Only 161 Days To Go

June 23, 2015      Roger Craver

Mark you planning calendar. Or not.

December 1st 2015 marks the fourth annual #GivingTuesday.

#GivingTuesday is that artificially inseminated day of philanthropy aimed at capturing some of the torrent of consumer spending that marks the holiday shopping season in the days following American Thanksgiving.

Here at The Agitator the event seems to stir up Tom’s and some of our readers’ more curmudgeonly or at least skeptical instincts. See this initial post marking #GivingTuesday’s inaugural year in 2012.

By the time the event reached its third season in 2014 at least some of our readers, but not Tom, had grown more moderate in their take on #GivingTuesday. Their reactions — pro and con — are reflected in Why Should I Care?, our last post on the subject.

To keep the discussion on #GivingTuesday going and growing Blackbaud last week released – on Wednesday, not Tuesday – their report “#GivingTuesday Trends: A Closer Look at the Online Fundraising Impact in the United States.” You can download it free right here.

[Actually, I had to sneak this post in while Tom wasn’t looking!]

Here are the key takeaways from the Report:

  • The most recent Giving Tuesday, which took place on December 2, 2014, generated $46 million in online contributions according to estimates compiled by Indiana University’s Lilly Family School of Philanthropy and five gift-processing platforms — Blackbaud, DonorPerfect, GlobalGiving, Network for Good, and Razoo.
  • This is more than double the amount raised in 2012’s inaugural event. And in 2014 28% more organizations received online donations on #GivingTuesday than did so in 2012.
  • Over the past three events, according to the Blackbaud study, 4,396 nonprofits took in collectively $55.6 million in Giving Tuesday donations. To be included, nonprofits had to have received at least one Giving Tuesday gift. The study does not include donations made on other online gift-processing platforms or offline giving.
  • 17% of donations were made through a mobile device. And, as Blackbaud notes, this occurred despite the fact “we know that most donation forms aren’t mobile friendly”.
  • The average online gift exceeds $100 for most organizations.
  • Faith-based organizations now receive the largest percentage of #GivingTuesday online donations; they were followed by higher education with 17% and health care and medical research, which each took 13%.

As Steve MacLaughlin, Blackbaud’s Analytics Chief and the Report’s presenter, noted: “Both higher education and health care have been laggards in online giving for the past 15 years. This is rooted in a fundraising culture traditionally focused on high-touch practices and major-gift fundraising.”

I also asked Steve about some of the other findings in the Blackbaud report. For example, what does he make of the trend showing that large nonprofits (those who raise more than $10 million annually) got less of a share in 2014 than in 2012 (74% in 2014, down from 80% in 2012), while medium-sized and small organizations have been cutting into that share of wallet (up from 13% in 2012 to 21% in 2014).

Says Steve:

“First, talk to any large nonprofit and they’ll take 5% growth on anything, especially when you’re talking about millions of dollars in a single day.

“Second, that 5% growth in 2014 is on top of 60% year-over-year growth from 2013. In this case, the glass was overflowing and then it was just overflowing slightly less.

“Third, under normal conditions, if large orgs have a big drop in overall giving, then it tanks the entire sector. But that didn’t happen on #GivingTuesday. Growth actually went up because medium and smaller nonprofits kept on driving a lot of giving. If some large nonprofits choose not to focus on #GivingTuesday, then others will and they’ll benefit.”

Here’s Steve’s optimistic take on the future of #GivingTuesday:

“All of these trends point to one really important thing: We are at the beginning of #GivingTuesday. No nonprofit has cornered the market on it. If large nonprofits choose not to focus on it that means smaller organizations will likely benefit. If different sectors of the nonprofit world focus on #GivingTuesday more than others, then they’re likely to be the winners in the long run.”

In light of the data Steve thinks we all should be asking the following questions. Knowing what you know today about the growth of online giving:

  • Don’t you wish that you’d focused on #GivingTuesday sooner?
  • Made it a bigger part of your overall fundraising program?
  • Maybe invested in it more when other nonprofits were still sitting on the fence?

So really, where do you now stand on #GivingTuesday?

Steve says “It’s like 2000 all over again, but donors are already on board and don’t need to be convinced. Now’s your second chance to get it right.”

Are you seizing this second chance?

Roger

P.S. Shhh! Don’t tell Tom I posted this.

 

 

 

4 responses to “Only 161 Days To Go”

  1. Janice says:

    Giving Tuesday:
    1) treats donors like ATM machines, and
    2) is about “1 and done” donors.

    Connect with your donors every day of the week, 365 days a year.

  2. Tom Ahern says:

    Don’t tell Tom, but I’m beginning to warm up to Giving Tuesday, now that we have some trend percentages to consider (thank you, Blackbaud). It can be fun. It’s mobile-friendly (ever more important, as you’ve pointed out). And I suspect it’s not “1 and done” for a lot of people … because they’re not that kind of donor: they give regularly to many things. What I especially like is a national day of giving smack dab in the midst of the consumer frenzy. It can offer people brief but welcome emotional relief from “buying for me and mine.” Giving always feels good (dopamine). And it’s a habit. If Giving Tuesday gets a few more people in the habit, well, OK then.

  3. Robert Tigner says:

    Not being a fundraiser, this question comes to mind: is there any way to know (or make an educated guess) what piece (if any) of the Giving Tuesday total comes from displaced regular end-of-year giving?

  4. While the criticisms of #GivingTuesday have well-meaning origins and force good questions about how we best stimulate philanthropy, I would posit that those that have disdain for the movement should further consider what is the alternative — not to a a day of national giving but rather, the very functional results #GivingTuesday (albeit indirectly) creates for emerging, small-, and mid-sized nonprofits.

    Last year, we worked with more than 100 nonprofits in a pro bono capacity to develop and animate a #GT strategy and here’s what we saw happen within the nonprofits we helped:

    1) They created an online giving page – they never had one before;

    2) They created their first Facebook, Twitter, and Mailchimp accounts — they never had them prior;

    3) They had a kickoff event for all of calendar year-end giving that was reinforced by local and national media;

    4) They started planning for CYE giving in November, given the preceding – small nonprofits will small staffs stumble through a direct mail appeal that lands in mailboxes in late December or after the New year;

    5) They had to create a message that moved the appeal conversation from the trite “we need…” to “we do..and help…”

    6) They saw modest but instantaneous results from their digital efforts – and now wanted to figure out how to sustain it.

    That said, we can either raise our noses at the movement because its premise and construct of retail philanthropy is inconsistent with our long-held beliefs, or we can choose to leverage our experience and insight to make it better.

    #GivingTuesday is not going away. Instead, the sector would be better served if we applied time, creativity, and assistance to assisting, if not perfecting, the movement.

    Know what I mean?