Nonprofit Fundraising in 2011 as per The Nonprofit Research Collaborative Part 2

To succeed within the nonprofit fundraising sector you have to stay a step ahead – a step ahead of the economic impact, emerging technologies, social media and the varied approaches required to appeal to multi-generational supporters. Nonprofit professionals really do need to use any and all tools to help them proactively plan their best next move and reports such as The Nonprofit Research Collaborative Summer/Early Fall 2011 survey report definitely help that along.

I began the first part of my spotlight into this important report yesterday by outlining the background and some key statistics which solidify the importance of this report and the others like it such as the Blackbaud Index on Charitable and Online Giving as well as the Millennial Donors Report 2011 (part 1 and 2). Although the consummate nature of The Nonprofit Research Collaborative Summer/Early Fall 2011 survey report might grant it broader appeal and today I’ll continue with other report highlights.

One of the focuses of the report is how charities choose to raise money and these range from corporate and foundation gifts/grant (90%), to seeking major gifts, special events and direct mail (over 80%).  Only over 60% of respondents cited internet and email as fundraising channels they use and almost 45% have incorporated social media and planned giving into their fundraising efforts.  Special events saw the highest increase in money raised with 46% of participating charities reporting an increase and 25% of charities saw an increase in planned gifts over the same reporting period in 2010.  The theory behind why events have been very successful in raising more funds is that in this economic climate, families, couples and even singles, see it as a great way to support a cause while having a good time with like minded individuals.

Nonprofit Fundraising Method image courtesy of The Nonprofit Research Collaborative Report

As the saying goes, you have to spend money to make money and this holds true when investing in fundraising.  Most charities netted better results from increasing their investment, specifically in online and email initiatives, however only 30% of surveyed charities chose to increase their investment in these areas.  Noteworthy is that only 8% of respondents have added social media platforms like Facebook and Twitter to their initiatives this year, while 33% have used these in the past and continue to do so, with a majority being larger charities.  Although, social media continues to grow in general popularity, it seems most smaller charities are still hesitant to embrace these channels as part of their nonprofit fundraising to raise additional funds, or they may not have the funding or resources to dedicate to these.

Traditional channels of fundraising still remain popular for 54% of charities who made investments in direct mail or invested in securing major gifts.  Many charities prefer to spend energy and resources to major gifts, as it’s considered more cost and time effective.

The report also includes responses from those surveyed about what works for them and why and what represents the most opportunity for their organizations for 2011 and beyond. These responses are featured throughout the report in highlighted text boxes. It’s important to note that there is no clear solution as to how charities large or small should plan their fundraising efforts – what works for one may not work for another.

The best choice for any nonprofit organization is to evaluate the state of their own region, donor demographic, resource capacity and funding channels to plan a strategy that best aligns with their mission and maximizes their return on investment. The Nonprofit Research Collaborative report certainly provides a lot of useful information which organizations can use as benchmark information to compare their own nonprofit fundraising plans and results against. We encourage you read the full report.

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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 and advancing the missions of the non-profits we proudly serve.