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State of the Fundraising Union

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State of the Fundraising Union

  1. 1. State of the (Fundraising) Union Lisa Maska, CFRE and Kate Zidek, MPA, CFRE Lautman Maska Neill & Company April 16, 2019
  2. 2. Today’s Conversation Big Picture: 2018 Charitable Giving Highlights Q4 Update Online Giving Texas Picture Key Take Aways
  3. 3. About Our Sources • Giving USA givingusa.org • Blackbaud institute.blackbaud.com • Target Analytics donorCentrics Index campaign.blackbaud.com • AFP/FEP afpfep.org
  4. 4. The Fundraising State of the Union OVERALL
  5. 5. 2017 Total Contributions: $410.02 Billion • 79% of total giving in 2017 came from individual donors (includes Bequests) • $50.6 billion went to human services organizations SOURCE: GIVING USA (Look for 2018 numbers in June!)
  6. 6. Steady Increase Over Time SOURCE: GIVING USA
  7. 7. Overall, in 2018…. Charitable Giving in the US increased 1.5% SOURCE: Blackbaud 2018 Charitable Giving Report
  8. 8. In 2018… Large organizations (>$10M total annual donations) increased by 2.3% Medium organizations ($1M–$10M total annual donations) increased 2% Small nonprofits (<$1M total annual donations) experienced a decrease of 2.3% Human Services sector giving grew by 1.3% SOURCE: Blackbaud 2018 Charitable Giving Report
  9. 9. However… 2018 Q4 Told Another Story Donor Retention was down 4.5% New Donor Acquisition was down 7.3% SOURCE: Source: AFP / FEP 2018 Q4 Fundraising Report
  10. 10. In Q4 2018 Total # of Donors Dropped by 4.5% New donors to an organization dropped by 7.3% Newly retained donors, those who have given a second time to an organization, dropped by 14.9% Recaptured donors, those who stopped giving to an organization but returned and gave again to the same organization in 2018, dropped 1.6% Repeat retained donors, who have been giving to the same organization for at least three years, increased by 0.2% SOURCE: Source: AFP / FEP 2018 Q4 Fundraising Report
  11. 11. In Q4 2018 Three Giving Categories Fell Gifts of more than $1000 fell by 5% Gifts in $250 – $999 range decreased by 12% Gifts under $250 dropped by 15% SOURCE: Source: AFP / FEP 2018 Q4 Fundraising Report
  12. 12. Don’t Worry! Since 2016 in the USA…. Overall giving has grown by 9% Online giving increased 17%, and average online gift amounts have continued to increase. Spikes in giving due to economic, political, and international events eventually return to normal levels. SOURCE: Blackbaud 2018 Charitable Giving Report
  13. 13. Overall, Organizations Grew in 2018 Thanks to revenue being up from $1,000+ donors Underscores need for increased retention and more aggressive new donor acquisition SOURCE: Source: AFP / FEP 2018 Q4 Fundraising Report
  14. 14. Donors ARE Giving! Average Donor Gives to at Least 5 Charities SOURCE: Blackbaud Institute for Philanthropic Giving
  15. 15. Make Sure They Are Giving to YOU ENSURE YOUR LEADERSHIP AND BOARD COMMIT TO DONOR ACQUISITION CREATE A CADENCE OF COMMUNICATION WITH YOUR DONORS, YEAR-ROUND SYNCHRONIZE MESSAGES ACROSS ALL CHANNELS DO ASK OFTEN… BUT DON’T ASK EVERY TIME
  16. 16. Why Invest in Acquisition? 2018 2019 2020 2021 2022 Sample File Growth Scenarios No Investment Full Moderate
  17. 17. Sample Communication Calendar
  18. 18. The Fundraising State of the Union ONLINE
  19. 19. What About Online Giving in 2018? ONLINE CHARITABLE GIVING IN THE USA GREW BY 1.2% IN HUMAN SERVICES SECTOR, ONLINE GIVING REPRESENTS 7.2% OF ALL DONATIONS SOURCE: Blackbaud 2018 Charitable Giving Report
  20. 20. “Can’t We Just Do It All Online?” • In a word, No! • Direct mail is still the most cost-effective way to acquire new donors • The most effective programs use online and offline channels in concert • Multi-channel donors have higher retention rates and value
  21. 21. Mail Is NOT Dead… 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Mail Internet Telemarketing All other • Target Analytics Reports that 71% of gifts were made through the mail in 2017 • Those gifts represented 68% of all revenue But…
  22. 22. Online Giving IS on The Rise… In 2018, 8.5% of all charitable gifts (excluding grants) were donated online SOURCE: Blackbaud 2018 Charitable Giving Report
  23. 23. Online Giving by Sector/Size SOURCE: Blackbaud 2018 Charitable Giving Report
  24. 24. www.How Is Your Website? IS YOUR DONATE BUTTON FEATURED PROMINENTLY ON YOUR HOME PAGE? IS YOUR DONATION PAGE EASY TO NAVIGATE IN FEW CLICKS? DON’T FORGET SEO (SEARCH ENGINE OPTIMIZATION) DOES YOUR ORGANIZATION POP UP 1ST WHEN SOMEONE SEARCHES FOR MEALS ON WHEELS IN YOUR AREA?
  25. 25. Make Sure You Are Integrating Where Possible COLLECT EMAIL ADDRESSES ASK FOR MOBILE NUMBERS USE FACEBOOK TO ENGAGE WITH SUPPORTERS
  26. 26. And if any of this seems too much for you…
  27. 27. At Least Consider A Giving Tuesday* Campaign! • Last Year’s #Giving Tuesday raised over $380 million • (over $1 billion since 2012) *Amplify Austin - $11M in February The Big Give - $4M in March North Texas Giving Day - $48M last September
  28. 28. Revenue Growth $0 $50 $100 $150 $200 $250 $300 $350 $400 2012 2013 2014 2015 2016 2017 2018 Amount raised in millions $ SOURCE: Giving Tuesday USA
  29. 29. Trending Towards Medium and Small Nonprofits SOURCE: Blackbaud 2018 Charitable Giving Report
  30. 30. Distribution by Sector
  31. 31. The Fundraising State of the Union OTHER CHANNELS
  32. 32. Hold the Phone! Are you mobile optimized? In 2018, 24% of digital donations were made on mobile devices SOURCE: Blackbaud 2018 Charitable Giving Report
  33. 33. Growing Every Year! SOURCE: Blackbaud 2018 Charitable Giving Report
  34. 34. Every Nonprofit Needs to Understand: Being mobile friendly = being donor friendly. Mobile optimization is no longer optional. A lack of mobile friendly websites, donation forms, and emails will put you at a distinct disadvantage. All these tools should be used in combination to maximize the donor giving experience.
  35. 35. Content Automatically Adjusts to the Device
  36. 36. The Fundraising State of the Union TEXAS EDITION
  37. 37. Reporting Is Still Coming In… 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% APRIL NOV TOTAL ACQUISITION RESPONSE RATE 2017 2018
  38. 38. Totals by Population Size 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% SMALL MEDIUM LARGE ACQUISITION RESPONSE BY AREA 2017 2018
  39. 39. Acquisition Average Gift Amounts $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 APRIL NOV TOTAL AVERAGE GIFT 2017 2018 Industry Benchmark Average Gift for Human Services Organizations $38
  40. 40. Totals by Population Size $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 SMALL MEDIUM LARGE ACQUISITION AVG GIFT BY AREA 2017 2018
  41. 41. The Fundraising State of the Union KEY TAKE AWAYS
  42. 42. Build Relationships Offline and Online Prospects Involved Prospects Supporters Attract Commit Engage Retain Drive traffic Interact by web, email, social media Get online donation Deliver personalized contentCommitted Supporters
  43. 43. Fundraisers Take Note! Organizations that prioritize stewardship and retention continue to find the greatest success. A focus on the fundamentals of relationship building continues to be the key to fundraising success. The networked world has placed donors squarely in the role of key navigators of their own philanthropic course.
  44. 44. Fundraisers Take Note! By taking the time to learn about their motivations for giving and their unique charitable perspectives, you can steward long- term relationships to inspire donors to maintain their valuable support for years to come.
  45. 45. THANK YOU! Lisa Maska, CFRE lmaska@lautmandc.com Kate Zidek, MPA, CFRE kzidek@lautmandc.com QUESTIONS?

Editor's Notes

  • Kate
  • Lisa (and Kate)

    GIVING USA Annual Report on Philanthropy — the sources and uses of charitable giving — in the United States

    BLACKBAUD The Blackbaud Institute brings together the best minds in philanthropy to develop and share leading-edge research and insight that accelerates the impact of the social good community.
    2018 Charitable Giving Report includes overall giving data from 9,029 nonprofits representing $31.9 billion in total giving in 2018. It also includes online giving data from 5,537 nonprofits representing $2.7 billion.

    Target Analytics donorCentrics Index of Direct Marketing Fundraising The Target Index reports on direct marketing giving only. Direct mail is the dominant revenue source for most organizations, but web, telemarketing, canvassing, and other gifts considered to be direct marketing are also included. Individual payments greater than $10,000, soft credits, and matching gift payments are excluded.

    FEP The groundbreaking annual Fundraising Effectiveness Survey, piloted in November 2006, collects fundraising data from nonprofit organizations beginning with data for 2004-2005. The Fundraising Effectiveness Survey enables participating groups to measure and compare their fundraising gain and loss ratios to those of similar organizations. Participants can use this industry data, which AFP offers free, to make better-informed, growth-oriented budget decisions to boost donor revenue.

    Data from the Fundraising Effectiveness Project’s 2018 Fourth Quarter Report is based on a panel of more than 4,500 charities selected from the Growth in Giving Database of 161 million individual transactions, which includes more than $72 billion in donations and 18,348 organizations since 2005. Organizations included in the panel have raised $5,000 or more from 25 or more donors in each of the last six years. Revenue figures have been adjusted for inflation.
  • Kate
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  • Lisa
  • Kate

    2018 Charitable Giving Report includes overall giving data from 9,029 nonprofits representing $31.9 billion in total giving in 2018. It also includes online giving data from 5,537 nonprofits representing $2.7 billion.

  • Kate

    2018 Charitable Giving Report includes overall giving data from 9,029 nonprofits representing $31.9 billion in total giving in 2018. It also includes online giving data from 5,537 nonprofits representing $2.7 billion.
    (take into account higher giving in 2016 & 2017, so 2018 has leveled back to normal).

  • Lisa

    http://afpfep.org/blog/fundraising-effectiveness-project-quarterly-fundraising-report-for-q4-2018/
    Data from the Fundraising Effectiveness Project’s 2018 Fourth Quarter Report is based on a panel of more than 4,500 charities selected from the Growth in Giving Database of 161 million individual transactions, which includes more than $72 billion in donations and 18,348 organizations since 2005. Organizations included in the panel have raised $5,000 or more from 25 or more donors in each of the last six years. Revenue figures have been adjusted for inflation.
  • Lisa
  • Lisa
  • Lisa

    Looking at a 36 month view, overall giving has grown by 9% and online giving by 17%.

    This online giving represented a slower growth trend compared to the double-digit growth rates experienced in 2017. 2018 saw a leveling out of online giving after significant growth rates in 2016 and 2017.
  • Lisa

    – low $ donors are key part of the pipeline that builds $1,000+ donors.
  • Lisa’s slide
  • Kate

    So this is where the fun comes in! You have control over the efforts you make to ensure you are among your donors’ Most Favorite Charities.

    Acquisition critical to keep a donor file healthy. We offer 2 acquisition campaigns a year and will soon be adding a 3rd. If you do nothing else, be sure you are committed to a professional acquisition program.

    Build a rythme or pace of communicating with your donors. Just like any relationship in our lives, we must invest time and attention on a regular basis to keep it enriched. It won’t work to treat your donors like an ATM machine or only reach out once or twice a year.

    Multi-channel communication is important—be where your donors are!

    And, don’t be shy about asking frequently—it is for an important cause! But, be sure not to ask EVERY time. Show your appreciation to donors…describe the impact of their gifts to you.


  • Lisa
  • Kate

    This illustrates a very basic communications calendar but it covers the critical areas: Acquisition (2x a year), New Donor Welcome Package (show of hands), series of fundraising asks in the mail/online, Giving Tuesday, Planned Giving, Cultivation

    How many of you are doing all these things? How many follow a coordinated Communication calendar?
  • Kate

    Here’s a glimpse of a few of the pieces we produce for our Coop partners:
    Cultivation postcard
    Year-end email
    FB donor acquisition and conversation series
    Giving Tuesday emails
    January annual renewal
    New Donor Welcome Package
    Holiday Meals year-end campaign
  • Lisa
  • Lisa

    2018 saw a leveling out of online giving after significant growth rates in 2016 and 2017

    Online giving is entering a new phase where mobile and other digital channels continue to change how donors engage with nonprofit organizations

    Fun fact: June has continued to be the second largest giving month of the year, which aligns with the end of the fiscal year for many nonprofit organizations.
  • Lisa

    Online giving is entering a new phase where mobile and other digital channels continue to change how donors engage with nonprofit organizations

    Fun fact: June has continued to be the second largest giving month of the year, which aligns with the end of the fiscal year for many nonprofit organizations.
  • Kate
  • Kate

    Keep this in mind when you allocate your resources: over 70% of all giving happens through the mail = approx. the same amount of gifts
  • 2018 saw largest % of gifts coming in online – 8.5%

    Online giving still represents less than 10% of total fundraising. As a point of comparison, the U.S. Department of Commerce estimates that e-commerce sales in the third quarter of 2018 accounted for 9.8% of total sales. Consumer behavior continues to align with donor behavior when it comes to digital fundraising and engagement.
  • Lisa


    Small nonprofits continue to set the mark with 13.4% of total fundraising coming from online giving. Medium-sized organizations moved to 7.8% and larger nonprofits to 4% in 2018.
  • Lisa
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  • Kate
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    Asking for volunteers. Who will give us their org name so we can do a quick eval of how well you’re mobile optimized?
  • Lisa
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  • Lisa

    Small 200,000 or less
    200-600
    Large 600 and above
  • Lisa

    Human Services Benchmark Avg Gift $30.00
  • Lisa
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  • Kate
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  • Come by our Booth tomorrow. We’d love to hear about your program, your fundraising challenges, and see if we can help you grow your programs.

    Stop by Sandy’s!

    Questions:
    Did you meet your acquisition goals in 2018?
    What are your most successful acquisition efforts?
    What are you most successful campaigns?
    What are your biggest fundraising challenges?

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