New study paints optimistic picture for 2015 & 2016 nonprofit fundraising results

Trying to make long term predictions about the likely overall growth in nonprofit fundraising donations is a difficult task at best and perhaps impossible at worst. However that’s exactly what a new study has done and even projects how fundraising revenues may change as far forward as 2016.

A new report researched and written by the Indiana University Lilly Family School of Philanthropy has been presented by fundraising and philanthropy consulting firm Marts & Lundy. While there are of course many variables that can make significant impacts to charitable giving such as severe economic turbulence, changes in tax policy or the need for widespread emergency disaster relief the study paints a very bright picture in overall terms for the upcoming almost two-year period. Moreover the report anticipates the growth to be balanced across varying sectors and different types of funding – all pieces of data that will bring great hope to many nonprofit organizations.

The study is based on philanthropy in the United States and predicts that giving increases will exceed the 40 year median average of 3.8 percent in both 2015 and 2016. Explaining how the model arrived at such optimistic conclusions John M. Cash of Marts & Lundy said;

“Despite the scope and impact of the nonprofit sector, it lacks the type of myriad, reliable resources that business and government have long used to understand the outlook for their sectors. Given that many nonprofits are hugely dependent on private contributions, the need for accurate projections for charitable giving is especially great. The Philanthropy Outlook is based on a carefully constructed econometric model grounded in serious academic research. It is a key new planning tool for the nonprofit sector.”

The centrepiece of the report is the prediction that nonprofit giving will grow by 4.8 percent this year and improve further to 4.9 percent in 2016. I’d venture to say that collectively the nonprofit sector would be more than pleased if those predictions are accurate as both figures mark an improvement over 2014.

There is certainly strong correlation between the projections and the overall modestly healthy state of the economy which also shows fairly conservative but positive GDP predictions for 2015 and a gentle but definite tide of optimism when looking even further ahead also. If the stock market and net worth of some of philanthropy’s largest donors is set to grow consistently it typically tends to equate to similar growth in donations.

The Philanthropy Outlook report has a great deal of data relating to predicted year-to-year growth rates in U.S. philanthropy for 2015 and 2016 including overall giving as well as breaking out giving by individuals/households, foundations, estates and corporations. Perhaps as interesting as the figures themselves is having the process fully explained as to how they were reached based on a thorough analysis of economic factors and other considerations.

It’s a very encouraging and positive set of predictions that I’m sure the whole sector will be more than pleased to see proven correct over the next two years. You can review the entire report and learn about how it was created via this link.
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Miratel Solutions is a Toronto call centre, eBusiness, and letter shop mail house specializing in professional fundraising services including PCI compliant inbound telephone fundraising, outbound telephone fundraising, online fundraising, lottery fundraising services, donation processing and receipting and direct mail fundraising services. We are committed to our CSR business values in all our business decisions  and advancing the missions of the nonprofits we proudly serve.