According to one of the more comprehensive reviews of 2010 fundraising — the 2010 Year-End Survey of the Nonprofit Research Collaborative* (NRC) — a majority of charities surveyed saw their fundraising revenue remain stable or increase last year. 1845 charities completed the 2011 survey.

Among the findings:

• 52 percent of organizations reported reaching their fundraising goals for 2010. [In a previous survey conducted by the Association of Fundraising Professionals, 53 percent of charities reported meeting their yearly fundraising goals in 2009.]
• In addition, the percentage of organizations raising more money in 2010 compared to 2009 was 43 percent. The percentage of respondents raising fewer funds was 33%, down from 2009’s 46%.
• Just 39 percent of very small organizations (expenditures less than $250,000 in 2009) saw an increase in contributions in 2010, compared with 49 percent of large organizations (expenditures of $3 million or more in 2009).
• 45 percent of organizations received more than 50 percent of their contributions from individual donors.
• Internet/online giving rose at 58 percent of the organizations that reported using it – and more than three‐quarters reported online or Internet fundraising.
• Direct response appeals yielded increased donations at 43 percent of the organizations using them. A third of organizations using direct response saw stable revenue, and nearly one quarter (24 percent) saw a decline.
• The three least‐used methods—telephone appeals, payroll giving, and planned giving—were among the most likely to stay at the same levels as in 2009. For charities using them, half to 60 percent said these vehicles generated the same amount as in the prior year.

“While many organizations stopped the bleeding, giving simply didn’t rebound like we thought it might, especially given the economic growth we saw in the last quarter of the year,” said Paulette Maehara, president and CEO of AFP.

And here’s an observation from the full report that supports a contention Roger and I often make:

“Most organizations held their investment in fundraising steady in 2010. However, those that increased expenditures, staffing, or volunteer engagement were more likely to see increases in funds raised. There is also a relationship between failing to invest in fundraising and failing to meet goals. That is, investment doesn’t guarantee increases, but decreased investment is associated with not meeting goals.”

Simply put, it takes money to raise money.

This study ‘slices and dices’ fundraising patterns every which way — size of organization, type of organization, giving mode, year-over-year trends, and more. Well worth a read.

Tom

* NRC is a coalition of six fundraising and philanthropic organizations: Association of Fundraising Professionals; Blackbaud, Inc.; The Center on Philanthropy at Indiana University; The Foundation Center; GuideStar USA, Inc.; and The National Center for Charitable Statistics at the Urban Institute.