.

What Is Predictive AI?

Predictive Artificial Intelligence (AI) uses statistical algorithms and machine learning techniques to analyze data and predict future outcomes. In major gifts fundraising, predictive AI can reveal the donors most likely to make a large gift based on their past giving behavior, demographic characteristics, wealth indicators, and other relevant factors.

How We Use Predictive AI to supercharge major donor fundraising

CCS has developed a multi-step process to assess donor potential in your database that, once completed, gives you a list of the most promising new major gift prospects.

A graphic showcasing a sample predictive modeling process.

Step 1: we use predictive statistical modeling

In essence, a predictive model describes your promising donors in statistical terms. The process starts by building a suite of predictive models predicting future donor behavior based on past tendencies, interests, and demographics. Using this information, the model finds constituents who look like those high-potential donors but aren’t yet. This statistical characterization is a formula to give each constituent in the database a numerical score, rating the prospect’s quality.

At CCS, the predictive models we develop for nonprofits incorporate diverse data elements from the donor database, encompassing contact details, donation records, event participation, volunteer engagement, and organization-specific data fields.

step 2: we wealth screen your top model scorers

The predictive model scores tell us which donors have an affinity for your nonprofit. Constituents who scored well are interested in your organization and will likely give you a gift. But it won’t tell us their financial ability to make a large donation.

For this reason, the next step is wealth screening research on the constituents who scored well in modeling. We can estimate how much a constituent might donate by using external wealth screening vendors and then combine the wealth screening and modeling scores to isolate ideal major gift prospects between affinity and ability.

Step 3: we Remove the Assigned Constituents and Those Above a Certain Age

The process aims to identify new major gift prospects, so we remove constituents already assigned to a major gift officer’s portfolio. We also filter for age to ensure a solid list of prospects in a life stage where it makes sense to be cultivated for a major gift.

Step 4: we Use Model Scores, Wealth Screening Data, and Recent Giving to Generate the Final List

We have found that concise lists of compelling new major gift prospects are most beneficial for development teams. We create a more manageable list for your organization by adding extra filters towards the end of our process—like fine-tuning model score thresholds, gift potential, and recent donations.

What is the value of using predictive aI to find new major gift prospects?

CCS has seen a tremendous return on investment in predictive AI for our clients.

In a study of past clients who utilized CCS’s predictive AI services, the median organization’s “Top Prioritized Prospects”—those high-potential donors not yet assigned to a gift officer but recommended by CCS to be included—donated seven times more compared to all other donors.

How else can predictive AI be used in Major Donor fundraising and Beyond?

Predictive AI and statistical modeling can support development strategies and objectives such as:

Convert crisis donors to long-term donors.
Strategize engagement and outreach for planned giving prospects.
Develop acquisition, retention, and segmentation strategies for annual giving.
Build a pipeline of young alums most likely to be future major donors.
Prioritize grateful patient outreach.
Optimize major gift officer portfolios by adding new prospects and identifying prospects to remove from portfolios.

Leverage the Power of Predictive AI for Major Donor Fundraising

CCS has an expert Data Analytics team dedicated to helping nonprofits worldwide harness innovative techniques like statistical modeling and machine learning for more successful fundraising, including major donor fundraising. Our in-house data scientists use various analytical tools to develop customized, creative, and actionable fundraising strategies unique to each client’s needs. Discover our Services for more details on our Data Analytics offerings, or contact us today .

EXPLORE ANALYTICS

More Insights

Article

How to Strengthen Your Donor Portfolio With Data Analytics

May 19, 2025

Learn how to effectively analyze, refine, and refresh your donor portfolio to secure long-term fundraising success.

Article

How to Analyze CRM Data: The Hidden Power of Your Database

April 30, 2025

Unlock the potential of your organization’s CRM and data management techniques to secure long-term fundraising success.

SEE ALL IN: Data Analytics, Systems, & Research

Our independent school client partners increasingly—and now with greater urgency—ask us, “Can we raise money for endowment?”

Those who ask this question know without sufficient endowment savings or investment income operating dollars, they could be financially vulnerable or even face closure due to affordability challenges and budgetary constraints.

The question “Can we raise money for endowment?” reflects the widespread perception that these funds are harder than capital dollars to raise without the tangibility of campus facilities like classrooms, gymnasiums, or libraries. However, endowments have a greater long-term impact on programs and beneficiaries; independent schools reported a 9.2% return on investment in endowment assets in 2023.

Unsurprisingly, there’s a growing interest in and need to raise these funds. The following are tactics to focus on when sharing the power of endowment dollars at your independent school.

1. demonstrate the impact of your endowment by showing, not telling

Showing prospective donors how endowment gifts directly support your independent school’s students and faculty helps them understand their gift’s critical impact and proves that it doesn’t disappear into an obscure savings account but makes a real difference for your school. For example, to make the case for a financial aid endowment, consider highlighting students who would not otherwise be able to afford your tuition.

Similarly, you can make a strong case for a professional development endowment by sharing specific faculty work and travel examples. Consider hosting an open house for donors at the beginning of the school year where they can interact with faculty and learn about the experiences their gift enabled. The donor will feel a lasting sense of personal impact and a clear understanding that their gift creates a legacy of these life-changing moments.

2. recognize and steward donors

Named funding opportunities are an important strategy for countering the misconception that endowment gifts lack direct impact. Your school can recognize donors by name through opportunities, such as:

Faculty chairs
Student scholarships
Professional development funds
Programs

When a donor meets a student scholarship recipient or the faculty teaching chair, this powerful stewardship opportunity reflects an endowment gift’s profoundly personal and lasting effect while humanizing endowment giving—they create powerful stories of personal and professional enrichment for the donor while celebrating them as an inspiration to the rest of the school community.

These stewardship opportunities can also be significant for emerging philanthropists. Families building their wealth might establish a fund for a partial scholarship, hoping to grow it to a full scholarship over time. For families with multiple connections to a school, a family fund provides opportunities to cement a common bond and allows multiple members to participate meaningfully, regardless of capacity.

establish a bequest society

Establishing a bequest society is easy and provides a straightforward recognition and stewardship opportunity. A school can recognize donors in every issue of the school magazine, on a campus plaque, and through website profiles. Regularly featuring bequest society members in the school magazine and featuring them prominently on the website will tell compelling stories of those committed to making a profound and lasting impact on generations of students and faculty.

Considerations for small endowments

A word of caution—stewarding and recognizing minimal endowment funds is difficult. Small funds can be an administrative headache for the business office, and their returns are so small that recognition opportunities are limited. For example, a $10,000 endowed fund generates just $500 annually at a standard 5% draw. To avoid this, many schools have set minimums for establishing named endowed funds to ensure that the administrative costs are worthwhile—perhaps $50,000 for a faculty development fund, $500,000 for a partial scholarship, etc. A higher investment threshold also ensures that stewardship opportunities are more meaningful.

3. demystify the endowment

Independent schools may struggle to attract endowment giving if they assume their donors and school communities understand what endowments are or how they’re used. Few donors understand the ins and outs of school financial management—even trustees on a school’s finance committee might be surprisingly misinformed about an endowment’s role in the school’s revenue strategy. For example, donors may equate endowments with reserve funds, although endowed assets often have legally binding usage restrictions.

help donors understand endowments through strategic communications

Your independent school can demystify the endowment by sharing regular updates and examples of fund uses. For instance, a recurring feature in the school magazine could highlight a faculty chairholder and share the donor story behind the gift. You could also set and share a goal for long-term endowment growth to articulate the impact of the incremental gains that, over time, lead to a larger endowment. This becomes particularly important when your school is ready to show the human-scale impact of the endowment today and the potential impact of a properly sized endowment.

explain endowments in the context of school finance

Beyond defining endowment mechanics, it’s essential for your donors and school staff to clearly understand how it functions within the operating budget. Independent schools have limited revenue sources, typically defined by tuition, voluntary support (annual giving), and the draw on endowment income. Schools with little or no endowment income contributed to their operating budget put tremendous pressure on tuition as the primary revenue source. While many schools publish pie charts showing the revenue breakdown for tuition, annual fund contributions, and investment income, few schools take the extra step to explain the key role of each and, specifically, how a larger endowment and the subsequent endowment draw becomes critical in containing tuition growth.

Regular communication outlining the role of each revenue source creates important context and helps even those closest to your school (board members, insiders, and leadership) understand the need to raise endowment funds. Consider using an interview feature in one of your school’s publications, a website landing page, or a campaign salon event to help donors understand the important endowment metrics and their role in your school’s broader financial strategy.

You can make a strong case for your independent school’s endowment

Raising funds for your endowment is possible. Creating recognition and stewardship opportunities and demonstrating human-scale impact are critical steps to make it a rewarding gift opportunity. With thoughtful communication, your school can make endowment fundraising as tangible as fundraising for capital projects. Context matters—clearly communicating the endowment’s role in your school’s broader financial strategy helps build a culture of giving that benefits your school and your donors.

Very Informative and well presented.
feedback from a Webinar Attendee

DOWNLOAD SLIDES

Noncash assets are proven to be directly tied to organizational growth. Learn effective ways to include them in your proposals and how to confidently discuss their benefits with your donors and prospects so that you can secure transformational gifts for your organization.

Gift Planning Practice Group members Christianna Robertson and Hannah Yaritz help you understand how gift of noncash assets impact organizational growth and show you how to add illustrations to your blended gift proposals—with and without software.

PRESENTED BY

Christianna Robertson

Senior Vice President

Hannah Yaritz

Senior Vice President

More Insights

Publication

CCS Philanthropy Pulse

February 13, 2025

Article

Major Gift Fundraising: The Revolutionary “Faster Funnel Process”

February 6, 2025

In this article, learn how to apply the Faster Funnel Process to your organization to support major gift fundraising, save time, and ensure that development officers can focus on your most promising leads.

In today’s increasingly competitive fundraising environment, nonprofits must broaden and expand their revenue streams to remain sustainable. Implementing a wide range of revenue-generating initiatives strengthens your organization’s stability and cultivates resilience in navigating economic uncertainty. This article explores the key strategies and best practices that help fortify your nonprofit’s financial solvency.

Understand the Philanthropic and Economic Landscapes

It is helpful to first understand how economic realities shape philanthropy. The 2023 financial landscape was unstable, with significant fluctuations and challenges, as the S&P 500 experienced a sharp decline of 25.4%. This downturn mirrored a broader trend as disposable personal income also saw a dip of 7.5%. Finally, inflation rose to 8.0%, its highest rate in four decades. However, notable bright spots amid these economic headwinds included the GDP growing by 1.1%; concurrently, unemployment rates have dropped to some of the lowest in the past half-century.

Despite economic uncertainty, philanthropy maintained a steady growth trajectory. However, this was accompanied by an apparent decline in individual giving following the years of historic generosity associated with the COVID-19 pandemic. This leveling off in giving patterns suggests a need to recalibrate charitable contributions. Further, generational giving is shifting due to the great wealth transfer, with anticipated significant implications for the industry.

Against this backdrop, how might your nonprofit diversify its revenue? Here are some tips to get started.

Evaluate your donor pyramid from bottom to top

A visual representation of the prospect pyramid. The pyramid is divided into three sections, with Planned Gifts at the top (Donor Commitment), Major Gifts in the middle (Donor Growth), and Annual Fund at the bottom (Donor Contact). A golden outline highlights the top two sections.

Review your existing donor data to identify prospects for your various fundraising areas, with a focus on donor growth and commitment.

Ask donors with records limited to contact information for an annual fund gift.
Consider asking those who have the capacity and are showing an increase in giving annually for a major gift.
Consider those who have given for a length of time and are considered loyal donors as planned giving prospects.

Use Non-Linear Fundraising Growth to Your Advantage

Non-linear fundraising growth provides a dynamic paradigm for nonprofits, marked by a mix of more predictable and less predictable funding sources.

More predictable fundraising sources include gifts from:

alumni
grateful patients
annual funds
corporate partnerships

Less predictable funding streams often encompass larger, less frequent donations, such as:

transformational gifts
principal gifts
major gifts
planned gifts

A nonprofit’s success depends on maintaining steady growth while staying ready to capitalize on significant spikes in funding, which only happen occasionally. While more predictable avenues ensure a stable foundation, less predictable avenues can offer substantial leaps forward, although less frequently. Therefore, balancing these elements is essential for financial stability.

Increase your revenue with major and leadership gifts

Major Gift Activation is a collaborative effort across various stakeholders within a nonprofit.

Your Development Team Drives Major and Leadership Gifts

The development team plays a central role in this process, beginning with creating a comprehensive plan outlining objectives and strategies. Coordination with other departments, such as programs and finance, is crucial to ensure alignment and support for fundraising initiatives.

Within the development team, specific roles are identified and assigned, with individuals taking ownership of lead prospect activity, tracking progress, and reporting results. Additionally, the team supports and guides leaders in their development roles, facilitating their success in engaging potential donors.

Leverage Your Board and Volunteers to Propel Your Development Strategy

Board members and volunteer leaders are also integral to the process, contributing their awareness of the development strategy, providing approval for key staffing or budget changes, and advocating for the nonprofit’s mission. They can also be invaluable in growing a nonprofit’s donor pipeline. Their involvement in fundraising activities, tailored to their interests, skills, and networks, further enhances major gift activation success.

Engage Your External Partners in Fundraising Messaging

Beyond these internal stakeholders, external partnerships are also vital, as these can provide input on messaging, help gain permission for story or picture sharing, and give insights into the key community leaders and prospects shaping the overall major gift strategy.

diversify your revenue with Gift Planning

A planned gift is an anticipated or deferred contribution of cash or other assets strategically made within the context of a donor’s broader financial, tax, or estate planning objectives. These gifts can take various forms and may be facilitated through various financial vehicles.

Gift planning is a good decision for donors for several reasons:

Most wealth is not typically held in cash.
Individuals are often more inclined to donate from irregular or unearned sources of income, such as appreciated assets, rather than from regular earnings.
The rising popularity of donor advised funds underscores the importance of strategic gift planning in modern philanthropy.
Planned gifts offer various tax incentives.
Bequests are ideal for individuals with substantial estates (valued over $13.6 million in 2024), as such estates are subject to federal taxes; however, bequests in cash or other assets, such as real estate, vehicles, or stocks, can be deducted from the estate’s total value, consequently mitigating federal estate taxes for the donor’s beneficiaries.
Charitable Remainder Trusts (CRT) are tax-exempt and reduce a donor’s taxable income.
For real estate gifts, donors acquire an income tax deduction equivalent to the property’s value while evading capital gains taxes.
In certain instances, donors aged 70 and a half or older have the option to contribute Qualified Charitable Distributions (QCDs) from their IRAs, enabling them to make tax-free donations while fulfilling their Required Minimum Distribution (RMD) obligations (note that these regulations change frequently).

Factors Contributing to Increased Gift Planning

Several factors contribute to gift planning’s growing prevalence, including the ongoing wealth transfer, the pandemic’s transformative effects on charitable giving, increasing sophistication among nonprofits and donors in navigating philanthropic strategies, and an enhanced opportunity for cultivating a culture prioritizing thoughtful and impactful gift planning initiatives.

Boost your major gifts with Capital Campaigns

A capital campaign is a pivotal strategy to enhance major gift fundraising through organization, urgency, and focus. Campaigns offer a structured approach to achieving strategic priorities while catalyzing fundraising efforts and elevating a principal gift portfolio. Further, they are a chance to strengthen and expand donor relationships and cultivate a more robust prospect pool while also developing a stronger board and volunteer leadership base. Additionally, campaigns raise awareness and elevate the organization’s profile within the community and region, further strengthening its impact and reach.

Remaining Agile will help you Increase and Diversify your nonprofit’s Revenue

Adopting strategies to boost revenue is essential to ensure your nonprofit’s long-term growth, financial strength, and flexibility in a changing environment. Whether building stronger donor connections, further utilizing technology, or forming new partnerships, the path to financial stability involves constant innovation aligned with your organization’s goals. By applying these approaches to increase revenue, your nonprofit can thrive and increase its ability to make a real impact.

More Insights

Publication

CCS Philanthropy Pulse

February 13, 2025

Article

Major Gift Fundraising: The Revolutionary “Faster Funnel Process”

February 6, 2025

The status of fundraising events as giving vehicles may have started shifting in recent years. According to the 2024 CCS Philanthropy Pulse, events are in slight decline as a source of fundraising dollars despite the proficiency of fundraising staff in event planning, and inviting current donors to regular in-person events is the second highest-ranked tactic for donor retention.

While the immediate return on investment of fundraising events may be hard to see, they can undoubtedly strengthen bonds between an organization, its stakeholders, and its current and prospective donor pool. A successful fundraising event depends on effective planning and execution. Whether your organization is considering a new event or reevaluating the efficacy of a recurring one, consider the following tips for your fundraising success.

1. Identify and articulate the goal of your fundraising event

Hosting a fundraising event without a clear purpose can be a trap. While your constituency may love annual events, these can also become unmanageable for an organization, so it’s important to identify your event’s exact purpose and determine its success metrics. Your goals must be specific, measurable, and ongoing.

While raising awareness for your cause or mission might seem like a logical goal, it’s not specific enough to measure success. Setting more precise objectives, such as showcasing a new or existing facility’s capabilities, broadening the reach of your communication platforms, or fostering dialogue between stakeholders and experts, allows you to assess your event’s impact more effectively.

You can measure your event’s success by establishing activation points—where attendees derive value from your event—as you design or evaluate your event. Activation points may include when attendees:

Contribute gifts of any size during your event.
Elect to receive correspondence from your organization.
Purchase event-branded merchandise.
Post to social media using an event-specific hashtag or photos.

Establishing activation points makes it easier to demonstrate your event’s utility for your organization and note what improvements are needed in future iterations.

2. ask good questions ahead of your fundraising event

If your fundraising event aims to engage with a specific community, use this group to refine your event. Consider interviewing a key group of individuals about what would motivate them to attend and engage with your organization further. A widely shared survey can also help inform how to create a successful event, but be mindful of question design—open-ended questions can produce more nuanced opinions, but the answers are more challenging to synthesize on a larger scale. Spend time considering what information would be most useful rather than most interesting. Asking survey participants what event type they would be most excited to attend, what specific factors prevent their attendance, or what offerings would appeal most can give you more actionable insights from your intended audience.

3. Assemble your dream team to plan and run the event

Creating the right group is crucial for designing and implementing any fundraising event. While there is no formula for determining your event committee’s right size and makeup, at the very least, you should assemble a group who can collectively contribute the following:

A complete understanding of your event’s goal and alignment with your organization’s mission.
A robust understanding of the regional and, ideally, national event landscape.
Personal and professional connections with individuals or organizations who can help execute or elevate your event.
A total understanding of the commitment level necessary to implement the event.
A willingness to participate in the event and engage others to do so.

As you create your list of individuals you would like to invite to be on your committee, remember the following:

Inside -> Out. Top -> Down.

Start with individuals within your organization you want to include and invite your highest priority members to the committee first. This will start your committee with those already aligned with your mission and allow you to accommodate higher-priority committee prospects.

4. design your fundraising event with intention

Whether creating a new fundraising event from scratch or reevaluating an existing one, create a detailed list of relevant events in your organization’s region to help you quickly determine if certain event types are overrepresented in your community or where new opportunities may exist.

Collect information on events that might compete with you directly or indirectly. Professional or collegiate sports may not seem to interfere with the success of a gala or charity auction, but if they are sure to generate traffic or monopolize hotel rooms nearby, you should consider them while picking a date. You will also want to consider the scale of events as you create your list—one month may only have a few events taking place, but if they are larger, it may be more detrimental than a month with several smaller events.

Make Your Event Unique

As you design your event, consider substantive ways to make it unique, especially if similar events occur in your region. A specific theme or unique location is a great way to make your event stand out. Be sure to avoid confusing a unique event for an overly complicated one. Including too many components to stand out can soon make your event unwieldy and likely less cost-effective. It is good to be ambitious with new events, but it is essential to leave room to grow.

Throughout the design process, ensure the event aligns with your organization’s mission. An elaborate event can engage the public, but if it contrasts with your organization’s mission, you risk alienating your stakeholders.

5. engage your leadership in the fundraising event

Engage your organization’s leadership to participate in your fundraising event as early as possible. As soon as you have a date, ensure it’s on their calendar to avoid scheduling conflicts. Encourage them to invite guests who might elevate the event. If you are aware of personal or professional connections they may have with potential sponsors or organizations that would be valuable partners for your event, solicit them to set up an introduction.

As the date approaches, provide your leadership team with a simple bullet-pointed memo outlining answers to attendees’ potential questions, necessary event details, exciting developments within your organization, or relevant milestones. If leadership is engaged effectively, they can bolster the return on investment of your event and facilitate touchpoints with prospective donors.

6. Remember post-event engagement

Extend your fundraising event production timeline beyond the event to maximize its value. Develop a post-event communication plan throughout the event design process and share it in advance so all relevant parties know what is expected of them. Check in with all staff and committee members for feedback on their experience. If there were relevant interactions with prospective or current donors during the event, ensure they have been documented for your development team. Distribute personalized thank you messages promptly after the event to express gratitude and share the event’s successes. Assemble the event committee and discuss the successes, challenges, and necessary changes that must be considered for the next iteration.

A Thoughtfully Planned fundraising Event Can Engage New Donors and Ignite Current Donors

Fundraising events allow new and prospective donors to learn more about your nonprofit’s mission and impact. Even as new fundraising initiatives emerge, events will likely remain a popular engagement tactic. Implement our six tips to ensure your event’s success.

More Insights

Article

5 High Holiday Donor Engagement Tips

September 30, 2024

Whether you’re a synagogue, summer camp, federation, or other Jewish organization, the High Holidays offer a time of thoughtful reflection and ripe opportunity for connection across the Jewish community.

Article

DEI Communication Strategies for Independent School Fundraising

February 5, 2024

Discover how to reach donors authentically and successfully through school fundraising communications including events, messaging, and digital outreach.