Nonprofit Fundraising Results Slow Down According to the Blackbaud Index

I generally keep an eye on and write about the Blackbaud Index monthly update on the state of nonprofit fundraising. In my most recent review, results were very encouraging and it looked like 2012 was shaping up to be the strongest since pre-recession days. The latest results cover the reporting period ending March 2012 and is the first report to cover a complete 2012 quarter (January to March 2012), which is the most accurate account of post-holiday results. Analyzing 2,512 nonprofit organizations in 6 subsectors raising $7.4 billion, the report shows an overall growth of 2.2% in fundraising revenue over the same period in 2011. However, there are still areas of concern when you look at the complete picture.

Image courtesy of .blackbaud.com

The growth can be attributed to the fact that in March 2011 there was a decrease in fundraising revenue of 0.8%. However, when compared to February 2012, overall results dropped by- 4.3%. It’s possible that post-holiday financial blues may have affected donor activity and therefore fundraising results. Also troublesome, is that although there was an overall increase, almost all subsectors experienced a decline in fundraising revenue, with Healthcare Organizations having the largest decrease of -17.5% and large organizations also being affected by -2.1%.

Change by subsector:

• Arts & Cultural Organizations +14.4%
• Environmental & Animal Welfare Organizations -0.3%
• Public & Society Benefit -0.9%
• International Affairs -1.2%
• Human Services -3.3%
• Healthcare Organizations -17.5%

Change by size:

• Small Organizations (revenue <$1 million) +15.8%
• Medium Organizations (revenue $1-$10 million) +1.3%
• Large Organization (revenue >$10 million) -2.1%

It’s clear that although there has been some reason for optimism with improved results, there still needs to be caution in not becoming too complacent with our marketing and fundraising plans. As most of 2011 experienced some level of growth, 2012 results can easily plateau or continue to decline in comparison.

On the other hand, it’s quite impressive that Art & Cultural Organizations and Small Organizations experienced an increase of 14.4% and 15.8% respectively, despite the fact that they also saw growth in the same period last year of 4.5% and 12%. It’s challenging to determine why some sub-sectors are not performing as well in comparison, considering that all are subject to the same economic climate and other challenges. However, as we have been trending towards growth in 2012 we have to be alert to subtle signs of decline that although affecting subsectors differently can still impact our overall results.

The growth of online giving and the viable, cost-effective entity it has become is definitely deserving of its own Blackbaud Index independent of overall giving. This is incredibly useful for nonprofits to measure their own results in comparison to industry performance. Online giving continues to flourish, with an overall increase of 9.8%. All sub-sectors excluding International Affairs saw an increase ranging from 4.5% to 24.8%. A definite indication that online giving is a fundraising channel that keeps growing and has not reached near its full potential, as it only accounts for 5.15% of all reporting fundraising revenue.

With over a quarter of the year now behind us, it’s imperative to give marketing plans in the upcoming summer month’s serious consideration as traditionally they tend to be slower as donors and supporters are focused on the better weather, vacations and family time. I look forward to April’s results.

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Miratel Solutions is a Toronto call centre, eBusiness, and letter shop mail house specializing in professional fundraising services including telephone fundraising, online fundraising, lottery services, donation caging, donation processing and other donor management services. We are committed to our CSR business values in all contact centre services and mail house operations and advancing the missions of the nonprofits we proudly serve.