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Sell Raincoats, Not Umbrellas: Why Charities Need a New Product, Not a New Package

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The winds of change are blowing across the charitable landscape.

For years, giving has been in steady decline—with fewer donors giving less, less frequently. Economic pressures like inflation and the rising cost of living have certainly played a role. And the recent gutting of USAID will have a major impact on organizations that rely on institutional funding to survive.


But there’s another, less obvious threat to the future of charitable giving. One we at Village believe may be even more dangerous in the long run:The expectations of donors—especially younger, prospective donors—have fundamentally changed.


And charities aren’t keeping up.


What You’re Selling No Longer Matches What People Want

For decades, nonprofits have been selling the equivalent of an umbrella. A broad, generalized product promising shelter from the storm—child sponsorship, general funds, institutional appeals with sweeping language like "fight poverty" or "support our mission."


That kind of fundraising worked—especially with older generations. Boomers, in particular, were willing to support big-picture causes with relatively little detail. They trusted institutions. They didn’t need to know exactly where their money was going. The umbrella was enough.


But today’s donors, especially Millennials and Gen Z, are different. They’ve grown up in an era of radical transparency, on-demand information, and deep skepticism toward institutions. If they’re going to give, they want to know:


  • What exactly am I giving to?

  • What problem does this solve?

  • Who does it help?

  • Will I get to see the impact?


And if you can’t answer those questions, you’ve lost them.


Stop Repackaging the Umbrella

Many nonprofits have tried to respond to this shift. They’ve refreshed their branding. Hired younger spokespeople. Launched TikTok accounts. Added a QR code to the annual report.


But if the core product offering hasn’t changed, those are just new boxes around the same old umbrella.


The modern donor isn’t looking for a fresher version of vague giving. They’re looking for something altogether different:

They’re looking for a raincoat.


The Raincoat Is a Specific, Purpose-Built Solution

Raincoats aren’t about offering general protection from the storm. They’re tailored to the situation. Designed for a particular user, in a particular climate, facing a particular challenge.


In fundraising terms, that means specificity. It means transparency. It means framing your asks as solutions, not slogans.


  • Instead of “Give to fight homelessness,” it’s:“$50 provides breakfast, lunch, and dinner to someone in our shelter.”

  • Instead of “Support our mission,” it’s:“Help us fund a water tank for a rural community facing a dry season.”


These aren’t just more effective pitches. They’re fundamentally different products. And they reflect a donor experience that’s actually worth engaging with—and sharing.


Building the Donor Experience Today’s Market Demands

At Village, we believe the future of fundraising belongs to organizations who are brave enough to change the product, not just the packaging.


We built Village to help charities transition from umbrellas to raincoats. The platform makes it easy to:


  • Break your work into clear, fundable projects

  • Show the impact of donations in real time

  • Let donors track and grow their own impact over time

  • Equip supporters to advocate for you by sharing what they funded


And it doesn’t just work better—it feels better. For donors and for the organizations who rely on them.


The Storms Aren’t Going Away—But the Right Gear Still Matters

Economic uncertainty isn’t disappearing. Trust in institutions is still fragile. Competition for donor dollars is fiercer than ever.


But the charities that will thrive in this new environment aren’t the ones with the flashiest umbrella. They’re the ones offering raincoats that actually fit the moment.


And if that sounds like a subtle change—it’s not.


It’s the difference between Blockbuster and Netflix.


Blockbuster saw the market shifting. They watched consumer behavior change in real time. And instead of adapting their product, they doubled down on the old model. New paint, new slogans, same experience.


Netflix, on the other hand, didn’t just tweak the movie rental business. They rebuilt it to match how people actually wanted to engage. On-demand, personalized, transparent. A whole new product for a whole new consumer.


We all know how that story ended.


So the question isn’t:

How do we make our umbrella look more appealing?


It’s:

Are we still trying to sell umbrellas in a raincoat world?



Want to see how Village helps charities deliver the donor experience modern supporters expect? Let’s talk.

 
 
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