Fundraising: Digital Charity - Interview with Sabine Wagner-Schäfer

As generous as people are in giving right now, the trend over the past few years has unfortunately been quite different.

Quite clearly. It has become more difficult for nonprofit organizations (NPOs) to generate donations using traditional methods. The main channel for donations is still the time-honored fundraising letter. But this channel is shrinking, and digital giving is on the rise. We are currently in the era of multimedia fundraising. This means we’re optimally combining traditional and new approaches. In this way, we’re creating a gradual shift toward digital operations. This is the right approach—it’s important to proceed step by step and wisely. A radical shift is not the way to go.

«The goal is to deliver the right offer to the right donor at the right time. That's my first key recommendation: Invest in marketing automation now.»

So, preserve the old and build up the new—partly to attract young people?

Exactly. Studies show that many nonprofits are losing an entire young generation. These studies correlate the age pyramid with willingness to donate and donation behavior. When you look at these two factors together, it becomes very clear: Many nonprofits are losing their target audiences simply because, unfortunately, those people are passing away. Especially among small and medium-sized nonprofits, I see this as a case of turning a blind eye—people simply don’t want to face reality yet. Any organization that wants to still be around in five to ten years needs to make changes now. Now, at the very latest. So, it’s actually already almost midnight—you have to admit that.

How are Swiss nonprofits structured?

The large NPOs are already making great strides. They’re focusing very intensively on the question of what can be done in the digital world. The challenge for large NPOs is more about how to integrate their digital efforts into the organization as a whole—or, to put it another way: how to make the entire digital transformation a success. The situation is completely different for medium-sized and smaller organizations, as well as for foundations. Unfortunately, I have to say this: They are lagging far behind in digitalization and remain stuck in traditional ways of doing things. As a result, many of these small nonprofits will, sadly, disappear over time.

What do you recommend?

Every nonprofit needs a digital strategy. Just a few years ago, clothes delivered to your home in a package from the post office were still the exception. Today, young people order their clothes almost exclusively this way. We’ll see this fundamental shift in the world of donations as well. The NPOs that will succeed are those that can reach their target audiences digitally and allow their donors to make digital payments.

That sounds logical and not too difficult …

One problem with fundraising is that digital strategies have to be approved by senior management. And that’s where there are often major roadblocks.

So is there a generational problem here, too?

That’s often the case, yes. Of course, it frequently comes down to tight budgets. It’s the same in many industries: People would rather stick with the familiar channels that have been successful so far than invest in a future they don’t yet know much about.

Can you give us some examples of situations where donations were increased thanks to your help and support?

I can mention Caritas and UNICEF. I developed strategies for both organizations. At Caritas, the initial phase focused on how to strengthen online fundraising for disaster relief. At UNICEF, I personally set the course for the digital strategy and implemented key milestones. Now, during the Ukraine crisis, it’s clear just how valuable that work was. People like to donate quickly and easily. I’m really proud of that.

You're setting up a new division at Qmart called «The Fundraisers by Qmart.» Where are you at right now?

We’ve come a long way. Our customers are now taking full advantage of our comprehensive digital services. There are no gaps left. At the same time, I organized the Online Fundraising Forum in Switzerland, which was a huge success. This conference must be very practical: it must and should be about providing help, not about any kind of sales presentations. The goal is for nonprofits to become familiar with the new digital possibilities at this conference.

Could you please tell us the most important steps that nonprofits need to take as they move toward a digital future?

First of all: Start with your own data. This data needs to be linked to each other and to other data sources. Marketing automation and the delivery of user-centered content are then crucial. The goal is to deliver the right offer to the right donor at the right time. That’s my first key recommendation: Invest in marketing automation now. My second recommendation: tracking. Many nonprofits have major gaps when it comes to measuring results. Nowhere else do I get as many valuable real-time results as I do through the possibilities of digitalization. We need to take advantage of that. When I look at how far behind so many nonprofits are in this area, it’s just sad. My third recommendation is cross-media campaigns.

As a donor, I want as much of my donated franc as possible to go to those in need and not—for example—end up in the nonprofit’s administrative costs or be used for something else. Does digitization bring more transparency in this area?

Absolutely. A digitized nonprofit can justify its existence much more effectively to its donors. For one thing, fundraising is generally much more cost-effective. And because of that, of course, a much larger portion of the donation goes to those in need. For another, it enables direct feedback to donors. It’s even conceivable that donors could track their donations online. That would be a true «customer journey»! Today, donors often don’t hear anything at all from the nonprofit—not even a thank-you.

So, would it be fair to say that, thanks to digital technology, a larger portion of every franc donated actually reaches those in need?

I'd agree with that.

In this «fully digital» world, isn’t there a risk that NPOs will lose that personal, face-to-face connection with donors?

It’s actually the exact opposite. Automation relieves the nonprofit of a lot of red tape and administrative work—which frees up time to connect with people. Second: How personal do you find the annual donation letter that lands in your mailbox? Let’s be honest—it’s actually quite impersonal. In the digital world, you as a donor are addressed in a much more personal way, receive much more direct feedback, have a greater say in the process, and are taken along on the journey. Warmth and genuine connection with donors increase in the digital world—they don’t decrease.

Sabine Wagner-Schäfer As a member of Qmart's executive team, he oversees digital marketing and fundraising. With «The Fundraisers by Qmart» It is establishing a new division to strengthen fundraising capabilities and expand digital expertise in both fundraising and commercial operations.