For years, nonprofit organizations have invested significant amounts of time and money to build online fundraising efforts that have steadily evolved to embrace more and more sophisticated technologies and methods. But, are those efforts really worthwhile?
The Blackbaud Institute’s recently released Charitable Giving Report: How Fundraising Performed in 2017 can help us answer that question.
The news about overall philanthropy in 2017 is good. Blackbaud reports:
A convergence of economic, political, technological, and philanthropic trends helped boost giving in 2017. The 4.1% increase in giving during 2017 was a substantial jump compared to relatively flat growth in 2016. A strong stock market, spikes in giving in response to political issues or disasters, and the continued shift to digital giving all influenced giving in 2017. This growth was also fueled by a 5.1% increase in giving during the final three months of 2017. The potential implications of new U.S. tax laws may have contributed to this late surge in charitable giving.”
The news about online giving is also good. Blackbaud has found:
- 7.6% of overall fundraising revenue, excluding grants, was raised online representing a new record high.
- Online giving grew 12.1% in 2017 compared to 2016.
- 21% of online transactions were made using a mobile device in 2017.
- The average online donation is $132.
- 20.1% of online giving happened in December.
Online is an important source of donations for nonprofit organizations of every size as the following chart illustrates:
While online contributions represent a significant source of charitable gifts, the fact remains that other sources generate much more money for charities. In other words, traditional direct mail, telephone, and face-to-face appeals are still massively effective and important.
Nonprofit organizations should make it easy for donors to contribute. In part, that means providing donors with a variety of ways to give so that they can choose the avenue that’s best for them. Because charities can raise a significant amount of money online, they should have a well-designed online giving strategy.
While providing donors with the ability to donate online is increasingly important, fundraising professionals need to keep their perspective when it comes to online giving. The amount of time and budget resources invested into online fundraising should be proportional to the potential return. For most organizations, that will mean spending far more time and funding on direct mail, telephone, and face-to-face appeals.
The bottom line is that engaging in online fundraising is worthwhile as long as you keep things in perspective.
You can download the free report from the Blackbaud Institute by clicking here.
That’s what Michael Rosen says… What do you say?