As the end of the year approaches, holiday festivities ramp up, and so does year-end giving. Year-end giving spans the last couple months of the year and is an important time for churches to encourage and promote the generosity of donors.
For many churches and nonprofits, this is when a significant percentage of donations come in. This season not only equips churches to move forward into the next year, but also encourages donors to be generous during a specific, focused time of giving.
But what makes year-end giving so impactful? And how can churches further encourage generosity during this time? In this blog post, we’ll explore the importance of year-end giving, examine the motivations behind donors' generosity, and offer strategies to drive success during this important season.
Understand Donor Motivations
There are multiple reasons why donors are inspired to give during this season, and understanding what they are can help you as a church leader know how to encourage further generosity.
Key motivations include:
- Tax Incentives: Money given during the current year is eligible to be included as deductions on the donor’s taxes. Donating at the end of the year allows individuals to reduce their taxable income, which is particularly appealing when tax deadlines are fast approaching.
- Personal Fulfillment: The holidays also bring in a season of giving. Needs are more evident, and people are more likely to experience a sense of fulfillment as they give.
- Alignment with Charitable Causes: Lastly, this season also allows donors to see needs in their churches that they align with personally. This connection inspires generosity and a desire to give.
The Importance of Timing and Urgency
Because of the tax deadlines and approaching holidays, there is a natural urgency associated with year-end giving. In your communication strategy, it can be helpful to emphasize these deadlines. This not only encourages giving, but helps donors avoid the common pitfall of, “I’ll do it later.”
While you don’t want to emphasize deadlines to the point of inducing stress or panic, you do want to remind people that there is a hard deadline (December 31) if donors want their gifts to be tax-deductible for the current year.
Strategies to Encourage Generosity
So, how can you use this natural urgency to encourage generosity? We’ve broken down a few of the top strategies below for you to try this season:
1. Personalized Appeals
Personalization is a key factor in making donors feel valued, needed, and seen. Ask both broadly and specifically for year-end donations. This may include using names in your emails, encouraging staff members to reach out and have one-on-one conversations, or writing hand-written notes expressing current needs.
2. Leveraging Tax Benefits to Motivate Donations
Tax benefits are one of the primary motivators for year-end giving. To effectively leverage this incentive, churches should ensure their donors are aware of the potential tax advantages of contributing before the end of the year. Here’s how you can highlight this benefit:
- Remind donors of deadlines
- Provide clear, thorough information including any specific rules or qualifications
- Offer recurring giving options
- Include details about alternative giving options such as crypto and stock or mutual funds
3. Promoting Corporate Matching Gift Programs
Corporate matching gift programs are a powerful tool for multiplying the impact of individual donations. Many companies match their employees’ charitable contributions, sometimes at a 1:1 or even higher ratio.
Encourage donors to check with their employers and organizations to see if they offer gift-matching programs. Be sure to promote these opportunities in all communications to amplify donations.
4. Engaging Through Storytelling
Another powerful strategy is to tell stories of impact to create an emotional appeal. Share how donations have made a difference in your church and in your community. Be creative by using social media, video, email/blog, or in-person services to share the stories. Also consider sharing different types of storytelling like impact stories, visuals, testimonials, and stories of needs.
5. Utilizing Digital Campaigns and Social Media
Digital platforms are a great tool for amplifying year-end giving campaigns. Platforms to consider include:
- Social Media: Use platforms like Facebook, Instagram, and X to spread the word about your year-end giving campaign. Engaging visuals, compelling calls to action, and hashtags can help amplify your message and encourage sharing.
- Email Marketing: Send personalized email appeals to your donor list. Be sure to include clear instructions on how to give and details on why it matters for your church’s mission.
- Online Campaigns and Pledges: If you are running a specific campaign or project, consider using an online giving platform, such as Amplify Giving, that can facilitate donations, recurring donations, and pledges toward a unique cause.
Especially in the season of giving, digital platforms make it possible for people to engage and give in real-time. They can also potentially create viral moments, extending the reach of your campaign and attracting more donors.
6. Demonstrating Impact and Transparency
Lastly, donors want to know how their gifts will be used. Be clear and transparent about how dollars are being allocated and the impact these are having. Give updates and share results along the way. This transparency will help to build trust and encourage donors to continue giving for years to come.
Next Steps
Year-end giving is an opportunity to remind donors of the impact they can make in your church and your community. By understanding donors' motivations and the urgency of the season, your team can put together a giving strategy designed to emphasize your mission and encourage generosity.
One of the best ways to make sure giving is easy and accessible at your church, is to ensure you have an online giving system designed to offer diverse giving options and streamline processes. Ministry Brands Amplify Giving was created for churches with your mission in mind. You can try a free demo here so you can have it up and running before year-end giving starts!