Note: Don’s series on effective fundraising will continue in two weeks.

Network for Good published an article last week on the predictions for fundraising in 2010. They are worth repeating and discussing as nonprofits continue to face economic challenges, changing donor habits and demographics.

More donations, but smaller average gift size. This will make it critical for nonprofits to grow their donor base and develop an ongoing relationship with donors – regardless of donation size.

Hesitation to donate to new causes. 2010 will still be a tough economic year. Limited funds and a still shaky economic situation will lead donors to demand greater transparency and impact – and a clearer picture of what their donation is paying for.

Increased online fundraising. This can lead to message clutter, donor fatigue and apathy – too many messages can be overwhelming and can turn the donor off of philanthropic activity. Nonprofits will have to become more aware of their “competition”, their message and their donor base – and know what does and does not result in donations.

Increase in recurring donations. Tough economic times may mean donors need to spread a total gift over a period of time. Offering recurring donation capability with every online transaction will increase the size of the donation and the appreciation of the donor, as it makes the donation process as easy as possible.

Prepare now for year-end donation surges. For the last 5 years, the 4th quarter of each calendar year has meant a significant increase in donations. Typically first quarter provides the least number (and lowest amount) of donations for nonprofits. Spend the time refining strategy, understanding your fundraising and donation process and tweaking your message so that you’re ready to take advantage of the end-of-year donation upswing.

What are your predictions for 2010? Are you tweaking your fundraising strategy?

-Sara Brueck Nichols