The fundraising hand wringers and bed wetters had a pandemic field day when the 1^st Quarter 2020 Fundraising Effectiveness Report (FEP) was released in in June announcing a 6% decline or $25 billion in lost revenue for nonprofits mainly attributable to a notable drop in individual giving in March.

BUT….at the time, some optimism poked its head above that March snowbank of pandemic dread.  As Michael Nilsen of the Association of Fundraising Professionals (AFP), home of the FEP, noted, “I would be surprised if the 11 percent drop in March was anything that’s going to hold.”

Michael was right.

The FEP for the Second Quarter of 2020  (April, May, June) is now out reflecting giving to 2, 496 nonprofits with the analysis weighted to the distribution of organizations among sectors.  Bottom line:  Charitable giving increased almost 7.5% over the first half of 2020, compared to the first half of 2019.

Top Line Results

• The number of donors and donations are the highest in five years– +7.2% increase

• Dollars were up +7.5%. A somewhat surprising (at least to me) was that New Donors were up 12.6% given that so many organizations reported cutting way back on acquisition. (Once sectors are examined it may turn out the growth was in foodbanks, homeless and medical sectors which might explain this.)
• Retention was up +1.8% to an overall rate of 27.1%–although (warning) “new donor retention” was down 6.0% to a lousy 11.5%.

[ All FEP reports going back years reports are available for free at www.afpfep.org ]

Results by Size of Donation 

From Smaller <$250 to Mid-level ($250-$999) to Major ($1,000+) every giving level saw an increase.

• General or smaller gift donors (<$250) showed the greatest increase in number of gifts –+19.2% (The FEP notes this group was the major driver in the overall increase this Quarter.)
• Mid-Level Donors ($250-$999) up 8.1%
• Major Donors ($1000+) up 6.4%

Researchers’ Opinion on What’s Ahead

So, with a half year to go in terms of the FEP reports and with today’s headlines proclaiming an autumnal/winter spike in the pandemic, what are some of the folks behind FEP forecasting about the critical final quarters of the year?

Woodrow Rosenbaum, Chief Data Officer at GivingTuesday, a co-producer of the FEP: “Organizations have had to pivot quickly, with many fundraising campaign plans being altered and events going online. Despite these challenges, giving has increased relative to last year—so far—which is encouraging as we look ahead to the rest of the year.”

On a slightly more somber note, Elizabeth Boris, Chair of the Growth In Giving steering committee warns, “Typically, external events don’t affect overall giving significantly, but 2020 could prove to be the exception.  The continued impact of the pandemic on the economy could prevent the giving growth from continuing, especially if Congress doesn’t approve another COVID-19 relief bill and people become more worried about their financial situation.”

And, in a more Goldilocks take, and with some very important advice on retention, Lori Hunter Overmyer, Member of the Growth In Giving steering committee and chair of the FEP Research Council: “We are likely to see a continued increase in need for the important services the social sector provides to communities, and we’re watching the impact of a very slow economy—which could potentially depress giving over the long-term. One of the most important things charities can do now is to build strong relationships with their supporters and encourage existing donors to continue to give when they can.”

Which brings me to the importance of paying extra special attention –and investment—in holding on to both new and existing donors in this pandemic.

A BONUS FOR AGITATOR READERS AND YOU

Take a moment right now—while all these figures and the pandemic are on your mind—to register for a very special international event called Relationships are Everything.  PLUS…as an Agitator reader you get a 30% discount from the price. [Discount code RAES30]

Mark your calendar for October 28^th.  Times are convenient for all Agitator readers.  And if you can’t make it on that day the presentations will be recorded and available to registrants.

Organized by Julie Berthoud-Jury an American fundraiser living in Switzerland, in partnership with Fundraising Everywhere and with  support from Agents of Good and Bloomerang this event contains an impressive array of contributions from some of our favorites.

Among them Tycely Williams, Ken Burnett, Simone Joyaux, Dr. Jen Shang, Michelle Muri & Vu Le, John Lepp & Jen Love, Naimah Bilal, Lauren Jones, Michelle Berriman, Beth Ann Locke, Ligia Peña, Jay Love, Jeff Schreifels & Richard Perry, Bill Littlejohn, Fungai Mettler, Dan Shephard, Lea Moliterni, Amy Eisenstein, Ingrid Gerstbach, Thomas Avila, Jennifer Loeb, Adrienne Taylor, Nancy Buffington, Laura Tully, Nneka Allen, Birgit Smith Burton, Elizabeth Ralston, and Dominique Calixte.

Take a look at the subjects covered by this diverse and knowledgeable cast and then sign up here and use Code RAES30 for your Agitator discount.   Whether you’re focused on retention, second gifts, major gifts, design or the whole range of donor relationships you won’t want to miss this event.

BECAUSE…if there’s anything we’ve seen from the latest FEP report is that NOW is the moment every fundraiser needs to be paying attention to relationships.

Roger