The State of Online Fundraising

Introduction 12+ years experience building successful online initiatives with Fortune 500 firms, government and educationalinstitutions, and nonprofit organizations across the world. Frequent speaker at nonprofit conferences such as AFP, AHP, CASE, IoF, NAIS, DMFA, CAISAP, NTEN, etc. Serves on the Board of Directors of NTEN Contributing author in People to People Fundraising: Social Networking and Web 2.0 for Charities and working on a new book. Read my blog at: www.blackbaud.com/connections Follow me on Twitter: smaclaughlin

The Hidden Agenda The Market is Noisy Agenda Online Giving Universe Online Fundraising Growth Online / Offline Giving Trends Major Giving Trends Event Fundraising Trends Online Giving Benchmarks Q & A

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The Market is Noisy What if I told you… 5% of all US giving in 2008 came from online channels. Online fundraising revenue grew 44% in 2008. 33% of online donors switch to become offline donors, compared to just 3% of offline donors who switch. Event fundraising emails have a 57% click-through rate. Online giving is influenced by a lot of non-tech factors.

Online Giving Universe EventRegistrations AmEx GivingExpress MembershipForms CampaignMicro Sites Network for Good Mission Fish FacebookCauses Donor Portal Friends Asking Friends DonationWidgets DonationForms Gift Catalogs Employee GivingPortal NonprofitCentral Donor Focus Organization Focus Internal Websites External Websites

2008 Total Fundraising (US) $292.23 Billion Offline $15.42 Billion Online Source: Giving USA / Blackbaud

US Fundraising Trends 2001 2002 2003 2004 2005 2006 2007 2008 $246B $245B $243B $245B $283B $295B $314B $307B Source: Giving USA

US Online Fundraising Trends 2001 2002 2003 2004 2005 2006 2007 2008 $550M $1.1B $1.9B $2.62B $4.5B $6.87B $10.7B $15.42B 44% Growth 38% Growth 72% Growth 53% Growth 56% Growth 120% Growth 100% Growth 73% Growth Source: ePhilanthropy Foundation, Blackbaud

Source: Blackbaud Online Fundraising Trends

2008 donorCentrics Internet Giving Collaborative Benchmarking Analysis 24 Large direct marketing organizations. Amnesty International CARE Defenders of Wildlife Doctors Without Borders Earthjustice Environmental Defense Fund Mercy Corps National Multiple Sclerosis Society Save the Children Sierra Club Special Olympics Self-selected group of participants with interest in online giving. Aggregate of 9.5 million donors, $750 million in revenue for most recent 12 mos. Direct marketing giving which is consists primarily of direct mail, with online, telemarketing, and other direct marketing sources included. With few exceptions, no large scale event giving. Gifts above $5,000 are excluded.

Online donors are much younger than traditional, primarily direct mail donors. Source: 2008 donorCentrics™ Internet Giving Collaborative Benchmarking Analysis, Target Analytics

Online donors have higher incomes than traditional, primarily direct mail donors. Source: 2008 donorCentrics™ Internet Giving Collaborative Benchmarking Analysis, Target Analytics

Over the past several years, the internet has become an increasingly significant source of new donor acquisition. Source: 2008 donorCentrics™ Internet Giving Collaborative Benchmarking Analysis, Target Analytics

Large numbers of online donors migrate away from online or email giving and to other sources, primarily direct mail. Direct mail donors rarely switch channels to become online donors. Source: 2008 donorCentrics™ Internet Giving Collaborative Benchmarking Analysis, Target Analytics

Online is a good acquisition source but has poor long-term donor retention Source: 2008 donorCentrics™ Internet Giving Collaborative Benchmarking Analysis, Target Analytics

Donors from multiple-channels have better loyalty and larger lifetime values Source: 2008 donorCentrics™ Internet Giving Collaborative Benchmarking Analysis, Target Analytics

Major Giving Trends Blackbaud’s analysis of ~2,200 nonprofits from January through September 2009: ,[object Object]

41% of online gifts ≥$1,000 were within a gift range of $1,001 to $4,999

Median online gift amount ≥$1,000 was $2,500Long Tail of Significant Online Gifts n = 1,429 Source: Blackbaud

Distribution of Online Gifts of at Least $1,000n = 1,429 Source: Blackbaud

Event Fundraising Trends Blackbaud’s analysis of ~31,200 events and $1.03 billion raised online: ,[object Object]

Average event fundraiser sends 23 emails

57% click-through rate on event fundraiser emails

25% of event fundraiser emails result in a transaction

Online participants raise six times that of offline participantsBlackbaud’s analysis of 370 events using Facebook and Twitter integration: * Participants that have sent at least one message * * Average of 120 Friends for Facebook & 70 Followers for Twitter Source: Blackbaud

Online Giving Benchmarks ,[object Object],– Blackbaud’s analysis looked at 1,274 nonprofits to compare online fundraising results for the first 6 months of 2008 to the same period of 2009. – These nonprofits had a 22.13% year-over-year growth in online revenue. 2008 Average Online Gift Benchmarks Average Online Donation $71.00 Average Blackbaud Online Donation $152.12 Source:2009 eNonprofit Benchmarks Study / Blackbaud

How much should you be raising online? ,[object Object]

In 2008, approximately 11% of revenue came from the Internet for Nonprofits in the 2008 donorCentrics™ Internet Giving Collaborative Benchmarking Analysis,[object Object]

Online Percentage of Total Fundraising < 1% 2% 3% 4% 5% 6% 7% 8% 9% > 10% Under Performance< 1% to 3% Average Performance3% to 7% Exceptional Performance7% to > 10% EXCEPTIONAL PERFORMERS ,[object Object]

The State of Online Fundraising

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The State of Online Fundraising