Trends in the Nonprofit Industry

Blackbaud  2 About Steve Director of Internet Solutions @ Blackbaud Working on the Internet since Al Gore invented it Book: Internet Management for Nonproﬁts Twitter: smaclaughlin Blog: www.blackbaud.com/connections © 2010 Blackbaud

Blackbaud  3 Blackbaud Index of Charitable Giving Reports revenue trends of more than 1.364 nonproﬁt organizations Represents $2.2 billion in yearly online revenue reported on a monthly basis Includes large, medium, and small sized organizations www.blackbaud.com/blackbaudindex © 2010 Blackbaud

Blackbaud !"#$%&'(&)*+,-.+/0$&1-2-"3&4&5&)*+"3$&-"&6&7'".*&8'00-"3&92$,+3$&& *(#(%& +(#(%& !"#$%&'()"%'*+*,-$%./0/%1#22#34% ',#-%& %#4%5/%634-"%'*7*48*%9'36%5:;<=% 3'&(4#>(?34$0& '+#.%& '(#(%& $#(%& '#(%& '#.%& (#(%& !*#(%& !+#$%& !.#,%& !)#(%& !'(#(%& !"#$%& !"#(%& !'(#)%& !+(#(%& !*(#(%& /01203405& 6728405& 98:03405& ;0703405& <=>?=5@& A045?=5@& B=57C& D15EF& B=@& <?>0& <?F@& D?G?H2& Source: Blackbaud Index of Charitable Giving, www.blackbaud.com/blackbaudindex © 2010 Blackbaud

Blackbaud  6 Blackbaud Index of Online Giving Reports online revenue trends of more than 1,676 nonproﬁt organizations Represents $406.6 million in yearly online revenue reported on a monthly basis Includes large, medium, and small sized organizations Online pledges and recurring gifts are excluded from the analysis www.blackbaud.com/blackbaudindex © 2010 Blackbaud

Blackbaud !"#$%&#'()*+(,-)./)0+"1+,)2131+4)5)6)78#+4,)1+)9):.+;8)<.""1+4)=3,>#4,)) #+)")$% #')"!$% #))")$% !"#$%&'()"%'*+*,-$%./0121%3#44#56% %#6%78%956-"%564#6*%'*:*6;*%<'59%7=1>1%% 5'&(6#?(@56$2% (+)")$% ())")$% +!"+$% +'",$% *!"#$% +)")$% #*"!$% #)"*$% (#"($% (*")$% (#"*$% !"#$% &"'$% ()"*$% )")$% -./0.12.3% 45062.3% 768.12.3% 9.5.12.3% :;<=;3>% ?.23=;3>% @;35A% B/3CD% @;>% :=<.% :=D>% B=E=F0% Source: Blackbaud Index of Online Giving, www.blackbaud.com/blackbaudindex © 2010 Blackbaud

Blackbaud  11 Percentage of Fundraising from Online Large ($10M+) 5.1% Medium ($1M - $10M) 7.0% Small (Under $1M) 7.3% Source: Blackbaud Index of Online Giving, www.blackbaud.com/blackbaudindex © 2010 Blackbaud

Blackbaud  12 Human Services Sector Reports online revenue trends of more than 511 Human Services organizations The Human Services organizations are deﬁned by Giving USA as charities focused on courts and legal services; employment and vocational training; food and nutrition; long-term housing and temporary shelter; public safety and community disaster relief; recreation and sports; youth development; family and children’s services; emergency assistance for families; and independent living and self-sufﬁciency for women, seniors, veterans, and individuals with disabilities. Blackbaud used these organizations’ National Taxonomy of Exempt Entities (NTEE) codes as reported on their 990 tax returns for grouping purposes. www.blackbaud.com/blackbaudindex © 2010 Blackbaud

Blackbaud  16 Year Over Year Growth Amount Raised Online YOY Growth Rate $1,000,000 + 35% $500,000 - $999,999 19% $100,000 - $499,999 28% $50,000 - $99,000 13% $10,000 - $49,999 3% All Organizations 21% Source: Blackbaud © 2010 Blackbaud

Blackbaud  17 2009 Average Gift Trends Business / Corporations $194.05 Cultural $112.47 Family / Human Services $154.13 Foundations $209.53 Healthcare $95.21 Hospitals $120.16 Higher Education $204.05 Independent Schools $371.62 Other $110.04 Recreational / Social $134.31 Religious $196.44 All Organizations $144.72 Source: Blackbaud © 2010 Blackbaud

Blackbaud  19 About Roger A lawyer by training, a copywriter and strategist by trade, and a curious and optimistic guy by nature Founder of DonorTrends Twitter: donortrends Editor of TheAgitator - www.theagitator.net © 2010 Blackbaud

Blackbaud  20 Why is Online Important Growing far faster than any other channel Signiﬁcant channel migration among donors 35+% of online gifts triggered by other direct response channels 85+% of all donors ‘research’ ﬁrst online Start thinking about the Hidden Giant –MOBILE Far, far more than text-to-give © 2010 Blackbaud

Blackbaud How to Watch Trends Blackbaud Index of Charitable Giving Blackbaud Index of National Fundraising Performance Blackbaud Index of Online Giving Giving USA Chronicle of Philanthropy and and and other industry publications What to look for: - Overall changes - Sector changes - Acquisition rates - Retention rates - Change in net income per donor - Regional/geographic changes - Other- Size of organization, external events © 2010 Blackbaud

Blackbaud  22 Some Signiﬁcant Trends Steady decline in number of donors Acquisition rates declining 2.2 % annually for past six years and 5.5% in recession Retention rates declining Arts/cultural hardest hit at 12.2% Health down 7.2% BUT…according to most recent Blackbaud Index the decline is leveling off—up 1.4% in latest release of Index © 2010 Blackbaud

Blackbaud How is the Industry Responding Greater investment in stewardship/loyalty More investment in high-yield programs - Mid-Level Donors - Planned Gifts - Monthly Giving More Sophisticated Tools - Propensity screening - Predictive Models - Reinstatement - Mid-level giving - First year donors - Planned giving - Channel predictors © 2010 Blackbaud

Trends in the Nonprofit Industry

by Steve MacLaughlin on Oct 22, 2010

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Trends in the Nonprofit Industry — Presentation Transcript