2 Key Nonprofit Fundraising Findings of Blackbaud Index that Point to Promising 2012

The successes and failures of nonprofit fundraising efforts will always be impacted by many variables and that certainly holds true in 2012. From economic conditions to the upcoming presidential elections in the US, it can be daunting for nonprofits and their fundraisers to anticipate and work towards securing the coveted donor dollar. Many reports we have previously reviewed can lend some insight into different elements for planning consideration such as 2011 donorCentrics Internet and Multichannel Giving Benchmarking Report, the 3rd Annual Nonprofit Social Network Benchmark Report 2011, The Nonprofit Research Collaborative report (and Part 2), the 2011 State of the Nonprofit Industry Survey and the World Giving Index 2011, The 2011 Study of High Net Worth Women’s Philanthropy and The Impact of Women’s Giving Networks Part 1, Part 2 and Part 3.

Personally I have always found The Blackbaud Index of Charitable Giving and The Blackbaud Index of Online Giving a reliable source of statistical information presented in a comprehensive, thorough report. The latest report released this month (January 2012) represents 1,281 nonprofit organizations that combined raised $2.54 billion in yearly giving revenue. The results reflect positively on overall performance towards the end of 2011 and if maintained, the outlook for 2012 is rather promising. However, it’s important not to be overly optimistic. Two key findings from this report are:

1. An Increase in Overall Giving. Great news for nonprofits and their fundraising teams, as the numbers show that there has been an increase of 1.4% in overall giving in the period from September to November 2011 compared to the same reporting period in 2010. However, in terms of overall fundraising, 2011 has seen an increase of 3.4% throughout the year bringing giving levels to above 2007 prerecession levels. Certainly still a positive result overall; however a closer look at the reporting also shows there has been a steady decline in monthly increases over 2010 in the 5 months preceding the three month reporting period ending November 2011. Especially concerning is that traditionally the last quarter tends to be the strongest in donation revenue for nonprofits. Are donors tightening up their budgets?  Or are nonprofits becoming complacent?  Nonprofits are advised to be cautiously optimistic, while continuing strengthening their fundraising initiatives with steadfast determination.
2. Online Giving Continues to Grow. Representing 1,769 nonprofit organizations that collectively raised $383 million in yearly online giving revenue, there has been an outstanding increase of 12% in online giving in the November 2011 reporting period in comparison to the same period in 2010. This represents seven consecutive months of growth in the double digits (ranging from 12.4% in June to as high as 17.4% in October). It is clear that more and more nonprofits are embracing social media platforms as a way to engage donors, but they are also successfully using this fundraising channel to raise donation revenues. Interestingly, although an increase was seen across the board, the largest increase was seen in smaller nonprofit organizations (those with yearly revenues under $1 million). Although, the report does not breakdown what type of online giving channels are being used, it’s encouraging that nonprofits are seeing the value of social media and online giving and making an effort to explore these and seeing their initiatives net positive results, evidenced by the numbers in this report.

Later, I will take a closer look at how different sectors performed overall, as well as the new specialty index Blackbaud has introduced: The Public, Society Benefit sector.
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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.