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State of the Fundraising Union

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MOW at Texas Conference

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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?

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