Fundraising benchmarks in today’s economy · INVESTMENT INTO FUNDRAISING –BEHIND THE #S...

Fundraising benchmarks in

06/22/2011 1

Fundraising benchmarks in

today’s economy

WELCOME!

06/22/2011 2

WELCOME!

• Blackbaud Index of Charitable Giving- Recent results and trends

- Comparison by size of organization, organization type

• Nonprofit Research Collaborative Survey

DISCUSSION TOPICS

06/22/2011 3

• Nonprofit Research Collaborative Survey- Public Gardens vs. other Sectors

- How to succeed in today’s environment

• Leveraging technology to help you succeed

What is it?

• % change in three month revenue as compared with the same period in the prior year.

• Represents 1,430 organizations with $2.2 billion in 12-month combined revenue

BLACKBAUD INDEX OF CHARITABLE GIVING

06/22/2011 4

-6.0%-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%

201004

201005

201006

201007

201008

201009

201010

201011

201012

201101

201102

201103

201104

12 month trend – All industries

BLACKBAUD INDEX OF CHARITABLE GIVING – BY ORG SIZE

Small Orgs Medium Orgs Large Orgs

12 month history by Org Size

06/22/2011 5

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

201004

201005

201006

201007

201008

201009

201010

201011

201012

201101

201102

201103

201104

Small

Medium

Large

All Industries

12 month history by Org Size

BLACKBAUD INDEX OF CHARITABLE GIVING – BY ORG TYPE

Environmental and Animal Welfare

Arts and Cultural Human Services

06/22/2011 6

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

201004

201005

201006

201007

201008

201009

201010

201011

201012

201101

201102

201103

201104

Env. & Animals

Arts & Culture

All Industries

12 month history by Industry

BLACKBAUD INDEX OF ONLINE GIVING

Small Orgs Medium OrgsOverall

06/22/2011 7

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

201004

201005

201006

201007

201008

201009

201010

201011

201012

201101

201102

201103

201104

Env. & Animals

Arts & Culture

All Industries*


• Quarterly surveys on state of fundraising

• 1,845 charitable organizations participating in February, 2011 survey

NONPROFIT RESEARCH COLLABORATIVE

06/22/2011 8

10 Year Trend in Fundraising growth

2010 WAS THE HIGHEST “ABOUT THE SAME”

FUNDRAISING PERFORMANCE IN 10 YEARS

6049 54

65 6369 65

46 43 43

60%

70%

80%

90%

100%

More than previous year

06/22/2011 9

3039

27 25 24 24 24

4046

33

10

11

20

10 137 11

1411

24

0%

10%

20%

30%

40%

50%

60%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

About the same

Less than previous year

Source: Nonprofit Research Collaborative

2010 vs. 2009 Fundraising Performance

HIGHER “ABOUT THE SAME” FUNDRAISING

PERFORMANCE FOR PUBLIC GARDENS

33%42% 44% 43%

70%

80%

90%

100%

More than previous year

06/22/2011 10

11%

28% 33% 33%

56%29% 22% 24%

0%

10%

20%

30%

40%

50%

60%

Public Gardens*

Environment and Animal

Museums All Industries

year

About the same

Less than previous year

* Public Gardens had low response rates. Data is based on only 10 responses

ALL SECTORS ANTICIPATING 2011 GROWTH

40% 40%

60%

20%29%

21%

60%

70%

80%

90%

100%

% increased >15%

% Increased <15%

2011 Anticipated Fundraising Performance

06/22/2011 11

0% 4% 6% 4%0%

9% 9% 8%

30%

24%17% 24%

10%

40%

40%

40%

0%

10%

20%

30%

40%

50%

60%

Public Gardens Environment

and Animal

Museums Overall

Same

% Declined <15%

% Declined >15%


All Sectors

“The Board’s commitment to increasing their fundraising efforts and adding administrative and fundraising staff…”

WHAT SINGLE ISSUE MOST POSITIVELY AFFECTED

YOUR FUNDRAISING?

Public Gardens

“We involved the board.”

“A full time Development Director

06/22/2011 12

fundraising staff…”

“We were able to describe the impact in specific and accountable ways.”

Fundraising success linked to effective communications – e.g. recognition of needs due to recession

“A full time Development Directorwas hired…”

“Completion of a long range plan that clearly articulated our needs…”

“We worked to get our story and vision clear so we could articulate the need.”


INVESTMENT INTO FUNDRAISING EFFORTS

63% 59%

13%

9%

33%

13%38%

13% 11% 9%

50%

60%

70%

80%

90%

100%

Change in Fundraising Staffing 2010 vs. 2009

50%

27%21%

24%

13% 13%21%

12%

50%

60%

70%

80%

90%

100%

Change in Volunteers assisting with

Fundraising 2010 vs. 2009

06/22/2011 13

0%10%

4%11%

0%

5%7%

8%

50%

63%

44%

0%

10%

20%

30%

40%

Public

Gardens

Environment

and Animal

Museums Overall

% Declined >15% % Declined <15%

Same % Increased <15%

% increased >15%

0%4%

0% 4%0%

4% 10%7%

38%

52% 48%53%

0%

10%

20%

30%

40%

Public

Gardens

Environment

and Animal

Museums Overall


Emerging trends

• Hiring Development staff and leadership from outside of Public Gardens

- Symphony, Political Campaign, Public Broadcasting, Ballet

- Add specific skill sets to the organization

- Implementing for organized individual giving programs

INVESTMENT INTO FUNDRAISING – BEHIND THE #S

06/22/2011 14

- Implementing for organized individual giving programs

• Involving the Board

- “We’re doing a lot of training with our board”

- “We’re redefining the role of the board…introductions and fundraising is part of their job.”

- “95% of your fundraising problems are governance problems.”

- “Each board member gave us 10 people to invite to the Garden for lunch…”

- “We’re convincing the board that something is actually possible”

INDIVIDUAL FUNDRAISING

63%

36% 44%

13%

23%

22%

22%

0%

14%22%

12%

50%

60%

70%

80%

90%

100%

Change in Corporate Giving 2010

vs. 2009

78%

25%

11%

22%21%

21%

0%

19% 21% 18%

50%

60%

70%

80%

90%

100%

Change in Foundation Giving 2010

vs. 2009

06/22/2011 15

13%7% 4% 6%

13% 20%

7%

16%

36%

44%

44%

0%

10%

20%

30%

40%

Public

Gardens

Environment

and Animal

Museums Overall



% increased >15%

0%6%

11% 9%11%

15%

21%15%

38%25%

35%

0%

10%

20%

30%

40%

Public Gardens Environment

and Animal

Museums Overall


Emerging trends

• Increase in naming opportunities

- Time-limited naming opportunities

- “In honor of” naming campaigns

- Expansion projects

INDIVIDUAL FUNDRAISING – BEHIND THE #S

06/22/2011 16

• Creation of premium membership levels or high dollar annual giving levels

- $10k membership levels

- Chairman’s Circle, Catalyst Circle

- Involving the board for introductions and solicitations

- “The more time and effort you spend on individual giving, the better you are. Focus time and resources on cultivation and targeted communications.”

The good news

- “Fruits of past efforts”

- “Surprise bequests” from long-time volunteers, members

The bad news

- Surprise “lost” bequests

BEQUESTS/PLANNED GIFTS

57%

52%

17%19%

21%

18%

17% 19%

0%

13%

40%

50%

60%

70%

80%

90%

100%

Change in Bequests 2010 vs. 2009

06/22/2011 17

- National avg age of bequest is 84

- National Avg Age of “Time of Last Will” is 79

- 4-5 will changes before “Time of Last Will”

- Donors have taken a step back and prioritized who they support

0% 4%

14%9%

0%

4%

7%

8%

67% 55%

0%

10%

20%

30%

40%

Public

Gardens

Environment

and Animal

Museums Overall



% increased >15%

Source: Nonprofit Research Collaborative, The Sharpe Group

Emerging trends

- Willingness to cancel traditional events

- Shift to “invitation only events”

SPECIAL EVENTS

0% 32%25%

29%

33%

18%25%

21%

60%

70%

80%

90%

100%

% increased

>15%

% Increased

<15%

Change in Special Events Fundraising 2010 vs. 2009

06/22/2011 18

- “We’re having to discount tickets to our gala to get enough attendees”

17%

7%0%

9%

17%

14%

14%

13%

33%

29%36%

27%

0%

10%

20%

30%

40%

50%

Public

Gardens

Environment

and Animal

Museums Overall

Same

% Declined

<15%

% Declined

>15%


FUNDRAISING FROM DIRECT MARKETING – ONLINE

AND MAIL

25%

25% 15%

31%

38%

16% 19% 20%

50%

60%

70%

80%

90%

100%

Change in Direct Marketing Fundraising 2010 vs. 2009

Emerging trends

- Experimentation with directed giving

- Getting the story right

- “Describe your success and

06/22/2011 19

0%7%

0%9%13%

14%

12%0%

25%

38% 54%

40%

25%

0%

10%

20%

30%

40%

50%

Public

Gardens

Environment

and Animal

Museums Overall

% Declined >15% % Declined <15% Same

% Increased <15% % increased >15%

your real needs”

- “Highlighting our education programs as a reason to give”

- Know your audience

- Getting the data under control

- Knowing who interacts with your organization in multiple ways


• Test different variables, e.g.

- Matching gift

- Visited garden >10 times

- Attended >=5 programs (e.g. lectures)

EXAMPLE – USING RICHER DATASET TO “KNOW YOUR

AUDIENCE”

06/22/2011 20

- Attended >=5 programs (e.g. lectures)

• Create single passion variable

• Do you know WHY they visit you?

- Behavior vs. demographics

• Identify 100 donors randomly, each year, and thoroughly review their data

EXAMPLE – MONITOR YOUR DATA QUALITY

REGULARLY

06/22/2011 21

- Incorrect data (typos, moved, married, dead)- Duplicate records- Missing information- Correct treatment (clubs, tracks, expire dates)

THE COST OF A TYPO!

CorrectLast Name

MisspelledLast Name % Difference

Average Gift $52.43 $46.16 -12.0%

Renewal Rate 49.4% 41.9% -15.2%

Organization A

06/22/2011 22

Average Gift $39.13 $38.55 -1.5%

Renewal Rate 51.1% 46.6% -8.8%

Renewal Rate 49.4% 41.9% -15.2%

• Blackbaud Index of Charitable Giving details

- http://www.blackbaud.com/bb/index/bb-giving-index.aspx

• Link to Nonprofit Research Collaborative report

- http://phx.corporate-ir.net/phoenix.zhtml?c=176673&p=irol-newsArticle_Print&ID=1541526&highlight=

REFERENCE MATERIALS

06/22/2011 23

ADD ALTRU SLIDES HERE

06/22/2011 24

APPENDIX

06/22/2011 25

2009 Charitable Giving Total = $303.75 Billion

Show updated Giving

06/22/2011 26

Giving USA results for 2010 vs. 2009

WHICH FUNDRAISING VEHICLES ARE WORKING –

OVERALL?

38

22

27

26 21

29

24

20

12

2317 18

2115

60%

70%

80%

90%

100%

% increased

>15%

% Increased

<15%

Same

06/22/2011 27

36 8 8 10 9

45

16 1016

1513

8

34

44

33

3335

27 49

0%

10%

20%

30%

40%

50%

Online Corporate

Gifts

Major Gifts Direct Mail

or email

Foundation

Grants

Special

Events

Board

Giving

% Declined

<15%

% Declined

>15%

“Shrinking tax revenues means lower government funding to nonprofits”

“Endowments down 25.4%...”

“A slow year for big gifts spurs creativity…”

TODAY’S HEADLINES

06/22/2011 28

“A slow year for big gifts spurs creativity…”

“Garden prepares to lose Clemson funding”

“Consumer demand for good deals increasing…”

“Fewer corporations supporting nonprofits…”

“Museums and gardens to cut staff, programs…”

BLACKBAUD INDEX OF CHARITABLE GIVING – BY ORG TYPE

Environmental and Animal Welfare

Arts and Cultural Human Services

06/22/2011 29

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

201004

201005

201006

201007

201008

201009

201010

201011

201012

201101

201102

201103

201104

Human Svs.

Env. & Animals

Arts & Culture

All Industries


Change in giving from Individuals vs. corporations, foundations, other nonprofits

What’s working

- Trend in naming, directed giving

- Getting the story right

- Involving the board

Earned income is down (?)

WHERE ARE THE $S COMING FROM

06/22/2011 30

Earned income is down (?)

Zero-sum fundraising

YOUR DONOR’S VIEW OF YOUR ORGANIZATION

• “I just gave to them”

• “They spend all of my money sending me mail”

• “They can’t even spell my name right”

06/22/2011 31

• “They can’t even spell my name right”

• Passionate donors may tolerate your missteps but not all donors will

RECOMMENDATION #5 – CREATE HURDLES FOR

DONORS TO CLEAR TO QUALIFY FOR FURTHER

INVESTMENTS

• Who returned the survey?

06/22/2011 32

• Who returned the survey?

• Who came to the event?

• Who called the call center, visited the web site, or matched their gift?

Fundraising benchmarks in today’s economy · INVESTMENT INTO FUNDRAISING –BEHIND THE #S...

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