How will 2023 reshape philanthropy and education?

The COVID-19 pandemic adversely affected all of society. However, the impact on education, particularly in lower grade levels, was more significant than anticipated. The National Center for Education (NCES) recently released the Nation's Report Card. Average scores for age nine students in 2022 declined by 5 points in reading and 7 points in mathematics compared to 2020. Struggling students, already behind, saw their math scores falling as much as 12 points and reading scores declining by up to 10 points. "These are some of the largest declines we have observed in a single assessment cycle in 50 years of the NAEP program," said acting NCES Associate Commissioner Daniel McGrath. "Students in 2022 perform at a level last seen two decades ago."

The educational experience of children is not the same "post-pandemic." Schools continue to face severe staff shortages and high rates of absenteeism. In addition, students and educators struggle with mental health challenges, higher rates of violence and misbehavior, and lost instructional time.

Uniquely positioned nonprofit education organizations can help schools come out of the pandemic. Many of them have proven programs and a track record of success. However, funding for educational nonprofits must return to or exceed pre-pandemic levels to maximize success. Fundraising is the lifeblood of a nonprofit, and without funding, it fails to exist. Unfortunately, many nonprofits did not survive the pandemic.

We believe that three philanthropic trends in 2023 will help educational nonprofits be successful in continuing to help students now as well as future generations to feel supported, confident and successful. These trends will play a notable role in fundraising for nonprofits as we near 2023 and how it pertains specifically to the education sector. The three trends are trust-based philanthropy, donor prospecting and the importance of technology.

1. Trust-based philanthropy

Trust-based philanthropy has been commonly used during the past year to address urgent funding needs, including the global pandemic and racial justice work. Trust-based funding is a new and innovative way nonprofit organizations and donors are approaching work in the community. Trust-based philanthropy is "An approach to giving that addresses the inherent power imbalances between funders, nonprofits and the communities they serve. At its core, trust-based philanthropy redistributes power between donors and organizations —serving a healthier and more equitable nonprofit ecosystem. On a practical level, this includes multi-year unrestricted giving, streamlined applications and reporting, and a commitment to building relationships based on transparency, dialogue and mutual learning (Trust-Based Philanthropy, 2014)." The nonprofit sector moving towards the trust-based approach allows the organization to take back a little more power and not allow funders to dictate every move. This approach enables nonprofit organizations to work with their donor base to obtain pre-pandemic fundraising levels.

2. Donor Prospecting

Nonprofit organizations must carefully identify and analyze prospective donors that align with their mission. Subsequently, they must create a strategy unique to each individual or group of donors that recruits them to the task, engages them with the cause and retains a long-term relationship. There is no longer a one-size-fits-all or "if you build it, they will come strategy." Several platforms are available to support nonprofit organizations' initial search for prospective donors. They assist in identifying people, companies or other organizations that align with the mission and have the capacity for giving. These include utilizing free resources such as GuideStar or Google. Another more costly alternative program is iWave, a one-stop shop for donor prospecting and wealth screening. Once potential partners are identified, utilizing other resources such as questionnaires and surveys will be necessary to identify other donor characteristics that align with the nonprofit.

3. Technology

The utilization of the digital world for fundraising will continue to evolve and become more prevalent. Nonprofits that can leverage technology to find, recruit, engage, develop relationships and retain donors will be the future winners. Therefore, creating a well-thought, consistent digital strategy will be crucial. Nonprofits can learn from the private sector about successful digital marketing campaigns. They must recognize differences in users of various search engines like Google and social media platforms such as Facebook, LinkedIn, Twitter, Tik Tok and Instagram. Too many organizations have a one size fits all strategy for each platform and need to acknowledge or recognize each platform's somewhat unique demographic. Crafting different digital fundraising posts is critical to reaching various audiences. Advertising messages portraying minimal gifts are acceptable while telling a story about the impact of small donations will encourage contributions.

Well-positioned education nonprofits will be critical in 2023 as the country continues to come out of the pandemic. The impacts of COVID-19 will not be short-lived, especially for the younger generations, as the crisis in the K-12 educational system continues. These three trends will help educational nonprofits be prosperous in carrying out their respective missions.

Nonprofit organizations continue to face the ongoing ramifications of COVID-19. They must further refine previously successful strategies and programs. However, just as important, they must learn new techniques and processes moving forward to adapt to the new environment post-Covid to be successful. Ultimately, Covid will no longer be an acceptable excuse for a nonprofit's shortcomings. Nonprofit organizations that continue to pivot and adapt to change will survive and prosper. They must rely on each other, continuing to grow and respond to trends as needed while the world continues to change.