Mid-Sized NFPs Make the Most of Online Giving - Report

New research in the US reveals that overall giving in 2012 was up by only 2% while online giving grew by 11%.

The Charitable Giving Report, by global software technology giant, Blackbaud looks at how Not for Profit fundraising performed in 2012. The Report draws from The Blackbaud Index, which tracks $8 billion in US-based charitable giving on a monthly basis.

The report found that medium-sized Not for Profits led the way with a year-over-year increase of 14.3% in their online fundraising. Small NFPs grew their online fundraising 11.8% compared to 2011. Large organisations grew their online fundraising by 7.2% in 2012 compared to 2011.

Education organisations grew their online fundraising the most in 2012 with an increase of 17.9%. These Not for Profits continued to have the largest growth rate for the second consecutive year. NFPs in the public and society benefit sector grew 17.1% and human services grew 15.7%.

The report said these organisations continued to demonstrate the need for support to donors during challenging economic times. Several of these organisations also saw online giving increase in relation to Superstorm Sandy relief efforts.

The findings in the report are based on giving data from 3,144 Not for Profit organisations and more than $7.9 billion in fundraising revenue. The online fundraising findings are based on data from 2,581 NFP organizations and more than $512 million in online fundraising revenue.

“2012 continued to show signs of a slow recovery for overall fundraising,” Steve MacLaughlin, the co-author of the Charitable Giving Report said.

“Online fundraising’s return to significant growth rates is an encouraging sign, although online giving still makes up less than 10 percent of overall giving.

“Looking ahead, overall giving is not likely to increase significantly until there is sustained growth in new donors, nonprofits rebuild their multi-year donor base, and overall donor retention improves.”

Key findings from the Charitable Giving Report include:

• Overall giving continued its slow recovery and grew approximately 2% in 2012
• Online giving grew by about 11% in 2012 compared to 2011
• Online fundraising accounted for 7% of all giving in 2012, an increase from 2011
• Small Not for Profits had the greatest increase in overall fundraising in 2012, while medium-sized organisations led online
• Giving throughout 2012 hovered on flat and Superstorm Sandy relief efforts helped boost year-end

The report found that general Not for Profit fundraising performance also differed greatly based on the size and sector of the organisation.

Small NFPs, with annual total fundraising less than $1 million, grew their fundraising 7.3% compared to 2011.

Medium-sized organisations, with annual total fundraising between $1 million and $10 million, had an increase of 2.7% in 2012. Fundraising by large organisations, with annual total fundraising more than $10 million, was up by 0.3%.

Giving to faith-based organisations grew by 6.1% and education institutions also had a positive year with 1.9% growth in fundraising compared to 2011. These two sectors combine for 45% of charitable giving in the US. Arts and culture, as well as environment and animal welfare organisations were the only other sectors to experience fundraising growth in 2012.

The report says international affairs, healthcare, and human services organisations struggled throughout 2012 to achieve fundraising growth. These three sectors all had negative growth rates in 2012 compared to 2011. Public and society organisations had a slight decrease in overall fundraising in 2012.

View more charitable giving trends, and take a closer look at strategies for success by downloading the report at www.blackbaud.com/charitablegiving.