2016 Giving Trends: The Warning Signs
The Blackbaud Insitute for Philanthropic Impact has released its Fifth Annual Charitable Giving Report that you can download here.
It’s an attractive, interesting read and a chance to do some benchmarking comparison with your own results.
It also contains the evidence that should cause us all to continue our professional soul searching and quest to do much better.
Top line trends …
…in the US, among the 6,845 nonprofits and $23 billion analyzed, overall charitable giving grew approximately 1.0% in 2016. Online posted a 7.9% gain over 2015.
…in Canada, among the 494 nonprofits analyzed, overall charitable giving was down 1.8%. Online giving increased 10% compared to 2015.
…in the UK, among the 342 organizations measured, overall charitable giving was up 2.8%. Online giving increased 2.2% among U.K. nonprofits in 2016
Dive in and discover among other things …
- Overall giving and online fundraising trends by sector and organization size. (Page 8)
- The impact mobile giving is making on online fundraising. (Spoiler alert: 17% of all 2016 online donations were made on a mobile device. Up from 9% in 2014; Page 12)
- How #Giving Tuesday is dramatically shaping year-end fundraising (up 22% over 2015; Page 13)
- Trends in “significant” ($1000+) gifts. (Page 11).
Continue to count on ‘old’ donors …
If you’re in need of some boardroom fodder for those pesky members who think you should abandon everything in favor of attracting “young” donors, you might want to show them that at least 72% of U.S. giving comes from the World War II and Baby Boom Generation. (Page 14).
And treat yourself to the bonus section featuring key stats on donation amounts, donor characteristics, retention rates and more for the U.S. nonprofit sector. (Page 14)
AND … some words from the wise to the wise.
Of course, little or no growth hardly makes for a celebration. In fact the trends summarized in the Fifth Annual Charitable Giving Report can be or should be viewed as alarming.
Here’s what Jason Lee, Interim President and CEO of the Association of Fundraising Professionals has to say:
…over the course of the past five years, we are seeing more giving, but fewer donors. That speaks to the work that charities must do to improve their retention and cultivation of donors by creating a culture of philanthropy and telling their stories of impact and change. It also requires an understanding that the newer generations of donors view themselves as change agents who do not simply want to passively give charitable contributions; it requires building new types of relationships with donors to help them enact change in the context of charitable mission.”
And, Steve MacLaughlin, VP for Data and Analytics at Blackbaud warns in a Huffington Post piece that appeared the day the Report was released:
“The new normal in fundraising may become low single-digital growth rates unless a broader spectrum of nonprofit organizations embrace the importance of donor engagement, retention, and stewardship. The larger growth rates following the end of the recession have slowed and the warning signs are real.”
What trends do you find most disturbing? What steps are you taking to avoid slow or no growth?
Roger
2 responses to “2016 Giving Trends: The Warning Signs”
Behavioral Science Q & A
Integrating an individual giving appeal with other communications from a charity can have both positive and negative effects, and the outcome largely depends on how it’s executed. Advantages of Integration Brand Consistency: Maintaining a consistent appearance and messaging across all communications can reinforce the org’s brand identity and strengthen brand recognition and trust among your […]
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I’m not aware of any in-market tests specifically comparing recurring vs. gift frequency language. I suspect the answer might not be the same with all gift frequencies, nor with all people. It sounds like a great opportunity for you to test and find out what works for your audience. Based on the literature, here’s a couple […]
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Based on what we know from existing data, those renewal notices can actually be pretty effective in getting people to donate. They tap into our psychology – creating a sense of urgency, reminding us of past support, and using personalization to make the message hit home. They’re playing on our natural tendencies to feel obligated […]
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Interesting question. I had a quick look at the testing done on this topic. On the positive side, in all cases, over half of donors decide to cover the fee. In some cases, it goes as high as 65%. Not a negligible percentage at all. Here’s another test from iRaiser showing consistent results (see point […]
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There’s just one thing to consider when designing a supporter journey: the supporter. More specifically, you need to take into account: Who the supporter is i.e. their identity, which is the reason they support this cause, and their personality, which describes the way they “see” and process the world. These will determine the kind of […]
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I’m not an expert in this but a quick search surfaced this article on the effect of tax reforms on 2019’s charitable giving. The researchers didn’t find a reduction. Actually, they observed an “increase in charitable contributions in 2019, even with the lower tax rates and the dramatically smaller number of taxpayers who itemize their […]
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The answer is really simple. When you move from transactional to relational, it becomes transformational. The money is there as long as you change your approach and follow the advice of Roger and Tom.
Amen. Donors must feel like members of your family. If they don’t, they’ll move on to a family who will embrace them. Maybe they’ll even stop giving and just volunteer, because the volunteer coordinator gives them hugs and treats them like a hero.
I know lots of nonprofits are trying. But ironically, in the move to adapt to the digital revolution, too many are spending their limited resources on transactional social media. There is a way to make online social interactions meaningful, but it takes an intentional plan. Not just slapping up a Facebook page.
And… all the offline stewardship moves remain important as well. As people begin to change how they communicate so must we change how we communicate with them. This holds true for both appeals and gratitude. Communication, truly, is the essence of building lasting relationships.